Short-term rentals in Gatlinburg, Tennessee, are temporary accommodations for overnight guests, occupying residential dwellings for any period between one day and a maximum of 89 consecutive days.

Yes, there are STR regulations that affect property owners in Gatlinburg

Yes, there are short-term rental related taxes.

Yes, individuals are permitted to operate short-term rental businesses according to local regulations

Short-term rental (STR) businesses in Gatlinburg, Tennessee, are generally permitted in most zoning districts, with a few exceptions and specific requirements depending on the zone and type of STR operation.

Tourist Residencies which covers a large portion of Gatlinburg and encompasses various residential neighborhoods near attractions and downtown. Short-term rentals are generally allowed in tourist residencies without additional restrictions.

Certain commercial zones zoned for hotels and lodging establishments also permit STR businesses. These zones typically cater to tourist areas and offer greater flexibility for operating larger STR properties.

However, in R-1 Residential Districts, short-term rentals are only allowed if the owner resides in the property full-time. This means you cannot operate a rental property in an R-1 zone as a purely investment property without living there yourself.

Yes, there are short-term rental related taxes.

Yes, you are required to obtain a business license and a short-term rental permit from the City of Gatlinburg.

9.5% combined sales tax (7% that goes to the State of Tennessee Department of Revenue https://www.tn.gov/revenue.html  and 2.5% is directed to Sevier County).

Gatlinburg Occupancy Tax: This is a 3% tax on the rental income, added to the base state sales tax. You are responsible for collecting and remitting this tax to the City of Gatlinburg.

Tennessee Sales Tax:

Register your STR with the Tennessee Department of Revenue (TDOR) online at https://www.tn.gov/revenue/e-filing-information.html. You'll receive a Sales Tax License and Account Number.

File and pay sales tax electronically through the TDOR's "File & Pay" system accessible through your online account. Filing frequency depends on your expected annual sales tax:

Quarterly filing if less than $5,000 per quarter; Monthly filing if exceeding $5,000 per quarter. Payment deadlines align with filing deadlines.

Gatlinburg Occupancy Tax:

Obtain a Tourist Residency Permit from the City of Gatlinburg Finance Department. They will assign you a permit number required for collecting and remitting the tax. Include the 3% Gatlinburg occupancy tax when collecting rental income from guests. File and pay the collected occupancy tax electronically through the city's online portal using your permit number.

Frequency aligns with your Tourist Residency Permit type:

Monthly for permits obtained after April 30th.

Annually for permits obtained before May 1st.

Accessory dwelling units (ADUs), studio apartment, duplexes, and multifamily homes.

Yes, it does.

The city of Gatlinburg has specific regulations for short-term rentals. These include obtaining a business license and a short-term rental permit, as well as maintaining a minimum standard of safety and cleanliness. Additionally, hosts must comply with zoning regulations, noise ordinances, and parking requirements.

SHORT-TERM RENTAL PERMIT

To apply for an STR Permit, you are to fill the one-page application which requires the following information:

1. Your name, address, email, and phone number, along with the rental unit's address and name;
2. Specifications of the number of stories, bedrooms, and the total building size as well as the maximum number of guests allowed;
3. If your tourist property has more than 3 bedrooms, exceeds 5,000 square feet, or can accommodate over 12 occupants, an approved sprinkler system is mandatory;
4. Your rental agent's name, mailing address, and phone number (if any);
5. The permit fee is $200 for up to 2 bedrooms, with an additional $75 per bedroom beyond that. These fees includes cost of inspections of the property.

Renewal of STR Permits is to be done annually to ensure compliance.

STR License: https://www.gatlinburgtn.gov/i_want_to/apply_for_a_tourist_residency_permit.php

• Accessibility Requirement: Gatlinburg doesn't have specific accessibility requirements mandated for all STRs. However, the Americans with Disabilities Act (ADA) applies to all public accommodations, and some STRs might fall under this category depending on their operation.
• Noise Regulation: Gatlinburg enforces a citywide noise ordinance from 10:00 PM to 7:00 AM. During these hours, noise levels must be reasonable and not disturb neighboring properties. This includes loud music, excessive talking, and other disruptive sounds. Specific decibel limits are not explicitly outlined, but the emphasis is on maintaining peace and quiet for residents. Be mindful of noise generated by guests, especially late at night and early morning.
• Parking Requirement: The exact parking requirement for your STR depends on the zoning district where it's located. The zoning code specifies the minimum number of parking spaces based on factors like property size and bedroom count. Ensure you have sufficient on-site or nearby parking available for the maximum allowed number of guests in your STR. Street parking might not be enough, and exceeding limitations can lead to fines or towing.
• Advertising Requirement: You cannot advertise your STR as "vacation rental" within the city limits. Instead, use terms like "tourist residency" or "short-term rental". Misleading or deceptive advertising is prohibited, so ensure your listings accurately represent your property, amenities, and any restrictions. Obtain a Tourist Residency Permit before advertising your STR, as displaying the permit number in your ads is mandatory.
• Neighbor Notification: There is no official requirement to directly notify neighbors about your STR operation. However, practicing good neighborliness is highly encouraged. Consider introducing yourself and briefly explaining your STR, addressing any potential concerns they might have about noise, parking, or other impacts.
• Waste Disposal Regulations: STR owners are responsible for ensuring proper waste disposal according to Gatlinburg's sanitation regulations. This includes providing adequate trash receptacles for guests, arranging regular curbside pickup, and complying with any recycling or composting requirements. Leaving excessive trash, exceeding container limits, or disposing of hazardous materials improperly can result in fines.

Gatlinburg Zoning Ordinance: Violations can incur fines ranging from $50 to $1,000 per day, depending on the severity and frequency of the violation. This covers exceeding occupancy limits, operating in unpermitted zones, and noise ordinance violations.

Tourist Residency Ordinance: Non-compliance with guest record keeping, permit display, and other requirements can attract fines of $250 to $500.

Gatlinburg Business License & Permit Office: Operating without a required business license can result in fines of $50 per day.

Permit Revocation: The City of Gatlinburg has the authority to revoke your Tourist Residency Permit, effectively shutting down your STR operation.

Legal Action: In severe cases, non-compliance could lead to lawsuits from neighbors, guests, or the city itself.

Negative Reputation: Repeated violations can damage your reputation and negatively impact your STR's bookings and reviews.

Yes, the City of Gatlinburg is the primary authority responsible for zoning regulations and permitting for STRs within the city limits.

Website: https://www.gatlinburgtn.gov/

Phone: (865) 436-1400

Address: 1230 East Parkway, Gatlinburg, TN 37738

Hours: 8:00 a.m. to 4:30 p.m., Monday through Friday

Facebook: https://www.facebook.com/CityofGatlinburg/

Twitter: @cityofgatlinburg

SHORT-TERM RENTAL PERMIT

To apply for an STR Permit, you are to fill the one-page application which requires the following information:

1. Your name, address, email, and phone number, along with the rental unit's address and name;
2. Specifications of the number of stories, bedrooms, and the total building size as well as the maximum number of guests allowed;
3. If your tourist property has more than 3 bedrooms, exceeds 5,000 square feet, or can accommodate over 12 occupants, an approved sprinkler system is mandatory;
4. Your rental agent's name, mailing address, and phone number (if any);
5. The permit fee is $200 for up to 2 bedrooms, with an additional $75 per bedroom beyond that. These fees includes cost of inspections of the property.

Renewal of STR Permits is to be done annually to ensure compliance.

STR License: https://www.gatlinburgtn.gov/i_want_to/apply_for_a_tourist_residency_permit.php