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Tennessee: Short Term Rentals Subject to Sales Tax

  • Mar 3, 2015 | Gail Cole

 Nashville, Tennessee.

Residents of Nashville, Tennessee, who rent homes or rooms through Airbnb have been required to collect and remit the same taxes and fees as traditional hotels since November 2014.  Under legislation approved on February 26, 2015, they must now also obtain a permit to operate short term rental properties (STRP) in Davidson County, Tennessee.

Anyone caught operating a short term rental property without such a permit will be subject to a fifty dollar fine per day of operation without a permit. In addition, a property found to be operating without a permit will not be eligible for a STRP permit for a period of one year “from the date of such finding.” Short-term is defined as a period of 30 days or less.

Permit holders will be “responsible for collecting and remitting all applicable room, occupancy, and sales taxes required by state law or the Metropolitan Code.” According to the ordinance, applications for STRP permits will be accepted beginning March 31, 2015; enforcement will begin on July 1, 2015.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.