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Bill Summary · SB 112

Summary of SB 112 (2026 Session, Kentucky)

Purpose and intent

  • Establishes a state-level framework governing short-term rentals (STRs) and preempts conflicting local regulations.
  • Creates a uniform permitting system for STRs while restricting local governments from imposing certain restrictions that would severely limit or prohibit STR activity.

Key definitions

  • Local government: includes various forms of Kentucky municipalities or planning entities engaged in planning and zoning under KRS Chapter 100.
  • Owner: person with title interest or present possessory interest in property used as an STR; includes tenants with landlord permission.
  • Short-term rental: rental of a dwelling unit or space for terms of less than 30 consecutive days.

What local governments cannot do (preemption)

SB 112 prohibits local governments from adopting or enforcing ordinances that:
- Require conditional use permits for STRs.
- Impose density-based restrictions (e.g., spacing between STRs or limits on share of housing units used as STRs).
- Prohibit STRs in residential zones.
- Regulate the timing, duration, frequency, or seasonality of STR use.
- Limit the number of properties an owner may operate as STRs.
- Impose residency requirements on operators (e.g., operator present on site, STR as primary residence, or presence requirement when using an accessory dwelling unit).
- Restrict or impose requirements on STR platforms or listings.
- Prohibit tenants from listing a leased property as an STR if permission from the landlord is granted.

Permitting framework (allowed local regulation)

  • Local governments may require a permit for each STR property, but with tight limits:
    • One permit per property, covering all units on the property (single family, two-family, multifamily, condominium, cooperative, or timeshare).
    • Permit application must be filed by the owner (or an officer/agent if a legal entity).
    • Required information in the permit: owner contact information (individual or corporate), and if a property manager is used; plus a description of how each STR is marketed, including listed occupancy limits and the type of dwelling unit.
    • Permit must be issued within 30 days of a complete, compliant application.
    • If owner information changes, updated information must be provided within 30 business days.
    • Permits are valid for 1 year.
    • Permit fees may not exceed $150 (for initial permits or after revocation). Renewals are not charged a fee.
    • If a property owner receives three or more citations for ordinance violations in a calendar year, the local government may revoke the permit for up to one year, with notice and a hearing.
    • An outstanding fine must be paid before an application for a new permit after revocation can be approved.
    • If the owner sells all or part of the permitted property, the permit is not transferable; the new owner must apply for a new permit.

Administrative and enforcement details

  • Local governments may adopt penalties and revocation procedures consistent with other permit types.
  • If a court finds a local government violated SB 112, the court may award attorney’s fees and costs to the aggrieved party.
  • The permitting system is designated as the exclusive means by which local governments may issue permits related to STR use.
  • The bill does not prohibit regulation necessary for public health or safety applicable to all dwellings; it prohibits differential treatment of STRs versus other residential uses.

Interaction with existing rules

  • The statewide permitting framework supersedes conflicting local ordinances to the extent of preemption described.
  • Homeowners associations and similar associations retain their own property-use restrictions and governance, and SB 112 does not nullify those rules.

Who is affected

  • Owners of properties used or proposed to be used as short-term rentals.
  • Property managers acting on behalf of owners.
  • Local governments in Kentucky (cities, counties, and other applicable jurisdictions) implementing STR policies.
  • STR platforms may be indirectly affected due to prohibitions on platform restrictions, keeping listings within a uniform permitting regime.

Timelines and procedural notes

  • Permit applications must be processed within 30 days of receipt of a complete application.
  • Permits are valid for 1 year; renewal fees are prohibited.
  • Revocation provisions allow up to 1-year revocation following noticed hearing upon multiple violations within a year.
  • Information updates must be provided within 30 business days of changes.

Overall impact

  • SB 112 aims to create a uniform, year-long permitting regime for STRs while preventing a patchwork of local zoning limits that could effectively ban or severely restrict STR activity.
  • It prioritizes a balance between property rights of owners and regulatory oversight focused on safety, marketing disclosures, and accountability, with clear penalties for noncompliance.

Compiled from official sources — confirm details with the bill’s official record.

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