For Municipalities
Short Summary of SB1086 Section-by-Section Summary of SB1086
Short Summary of SB372 Section-by-Section Summary of SB372
Responding to Industry Arguments
Sample Message to Neighborhood Groups (Brentwood)
For Citizens and Neighborhood Groups
What is this AirBNB discussion about?
Update - 3/3/17
Both short-term rental bills will be up for consideration in the House Business and Utilities subcommittee Tuesday, March 7.
Update - 2/27/17
For the 2017 legislative session, two separate bills have been filed as it pertains to short-term rentals.
One is helpful to local governments. SB372, sponsored by Sen. Doug Overbey, and HB497 by Rep. Gerald mcCormick, clarifies that a local government may regulate and tax a short-term rental unit that is located within the local government's jurisdiction.
Another proposal, SB1086(Steven)/HB1020(Sexton), would prohibit local governments from enacting any regulations on short-term rentals unless it pertains to public health and safety protections. The bill was drafted in consultation with Airbnb, HomeAway and other companies that allows property owners to rent out houses online.
BackgroundNationwide, the use of short-term rentals, property where individuals use websites like Airbnb.com and VRBO.com to rent their houses, apartments, condominiums, or rooms, to guests on a short-term basis, has increased in popularity. As a result, many cities, including several in Tennessee, have adopted regulations to address community concerns regarding the use of these rentals.
The short-term rental industry has established a trade association and has begun lobbying state legislatures, arguing that this type of business is an emerging market, and that regulation will strangle the industry.Supporters of this notion, including the Beacon Center of Tennessee, also challenge other laws and ordinances, including restricting the use of private property, requiring permits, capping the number of permits that may be issued, and regulating signage and parking.
Like cities, the TN Hospitality and Tourism Association has also supported regulation of the short-term rental industry.The organization applauded the Attorney General’s Opinion, which established that short-term home rentals, including those arranged through the online networks, are subject to hotel occupancy and sales tax (just like hotels and motels).The association called it a “huge victory to level the playing field for the lodging industry as it relates to short-term rentals.”
Cities recognize that the emergence of new “sharing economy” models do not fit neatly into many of our existing local regulatory environments, and that there is no “one-size-fits-all” approach that every locality can implement to address the influx of new economic activity.Local leaders are working to embrace change and innovation while simultaneously prioritizing safety, economic impact, delivery of services, and quality of life in our residential communities.
Peruse the documents below for additional perspective: