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

Yes, short-term rentals are explicitly allowed in Oneida, Tennessee. The Town of Oneida has implemented specific regulations that recognize and tax short-term rentals, including those booked through platforms like Airbnb and VRBO. Oneida defines short-term rentals as residential dwelling units rented for less than 30 continuous days, and these operations are subject to local taxation and regulatory oversight.

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

Step 1: Understand Your Tax Obligations

Starting an STR in Oneida requires immediate compliance with the new lodging tax structure. As of April 2025, Oneida implemented a 4% hotel-motel tax that applies specifically to short-term rentals. This tax is in addition to existing state and county taxes, creating a total effective tax rate of 18.75% for lodgers within Oneida city limits.

Step 2: Register and Prepare Your Property

While Oneida hasn't implemented a specific permitting system like some larger Tennessee cities, operators must:

• Collect and remit all applicable taxes
• Ensure compliance with state-level safety requirements
• Maintain adequate insurance coverage
• Follow general municipal health and safety codes

Step 3: Market Responsibly

Structure your pricing to account for the combined tax burden that guests will pay. The total lodging tax rate in Oneida (18.75%) is higher than surrounding areas outside city limits (14.75%), which may impact your competitive positioning.

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Tennessee)

According to Tennessee's Short-Term Rental Unit Act and general state requirements:

Insurance Requirements:

• Maintain at least $500,000 in liability insurance (unless provided by the marketplace)
• Ensure proper property insurance coverage

Safety Equipment:

• Smoke alarms in every sleeping area
• Fire sprinklers where required
• Carbon monoxide alarms in every sleeping area
• Adequate on-site parking

Business Licensing:

• Valid Tennessee business license
• Scott County business license

Local Requirements (Oneida, TN)

Tax Registration:

• Register for tax collection and remittance
• Collect 4% Oneida lodging tax in addition to other applicable taxes
• Remit taxes according to state and local schedules

Specific Regulations for Short-Term Rentals

Municipal Regulations (Oneida, TN)

Tax Structure:

• 4% Oneida Lodging Tax - effective April 2025
• Applies to all short-term rentals under 30 days
• Must be collected from guests and remitted quarterly
• Revenue dedicated exclusively to tourism development

Total Tax Burden for Guests:

• Within Oneida city limits: 18.75% total (7% state sales tax + 2.5% local option sales tax + 5% Scott County lodging tax + 4% Oneida lodging tax)
• Outside Oneida city limits: 14.75% total (no Oneida tax)

County Regulations (Scott County, TN)

Existing County Tax:

• 5% Scott County lodging tax (grandfathered in from pre-2021)
• Funds broader industrial development efforts (not exclusively tourism)

State Regulations (Tennessee)

Short-Term Rental Unit Act (2018):

• Legacy Protection: Properties operating as STRs before local regulation enactment retain operating rights under previous rules
• Reasonable Regulations: Municipal requirements must be reasonable and obtainable
• Appeal Rights: Providers can challenge prohibition or excessive regulation through civil action

Statewide Requirements:

• Minimum 24-hour stay requirement
• Compliance with public health and safety regulations
• HOAs and property owners can prohibit STRs through covenants
• General business license requirements

Contact Information for Local Authority

Town of Oneida

Primary Contact: Virginia Bruce, Community Development Coordinator Official Website: www.townofoneida.com/ Tax Questions: Contact the Town of Oneida directly for lodging tax registration and remittance procedures

Scott County Government

For County Lodging Tax Issues: Contact Scott County Trustee's Office General Information: Scott County Courthouse

Tennessee State Resources

Municipal Technical Advisory Service (MTAS):

• Phone: (865) 974-0411
• Email: mtas@tennessee.edu
• Website: www.mtas.tennessee.edu/
• Provides guidance on municipal STR regulations and compliance

Tennessee Department of Revenue:

• Website: www.tn.gov/revenue/taxes/local-occupancy-tax.html
• Information on state lodging tax requirements

Important Source Links

• Town of Oneida Official Website: www.townofoneida.com/
• Independent Herald Article on Oneida Tax Implementation: www.indherald.com/p/oneida-implements-4-hotel-motel-tax
• STRisker Regulatory Bulletin for Oneida, TN: writing.strisker.com/strisker-bulletin-oneida-tn/
• MTAS Summary of Tennessee Short-Term Rental Unit Act: www.mtas.tennessee.edu/reference/summary-short-term-rental-unit-act
• RedAwning Market Overview (includes general TN STR regulations): www.redawning.com/property-management/market-overview/oneida-tennessee
• Tennessee Department of Revenue - Local Occupancy Tax: www.tn.gov/revenue/taxes/local-occupancy-tax.html

Investment Note: Oneida's new lodging tax is expected to generate approximately $6,000 annually according to town officials. The implementation represents Oneida joining the broader Tennessee trend of utilizing lodging taxes for tourism development, with the tax specifically targeting overnight visitors rather than local businesses or residents.