Overview: Short-Term Rental Allowance in Bardstown, KY

Short-term rentals ARE ALLOWED in Bardstown, Kentucky but are subject to comprehensive regulatory requirements, zoning restrictions, and permit processes. However, there is currently a temporary moratorium in place on new conditional use permits for short-term rentals in residential and agricultural zoning districts within city limits, implemented in March 2024. This moratorium is expected to last approximately three months while the Joint City-County Planning Commission reviews existing regulations.

How to Start a Short-Term Rental Business in Bardstown

Current Market Status

Due to the active moratorium, new short-term rental applications in residential and agricultural zones are temporarily suspended. However, you can prepare for when the moratorium is lifted by understanding the requirements and beginning preliminary steps.

Step-by-Step Process to Establish an STR Business:

1. Determine Property Zoning

   • Contact the Joint City-County Planning Commission to verify your property's zoning designation
   • Confirm whether your property falls within allowed zoning districts for STRs

2. Apply for Conditional Use Permit (CUP)

   • Required for all STRs in agricultural and residential zoning districts
   • Must be approved by the appropriate Board of Adjustment
   • Must demonstrate compliance with all zoning requirements
   • Note: Currently suspended due to moratorium

3. Obtain Zoning Compliance Permit

   • Required after CUP approval
   • Obtained from Joint City-County Planning Commission
   • Represents change of use authorization

4. Secure Business License

   • Required from appropriate municipal authority
   • Must be obtained for properties within city limits

5. Complete Building Code Compliance

   • Contact Nelson County Code Enforcement for requirements, permitting, and inspections
   • Must comply with applicable Kentucky Building Code requirements

6. Fire Code Compliance

   • Contact Fire Marshall for requirements, permitting, and inspections
   • Must comply with applicable fire code requirements

7. Register for Tax Collection

   • Set up transient room tax collection with tourism commission
   • Register for applicable state and local taxes

Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses:

Conditional Use Permit (CUP)

• Required for all STRs in agricultural and residential zoning districts
• Must be approved by appropriate Board of Adjustment
• Application must demonstrate compliance with all zoning requirements
• Subject to impact assessment on surrounding properties
• Must protect character of the area

Zoning Compliance Permit

• Required for change of use after CUP approval
• Obtained from Joint City-County Planning Commission
• Final authorization for STR operation

Business/Occupational License

• Required from City of Bardstown for properties within city limits
• Contact City of Bardstown at (502) 348-5947
• Must be obtained before operating

Building Code Compliance

• Building permits and inspections as required
• Must comply with Kentucky Building Code requirements
• Contact Nelson County Code Enforcement for specific requirements

Fire Code Compliance

• Fire safety permits and inspections required
• Must meet applicable fire code requirements
• Contact Bardstown Fire Department Fire Marshall

Tax Registration Requirements:

Transient Room Tax Registration

• 3% local transient room tax
• 1% state transient room tax
• 6% state sales tax
• Register with Bardstown-Nelson County Tourist Commission

Other Tax Considerations

• Owners are responsible for payment of all applicable taxes
• Additional local, state, and federal taxes may apply

Specific Regulations for Short-Term Rentals

Definitions:

Short-Term Rental: A dwelling unit, or portion thereof, rented for less than 30 consecutive days where no meals, food, or drink are provided by the property owner. Includes tourist and guest homes but excludes hotels, motels, extended stay lodging, bed & breakfasts, and boarding houses.

Bed & Breakfast: A dwelling unit, or portion thereof, rented for less than 30 consecutive days where only breakfast is served by the property owner.

STR Types and Requirements:

Type 1 - Owner-Occupied Principal Dwelling

• Must be owner-occupied within the principal dwelling unit
• Property must be owner's permanent and primary residence
• Owner must physically reside on property during all rental periods

Type 2 - Non-Owner-Occupied Accessory Unit

• Located within approved detached accessory dwelling unit
• Owner must reside in principal dwelling as primary residence
• Owner must physically reside on property during all rental periods

Operational Requirements:

Property Restrictions:

• Must be detached single-family residential dwelling units or approved accessory units
• Cannot be located in two-family, multi-family, condominium/townhouse units, or structures sharing common walls
• Cannot be single-wide manufactured homes or recreational vehicles
• Must maintain exterior appearance as single-family residential structure

Occupancy Limits:

• Maximum 30 consecutive days per stay
• Maximum occupancy: 2 times the number of bedrooms being rented
• Board of Adjustment may impose additional occupancy restrictions

Parking Requirements:

• All parking must be entirely on-site
• Must meet minimum off-street parking requirements per zoning ordinance

Responsible Party Requirements:

• Owner responsible for all zoning regulation compliance
• Must provide name, address, and phone number of responsible party
• Responsible party must reside within 60 miles of property
• Contact information must be posted inside and outside the rental

Kentucky State-Level Regulations:

• Must comply with Kentucky Building Code
• Subject to state transient room tax (1%)
• Subject to state sales tax (6%)
• Must comply with state health and safety regulations
• Food service requires permit from Kentucky Cabinet for Health and Family Services

Zoning Districts:

• STRs permitted in agricultural and residential zoning districts with CUP
• Subject to Board of Adjustment approval
• Must meet all general requirements regardless of type

Contact Information for Local Authorities

Primary Planning Authority:

Joint City-County Planning Commission of Nelson County

• Address: 989 Chambers Boulevard, Bardstown, KY
• Phone: (502) 348-1805
• Website: www.ncpz.com

Building Code Enforcement:

Nelson County Code Enforcement

• Address: One Court Square, 2nd Floor, Old Courthouse Building, Bardstown
• Phone: (502) 348-1862
• Website: nelsoncountyky.com/code-enforcement/

Fire Safety:

Fire Marshall, Bardstown Fire Department

• Address: 220 North Fifth Street, Bardstown
• Phone: (502) 349-6562
• Website: www.bardstownfire.com/contact-us/

Business Licenses:

City of Bardstown

• Address: 220 North Fifth Street, Bardstown
• Phone: (502) 348-5947
• Website: www.cityofbardstown.org

Tax Registration:

Bardstown-Nelson County Tourist & Convention Commission

• Address: One Court Square, 1st Floor, Old Courthouse Building, Bardstown
• Phone: (502) 348-4877
• Website: www.visitbardstown.com

Health Department (Food Service - if applicable):

Environmental Office, Nelson County Health Center

• Address: 325 South Third Street, Bardstown
• Phone: (502) 348-3698
• Website: lincolntrailhealthdepartment.com/nelson-county/

Property Records:

Nelson County Clerk's Office

• Address: Sutherland Annex Building, 113 East Stephen Foster Avenue, Bardstown
• Phone: (502) 348-1820
• Website: www.nelsoncountyclerk.com/Recording.asp

Important Considerations

Current Market Conditions:

• The moratorium reflects concerns about STRs' impact on residential neighborhoods and housing stock availability for permanent residents
• The regulations may be revised following the current review period
• Plan accordingly for potential regulatory modifications

Additional Legal Considerations:

• Review homeowner's insurance policies for STR coverage
• Check restrictive covenants in developments/subdivisions that may prohibit rental activity
• Consider legal consultation for liability protection and occupancy agreements
• Verify compliance with federal, state, and local tax obligations

Risk Factors:

• The regulatory environment is currently under review, and changes to existing requirements are possible
• Investors should monitor the Joint City-County Planning Commission's proceedings
• Be prepared for potential regulatory modifications when the moratorium is lifted

Source Links

• Planning Commission STR Information: ncpz.com/uplimg/cms//STRGeneral.pdf
• Zoning Compliance Checklist: ncpz.com/uplimg/cms//STRsBandBsAgandResidentialBardstown.pdf
• Moratorium News Coverage: www.thenewsenterprise.com/news/local/bardstown-hits-pause-on-short-term-rentals/article_1318c2bc-1533-5f63-9c90-44a13186d137.html

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Disclaimer: The Joint City-County Planning Commission of Nelson County has made every attempt to ensure that the information contained herein is complete, up-to-date, and accurate. However, this does not release the property owner and/or business operator from their obligation to verify the information and the obligation to comply with the regulations listed above and any other applicable rules, requirements, or regulations.

Note: This information is current as of December 16, 2024, but regulations are subject to change. Always verify current requirements with the appropriate authorities before proceeding with STR development.