Overview: Are Short-Term Rentals Allowed?

Short-term rentals (STRs) are explicitly allowed in Cumberland Gap, Tennessee, subject to strict permitting, regulatory, and compliance requirements. The town adopted its dedicated STR ordinance (Ordinance 3-2019) on August 5, 2019, establishing a framework for legal operation. All STRs must obtain a permit from the Board of Mayor and Aldermen before operating.

How to Start a Short-Term Rental Business in Cumberland Gap

Phase 1: Pre-Application

1. Verify Zoning Compliance: Confirm your property is located in an area zoned for STRs (Reference the Municipal Zoning Code and consult the Planning Commission if needed).
2. Review Ordinance Requirements: Thoroughly read Ordinance 3-2019 to understand all operational rules.

Phase 2: Permit Application 3. Submit Required Documentation (see full list below):

• Signed Certificate Application Form
• Pay application fees: $75 (owner-occupied) / $125 (non-owner-occupied)
• Proof of ownership, insurance, agency/rental agent, etc.

4. Schedule Inspections: Use the Short-Term Code Compliance Form to arrange building and fire safety inspections.

Phase 3: Post-Permit Compliance 5. Tax Registration:

• Register with the Tennessee Department of Revenue for sales tax.
• Set up recurring Hotel/Motel Tax payments (see Taxes section below).

6. Business Registration: Obtain a Town Business Tax Registration ($15) and County Business License.
7. Annual Renewal: Pay the $100 renewal fee and pass annual inspections.

Required Documents, Permits, Licenses, and Guidelines

| Requirement | Details | |----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------| | Short-Term Vacation Rental Certificate Application | Submit signed form with fees ($75/$125) via Application Form. | | Proof of Ownership | Deed, title, or equivalent ownership documentation. | | Proof of Agency/Rental Agent | Required if using a third-party manager. | | Proof of Insurance | Liability insurance covering STR operations. | | Concept Plan | Detailed operational plan (see ordinance Section 20-2-105(v)). | | Hotel/Motel Tax Registration | Register with Alice Alexander (Claiborne County Trustee) at 423-626-3275. | | Business Tax Registration | Submit Business Tax Registration Application ($15). | | County Business License | Obtain from Claiborne County Clerk’s Office. | | Sales Tax Registration | Register via TNTAP. | | Code Compliance Checklist | Schedule inspections using the Short-Term Code Compliance Form. | | Permit Renewal & Inspection Fee | Pay $100 annually for permit renewal and reinspection. |

Specific Regulations for Short-Term Rentals

Town of Cumberland Gap (Ordinance 3-2019)

• Permit Required: All STRs must obtain a permit from the Board of Mayor and Aldermen.
• Operational Rules:
  • Units must comply with fire safety, building codes, and health standards (verified via inspections).
  • Owners must maintain liability insurance.
  • Concept plans must detail occupancy limits, parking, waste management, and noise mitigation.
• Grandfathering: Units operating before August 5, 2019, may apply for a permit if they can prove tax compliance for 6+ months prior to the ordinance’s effective date.

Claiborne County (State Level Guidance)

• Business License: STRs must obtain a county business license from the County Clerk’s Office.
• Hotel/Motel Tax: STRs are subject to state and local hotel/motel taxes.
  • Tennessee State Tax: Set by the Tennessee Department of Revenue (typically 7% sales tax on accommodations).
  • Claiborne County Tax: 3% of gross receipts (payable to the County Trustee by the 10th monthly).
  • Town of Cumberland Gap Tax: 1% of gross receipts (payable to Town Hall by the 20th monthly).

Contact Information for Local Authorities

| Authority | Role | Contact | |--------------------------------|--------------------------------------|-----------------------------------------------------------------------------| | Town Hall | STR Permit Applications | Phone: 423-869-3860 | | Alice Alexander | Hotel/Motel Tax (County) | Claiborne County Trustee’s Office: 423-626-3275 | | Building Inspector | STR Code Compliance | Contact via Town Hall (423-869-3860) | | Fire Chief | Fire Safety Inspections | Contact via Town Hall (423-869-3860) | | MTAS (Municipal Code) | Legal/Permitting Guidance | Phone: 865-974-0411 |

Source Links

1. STR Checklist: Short-Term Rental Checklist
2. Ordinance: Ordinance 3-2019 (Short-Term Rentals)
3. Application Form: Certificate Application Form
4. Code Compliance: Short-Term Code Compliance Form
5. Business Tax: Business Tax Registration Application
6. Municipal Code (Combined): Full Municipal Code (includes STR regulations)
7. TNTAP (Sales Tax Registration): Tennessee Taxpayer Access Point

Critical Note:
STR operators must strictly adhere to all deadlines (e.g., monthly tax filings by the 10th/20th) and inspection schedules. Failure to comply may result in permit suspension, fines, or legal action. Always verify current regulations with Town Hall before making operational changes.