(Based solely on the municipal code excerpt you supplied and the statutory references it contains.)

1. Overview – Are Short‑Term Rentals Allowed?

Explicit answer: Yes – short‑term rentals are allowed in Carthage, Tennessee.

The Carthage Municipal Code (the most recent version you provided is Change 4, June 27, 2013) contains no specific prohibition against renting residential property for periods of less than 30 days. The only relevant provisions are the general‑business‑license requirements (Title 5, Chapter 3) and the fire‑code compliance rules (Title 7). Because a short‑term‑rental operation is a commercial activity, it must obtain the same business privilege license that any other “vocation, occupation, or business” must have, and it must satisfy all fire‑ and building‑safety standards that apply to lodging facilities.

Bottom‑line: If you obtain the required business license, meet zoning (Title 14, referenced but not detailed in the excerpt), and comply with the fire code and any applicable building‑code permits, you may operate a short‑term rental in Carthage.

2. How to Start a Short‑Term Rental Business in Carthage

| Step | What to Do | Why It Matters (Code‑Reference) | |------|------------|---------------------------------| | 1. Verify Zoning Eligibility | Confirm that the property is located in a zoning district that permits lodging or short‑term rental uses. Zoning is covered in Title 14 (referenced in the Table of Contents). | Title 14 is the authority that decides which land uses are allowed; you must be in a compatible zone. | | 2. Secure a Business Privilege License | Apply for the privilege license required by Title 5‑302. The City Recorder (Sara Davenport) issues the license after the privilege tax (Title 5‑301) is paid. | Any “vocation, occupation, or business” that is taxable by the municipality must hold a current privilege license. | | 3. Pay the Annual Privilege Tax | The privilege tax is levied at the maximum rate allowed by Tennessee law (Tennessee Code Annotated § 67‑4‑701 et seq., referenced in Title 5‑301). | Failure to pay eliminates the legal right to operate. | | 4. Obtain any Required Building Permits / Inspections | If you plan structural changes, additions, or changes of use, a building permit must be obtained from the Building Department (Title 12). The property must pass a Certificate of Occupancy (CO) inspection. | Short‑term rentals are “lodging facilities” and must meet all building‑code standards for habitable space, egress, fire safety, etc. | | 5. Meet Fire‑Code Requirements | Ensure compliance with the Fire Code (Title 7). The town’s fire district is defined as the entire corporate limits (Title 7‑101). Install smoke detectors, fire extinguishers, emergency egress lighting, and any other equipment mandated by the fire‑code provisions (Title 7‑2). | Failure to meet fire‑code standards can result in citations or closure. | | 6. Register for State‑Level Taxes | Tennessee levies sales tax (≈ 7 %) and a hotel‑occupancy tax on rentals of < 30 days (Tennessee Code Annotated §§ 67‑6‑101, 103). Register with the Tennessee Department of Revenue (TDR). | Required by state law for all transient‑accommodation businesses. | | 7. Comply with County Taxes | Smith County may impose an additional occupancy tax (county‑level; not detailed in the municipal code). Contact the Smith County Tax Collector’s Office for the current rate and filing procedures. | Most Tennessee counties charge a modest occupancy tax on short‑term stays. | | 8. Obtain Insurance | Purchase general liability and property‑damage insurance covering short‑term rentals. While not codified in the municipal code, it is a standard requirement for lenders and for protecting the business. | Provides financial protection and satisfies most platform (Airbnb, Vrbo) requirements. | | 9. Ongoing Compliance | • Renew the privilege license annually (Title 5‑302). <br>• File state sales‑tax and occupancy‑tax returns each reporting period. <br>• Keep fire‑safety equipment inspected as required by the fire marshal. | Ongoing compliance avoids fines or revocation of the license. |

3. Required Documents, Permits, Licenses & Guidelines

| Document / Permit | Issuing Authority | Code / Statute | Key Requirement | |-------------------|-------------------|----------------|-----------------| | Business Privilege License | City Recorder (Sara Davenport) | Title 5‑302 | Must be posted at the rental property; renewed yearly. | | Privilege Tax Payment | City Recorder / Town Treasurer | Title 5‑301 (max. rate per TCA § 67‑4‑701) | Pay the amount determined by the town’s tax schedule. | | Building Permit (if alterations) | Building Department (Title 12) | Title 12 (Building & Housing Codes) | Required for structural changes, new egress, or changes of use. | | Certificate of Occupancy (CO) | Building Department | Title 12 (CO issuance) | Verifies the unit meets habitability & safety standards. | | Fire‑Code Compliance Checklist | Fire Department / Fire Marshal (Title 7‑2) | Title 7‑2 (Fire Code) | Smoke detectors, fire extinguishers, emergency lighting, egress routes. | | Zoning Approval / Determination | Planning & Zoning (Title 14) | Title 14 (Zoning) | Confirms the property is in a zone that permits lodging/STR. | | State Sales‑Tax Registration | Tennessee Department of Revenue | TCA § 67‑6‑101 | Required to collect & remit sales tax on nightly rates. | | State Hotel‑Occupancy Tax Registration | Tennessee Department of Revenue | TCA § 67‑6‑103 | Required to collect & remit the 5 % state occupancy tax (applies to stays < 30 days). | | County Occupancy Tax (if applicable) | Smith County Tax Collector | County ordinance (outside municipal code) | Usually a modest per‑night surcharge (varies by county). | | Insurance Policy (General Liability, Property) | Private insurer (no statutory citation) | Standard business practice | Proof of coverage may be required by platforms and financing entities. |

4. Specific Regulations – City, County & State

4.1. City of Carthage (Municipal Code)

| Regulation | Code Section | Summary | |------------|--------------|---------| | Business Privilege License | Title 5‑302 | Any business operating in the town must obtain a current privilege license from the City Recorder. | | Privilege Tax | Title 5‑301 | The town levies an annual privilege tax at the maximum rate permitted by Tennessee law on all taxable businesses. | | Fire District | Title 7‑101 | The entire corporate limits constitute the fire district; all lodging facilities must meet the fire‑code requirements. | | Fire Code | Title 7‑2 (Fire Code) | Standards for fire‑safety equipment, egress, and emergency procedures apply to any building used for sleeping accommodations. | | Building & Housing Codes | Title 12 (referenced) | Requires building permits for construction or alteration and a Certificate of Occupancy for any change of use. | | Zoning | Title 14 (referenced) | Zoning ordinances determine land‑use compatibility; STRs must be located in a zone that permits lodging or residential‑commercial use. | | Penalties & Enforcement | Title 6‑101‑108 (Police & Arrest) | Violations of municipal ordinances may be prosecuted; non‑compliance can result in fines or closure. |

There is no dedicated “short‑term‑rental” ordinance in the provided code excerpt.

4.2. Smith County

The municipal code does not contain county‑level rules. Smith County typically levies an occupancy tax on transient stays (often 2 %–4 %). Investors should verify the current county rate and filing procedures with the Smith County Tax Collector (phone/email not provided in the excerpt).

4.3. State of Tennessee

| Statute | Relevance to STRs | |--------|-------------------| | TCA §§ 67‑6‑101 & 67‑6‑103 | Impose sales tax (~7 %) and a state hotel‑occupancy tax (5 % on gross receipts) on rentals of fewer than 30 days. | | TCA §§ 67‑4‑701 et seq. (Business Tax Act) | Establishes the framework for municipal privilege taxes that Carthage levies on all businesses, including STRs. | | TCA § 8‑50‑107 (Residency requirement for municipal employees) | Not directly applicable to STR operators, but illustrates state‑level municipal provisions. | | TCA § 6‑55‑201‑206 (Delinquent property tax collection) | If property taxes become delinquent, the town can pursue collection under state law. | | Tennessee Fire Code (adopted by reference in municipal code) | Mandates fire‑safety equipment and egress standards for lodging facilities. |

Key point: State law treats short‑term rentals as “transient accommodations,” requiring sales‑tax registration and occupancy‑tax filing with the Tennessee Department of Revenue. No state‑level registration for STRs exists (as of the latest code update), but compliance with tax statutes is mandatory.

5. Contact Information – Local Authority in Charge of STRs

| Office | Individual | Role / Responsibility | Contact (as available in code) | |--------|------------|-----------------------|--------------------------------| | Town Hall / City Recorder | Sara Davenport | Issues privilege licenses, collects privilege tax, maintains municipal records. | Address: Town Hall, Carthage, TN <br>Phone & email not listed in the code. | | Mayor | Sebra Hodge | Chief executive officer; can provide policy guidance or sign ordinances. | Phone & email not listed. | | City Attorney | David Bass | Legal counsel; can advise on zoning or fire‑code interpretations. | Phone & email not listed. | | Fire Department / Fire Marshal | (Not named in excerpt) | Enforces Fire Code (Title 7‑2) and conducts inspections for lodging facilities. | Phone & email not listed. | | Building Department | (Not named in excerpt) | Issues building permits and Certificates of Occupancy (Title 12). | Phone & email not listed. | | Smith County Tax Collector | (Not named in excerpt) | Administers county occupancy tax on transient stays. | Contact details not provided in the code. |

Note: The municipal code you supplied does **not include phone numbers