Memphis, TN Short-Term Rentals: Host Platform Liability (2026)

Section 5-44-4(A) of the Short Term Rental Ordinance assigns tax-collection responsibility based on whether a hosting platform has a deal with the city. It states: 'A hosting platform, under a voluntary collection agreement with the city, which facilitates a transaction between a short term rental property owner and a transient for lodging accommodations, shall be solely responsible and liable for collecting and remitting all occupancy and sale taxes to the city; and a short term rental property owner who is not the hosting platform shall not be responsible for collecting and remitting occupancy and sales tax to the city on any transaction for which it has received confirmation that the hosting platform has collected the aforementioned taxes and remitted them to the city, pursuant to a voluntary collection agreement; otherwise, short term rental property owners shall be liable for the collection and remittance of occupancy and sales taxes, if no such voluntary collection agreement between a hosting platform and the city has been executed.'

In plain terms: if a platform such as Airbnb or Vrbo has signed a voluntary collection agreement with Memphis, that platform, not the individual host, is on the hook for the 3.5% STR tax and the $2.00 nightly assessment. Without such an agreement, liability reverts entirely to the property owner. Platforms and owners also share a listing-transparency duty: Section 5-44-5(B) requires that 'any advertising or description of a short term rental property on an internet website, mobile application, or other hosting platform must display a permit number for the short term rental property,' so every online listing must show the city-issued permit number regardless of who collects the tax.