Tennessee Code Title 67, Chapter 4, Part 7 (Business Tax Act - county clerk business licensing, the mechanism for individual/GP trade-name registration) - Lexis guided capture 2026-08-02 Sections: 40 ====================================================================== Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-701. Short title — Nature of tax — Legislative intent. (a) This part shall be known and may be cited as the “Business Tax Act” and the taxes imposed by this part shall be in addition to all other privilege taxes. (b) It is the legislative intent that the taxes imposed by this part shall be in lieu of any or all ad valorem taxes on the inventories of merchandise held for sale or exchange by persons taxable under this part. (c) It is the legislative intent, within the framework of this part, to recognize that there are limitations upon state taxation imposed by the constitutions of the United States and of this state and not to impose the tax where prohibited by the constitutions; but it is intended to impose that tax to the extent permitted under such constitutions and the words of imposition used in this section. History Acts 1971, ch. 387, §§ 1, 21; 1972, ch. 850, § 1; T.C.A., §§ 67-5801, 67-5820; Acts 1984, ch. 832, § 26. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-702. Part definitions. (a) As used in this part, unless the context otherwise requires: (1) “Affiliated business entity” means a business entity: (A) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (B) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (C) In which a person described in subdivision (a)(1)(B) directly or indirectly has more than fifty percent (50%) ownership interest. For purposes of this subdivision (a)(1)(C), a noncorporate entity is more than fifty-percent owned if upon liquidation more than fifty percent (50%) of the assets of the noncorporate entity directly or indirectly accrue to the entity having the ownership interest; (2) “Business” includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. “Business” does not include occasional and isolated sales or transactions by a person not routinely engaged in business. “Business” does not include an individual property owner who utilizes a property management company to manage a vacation lodging for overnight rentals; provided, however, that “business” shall include any other activity of such individual property owner that is subject to any tax levied by this part; (3) “Commissioner” means the commissioner of revenue or the commissioner's duly authorized assistants, except as otherwise provided in this part; (4) “Department” means the department of revenue, except as otherwise provided in this part; (5) “Dominant business activity” means the business activity that is the major and principal source of taxable gross sales of the business; (6) “Fabricating or processing tangible personal property for resale” includes only tangible personal property that is fabricated or processed for ultimate use or consumption off the premises of the one engaging in such fabricating or processing; (7) “Gross sales” means the sum total of all sales under this part as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this part; (8) “Individual property owner” means a person who owns a vacation lodging; (9) “Inventories of merchandise held for sale or exchange” includes tangible personal property held by a merchant or business for lease or rental, but does not include such property in the possession of a lessee; (10) “Lease or rental” means the leasing or renting of tangible personal property and the possession or use of the property by the lessee or renter for a consideration, without transfer of the title of such property; (11) “Natural gas marketer” means any business that is not regulated as to rates and services by the Tennessee public utility commission; that provides natural gas to customers located within this state through the procurement and shipping or transportation of such natural gas, and any ancillary services thereto; and that is required by the Federal Energy Regulatory Commission to take title to the natural gas, pursuant to Federal Energy Regulatory Commission Order No. 636-A, 57 Fed. Reg. 36128 (1992), in connection with the sale of such gas to its customers; (12) “Overnight rentals” means rental of a vacation lodging to one (1) or more individuals for temporary human lodging not to exceed a period of one hundred eighty (180) consecutive days; provided, however, that a tenancy or lease to an individual who has no other place of residence or abode during the lease period to which such individual may return after the lease terminates is not “overnight rentals”; (13) “Person” includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number; (14) “Property management company” means a person who, for consideration, manages a vacation lodging for an individual property owner that provides such lodging for a rental fee to consumers; (15 ) “Resale” means a subsequent, bona fide sale of the property, services or taxable item by the purchaser. “Sale for resale” means the sale of the property, services, or taxable item intended for subsequent resale by the purchaser. Any sales for resale shall, however, be in strict compliance with rules and regulations promulgated by the commissioner. Sales of tangible personal property or taxable services made by a dealer to an out-of-state vendor who directs that the dealer act as the out-of-state vendor's agent to deliver or ship tangible personal property or taxable services to the out-of-state vendor's customer, who is a user or consumer, are sales for resale; (16) “Retail sale” or “sale at retail” means any sale other than a wholesale sale; (17) “Retailer” means any person primarily engaged in the business of making retail sales. For purposes of this subdivision (a)(17), “primarily” means that at least fifty percent (50%) of the taxable gross sales of the business are retail sales; (18) (A) (i) “Sale” means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property; (ii) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price is deemed a sale; (iii) “Sale” includes the furnishing of any of the things or services taxable under this part; (B) “Sale” does not include the transfer of tangible personal property from a wholesaler to another wholesaler or from a retailer to another retailer where the amount paid by the transferee to the transferor does not exceed the transferor's cost including freight in and storage costs, and transportation costs incurred in the transfer from the transferor to the transferee; (19) “Sales price” means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that “sales price” does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether such additional consideration shall be known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it shall be known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract. “Sales price” for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service. “Sales price” does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of such payment is retained as profit by the auctioneer, and when such payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller; (20) (A) “Seller” means every consignee, bailee, factor or auctioneer having either actual or constructive possession of tangible personal property, or having possession of the documents of title to tangible personal property, with power to sell such tangible personal property in the consignee's, bailee's, factor's or auctioneer's own name and actually so selling, is deemed the seller of such tangible personal property within the meaning of this part; and further, the consignor, bailor, principal or owner is deemed the seller of such tangible personal property to the consignee, bailee, factor or auctioneer; (B) The burden shall be upon the taxpayer in every case to establish the fact that the taxpayer is not engaged in the business of selling tangible personal property, but is acting merely as broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer's accounting records are kept in such manner as the commissioner shall by regulation provide; (21) “Services” means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever. “Services” does not include sales of tangible personal property; (22) (A) “Substantial nexus in this state” means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part. Such connection includes, but is not limited to, any of the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or (iv) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012, exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012, exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012, exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer; (B) Notwithstanding subdivision (a)(22)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a “substantial nexus in this state.” For these purposes, whether a company has income effectively connected with a United States trade or business shall be determined in accordance with the Internal Revenue Code; (23) “Tangible personal property” means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. “Tangible personal property” does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; (24) “Transient vendor” means any person who brings into temporary premises and exhibits stocks of merchandise to the public for the purpose of selling or offering to sell the merchandise to the public. “Transient vendor” does not include any person selling goods by sample, brochure or sales catalog for future delivery; or to sales resulting from the prior invitation to the seller by the owner or occupant of a residence. For purposes of this definition, “merchandise” means any consumer item that is or is represented to be new or not previously owned by a consumer, and “temporary premises” means any public or quasi-public place, including a hotel, rooming house, storeroom, building or part of a building, tent, vacant lot, railroad car or motor vehicle that is temporarily occupied for the purpose of exhibiting stocks of merchandise to the public. Premises are not temporary if the same person has conducted business at those premises for more than six (6) consecutive months or has occupied the premises as the person's permanent residence for more than six (6) consecutive months; (25) “Vacation lodging” means real property, other than the primary and regular residence or abode of an individual property owner, that is utilized, or can be utilized, for overnight rentals in the absence of the individual property owner; (26) (A) “Wholesale sale” or “sale at wholesale” means any sale to a retailer for resale; (B) “Wholesale sale” or “sale at wholesale” includes the sale of industrial materials for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials become a component part of the finished product. This subdivision (a)(26)(B) shall not apply to raw or unprocessed agricultural products; (C) “Wholesale sale” or “sale at wholesale” includes the sale by a wholesaler of tangible personal property to the state of Tennessee or any county or municipality or subdivision thereof, or the sale to any religious, educational or charitable institution as defined in § 67-6-322; and (D) “Wholesale sale” or “sale at wholesale” includes the sale by a franchised motor vehicle dealer to a manufacturer or distributor of motor vehicles or an obligor under an extended service contract of parts or repair services, or both, necessary for repairs performed by the dealer under the manufacturer's, distributor's or obligor's warranty, and also includes predelivery inspection charges paid to a franchised motor vehicle dealer by a manufacturer or distributor of the motor vehicle; and (27) “Wholesaler” means any person primarily engaged in the business of making wholesale sales. For purposes of this subdivision (a)(26), “primarily” means that more than fifty percent (50%) of the taxable gross sales of the business are wholesale sales. (b) In any county where a metropolitan government prevails, the general services district constitutes the county and the urban services district, as well as any incorporated towns therein, constitutes the municipalities insofar as this part is concerned. History Acts 1971, ch. 387, §§ 2, 4, 22; 1972, ch. 850, §§ 2, 4; 1982, ch. 844, § 1; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., §§ 67-5802, 67-5804, 67-5821; Acts 1984, ch. 563, § 1; 1986, ch. 699, § 1; 1988, ch. 726, § 1; 1988, ch. 941, §§ 1, 3; 1990, ch. 1075, §§ 4, 5; 2000, ch. 920, § 1; 2001, ch. 224, §§ 1, 2; 2001, ch. 386, § 1; 2004, ch. 592, §§ 11, 12; 2004, ch. 924, §§ 8, 15; 2009, ch. 530, § 69; 2014, ch. 942, § 1; 2015, ch. 514 § 3; 2017, ch. 94, § 82. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-703. Authority of commissioner — Rights and remedies of persons subject to taxes — Discretion of commissioner to transition administration of part from local to state level. (a) The commissioner is authorized to collect and administer the taxes levied by this part. In collecting and administering these taxes, the commissioner shall have all of the powers and duties specified in § 67-1-102 and in chapter 1, parts 13 and 14 of this title. (b) Any person subject to the taxes collected and administered by the commissioner under this part shall be entitled to the rights and remedies set out in § 67-1-110 and in chapter 1, part 18 of this title. (c) For the period July 1, 2013, through December 31, 2014, the commissioner shall have broad discretion to transition the administration of this part from the local to the state level. History Acts 1971, ch. 387, §§ 17, 23; T.C.A., §§ 67-5817, 67-5822; Acts 2009, ch. 530, § 70; 2013, ch. 313, § 2. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-704. Levy of state sales tax for privilege of making sales by engaging in any vocation, occupation, business or business activity — Tax on receipts from sales by direct-to-home satellite television programming services exempt. (a) Except as otherwise provided in § 67-4-710, the making of sales by engaging in any vocation, occupation, business, or business activity enumerated, described, or referred to in § 67-4-708(1)-(5) is declared to be a privilege upon which a state tax is levied at the rates fixed and provided in § 67-4-709. (b) Notwithstanding subsection (a) or any other provision to the contrary, the tax provided for in this section shall not be imposed on receipts from sales of any services or tangible personal property made by a provider of direct-to-home satellite television programming services. History Acts 1971, ch. 387, § 2; 1972, ch. 850, § 2; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., § 67-5802; Acts 2009, ch. 530, § 71; 2013, ch. 313, § 3. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-705. Levy of local privilege tax for making sales by engaging in any vocation, occupation, business or business activity — Election to continue imposition of tax — Levy of tax by ordinance — Tax on receipts from sales by direct-to-home satellite television programming services exempt. (a) The making of sales by engaging in any vocation, occupation, business, or business activity enumerated, described, or referred to in § 67-4-708(1)-(4) is declared to be a privilege upon which each incorporated municipality in which the vocation, occupation, business, or business activity is carried on, by ordinance of its governing body, may levy a privilege tax at the rates fixed and provided in § 67-4-709. The tax imposed by this subsection (a) shall be collected by the commissioner in the same manner as the tax imposed by § 67-4-704. (b) Notwithstanding subsection (a) or any other provision to the contrary, every incorporated municipality levying such tax as of January 1, 2014, shall be deemed to have made an effective election to continue the imposition of such tax at the same rate that was in effect on such date and shall not be required to pass any additional ordinance. Any incorporated municipality that elects after January 1, 2014, to levy the tax authorized by this section, or elects to change the rate of tax imposed by the municipality, must levy such tax at the rates fixed and provided in § 67-4-709. Every municipality that levies the tax described in subsection (a) is authorized to repeal such tax by ordinance of its governing body. (c) The making of sales by engaging in any vocation, occupation, business, or business activity enumerated, described, or referred to in § 67-4-710 is declared to be a privilege upon which each county or incorporated municipality, or both, in which the business, business activity, vocation, or occupation is carried on, by ordinance of its governing body, may levy a privilege tax at the rates fixed and provided in § 67-4-710. (d) Notwithstanding subsection (a) or any other provision to the contrary, no incorporated municipality shall impose the tax provided for in this section on receipts from sales of any services or tangible personal property made by a provider of direct-to-home satellite television programming services. History Acts 1971, ch. 387, § 3; 1972, ch. 850, § 3; T.C.A., § 67-5803; Acts 2013, ch. 313, § 4. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-706. Registration of persons subject to taxes for purposes of filing returns and paying taxes — Designation of entity responsible for registrations. (a) For purposes of filing the returns required by § 67-4-715 and paying the taxes levied by §§ 67-4-704 and 67-4-705, every person taxable under §§ 67-4-704 and 67-4-705 shall, prior to engaging in business as defined in § 67-4-702, register with the commissioner or the county clerk, in the case of businesses located within the county, and with the commissioner or the appropriate city official, in the case of businesses located within the incorporated municipality. Any person that is subject to the tax levied by § 67-4-704 but has no established physical location, outlet, or other place of business in the state shall register with the commissioner for purposes of this section. (b) Any metropolitan government that has levied the taxes authorized by this part may, by resolution of its legislative body, designate the county clerk as the entity responsible for the registration of businesses for the entire metropolitan area. (c) Subsection (a) notwithstanding, every person described in § 67-4-708(5) and taxable under § 67-4-709(5) shall, prior to engaging in business as defined in § 67-4-702, register with the commissioner in a manner prescribed by the commissioner. History Acts 1971, ch. 387, § 2; 1972, ch. 850, § 2; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., § 67-5802; Acts 1990, ch. 962, § 2; 2009, ch. 530, § 72; 2013, ch. 313, § 5. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-707. Bond for certain foreign businesses. (a) Persons described in § 67-4-708(4)(A) who are domiciled in a state other than this state shall, upon making application for a business tax license, execute and file a bond to, or establish an escrow account with, the county or municipality. Such bond shall be executed by two (2) good and sufficient sureties, approved by the county or municipal clerk, or by a surety company duly authorized to do business in this state. Such bond or escrow account shall be in an amount sufficient to pay such person's anticipated business tax liability for the balance of the tax period for which such license applies, such liability to be determined by the county or municipal clerk, and may be called by the state in the event of failure by such person to pay such tax as may be due. (b) Notwithstanding subsection (a), any county or municipality may, but shall not be required to, enter an agreement with the commissioner pursuant to which the bond or escrow account required by subsection (a) will be filed with the commissioner rather than the county or municipality. History Acts 1971, ch. 387, § 6; 1972, ch. 850, § 6; 1977, ch. 328, §§ 1, 2; 1978, ch. 714, § 4; 1978, ch. 781, § 1; 1979, ch. 325, § 1; 1981, ch. 308, § 1; 1983, ch. 394, § 3; 1983, ch. 415, § 1; T.C.A., § 67-5806; Acts 2009, ch. 530, § 73; 2013, ch. 313, § 6. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-708. Classifications. Businesses, vocations and occupations that are taxable are set forth in the following classifications; provided, that each person shall be classified according to the dominant business activity: (1) Classification 1.  Each person engaged in the business of making sales of the following: (A) Food and/or beer as defined in § 57-6-102, generally destined for home preparation and consumption, except persons engaged in the business of selling delicatessens and candy at retail; and services performed by food brokers; (B) Lumber, building materials, tools, builders' hardware, paint and glass, electrical supplies, roofing materials, farm equipment, plumbing, heating and air conditioning equipment, and other basic lines of hardware; and sales of tangible personal property by persons operating service stations, except sales covered by subdivision (1)(D); (C) Hay, grain, feed, fertilizer, seeds, bulbs, nursery stock and other farm, lawn and garden supplies and tools; (D) Gasoline, diesel fuel and motor oils sold at retail; or (E) Gasoline and diesel fuel sold at wholesale; (2) Classification 2.  Each person engaged in the business of making sales of the following: (A) New or used motor vehicles, parts and accessories, tires, batteries, motor boats and other watercraft, marine supplies, outboard motors, mobile homes and campers, motorcycles and go-carts; (B) Clothing, shoes, hats, underwear, and related articles for personal wear and adornment, except persons engaged in the business of selling at retail clothing to individual order; (C) Home furnishings, including persons engaged in the business of selling at retail, radios, television sets, record players, high-fidelity and sound reproducing equipment, musical instruments, phonograph records, pianos and sheet music. This classification includes household furniture, floor coverings and related products, draperies, curtains, upholstery, china, glassware and metalware for kitchen and table use, miscellaneous home furnishings, such as brooms, brushes, lamps and shades, electric and gas refrigerators, stoves and other household appliances; (D) Prescription drugs and patent medicines; (E) Coal, wood, ice, fuel oil and liquefied petroleum gas; (F) Tangible personal property not specifically enumerated or described elsewhere in this part; (G) Prepared food and drinks, including alcoholic beverages, for consumption on and/or off the premises; (H) Cut flowers and growing plants; or (I) Advertising specialties; (3) Classification 3. (A) Each person engaged in the business of making sales of the following: (i) Delicatessens and candy; (ii) Clothing made to individual order; (iii) Antique furniture, furnishings and objects of art; (iv) Books and magazines, stationery, accounting and legal forms, office forms and supplies, pens and pencils, school supplies and writing supplies; (v) Sporting goods and equipment, bicycles, and bicycle parts and accessories; (vi) Any combination of the lines of jewelry, such as diamonds and other precious stones mounted in precious materials, as rings, bracelets and brooches, sterling and plated silverware, watches and clocks; (vii) Cigars, cigarettes, tobacco and smokers supplies; (viii) Toys, games, and hobby kits and supplies; (ix) Cameras, films, and other photographic supplies and equipment; (x) Gift and novelty merchandise, souvenirs, and miscellaneous small art goods, such as greeting cards and holiday decorations; or (xi) Architectural supplies, artists' paints and supplies, artificial flowers, awnings, baby carriages, bait, banners, binoculars, coins, electric razors, fireworks, flags, gemstones, hearing aids, leather goods, luggage, optical supplies except for prescription eye-ware, including eyeglasses, contact lenses and other related tangible personal property, dispensed by an ophthalmologist or optometrist in conjunction with professional services rendered to patients, orthopedic and artificial limbs, pet foods, pets, piers and floats, rock and stone specimens, rubber stamps, stamps, swimming pools, telescopes, tents, theatre programs, trophies, trunks, typewriters, toupees, wiglets and wigs; (B) Each person making sales from the operation of pawn shops; (C) Each person making sales of services or engaging in the business of furnishing or rendering services, except those described in subdivisions (3)(C)(i)-(xvi). It is the legislative intent that the exceptions in subdivisions (3)(C)(i)-(xvi) shall include the sales of services by those businesses or establishments so described in the Standard Industrial Classification Index of 1972, including all supplements and amendments prepared by the bureau of the budget of the federal government, except where otherwise provided: (i) Medical, dental, and allied health services to human beings, including sanitorium, convalescent and rest home care, but excluding services by persons engaged in the business of making dentures and artificial teeth; (ii) Legal services; (iii) Educational services offered by elementary and secondary schools, colleges, universities, professional schools and junior colleges, library and information centers, correspondence schools, vocational schools and specialized nondegree granting schools; (iv) Services rendered by nonprofit membership organizations operating on a nonprofit membership basis for the promotion of the interest of the members; (v) Domestic service performed in private households; (vi) Services furnished by nonprofit educational and research agencies; (vii) Services by religious and charitable organizations; (viii) Accounting, auditing and bookkeeping services; (ix) Public utilities as defined in § 65-4-101; (x) Services furnished by institutions that are engaged in deposit banking or closely related functions, including fiduciary activities, services furnished by persons engaged in extending credit or lending money except persons taxable under subdivision (5); services furnished by establishments engaged in the underwriting, purchase, sale or brokerage of securities on their own account or on the account of others; services furnished by exchanges, exchange clearing houses and other services allied with the exchange of securities and commodities; services furnished by investment trusts, investment companies, holding companies, and commodity trading companies; (xi) Insurance carriers or insurance agents of any type selling or furnishing necessary services related to insurance and insurance adjustors; (xii) Operators of residential and nonresidential buildings except hotels, motels and rooming houses; (xiii) Lessors of the following properties: agricultural, airport, forest, mining, oil, and public utility; (xiv) Services furnished by persons engaged in the practice of veterinary medicine, dentistry or surgery, including services involving the boarding and lodging of animals; (xv) Services furnished by persons engaged in the practice of architecture, engineering or land surveying; or (xvi) Farmers providing services to other farmers for the planting or harvesting of agricultural products or for the preparation, improvement, or maintenance of land used in the production of agricultural products; (4) Classification 4.  Each person engaged or continuing in this state in the business of contracting or performing a contract or engaging in any of the activities, or similar activities, listed in subdivisions (4)(A) and (B) for a price, commission, fee or wage: (A) This classification includes persons receiving compensation from rendering exterminating services, from installing personal property, from constructing, building, erecting, repairing, grading, excavating, drilling, exploring, testing, or adding to any building, highway, street, sidewalk, bridge, culvert, sewer, irrigation or water system, drainage, or dredging system, levee or levee system or any part thereof, railway, reservoir, dam, power plant, electrical system, air conditioning system, heating system, transmission line, pipeline, tower, dock, storage tank, wharf, excavation, grading, water well, any other improvement or structure or any part thereof; (B) Each person engaged in the business of selling livestock, poultry or other farm products not exempted under § 67-4-712; provided, that the tax imposed in § 67-4-709(4) shall apply to all commissions, fees, margins or other charges received from such sales; and (5) Classification 5. (A) Industrial loan and thrift companies required to obtain a certificate and a license under title 45, chapter 5. (B) Each person engaged in the business of making sales as a natural gas marketer. History Acts 1971, ch. 387, § 5; modified; 1972, ch. 850, § 5; 1977, ch. 313, § 1; 1977, ch. 321, § 1; 1979, ch. 28, § 6; 1981, ch. 321, § 1; 1983, ch. 394, §§ 1, 2; T.C.A., § 67-5805; Acts 1987, ch. 410, § 1; 2006, ch. 583, §§ 1, 2; 2006, ch. 583, §§ 1, 2; 2009, ch. 530, § 74; 2010, ch. 1134, § 43; 2013, ch. 313, § 7; 2014, ch. 942, § 2. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-709. Tax rates. For the exercise of the privileges described, enumerated, or referred to in § 67-4-708, every person shall pay the taxes imposed by §§ 67-4-704 and 67-4-705 according to the dominant business activity of the person as follows: (1) CLASSIFICATION 1 as described in § 67-4-708(1): (A) One-tenth of one percent (1⁄10 of 1%) of all sales by a retailer classified under § 67-4-708(1)(A), (1)(B) or (1)(C); (B) One-fortieth of one percent (1⁄40 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(A); (C) Three-eightieths of one percent (3⁄80 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(B) or (1)(C); (D) One-twentieth of one percent (1⁄20 of 1%) of all sales by a retailer classified under § 67-4-708(1)(D); and (E) One thirty-second of one percent (1⁄32 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(E); (2) CLASSIFICATION 2 as described in § 67-4-708(2): (A) Three-twentieths of one percent (3⁄20 of 1%) of all sales by a retailer; and (B) Three-eightieths of one percent (3⁄80 of 1%) of all sales by a wholesaler; (3) CLASSIFICATION 3 as described in § 67-4-708(3): (A) Three-sixteenths of one percent (3⁄16 of 1%) of all sales by a retailer; and (B) Three-eightieths of one percent (3⁄80 of 1%) of all sales by a wholesaler; (4) CLASSIFICATION 4 as described in § 67-4-708(4): (A) (i) One-tenth of one percent (1⁄10 of 1%) of the compensation entitled to under the contract, whether in the form of a contract price, commission, fee or wage, by the persons enumerated in § 67-4-708(4)(A); (ii) Persons who, during any taxable period, receive more than one hundred thousand dollars ($100,000) of compensation from contracts in a county or incorporated municipality, or both, other than the county or incorporated municipality where domiciled or located, shall be deemed to have a location in the county or municipality, or both, where the work was performed and a business tax return shall be filed for that location for the period in question. Gross receipts reported on a deemed location return shall not be reported on the return of the business's permanent domicile; (iii) In computing the measure of the tax, except as provided by this part, no deduction will be allowed on account of the cost of tangible property sold, the cost of materials used, labor cost, reimbursed cost, interest, discount, delivery cost, taxes, or no other expense whatsoever paid or accrued and without any deduction on account of losses; and (B) One-tenth of one percent (1⁄10 of 1%) of the gross commissions, margins, fees or other charges by the persons enumerated in § 67-4-708(4)(B); and (5) CLASSIFICATION 5 as described in § 67-4-708(5): (A) (i) One-tenth of one percent (1⁄10 of 1%) of the gross income of a business classified under § 67-4-708(5)(A); and (ii) “Gross income of the business” means all interest income, earned discounts, earned lease rentals, commission fees exclusive of insurance commissions, past due charges, contract earnings or charges, collection charges, loan service fees, late fee income and all other income, without any deduction except as provided by this part; (B) One-fiftieth of one percent (1⁄50 of 1%) of all sales within the state of a person classified under § 67-4-708(5)(B). History Acts 1971, ch. 387, § 6; 1972, ch. 850, § 6; 1977, ch. 328, §§ 1, 2; 1978, ch. 714, § 4; 1978, ch. 781, § 1; 1979, ch. 325, § 1; 1981, ch. 308, § 1; 1983, ch. 394, § 3; 1983, ch. 415, § 1; T.C.A., § 67-5806; Acts 1984, ch. 832, § 27; 1986, ch. 699, §§ 2, 3; 1988, ch. 572, § 3; 1988, ch. 767, § 1; 1994, ch. 766, § 1; 1999, ch. 424, § 1; 2002, ch. 856, § 9a; 2003, ch. 418, § 3; 2004, ch. 924, § 9; 2009, ch. 530, § 75; 2013, ch. 313, §§ 8, 9; 2014, ch. 942, § 3; 2023, ch. 377, §§ 1, 2. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-710. Fees for the exercise of privileges of antique malls, flea markets, craft shows, antique shows, gun shows, auto shows and transient vendors. Any county, by resolution of its county legislative body, or any incorporated municipality, by ordinance of its governing body, is authorized to impose a fee on the exercise of the privileges described or enumerated in this section. Notwithstanding any provision to the contrary, every county and incorporated municipality imposing the fee provided by this section as of January 1, 2014, shall be deemed to have made an effective election to continue the imposition of such fee and shall not be required to pass any additional resolution or ordinance. Persons exercising such privileges shall pay the applicable fee directly to the county clerk, in the case of activities carried on within the county, and to the city official designated as the collector of tax by city charter or ordinance, in the case of activities carried on within the municipality: (1) (A) (i) In the case of antique malls, flea markets, craft shows, antique shows, gun shows and auto shows, operated as public facilities for such particular purpose from which business is carried on by two (2) or more retailers of tangible personal property, which includes that set forth in § 67-4-708(3)(A)(iii), the owner, manager, operator or promoter of the facility shall be required to obtain a license and shall collect and submit to local tax officials a one-dollar fee per day per booth from each exhibitor at the promotion location. However, in the case of a flea market, those exhibitors registered pursuant to chapter 6 of this title and those who register annually pursuant to § 67-6-220 shall have the option of either registering and remitting the business tax levied in § 67-4-709, or may remit the one-dollar fee per day per booth to the flea market operator as provided in this subdivision (1)(A). Those exhibitors not registered annually shall pay the one-dollar fee per booth per day to the flea market operators. Those exhibitors electing to register and pay the business tax levied in § 67-4-709 must present evidence of such registration to the operator before conducting business. The first sentence of this subdivision (1)(A) shall not apply to those exhibitors properly licensed at the promotion location prior to July 1, 1983, until such time as that license expires, nor to those promotions conducted by nonprofit associations, corporations or organizations, nor to casual and isolated activities by persons who do not hold themselves out as engaged in business. The fee shall be in lieu of any business tax otherwise provided for by law; (ii) In the case of an antique mall, flea market, craft show, antique show, gun show or auto show in which the location is not a continuing business, the fees collected by the owner, manager, operator or promoter shall be submitted to local tax officials, together with such supporting documents as the tax collector may require, within seventy-two (72) hours after the closing of the event; (iii) In the case of an antique mall, flea market, craft show, antique show, gun show or auto show in which the location is a continuing business, the fees levied by this part shall be due and payable monthly, on the first day of each month. For the purpose of preparing such supporting documents as the tax collector may require, it shall be the duty of all owners, managers, operators or promoters on or before the tenth of each month to transmit to the tax collecting official the forms prescribed, prepared and furnished by the official, together with the amount of tax collected during the preceding month. Failure to so remit the tax shall cause the tax to become delinquent; (iv) This subdivision (1)(A) shall not apply to any business that is primarily engaged in the selling of antiques at least five (5) days each week and that is in a permanent location. In the case of an antique mall primarily engaged in the selling of antiques at least five (5) days a week with a common cash register for all sales, only the mall operator shall be required to obtain a business tax license and pay on all receipts derived from that location. Further, for purposes of this part, individual booths rented at the mall shall not be deemed to be separate places, locations or outlets in the state from which business is carried on; (B) “Flea market booth” means any contiguous space leased by a single vendor to sell tangible personal property; and (2) Transient vendors shall pay a fee of fifty dollars ($50.00) for each fourteen-day period in each county or municipality, or both, in which such vendors sell or offer to sell merchandise or for which they are issued a license. Notwithstanding any law to the contrary, the fee shall be paid prior to the first day of engaging in business. Transient vendors shall not be liable for the tax levied under § 67-4-709. History Acts 2009, ch. 530, § 76; 2013, ch. 313, §§ 10, 11. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-711. Deductions. (a) In computing tax, there may be deducted from the measure of tax the following items: (1) Cash discounts allowed and taken on sales; (2) The proceeds of the sale of goods, wares, or merchandise returned by the customer when the sale price is refunded either in cash or by credit; (3) The amount allowed as trade-in value for any article sold; (4) Amounts representing the difference between the remaining amount due on the selling price of tangible personal property sold on a security agreement and five hundred dollars ($500), when the wholesaler or retailer actually repossesses the property sold pursuant to the terms of the security agreement; (5) (A) Amounts actually paid during the business tax period by a contractor to a subcontractor holding a business license or who is licensed by the state board for licensing contractors for performing the activities described in § 67-4-708(4)(A). For a contractor to be eligible to claim the deduction, the contractor must provide, on a form prescribed by the commissioner, the name, address and business license or contractor's license number of the subcontractor and the amount subcontracted. The contractor also must maintain in its records a copy of the subcontractor's business license or license issued by the board for licensing contractors; (B) This subdivision (a)(5) shall apply only to new contracts issued sixty (60) days after July 1, 2009. Contracts issued before that date shall be subject to this subdivision (a)(5) as it existed immediately prior to July 1, 2009; (6) The sale of any service that is delivered to a location outside this state; (7) The proceeds of the sale of school supplies and meals to students and school employees on campus by elementary and secondary schools; provided, that the proceeds of all sales of such items by private independent contractors shall not be deducted; and (8) (A) A deduction from gross receipts shall be allowed for bad debts arising from receipts on which the tax imposed by this chapter was paid; (B) Any deduction taken that is attributed to bad debts shall not include interest; (C) For purpose of calculating the deduction, a “bad debt” is as defined in 26 U.S.C. § 166. However, the amount calculated pursuant to 26 U.S.C. § 166 shall be adjusted to exclude: (i) Financing charges or interest; (ii) Sales or use taxes charged on the purchase price; (iii) Uncollectible amounts on property that remain in the possession of the seller until the full purchase price is paid; (iv) Expenses incurred in attempting to collect any debt; and (v) Repossessed property; (D) The deduction provided for by this subdivision (a)(8) shall be deducted on the return for the period during which the bad debt is written off as uncollectible in the claimant's books and records and is eligible to be deducted for federal income tax purposes. For purposes of this subdivision (a)(8), a claimant who is not required to file federal income tax returns may deduct a bad debt on a return filed for the period in which the bad debt is written off as uncollectible in the claimant's books and records and would be eligible for a bad debt deduction for federal income tax purposes if the claimant was required to file a federal income tax return; (E) If a deduction is taken for a bad debt and the debt is subsequently collected in whole or in part, the tax on the amount so collected shall be paid and reported on the return filed for the period in which the collection is made; (F) When the amount of bad debt exceeds the amount of gross receipts for the period during which the bad debt is written off, the taxpayer may file a refund claim and receive a refund pursuant to § 67-1-1802. The statute of limitations for filing the claim shall be measured from the due date of the return on which the bad debt could first be claimed. (b) In computing tax, there may be deducted from the measure of tax the following taxes; provided, that such deductions may be claimed only by the taxpayer who made direct payment to the applicable governmental agency and, in addition, by all subsequent vendees of such taxpayer licensed under this chapter to do business in the state: (1) Federal excise taxes imposed on beer, gasoline, motor fuel and tobacco products; (2) Tennessee gasoline tax, compiled in chapter 3 of this title; (3) Tennessee motor vehicle fuel use tax, compiled in chapter 3 of this title; (4) Tennessee tobacco tax, compiled in part 10 of this chapter; (5) Tennessee beer taxes, compiled in title 57, chapters 5 and 6; (6) Special tax on petroleum products, compiled in chapter 3, part 9 of this title; (7) Taxes that are required to be passed on to the consumer by the Retailers' Sales Tax Act, compiled in chapter 6 of this title, or by title 57, chapter 4, relative to sale of alcohol for on-premises consumption, should be excluded from the gross sales reported on the business tax return, but such taxes passed on to the consumer may be deducted from the gross sales reported, if such taxes are included in gross sales on the business tax return; (8) Liquefied gas tax, compiled in chapter 3, part 11 of this title; and (9) Taxes that are required to be collected by a bail bondsman pursuant to part 8 of this chapter shall be excluded from the gross sales reported on the business tax return, but such taxes collected by the bail bondsman may be deducted from the gross sales reported if such taxes are included in gross sales on the business tax return. History Acts 1971, ch. 387, § 10; 1972, ch. 850, § 9; 1979, ch. 4, § 1; 1979, ch. 325, § 2; 1981, ch. 201, § 1; T.C.A., § 67-5810; Acts 1984, ch. 761, § 1; 1986, ch. 782, § 1; 1991, ch. 38, § 2; 1992, ch. 662, § 1; 2009, ch. 530, § 77; 2013, ch. 313, § 12; 2015, ch. 514, § 4; 2017, ch. 236, § 1. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-712. Exemptions. (a) (1) Each person being unable to see by reason of total blindness, owning less than two thousand five hundred dollars ($2,500) of property above encumbrances on the property and doing business with a capital not exceeding two thousand five hundred dollars ($2,500), residing in and being a citizen of this state and of the county in which the exemption shall be claimed, and being the sole beneficiary of the business, shall be exempt from the payment of the taxes payable by persons taxable under § 67-4-708(1)-(4). Any institution for the blind engaged in the training and employment of the blind of the state likewise shall be exempt from the payment of the privilege taxes imposed, without regard to property qualifications. (2) Any disabled former uniformed member of the armed forces who is a veteran of any armed conflict in which the United States has engaged, or any peacetime uniformed member of the armed forces who was disabled while in regular service, owning less than five thousand dollars ($5,000) of property above encumbrances on the property and doing business with a capital stock of not exceeding five thousand dollars ($5,000), residing in and being a citizen of this state and of the county in which the exemption shall be claimed, and being the sole beneficiary of the business, shall be exempt from the payment of the taxes imposed upon persons in § 67-4-708(1)-(4). Only one (1) exemption may be claimed by any one (1) person under this subsection (a), and any business for which the exemption is claimed shall be conducted by such former member personally or a member of such member's immediate family who may be assisted by not more than one (1) person not a member of the family. With respect to former members operating as peddlers, one (1) vehicle shall be considered as one (1) place of business. (3) The proper collectors shall require the applicant who wishes to seek the benefits of the exemptions under this subsection (a) to make an affidavit setting out the applicant's disability and the applicant's financial condition and the source of the applicant's income before the license shall be issued, and any person making a false affidavit and procuring a free privilege license commits perjury and shall be punished under the law. (b) This part shall not apply to the following persons in the circumstances indicated: (1) Any person in respect to that person's employment in the capacity of an employee or servant as distinguished from that of an independent contractor; (2) A person primarily engaged in the fabrication or processing of tangible personal property for resale and consumption off the premises with respect to the sales of such property made from the manufacturing location or from a storage or warehouse facility that is situated within a ten-mile radius of the manufacturing location; (3) Any person taxable under part 4 of this chapter with respect to receipts taxable under such provisions; (4) Newspaper route carriers and newspaper peddlers; (5) Any institution operated for religious or charitable purposes, with respect to any profits that are earned from the sale of items contributed to the institution or articles produced by the institution from such contributed items; (6) Persons conducting shows, displays, or exhibits sponsored by any nonprofit organization of gun collectors; provided, that any person who regularly engages in business as a dealer in guns or who sells guns for future delivery shall not be exempt under this subsection (b); and (7) Any person residing or located in this state whose only taxable business activity during the tax period is conducted at the Tennessee state fair or at only one (1) county fair, and any governmental entity, nonprofit corporation, institution or organization which has received a determination of exemption from the internal revenue service pursuant to 26 U.S.C. § 501(c)(3) or (c)(4), and is currently operating under it, and whose only taxable business activity during the tax period is conducted at the Tennessee state fair, county fairs and their affiliates. (c) (1) The gross sales made in this state of livestock, horses, poultry, nursery stock and other farm products direct from the farm are exempt from the tax levied by this part; provided, that such sales are made directly by the producer, breeder, or trainer. When sales of livestock, horses, poultry, or other farm products are made by any person other than the producer, breeder or trainer, they shall be classed and taxed under § 67-4-708(4). (2) No provision of this part shall apply to catfish farmers. (d) (1) Any person having sales of less than one hundred thousand dollars ($100,000) within a county shall be exempt from the tax and licensing provisions in §§ 67-4-704 and 67-4-723(a) with respect to the sales sourced to that county as provided in § 67-4-717(b). (2) Any person having sales of less than one hundred thousand dollars ($100,000) within an incorporated municipality shall be exempt from the tax and licensing provisions in §§ 67-4-705 and 67-4-723(a) with respect to the sales sourced to that municipality as provided in § 67-4-717(c). (3) Any person subject to the tax imposed by this chapter due to the operation of § 67-4-717(a) and having sales of less than one hundred thousand dollars ($100,000) within a county shall be exempt from the taxing provision in § 67-4-704 with respect to the sales occurring in that county. (e) Gross proceeds derived from admissions to amusement or recreational activities conducted, produced, or provided by not-for-profit museums, not-for-profit entities that operate historical sites and not-for-profit historical societies, organizations or associations by organizations that have received and currently hold a determination of exemption from the internal revenue service pursuant to 26 U.S.C. § 501(c), or by organizations listed in Major Group No. 86 of the Standard Industrial Classification Manual of 1972, prepared by the office of management and budget of the federal government; provided, that this exemption shall not apply unless such entities, societies, associations or organizations promote, produce, and control the entire production or function. (f) The tax imposed by this part shall not apply to a qualified business doing business from a location within an enterprise zone. The tax exemption provided by this subsection (f) shall only be allowed, however, to a qualified business for five (5) years from the date such business is originally certified as a qualified business. History Acts 1971, ch. 387, §§ 11-13; 1972, ch. 850, §§ 6, 10-12, 25; modified; Acts 1977, ch. 345, § 1; 1978, ch. 832, § 2; 1981, ch. 275, § 1; T.C.A., §§ 67-5811 — 67-5813, 67-5828, 67-5829; Acts 1986, ch. 672, §§ 1, 2; 1986, ch. 929, § 1; 1989, ch. 16, § 7; 1989, ch. 465, § 1; 1989, ch. 560, § 20; 2013, ch. 313, § 13; 2023, ch. 377, §§ 3-6. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-713. Credits. (a) The following credits may be taken by persons filing and paying the tax imposed by this part: (1) For persons filing returns and paying taxes due under this part, the pro rata portion of any privilege tax paid under any provisions of title 56, chapter 4, part 4, title 57, chapter 5, or parts 4 and 5 of this chapter, extending past June 1, 1971, and repealed as of that date; (2) Except as provided in subdivision (a)(3), personal property taxes properly paid pursuant to chapter 5, part 5 or part 13 of this title; (A) Personal property taxes are allowable as a credit only to the extent that the property is located at the place of business covered by the return required by this part and the property is taxed by the same city or county that receives the allocation of tax under § 67-4-724; (B) Personal property taxes are allowable as a credit only for taxes paid either during the tax period covered by the return or prior to the due date of the return; (C) Personal property taxes assessed pursuant to audit and subsequently paid may be taken as a credit either on the business tax return filed for the year in which the additional personal property tax was paid or on the return covering the immediately previous year. If the credit is taken in the previous year, an amended business tax return must be filed for that year; (D) Notwithstanding subdivision (a)(2)(A), providers of video programming services, as defined in § 67-6-102, shall be allowed the credit provided by this subdivision (a)(2) to the extent that the property is located in a jurisdiction to which the taxpayer's receipts are sourced in accordance with § 67-4-717 and the property is taxed by that jurisdiction; (3) In cases where a lease or rental agreement provides specifically for payment of personal property taxes by the lessee or renter to the lessor or owner, personal property taxes paid by the lessee or renter to the lessor or owner covering any period of time extending beyond June 1, 1971, arising from assessments referred to in subdivision (a)(2) and made against the lessor or owner. The credit authorized in this subdivision (a)(3) to the lessee or renter may not be taken by the lessor or owner; (4) Personal property taxes paid pursuant to a special school district tax levied by public or private act. The credit established by this subdivision (a)(4) shall only apply in any county having a population of not less than twenty-eight thousand two hundred fifty (28,250) nor more than twenty-eight thousand three hundred (28,300), or not less than forty-nine thousand four hundred (49,400) nor more than forty-nine thousand five hundred (49,500), according to the 1980 federal census or any subsequent federal census; and (5) The amount of personal property taxes that would be due and owing pursuant to chapter 5, part 5 of this title, but for the fact that pursuant to a lawful agreement between the person and a local governmental unit or instrumentality the person's personal property has been transferred to a governmental unit or instrumentality; provided, that: (A) The person shall be eligible for such credit only to the extent of the tax generated from its receipts for services rendered by such person to an affiliated person; (B) Either person directly owns or controls eighty percent (80%) or more of the other, or eighty percent (80%) or more of both persons is directly or indirectly owned or controlled by a common parent; (C) This subdivision (a)(5) is not affirmatively rejected by a two-thirds (⅔) vote of the legislative body of the county or municipality, whichever is appropriate, exercising jurisdiction over the governmental unit or instrumentality; and (D) Subdivision (a)(5)(C) shall be retroactive to tax years beginning on or after January 1, 1999, with respect to agreements in effect on that date. (b) In no case shall the total credits provided in this section be used to offset more than fifty percent (50%) of the taxpayer's liability as calculated in § 67-4-709. History Acts 1971, ch. 387, § 14; 1972, ch. 850, § 13; 1973, ch. 208, § 4; 1973, ch. 242, §§ 1, 2; 1973, ch. 260, § 1; 1975, ch. 257, § 1; 1983, ch. 136, § 1; T.C.A., § 67-5814; Acts 1984, ch. 832, § 31; 1985, ch. 392, §§ 1, 2; 1990, ch. 898, § 4; 1990, ch. 1093, § 1; 1997, ch. 383, § 1; 1999, ch. 454, § 1; 2001, ch. 273, §§ 1, 2; 2002, ch. 856, § 9c; 2009, ch. 530, §§ 78-81; 2010, ch. 1134, § 44; 2013, ch. 313, §§ 14, 15. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-714. Inactive or terminated taxable entities not relieved from filing a return and paying business tax. (a) The minimum business tax payable under this part by any person subject to the tax levied in this part shall be as follows: (1) Notwithstanding § 67-4-709(1)-(4) for taxpayers included in classifications (1)-(4) in § 67-4-708, the minimum business tax shall be twenty-two dollars ($22.00) per annum per location after applying all deductions and credits set forth in §§ 67-4-711 and 67-4-713. Any person subject to tax under this part that has no established physical location, outlet, or other place of business in the state shall be subject to a single minimum tax as provided in this subdivision (a)(1) for all activity within the state. In the case of coin-operated machines, only the principal place of business shall be subject to the minimum tax; (2) Notwithstanding § 67-4-709(5)(A) for taxpayers included in classification (5)(A) in § 67-4-708, the minimum tax payable shall be four hundred fifty dollars ($450) per annum after applying all deductions and credits set forth in §§ 67-4-711 and 67-4-713; however, under no circumstances shall the tax payable under § 67-4-709(5)(A) be more than one thousand five hundred dollars ($1,500) per annum after applying all deductions and credits set forth in §§ 67-4-711 and 67-4-713. (b) A taxable entity that is incorporated, domesticated, qualified or otherwise registered to do business in this state, but is, or has become, inactive in this state, or whose charter, domestication, qualification or other registration is forfeited, revoked or suspended without the entity being properly dissolved, surrendered, withdrawn, cancelled or otherwise properly terminated, shall not be relieved from filing a return and paying the business tax, which shall be no less than the minimum tax established in subsection (a). History Acts 1971, ch. 387, § 7; modified; Acts 1972, ch. 850, § 7; 1973, ch. 172, § 1; 1973, ch. 208, §§ 1, 2; 1977, ch. 314, § 1; T.C.A., § 67-5807; Acts 1984, ch. 832, §§ 28, 29; 2009, ch. 530, § 82; 2010, ch. 1134, § 45; 2013, ch. 313, § 16; 2014, ch. 942, § 4. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-715. When taxes due and payable — Transmission of returns — Due dates of returns — Consolidating taxes. (a) The taxes levied by this part that are collected and administered by the commissioner shall be due and payable annually on the following dates: (1) December 31 for persons taxable under § 67-4-708(1); (2) March 31 for persons taxable under § 67-4-708(2); (3) June 30 for persons taxable under § 67-4-708(3); (4) September 30 for persons taxable under § 67-4-708(4); and (5) December 31 for persons taxable under § 67-4-708(5). (b) For the purpose of ascertaining the amount of tax payable under this part, it shall be the duty of all persons to transmit to the commissioner, on forms prescribed by the commissioner, a return for each county, in the case of taxes levied by the state, and a return for each city, in the case of taxes levied by the city, showing the gross receipts arising from all sales taxable under this part during the period covered by each return. The return shall also include the applicable deductions or credits specifically allowed under this part and any other information required by the commissioner to determine the amount of tax properly due. The returns shall be transmitted to the commissioner on or before the following dates: (1) February 28 for persons taxable under § 67-4-708(1); (2) May 31 for persons taxable under § 67-4-708(2); (3) August 31 for persons taxable under § 67-4-708(3); (4) November 30 for persons taxable under § 67-4-708(4); and (5) February 28 for persons taxable under § 67-4-708(5). (c) At the time of transmitting to the commissioner the return required by this part, the person shall remit to the commissioner with the return the amount of tax due under the applicable provisions of this part, and failure to so remit the tax shall cause the tax to become delinquent. (d) (1) Any taxpayer that is required to file its sales and use tax returns electronically under § 67-6-504 is likewise required to file the returns required by this section electronically, and remit the tax electronically, using a method approved by the commissioner. (2) In addition, when a taxpayer is required to remit payments electronically as set forth in § 67-1-703(b) because the taxpayer's liability under this part is one thousand dollars ($1,000) or more, then all returns required by this chapter that are associated with such payments shall be filed electronically using a method approved by the commissioner. When any taxpayer is required to file returns and remit payments electronically for any one (1) outlet, location or other place of business, the commissioner may require the taxpayer to file returns and remit payments electronically for each place of business of the taxpayer. The requirement to file electronically shall continue thereafter until such time as the commissioner advises the taxpayer to file by another method. (3) In addition to any other penalty provided by law, the commissioner is authorized to assess any taxpayer required to file returns by electronic means under this subsection (d) a penalty, not to exceed five hundred dollars ($500), for each instance of filing a return by any other means. The penalty shall be subject to waiver under § 67-1-803. In extenuating circumstances, the commissioner is authorized to waive the electronic payment and filing requirements under this subsection (d) and permit the taxpayer to file the return in paper form. The commissioner is authorized to require that any such paper filing be accompanied by a manual handling fee, not to exceed twenty-five dollars ($25.00), that is reasonably calculated by the department to account for the additional cost of preparing, printing, receiving, reviewing and processing any paper filing so permitted. (e) Each taxpayer who operates more than one (1) place of business in a city or county may apply to the commissioner for permission to file a consolidated tax return for all business locations in a single taxing jurisdiction. (f) The failure of any person to secure the forms mentioned in this section shall not relieve the person from the payment of the tax at the time and in the manner provided in this section. (g) Notwithstanding any provision of this section to the contrary, the commissioner is authorized to change the tax period established by this part to correspond to the taxpayer's fiscal year and change the due date of the associated tax return to a date that is not less than two (2) calendar months following the end of such tax period. Such change is authorized to occur no sooner than ninety (90) days after the commissioner has certified that a system is in place for the electronic submission of such returns. Such certification shall be accomplished by the commissioner prominently posting a notice on the department's website. The commissioner shall allow the submission of a single, electronic filing that includes all of the information required by the commissioner to determine the amount of tax, if any, that is properly due under this part and allocated to each jurisdiction. Nothing in this subsection (g) shall be construed to either increase or decrease the amount of tax otherwise due under this part. History Acts 1971, ch. 387, § 7; modified; Acts 1972, ch. 850, § 7; 1973, ch. 172, § 1; 1973, ch. 208, §§ 1, 2; 1977, ch. 314, § 1; T.C.A., § 67-5807; Acts 2004, ch. 924, § 10; 2009, ch. 530, § 83; 2011, ch. 467, § 8; 2012, ch. 657, §§ 5, 6; 2013, ch. 313, § 17. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-716. Applicability of parts of chapter 1 of this title. Chapter 1, parts 8, 13, 14, 15, 17 and 18 of this title shall apply to all taxes collected and administered by the commissioner under this part. History Acts 1971, ch. 387, § 7; modified; Acts 1972, ch. 850, § 7; 1973, ch. 172, § 1; 1973, ch. 208, §§ 1, 2; 1977, ch. 314, § 1; T.C.A., § 67-5807; Acts 2009, ch. 530, § 84. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-717. State and local privilege tax imposition for persons with a substantial nexus in the state and engaged in any vocation, occupation, business or business activity — Distributing state and local business tax. (a) (1) Except as otherwise provided in this part, all persons with a substantial nexus in this state during the tax period and engaged in this state in any vocation, occupation, business, or business activity set forth as taxable under § 67-4-708(1)-(5), with or without establishing a physical location, outlet, or other place of business in the state, shall be subject to the tax levied by § 67-4-704. For purposes of this section, the phrase “engaged in this state” shall include, but not be limited to, any of the following: (A) The sale of tangible personal property that is shipped or delivered to a location in this state; (B) The sale of a service that is delivered to a location in this state; (C) The leasing of tangible personal property that is located in this state; or (D) Making sales as a natural gas marketer to customers located within this state through the presence in this state of the seller's property, through the holding of pipeline capacity by the seller on pipelines located in this state, or through the presence in this state of the seller's employees, agents, independent contractors, or other representatives acting on behalf of the seller to solicit orders, provide customer service, or conduct other activities in furtherance of such sales. For purposes of this subdivision (a)(1)(D), the phrase “presence in this state of the seller's property” shall include property owned by the seller in this state during delivery to the customer, whether in a pipeline or otherwise. (2) All persons that are subject to the tax levied by § 67-4-704 and have a physical location, outlet, or other place of business within a municipality in this state shall be subject to the tax levied by § 67-4-705. Persons that do not have a physical location, outlet, or other place of business within a municipality in this state shall not be subject to the tax levied by § 67-4-705. (b) (1) For purposes of distributing the state business tax as provided in § 67-4-724(a), receipts from sales made by a person subject to the tax levied by § 67-4-704 shall be sourced to the county in which the person's established physical location, outlet, or other place of business is located. Receipts from sales made by persons operating from an established physical location, outlet, or other place of business in one (1) county who extend their operations into other counties without establishing a physical location, outlet, or other place of business therein shall be sourced to the county in which the person's established physical location, outlet, or other place of business is located. If the person has no established physical location, outlet, or other place of business in the state, then such receipts shall be sourced to the state and the taxes shall be earmarked and allocated to the state's general fund in accordance with § 67-4-724(a)(5). (2) Notwithstanding subdivision (b)(1), receipts from all taxable sales of any services or tangible personal property by a provider of video programming services, as defined in § 67-6-102, shall be sourced to the county where the property or service is received by the customer, regardless of whether the provider has a physical location, outlet, or other place of business in that county. (3) Notwithstanding subdivision (b)(1), compensation of more than one hundred thousand dollars ($100,000) from contracts performed in one (1) county by a person described in § 67-4-708(4)(A) shall be sourced to that county as provided in § 67-4-709(4)(A)(ii) and the tax on such compensation shall be distributed to that county pursuant to § 67-4-724(a). Compensation of one hundred thousand dollars ($100,000) or less from contracts performed in one (1) county by a person described in § 67-4-708(4)(A) shall be sourced to the county of such person's domicile or location. If such person does not have a domicile or location in the state, such compensation shall be earmarked and allocated to the state's general fund in accordance with § 67-4-724(a)(5). (c) (1) For purposes of levying the tax set forth in § 67-4-705, receipts from sales made by a person subject to the tax levied by § 67-4-705 shall be sourced to the incorporated municipality in which the person's established physical location, outlet, or other place of business is located and shall be subject to the tax, if any, that is levied by such incorporated municipality. Receipts from sales made by persons operating from an established physical location, outlet, or other place of business in one (1) incorporated municipality who extend their operations outside the boundaries of the incorporated municipality that levied the tax without establishing a physical location, outlet, or other place of business outside such incorporated municipality shall be sourced to the incorporated municipality in which the person's established physical location, outlet, or other place of business is located and shall be subject to the tax, if any, that is levied by such incorporated municipality. If the person has no established physical location, outlet, or other place of business in the state, then such receipts shall not be subject to tax under § 67-4-705. (2) Notwithstanding subdivision (c)(1), receipts from all taxable sales of any services or tangible personal property by a provider of video programming services, as defined in § 67-6-102, shall be sourced to the incorporated municipality where the property or service is received by the customer, regardless of whether the provider has a physical location, outlet, or other place of business in that incorporated municipality. (3) Notwithstanding subdivision (c)(1), compensation of more than one hundred thousand dollars ($100,000) from contracts performed in one (1) incorporated municipality by a person described in § 67-4-708(4)(A) shall be sourced to that incorporated municipality as provided in § 67-4-709(4)(A)(ii) and such compensation shall be subject to the tax, if any, that is levied by such incorporated municipality. Compensation of one hundred thousand dollars ($100,000) or less from contracts performed in one (1) incorporated municipality by a person described in § 67-4-708(4)(A) shall be sourced to the incorporated municipality of such person's domicile or location; provided, if such person does not have a domicile or location in the state, such compensation shall not be subject to tax under § 67-4-705. History Acts 2013, ch. 313, § 18; 2014, ch. 942, § 5; 2015, ch. 514, § 5; 2023, ch. 377, §§ 7, 8. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-718. Extension of time for filing or payment. (a) The commissioner may, for good cause shown, grant not more than one (1) extension of time, not to exceed thirty (30) days, for a person liable for the business tax to file that person's tax return and pay the tax shown to be due. (b) Requests for such extensions must be made in writing, stating why the extension is desired, signed, and be submitted before the delinquent date of the return and tax. (c) Interest as provided in § 67-1-801 shall be added to the amount of tax due beginning from the regular statutory due date until the date the tax is paid. No penalty shall be assessed if the return is made and the full amount of taxes are paid on or before the extended due date. Any return and payment made subsequent to the extended due date shall, however, be subject to penalty without regard to the period allowed by the extension. History Acts 1981, ch. 77, § 1; T.C.A., § 67-5827; Acts 2009, ch. 530, § 86. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-719. Authority of commissioner to enter contract for collection of delinquent taxes. The commissioner is authorized, in the commissioner's sole discretion, to enter into a contract with the county clerk, in the case of business taxes levied by the state, or the appropriate city official, in the case of business taxes levied by a municipality, for the collection of taxes that have become delinquent under this part. The contract may delegate to the county or city official any or all of the powers otherwise exercised by the commissioner under chapter 1, part 14 of this title. The contract shall also specify that the county or city official and any employees of the official are subject to chapter 1, part 17 of this title. History Acts 1971, ch. 387, § 8; modified; 1972, ch. 850, § 8; 1973, ch. 208, § 3; 1977, ch. 314, § 2; 1978, ch. 714, § 1; impl. am. Acts 1978, ch. 934, §§ 22, 36; T.C.A., § 67-5808; Acts 1984, ch. 832, § 30; 1987, ch. 346, § 1; 1995, ch. 401, § 1; 2002, ch. 555, § 1; 2008, ch. 1100, § 1; 2009, ch. 530, § 87; 2013, ch. 313, § 19. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-720. Certificate indicating whether person reported tax due for location at wholesaler rate or retailer rate. For purposes of aiding administration of the tax under this part, the department shall make available to every person that files a return under this part a certificate indicating whether the person reported the tax due for a location at the wholesaler rate or retailer rate as set forth in § 67-4-709. The certificate must be in a format that enables a customer to provide the certificate to a vendor as proof that the customer filed as a wholesaler or retailer. The certificate is effective from the original due date of the customer's underlying return until the due date of the customer's next return. For transactions occurring during the certificate's effective period, a vendor that receives a certificate from a customer can rely on the certificate for purposes of determining the vendor's liability under this part. Notwithstanding another law to the contrary, a vendor that receives a certificate from a customer shall not owe additional tax, nor be refunded tax, based on a retroactive change in the customer's status as a wholesaler or retailer for the period covered by the certificate. History Acts 2022, ch. 683, § 1. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-721. Settlement upon selling or quitting business. (a) If any person liable for tax, interest or penalty levied under this part sells out the person's business or stock of goods, or quits the business, the person shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business. (b) The person's successor, successors or assigns, if any, shall withhold sufficient of the purchase money to cover the amount of the taxes, interest, and penalties due and unpaid until the former owner produces a receipt from the commissioner showing that they have been paid or a certificate stating that no taxes, interest or penalties are due. (c) (1) If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in subsection (b), the purchaser shall be personally liable for the payment of the taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners or assigns. (2) The amount of the purchaser's liability for payment of the taxes, interest and penalties shall not exceed the amount of the purchase money paid by the purchaser to the seller in good faith and for full and adequate consideration in money or money's worth. “Purchase money,” as used in this subsection (c), includes cash paid, purchase money notes given by purchaser to seller, the cancellation of the seller's indebtedness to the purchaser, the fair market value of property or other consideration given by purchaser to seller, and does not include indebtedness of the seller either taken or assumed by the purchaser when a tax lien has not been filed. (3) The purchaser shall have no liability for the taxes, interest or penalties, if the department releases the former owner, owners or assigns from the original liability for the taxes, interest or penalty through payment of the amount due and settlement with the department. (d) A purchaser who, in good faith and without knowledge of any false statement in the affidavit, receives from the seller at the time of the purchase an affidavit stating under oath of the penalties of perjury the amount of the taxes, interest and penalty due and unpaid by the seller to the department through the date of the purchase, or a statement that there are no due and unpaid taxes, interest and penalty, who in good faith withholds and sets aside from the purchase money to be paid to the seller an amount sufficient to pay the amount of the taxes, interest and penalty shown to be due and unpaid in the seller's affidavit, and who tenders a copy of the seller's affidavit by registered or certified mail or by personal service to the tax enforcement division of the department, shall be entitled to a release from the commissioner from any liability, in excess of that shown on the affidavit, for the payment of the taxes, interest and penalty accrued and unpaid on account of the operation of the business by any former owner or assigns, unless the commissioner notifies the purchaser of the correct tax liability at the return address provided by the purchaser within fifteen (15) days of receipt of the affidavit. (e) (1) Nothing in this section shall apply to any licensee transferring a business from one location to another, within the same municipality, on a one-time basis during any annual taxable period. (2) In this event a licensee shall notify the county clerk, in the case of a business located in a county, or the appropriate city official, in the case of a business located in a municipality, at least five (5) days prior to the last day of business at the old location, submitting information for the new location and payment of the fee set out in § 8-21-701. (3) Succeeding transfers by the same licensee, within the same annual taxable period, shall submit a final return and payment within fifteen (15) days to the commissioner. In addition, the licensee shall be required to obtain a new business license for the new location as set forth in § 67-4-723. History Acts 1971, ch. 387, § 15; impl. am. Acts 1978, ch. 934, §§ 22, 36; Acts 1981, ch. 304, § 1; T.C.A., § 67-5815; Acts 2008, ch. 924, § 3; 2009, ch. 530, § 89. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-722. Taxpayer's records. (a) It is the duty of every person required to pay a tax under this part to keep and preserve records showing the gross amount of sales tax owed to the state, and the amount of such person's gross receipts taxable under this part; and such other books of account as may be necessary to determine the amount of tax due under this part, and all such books and records shall be open to inspection at all reasonable hours to the commissioner or the commissioner's duly authorized agents. (b) All such books and records shall be maintained by the taxpayer for a period of three (3) years from December 31 of the year in which the associated return required by this part was filed. (c) Except as provided in subsection (d), all returns, tax information, and tax administration information under this part shall be subject to chapter 1, part 17 of this title. (d) Notwithstanding any other law to the contrary, the name and address of any present or former owner or operator of any trade or business as appearing on any business or occupation license or application for a license, and information on the license or application regarding whether the trade or business is veteran- or minority-owned, is a public record open for public inspection within the meaning of the Public Records Act, compiled in title 10, chapter 7, and the record is not confidential information. History Acts 1971, ch. 387, § 16; modified; 1972, ch. 850, § 15; T.C.A., § 67-5816; Acts 1989, ch. 591, §§ 1, 6; 1992, ch. 861, § 1; 2009, ch. 530, § 90; 2021, ch. 327, § 2. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-723. License — Issuance and renewal — Duty to exhibit license — Use of collected funds. (a) (1) Upon receipt of the prescribed application and payment of fifteen dollars ($15.00), together with any other information reasonably required, it shall be the duty of the county clerk, in the case of taxpayers located within the county, and the appropriate city official, in the case of taxpayers located within the incorporated municipality, to issue a license to the taxpayer. If a taxpayer has more than one (1) location within the county or incorporated municipality, a separate license, including payment of the fifteen-dollar fee required by this subsection (a), shall be required for each location. In the case of the county clerk, three dollars ($3.00) of the fifteen-dollar fee shall be earmarked for computer hardware purchases or replacement, but may be used for other usual and necessary computer-related expenses at the discretion of the county clerk. The earmarked amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended. (2) In addition to the initial license issued under subdivision (a)(1), the issuing official shall renew the license upon notification from the department that the taxpayer has filed the return required under § 67-4-715 and remitted the amount shown to be due on the return. There shall be no fee charged for the renewal of a license issued under this subsection (a). (3) Each license issued under this subsection (a) shall expire thirty (30) days after the date that the taxpayer's return is due under § 67-4-715. (4) No person shall conduct business in this state without first acquiring the license required by this subsection (a). (5) Notwithstanding subdivisions (a)(1) and (2), any county or municipality may, but shall not be required to, enter an agreement with the commissioner pursuant to which the department will issue or renew, or both, the license required by this subsection (a) on behalf of the county or municipality. (6) Persons described in § 67-4-708(5) and taxable under § 67-4-709(5) shall not be required to obtain a license under this subsection (a). (b) (1) Notwithstanding any provision to the contrary, any incorporated municipality that imposes the tax authorized by § 67-4-705(a) and every county shall issue a minimal activity license to any person that is exempt from taxation and licensing pursuant to § 67-4-712(d), provided that such person has sales of more than three thousand dollars ($3,000) but less than one hundred thousand dollars ($100,000) per year within the jurisdiction. Such license shall be issued upon receipt of an application, to be prescribed by the department, and payment of fifteen dollars ($15.00). The application shall require the applicant to attest that the applicant is engaged in business within such county or incorporated municipality but has sales of less than one hundred thousand dollars ($100,000) per year within such county or incorporated municipality. No person with sales of more than three thousand dollars ($3,000) but less than one hundred thousand dollars ($100,000) per year within such county or incorporated municipality shall conduct business in such county or incorporated municipality without first acquiring the license required by this subsection (b). If a person has more than one (1) location within the county or incorporated municipality, a separate minimal activity license, including payment of the fifteen-dollar fee required by this subsection (b), shall be required for each location. Every county or incorporated municipality that issues minimal activity licenses pursuant to this subsection (b) shall provide the department, if requested, with the identity of each licensee and any other information reasonably required by the department to verify the licensee's compliance with this part. (2) Persons with sales of three thousand dollars ($3,000) or less per year in any incorporated municipality or county may, but do not have to, apply for a minimal activity license, as provided for in this subsection (b). (3) Each minimal activity license issued under this subsection (b) shall expire thirty (30) days after the dates set forth in § 67-4-715 as if the person were filing a return. (4) This subsection (b) shall not operate to exempt any person from filing a tax return pursuant to § 67-4-715 in the event that the person's sales exceed one hundred thousand dollars ($100,000) during their tax year as otherwise provided in § 67-4-715. (5) Notwithstanding subdivision (b)(1), any county or municipality may, but shall not be required to, enter an agreement with the commissioner pursuant to which the department will issue or renew, or both, the license required by this subsection (b) on behalf of the county or municipality. (c) It shall be the duty of each taxpayer that receives a license under this section to exhibit such license. (d) An amount equal to three dollars ($3.00) per minimal activity license shall be retained by the county clerk or city official that issues such license. In the case of a county clerk, such amount shall be earmarked for computer hardware purchases or replacement but may be used for other usual and necessary computer-related expenses at the discretion of the county clerk. The amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended. Notwithstanding § 8-21-701, no additional fee shall be charged to any person for the filing of the application or issuance of the license provided for in this section. (e) Licenses already in effect as of January 1, 2014, continue to be valid until their original renewal date. History Acts 1971, ch. 387, § 20; T.C.A., § 67-5819; Acts 2009, ch. 530, § 91; 2013, ch. 313, § 20; 2014, ch. 942, § 6; 2018, ch. 756, § 1; 2023, ch. 377, §§ 9, 10. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-724. Distribution of taxes — Retention by state in general fund of taxes, interest and penalties assessed due to audit. (a) The tax levied by the state under § 67-4-704, including any associated interest and penalties, shall be distributed as follows: (1) An amount equal to seven dollars ($7.00) per return shall be paid to the county clerk with respect to each tax return filed under § 67-4-715 by a taxpayer that is either located within the county or otherwise obtains a license under § 67-4-723(a). Of that amount, three dollars ($3.00) shall be earmarked for computer hardware purchases or replacement, but may be used for other usual and necessary computer-related expenses at the discretion of the county clerk. The amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended; (2) After the distribution provided in subdivision (a)(1), an amount equal to five percent (5%) of the remaining proceeds of the tax shall be paid to the county clerk in the case of returns filed under § 67-4-715 by taxpayers located or otherwise licensed under § 67-4-723(a) within the county; (3) After the distributions provided in subdivisions (a)(1) and (2), forty-two and sixty-two hundredths percent (42.62%) of the remaining proceeds of the tax shall be earmarked and allocated specifically and exclusively to the state's general fund; (4) After the distributions provided in subdivisions (a)(1)-(3), an administration fee of seventy-five hundredths percent (0.75%) of the remaining proceeds of the tax shall be allocated to the department to cover the expenses of administration and collection; (5) After the distributions provided in subdivisions (a)(1)-(4), the remaining proceeds of the tax collected under § 67-4-704 shall be distributed to the county in which the taxpayer has established a physical location, outlet, or other place of business from which the sales are made. (b) The tax levied by an incorporated municipality under § 67-4-705, including any associated interest and penalties, shall be distributed as follows: (1) An amount equal to seven dollars ($7.00) per return shall be paid to the appropriate city official with respect to each tax return filed under § 67-4-715 by a taxpayer that is either located within the municipality or otherwise obtains a license under § 67-4-723(a); (2) After the distribution provided in subdivision (b)(1), an amount equal to five percent (5%) of the remaining proceeds of the tax shall be paid to the appropriate city official in the case of returns filed under § 67-4-715 by taxpayers located or otherwise licensed under § 67-4-723(a) within the municipality; (3) After the distributions provided in subdivisions (b)(1) and (2), forty-two and sixty-two hundredths percent (42.62%) of the remaining proceeds of the tax shall be allocated to the general fund of the state. Any allocation or distribution of amounts from the general fund for local purposes shall be deemed first derived from the proceeds directed into the general fund under this subdivision (b)(3); (4) After the distributions provided in subdivisions (b)(1)-(3), an administration fee of seventy-five hundredths percent (0.75%) of the remaining proceeds of the tax shall be allocated to the department to cover the expenses of administration and collection; (5) After the distributions provided in subdivisions (b)(1)-(4), the remaining proceeds of the tax collected by the commissioner under § 67-4-705 shall be distributed to the municipality that levied the tax. (c) Notwithstanding subsections (a) and (b), one hundred percent (100%) of the tax, interest, and penalty collected from a taxpayer that does not have either a license under § 67-4-723(a) or an established physical location, outlet, or other place of business in any county or incorporated municipality in the state shall be earmarked and allocated specifically and exclusively to the state's general fund. In addition, one hundred percent (100%) of the amount of any tax, interest, and penalty assessed by the commissioner pursuant to § 67-4-704 or § 67-4-705 as a result of an audit of the taxpayer's books and records shall be earmarked and allocated specifically and exclusively to the state's general fund. In addition, one hundred percent (100%) of the tax, interest, and penalty collected from any person described in § 67-4-708(5) and taxable under § 67-4-709(5) shall be earmarked and allocated specifically and exclusively to the state's general fund. (d) The fee levied by a county or incorporated municipality under § 67-4-710, including any associated interest and penalties, shall be retained by the county or incorporated municipality that levied the fee. Notwithstanding the preceding sentence, an amount equal to five percent (5%) of the proceeds of the fee shall be paid to the county clerk, in the case of fees collected under § 67-4-710 by a county, and to the appropriate city official, in the case of fees collected under § 67-4-710 by a municipality. History Acts 1972, ch. 850, §§ 15-18; 1978, ch. 714, §§ 2, 3; 1980, ch. 885, § 16; T.C.A., §§ 67-5823 — 67-5826; Acts 1984, ch. 832, §§ 32, 33; 1988, ch. 526, § 34; 1989, ch. 340, § 1; 2002, ch. 856, § 9d; 2009, ch. 530, § 92; 2013, ch. 313, § 21; 2014, ch. 764, § 2; 2014, ch. 942, § 7; 2019, ch. 404, § 1; 2023, ch. 377, §§ 11, 12; 2025, ch. 355, §§ 1, 2. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-725. [Reserved.] TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-726. [Reserved.] TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-727. Municipal airports outside municipal boundaries. (a) Where there exists an airport or any other navigation facility, as defined in § 42-4-103 or § 42-5-102, that is located outside the territorial limits of the creating municipality or the municipality that controls or operates the airport or air navigation facility, the creating municipality or municipality that controls or operates the airport or air navigation facility may levy and collect a privilege tax, in the same manner authorized by this part, upon any vocation, occupation, business or business activity enumerated, described, or referred to in § 67-4-708 that is conducted or located upon the premises, grounds, and/or property of such airport or air navigation facility, and the municipality may levy and collect such privilege tax in the same manner and to the same extent as if the airport or air navigation facility were within the territorial limits of the municipality. (b) (1) This section shall not apply to any county having a population, according to the 1980 federal census or any subsequent federal census, of: not less than nor more than 100,000200,000 285,000290,000 450,000550,000 600,001 (2) This section shall not apply to any county having a metropolitan form of government. (3) This section shall not apply to any municipality or county creating, controlling, or operating, in part, an airport or air navigation facility created, controlled, or operated, in part, by at least four (4) political subdivisions of this state and a political subdivision of an adjacent state, which airport is located outside the territorial limits of such municipality or county. History Acts 1971, ch. 387, § 2; 1972, ch. 850, § 2; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., § 67-5802. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-728. Fee or tax on beer. No county, municipal, or metropolitan government shall have the authority to levy any regulatory fee, inspection fee, or special tax or fee of any type or kind on beer as defined in § 57-6-102, at either wholesale or retail, except as authorized by this part and by chapter 6 of this title, providing for city and county retail sales tax, and in §§ 57-5-105 and 57-5-108. History Acts 1971, ch. 387, § 2; 1972, ch. 850, § 2; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., § 67-5802. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-729. Traveling photographers. (a) As used in this section, “traveling photographer” means a photographer who makes or causes to be made studio type photographs or portraits and sells such photographs or portraits or enlargements of those photographs or portraits, and who does not have an established studio or place of business in the trade area in which such photographs are taken, but does not include a photographer who makes photographs incidental to and to be placed upon identification cards or other articles of identification. (b) (1) Before any traveling photographer may do any business in a community in which such photographer has no established studio or place of business, such photographer shall first register with the sheriff of the county or chief of police of any metropolitan government in which such photographer proposes to conduct business temporarily. (2) Such photographer shall list the photographer's full name and address, the name and address of any other person working with such photographer, and the name and address of the employer or business firm with which such photographer is connected, and shall furnish proof that the photographer has deposited with the county clerk the amount of one hundred dollars ($100) and a like amount with the proper municipal tax collector, against whatever amount or amounts of business taxes such photographer may owe on account of business done in the county or municipality, or both, as the case may be. (3) Any such deposit or deposits shall be a credit on the amount of business taxes for which such photographer may be liable to any such county or municipality and when such taxes are paid, any balance remaining to the photographer's credit with the respective taxing jurisdictions shall be refunded. (c) A violation of this section is a Class C misdemeanor. History Acts 1973, ch. 407, §§ 1-3; T.C.A., §§ 67-5829, 67-5830; Acts 1989, ch. 591, § 113. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 7 Business Tax Act 67-4-730. Property management companies. A property management company shall owe its business tax based on its gross proceeds from overnight rentals and gross proceeds from any other source subject to the business tax levied by this part. History Acts 2001, ch. 224, § 3. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 8 Bail Bond Tax 67-4-801. Power to levy tax. The tax imposed by this part is a state tax for state purposes only and no county or municipality or taxing district shall have power to levy any like tax. History Acts 2001, ch. 456, § 2. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 8 Bail Bond Tax 67-4-802. Supervision and collection of tax — Forms. The supervision and collection of the tax imposed by this part is under the direction of the department of revenue. The department has the authority and power to prescribe forms upon which individuals and entities required to collect and remit the tax imposed shall make reports of such facts and information as will enable the commissioner to ascertain the correctness of the amount reported and paid by such individuals and entities. History Acts 2001, ch. 456, § 3. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 8 Bail Bond Tax 67-4-803. Amount of tax. A tax is imposed on all bail bonds in this state, as provided in title 40, chapter 11, in the amount of twelve dollars ($12.00) per bail bond. For purposes of this part, an increase or decrease in the amount of an existing bail bond shall not constitute a new bail bond; provided, that the tax imposed by this section per bail bond shall be collected by bail bondsmen and shall include all charges against a defendant that are based on the same conduct and arising from the same criminal episode committed as a part of a single course of conduct leading to the arrest and charges at the time; and the tax imposed on bail bonds shall not be construed to be a separate tax on each charge arising from incidents in a single course of conduct and the same criminal episode, but for the purposes of this section shall be construed as one bail bond. History Acts 2001, ch. 456, § 4; 2002, ch. 775, § 1. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 8 Bail Bond Tax 67-4-804. Additional tax imposed — Continuation of previous bond. If a bail bond is sought pending appeal of a conviction, an additional tax in the amount of twelve dollars ($12.00) shall be imposed, even if the bond is a continuation of a previous bond. History Acts 2001, ch. 456, § 5. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 8 Bail Bond Tax 67-4-805. Effect of nonpayment on validity and issuance of bond. Payment of the tax imposed by this part shall be a condition precedent to the validity of any bail bond under title 40, chapter 11. No bond shall issue unless the tax has been paid. History Acts 2001, ch. 456, § 6. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 8 Bail Bond Tax 67-4-806. Duty of bail bondsman to collect tax — Disposition of collections. It shall be the duty of the bail bondsman to collect the tax imposed by this part and to remit the tax to the department in such manner as the department may determine. A special account shall be created by the department into which all taxes collected under this part shall be deposited. All remitted revenues shall be maintained in such segregated account within the department until distributed or deposited, as required in this section, into the civil legal representation of indigents fund authorized and created by § 16-3-808. Such funds derived from the tax imposed and collected pursuant to this part shall be expended or distributed as follows: (1) Four percent (4%) shall be distributed to underwrite costs associated with development and provision of continuing education courses mandated by title 40, chapter 11, part 4; and (2) The remainder shall be used to provide legal representation to low-income Tennesseans in civil matters in such manner as determined by the supreme court as described in § 16-3-808(c); provided, that one-fourth (¼) of this remainder shall be allocated to an appropriate statewide nonprofit organization capable of providing continuing legal education, technology support, planning assistance, resource development and other support to organizations delivering civil legal representation to indigents. The remainder shall be distributed to organizations delivering direct assistance to clients with Legal Services Corporation funding as referenced in the Tennessee State Plan for Civil Legal Justice approved in March, 2001, by the Legal Services Corporation. History Acts 2001, ch. 456, § 7. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 9 Fantasy Sports Tax Act 67-4-901. Short title. This part shall be known and may be cited as the “Fantasy Sports Tax Act”. History Acts 2016, ch. 978, § 4. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 9 Fantasy Sports Tax Act 67-4-902. Part definitions. As used in this part: (1) “Adjusted revenues” means, for each fantasy sports contest, the amount equal to the total entry fees collected from all participants entering the fantasy sports contest less winnings paid to participants in the contest, multiplied by the resident percentage; (2) “Commissioner” means the commissioner of revenue; (3) “Entry fees” has the same meaning as defined in § 4-49-202; (4) “Fantasy sports contest” has the same meaning as defined in § 4-49-202; (5) “Fantasy sports operator” has the same meaning as defined in § 4-49-202; (6) “Player” has the same meaning as defined in § 4-49-202; (7) “Resident percentage” means, for each fantasy sports contest, the percentage, rounded to the nearest tenth of a percent (0.1%), of the total entry fees collected from Tennessee consumers divided by the total entry fees collected from all players, regardless of the players' location, of the fantasy sports contest; and (8) “Tennessee consumer” has the same meaning as defined in § 4-49-202. History Acts 2016, ch. 978, § 4; 2023, ch. 143, § 8. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 9 Fantasy Sports Tax Act 67-4-903. Tax on adjusted revenues of fantasy sports contest. (a) It is a privilege taxable by this state to offer or provide to Tennessee consumers fantasy sports contests. (b) A tax is imposed at the rate of six percent (6%) on all adjusted revenues of a fantasy sports contest offered by a fantasy sports operator to Tennessee consumers and is in addition to any other taxes levied pursuant to this title. (c) The tax imposed by this part shall be collected and administered by the commissioner. History Acts 2016, ch. 978, § 4. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ---------------------------------------------------------------------- Current through the 2026 Regular Session and the 2026 2nd Extraordinary Session. Tennessee Code Table of Contents PAW- ET TABLE OF CONTENTSTitle 67 Taxes And LicensesChapter 4 Privilege and Excise TaxesPart 9 Fantasy Sports Tax Act 67-4-904. Payment of tax. The tax levied under this part shall be due and payable quarterly. For the purpose of ascertaining the amount of tax payable under this part, it shall be the duty of each fantasy sports operator, on or before the twentieth day immediately following the end of each calendar quarter, to transmit to the commissioner, upon forms prescribed by the commissioner, returns, showing all receipts derived from offering or providing consumers with any of the privileges taxable under this part during the preceding calendar quarter and other necessary information, as determined by the commissioner, to determine the adjusted revenues of a fantasy sports contest offered by a fantasy sports operator. History Acts 2016, ch. 978, § 4. TENNESSEE CODE ANNOTATED Copyright © 2026 by The State of Tennessee All rights reserved About Privacy Policy Trust Center Cookie Policy Terms & Conditions ----------------------------------------------------------------------