Public Chapter 787 (2020) requires short-term rental unit marketplaces to collect and remit the local occupancy tax to the Department of Revenue instead of the local government. Only short-term rental unit marketplaces should remit the local occupancy tax to the Department. This includes websites and platforms that facilitate the rental of residential units, including apartments, condominiums, and homes, owned by third-party sellers. Hotels and bed and breakfasts should continue remitting the local occupancy tax to the appropriate local government.
References: Tenn. Code Ann. §§ 67-4-1501-67-4-1509.