Heard about Tennessee’s 30-day occupancy tax change but not sure what it means for your Gatlinburg rental? You’re not alone. Owners and managers across Sevier County are sorting out how longer stays should be taxed and what to update in their systems right now. In this guide, you’ll learn what to verify with state and local authorities, how to handle pricing and bookings, and how to keep your records clean so you stay compliant without disrupting reservations. Let’s dive in.
What changed and why it matters
Reports indicate Tennessee guidance may require the first 30 days of a guest’s continuous stay to be subject to transient or occupancy taxes, even when a stay lasts longer than 30 days. Before you change anything, verify whether this is a change in statute or a Department of Revenue interpretation, whether it applies statewide, and the effective date. Also confirm if local rules in Gatlinburg or Sevier County change as a result and whether existing bookings are affected.
Why this matters if you host in Gatlinburg: you may need to tax nights 1 through 30 of longer bookings, adjust the way your system calculates taxes, and update guest invoices so they clearly reflect how taxes are applied. Getting this right protects you from penalties and prevents confusion with guests.
Who is affected in Gatlinburg
You are in a layered jurisdiction: state rules sit on top of county and city requirements. Confirm which taxes apply to your property type and whether the 30-day rule changes only the taxable portion of a stay or also which rates apply. If you operate inside Gatlinburg city limits, check city registration, permit, and remittance requirements as well as Sevier County rules.
Platform responsibilities can vary. Some platforms may collect and remit occupancy taxes for you in certain jurisdictions. Others may not cover all local taxes, or their calculations may not yet reflect the first-30-days approach. Always reconcile platform statements with your own records.
What to verify now
- Whether the change is in Tennessee law or Department of Revenue guidance and the confirmed effective date.
- If the first 30 days of a continuous stay are taxable at the state and local level in Gatlinburg.
- Gatlinburg city and Sevier County remittance processes and deadlines.
- Platform collection behavior in Gatlinburg and any update timelines.
For authoritative answers, contact or check:
- Tennessee Department of Revenue resources on hotel, motel, sales, or privilege taxes.
- Tennessee Code Annotated for transient occupancy and related tax sections.
- City of Gatlinburg finance or revenue department for local ordinances and accounts.
- Sevier County trustee or revenue office for county occupancy tax rules.
- Local hospitality associations for implementation guidance.
How to handle bookings and pricing
Pricing and quotes
Decide whether to present occupancy taxes as a separate line item or include them in your total. For transparency, most hosts show a clear tax line that covers the first 30 days if applicable. If your minimum stays are longer, recheck how quotes display tax across the 30-day threshold.
Reservation systems and calendars
If a stay crosses the 30-day boundary, configure your PMS or channel manager to tax nights 1 through 30 only when the rule applies. Some hosts find it cleaner to keep one continuous reservation with correct tax logic rather than splitting into two bookings, which can confuse guests.
Contracts and guest communications
Update rental agreements to explain who collects and remits occupancy tax and how it will appear on invoices. Prepare a short message template for guests that explains the first-30-days calculation in plain language. Keep it consistent across direct bookings and platform messaging.
Refunds, cancellations, and extensions
Create a policy for prorating taxes if a guest checks out early or extends a stay. If an extension pushes a stay beyond 30 nights, you may need to adjust the final invoice so only the first 30 nights are taxed. If a stay is shortened to fewer than 30 nights, taxes may apply to the entire stay.
Accounting and remittance
Set up bookkeeping to separate taxable from non-taxable nights in every reservation. Track tax collected, tax payable, and taxes remitted at both state and local levels. Keep documentation organized so audits are straightforward.
Action checklists
For self-managers
- Verify the rule and effective date with the Tennessee Department of Revenue and local offices.
- Confirm combined local occupancy taxes that apply to your property within Gatlinburg and Sevier County.
- Check platform tax collection behavior for Gatlinburg and how it handles the first 30 days.
- Update PMS or booking engine tax logic and test with sample reservations.
- Revise rental agreements and invoice templates to show tax for the first 30 days where required.
- Prepare guest messaging for long stays, refunds, and extensions.
- Set a monthly remittance routine and reconcile platform statements.
- Retain invoices, booking details, and tax filings in a single audit-ready folder.
For property managers
- Notify owner-clients about the reported change and your verification plan.
- Confirm the rule’s scope and timeline with state and local authorities.
- Audit all active and upcoming reservations that exceed 30 nights; flag where invoices must reflect the first-30-days calculation.
- Update PMS and channel manager rules portfolio-wide; document SOPs for staff.
- Refresh owner statements to show tax collected and remitted by property.
- Coordinate with platforms and keep copies of platform remittance reports.
- Train front desk or guest services on explaining the tax line item.
- Establish an internal compliance calendar for registrations, filings, and payments.
Examples of how tax may apply
These examples use round numbers to illustrate the logic. Confirm your actual rates and tax calculations with official sources before invoicing.
- 25-night stay: The stay is fewer than 30 nights, so occupancy tax applies to all 25 nights.
- 45-night stay: The first 30 nights are typically taxable. Nights 31 through 45 are not, assuming the first-30-days rule applies in Gatlinburg.
- 60-night stay booked as two back-to-back reservations: If you split into two separate bookings under 30 nights each, both may be fully taxable. Treating it as one continuous 60-night reservation would usually tax only the first 30 nights.
- Stay that spans an effective date: If a stay begins before a confirmed effective date and ends after, you must verify how transition rules apply before invoicing.
Platform collection vs host collection
- If a platform collects: You may see taxes for the first 30 nights listed in platform payout and remittance reports. Keep these reports with your records. Confirm whether you still need to file returns locally to report zero due or to reconcile platform remittances.
- If the host collects: Add a clear tax line item to your invoice for nights 1 through 30. Collect at booking or before check-in, then remit on the local schedule. Keep proof of collection and remittance with the reservation file.
Compliance, penalties, and audit readiness
Late or missed remittances can result in penalties and interest. To reduce risk, register promptly, remit on time, and show taxes as clear line items on invoices. Maintain documentation for each reservation, including guest name, dates, taxable nights, tax amounts, and remittance confirmations.
Where to verify and who to contact
Use these official channels for confirmation and ongoing guidance:
- Tennessee Department of Revenue for state-level tax rules and any bulletins referencing a 30-day standard.
- Tennessee Code Annotated for the statutory language on transient occupancy and related taxes.
- City of Gatlinburg finance or revenue department for city registration, licensing, and local occupancy tax procedures.
- Sevier County trustee or revenue office for any county-level occupancy or tourism tax.
- Local lodging and hospitality associations for practical implementation guidance in Sevier County.
- A Tennessee-based CPA or tax attorney experienced in STR compliance for complex cases.
The bottom line for Gatlinburg owners
Treat the 30-day change as material until you confirm the details. Prioritize verification, update your systems and documents, and keep communication simple and consistent with guests. With the right setup, you can stay compliant while keeping bookings intact and guest trust high.
If you own or plan to buy a Gatlinburg or Smokies-area rental and want a clear game plan, let’s talk about strategy and compliance-ready operations that also protect your revenue. Schedule a personalized market consultation with Karli Pritchard Realtors.
FAQs
Does the 30-day occupancy tax rule apply to Gatlinburg rentals?
- Reports suggest the first 30 days of a continuous stay may be taxable statewide. Verify applicability and timing with the Tennessee Department of Revenue and local offices in Gatlinburg and Sevier County.
How should I handle a 45-night Gatlinburg stay under the new rule?
- Typically you would tax nights 1 through 30 and not tax nights 31 through 45, if the rule applies as reported. Confirm details and update your PMS and invoice templates accordingly.
Do I need to cancel or rebook existing reservations because of this change?
- Generally no. Keep bookings intact, verify the effective date, and adjust invoices and system settings so the first 30 nights are taxed correctly when required.
Will platforms like Airbnb or Vrbo collect Gatlinburg occupancy taxes for me?
- It depends on the platform and jurisdiction. Check each platform’s host tax policies for Gatlinburg, verify whether they follow a first-30-days approach, and reconcile platform remittances with your records.
What if a guest extends a stay past 30 nights in Gatlinburg?
- Update the invoice so that nights 1 through 30 are taxed and nights beyond 30 are treated per the verified rule. If the guest extends or shortens, adjust the tax line item and keep documentation in the reservation file.
How do I show occupancy tax to guests under the 30-day approach?
- Use a clear invoice that lists occupancy tax for nights 1 through 30 as a separate line item. Note who is collecting and remitting the tax, and keep your messaging consistent across booking channels.
