More Hot Topics
Important Notice: Taxability of Hemp and Nicotine Products
December 9, 2020
Tennessee imposes a tax on the privilege of selling cigarettes and other tobacco products. Read more in important notice #20-21.
Important Notice: Short-Term Rental Unit Marketplaces
October 30, 2020
Public Chapter 787 (2020), effective January 1, 2021, requires short-term rental unit marketplaces to collect and remit local occupancy taxes for short-term rental units rented through a marketplace. The short-term rental unit marketplaces must register with the department and remit the local occupancy taxes. Read more in important notice #20-20.
Important Notice: Change of Local Tax Rate - Polk County
October 16, 2020
On August 6, 2020, voters in Polk County voted to increase the local sales tax rate from 2.25% to 2.75%. The effective date of the tax rate increase is November 1, 2020. For more information, please read important notice #20-19.
Free Monthly Webinars Starting October 2020
October 14, 2020
The Department of Revenue is offering free monthly tax webinars to the public. Learn more here.
Important Notice: 911 Surcharge Rate Change
October 10, 2020
Effective January 1, 2021, the statewide 911 surcharge rate will increase from $1.16 to $1.50. Read more in important notice #20-18.
Important Notice: Change of Local Sales Tax Rate
September 16, 2020
On August 6, 2020, voters in the Town of Rossville voted to increase the local sales tax rate from 2.25% to 2.75%. The effective date of the tax rate increase is October 1, 2020. Read more in important notice #20-17.
Tennessee Business Relief Program Expansion
August 14, 2020
There's been an expansion to the Tennessee Business Relief Program. Additional information is available on our website.
Important Notice: Interest Expense Carryforward
August 14, 2020
The federal Tax Cuts and Jobs Act amended Internal Revenue Code Section 163(j) to limit the business interest expense deduction. For tax years beginning after December 31, 2017, and before January 1, 2020, Tennessee recognized this federal limitation. However, for tax years beginning on or after January 1, 2020, Tennessee decoupled from the TCJA amendment of Section 163(j) and the business interest expense deduction is no longer limited. Read more here.
Important Notice: Tax Filing Deadline Extensions - April 2020 Tornadoes & Severe Storms
July 23, 2020
The Department of Revenue has issued a new important notice regarding the tax filing deadline extensions for franchise & excise taxes and Hall income tax in Bradley and Hamilton counties due to the April tornadoes and severe storms damage. Read more here.
Out-of-State Dealers and Marketplace Facilitators
July 16, 2020
The Department of Revenue has added more information on its website about out-of-state dealers and marketplace facilitators, including important notices and frequently asked questions.
2020 Sales Tax Holidays
June 29, 2020
During the 2020 legislative session, the Tennessee General Assembly expanded the sales tax holiday for 2020 only. This year, there will be two sales tax holidays. For more information, visit www.tntaxholiday.com.
Tennessee Business Relief Program Updates
June 29, 2020
The Department of Revenue has added more information about business relief payment amounts and eligibility notices to our website.
Tennessee Business Relief Program: $200 Million Available for Small Businesses Affected by COVID-19
June 3, 2020
Read more information about the Tennessee Small Business Relief Program in Governor Bill Lee's press release.
2020 Legislative Summaries Available
April 29, 2020
Summaries for the 2020 legislative session, for legislation signed into law through April 2020, have been posted to Revenue’s website here. The Tennessee General Assembly is in recess until June 2020 due to the COVID-19 pandemic. Additional summaries may be added when the legislature reconvenes.
Important Notice: Change of Local Tax Rate - McMinn County
April 1, 2020
The Department of Revenue posted a notice about a local sales tax rate increase in McMinn County, Tennessee. Read important notice #20-10 here.
Important Notice: Change of Local Sales Tax Rate - Maury County & Wilson County
March 31, 2020
The Department of Revenue has posted important notices detailing local sales tax rate changes for Maury County and Wilson County in Tennessee. You can read important notice #20-08 for Maury County here and important notice #20-09 for Wilson County here.
Natural Disaster Tax Relief Available
March 12, 2020
Consistent with the IRS’s decision to extend federal deadlines for those businesses located in a designated disaster area, the Department of Revenue has extended the franchise and excise tax and Hall income tax filing and payment deadlines to July 15, 2020. This extension applies to all taxpayers located in any disaster area designated by the Federal Emergency Management Agency (FEMA). Other tax deadline extensions are available, but they are not automatic. For more information, please see important notice #20-04.
State law also allows certain sales tax refunds to individuals receiving disaster assistance through the Federal Emergency Management Agency (FEMA). If you are an individual receiving FEMA assistance as result of the Middle Tennessee severe storms and tornadoes, you should complete this form to apply for a refund of sales tax paid on major appliances, residential building supplies, or residential furniture.
Important Notice: Mobile Telecommunications Services
March 10, 2020
Mobile telecommunications services sold to customers in Tennessee are subject to business tax. For more information, please see important notice #20-03.
Important Notice: Registration of Wine Brands
March 4, 2020
Beginning June 1, 2020, the Department will register both domestic and imported wine brands using the product's brand name, as listed in Box 6 on the product's Certificate of Label Approval (COLA). For more information, please see important notice #20-02.
FY 18-19 Annual Report
February 25, 2020
The FY 18-19 Annual Report is available on our website here.
Important Notice: Preemption of State Tax on Air Commerce Recreational Activities
January 24, 2020
Federal law preempts Tennessee amusement and business taxes on air commerce recreational activities. However, this preemption does not apply for Tennessee franchise and excise taxes. For more information, please see important notice #20-01.
Winter Revenue Review Posted
January 28, 2020
The winter edition of our quarterly newsletter, Revenue Review, has posted to the Department of Revenue's website here.
Tax Credit Report Posted
January 7, 2020
The Department of Revenue just posted its 2019 Tax Incentives Report on its website here. The department is required to report annually on tax incentives. Read more here.
Personalized Plate Application Now Available
December 11, 2019
The Department of Revenue now offers a personalized plate application.
Note: the personalized plate application is temporarily unavailable due to the damage to the license plate manufacturing facility experienced during the March 2020 tornado in Middle Tennessee. We apologize for the inconvenience.
Important Notice: Local Sales Tax Rate Change for Memphis
November 14, 2019
On October 3, 2019, voters in the City of Memphis voted to increase the local sales tax rate to 2.75%. The effective date of the tax rate increase is January 1, 2020. Read more on our website here.
Important Notice: Local Sales Tax Rate Changes for Athens and Sparta
October 10, 2019
Important notices detailing local sales tax rate changes in Athens, Tenn., and Sparta, Tenn. just posted to the Department of Revenue's website. Read the Athens notice here and the Sparta notice here.
New Important Notices Added
August 7, 2019
Several new important notices have been added to the Department's website. Click on each link below to read the notice:
Summer Revenue Review Available
July 29, 2019
The summer edition of the Department of Revenue's newsletter, Revenue Review, is now available on our website here.
Sales Tax Holiday Weekend is Last Weekend of July
July 10, 2019
Mark your calendars for Tennessee's once-a-year sales tax holiday weekend: July 26, 2019 - July 28, 2019. For more information, visit www.tntaxholiday.com or our press release here.
Important Notice: Global Intangible Low-Taxed Income, 2018 Repatriated Earnings
July 8, 2019
Two franchise and excise tax important notices have just posted to the Department of Revenue's website:
Important Notices: Agricultural Trailers, Agricultural Water, Physical Fitness Facilities, and Automated Car Wash Facilities
July 3, 2019
The Tennessee Department of Revenue has posted four important notices concerning recent sales tax law changes:
2019 Legislative Summaries
June 18, 2019
The Department of Revenue has posted 2019 legislative summaries to its website. Read the legislative summaries here.
Important Notice: Streamlined Sales Tax Delayed
June 13, 2019
The Tennessee General Assembly recently enacted legislation that delays the effective date of certain Tennessee sales and use tax provisions that would bring Tennessee sales and use tax law into compliance with the Streamlined Sales and Use Tax Agreement. The provisions are now set to take effect July 1, 2021. For more information, please see important notice #19-08.
Important Notice: Dumpsters Provided with Waste Removal Services
June 13, 2019
Effective July 1, 2019, Public Chapter 483 (2019) provides that a taxable lease does not include providing a dumpster or other container for waste or debris removal when the provider of the dumpster is exclusively responsible for delivery and pickup of the dumpster. For more information, please read important notice #19-07.
Important Notice: Local Rate Change, Smith County
June 13, 2019
In November 2018, voters in Smith County voted to decrease the local sales tax rate to 2.00%. The effective date of the tax rate decrease is July 1, 2019. For more information, please see important notice #19-06.
Post-Wayfair Guidance for Sales Tax Collection from Out-of-State Dealers
June 5, 2019
The Department of Revenue has posted two notices, #19-04 and #19-05 regarding sales tax collection from out-of-state dealers post Wayfair. You can also read frequently asked questions about this topic here. You may access our local tax rate lookup application and boundary database file here.
Important Notice: Change of Local Rate, Town of Oakland
June 4, 2019
On March 7, 2019, voters in the Town of Oakland voted to increase the local sales tax rate to 2.75%. The effective date of the tax rate increase is July 1, 2019. For more information, please read important notice #19-03.
Important Notice: Distillery Information Reports
May 23, 2019
Tennessee law requires the Department of Revenue to distribute four cents per liter of the wholesale gallonage tax (which is $4.40 per gallon) to each county in which a Tennessee distillery that manufactured spirits (on which the tax was paid) is located. In order for the Department to determine the appropriate amount to distribute to each county, distilleries are required to report the number of gallons of its product sold to wholesalers each month. Read important notice 19-02 for more information.
Annual Report Available
January 22, 2019
The Department of Revenue's fiscal year 2017-2018 annual report is available on our website here.
Important Notice: Festival Operator LBD License
January 14, 2019
Tennessee law authorizes a for-profit festival operator, or a third-party vendor who has contracted with the festival operator, to obtain a liquor-by-the-drink (LBD) license for sales of alcohol for consumption on the premises of a festival that lasts up to seven days. The Tennessee Alcoholic Beverage Commission (ABC) issues the license for a fee of $1,000 per day of the festival. For more information about this license, read important notice 19-01.
Winter 2019 Newsletter Now Available
January 8, 2019
The Department of Revenue just published our Revenue Review winter 2019 newsletter. To sign up to receive future newsletters, click here.
Important Notice: Distillery Free Samples
September 25, 2018
Distilleries must pay sales or use tax on the alcohol that they serve for free as samples to visitors to the distilleries. For more information, please read important notice #18-13.
Important Notice: Methanol Tax Exemption
September 6, 2018
Effective May 15, 2018, Public Chapter 924 exempts methanol from gasoline and diesel taxes, unless it contains or is blended with gasoline, diesel fuel, or other fuels or petroleum products. However, methanol is still subject to the special tax and environmental assurance fee. For more information, please read important notice #18-12.
South Dakota v. Wayfair Guidance Posted
August 23, 2018
The Department of Revenue just posted an important notice about sales tax collection from remote sellers, in light of the recent South Dakota v. Wayfair U.S. Supreme Court decision. You can read Important Notice 18-11, Sales Tax Collection by Out-of-State Dealers, here.
Important Notice: Interest Rate Increase
June 27, 2018
Beginning July 1, 2018, the applicable interest rate on all taxes collected or administered by the Department of Revenue is 8.75% (increased from 8%). Additionally, the applicable interest rate on all payments made under installment agreements with the Department of Revenue is 11.75% (increased from 11%). For more information, please see important notice 18-10.
Important Notice: Sales Tax and Physical Fitness Facilities
June 26, 2018
Under Tennessee law, dues or fees paid to health clubs or other facilities featuring exercise or other active physical fitness conditioning are subject to sales tax, unless a specific exemption applies. This includes dues or fees paid for use of the facility and services rendered at the facility. Such businesses include, but are not limited to, fitness centers, gyms, exercise clubs, and facilities offering exercise classes and other fitness conditioning, calorie burning, strength building, or body sculpting classes. For more information, please see important notice 18-09
Deadline Nearing for Sales Tax Relief Available to Sevier County Wildfire Victims
Refunds up to $3,500 Available on Certain Items; Refunds Apply to Primary and Secondary Homes
NASHVILLE - Attention, people who own homes in Sevier County and were affected by the 2016 wildfires: the application deadline for getting sales tax refunds on certain items is approaching quickly.
Wildfire victims can apply for a sales tax refund on their primary residence within one year of the date on their Federal Emergency Management Agency (FEMA) assistance letter. The deadline for submitting a claim on a secondary residence is April 1, 2018.
“We want to make Sevier County homeowners aware that they can apply for these special sales tax refunds,” Revenue Commissioner David Gerregano said. “This is an important opportunity that we do not want people to miss.”
Individuals whose primary and/or secondary residence was damaged or destroyed as a result of the Sevier County wildfires during November 28 - December 9, 2017 can receive a refund for Tennessee sales tax paid on certain items used to rebuild and restore their homes. The maximum refund available to any one residence is $3,500. Items that qualify for the sales tax refund include major appliances, furniture and building supplies used to restore, repair or rebuild a person’s primary or secondary residence.
A person filing a claim for a refund for his or her primary residence must include documentation verifying the assistance he or she received from FEMA. Individuals filing a claim for refund for their secondary residence must certify the damage or destruction was the result of the Sevier County wildfires and provide a copy of their fire department report, insurance adjuster’s report, or other documentation to verify the secondary residence was damaged or destroyed during the Sevier County wildfires. A person can file only one claim for a primary residence and only one claim for a secondary residence.
A person should wait until he or she has made all purchases before filing a claim for refund. Receipts and invoices should be compiled and tracked so that all eligible items purchased after the date of the disaster from all retailers can be submitted at the same time. For more information about refunds and how to apply, please visit our website. You may also read the Department’s important notice about this topic here.
The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws, as well as the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2017 fiscal year, it collected $13.9 billion in state taxes and fees, and more than $2.7 billion in taxes and fees for local governments.
Annual Report Now Available
January 18, 2018
The Department of Revenue has published an annual report for fiscal year 2016-2017 on its website here. This report includes an overview of the Department and its functions, informational highlights from the last fiscal year, as well as a comprehensive section that details how much money the Department collects and how it is allocated.
Administrative Hearing Office Fiscal Year 2017 Annual Report Posted
The Department of Revenue offers the Administrative Hearing Office as a forum where taxpayers can work with informal conference personnel to resolve disputes about tax assessments and tax refund claim denials. Hearing Office personnel are required to exercise independent judgment and to render decisions on individual issues based on the facts and the law. Read more about the Hearing Office's mission and role, as well as fiscal year 2017 statistics on conferences, in its annual report here.
Community Outreach: Assisting Amish Taxpayers
A mobile Department of Revenue office at Ethridge City Hall provides in-person assistance to taxpayers who may not have access to telephones, internet, or motorized transportation. Lawrence County is home to more than 250 Amish families, many of them are business owners with state tax obligations. This opportunity is not solely for the Amish. Learn more here.
Filing Deadline Extended for Taxpayers Affected by Natural Disasters
September 19, 2017
Out-of-state taxpayers affected by natural disasters -- such as the recent Hurricane Harvey and Hurricane Irma storms -- may request a filing extension for their Tennessee tax returns. Tennessee law allows natural disaster victims located in federally declared disaster areas to request a filing extension for state tax returns. For more information, please see important notice 17-19.
State Sales Tax Rate on Food Is 4%
August 22, 2017
Thanks to the IMPROVE Act, the state sales tax rate on food and food ingredients has been reduced from 5% to 4%. Learn more about this important change here.
Public Records Policy Now Available
June 27, 2017
The Department of Revenue has posted its public information policy, as well as other information about how to make a public records request, on its website. Please note that a public records request is not always the best way to get the information you need from the Department. For example, taxpayers do not need to send a public records request to obtain their own tax information or copies of their own tax returns. For motor vehicle records or information, please submit a Vehicle Information Request form. Media requests should be directed to Revenue’s Communication Office. To read more about public records requests, click here.
Interest Rate Information Updated
June 19, 2017
The Department of Revenue has posted new information about the interest rate on all taxes it collects or administers, as of July 1, 2017. Information about the interest rate for installment payments has also been updated. Read more under the "interest rate" heading here.
Greater Tax Relief Now Available for Those Sevier County Wildfires Affected
June 5, 2017
Sevier County residents affected by the wildfires of late 2016 can get larger sales tax refunds, thanks to the passage of recent legislation. The legislation also allows the refunds to apply on certain items purchased for a secondary home, as well as a resident’s primary home. For more information, please visit our website here.
Professional Privilege Tax Due Date Extended to June 30
May 31, 2017
The professional privilege tax due date is extended to June 30. The Department is experiencing high call volumes and an increased number of help desk tickets at this time. To accommodate taxpayers, the Department is extending the due date of the professional privilege tax. The Department is committed to assisting taxpayers as quickly as possible.
The professional privilege tax can be filed and paid on the Tennessee Taxpayer Access Point (TNTAP). A TNTAP logon is NOT required to file this tax. Watch a helpful video about how to file the professional privilege tax here.
Deadline Extended to March 31 for Filing without Penalty in TNTAP
March 21, 2017
Tax returns and payments for the February 2017 tax period will be considered as filed on time if they are submitted no later than March 31, 2017.
Department of Revenue Certificates Redesigned; Old Ones Still Valid If Not Expired
March 8, 2017
The Department of Revenue recently redesigned the certificates it issues. This includes blanket certificates of resale as well as exemption certificates. While these certificates now look different, the old certificates are still valid as long as the expiration date has not passed.
Due Dates for Calendar Year 2016 Tennessee Taxes is April 18, 2017
Wednesday, February 15, 2017
Due dates for certain Tennessee franchise and excise tax returns, business tax returns and Hall income tax returns will be April 18, 2017, instead of April 15, 2017, to be consistent with the Internal Revenue Service ("IRS") federal income tax filing deadline. For more information, please see important notice #17-03.
Tax Relief Available to Affected Sevier County Residents
Friday, December 30, 2016
Tax relief is available to Sevier County residents affected by the area’s recent wildfires. Tennesseans who live in any federally declared natural disaster area and who receive disaster assistance from the Federal Emergency Management Agency (FEMA) may request a refund of sales tax they paid on certain items. For more information about applying for a sales tax refund, please read our website as well as this important notice. Businesses who were impacted by the wildfires may also request an extension of time to file their tax returns by contacting the Department through Revenue Help or calling us at 615-253-0600.
Administrative Hearing Office Annual Report Available
Thursday, November 10, 2016
The Tennessee Department of Revenue offers the Administrative Hearing Office as a forum where taxpayers can work with informal conference personnel to resolve disputes about tax assessments and tax refund claim denials. Hearing Office personnel are required to exercise independent judgment and to render decisions on individual issues based on the facts and the law. Read more about the Hearing Office's mission and role, as well as fiscal year 2016 statistics on conferences, in the annual report here.
Reminder of Sales Tax Return Change
Tuesday, August 30, 2016
The Tennessee Department of Revenue would like to remind sales tax registrants that only SNAP sales are reported on Schedule A, Line C. All sales that were previously reported on Line C, including fuel sales, should be reported on Line I. For more information, see Important Notice #15-21.
Interest Rate Information Updated
Friday, June 17, 2016
The Department of Revenue has posted new information about the interest rates on all taxes it collects or administers, as of July 1, 2016. Information about the interest rate for installment payments has also been updated. Read more under the "interest rate" heading here.
Retail Accountability Program Updates
Wednesday, June 15, 2016
Wholesaler Reporting Changes
The Tennessee General Assembly recently passed legislation that makes changes to the expansion of the Retail Accountability Program. Beer and tobacco wholesalers should continue to report their sales to retailers. However, no reports will be required from wholesalers of food, candy or non-alcoholic beverages until July 25, 2016, when first and second quarter reports will be due. Information about additional changes will be added soon to the Retail Accountability page.
Assessments
The Retail Accountability Program will not issue any assessments based on reports from wholesalers of food, candy or non-alcoholic beverages until 2017. However, the program continues to match wholesaler reports of beer and tobacco sales to retailers' reported taxable sales. Assessments based upon the underreporting of beer and tobacco sales will continue to be issued. The calculation for these assessments may be found here.
2016 Legislative Summaries Now Available
Thursday, June 02, 2016
Brief summaries of 2016 legislative changes to laws that affect the Department of Revenue have posted to our website. You may find those legislative summaries here.
Date of Sales Tax Holiday Changes Due to Legislation
Friday, May 06, 2016
Recent legislation has changed the date of Tennessee’s annual sales tax holiday. Tennessee’s sales tax holiday will now be one weekend earlier than it has been in the past. Starting in 2016, and continuing annually, the sales tax holiday will be held during the last Friday in July through the following Sunday. Previously, the sales tax holiday weekend was the first full weekend of August. The dates for this year’s sales tax holiday are July 29 through July 31, 2016. The new law did not change any other aspects of the sales tax holiday. Read here for more information.
Liquor-by-the-drink Tax Filing Reminder
Thursday, April 28, 2016
The Department of Revenue would like to remind licensed liquor-by-the-drink taxpayers that their beginning and ending monthly inventories are required to be reported on their monthly returns. For more information, see this important notice.
Administrative Hearing Office Annual Report Available
Friday, March 04, 2016
The Tennessee Department of Revenue offers the Administrative Hearing Office as a forum where taxpayers can work with informal conference personnel to resolve disputes about tax assessments and tax refund claim denials. Hearing Office personnel are required to exercise independent judgment and to render decisions on individual issues based on the facts and the law. Read more about the Hearing Office's mission and role, as well as fiscal year 2015 statistics on conferences, in the annual report here.
Update on Rulemaking Process
Thursday, March 03, 2016
The Department of Revenue has begun the formal process for issuing updated rules for sales tax, franchise and excise tax and business tax, as well as a small number of administrative rules. Over the past several months, the Department has been in the process of receiving and evaluating informal feedback from parties who previously contacted the Department expressing interest in the process.
On February 25, the Department filed a Notice of Rulemaking Hearing with the Secretary of State. That filing can be found here. The Department anticipated the need for new or updated rules due in part to recent legislative changes. Additionally, a number of obsolete or outdated rules need to be updated or repealed.
The rulemaking hearing will be held on April 26 at 1 p.m. Central Time at the Andrew Jackson State Building in Nashville. The hearing will be held in Hearing Room 201. Oral or written comments are invited at the hearing. Additionally, written comments from the public may be submitted to Department prior to the hearing.
1099-K Filing Requirement Information
Tuesday, January 19, 2016
The Tennessee General Assembly recently enacted legislation which requires payment settlement entities, third party settlement organizations, electronic payment facilitators, and third parties acting on behalf of payment settlement entities to file duplicate federal 1099-K information returns with the Department of Revenue. Read more about this requirement by reading this important notice. You may access the 1099-K filing portal through this webpage.