Tennessee Timeshare Owners Face Potential 60% Property Tax Increase Without Legislative Clarification

Tennessee timeshare owners could see property tax bills increase by as much as 60% unless state lawmakers act to clarify how timeshare properties are classified for taxation.

Currently, Tennessee law does not define whether timeshares should be taxed as residential or commercial property. While most counties assess timeshares as residential—consistent with how vacation ownership is taxed nationwide—some counties have begun reclassifying timeshares as commercial property. No other U.S. state taxes timeshares in this manner.

Industry advocates warn that inconsistent tax treatment could have far-reaching consequences for owners, resorts, and local economies across the state.

What’s at Stake

• Significant Tax Increases: Owners could face tax hikes of up to 60% or more if timeshares are taxed as commercial property.
• Unequal Treatment: Tennessee would become the only state to classify timeshares as commercial for property tax purposes.
• Economic Risk: Higher ownership costs could discourage future purchases, threatening more than 6,200 jobs and $65 million in annual tax revenue tied to the state’s timeshare and tourism economy.

Proposed Legislative Solution

The ARDA-ROC is advocating for legislation that would formally confirm timeshares should be taxed as residential property, consistent with national standards and long-standing practice in most Tennessee counties.

Advocates say clarifying the law would protect owners from sudden tax increases, ensure fairness across jurisdictions, and preserve the economic benefits timeshare resorts provide to local communities.

How Owners Can Get Involved

Timeshare owners are encouraged to visit the ARDA-ROC Action Center and sign up under “Become an Advocate.” Participants will receive guidance on how and when to contact elected officials, along with updates on legislative progress.

Supporters say a unified voice will be critical to keeping Tennessee competitive and maintaining fair tax treatment for timeshare ownership.