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

Franklin splits the money side of a short-term rental into two parts: a permit fee paid to the city, and taxes collected from guests and remitted to the taxing authority. The fee comes from Appendix A, Comprehensive Fees and Penalties, which lists a Short-Term Vacation Rentals Permitting Fee of $50.00 annually. Section 13-214 sets the renewal clock, requiring a STVR application every 365 days, so the $50.00 comes due again each year rather than once per property. The application goes to the building and neighborhood services (BNS) department, because § 13-202 bars anyone from operating or advertising a STVR until the owner has applied to BNS to update the certificate of use and occupancy.

Taxes sit in § 13-215, titled Payment of taxes required. The owner and/or responsible party must collect and remit all applicable room, occupancy, and sales taxes required by state law or the Municipal Code. The section prints no rate. Both the owner and the local responsible party named under § 13-203 carry the duty, so a property manager who handles bookings cannot treat the obligation as the owner's problem alone. Section 13-201 defines a STVR as a residential dwelling unit with not more than four sleeping rooms used or advertised for rent for transient occupancy, and stays to the same occupant of more than 21 continuous days fall outside the definition.

Other costs of staying permitted are written into the same chapter. Under § 13-204, proof of homeowner's fire, hazard, and liability insurance goes to BNS every year, with liability limits of not less than $1,000,000.00 per occurrence, held continuously while the STVR operates. Section 13-203 requires a responsible party living or located within 25 miles of the property. Section 13-212 allows no compensation for occupancy of less than 24 hours and caps any guest stay at 21 consecutive days, which limits how many taxable nights a unit can book per guest.

The fee is also what keeps the permit alive. Section 13-216 lets BNS notify the holder in writing after three or more complaints, including calls to the Franklin Police Department, within a calendar year, and lets the board of mayor and aldermen revoke the right to operate, after BNS gives the responsible party 15 days' written notice of the alleged violations.