Jackson County Could Add 5% Privilege Tax On Short-Term Rentals

Jackson County could implement a privilege tax on short-term rentals as early as this summer.

Mayor Randy Heady said the five-percent tax will have a positive impact as rentals like Airbnb properties become more popular among tourists.

“It will have an impact but it will not be extreme,” Heady said, “but down the road in the future as Airbnbs, bed-and-breakfasts and also campgrounds, as they continue to grow, this gives us an opportunity to get some revenue like [what] those counties adjacent to us already have in place and are getting those revenues in.”

Governor Bill Lee signed House Bill 1540 into law last Friday, allowing Jackson County to implement the tax.

Heady said the additional revenue will provide a much-needed boost to the county’s general fund while providing relief to county taxpayers.

“We struggle sometimes with revenue so this is a help to us,” Heady said. “With Cummins Falls being such as attraction and Roaring River, the Cumberland River, and the Granville area, as these things begin to grow and tourism grows in our area, we’re just trying to take an opportunity to help the citizens of Jackson County and keep property taxes at a minimum.”

Jackson County currently has no privilege tax on short-term rentals because there are no hotels or motels in the county. Heady said properties like those listed on Airbnb offer a unique experience for tourists and provides a new source of revenue for the county.

“The funny thing about Airbnbs is… you don’t really know about them, and that’s the uniqueness of Airbnbs, Heady said. “We are seeing those grow more and more in Jackson County as people buy homes that they come to on the weekends after weeks of vacation and rent those out while they’re not here.”

Heady said the county commission could approve the tax as early as their June 24 meeting. The commission could vote to designate tax revenue to certain areas like tourism and infrastructure at a later time.