LicensedRental

Anderson County, Tennessee

Norris, TN vacation rental requirements

Norris requires a city permit ($250, then $50 a year) for short-term rentals and, since November 2022, allows new ones only in its commercial, professional, and scenic highway districts. Tax is 9.75% sales tax plus the 4% city occupancy tax.

Checked against official sources November 5, 2026

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City rental permit
$250, then $50 a year
Annual renewal includes an inspection.Source
Zoning
C-1, C-2, P-1, S-1 only
Banned in R-1, R-2, and FAR residential districts (November 2022).Source
Size limit
3 bedrooms, 2 guests each
As reported when the ordinance passed.Source
Taxes
9.75% sales + 4% city occupancy
City rate effective March 1, 2024.Source

These facts come from 2022 news coverage of the ordinance and zoning change; we couldn’t read the ordinances themselves. Confirm fees and zones with the city.

Rentals operating legally before the zoning change may continue under the state’s 2018 law; city officials said none were licensed in the residential zones at the time.

Your licensing checklist

In order: the state, the county, then the town.

State of Tennessee

  1. Register for sales tax

    Register through the Tennessee Taxpayer Access Point (TNTAP). One registration covers all your rentals in the same city or county. If you take direct bookings, collect 7% plus the local rate and file by the 20th of each month. Once registered, file every month, even a $0 return.Source

    TNTAP →

  2. Get a business tax license

    Rentals under 180 days owe business tax. With $3,000 to $100,000 a year in gross receipts in a city or county you need a minimal activity license; at $100,000 or more, a standard license. Booking platforms don’t handle this for you.Source

  3. Know what the platform collects

    Airbnb, VRBO, and other marketplaces collect and remit sales tax and local occupancy tax on their bookings. Keep records showing they did. For direct bookings, you pay sales tax to the state and occupancy tax to the city or county.Source

  4. Then your county and city

    Permits, zoning, and occupancy tax rates are where Tennessee towns differ most. Pick your area.

Anderson County, Tennessee

  1. Register for sales and occupancy tax

    Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax through TNTAP and occupancy tax with the county or city.Source

  2. Then your city

    Pick your area.

City of Norris

  1. Check your zone

    New short-term rentals are allowed only in the C-1 and C-2 commercial districts, the P-1 Professional and Civic District, and the S-1 Scenic Highway District.Source

  2. Get licenses and the city permit

    Get Anderson County and Norris business licenses, then apply for the city permit ($250) and pass the city inspection. Renew yearly ($50).Source

  3. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax + 4% city occupancy tax. Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax with the state through TNTAP by the 20th of each month. The state’s rate map lists a separate city rate; ask the city whether the county’s rate also applies inside city limits, and whether direct-booking tax is filed with the city or the county.Source

House rules for guests

Parking
Adequate on-site parking
No parking on any vegetated area.Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.