Chattanooga, TN Short-Term Rentals: Taxes & Fees (2026)

Sec. 38-89(b)(1) sets the application fee on a sliding scale tied to the two occupancy classes: an absentee short-term vacation rental costs $500 for the initial application and another $500 to renew, while a homestay costs $250 for each. That fee is nonrefundable and comes on top of any transaction-related fees the payment processor charges, and (b)(2) requires it to be paid in full before the Development Review and Permitting Division will even review the application. Beyond the application fee, Sec. 38-88(h) makes the certificate holder, not the guest or a booking platform, legally responsible for collecting and remitting all applicable room, occupancy, and sales taxes required by both Tennessee law and the Chattanooga City Code.

Renewal carries its own fee cycle too: Sec. 38-91(e) sets an annual renewal fee payable to the Development Review and Permitting Division on top of any transaction fees and state taxes, and that fee must reach the City Treasurer within 30 days after occupancy begins in the renewed rental unit. A renewal application itself is due at least 30 days before the certificate expires under Sec. 38-91(b)(1), and a certificate that lapses more than 30 days past its expiration date cannot be renewed at all under Sec. 38-91(f), forcing the operator to reapply from scratch.