Short-term rentals in Gatlinburg, explained properly.

Short-term rentals are described as permitted by right across most of Gatlinburg's zoning map outside the two excluded residential zones. The city's zoning ordinance confirms that single-family dwellings in the R-1 district may be used as tourist residences with an annual Tourist Residence Permit and parking based on maximum sleeping accommodations; the other listed districts come from a secondary guide and have not been confirmed against the ordinance text (C-1 is the ordinance's Tourist Commercial district). Property-specific zoning should always be confirmed with Gatlinburg's Planning and Codes Department, since HOA covenants can be stricter than the city's zoning.

The county's Short-Term Rental Unit permit program applies only outside the limits of the county's incorporated cities (Gatlinburg, Pigeon Forge, Sevierville and Pittman Center). Properties inside a city follow that city's rules instead of the county's. A property with a Gatlinburg mailing address can still be outside city limits, so check the parcel's actual jurisdiction before assuming which program applies.

Tennessee's statewide Short-Term Rental Unit Act (Public Chapter 972, effective May 17, 2018) establishes a baseline regulatory framework and grandfathers existing rentals from later local prohibitions (that protection ends if the property is sold or transferred, goes unused as an STR for 30 consecutive months, or racks up three or more violations), but still allows cities and counties to adopt their own permit, safety, and zoning requirements on top of it — which is why Gatlinburg and Sevier County both layer their own programs on the state framework.

Applies to: From the city's application form (rev. 6/18/2020); confirm it is still the current form

Gatlinburg's Tourist Residency Permit fee scales with bedroom count: $200 for two bedrooms or fewer, plus $75 for each bedroom over two, per the city's own application form (revised June 18, 2020). The city's permit page lists the application but does not show a newer fee schedule, so confirm no later revision before relying on the figure.

Sevier County charges a flat $250 annual fee for units sleeping 12 or fewer occupants, plus $25 per additional occupant for larger units. Payments are non-refundable, and a third or later re-inspection costs an additional $25.

Owners apply through the CommunityConnect.io portal, submitting a completed permit application and property information for each rental address; a separate application is required for each property, and payment is made online or by mailed check.

Applies to: City of Gatlinburg figure from a secondary source; confirm exact fine schedule with the city

Operating an unpermitted short-term rental in Gatlinburg carries fines starting at $500 per violation, with possible permit suspension or revocation for repeat or serious violations.

Owners who fail to comply with the county's permit and inspection program face fines or other penalties. If an inspection is failed, the owner must make corrections and schedule a re-inspection before a permit will issue.

Applies to: Insurance/parking plan/self-certification from a secondary source only; sprinkler rule from the city's application form

A secondary guide says Gatlinburg's permit application requires proof of insurance, a parking plan, and a life-safety self-certification in addition to the 24/7 local contact designation. The city's own application form (rev. 6/18/2020) does not list these items; it does require the number of stories, maximum occupants and gross square footage, and requires an approved sprinkler system for any tourist residence over three stories, over 5,000 gross square feet or over 12 occupants. The zoning ordinance ties required parking to maximum sleeping accommodations.

Tennessee's state sales tax rate applies to short-term rental lodging statewide, per the Tennessee Department of Revenue's short-term rental tax manual.

Applies to: Confirmed via city and county documents citing 9.75% combined; not yet checked against the Department of Revenue's rate lookup

Sevier County's local option sales tax rate (2.75%, the maximum Tennessee allows) applies on top of the state rate for short-term rental transactions countywide, including within Gatlinburg, for a combined 9.75% sales tax. Gatlinburg's own overnight-rental guidance and Sevier County's lodging tax page both cite the 9.75% combined figure.

Applies to: Inside Gatlinburg city limits only (unincorporated county properties pay the 3% county lodging tax instead)

Gatlinburg charges a 3% hotel/motel tax on gross rental proceeds, filed monthly with the city and due by the 20th of the following month. Two of the city's own documents (the hotel/motel tax return form and its overnight-rental guidance) both state 3%; a secondary source's 2.5% figure is contradicted by both. The city's tax form is dated 2020, and the municipal code chapter that sets the rate was not readable for automated review.

Operators must register with the Tennessee Department of Revenue for a sales and occupancy tax account in addition to city/county business licenses.

Applies to: Unincorporated Sevier County only

Properties outside the city limits of Sevierville, Pigeon Forge, Pittman Center and Gatlinburg owe Sevier County's 3% lodging tax, collected from the renter on rent, cleaning fees, pet fees and any other fees. Owners must register with the Sevier County Trustee's Office and file monthly (due by the 20th for the previous month); where a platform such as Airbnb or VRBO collects the tax, the owner must still register but does not file monthly.