Public Chapter 264 (2021) amends the definition of “short-term rental unit marketplace” for local occupancy tax purposes to specifically exclude persons engaging in “vacation lodging services.” The public chapter defines “vacation lodging service” as “a person or entity that is engaged in the business of providing the services of management, marketing, booking, and rental of short-term rental units.”
Because property management companies meet the definition of vacation lodging service, they are not short-term rental unit marketplaces and are therefore not required to collect and remit local occupancy tax to the Department. These amendments do not impact the application of sales and use tax or business tax.
Reference: Tenn. Code Ann. §§ 67-4-1401, -1501. Public Chapter 264 (2021).