🎯STRisker: Bulletin - Oneida, TN
New Tax Means STR Guests in Oneida Will Help Foot the Tourism Bill
A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.
New Tax Means STR Guests in Oneida Will Help Foot the Tourism Bill
The Town of Oneida is the latest Tennessee town to jump on the tourism tax train — and yes, that includes short-term rentals. As of April, the town officially passed an ordinance establishing a 4% hotel-motel tax, which applies not only to traditional hotels and motels but also to Airbnb, VRBO, and all other short-term rental stays under 30 days.
According to Virginia Bruce, the town’s Community Development Coordinator, the new tax is expected to reel in around $6,000 annually — money that had previously been “left on the table.” But here's the key twist: every penny of that tax revenue must go toward tourism development, thanks to Tennessee’s statewide rules. That means better marketing, improved visitor experiences, and potentially more travelers — who will help cover the bill themselves.
“This is a tax paid by visitors who spend the night in our hotels or short-term rentals,” Bruce emphasized. So, for locals who host STRs or run hospitality businesses, this is not a tax hike on your profits — it's passed directly on to the guests.
With the addition of Oneida’s new tax, overnight guests in town will now face a combined 18.75% lodging-related tax. That includes state and local sales taxes, the existing 5% Scott County lodging tax, and the new 4% town lodging tax. In contrast, STRs outside Oneida city limits will charge a total of 14.75%.
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This move aligns with broader trends across Tennessee. Most municipalities already leverage lodging taxes to help fund tourism initiatives — a practice reinforced by a 2021 state law that gave every city in Tennessee the green light to charge up to 4% in lodging taxes. Oneida’s neighbors in Scott County have long had such a tax, though their funds are spread more broadly, including industrial development.
By targeting overnight stays, the town ensures that tourism development is being funded by tourists themselves.
So whether it’s a weekend in an Airbnb or a family reunion booked through VRBO, short-term rental guests in Oneida will now be chipping in to help the town shine.
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