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

Yes, short-term rentals are allowed in Norris, Tennessee, but they are subject to strict regulation and zoning restrictions. The city has implemented a comprehensive regulatory framework that allows STRs while limiting their impact on residential neighborhoods. As of the latest regulations, short-term rentals are only permitted in commercial zones (C-1, C-2), professional districts (P-1), and scenic/highway districts (S-1). They are prohibited in residential zones (R-1, R-2, and FAR zones), including the historic original residential areas of the town.

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

Starting a short-term rental business in Norris requires navigating a multi-step regulatory process. Here's a comprehensive guide:

Step 1: Verify Zoning Compliance

Before proceeding with any other steps, confirm your property is located in an approved zoning district. STRs are only permitted in:

• C-1 Commercial District
• C-2 Commercial District
• P-1 Professional and Civic District
• S-1 Scenic and Highway District

STRs are explicitly prohibited in:

• R-1 Residential District
• R-2 Residential District
• FAR (Forestry/Agriculture/Residential) Zone

Step 2: Obtain Required Permits and Licenses

1. Apply for City STR Permit through the Office of the City Manager
2. Obtain Anderson County Business License
3. Obtain Norris City Business License
4. Register for Hotel-Motel Tax (Tennessee State Tax)

Step 3: Designate a Local Agent

You must designate a Short-Term Rental Agent who:

• Is over 21 years old
• Lives within two hours travel time of the property
• Can respond to issues within 2 hours of notification
• Meets all local and state regulatory requirements

Step 4: Property Preparation

• Ensure property meets all housing, building, health, and safety codes
• Provide adequate on-site parking (no parking on vegetated areas)
• Limit to maximum 3 sleeping rooms
• Post required information within the unit

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements

Short-Term Rental Permit Application must include:

• Owner and agent contact information (name, address, phone, email)
• Business license number
• Hotel-Motel tax registration number
• Concept plan showing property layout, buildings, parking, and guest access
• Narrative description including:
  • Area available for rental
  • Number of sleeping rooms (maximum 3)
  • Maximum occupancy calculation
  • Days of operation
  • Trash management plan
• Proof of insurance on the dwelling unit

Fees:

• Owner-occupied STR: $75 application fee
• Non-owner occupied STR: $125 application fee
• Annual renewal and inspection: $100
• Reinstatement fee (if suspended): $50

State and County Requirements

Business Licenses:

• Anderson County Business License
• Norris City Business License

Tax Registration:

• Hotel-Motel Occupancy Tax Registration (T.C.A. §67-4-1401 et seq.)

Specific Regulations for Short-Term Rentals

Operational Standards

Occupancy Limits:

• Maximum 3 sleeping rooms per STR
• Maximum occupancy calculated as:
  • 2 persons per sleeping room (up to 140 sq ft)
  • For rooms over 140 sq ft: area divided by 70 sq ft
• Occupancy maximum must be posted conspicuously within the unit
• No rentals for periods less than 24 hours

Property Requirements:

• Only primary or secondary dwelling units permitted (no garages, barns, or sheds)
• Must comply with all applicable zoning, housing, building, health, electrical, gas, plumbing, and life safety codes
• Adequate on-site parking as determined by the City
• No parking on vegetated areas
• Name and phone number of owner or agent posted within unit

Conduct Requirements:

• Occupants must abide by all applicable noise restrictions
• Compliance with waste management provisions
• Agent must respond to issues within 2 hours
• No compensation permitted for periods less than 24 hours

Tax Obligations

Required Tax Collection and Remittance:

• Hotel-Motel Tax (state and local)
• Sales Tax (if applicable)
• All other taxes required by state law and Norris City Code

Enforcement and Penalties

Violations and Enforcement:

• Civil penalty: $50 per violation
• Each day of violation constitutes separate offense
• Three documented violations within 12-month period can result in permit revocation
• Permits are non-transferable to new locations or owners

Grandfathered Properties: Properties operating as STRs before the ordinance may continue as "legacy properties" but must still obtain permits and comply with generally applicable laws. Legacy status can be lost if:

• Property is sold or transferred
• Property ceases STR use for 30+ continuous months
• Three or more violations of generally applicable laws

Contact Information for Local Authority

Primary Contact:

• Office of the City Manager
• Location: Norris City Hall
• Address: Norris, TN 37728
• Phone: [Contact city hall for current number]
• Email: [Contact city hall for current email]

Key Departments:

• City Manager's Office: STR permit applications and enforcement
• Building Inspector: Code compliance inspections
• Fire Marshal: Safety code compliance
• Planning Commission: Zoning compliance and updates

Additional Contacts:

• Anderson County Clerk: Business license applications
• Anderson County Health Department: Health permits and inspections
• Tennessee Department of Revenue: State tax registration

Links to Source Pages

Primary Regulatory Documents

1. Norris City Ordinance 624 - Complete STR regulations

   • www.wate.com/wp-content/uploads/sites/42/2022/01/ordinance_624_short_term_rentals_10-11-21.pdf

2. Original STR Ordinance News Article - Implementation details and city council decisions

   • mycouriernews.com/articles/2022/03/5617/norris-council-approves-short-term-rental-measure

3. Zoning Restrictions Article - Commercial zone restrictions

   • mycouriernews.com/articles/2022/11/6422/norris-council-votes-for-zoning-restrictions-on-short-term-rentals

Legal Precedent and Context

4. Tennessee Supreme Court Ruling - STR legality in HOA communities

   • www.knoxnews.com/story/news/local/2024/03/05/tennessee-town-airbnb-dispute-ends-with-short-term-rental-ruling/72842624007/

5. HOA Legal Analysis - Community association STR regulations

   • www.cedarmanagementgroup.com/decision-on-vacation-rentals/

Important Note for Investors: The regulatory landscape for short-term rentals in Norris is actively evolving. The city has demonstrated a willingness to modify regulations as needed, as evidenced by the subsequent zoning restrictions implemented after the initial ordinance. Potential investors should verify current regulations with the City Manager's office before making property acquisition decisions, as zoning restrictions significantly limit available properties for STR use.