LicensedRental

Hamilton County, Tennessee

Soddy-Daisy, TN vacation rental requirements

Soddy-Daisy treats short-term rentals as home occupations and requires a yearly permit ($500, then $200 to renew) from the building inspector, with a contact who can respond within 45 minutes and an annual fire inspection. Tax is 9.25% sales plus 8% occupancy.

Checked against official sources November 5, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

Only when this town’s rules, fees, or forms change. Unsubscribe anytime.

City permit
Required, yearly
From the Building Inspector/Codes Enforcement Officer (§106.2). Issued or denied within 14 business days.Source
Fees
$500, then $200 a year
$25 per re-inspection.Source
Response time
45 minutes
A designated contact reachable 24 hours a day.Source
Taxes
9.25% sales tax + 8% occupancy tax

Because short-term rentals are classed as home occupations, ask the city whether the owner or family must live on the property and which zones allow them. Operating without a permit is a $50 citation per day per unit.

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.

Hamilton County, Tennessee

  1. Register for the county occupancy tax

    For direct bookings, file the county’s 4% with the Hamilton County Trustee by the 20th of each month. The Trustee also handles the Chattanooga, East Ridge, Collegedale, and Red Bank city taxes.Source

  2. Then your city

    Permits differ a lot from city to city. Pick your area.

City of Soddy-Daisy

  1. Apply for the permit

    Submit a life-safety affidavit, owner and contact details, proof of liability insurance, and a site plan. Smoke alarms, a carbon monoxide detector, and a fire extinguisher are checked before the first permit.Source

  2. Renew every year

    Renewal includes an inspection by the building inspector and the fire chief or fire marshal. Permits don’t transfer; a sale voids the permit.Source

  3. Register for sales and occupancy tax

    Tax on stays here is 9.25% sales tax plus 8% 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. For direct bookings, ask the city where to file its 4% occupancy tax; the county 4% goes to the Hamilton County Trustee.Source

House rules for guests

Parking
1 on-site space per 4 guests
No parking on the street or right-of-way.Source
Minimum stay
24 hours
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.