On July 22, the Tennessee Governor signed into law S.B. 1778, which requires short-term rental unit marketplace facilitators to collect and remit local occupancy tax. The bill, as amended, defines “short-term rental unit marketplace” to mean any person or entity that provides a platform for compensation, through which a third party offers to rent a short-term rental unit to an occupant. “Short-term” refers to rentals of less than thirty days. It does not affect hotels or bed and breakfasts. The changes go into effect January 1, 2021.
