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Roane County adopts short-term rental rules; homeowners meeting tax compliance may be grandfathered
Summary
After multi-department work, the commission adopted regulations for permitting and operating short-term rentals. County attorney clarified that units that have paid required taxes (including hotel/motel taxes for six of the past 12 months) are grandfathered until sale, 30 months of nonuse, or a local violation.
The Roane County Commission voted to adopt regulations governing permitting and operation of short-term rental units countywide. The resolution followed cross-department work involving codes, the property assessor and the clerk's office; staff said the rules give the county enforcement tools and generate property-right changes and revenue through tax compliance.
County Attorney clarified the grandfathering rule for existing short-term rental operators: properties that have paid required taxes, including hotel/motel tax for six of the past 12 months, are grandfathered. The attorney said grandfathering remains in effect until the property is sold and transferred, until it ceases to be used as a short‑term rental for 30 continuous months, or until the operator violates local laws or regulations.
Commissioners and staff noted the resolution was the product of an ad hoc committee and that the county expects other jurisdictions to look to Roane County as a model. No formal list of currently grandfathered properties was provided during the meeting; staff said they would follow up on specific lease and tax questions raised during discussion, including lease terms for Caney (Caney) Creek Marina and campground.
