Jackson County wants all Air BnB clients to make sure they have a business license so occupancy taxes can be collected.
In January of 2020 an occupancy tax went into effect for the county. While the tax has brought in $15,000 in revenue, Jackson County Mayor Randy Heady said word of mouth indicates some clients are not paying what they should.
“We’re finding out that there’s several Air BnB’s in Jackson County that don’t have a business license and we’ve tried to do this by business license,” Heady said. “We’re finding out they don’t have that first, which is very inexpensive for Jackson County, it’s $15 for your first year business license.”
Heady said he wants Jackson County residents to understand the company Air BnB does not collect taxes on behalf of the county. Residents outside the states biggest metropolitan counties are personally responsible for reporting and paying their taxes. Heady said Air BnB does not collect for rural counties like Jackson.
“There’s only three counties, metropolitan counties in Tennessee that Air BnB collects for,” Heady said. “All the other rural counties they do not.”
Locally, Jackson County sends out monthly reminders for occupancy tax payments to Air BnB’s with a business license. Heady said this asks proprietors to calculate 5 percent of their monthly revenue.
“It’s pretty simple and easy to do, all you gotta do is fill that out,” Heady said. “It will tell you on there that you calculate 5 percent.”
Jackson County business licenses can be obtained at the county clerk’s office. Heady said he asks people to come in and do the right thing, as paying occupancy taxes are Tennessee Law.