Streamlined Sales Tax
The Streamlined Sales and Use Tax Project is a national effort by states to simplify and modernize administration of state and local sales and use tax laws. Tennessee has been an associate member state to the Streamlined Sales Tax Governing Board (SSTGB) since October 1, 2005.
In 2007 the General Assembly passed legislation (Public Chapter 602 (2007)) making numerous changes to bring Tennessee into compliance with the Streamlined Sales and Use Tax Agreement (SSUTA). The following sales and use tax law changes became effective on January 1, 2008: most of the SSUTA uniform definitions; provisions concerning the registration of farmers for sales tax exemption purposes; provisions concerning the optional use of the Streamlined Centralized Registration System; and provisions concerning the optional use of certified service providers (CSP) or certified automated systems (CAS) for sales tax collection and remittance. Other provisions of the 2007 legislation included delayed effective dates but were removed prior to becoming law on July 1, 2021. For more information, please see Important Notice #21-14.
“Sourcing” is how to determine which jurisdiction has the right to tax a sale. In 2023, the General Assembly passed legislation (Public Chapter 377 Sections 26, 27, 28, 30, 31, and 32 (2023)) that included sourcing provisions effective July 1, 2024. The legislation includes provisions for sourcing sales into Tennessee from out of state and sales from a place of business in this state that are delivered out of state consistent with SSUTA. Sales within Tennessee are sourced using origin sourcing to the seller’s or lessor’s place of business in Tennessee. More information will be available prior to July 1, 2024.