Property management companies are liable for business tax on the gross receipts received from overnight rentals and other sources subject to business tax. A property management company is a person who, for consideration, manages a vacation lodging for an individual property owner that provides such lodging for a rental fee to consumers. Property management companies are taxable as Classification 3 taxpayers.
Reference: Tenn. Code Ann. §§ 67-4-702(a)(14) and 67-4-730.