Overview: Are Short-Term Rentals Allowed in Kingsport, TN?

• Short-term rentals (STRs) are allowed in Kingsport, Tennessee. As of early 2025, the City of Kingsport does not have dedicated, city-specific short-term rental ordinances. Hosts must comply with Tennessee state laws (sales tax, safety/insurance standards, and, where applicable, business tax) and general city/county regulations (zoning, building codes, business licenses, standard housing/safety codes).
• Kingsport relies on its Zoning Ordinance (Chapter 114) and standard municipal codes to govern property uses. There is no evidence of a special “STR permit” or “STR license” specific to short-term rentals. Standard business licensing requirements apply.
• A note on occupancy taxes: Statewide occupancy tax (sometimes called a “transient lodging tax” or “room tax”) exists in some Tennessee jurisdictions but does not appear statewide. Whether Kingsport imposes a local occupancy tax is not confirmed in the sources provided; investors should verify with the City of Kingsport Finance Department and the appropriate county (Sullivan or Hawkins). If applicable, occupancy tax is separate from, and in addition to, state and local sales taxes.

How to Start a Short-Term Rental Business in Kingsport, TN

Step 1: Confirm zoning eligibility

• Confirm that short-term rental use is allowed in your property’s zoning district under Kingsport’s Chapter 114 Zoning Ordinance (including residential use, parking, and signage). If the property is in a residential district, ensure the STR activity aligns with the principal use, density, and parking standards.
• If your property is in a homeowner association (HOA), deed-restricted community, or planned development, obtain written confirmation that STRs are permitted. Private covenants can prohibit STRs even if the city does not.

Step 2: Prepare the property for safe operation

• Meet state safety requirements: functional smoke detectors, carbon monoxide detectors where applicable, and an accessible fire extinguisher. Maintain good property conditions per standard housing codes.
• Set reasonable occupancy limits aligned with life-safety standards and local norms (e.g., typically two people per bedroom plus two; common cap at 12 total guests unless noted otherwise by local fire codes).

Step 3: Secure business licenses

• Obtain a Kingsport city business license. Also obtain the applicable county business license where the property is located (Sullivan County or Hawkins County).
• Consider whether any additional municipal licenses are required for operating a rental unit; in most cases, the city business license suffices unless the city creates a special STR category in the future.

Step 4: Address tax compliance

• Tennessee State Sales Tax: Collect and remit the Tennessee state sales tax on your STR gross receipts. The published Tri-Cities guide notes 7% as of early 2025; always verify current rates.
• Local Sales Tax: In addition to state sales tax, you must collect and remit the applicable county local sales tax. Combined state+local rates vary by county and are remitted together through the Tennessee Department of Revenue.
• Business Tax: Depending on annual gross receipts, you may be subject to Tennessee Business Tax. If you use a property management company, they often handle registration and remittance for STRs they manage; if you self-manage, you are responsible for registering and filing. Confirm thresholds and classifications with the Tennessee Department of Revenue.
• Occupancy Tax (if applicable): If Kingsport or the county imposes a transient occupancy tax, ensure you register, collect from guests, and remit per local procedures.

Step 5: Insurance

• Maintain adequate liability insurance coverage. Industry practice often carries $500,000–$1,000,000 per occurrence. Verify if any city, county, or platform requires specific minimums.

Step 6: Platform considerations and taxes

• Platforms like Airbnb and VRBO are “Marketplace Facilitators” under Tennessee law and typically collect/remit certain taxes for bookings made through their platform (often state sales tax and local sales tax). You remain responsible for taxes they do not collect, such as business tax and possibly local occupancy tax. For direct bookings, you must handle all tax collection and remittance.

Step 7: Operational policies

• Publish clear guest rules for quiet hours, parking, trash, maximum occupancy, and emergency contacts. This reduces neighbor complaints and enforcement risk.

Required Documents, Permits, Licenses, and Guidelines

Business licensing

• City Business License (Kingsport)
• County Business License (Sullivan County or Hawkins County, depending on property location)
• Registration with Tennessee Department of Revenue (TNTAP) for state and local sales tax and business tax if required

Tax registrations and filings

• Sales and Use Tax (state and local): Register, collect, and remit monthly or quarterly
• Business Tax: Register if your gross receipts meet the state’s thresholds; confirm filing frequency and thresholds
• Occupancy Tax: Verify whether Kingsport or the county levies a local occupancy tax; register and remit as required

Property compliance

• Kingsport Zoning Ordinance (Chapter 114) compliance
• Standard housing codes: smoke and CO detectors, fire extinguisher
• Parking and signage requirements: adhere to zoning and neighborhood standards

Insurance

• Liability insurance (commonly $500k–$1M per occurrence)

Recordkeeping

• Guest registry, reservation records, income/expense logs, tax remittance reports

Operational policies and housekeeping

• House rules, safety instructions, local contacts

Specific Regulations for Short-Term Rentals (City, County, and State)

City of Kingsport (City-level)

• Zoning: Kingsport has no dedicated STR ordinance; STRs are governed by general zoning (Chapter 114). Confirm that rental activity is consistent with the property’s zoning and that parking, signage, and occupancy limits are observed.
• Licensing: A city business license is required.
• Taxes: No evidence of a city-specific occupancy tax. State sales tax and local county sales tax apply. Verify occupancy tax status with Finance.
• Noise, parking, and sanitation: Observe city ordinances and zoning conditions; always verify with Code Enforcement.

County level

• Sullivan County and Hawkins County: Hosts must obtain the county business license and comply with county sales tax requirements in addition to the state tax. No county-specific STR permits were identified, but verify occupancy tax status and rates with the county tax administrator.

State of Tennessee

• Short-Term Rental Definition: Any residential dwelling rented, in whole or part, for fewer than 30 consecutive days is considered a short-term rental.
• Safety and Insurance: Smoke alarms, CO detectors where applicable, fire extinguisher, and adequate liability insurance.
• Sales Tax: Collect and remit state sales tax (7% as of early 2025) plus applicable local sales tax; remit via TNTAP.
• Business Tax: Applies when annual gross receipts exceed state thresholds; verify classification and thresholds with the Tennessee Department of Revenue.
• Marketplace Facilitators: Platforms often collect/remit sales tax; hosts remain responsible for any taxes not collected by the platform, such as business tax and potential local occupancy tax.

Contact Information (Local Authority in Charge of STRs)

Use the following for licensing, zoning confirmation, tax registrations, and occupancy tax verification. Contact details change; always confirm current information on official sites.

City of Kingsport

• Website: kingsporttn.gov
• Business Licenses and General Business Questions: City Clerk/Finance Department. Search “Business License” on the city website.
• Planning and Zoning: Planning Department; reference Chapter 114 (Zoning) and zoning atlas.
• Code Enforcement (noise, parking, property standards): Codes Enforcement. Search “Code Enforcement” on the city website.

Tennessee Department of Revenue

• Website: tn.gov/revenue
• Online Registration and Filing: TNTAP portal (via tn.gov/revenue)
• Sales and Use Tax and Business Tax: “Taxes & Fees” sections and “Business Tax” pages

County (Sullivan County)

• Website: sullivancountytn.gov
• Business Licenses: County Clerk; search “Business License” on the county website
• Local Sales Tax and Occupancy Tax (if applicable): County Trustee/Revenue Administrator; confirm whether the county imposes a local occupancy tax and current rates

County (Hawkins County)

• Website: hawkinscountytn.gov
• Business Licenses: County Clerk; search “Business License” on the county website
• Local Sales Tax and Occupancy Tax (if applicable): County Trustee/Revenue Administrator; verify local taxes and any occupancy tax policies

Note: Specific phone numbers and direct email addresses for Kingsport Finance and Planning are not provided in the sources. Contact the city via the website’s phone directory or email forms; for the latest details, use the Finance Department and Planning/Zoning pages under “Departments.”

Links to Source Pages (IMPORTANT)

• Kingsport Zoning Ordinance (Chapter 114) [PDF]: www.kingsporttn.gov/wp-content/uploads/Zoning-Ch-114-Enacted-3-20-12-entirety.pdf
• Kingsport Municode (Official City Code): www.municode.com/Library/TN/Kingsport
• Tri-Cities, TN Home (2025 STR Guide—statewide and Tri-Cities overview): tri-citiestnhome.com/short-term-rental-tri-cities-tn/
• Summer (Kingsport STR overview and best practices): www.gosummer.com/vacation-rental-management/kingsport-tennessee
• Tennessee Department of Revenue (sales tax, business tax, TNTAP): www.tn.gov/revenue

Practical Checklist for Kingsport STR Investors

• Confirm zoning eligibility (Chapter 114) and HOA/deed restrictions
• Obtain city business license and applicable county business license
• Register with the Tennessee Department of Revenue for sales tax and business tax (if applicable)
• Verify whether a local occupancy tax applies in Kingsport or the county; register if needed
• Install/maintain safety equipment (smoke/CO detectors, fire extinguisher)
• Set occupancy limits and publish guest policies (quiet hours, parking, trash)
• Secure adequate liability insurance
• Configure your listings and accounting to ensure correct tax collection/remittance (platforms and direct bookings)
• Keep records of all registrations, licenses, and remittances

Final Notes

• Regulations evolve. Continue to verify tax rates, licensing procedures, and any new STR-specific local rules on official government websites.
• As of early 2025, the City of Kingsport does not appear to have dedicated STR zoning or permit requirements. If and when Kingsport enacts STR-specific rules, they will supersede general provisions.
• Always double-check with Finance/Revenue offices for tax rates, occupancy tax applicability, and filing frequencies.