BustaxguideBusiness Tax Guide
Dear Tennessee Taxpayer,
This business tax guide is intended as an informal reference for taxpayers who wish to gain a better understanding of Tennessee business tax requirements.It is not an all-inclusive document or a substitute for Tennessee business tax statutes or rules and regulations.
The information in this guide is current as of the date of publication.
Tax laws, their interpretation, and their application can change due to legislative action, reviews, and court decisions.
Periodically, registered taxpayers are mailed information letters with updates on tax laws and policies.Be sure to read any letter you receive carefully; this information may save you time and money.Informational publications are also available for specific industries.Contact the Taxpayer Services Division to obtain these publications.
The Department of Revenue offers a toll-free tax information line for Tennessee residents.
The number is (800) 342-1003.If calling from Nashville or outside Tennessee, you may call (615) 253-0600.
The Department of Revenue also offers a telecommunications device for the deaf (TDD) line at (615) 741-7398.
If you have questions, please do not hesitate to contact any of the offices listed Services Division
Tennessee Department of Revenue
(800) 342-1003 Taxpayer Services ) 253-0600 Andrew Jackson Building, 3rd Floor
500 Deaderick Street Nashville, Tennessee 37242-1099
Regional : Jackson: 1321 Murfreesboro Road
540 McCallie Avenue
Lowell Thomas State Office Building Nashville, TN 37217
Suite 350 225 Dr.Martin L.
37402 Suite 340
(423) 634-6266 Jackson, TN
Johnson City: Knoxville Memphis
204 High Point Drive 531 Henley Street 3150 Appling Road Johnson City, TN 37601 Room 606 Bartlett, TN 38133
(423) 854-5321 Knoxville, TN
37902 (901) 213-1400
BUSINESS were no changes to the contents of the 2012 Business Tax Guide revision
Potential future changes are detailed in the 2012 Legislative Suwebsite TAX
TABLE OF CONTENTS
THE BUSINESS TAX
Categories of Business
Dominant Business Activity 8
Gross Sales 8
Retail Sale 8
Retailer Price 8
Wholesale Sale 9
Services Rendered by Affiliated Entity 9
BUSINESS TAX RATES 10
Tax on Dominant Business Activity 10
The Minimum Tax 10
REFUNDS AND PAYMENT 11
Filing the Return 11
Mailing Date 11
Assessment in the Absence of a Return 11
Penalty and Penalty Waivers 12
Cash Discounts 13
Returned Merchandise 13
Contractor Payments to Subcontractors 13
Services Performed in Other States 13
School Sales 13
Bad Debts 13
Other Taxes Paid 14
Qualifying Blind Persons 15
Qualifying Veterans 15
Affidavit Required 15
Farm Exemptions 15
Qualified Amusement Activities 15
Other Exemptions 15
Receipts Excluded in Determining Gross Sales 15
Persons to Whom Business Tax is Not Applicable 16
Sales, Freight, and Destination Charges 16
Personal Property Taxes 17
Certain Special School District Taxes 17
Property Transferred to a Government Entity 17
TABLE OF CONTENTS
Privilege Taxes 17
Limitation of Credit 17
LOCAL TAX COLLECTIONS 18
Multi-vendor Sales Locations 18
Transient Vendors 18
Submitting Collections to the Department of Revenue 18
Taxation of Municipal Airports 19
Taxation of Traveling Photographers 19
Property Management Companies 19
SETTLEMENT UPON TERMINATION OR TRANSFER OF BUSINESS 20
Relocating a Business in the Same Locality 20
Distribution of Tax to Local Governments 21
Audits and Assessments 21
Right to a Conference 21
TAXPAYER BILL OF RIGHTS 23
THE BUSINESS TAX
The Business Tax Act makes it a taxable privilege to make sales or engage in any vocation listed in Tenn.Code Ann.Sections 67-4-708 and 67-4-710.
Any county or incorporated municipality in Tennessee may levy the privilege tax on those listed activities that take place within its geographical boundaries.[Tenn.Code Ann.
On August 19, 2003, the Attorney General issued an opinion that levy of the business tax by a county and by a municipality within that county does not constitute impermissible double taxation because (a) the taxing jurisdictions are not the same and (b) double taxation is not prohibited when the legislature intended that result.
Engaging in any business, business activity, vocation, or occupation described in Tenn.
Code Ann.Section 67-4-708(5) is declared to be a privilege for state purposes and taxable by the state alone.[Tenn.Code Ann.
The tax imposed under the Business Tax Act may be collected in addition to any other applicable privilege taxes established by law.The tax will 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 law.[Tenn.Code Ann.Section to engaging in business, every person taxable under the Business Tax Act, except for those taxable under Tenn.
Form 720bvi 01 2012Print Form44 Check box BELOW if filed on 720VI 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4% 4% 4% 4% Please Indicate: (PRESIDENT, OWNER, ETC.) Print Name: Government of the U.S.
BUREAU OF INTERNAL REVENUE Gross Receipts Annual Tax Return Use for filing receipts of $225,000 or less)(REV.01/2012)
M O N T H ACCRUAL GROSS RECEIPTS LESS MONTHLY EXEMPTION (2) (ex.
Standard $9,000, EDC, fishermen, lottery commissions, Affordable housing, reverse Osmosis, Etc ..) TAXABLE GROSS RECEIPT (3)
(Column 1 minus Column 2) TAX (4)
(COLUMN 3 Multiplied or By
4.5% or (.045) (5) AMOUNT DUE (6) PENALTY
(9) CREDITS (10) TOTAL AMOUNT DUESole Proprietor Partnership Corporation BUREAU OF INTERNAL REVENUE ST.THOMAS, U.S.V.I.00802 ST.CROIX, U.S.V.I.
00820 PLEASE REMIT BY DUE DATE TO: Social Security Number (SSN) Employer Identification Number (EIN)
4% or (.04)
Zip Code EXEMPTION CODESINSTRUCTIONS FOR TAXPAYERS-FORM 720-BV.I.Bureau of Internal Revenue Codes for Principal Business Activity and Principal Products or Services(select only one and enter on front of form)
The gross receipts tax falls into the
following two categories: businesses with gross receipts under $225,000 and businesses with gross receipts over $225,000.
Businesses with gross receipts over $225,000 can not use this form.
They must file monthly returns.
Only businesses with gross receipts under $225,000 can use this form.
This return is due January 30, 2012.Print Form.