Tennessee Department of Revenue Reaches Agreement with Airbnb

Airbnb recently struck a deal with the Tennessee Department of Revenue to collect and remit state and local taxes on behalf of its 7,700 hosts, according to the Nashville Business Journal. This arrangement has been used in other markets to address concerns regarding tax revenue from their short-term rentals not being on par with that of their hotel competitors. Tennessee joins neighboring states of Kentucky, Missouri, Alabama, Mississippi and Arkansas as areas with similar agreements. 
 
This news comes as Metro Council was scheduled to vote on BL-937, an ordinance amending Title 6 and sections 17.04.060, 17.08.030, 17.16.250 and 17.16.070 of the Metropolitan Code of Laws to add a new Chapter 6.83 pertaining to a short-term rental properties advisory committee and to establish regulations regarding short-term rental properties and distinct land uses for "Short-term rental property - Owner-Occupied" and "Short-term rental property - Not Owner-Occupied." The vote, however, was commuted to Jan. 23 because of inclement weather.
 
The company has long been a source of controversy in the area because of various concerns of taxation, noise complaints, even sparking First Amendment debates regarding anatomically correct sex dolls. In fact, problems with Airbnb rentals have become so numerous, Nashville Mayor Megan Barry established a devoted hotline tasked with aggregating and addressing these concerns.
 
The new statewide tax agreement, which will take effect March 1, is the second such deal Airbnb has struck in Tennessee, following an earlier agreement with Memphis. Airbnb has touted the agreements as a revenue generator and a reason for governments to work with — not against — the company.
 
 
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