Persons operating trailer parks or campsites where charges are made only for the rental of real property are exempt from business tax. However, individuals who are also selling electricity and/or water service are taxable on those sales. If one sales price includes both the rental amount and the electricity and/or water service, the entire amount is taxable. The seller must register and obtain business licenses as a Classification 3 business.
Businesses renting trailers to transients for occupancy at a trailer park location for a period of 90 days or less, or those who sell tangible personal property or make separate charges for specific services furnished are liable for business tax under the appropriate classification based on their dominant business activity, either as Classification 2 or Classification 3 businesses.
Reference: Tenn. Comp. R. & Regs. 1320-04-05-.56.