Proposed amendment expands the rental district in Chattanooga

CHATTANOOGA, Tenn. (WDEF) – A proposed amendment to the short-term vacation rental ordinance expands the rental district in Chattanooga.

The changes were on Chattanooga City Council’s agenda Tuesday and have passed the first reading.

Councilperson Chip Henderson said the amendment expands where rentals are allowed to parts of Amnicola, Glenwood, and up the side of Missionary Ridge.

The amendment will also make it where you can apply for a permit without a business license, but a business license will still be needed to operate rentals.

And it will allow third parties, like Airbnb, to collect and remit taxes associated with rentals.

“This is certainly an industry that’s not going away.  It’s here to stay.  It has become very popular over the last few years.  It’s something that brings in a tremendous amount of revenue into the city, and we want to be able to make sure people are operating those short term rentals in a way that’s appropriate for those that are coming to visit,” Councilperson Henderson said.

A final vote on the changes is currently slated for the next council meeting.