Pigeon Forge

City operational permit

Ordinance No. 2025-1183 defines short term rentals and requires operational permits issued by the Pigeon Forge fire department, and the commission passed it on first reading Sept 8, 2025 and second reading Sept 22, 2025.[3, 9] We could not read the ordinance text, so confirm the start date, application steps and who must hold the permit with the department.

Where rentals are allowed

The city says areas zoned to permit overnight rentals are R-2 and higher.[1] The zoning code defines a tourist residence as any dwelling unit used for overnight or weekly rental to tourists, and lists tourist residences as a permitted use in R-2 with a site plan approved by the planning commission.[2] The Building Department, which posts the overnight rental zoning note, is at 865-429-7312.[1]

R-1 permit

In R-1, only owners who were renting by Aug 13, 2018 and paid state rental taxes for at least 6 of the 12 months before that date are eligible.[2] The permit costs $300, renews for $100 a year and can't be transferred.[2] On an eligible property, a lessee can hold a non-owner-occupied permit if the owner signs the application and accepts legal responsibility.[2]

Business licenses

The city's license page lists a $15 city license from the Finance Department and a $15 county license from the Sevier County Clerk, plus a state tax ID for sales tax.[10] That page is undated, so confirm the fees.

Outside city limits

Sevier County requires an annual permit and a yearly inspection for every short-term rental outside city limits, while units inside city limits follow city rules.[8] The fee is $250 for units sleeping 12 or fewer, and $250 plus $25 per occupant for units sleeping 13 or more.[8] Apply online through CommunityConnect or by mail to the Fire Prevention office.[11]

Building size rules

In zones R-2 and higher, properties that could be used as overnight rentals need plans sealed by a Tennessee architect or engineer.[1] A residential building with more than 5 sleeping rooms, sleeping space for more than 12 occupants, more than 5,000 sq ft gross area including decks, or more than 3 stories must meet hotel and motel standards for sprinklers, exits and guardrails.[1]

Safety and contact rules

R-1 applicants file a life-safety affidavit for smoke alarms, a carbon monoxide detector within 15 feet of bedrooms and a working fire extinguisher.[2] You also name a contact who is available 24 hours a day and can respond in person within 45 minutes.[2]

City inspection checks

A local TV report on a Sept 3, 2025 city workshop says the fire department would check fire extinguishers, working smoke detectors and how close grills sit to buildings.[12] The city has not published its checklist on the pages we could read.

County inspection checks

County inspections cover fire safety, smoke alarms, escape routes, carbon monoxide detectors and electrical safety.[8] Owners get notice of an inspection at least two weeks ahead.[13]

State law protections

Tennessee's Short-Term Rental Unit Act lets a local government authorize rentals through a permit or application process with reasonable requirements.[14] It generally protects a unit that was already operating before a new local rule, unless the property is sold or transferred, goes unused for 30 or more continuous months, or breaks generally applicable local laws three times.[14]

City lodging tax

The city code levies a 2.5% privilege tax on occupancy, and it defines a hotel to include tourist cabins and any place that furnishes lodging to transients for a fee.[15] The city's Lodging Tax Form also shows a 2.5% rate.[5] Under the code, returns are due by the 20th of the following month.[15]

Sales tax

The state sales tax is 7%, and every Tennessee locality adds a local rate of up to 2.75%.[6] Sales tax applies to rentals of under 90 continuous days, and you file monthly by the 20th of the following month.[7] Check the state's local rate map for Sevier County's exact rate.

Booking platforms

A marketplace that meets the state's $100,000 sales threshold collects and remits sales tax on its bookings.[7] Since Jan 1, 2021, marketplaces also collect local occupancy tax and send it to the state, not to the city.[7] On direct bookings you handle the taxes yourself.

Gross receipts tax

The city's license page lists a 1% gross receipts tax on sales, due by the 20th of each month along with any lodging tax.[10] The state business tax applies at $100,000 or more in annual gross sales per jurisdiction.[7]

R-1 penalties

A violation of city or state law in an R-1 rental costs $50 a day.[2] Operating or advertising without a permit costs $50 per day per unit.[2]

Proposed fire permit fees

A news report on the first reading says the proposed fees were $100 per unit for inspections and $50 per day per unit for operating without a permit, and that the city indicated it won't charge fees for at least the first year of operation.[16] We could not confirm what the city finally adopted.

Life-safety failures

The same report quotes the city manager saying a rental that fails inspection for a non-safety reason can keep operating, but one with a life-safety problem can't until it is re-inspected.[16] That is a news report, not a published city rule.

County penalties

The county says owners who don't comply with its program may face fines or other penalties.[8] A third inspection and any later follow-up inspections cost $25 each.[8]

Revocation

The city can permanently revoke an R-1 permit for false information, a threat to public health or safety, the owner ceasing to own the property, 30 months of non-use, or three violations after appeals are exhausted.[2] State law has a similar three-violation rule.[14]