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

Chapter 2 of Title 13 defines a short term vacation rental (STVR) as a residential dwelling unit with no more than four sleeping rooms rented for transient occupancy of 21 continuous days or less (§ 13-201). 00 annually in Appendix A's Chapter 13 fee schedule (§ 13-214). Separate from that permitting fee, § 13-215 places the tax-collection burden squarely on the owner and/or the designated responsible party: they must collect and remit every applicable room, occupancy, and sales tax the state or the Municipal Code imposes on the rental income, whether that is a state transient-occupancy levy or the city's own hotel/motel-style tax.

The section does not set its own rate; it incorporates by reference whatever rate state law or the rest of the Code establishes, so an STVR owner effectively owes the same room-tax obligations as a hotel operator, layered on top of the STVR-specific permitting fee. 00 per day per offense, with each day of noncompliance charged separately. Because the permit renews every 365 days under § 13-214, BNS has a recurring checkpoint to confirm an operator's tax-collection status alongside insurance and occupancy paperwork, and a pattern of unresolved tax or other STVR violations can feed into the chapter's separate complaint process, which lets the board of mayor and aldermen revoke the right to operate after three or more documented complaints in a calendar year.