Short-term rentals in Sevierville, explained properly.

Short-term rental operators must obtain a Short-Term Rental Operational Permit before operating or advertising a short-term rental. The permit is run jointly by the City's planning department and Fire Department; the Fire Department issues it once the application, fee, proof of insurance and inspection are complete.

Zoning Ordinance Table 3.1 (Uses Permitted by District) marks short-term rental units as permitted in Agriculture Residential (AR), High Density Residential (HDR), Town Center (TC), Intermediate Commercial (IC), Tourist Commercial (TCL), Visitor Accommodation (VA) and Master Planned Development (MPD); permitted on review in Medium Density Residential (MDR), Arterial Commercial (AC) and Historic Residential Office (HRO); and not marked for Low Density Residential (LDR), Neighborhood Commercial (NC) or Industrial (IN). Rentals must also meet the additional standards in Section 3.4.5.6. Check your zone with the City before buying or applying.

In the MDR zone, a short-term rental may be allowed only after notice to property owners within 100 feet of the proposed rental, given at least 21 days before the Planning Commission meeting. Notified owners have 7 days to respond. If no opposition is reported, planning staff may approve the rental; if opposition is reported, the Planning Commission holds a public hearing and decides.

In the AC zone, a time-share unit is the only kind of short-term rental allowed, and only on review. In the HRO zone, short-term rental units are allowed only on a collector or arterial street and only if they can meet the parking and solid waste requirements.

Before a permit is granted, the Fire Marshal's Office must complete a life-safety inspection. To apply or renew, you pay the annual fee and provide current proof of insurance; the Fire Department then schedules the inspection and issues the permit once all steps are complete.

The operational permit must be renewed each year before the previous permit expires, and an annual inspection is required before the renewal is granted. The Fire Department contacts permit holders to start the renewal.

The City's fee schedule, adopted with the fiscal year 2027 budget (Ordinance O-2026-005, approved June 15, 2026), sets the Short-Term Rental Unit operational permit at $200 per unit per year.

Applications are filed online at MGO Connect under the City of Sevierville's Planning and Zoning applications (Short-term Rental), with the required documents uploaded. The Planning department reviews the application and contacts the applicant in 1 to 2 weeks.

The approved operational permit must be posted directly inside the main entrance, and a short form of the permit must be posted where it is visible from the front exterior, unless the Fire Marshal says otherwise. The occupancy load must also be posted where the fire code official accepts.

Short-term rentals lose the state sprinkler exemption and must have fire sprinklers if the occupant load is 13 or more, the building is more than 3 stories (a basement counts as a story) or it is larger than 5,000 gross square feet. Occupant load is calculated at 1 person per 200 square feet of conditioned space (some spaces such as porches, garages and small closets and bathrooms are excluded for homes under 5,000 sq ft). The Fire Department states that sprinklers are required for any rental that sleeps more than 12 people.

Short-term rentals need 1 parking space per bedroom (at 2 people per bedroom) plus 1 space for every 4 additional guests based on the occupancy load. No recreational vehicles, buses or trailers may be visible on the street or property in connection with the rental.

The Fire Department's inspection guide lists interconnected smoke alarms on every level and in every sleeping area; annually tagged fire extinguishers rated at least 2A:10BC (5 lb) on all levels; an operable window or door to the outside from every sleeping area; and a street number at least 4 inches tall visible from the street. It also covers gas fireplaces, hot tub disconnects, extension cords, grills and fire pits. The list is not exhaustive.

The operational permit is revoked if three citations and/or violations are issued within the annual permit term. It stays revoked for one year, and a new permit can be issued during that year only to a new owner with no family or business connection to the former owner.

This page covers properties inside Sevierville city limits; the City asks applicants to confirm their location on its City Limits Verification Map. Sevier County requires its own annual short-term rental permit and inspection for rentals in Sevier County outside city limits.

The City of Sevierville levies a 3% lodging (occupancy privilege) tax on the consideration charged for stays of less than 30 continuous days in any structure occupied by transients, which includes cabins and other short-term rentals inside city limits. It is part of the City's hospitality taxes.

Lodging tax is remitted to the City no later than the 20th of each month for the previous month. To set up a hospitality tax account, the City asks you first to obtain a Certificate of Zoning Compliance and then apply as a new business to file hospitality taxes; filings are made online. If you rent through both a platform and directly, the platform reports its bookings and you continue to report your direct earnings to the City.

The local sales tax rate for addresses in the City of Sevierville is 2.75%, on top of the 7% state rate (9.75% in total), filed with the Tennessee Department of Revenue.

Sevier County's 3% lodging tax, paid to the County Trustee, applies to overnight rentals outside the city limits of Sevierville, Pigeon Forge, Pittman Center and Gatlinburg.

Renting a home, cabin, condominium or room for lodging is subject to Tennessee's 7% state sales tax and the local sales tax rate where the rental is located. The Tennessee Department of Revenue administers both. Sales tax is charged on the full price of the stay, including required fees such as cleaning and booking fees.

Tennessee sales tax does not apply to a room or home rented to the same person for 90 or more continuous days. Local occupancy taxes apply only to short-term rental units rented for 30 days or less and stop applying on day 31; for rental agreements made, renewed or amended on or after July 1, 2025, occupancy tax collected on days 1 to 30 is not refunded.

The Tennessee Department of Revenue says property owners and property management companies with over $100 a month in taxable sales must register with the Department and collect and remit sales tax. If you list only through an online platform that is a marketplace facilitator, the platform collects and remits sales tax on those bookings and you should keep records showing the rentals went through it. Bookings you take directly, outside a platform, are your responsibility.

Online platforms that are marketplace facilitators collect and remit Tennessee sales tax on bookings made through them. Since January 1, 2021, short-term rental platforms have also collected local occupancy taxes on their bookings and paid them to the Department of Revenue, so the owner does not collect local occupancy tax on those bookings.

Many Tennessee cities and counties charge their own occupancy tax on short-term rental stays. For bookings you take yourself (not through a platform), you collect it and pay it directly to the local government where the rental is, not to the state. The Department of Revenue advises every owner, including those who rent only through platforms, to contact the local officials, because there may be local reports or requirements.