Chattanooga, TN Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Private club rate
- $300/year
- Hotel/motel rate
- $1,000/year
- Restaurant tiers
- $600-$1,000 by seats
- Limited-service restaurants
- $2,000-$4,000 by food %
- Due date
- December 31 annually
Summary
Chattanooga levies an annual privilege tax on businesses that sell alcohol for on-premises consumption, tiered by business type from $300 private clubs to $2,000+ limited-service restaurants.
It is hereby declared that every person is exercising a taxable privilege who engages in the business of selling at retail in this city alcoholic beverages for consumption on the premises. For the exercise of such privilege, the following taxes are levied for city purposes to be paid annually:(1)Private club - $300.00(2)Hotel and motel - $1,000.00(3)Convention center - $500.00(4)Premiere type tourist resort - $1,500.00(5)Restaurant, according to seating capacity, on licensed premises:a.75—125 seats - $600.00b.126—175 seats - $750.00c.176—225 seats - $800.00d.226—275 seats - $900.00e.276 seats and over - $1,000.00(6)Limited Service Restaurants based on the gross sales of prepared food:a.at least 30% but not more than 50% of gross - $2,000.00b.at least 20% but not more than 30% of gross - $3,000.00c.at least 15% but not more than 20% of gross - $4,000.00(7)Commercial passenger boat company - $750.00(b)The privilege tax levied by this section shall be remitted annually to the city treasurer no later than December 31st of each year. (Ord. No. 14090, § 1, 3-12-24)
Secs. 5-146—5-160. - Reserved.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 40 Update 1).
Full Breakdown
City Code § 5-145 classifies alcohol-serving businesses for an annual city privilege tax: $300 for private clubs, $1,000 for hotels/motels, $500 for convention centers, $1,500 for premiere tourist resorts, and $600 to $1,000 for restaurants scaled by seating capacity from 75 to 276+ seats. Limited-service restaurants pay $2,000 to $4,000 based on what share of gross sales comes from prepared food. This tax applies only to on-premises alcohol sales, not businesses generally.
Violations & Fines
The tax must be remitted to the city treasurer by December 31 each year under § 5-145(b); missing that deadline exposes the licensed premises to code enforcement action.
Frequently Asked Questions
Does this tax apply to every Chattanooga business?
How much does a 200-seat restaurant bar owe?
Sources & Official References
Other rules in Chattanooga
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