flag of tennessee2024 Tennessee Code Unannotated

Title 67 Taxes And Licenses

Chapter 1 General Provisions
Part 1 Miscellaneous Provisions
§ 67-1-101. Liberal construction of title — Incidental powers of commissioner — Chapter definitions.
  1. (a) It is declared to be the legislative intent that this title be liberally construed in favor of the jurisdiction and powers conferred upon the commissioner of revenue.
  2. (b) The commissioner shall have and exercise all such incidental powers as may be necessary to carry out and effectuate the objects and purposes of this title.
  3. (c) As used in this chapter, unless the context otherwise requires:
    1. (1) “Commissioner” means the commissioner of revenue; and
    2. (2) “Department” means the department of revenue.
History (9)
  • Acts 1919, ch. 1, § 16
  • 1921, ch. 113, § 20
  • impl. am. Acts 1923, ch. 7, §§ 2, 19, 24, 25
  • Shan. Supp., § 809a27
  • mod. Code 1932, § 1462
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 599, § 3
  • T.C.A. (orig. ed.), § 67-107.
§ 67-1-102. Powers and duties of commissioner and department of revenue.
  1. (a) The commissioner has the powers and shall perform the duties conferred and imposed in this chapter in addition to such other powers and duties as may be conferred and imposed upon the commissioner by law. The commissioner is vested with power to prescribe rules and regulations not inconsistent with law and to prepare such forms as the commissioner may deem proper for the administration of the duties of the commissioner's office.
  2. (b) The department has the power to:
    1. (1) Administer the assessment and collection of all state taxes, except those for which responsibility is expressly conferred by statute upon some other officer or agency;
    2. (2) Administer the assessment and collection of privilege taxes;
    3. (3) Receive state revenues collected by county officials and make and retain records of such receipts;
    4. (4) Investigate the tax systems of other states, and formulate and recommend to the governor such legislation as may be deemed expedient to prevent evasion of taxes, secure just and equitable taxation and improve the system of taxation in the state;
    5. (5) Examine, at any and all times, the accounts of any private corporation, institution, association or board receiving appropriations from the general assembly;
    6. (6) Require a complete record of the officers, assistants and employees appointed by the commissioners of the various departments, and require their salaries to be in conformity with the scale authorized;
    7. (7) Procure from any department or agency of the state, or any of its political subdivisions, a copy of the complete record maintained by it of any convictions for violation of any criminal laws by any person who has made application to the department for employment, for the exclusive use of the department in screening the applicant to determine suitability for an appointment in the department;
    8. (8) Compromise tax liabilities upon such terms as, in the commissioner's opinion, may seem to be in the best interests of the state; provided, that either the comptroller of the treasury or the attorney general and reporter may require that such compromises or any class of such compromises be subject to the comptroller's or attorney general's prior review and written approval. The commissioner may enter into agreements in connection with the compromises as may be necessary to effectuate the purposes of this subsection (b);
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    9. (9) Issue letter and revenue rulings at its discretion. A reasonable fee, not to exceed ten thousand dollars ($10,000) for expedited rulings requested pursuant to § 67-1-109(d) and not to exceed five hundred dollars ($500) for all other rulings, may be set and prescribed by the commissioner for issuing revenue and letter rulings; and
    10. (10) Enter into a contract to participate in the multistate tax commission joint audit program.
  3. (c) If a taxpayer challenges an assessment of taxes levied by local government that has been paid to the department, the commissioner shall notify the appropriate agencies of local government of such challenge, if the local amount in dispute exceeds twenty-five thousand dollars ($25,000) per county or city.
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History (33)
  • Acts 1921, ch. 113, § 2
  • 1923, ch. 7, §§ 12, 19, 24
  • 1923, ch. 106, § 1
  • Shan. Supp., §§ 373a44, 373a56, 809a8
  • Code 1932, §§ 269, 1478
  • Acts 1933, ch. 92, § 1
  • 1937, ch. 33, §§ 50, 51
  • 1937, ch. 291, § 1
  • 1945, ch. 57, § 1
  • 1947, ch. 17, § 3
  • C. Supp. 1950, §§ 255.50, 255.51 (Williams, §§ 255.53, 255.54, 269)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 5, § 1
  • 1965, ch. 154, § 1
  • 1970, ch. 500, § 2
  • 1970, ch. 559, § 4
  • 1973, ch. 151, § 1
  • 1973, ch. 368, § 1
  • 1973, ch. 373, § 1
  • 1977, ch. 106, § 1
  • 1978, ch. 531, § 1
  • 1978, ch. 599, § 1
  • 1980, ch. 460, § 1
  • 1981, ch. 34, § 1
  • 1983, ch. 148, § 1
  • T.C.A. (orig. ed.), §§ 4-305, 4-306, 67-101, 4-3-1903
  • Acts 1985, ch. 214, § 1
  • 1988, ch. 562, § 3
  • 1989, ch. 273, § 1
  • 2009, ch. 530, § 95
  • 2011, ch. 449, § 1
  • 2014, ch. 854, § 1.
§ 67-1-103. Study of tax laws — Report.
  1. (a) The commissioner shall make a careful study and investigation of the tax laws of other states.
  2. (b) It is the commissioner's duty to prepare and transmit to the general assembly on the first day of its organizational session a report of the commissioner's work and the work of the state board of equalization, and to make such recommendations as the commissioner deems best for the interest of the state.
History (21)
  • Acts 1921, ch. 113, § 2
  • impl. am. Acts 1923, ch. 7, §§ 19, 24
  • Acts 1923, ch. 106, § 1
  • Shan. Supp., § 809a8
  • Code 1932, § 1478
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 5, § 1
  • 1965, ch. 154, § 1
  • 1970, ch. 500, § 2
  • 1970, ch. 559, § 4
  • 1973, ch. 151, § 1
  • 1973, ch. 368, § 1
  • 1973, ch. 373, § 1
  • 1977, ch. 106, § 1
  • 1978, ch. 599, § 1
  • 1980, ch. 460, § 1
  • 1981, ch. 34, § 1
  • 1983, ch. 148, § 1
  • T.C.A. (orig. ed.), § 67-101
  • Acts 1984, ch. 832, § 1.
§ 67-1-104. Tax administration fund.
  1. (a) There is created, in the offices of the commissioner and the state treasurer, a special fund to be designated as the tax administration fund, to be kept separate and apart and used to defray the expenses incurred under the tax laws designated in this chapter.
  2. (b) All special appropriations and/or allowances for administration set out in §§ 4-7-112, 67-2-117, 67-2-118, 67-4-1025, 67-8-210, 67-8-401, and 67-8-403 and all other tax laws, the administration of which is entrusted to the commissioner, unless otherwise specifically provided, shall be paid, when and as capable of identification, into the tax administration fund, without deductions for any purpose whatsoever. All provisions of §§ 4-7-112, 67-2-117, 67-2-118, 67-4-1025, 67-8-210, 67-8-401, and 67-8-403 in conflict with this section shall yield to this section.
  3. (c) The expenses arising out of the enforcement of any such tax law, the administration allowance for which has been paid into the tax administration fund, shall be paid from the fund, and no part of such expense shall be paid out of the general fund, unless and until earmarked tax administration funds have been exhausted.
  4. (d) No funds earmarked by this section shall be used except in accordance with the limitations and stipulations of the general appropriations act, unless the governor, state treasurer and comptroller of the treasury certify that an emergency exists and define the exact amount necessary to meet the emergency. The governor, state treasurer and comptroller of the treasury have the right to pass such funds to the general fund whenever they see fit and proper.
History (4)
  • Acts 1933, ch. 75, §§ 1-4
  • mod. C. Supp. 1950, §§ 1811.1-1811.5
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), §§ 67-108 — 67-111.
§ 67-1-105. Hearings by commissioner.
  1. (a)
    1. (1) In the absence of any other provisions, and except as may otherwise be provided by law, whenever any person is aggrieved and desires a hearing with respect to the final resolution of any issue or question involved in connection with either an application for and entitlement to the issuance of, or the proposed revocation of, any certificate, license, permit, privilege or right, or relating to the confiscation of any property, or any other adverse action proposed or taken to implement any revenue regulatory or registration law administered by the commissioner, not including those laws relating to assessments or levies of taxes, fees, fines, penalties, interest, or the waiver of penalties, such person shall, upon written request made within ten (10) days of the action complained of, be afforded an opportunity for a formal hearing before the commissioner.
    2. (2) Such hearing shall be scheduled within a reasonable time following such request and shall be held after reasonable notice is given in writing by the commissioner to the person aggrieved and requesting such hearing, and such notice shall include a statement of the time, place and nature of the hearing.
    3. (3) Any person afforded such a hearing may respond in person or by attorney, may submit appropriate responsive pleadings, and may present evidence and argument on all issues or questions involved.
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  2. (b)
    1. (1) The commissioner may personally hold such hearings as the commissioner may deem proper.
    2. (2) In addition to holding hearings, the commissioner is authorized to designate a hearing officer who may hold such hearings in the place of and in the absence of the commissioner. This authority to designate a hearing officer is also extended to include the conduct of any hearing authorized to be held under any other law. Such hearing officer shall be deemed to be and have the same authority as assistants to the commissioner as provided in § 4-3-1901.
  3. (c)
    1. (1) The commissioner, or any hearing officer designated by the commissioner, may utilize prehearing conferences to simplify or clarify the issues or questions involved and to expedite disposition of a contested denial or revocation of any certificate, license, permit, privilege or right, or any other adverse action or determination of the department, except such as may be specifically excepted from review in this manner.
    2. (2) Unless otherwise precluded by law, informal disposition may be made of any contested action, issue or question by an agreed settlement or consent order.
  4. (d)
    1. (1) At the conclusion of any formal hearing or prehearing conference, or within a reasonable time thereafter, the commissioner shall issue such orders as, in the commissioner's discretion, the pleadings, evidence and argument justify.
    2. (2) If a formal hearing is held by a hearing officer, as authorized in this section, the hearing officer shall make findings of fact, conclusions of law and proposed settlements or orders based thereon for submission to the commissioner within a reasonable time thereafter. If a prehearing conference is held by a hearing officer, as authorized in this section, the hearing officer may make such findings, conclusions and proposed settlements or orders if the circumstances warrant. If the commissioner concurs, the commissioner shall issue the same finding, conclusion, proposed settlement or order made by the hearing officer; or the commissioner may, upon review of the record, make such findings and conclusions and issue such orders as, in the commissioner's discretion, the record justifies.
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History (20)
  • Acts 1921, ch. 113, § 2
  • impl. am. Acts 1923, ch. 7, §§ 19, 24
  • Acts 1923, ch. 106, § 1
  • Shan. Supp., § 809a8
  • Code 1932, § 1478
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 5, § 1
  • 1965, ch. 154, § 1
  • 1970, ch. 500, § 2
  • 1970, ch. 559, § 4
  • 1973, ch. 151, § 1
  • 1973, ch. 368, § 1
  • 1973, ch. 373, § 1
  • 1977, ch. 106, § 1
  • 1978, ch. 599, § 1
  • 1980, ch. 460, § 1
  • 1981, ch. 34, § 1
  • 1983, ch. 148, § 1
  • T.C.A. (orig. ed.), § 67-101.
§ 67-1-106. Optional reporting periods.
  1. (a) Upon written request, the commissioner has the discretion to authorize a person to file tax returns and pay taxes collectible by the department on an optional reporting period that is either shorter or not more than seven (7) days longer than the regular statutory reporting period provided by law. An optional reporting period must conform to the accounting period used by the taxpayer in the taxpayer's books of account.
  2. (b) A tax return and payment for an optional reporting period shall become delinquent if not filed or paid before that date that is the same number of days after the close of the optional reporting period as the regular statutory delinquency date is after the close of the regular reporting period. If an optional reporting period tax return or payment becomes delinquent, penalty and interest calculated under the regular statutory methods and rates shall be payable from the date of delinquency.
  3. (c) A person authorized to use an optional reporting period shall continue on that basis until such person notifies the commissioner of an intention to revert to the regular statutory reporting period, or receives authorization from the commissioner to use a different optional reporting period. A person who elects to file tax returns and make payments on an optional reporting basis period shall be required to use that period for reporting and paying all taxes collectible from such person by the department.
History (2)
  • Acts 1978, ch. 772, § 1
  • T.C.A., § 67-113.
§ 67-1-107. Mailed tax papers or payments — Determination of filing date.
  1. (a) Any tax report, claim, appeal, return, statement, remittance or other tax document required or authorized to be filed with or any payment made to the state or to any political subdivision of the state, that is:
    1. (1) Transmitted through the United States mail or any alternative delivery service as authorized by § 7502 of the Internal Revenue Code (26 U.S.C. § 7502) shall be deemed filed and received by the state or political subdivision on the date shown by the post office cancellation mark stamped on the envelope or other appropriate wrapper containing it;
    2. (2) Mailed but not received by the state or political subdivision, or where received and the cancellation mark is illegible, erroneous or omitted, shall be deemed filed and received on the date it was mailed, if the sender establishes by competent evidence that the tax report, claim, appeal, return, statement, remittance or other tax document was deposited in the United States mail; provided, that in cases of such nonreceipt of a tax report, claim, appeal, return, statement, remittance or other tax document required by law to be filed, the sender files with the state or political subdivision a duplicate thereof within ten (10) days after written notification is given to the sender by the state or political subdivision of the nonreceipt of such tax report, claim, appeal, return, statement, remittance, or other tax document; or
    3. (3) Transmitted as provided in subdivision (a)(1) to the state or political subdivision and postmarked or delivered no more than twenty-four (24) hours subsequent to the last date for the timely filing of such document or payment, shall not be considered delinquent and shall preserve any rights otherwise dependent on timely filing; however, any such document or payment, transmitted as provided in subdivision (a)(1) to the state or political subdivision and postmarked or delivered more than twenty-four (24) hours subsequent to the last date for timely filing, shall be subject to any late charges, penalty or interest otherwise chargeable without regard to the twenty-four-hour grace period as provided in this subdivision (a)(3).
  2. (b) When any tax report, claim, return, statement, remittance or other tax document is sent by United States registered mail, certified mail or certificate of mailing, a record authenticated by the United States postal service of such registration, certification or certificate shall be considered competent evidence, for the purposes of subdivision (a)(2), that the tax report, claim, return, statement, remittance or other tax document was mailed on the date of registration, certification or the certificate of mailing, if such record is accompanied by other competent evidence that the original of the duplicate furnished was contained in the envelope or other appropriate wrapper that is identified in the record so authenticated.
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History (5)
  • Acts 1969, ch. 202, §§ 1, 2
  • 1979, ch. 279, § 1
  • T.C.A., §§ 67-1716, 67-1717
  • Acts 1999, ch. 491, § 11
  • 2008, ch. 1106, § 1.
§ 67-1-108. Implementation and enforcement by commissioner — Guidance — Erroneous audit findings or advice — Applicability of taxability policy changes — Effect of provision.
  1. (a) It is the commissioner's duty to implement and enforce the laws administered by the commissioner under this or any other title. The commissioner shall enforce these laws in a manner consistent with all applicable statutes, rules, and regulations. When the commissioner publishes guidance regarding the taxability of any privilege, affected taxpayers are entitled to rely on the guidance. If the commissioner changes the guidance, then a taxpayer who relied on the guidance before it was changed is not liable for any assessment of additional tax, interest, or penalty that accrued before the guidance was changed and was unpaid because of the taxpayer's reasonable reliance upon the guidance.
  2. (b) If a taxpayer is either audited by the department or requests specific advice from the department and receives erroneous audit findings or advice, then the taxpayer is not liable for any assessment of additional tax, interest, or penalty attributable to the erroneous finding or advice furnished by the department, to the extent the following conditions are all satisfied:
    1. (1) The finding or advice was reasonably relied upon by the taxpayer. In determining whether the reliance was reasonable, the taxpayer is deemed to be aware of any changes in applicable law that occurred after the finding or advice was furnished by the department;
    2. (2) The additional assessment did not result from the taxpayer's failure to provide adequate or accurate information; and
    3. (3) The department provided the finding or advice to the taxpayer in writing or the department's records establish that the department provided erroneous verbal advice to the taxpayer. In furtherance of this condition, the department shall adopt formal audit procedures to allow taxpayers the right to memorialize audit findings in the final audit document prepared by the audit division upon completion of the audit.
  3. (c) If the commissioner changes the policy of the department as to the taxability of any privilege, then the policy change must be applied to the exercise of those privileges occurring after the date of the policy change only, unless otherwise provided by law.
  4. (d) The commissioner is encouraged to continue providing and publishing guidance and advice to taxpayers to assist with compliance with this state's tax statutes. Except as specifically provided in this section, the issuance of guidance, advice, or audit findings by the commissioner does not constitute new or revised enforcement of the law.
  5. (e) This section is intended only to prevent audit assessments against taxpayers that reasonably relied upon guidance, advice, or prior findings communicated to the taxpayer by the department. Such guidance, advice, or findings do not have the force and effect of law and do not independently establish a basis for a claim for refund under § 67-1-1802. Any claim for refund must be based on applicable statutes, rules, and regulations.
  6. (f) The department shall designate as public guidance applicable, published manuals, notices, and statements.
  7. (g) As used in this section:
    1. (1) “Audit finding” or “finding”:
      1. (A) Means the specific conclusions contained in the final document written by the audit division or hearing office and presented to the taxpayer upon completion of an audit or an informal conference conducted to review an audit;
      2. (B) Includes findings memorialized in the final document written by the audit division pursuant to the procedures established under subdivision (b)(3); and
      3. (C) Does not include the issuance of a license, certificate, or application approval;
    2. (2) “Published” means displayed on the department's website; and
    3. (3) “Published guidance” or “guidance”:
      1. (A) Means tax manuals, important notices, statements presented in a question-and-answer format, or other substantive statements regarding the taxability of a privilege that are published on the department's website; and
      2. (B) Does not include verbal comments from an auditor or letter rulings or revenue rulings, as described in § 67-1-109, that are redacted and placed on the department's website.
History (2)
  • Acts 1986, ch. 552, § 1
  • 2021, ch. 214, § 1.
§ 67-1-109. Revenue and letter rulings.
  1. (a) The commissioner has the power to issue revenue and letter rulings, at the commissioner's discretion.
  2. (b) Revenue rulings shall be statements regarding the substantive application of law and statements of procedure that affect the rights and duties of taxpayers and other members of the public. Revenue rulings shall be advisory in nature and shall not be binding upon the department.
  3. (c)
    1. (1) Letter rulings shall interpret and apply the tax law to a specific set of existing facts furnished by a particular taxpayer. These rulings shall be binding upon the department and are applicable only to the individual taxpayer being addressed.
    2. (2) Letter rulings can be revoked or modified by the commissioner at any time. Such revocation or modification shall be effective retroactively, unless the following conditions are met, in which case the revocation shall be prospective only:
      1. (A) The taxpayer must not have misstated or omitted material facts involved in the transaction;
      2. (B) Facts that develop later must not be materially different from the facts upon which the ruling was based;
      3. (C) The applicable law must not have been changed or amended;
      4. (D) The ruling must have been issued originally with respect to a prospective or proposed transaction; and
      5. (E) The taxpayer directly involved must have acted in good faith in relying upon the ruling, and a retroactive revocation of the ruling must inure to the taxpayer's detriment.
  4. (d) When prompt consideration of an issue is needed, a party can request an expedited letter or revenue ruling by expressly requesting an expedited ruling and by submitting the fee required to receive an expedited ruling, as such fee is established by the commissioner. When an expedited letter or revenue ruling is requested as provided in this subsection (d), the commissioner shall either issue a ruling within sixty (60) days of the date on which the request for an expedited ruling was submitted or deny the request and return the fee to the requesting party within seven (7) days of the date on which the request was submitted.
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  5. (e) Requests for revenue and letter rulings shall be submitted in the form and manner prescribed by regulations issued by the commissioner.
  6. (f) A reasonable fee may be set and prescribed by the commissioner for issuing revenue and letter rulings. The fee shall not exceed ten thousand dollars ($10,000) for expedited revenue or letter rulings requested pursuant to subsection (d) and shall not exceed five hundred dollars ($500) for all other revenue and letter rulings.
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History (2)
  • Acts 1988, ch. 562, § 1
  • 2011, ch. 449, § 2.
§ 67-1-110. Taxpayer bill of rights.
  1. (a) This section shall be known and may be cited as the “Tennessee Taxpayer Bill of Rights.”
  2. (b) The commissioner shall promulgate rules, regulations and adopt policies which would inform and advise taxpayers of their rights and would guarantee Tennessee taxpayers are treated with fairness, courtesy and common sense.
  3. (c) The rules, regulations, and policies shall be known as the “Tennessee Taxpayer Bill of Rights,” shall be consistent with existing law and shall include, but not be limited to, the following provisions:
    1. As a taxpayer of Tennessee, you have a right to:
    2. (1) Receive fair and courteous treatment from all the department's employees;
    3. (2) Receive tax forms and information written in plain language;
    4. (3) Receive prompt and accurate responses to all questions and requests for tax assistance;
    5. (4) Request public records;
    6. (5) Be assured that the department will keep confidential the financial information you give it;
    7. (6) Know the department's policies with respect to use and retention of personally identifiable information;
    8. (7) Receive tax notices that provide an explanation of the amount being billed;
    9. (8) Receive a clear set of rules and procedures to resolve tax problems that arise from the interpretation and administration of Tennessee's tax laws;
    10. (9) Dispute any proposed assessment by filing a timely request for an informal conference;
    11. (10) Know that the department's employees are not paid or promoted as a result of money billed to or collected from taxpayers;
    12. (11) Suggest ideas about how the department can better serve you;
    13. (12) Prompt notification by the department of any refund to which you are entitled;
    14. (13) Attend annual meetings held by the department in convenient locations to voice your suggestions;
    15. (14) A ten-day notice before a levy on assets is enforced;
    16. (15) A thirty-day notice before seized assets are liquidated;
    17. (16) A speedy, informal, and inexpensive review of a proposed assessment in an informal conference with an impartial representative of the department and to be represented by an attorney, certified public accountant, or other representative; and
    18. (17) Any other rights the commissioner deems necessary and appropriate.
  4. (d) This section only applies to the state government of Tennessee.
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History (5)
  • Acts 1992, ch. 857, §§ 1, 3, 6
  • 2004, ch. 959, § 49
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 54
  • 2014, ch. 854, § 2.
§ 67-1-111. Statewide uniformity of harvest or severance taxes.
  1. The rate of any tax levied on the activity of harvesting or severing from the ground row crops, timber or other plants shall be equal and uniform in every county in the state. However, any such tax levied by private act or otherwise prior to July 30, 1997, shall remain valid and in effect, but the rate of tax shall not be increased by private act after July 30, 1997. No such tax shall be levied by any city or county after July 30, 1997, unless authorized by general law.
History (1)
  • Acts 1997, ch. 561, § 1.
§ 67-1-112. Business tax — Taxes invoiced to customers to be included in tax base.
  1. The business tax is a privilege tax imposed upon persons engaged in various businesses and activities in the state. If a dealer invoices the business tax as a separate item and passes it on to the dealer's customers, then the tax shall be added to the gross receipts and be used in determining the tax base for both business tax and sales and use tax purposes.
History (1)
  • Acts 1997, ch. 561, § 2.
§ 67-1-113. Keeping and maintenance of records — Access to records — Penalties for noncompliance.
  1. (a) All persons and entities subject to any tax administered by the commissioner shall keep and preserve suitable records from which the taxpayer and the commissioner can determine the Tennessee tax liability, if any. All such records shall be open to examination at all reasonable hours by the commissioner or any authorized agents of the commissioner. If the taxpayer maintains any such records in an electronic format, the taxpayer shall comply with reasonable requests by the commissioner or the commissioner's authorized agents to provide those electronic records in a standard record format.
  2. (b) Any taxpayer who fails to comply with this section shall be assessed taxes, plus any applicable penalty and interest based on the best information available to the department; and the burden shall be on the taxpayer to show by clear and cogent evidence that the assessment is incorrect.
History (1)
  • Acts 2002, ch. 599, § 1.
§ 67-1-114. Extension of due date for certain tax returns.
  1. (a) With respect to taxes imposed under chapter 2 of this title, under chapter 4, part 20 or 21 of this title, or under chapter 8, part 1 of this title, whenever the due date for filing the return occurs on a legal holiday as defined under 26 U.S.C. § 7503, the commissioner is authorized, in the commissioner's discretion, to extend the due date of such return to the next succeeding day that is not a Saturday, Sunday or legal holiday.
  2. (b) With respect to taxes administered and collected by the commissioner of revenue, whenever the internal revenue service generally extends for all taxpayers the due date of a federal return or extends the due date of such return for a specified group of taxpayers such as, but not limited to, those affected by a federally declared disaster, the commissioner of revenue is authorized, in the commissioner's discretion, to extend the due date for the filing of specified returns to a date that shall not be later than the last day of the extension period specified by the internal revenue service.
  3. (c) For purposes of this section, “return” shall be deemed to include any remittance or other tax document, including, but not limited to, quarterly estimated payments and extension requests.
History (3)
  • Acts 2011, ch. 72, § 17
  • 2011, ch. 467, § 10
  • 2012, ch. 842, § 7.
§ 67-1-115. Electronic submission of documents and payments.
  1. (a) The commissioner is authorized to require that any return, report, claim, statement, application, or other document filed with the department, including any payment or remittance that accompanies such document, be submitted electronically in a manner approved by the commissioner beginning no sooner than ninety (90) days after the commissioner has certified that a system is in place for the electronic submission of such document or payment. Such certification shall be accomplished by the commissioner prominently posting a notice on the department's website.
  2. (b) If an electronic filing requirement imposed pursuant to the authority granted in subsection (a) creates a hardship upon the person subject to the requirement, such person shall be permitted to file the applicable document 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.
  3. (c) This section shall apply to any tax, regulatory, or other law administered by the department of revenue under this or any other title. This section shall not, however, be construed to supersede or otherwise affect any electronic filing or payment requirement already provided by law on January 1, 2012, including any penalty or waiver provisions connected therewith, and shall not require the certification of any system already in place before January 1, 2012.
  4. (d) Notwithstanding any law to the contrary, the cumulative total of manual handling fees charged to any one (1) taxpayer for all tax filings in any twelve-month period shall not exceed fifty dollars ($50.00).
  5. (e) The department shall notify each taxpayer that the cumulative total of all manual handling fees for all paper returns, reports, claims, statements, applications, or other documents filed with the department, including any payments or remittances that accompany such documents, shall not exceed fifty dollars ($50.00) for all such filings in any twelve-month period. The department shall include such notice in any one (1) regularly scheduled communication between the department and the taxpayer.
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History (1)
  • Acts 2012, ch. 657, § 1.
§ 67-1-116. Fees for processing of documents and payments.
  1. Notwithstanding any law to the contrary, the commissioner is authorized to deduct and retain from the proceeds of any tax administered and collected by the commissioner an amount necessary to offset the fee paid to a third party for the processing of documents and payments that are submitted electronically to the department.
History (1)
  • Acts 2012, ch. 657, § 2.
§ 67-1-117. Commissioner's authority to permit filing, submission or retention of documents in digital format.
  1. Notwithstanding any provision to the contrary, when any provision administered by the commissioner requires that any document be filed, submitted, or retained in paper, microfiche, or any other nondigital format, the commissioner is authorized to permit the filing, submission, or retention of such document in a digital format.
History (1)
  • Acts 2012, ch. 657, § 3.
§ 67-1-118. Review and report concerning credits found in §§ 67-4-2009, 67-4-2109, and 67-6-224.
  1. The commissioner of economic and community development, in consultation with the commissioner of revenue, shall conduct a review of the credits found in §§ 67-4-2009, 67-4-2109, and 67-6-224. The review shall evaluate the previous four (4) fiscal years and may include an evaluation of the purpose of the credit, foregone revenue to the state as a result of the credit, any benefits provided to the state as a result of the credit, and the estimated indirect economic impact of the tax credit, where applicable. The report shall include a recommendation to modify, discontinue, or take no action with respect to each credit. The departments shall prepare a report of their findings and recommendations and shall deliver such report to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the office of legislative budget analysis no later than January 15, 2017. The review required by this section shall be conducted by the departments, and the report delivered to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the office of legislative budget analysis, each four (4) years thereafter.
Backlinks (1)
History (1)
  • Acts 2015, ch. 504, § 1.
Part 2 Division of Property Assessments
§ 67-1-201. Creation — Director — Assistants — Expenses.
  1. (a) There is created in the office of the comptroller of the treasury a division of property assessments.
  2. (b) The comptroller of the treasury is authorized, with the approval of the state board of equalization, to appoint a director, who shall be the head of the division.
  3. (c) The division of property assessments is authorized to employ such assistants as are deemed necessary by the comptroller of the treasury to enable the division to efficiently and thoroughly perform its duties.
  4. (d) All expenses of the division, including salaries of its director and other employees, shall be paid out of moneys appropriated by the general assembly and made available to the comptroller of the treasury by law.
Backlinks (2)
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-231.
§ 67-1-202. Powers and duties.
  1. (a) The division of property assessments, under the supervision of the comptroller of the treasury, and subject to such policies, rules and regulations as may be adopted by the state board of equalization, has and shall perform the following duties, to:
    1. (1) Supervise and direct all reappraisals and revaluation programs to the cost of which the state of Tennessee contributes;
    2. (2) Prescribe rules and regulations approved by the comptroller of the treasury and not otherwise reserved for the state board of equalization and not inconsistent with laws that relate to the administration of the duties of assessors of property;
    3. (3) Prepare, furnish and require the use by assessors of such forms as may be required for the administration of the duties of assessors of property, and approve all forms, schedules and reports used by assessors and sent to taxpayers for reporting real or personal property;
    4. (4) Obtain evidence, information and statistics relative to the value of property to be assessed and equalized;
    5. (5) Require assessors to furnish reports under oath, giving specific information relating to assessments and other facts concerning properties and facts pertaining to the administration of the duties of the office of assessor;
    6. (6) Effect the assessment of all property in the state in accordance with the state constitution and all statutory provisions. The comptroller of the treasury shall exercise all powers conferred upon the comptroller of the treasury by law to the end that assessments in every taxing jurisdiction may be in accordance with the law;
    7. (7) Make an annual report, approved by the comptroller of the treasury, to the state board of equalization, with an appropriate summary of the work accomplished by the division, and make such recommendations to the state board of equalization as it may deem appropriate;
    8. (8) Assist the state board of equalization in the preparation of an assessment manual or manuals for the appraisal, classification and assessment of property for use by local assessors in making their assessments of particular classes or parcels of property, including the assessment of various kinds of personal property owned and used by corporations, partnerships and individuals engaged in business or professions for profit;
    9. (9) Assist the state board of equalization in conducting the educational and training courses for state and local assessing officials approved by the state board of equalization;
    10. (10) Require that counties or other taxing jurisdictions take whatever steps deemed necessary by the state board of equalization to assure that reappraisal and revaluation programs are maintained and updated in accordance with instructions, policies, rules and regulations as adopted by the state board of equalization;
    11. (11) At the direction of the state board of equalization, provide assessment services for any municipality which lies within the boundaries of two (2) or more counties and which has contracted for such services with the state board of equalization under § 67-1-307(a) and (b); and
    12. (12) At the direction of the state board of equalization, provide for the appraisal of leasehold interests, mineral interests, or other fractional interest in any county which has petitioned for such assistance to the state board of equalization under § 67-1-307(a) and (b).
  2. (b) The division of property assessments has the authority to go upon land in order to obtain information for the assessment of such property. If the landowner refuses or objects to entry upon the landowner's land, the division may petition the circuit or chancery court for an order allowing entry at a specified time for purposes of appraising the land and improvements for assessment purposes.
  3. (c) The division of property assessments shall have the unconditional right to intervene in any contested case before the state board of equalization and shall have standing and be recognized as a party under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. This unconditional right to intervene shall be liberally construed in favor of the division of property assessments and the intervention and participation in any contested case before the state board of equalization shall not be limited in any manner except as otherwise agreed to by the division of property assessments.
History (7)
  • Acts 1973, ch. 226, § 2
  • 1974, ch. 467, § 1
  • 1974, ch. 771, § 4
  • 1983, ch. 236, §§ 3, 4
  • T.C.A., § 67-232
  • Acts 1988, ch. 633, § 1
  • 2009, ch. 256, § 1.
§ 67-1-203. Duties of commissioner not duplicated.
  1. Nothing in §§ 67-1-201 — 67-1-204 shall be construed to diminish or to duplicate the duties of the commissioner with respect to assessment and collection of privilege taxes.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-233.
§ 67-1-204. Liberal construction.
  1. It is declared to be the legislative intent that §§ 67-1-201 — 67-1-204 be liberally construed in favor of jurisdiction and powers conferred upon the division of property assessments, the comptroller of the treasury and the state board of equalization, and they and each of them have and shall exercise all such incidental powers as may be necessary to carry out and effectuate the objectives and purposes of §§ 67-1-201 — 67-1-204, and to equalize the assessment of all property subject to taxation as provided by law.
Backlinks (2)
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-234.
§ 67-1-205. Development of assessment procedures — Rules and regulations.
  1. (a) It is the duty of the division of property assessments, under the direction and supervision of the state board of equalization, to undertake the development of methods and procedures to assist and guide local assessors of property and boards of equalization in officially administering the annual assessment process and in maintenance of assessments through a process of updating valuations, property ownership records and other information and records required by sound assessment practices.
  2. (b) The board may promulgate rules and regulations to provide for such a system of assessments and to prescribe the participation in the system of assessments of local assessors of property and boards of equalization.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-235.
§ 67-1-206. Information and records required.
  1. (a) The board may require that local assessors of local property and boards of equalization submit to the division of property assessments such information as may be necessary to provide for the analysis of assessments and the continued maintenance of ownership, appraisal, classification, and assessment information.
  2. (b) Based upon the information provided by local assessors of property and boards of equalization, the division of property assessments shall provide to such local taxing jurisdictions, as may be determined by the state board of equalization, the continued maintenance of ownership index cards, property record cards, assessment rolls, tax rolls, tax bills, tax receipts, and such other information as may be required by the state board of equalization.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-236.
Part 3 State Board of Equalization
§ 67-1-301. Meetings — Notice.
  1. (a) The state board of equalization shall meet in Nashville annually on the second Monday in August to set dates and places for its hearings of appeals from actions of local boards of equalization, and to consider such other matters as may come before the board.
  2. (b) A majority of the board shall constitute a quorum for the transaction of business.
  3. (c) It is the duty of the board to sit for a portion of its allotted time in the western division of the state and in the eastern division of the state, in addition to its sessions at Nashville, the time and place of the sessions to be held at other points than Nashville to be designated by the board, and publication of such time and place or times and places to be made through the press.
  4. (d) Taxpayers and property owners, without further notice than this section and due publication of the times and places of the meetings of the board as required by this section, are charged with notice of the sessions.
  5. (e) Such sessions shall continue from time to time and day to day until the equalization of all assessments is completed.
  6. (f)
    1. (1) In addition to the annual meeting required in subsection (a), the board shall meet at other times and places as the board may find necessary to carry out its duties and responsibilities.
    2. (2) Such meetings may be held upon the call of the chair or vice chair when the public business so requires.
    3. (3) A majority of the board shall constitute a quorum for the transaction of business.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-201.
§ 67-1-302. Expenses.
  1. (a) All necessary and proper expenses incurred by the board in the performance of its duties imposed under this title shall be paid out of the funds appropriated to the division of property assessments.
  2. (b) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 2
  • 1976, ch. 806, § 1(21)
  • T.C.A., § 67-202.
§ 67-1-303. Oath of board members — Compensation.
  1. (a) It is the duty of the members to discharge the duties of the board without compensation, except those expenses provided for in § 67-1-302 and except as provided in subsection (b), but before entering upon the discharge of such duties, the members shall take and subscribe to an oath that the members will fairly and impartially perform the duties imposed upon them by the laws of the state of Tennessee. The oath shall be taken before some person authorized by law to administer an oath and be filed in the office of the secretary of state for preservation.
  2. (b)
    1. (1) Persons who are not officials of the state of Tennessee and who may, from time to time, serve as members of the state board of equalization shall be paid at the rate of fifty dollars ($50.00) per day for each day or part of a day in attendance at meetings of the state board of equalization.
    2. (2) Such members who are not state officials shall be reimbursed necessary travel and per diem expenses as prescribed in the comprehensive travel regulations by the commissioner of finance and administration for employees of the state of Tennessee, during such service on the state board of equalization, or travel to or from a meeting of the state board of equalization.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-203.
§ 67-1-304. Vice chair.
  1. The board shall elect one (1) of its members to serve as vice chair, who shall preside in the absence of the chair.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-204.
§ 67-1-305. Powers of board.
  1. (a) The board is vested with the power to:
    1. (1) Make such rules and regulations and prepare such forms as it may deem proper for its use;
    2. (2) Obtain such evidence, information and statistics as may be deemed material as to the values, classifications and assessments of properties to be equalized;
    3. (3) Regulate and prescribe the method of taking evidence before the board, whether by affidavit, deposition or otherwise;
    4. (4) Send for papers and witnesses;
    5. (5) Compel the attendance of witnesses and administer oaths to witnesses; and
    6. (6) Do and perform all such acts as may be proper or necessary to accomplish the purpose of its creation.
  2. (b) The board may issue subpoenas for witnesses, and place them in the hands of any executive officer of any county in this state whose duty it shall be to immediately execute them, and make due returns of the subpoenas.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-205.
§ 67-1-306. Agents and assistants — Fees for witnesses, service of process.
  1. (a) All the agents and assistants appointed by the board have full power to administer oaths, take affidavits and depositions, and otherwise exercise all powers necessary to gather evidence by compelling the attendance of witnesses, the production of books and papers, and exercising all the powers of commissioners or clerks of courts in taking depositions.
  2. (b) The agents and assistants appointed by the board may issue subpoenas for witnesses and place them in the hands of any executive officer of any county whose duty it shall be to immediately execute the subpoenas and make due return of the subpoenas.
  3. (c) Any assistant appointed by the board to gather such evidence shall not receive any fee or emolument other than the assistant's agreed salary and actual necessary expenses.
  4. (d) Witnesses and sheriffs or constables executing process shall receive the same compensation as is fixed by law for like service in a court of record.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-206.
§ 67-1-307. Technical assistance to counties.
  1. (a)
    1. (1) The board is authorized to contract with the governing body of any county, or the governing body of any incorporated city or town, to furnish to any county or incorporated city or town such personnel, supplies, funds and technical assistance as may be needed to carry out a program of assessment, reassessment or equalization of property taxes.
    2. (2) Upon the petition by a municipality that lies within the boundaries of two (2) or more counties, the board may enter into a contract with such municipality to provide the assessment services allowed under § 67-1-513.
    3. (3) No contracts authorized by this section shall be entered into after January 1, 1974, by the board with any governing body other than those of counties, except that the board may enter into contracts with municipalities that lie within the boundaries of two (2) or more counties and who petition for assessment services allowed under § 67-1-513.
    Backlinks (2)
  2. (b) The board shall establish rules and regulations that shall constitute a part of every contract of assistance. Such rules and regulations shall provide that the over-all cost incurred by the board shall be repaid to the board and shall state the terms and conditions on which such assistance shall be rendered including the interest charge, if any, on loans made, and such other rules and regulations as will adequately ensure the satisfactory completion of such programs.
  3. (c) All funds appropriated to the board for the purpose of carrying out this section shall be kept in a special account by the board from which assistance shall be rendered, and funds repaid to the board under any contract shall be credited to the account and applied to any lawful obligation of the account.
  4. (d) In the event of a default by a county, town or city in the payment or repayment of funds due under a contract, the board shall notify the comptroller of the treasury of the default and the amount of the default; it shall then be the duty of the comptroller of the treasury to have paid over to the board out of any state-shared taxes due the defaulting county, city or town sums sufficient to pay the amount in arrears under the contract.
  5. (e) The assistance authorized by this section shall be supplemental to and administered separately from that authorized by title 4, chapter 3, part 51.
Backlinks (2)
History (5)
  • Acts 1973, ch. 226, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • Acts 1983, ch. 236, § 2
  • T.C.A., §§ 67-207 — 67-211
  • Acts 1984, ch. 832, § 3.
§ 67-1-308. Computer services available to localities.
  1. The board may provide the use of computer facilities and services reasonably available from the state of Tennessee to such local taxing jurisdictions as the board determines do not have available adequate computer or similar services, and shall make a charge for the reasonable cost of the computer facilities and services to such local taxing jurisdictions in accordance with services rendered.
History (2)
  • Acts 1973, ch. 226, § 2
  • T.C.A., § 67-212.
Part 4 County Boards of Equalization
§ 67-1-401. Composition of boards.
  1. (a)
    1. (1) The county legislative body of each county shall, at the April session of each even year, from the different sections of the county, elect, for a term of two (2) years, five (5) freeholders and taxpayers who shall constitute a county board of equalization.
    2. (2) In any county having a population greater than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census, the county board of equalization shall be appointed for a term of two (2) years, consisting of thirteen (13) freeholders and taxpayers, of which three (3) members shall be appointed by the county commission or governing board, four (4) members shall be appointed by the city council or governing board of the largest municipality, and one (1) member each shall be appointed by the city councils or governing boards of each of the six (6) largest remaining cities having a population greater than ten thousand (10,000).
    3. (3) In counties having one (1) or more cities with a population exceeding sixty thousand (60,000), according to the federal census of 1970 or any subsequent federal census, two (2) of the members of the board shall be appointed by the governing body of the largest city.
    4. (4) In counties having one (1) or more cities with a population of not less than ten thousand (10,000) nor more than sixty thousand (60,000), one (1) member of the board shall be appointed by the city council or governing body of each of the two (2) largest cities with a population in excess of ten thousand (10,000), within the county.
    5. (5) In counties that have no city with a population of ten thousand (10,000) or more, one (1) member of the board shall be appointed by the city council or governing board of the largest city or town in the counties.
    6. (6)
      1. (A) In a county with a metropolitan form of government, the charter for the metropolitan government may provide for the creation of a metropolitan board of equalization consisting of either five (5) or seven (7) members. Appointments to such board shall include members selected from minorities, as well as members of the sex that historically has been under-represented on the board of equalization. This subdivision (a)(5)(A) shall not apply to such counties having a population of less than ten thousand (10,000), according to the 1980 federal census or any subsequent federal census.
      2. (B) If a county with a metropolitan form of government having a population of not less than four hundred seventy thousand (470,000) nor more than five hundred thousand (500,000), according to the 1980 federal census or any subsequent federal census, creates a board of equalization consisting of seven (7) members, at least two (2) of the members of the board shall be appointed consistent with subdivision (a)(6)(A).
  2. (b) If the county legislative body fails to elect, the county mayor shall appoint the members of the board and shall also fill such vacancies as the vacancies occur.
  3. (c)
    1. (1) Magistrates or state, municipal or county legislative or executive officials or employees shall all be ineligible for positions on a county board of equalization, but this prohibition does not apply to persons who receive only compensation in lieu of expenses or a per diem payment for services. No member of any county board of equalization shall represent any taxpayer in an assessment appeal. This subsection (c) does not apply to municipal officials or employees whose city, located in a county with a population of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, is not eligible to appoint a member to the board.
    2. (2)
      1. (A) Notwithstanding other provisions of this subsection (c), except in counties having a population of more than eighty-five thousand (85,000) but less than eighty-six thousand (86,000), according to the 1990 federal census or any subsequent federal census, state employees may be appointed to the county board of equalization, if their employment responsibilities do not include property assessments, except that in counties having a population of more than eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, state employees shall not be appointed to the county board of equalization.
      2. (B) No state employee serving on the county board of equalization shall be compensated by the state for time served on the county board, except that an otherwise eligible employee may use accumulated annual leave to serve on the county board with approval of the employee's supervisor.
  4. (d) In addition to its regular appointments under this section, an appointing authority may designate one (1) or more alternates, and the board of equalization chair may call upon an alternate to sit for a regular member who becomes unavailable for a particular hearing due to disqualification or other reason. A duly appointed alternate shall be sworn in the same manner as regular members, and any action taken by a duly appointed alternate shall be as effective as if taken by the unavailable individual.
History (15)
  • Acts 1973, ch. 226, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 16, 36
  • Acts 1982, ch. 832, § 1
  • T.C.A., § 67-251
  • Acts 1985, ch. 115, § 1
  • 1988, ch. 793, § 1
  • 1991, ch. 419, § 1
  • 1992, ch. 866, § 1
  • 1997, ch. 419, § 1
  • 2000, ch. 957, §§ 1, 2
  • 2003, ch. 90, § 2
  • 2003, ch. 363, § 1
  • 2006, ch. 734, § 1
  • 2013, ch. 209, §§ 1, 2
  • 2017, ch. 231, § 1.
§ 67-1-402. Oath of members.
  1. (a) Each member of the county board of equalization, before entering upon the discharge of the duties of office, shall, before the county mayor or other official authorized by law to administer oaths, take and subscribe to the following oath, to be filed with the county clerk, viz.:
    2. “State of Tennessee,
    3. County.
    4. I, , member of the board of equalization of such county do hereby solemnly swear (or affirm) that I will carefully examine, compare and equalize the assessments of such county in accordance with the constitution and the laws of the state of Tennessee; and that to the best of my knowledge and ability I will faithfully, honestly and impartially perform all duties imposed upon me as a member of the board by the laws of the state of Tennessee.
    5. Signed Board member
    6. Sworn to before me, this the day of , .”
  2. (b) On request of the state board of equalization, the county clerk shall make certified copies of such oaths and forward the copies to the state board of equalization. It is unlawful for any member of a county board to enter upon or undertake to discharge the duties of office without first taking, before entering upon the duties of office, the oath provided in subsection (a).
History (5)
  • Acts 1973, ch. 226, § 2
  • impl. am. Acts 1978, ch. 934, §§ 16, 22, 36
  • T.C.A., § 67-252
  • Acts 2003, ch. 90, § 2
  • 2013, ch. 209, § 3.
§ 67-1-403. Officers — Quorum — Record of daily transactions — Compensation — Training.
  1. (a) Each county board of equalization shall elect one (1) of its members chair and one (1) secretary of the board.
  2. (b) A majority of the board shall constitute a quorum for the transaction of business.
  3. (c) The board shall keep a daily record of its transactions, and sign the record.
  4. (d) Board members shall be paid by the county a compensation for their services. The county legislative body shall by resolution establish the compensation of the members and the chair of the county board of equalization.
  5. (e)
    1. (1) The county mayor shall require board members and county board hearing officers to complete annual continuing education and training on duties and responsibilities of their office as a condition of appointment or continued service.
    2. (2) The county legislative body shall by resolution establish the minimum of at least four (4) hours of training for board members to complete annually and minimum recordkeeping requirements related to members' certificates of attendance.
    3. (3) The subjects for the training and continuing education shall include board governance, open meetings requirements, and other topics reasonably related to the duties of the members of the county board of equalization.
    4. (4) Any association or organization with appropriate knowledge and experience may prepare a training and continuing education curriculum for county boards of equalization covering the subjects set forth in subdivision (e)(3) to be submitted to the comptroller of the treasury for review and approval prior to use.
    5. (5) Mandatory annual continuing education and training is only required under this subsection (e) to the extent that such education and training is provided by the comptroller of the treasury free of charge.
History (6)
  • Acts 1973, ch. 226, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A., § 67-253
  • Acts 1997, ch. 168, § 1
  • 2014, ch. 691, § 1
  • 2017, ch. 13, § 1.
§ 67-1-404. Sessions.
  1. (a) The county board of equalization and the board of equalization of any metropolitan government organized and existing pursuant to title 7, chapters 1-3 shall, on June 1 each year, meet and sit in regular session as necessity may require until the equalization has been completed; provided, that in any county having a population of not less than twenty-six thousand (26,000) nor more than twenty-six thousand one hundred (26,100), according to the 1970 federal census or any subsequent federal census, the county legislative body may by resolution or ordinance set an earlier date for such board's initial meeting.
  2. (b)
    1. (1) The board shall not sit longer than:
      1. (A) Six (6) days in counties having a population of ten thousand (10,000) or less, according to the 1970 federal census or any subsequent federal census;
      2. (B) Ten (10) days in counties having a population of over ten thousand (10,000) and under twenty thousand (20,000), according to the 1970 federal census or any subsequent federal census;
      3. (C) Fifteen (15) days in counties having a population of over twenty thousand (20,000) and under thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census; and
      4. (D) For a number of days fixed by the respective county legislative bodies, but not in excess of thirty (30) days, in counties having a population of over thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census.
    2. (2) The county mayor, when the county legislative body cannot act, may extend the time or may call the board in special session at any time, if in the county mayor's judgment the public welfare requires it.
  3. (c) Any county board of equalization, having jurisdiction over a municipality with a beginning tax due date different from that of the county, shall meet as required by the county legislative body, but at least one (1) month prior to the applicable beginning tax due date.
Backlinks (1)
History (5)
  • Acts 1973, ch. 226, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 16, 36
  • Acts 1980, ch. 856, § 1
  • T.C.A., § 67-254
  • Acts 2003, ch. 90, § 2.
Part 5 Assessors of Property
§ 67-1-501. Construction.
  1. It is declared to be the legislative intent that §§ 67-1-502 and 67-1-508 — 67-1-513 be liberally construed in favor of jurisdiction and powers conferred upon the division of property assessments and the state board of equalization; and the division and the board and each of the entities shall have and exercise all such incidental powers as may be necessary to carry out and effectuate the objectives and purposes of §§ 67-1-502 and 67-1-508 — 67-1-513, and to equalize the assessment of all property subject to taxation as provided by law.
History (2)
  • Acts 1973, ch. 226, § 3
  • T.C.A., § 67-339.
§ 67-1-502. Election of assessor — Term.
  1. An assessor of property shall be elected by the qualified voters of each county and shall hold office for a term of four (4) years and until the assessor's successor is elected and qualified.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 3
  • 1978, ch. 934, § 25
  • T.C.A., § 67-301.
§ 67-1-503. County legislative body members ineligible.
  1. No member of the county legislative body shall be eligible to hold the office of assessor.
History (3)
  • Acts 1973, ch. 226, § 3
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A., § 67-302.
§ 67-1-504. Vacancies.
  1. (a) In cases of vacancies, the county legislative body, at its first session after the vacancy occurs shall elect an assessor who shall hold office until the September 1 following the next regular August election.
  2. (b) The assessor shall be elected by the qualified voters at the first regular August election coming after the vacancy, and shall hold office from the following September 1 to the close of the term for which the predecessor was elected.
  3. (c) If the office of the assessor becomes vacant due to death, resignation or removal, the duties of the assessor shall be temporarily discharged by the chief deputy, or deputy designated as temporary successor by the assessor of property in writing, until a successor assessor is elected or appointed and qualified according to law.
History (5)
  • Acts 1973, ch. 226, § 3
  • 1978, ch. 934, § 26
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A., § 67-303
  • Acts 1993, ch. 315, § 20.
§ 67-1-505. Surety bond.
  1. (a) Before entering into the duties of the office, the county assessor shall take an oath to support the constitutions of this state and of the United States, and an oath of office pursuant to § 67-1-507. Each county assessor shall enter into an official bond, payable to this state, in the sum of fifty thousand dollars ($50,000) and conditioned as required by § 8-19-111. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.
  2. (b) Each county assessor of the state shall, on or before the January 1 following election, execute and enter into a new bond in the amounts provided by law and conditioned as directed in subsection (a), and it is unlawful after that date for any assessor to perform the duties of assessor without giving such bond. If such bond is not made by that date, that office shall become vacant and shall be filled as may be provided by law.
History (11)
  • Acts 1973, ch. 226, § 3
  • 1976, ch. 616, § 2
  • 1977, ch. 270, § 22
  • 1978, ch. 689, §§ 11, 12
  • impl. am. Acts 1978, ch. 934, §§ 7, 16, 22, 36
  • T.C.A., §§ 67-304 — 67-306
  • Acts 1989, ch. 591, §§ 1, 6
  • 1998, ch. 677, § 19
  • 2003, ch. 90, § 2
  • 2012, ch. 974, §§ 3, 4
  • 2023, ch. 207, § 15.
§ 67-1-506. Deputy assessors and secretaries.
  1. (a)
    1. (1) In order to assure that each county assessor of property shall have a minimum staff to assist the county assessor in carrying out the duties and responsibilities required by law, the assessor is authorized to appoint at least one (1) deputy assessor for each four thousand five hundred (4,500) parcels of property, as determined by the division of property assessments, over and above the first four thousand five hundred (4,500) parcels of property within the assessor's taxing jurisdiction.
    2. (2) Each deputy assessor shall have the same power, duties and liability of the assessor of property with respect to the appraisal, classification, and assessment of property.
  2. (b)
    1. (1) In any county where the assessor does not qualify for a deputy assessor under this section, the assessor is authorized, with the approval of the county legislative body, to employ or appoint a secretary to assist the assessor in the operation of the assessor's office. The compensation of such secretary shall be fixed by the county legislative body and paid out of county funds.
    2. (2) The assessor shall employ such additional staff as the assessor deems necessary and establish rates of compensation for all employees within the appropriation established for the assessor's office by the county legislative body.
  3. (c) The assessor of property shall be liable for any malfeasance, misfeasance, or nonfeasance of the assessor's deputy.
History (6)
  • Acts 1973, ch. 226, § 3
  • 1974, ch. 480, § 1
  • 1974, ch. 771, § 15
  • 1976, ch. 719, § 1
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A., §§ 67-321, 67-322.
§ 67-1-507. Oath of office.
  1. (a) Each assessor shall take and subscribe to the following oath of office, before the county mayor or other official authorized by law to administer oaths, which oath shall be attached to and filed with the bond of the assessor in the office of the county clerk, viz.:
    1. “I, , assessor of property (or deputy assessor) of the county of , state of Tennessee, do solemnly swear (or affirm) that I will appraise, classify, and assess all taxable property of the county of , according to the Constitution of Tennessee and the laws of the state; that I will truly report all persons who fail or refuse to list their taxable property or who have to my knowledge returned a fraudulent list; and that I will faithfully, impartially and honestly discharge my duties as assessor of property according to the law, to the best of my knowledge and ability, without fear, favor or affection, so help me God.
    2. Signed Assessor of Property
    3. Subscribed to and sworn before me this day of , 20.”
  2. (b) Each deputy assessor shall likewise take the oath and file the oath with the county clerk before entering upon the discharge of duties.
Backlinks (1)
History (5)
  • Acts 1973, ch. 226, § 3
  • 1981, ch. 305, § 1
  • T.C.A., § 67-331
  • Acts 2003, ch. 90, § 2
  • 2013, ch. 209, § 4.
§ 67-1-508. Compensation.
  1. (a) The assessor of property of each county or metropolitan government shall receive as compensation an annual salary as established by § 8-24-102.
  2. (b) The legislative or governing bodies of counties and metropolitan governments may from time to time fix the compensation of assessors as may, in their judgment, be necessary and proper in order to attract or retain the service of assessors of professional competence, technical skills and needed administrative abilities, any private acts, charter provisions or other legal restrictions to the contrary notwithstanding.
  3. (c)
    1. (1) Out of funds available to the state board of equalization or division of property assessments, the state board may provide grants to counties to fund incentive increases of compensation for those assessors and their deputies who successfully complete certain courses of study and field training, and attain certain levels of increased competence and technical skills as prescribed and provided by the state board of equalization. Grants made pursuant to this subsection (c) shall be used only as a cash salary bonus supplement to the assessor or deputy, and shall not be used to supplant existing salaries or other incentives or as substitutes for normal salary increases periodically due to assessors or their deputies.
    2. (2) Any assessor or deputy assessor who has completed the necessary courses of study and training and has been designated by the International Association of Assessing Officers as a certified assessment evaluator shall receive additional compensation of not less than seven hundred fifty dollars ($750) per annum or ten percent (10%) of the assessor's or deputy assessor's normal annual salary otherwise provided by law, but not to exceed one thousand five hundred dollars ($1,500) per annum under rules established by the state board of equalization.
    3. (3) Any assessor or deputy assessor who has completed the necessary courses of study and training and has been designated by the Tennessee Certified Assessor's Program as a “Tennessee Master Assessor” shall receive additional compensation of one thousand dollars ($1,000) per annum.
    4. (4) Any assessor or deputy assessor who has completed the necessary courses of study and training and either been designated by the Tennessee Certified Assessor's Program as a Tennessee certified assessor, or has been designated by the International Association of Assessing Officers as a residential evaluation specialist shall receive additional compensation of seven hundred fifty dollars ($750) per annum.
Backlinks (4)
History (7)
  • Acts 1973, ch. 226, § 3
  • 1982, ch. 708, § 1
  • T.C.A., § 67-332
  • Acts 1984, ch. 674, § 1
  • 1996, ch. 936, § 1
  • 2006, ch. 901, § 1
  • 2007, ch. 602, § 50.
§ 67-1-509. Qualifications — Confidentiality of examinations.
  1. (a) To assure that the assessment functions will be performed in a professional manner by competent assessors, meeting clearly specified professional qualifications, the state board of equalization is authorized and directed to prescribe educational and training courses to be taken by assessors and their deputies, and to specify qualification requirements for certification of anyone who is to be engaged to appraise and assess property for the purpose of taxation. Such educational and training courses shall include information on the assessment of conservation and scenic easements and other instruments that limit or restrict the use, management, alteration, demolition or transfer of property for the purpose of preserving property that is of historical, architectural, archaeological or cultural value.
  2. (b) The state board of equalization may authorize the division of property assessments to administer this function under the control and supervision of the state board, to specify the certification requirements of persons who are to be certificated as qualified as local assessors of property, and to prescribe qualifications of those who are to be certified as qualified to act as deputy assessors.
  3. (c) Any specifications or qualifications that shall be determined upon as a prerequisite to receiving and holding a certificate from the state board as qualified to be an assessor or a deputy assessor of property shall be approved and promulgated by the state board of equalization.
  4. (d) It is the legislative intent that this section shall not serve to prevent any duly elected or appointed assessor of property from assuming such office or performing the assessor's legally specified duties.
  5. (e) Notwithstanding § 4-19-101, all examinations administered by the comptroller of the treasury as part of the assessment certification and education program, including, but not limited to, the total bank of questions from which the tests are developed, the answers, and the answer sheets of individual test takers, shall be confidential and shall not be public records or state records open for public inspection pursuant to § 10-7-503.
History (4)
  • Acts 1973, ch. 226, § 3
  • T.C.A., § 67-333
  • Acts 1988, ch. 531, § 1
  • 2015, ch. 211, § 1.
§ 67-1-510. Certification and identification of assessors and deputies.
  1. (a) The state board of equalization has the power and the duty to prescribe the educational and training courses to be taken by assessors and their deputies, with a long-range view of gradually raising the professional standards and qualifications required, and has the power and duty to issue certificates to those it has found to be qualified to be assessors and deputy assessors on the basis of their successful completion of such educational and training courses.
  2. (b) The state board shall issue identification cards to all assessors and their deputies. Such identification card shall identify the holder as an assessor or the assessor's deputy. Furthermore, the state board shall issue identification decals for the motor vehicles used by an assessor or the assessor's deputy. Such decal shall identify the motor vehicle as one used by an assessor or the assessor's deputy in the performance of the assessor's or deputy assessor's official duties.
History (3)
  • Acts 1973, ch. 226, § 3
  • 1978, ch. 624, § 1
  • T.C.A., § 67-334.
§ 67-1-511. Revocation of certificate.
  1. The state board of equalization, subject to proper rules and regulations to be published and furnished to every assessing official, has the power to invalidate the certificate of any assessor or deputy assessor who willfully fails or refuses to perform such person's duties faithfully in accordance with the rules, regulations and instructions promulgated and issued by the state board of equalization, its manuals of assessment and the laws of the state governing the assessment of property and the duties of each assessor and deputy assessor.
History (2)
  • Acts 1973, ch. 226, § 3
  • T.C.A., § 67-335.
§ 67-1-512. Schools and field training courses.
  1. The state board, out of funds available to it by appropriation, may enter into contracts with educational or professional institutions or organizations conducting schools and field training courses for all Tennessee assessors and their deputies in keeping with standards and qualifications adopted or to be adopted.
History (2)
  • Acts 1973, ch. 226, § 3
  • T.C.A., § 67-336.
§ 67-1-513. Office consolidation.
  1. (a)
    1. (1) As soon as practicable, and in no event later than January 1 next following completion of countywide reappraisal of property in a county, and establishment of an effective plan of updating of assessments for that county certified by the state board of equalization, all municipal and other assessment offices in that county shall be consolidated with the office of the county assessor and thereafter there shall be only one (1) assessment office in that county, and a single roll shall be furnished at the cost of reproduction for use by all taxing jurisdictions within that county.
    2. (2) However, any municipality that lies within the boundaries of two (2) or more counties may maintain an assessment office separate from the assessment offices of the counties in which such municipality lies, or may contract with the state board of equalization for assessment services for the municipality pursuant to § 67-1-307.
  2. (b)
    1. (1) Upon the consolidation of all municipal and other assessment offices within any county with the office of the county assessor of property, all local boards of equalization shall be consolidated with the county board of equalization, and thereafter there shall be only one (1) local board of equalization in the county.
    2. (2) However, if any municipality lying within the boundaries of two (2) or more counties maintains an assessment office separate from the assessment offices of the county in which such municipality lies, or if such municipality contracts with the state board of equalization for the provision of assessment services under § 67-1-307, such municipality shall have a city board of equalization separate from the local boards of equalization of such counties.
Backlinks (4)
History (4)
  • Acts 1973, ch. 226, § 3
  • 1976, ch. 609, §§ 1, 2
  • 1983, ch. 236, § 1
  • T.C.A., § 67-337.
§ 67-1-514. Changes in record-keeping systems.
  1. Whenever the county legislative body has inaugurated, set up or approved any system of keeping records in the office of the assessor of property of such county, when such system has been approved by the comptroller of the treasury, such system may not be changed, altered, or abolished without approval of the comptroller of the treasury.
History (4)
  • Acts 1973, ch. 226, § 3
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A., § 67-338
  • Acts 2008, ch. 971, § 1.
§ 67-1-515. Qualifications for office.
  1. To qualify for the office of assessor of property, a person must be a qualified voter of the county and a resident of the county for one (1) year prior to the date of the qualifying deadline for running as a candidate for assessor of property.
History (1)
  • Acts 2022, ch. 809, § 7.
Part 6 General Revenue Authority of Counties
§ 67-1-601. Counties may impose taxes.
  1. A county legislative body may impose taxes for county purposes, and fix the rate of taxation, at its first session every year; and, if the legislative body omits such duty at the first session, it shall perform it at any subsequent quarterly session.
History (5)
  • Code 1858, § 489 (deriv. Acts 1837-1838, ch. 135, § 2)
  • Shan., § 649
  • Code 1932, § 1048
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A. (orig. ed.), § 67-1005.
§ 67-1-602. Limit on county taxation — Equal and uniform taxation.
  1. A county legislative body shall not levy any higher pro rata of taxes on any species of property or privilege than that fixed for the state, but the percentage of such levy, as compared with the state tax, shall be equal and uniform.
Backlinks (1)
History (5)
  • Acts 1869-1870, ch. 81, § 9
  • Shan., § 652
  • mod. Code 1932, § 1051
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A. (orig. ed.), § 67-1006.
§ 67-1-603. Revenue used to discharge debt — Special funds.
  1. (a) All counties that levy and collect taxes for special purposes or to pay off any bonded indebtedness are empowered, through the county legislative bodies, to appropriate and use the funds levied and collected for such purposes to discharge any outstanding bonded indebtedness of the counties.
  2. (b) Such counties have the authority, through the county legislative bodies, to place all the funds levied and collected for special purposes in one (1) fund, to be known as the special fund of the counties, and to appropriate and use the money for the purpose of discharging any bonded indebtedness of the counties.
History (5)
  • Acts 1907, ch. 573, §§ 1, 2
  • Shan., §§ 648a1, 648a2
  • Code 1932, §§ 1046, 1047
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A. (orig. ed.), §§ 67-1002, 67-1003.
Part 7 Collection and Enforcement Generally
§ 67-1-701. When taxes payable.
  1. (a) All taxes, state, county, and municipal, to be collected under this part, parts 10, 15 and 16 of this chapter, and chapter 5, parts 18-20 of this title shall be payable the first Monday in October in each year, except taxes of municipal corporations that, under existing laws, are authorized to collect their own taxes on property and privileges; provided, that, whenever, under any plan or program of consolidation of governmental functions of county offices with comparable facilities provided under any municipal charter, it is expedient to fix different due dates than those established in this subsection (a), in order to avoid the destruction of existing municipal fiscal policies, the county trustee of any county, by and with the consent of a majority of the members of the county legislative body of the county, may establish due dates other than those set forth in this subsection (a).
    Backlinks (4)
  2. (b) County revenue shall be collected by the officers at the time and in the manner prescribed for the collection of the state revenue.
  3. (c) All municipal taxes collectible by the county trustee shall become due and delinquent at the same time as state and county taxes; provided, that, whenever, under any plan or program of consolidation of governmental functions of county offices with comparable facilities provided under any municipal charter, it is expedient to fix different due dates than those established in subsection (a), in order to avoid the destruction of existing municipal fiscal policies, the county trustee of any county, by and with the consent of a majority of the members of the county legislative body of the county trustee's county, may establish due dates other than those set forth in subsection (a).
Backlinks (4)
History (11)
  • Code 1858, § 491
  • Shan., §§ 651, 773, 865
  • mod. Code 1932, §§ 1050, 1350, 1545
  • Acts 1907, ch. 602, § 41
  • 1909, ch. 542, § 1
  • 1961, ch. 312, § 1
  • 1961, ch. 314, § 1
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • modified
  • Acts 1982, ch. 819, § 1
  • T.C.A. (orig. ed.), §§ 67-1101(a), 67-1102, 67-1103.
§ 67-1-702. Payment to trustee.
  1. (a) Every taxpayer shall pay state, county, municipal, highway, school and all of such taxpayer's property taxes to the county trustee, except when otherwise provided by law, and such taxes shall be due and payable on the first Monday in October of each year.
  2. (b) Notwithstanding any law to the contrary, upon adoption of a resolution by the county legislative body, the county trustee may accept property taxes at any time after July 10, prior to the first Monday in October established by § 67-1-701, on which date trustees are required to accept property tax payments, and after the tax rates are finally set, the trustee's tax rolls are received and the trustee's receipts are prepared. County trustees may begin accepting tax relief applications on the same date on which the trustee accepts property tax payments.
Backlinks (1)
History (16)
  • Acts 1907, ch. 602, § 48
  • Shan., § 865a2
  • Acts 1923, ch. 77, § 1
  • mod. Code 1932, § 1547
  • Acts 1971, ch. 380, § 1
  • 1976, ch. 429, § 1
  • modified
  • Acts 1982, ch. 883, §§ 1-3
  • 1983, ch. 62, §§ 1, 2
  • 1983, ch. 430, § 2
  • T.C.A. (orig. ed.), § 67-1105
  • Acts 1988, ch. 795, § 20
  • 1989, ch. 291, § 5
  • 1989, ch. 550, §§ 5, 23
  • 1996, ch. 717, § 1
  • 1997, ch. 313, § 1.
§ 67-1-703. Payment to state — Form — Time.
  1. (a)
    1. (1) The commissioner of revenue is empowered to accept, in payment of all taxes collected by the department, evidence satisfactory to the commissioner that the amount due for the tax has been deposited in a state depository designated pursuant to § 9-4-107, which has been approved by the state treasurer, to the credit of the state of Tennessee.
    2. (2) Evidence of the deposit must be furnished to the commissioner on or before the due date of the tax as established by law, and no taxpayer paying taxes in such manner shall be relieved of any penalty for delinquency upon failure of such evidence to be seasonably furnished, except as provided in § 67-1-803.
  2. (b) The commissioner may require that any person owing ten thousand dollars ($10,000) or more in connection with any return, report or other document to be filed with the department, or owing one thousand dollars ($1,000) or more in connection with any return, report or other document to be filed with the department under chapter 6 of this title or chapter 4, part 7 of this title, or owing two thousand five hundred dollars ($2,500) or more in connection with any quarterly estimated payment due under § 67-4-2015(b), shall pay any such tax liability to the state no later than the date the payment is required by law to be made in funds that are immediately available to the state on the date of payment. Payment in immediately available funds may be made by wire transfers of funds through the federal reserve system or by any other means established by the commissioner, with the approval of the state treasurer, that ensures the availability of such funds to the state on the date of payment. Evidence of such payment shall be furnished to the commissioner on or before the due date of the tax as established by law. Failure to timely make such payment in immediately available funds, or failure to provide such evidence of payment in a timely manner, shall subject the taxpayer to penalty and interest as provided by law for delinquent or deficient tax payments. If payment is timely made in other than immediately available funds, penalty and interest shall be added to the amount of tax due from the due date of the tax payment to the date that funds from the tax payment become available to the state.
    Backlinks (2)
  3. (c) The commissioner is specifically authorized to establish, by rule, periodic filing and payment dates that are subsequent to the dates otherwise established by law for any taxes collected by the department in those instances where the commissioner deems it to be in the best interest of the state to do so. Such alternative date shall not, however, be later than the last day of the month in which the tax was otherwise due.
  4. (d) The commissioner, in the commissioner's discretion, may require taxpayers who are required to electronically transfer any payment of twenty thousand dollars ($20,000) or more to the department of revenue to also electronically file the return, report or other document with which such electronically transferred payment is associated or on which credit for the payment electronically transferred is taken. In extenuating circumstances, the commissioner has discretionary authority to waive this requirement with respect to any taxpayer. To obtain a waiver, the taxpayer shall demonstrate in writing to the department that such circumstances exist. Any return or tax information, as defined by § 67-1-1701, electronically transferred under this subsection (d) shall constitute confidential information, the disclosure of which shall be subject to part 17 of this chapter.
  5. (e) The commissioner is authorized to prescribe all rules necessary for the administration of this section.
  6. (f)
    1. (1) The commissioner is authorized, but not required, to accept credit cards, debit cards, or other similar financial transaction cards in payment of all taxes or other amounts collected by the department. The commissioner may adopt reasonable policies and rules governing the manner of acceptance of such cards.
    2. (2) The commissioner may enter into appropriate agreements with card issuers or other appropriate parties as needed to facilitate the acceptance of payments authorized by this subsection (f). The commissioner may impose a surcharge or convenience fee upon persons making payment by credit card, debit card, or other similar financial transaction cards to wholly or partially offset, in the aggregate, any discount or administrative fees charged to the department on such payments.
    3. (3) The commissioner also may enter into appropriate agreements with third-party service providers for the acceptance and processing of credit card, debit card, or other similar financial transaction card payments on the commissioner's behalf. Such agreements may authorize the third-party service provider to impose a surcharge or convenience fee upon persons making such payments.
    4. (4) When a person elects to make a payment to the department by credit card, debit card, or other similar financial transaction card and a surcharge or convenience fee is imposed as authorized by this subsection (f), the payment of the surcharge or convenience fee shall be deemed voluntary and shall not be refundable. No person making any payment to the department by credit card, debit card, or other similar financial transaction card shall be relieved from liability for the underlying obligation, except to the extent that the department realizes final payment of the underlying obligation in cash or the equivalent. If final payment is not made by the card issuer or other guarantor of payment, then the underlying obligation shall survive and the department shall retain all remedies for enforcement that would have applied if the transaction had not occurred.
Backlinks (2)
History (29)
  • Acts 1921, ch. 113, § 2
  • impl. am. Acts 1923, ch. 7, §§ 19, 24
  • Acts 1923, ch. 106, § 1
  • Shan. Supp., § 809a8
  • Code 1932, § 1478
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 5, § 1
  • 1965, ch. 154, § 1
  • 1970, ch. 500, § 2
  • 1970, ch. 559, § 4
  • 1973, ch. 151, § 1
  • 1973, ch. 368, § 1
  • 1973, ch. 373, § 1
  • 1977, ch. 106, § 1
  • 1978, ch. 599, § 1
  • 1980, ch. 460, § 1
  • 1981, ch. 34, § 1
  • 1983, ch. 148, § 1
  • T.C.A. (orig. ed.), § 67-101(3)
  • Acts 1986, ch. 923, § 5
  • 1989, ch. 332, §§ 1, 2
  • 1995, ch. 274, § 1
  • 1998, ch. 657, § 1
  • 2004, ch. 786, § 1
  • 2005, ch. 131, § 1
  • 2007, ch. 602, § 30
  • 2009, ch. 530, § 94
  • 2011, ch. 467, § 7.
§ 67-1-704. Payment to county — Form and receipt.
  1. (a) The trustee shall receive, in discharge of public taxes and other dues to the state, besides the constitutional and lawful currency of the United States:
    1. (1) Warrants on the state treasury legally outstanding in the hands of each person to whom issued and unpaid;
    2. (2) Coins of the United States;
    3. (3) United States legal tender notes;
    4. (4) Federal reserve notes; and
    5. (5) In those counties having a population, according to the 1990 federal census or any subsequent federal census, of not less than thirty-four thousand eight hundred fifty (34,850) nor more than thirty-five thousand (35,000), payment by credit card or debit card.
  2. (b)
    1. (1) The trustee shall provide to each taxpayer a receipt printed or written in ink or indelible pencil, for all the taxes paid by the taxpayer.
    2. (2) If a portion of the tax notice is to be retained by the taxpayer, in lieu of the trustee mailing a separate receipt of the payment to the taxpayer, the tax notice shall:
      1. (A) Clearly state such fact; and
      2. (B) Inform the taxpayer that, if the taxpayer desires the trustee to mail a separate receipt of the payment to the taxpayer, the taxpayer must include a self-addressed, stamped envelope when the taxes are paid.
        Backlinks (1)
    3. (3) If the trustee provides a separate receipt of all taxes paid by the taxpayer, such receipt shall be numbered and dated.
  3. (c)
    1. (1) The trustee, on the payment of all state and county taxes, shall issue to the taxpayers a receipt showing the aggregate of state taxes and the aggregate of county taxes paid by the taxpayers, and each amount so separated and distinguished from the other amount in the receipt that the taxpayer may know, on reading the receipt, the taxes paid to the state and the taxes paid to the county. All tax receipts shall be so printed that, on the margin of the receipt at one (1) end, shall appear the separate levies composing the county rate and the purposes for which levied, and on the margin of the other end shall appear the separate levies composing the state rate and all purposes for which levied; provided, that, where it is impracticable literally to comply with the specific provisions of this subdivision (c)(1) with respect to the separation of state and county taxes, for any cause appearing to the commissioner of revenue, the commissioner is authorized to order such different arrangement of the tax receipt as will substantially comply with the requirements for the separation of the state and county taxes on the receipt.
    2. (2) In counties where the tax assessing and tax collecting authorities use mechanical devices for the printing of assessments and tax receipts, the trustee may omit from such receipts the listing of the several levies composing the county rate and the purposes for which levied and statements with regard to any state levies; provided, that any taxpayer requesting such statement with regard to the levies shall be furnished a statement by the trustee.
  4. (d) It is the duty of the county legislative body of each county to furnish the county trustee of the county with a sufficient number of tax receipts printed in duplicate and in a blank form in a book or books numbered from one (1) up, consecutively, and shall have the year for which the taxes are due printed in large figures, not less than one inch (1″) deep, on the face of each receipt. The trustee shall be charged with these receipts, and must, in the trustee's final settlement, account for each blank receipt so received by the trustee. No payment to the trustee of any tax shall be legal and binding unless paid upon the regular tax receipt specified in this subsection (d), and duplicate receipts shall be preserved in the book or books, to be submitted to the county legislative body by the trustee whenever required to do so. The receipt book of duplicates, when filled, shall be filed in the office of the county clerk for reference, and shall be receipted for by the clerk and carefully preserved in the clerk's office as a record for the protection of taxpayers who have paid their taxes and lost or misplaced their receipts.
  5. (e) Any trustee that properly collects state and county taxes by credit or debit card is authorized to collect a fee for processing any payment by credit or debit card; provided, that the fee shall not exceed the amount that the card issuer charges the trustee in connection with honoring the credit or debit card payment.
  6. (f) As used in this section, unless the context otherwise requires:
    1. (1) “Credit card” has the same meaning as set forth in § 39-14-102;
    2. (2) “Debit card” has the same meaning as set forth in § 39-14-102; and
    3. (3) “Issuer” has the same meaning as set forth in § 39-14-102.
  7. (g) If a payment by credit or debit card is not honored by the issuer, the trustee may collect a service charge from the person who owes the public taxes. The service charge is in addition to the public taxes for which the credit or debit card was used and the original processing fee. The amount of the service charge shall be the same amount as the fee charged by the trustee for the collection of a check drawn on an account with insufficient funds.
History (17)
  • Code 1858, § 603
  • Acts 1869-1870, ch. 81, § 2
  • 1879, ch. 139, § 4
  • 1889, ch. 200, § 1
  • integrated in Shan., §§ 871-873
  • mod. Code 1932, §§ 1550-1553
  • modified
  • Acts 1907, ch. 602, § 42
  • 1925, ch. 135, § 2
  • 1937, ch. 46, § 1
  • C. Supp. 1950, § 1551
  • Acts 1957, ch. 147, § 1
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, ch. 934, §§ 7, 22, 36
  • T.C.A. (orig. ed.), §§ 67-1108 — 67-1111
  • Acts 1999, ch. 474, §§ 1, 2
  • 2004, ch. 682, § 1.
§ 67-1-705. Collection fees.
  1. No clerk, or other officer, shall make any charge for any statement, certificate, or receipt for taxes, except as provided in § 67-5-2007. Nothing in this section shall be construed to limit the ability of the trustee to request the taxpayer to include a self-addressed, stamped envelope if the taxpayer desires the trustee to mail a separate receipt of the payment of taxes to the taxpayer pursuant to § 67-1-704(b)(2)(B).
History (5)
  • Acts 1881, ch. 163, § 1
  • Shan., § 874
  • mod. Code 1932, § 1563
  • T.C.A. (orig. ed.), § 67-1119
  • Acts 2004, ch. 682, § 2.
§ 67-1-706. Collection of excessive tax prohibited.
  1. It is a Class C misdemeanor for a collector of taxes to collect, under the color or pretense of office, more money, in the name of taxes, than is directed by law.
History (5)
  • Code 1858, § 605
  • Shan., § 875
  • Code 1932, § 1564
  • T.C.A. (orig. ed.), § 67-1120
  • Acts 1989, ch. 591, § 113.
§ 67-1-707. Adjustments and refunds.
  1. (a) The county clerks of the various counties are also authorized and empowered to settle and adjust with taxpayers all errors and double assessments of county taxes erroneously or illegally collected by them and to direct the refunding of the taxes. Any claim for such refund by the county of taxes or revenue alleged to have been erroneously or illegally paid shall be filed with the county clerk, supported by proper proof within one (1) year from the date of payment; otherwise, the taxpayer shall not be entitled to a refund and the claim for refund shall be barred.
  2. (b) Subsection (a) also applies to municipalities and municipal taxpayers; provided, however, that in the case of claims made for refund of municipal taxes, the duties, obligations, and responsibilities of the county clerk described in subsection (a) shall be performed by the city recorder, city clerk, or director of finance of the municipality acting under the direction and authority of the mayor or city manager.
Backlinks (9)
History (25)
  • Acts 1923, ch. 66, § 1
  • Shan. Supp., § 373a45
  • Acts 1927, ch. 89, § 18
  • mod. Code 1932, § 270
  • Acts 1935, ch. 167, § 1
  • 1937, ch. 108, art. 3, § 15
  • 1949, ch. 260, § 1
  • mod. C. Supp. 1950, §§ 270, 270.1
  • (Williams, §§ 270, 270.1, 270.2, 1248.142i)
  • Acts 1951, ch. 215, § 1
  • 1951, ch. 264, § 2
  • 1955, ch. 184, § 1
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 7, § 1
  • 1969, ch. 142, § 1
  • 1972, ch. 461, §§ 1, 2
  • modified
  • 1974, ch. 566, § 1
  • 1978, ch. 646, § 1
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • Acts 1983, ch. 264, § 1
  • T.C.A. (orig. ed.), §§ 67-2301, 67-2302
  • Acts 1984, ch. 724, § 1
  • 1986, ch. 749, § 4
  • 2004, ch. 420, § 1.
§ 67-1-708. Waiver of enforcement and collection.
  1. The commissioner may waive enforcement and collection of any tax imposed under any revenue laws administered by the commissioner, in any case of deficiency, if:
    1. (1) The amount of such deficiency is the lesser of ten dollars ($10.00) or ten percent (10%) of the total tax due;
    2. (2) The commissioner determines that the cost to the department to collect such deficiency would be equal to or greater than the tax collected; and
    3. (3) The commissioner determines that the deficiency does not result from fraud or an intention to avoid payment.
History (1)
  • Acts 1985, ch. 297, § 1.
Part 8 Penalties and Interest
§ 67-1-801. Rate of penalty and interest.
  1. (a)
    1. (1)
      1. (A) When any person liable to pay any tax that is collected or administered by the commissioner of revenue fails to pay the tax, or any portion of the tax, on or before the date when such tax shall be required to be paid, interest shall be added to the amount of tax due, in addition to any penalty provided by law, at a rate to be determined by the commissioner in the manner provided in this subsection (a).
      2. (B) The rate of interest determined by the commissioner shall be the formula rate of interest last published in the Tennessee Administrative Register, pursuant to title 47, chapter 14.
      3. (C) The commissioner shall determine the rate of interest by causing notice of such rate to be filed with the secretary of state on July 1 each year, for publication in the Tennessee Administrative Register.
      4. (D) The rate of interest determined by the commissioner shall become effective on July 1 of each year, and shall apply to all assessments of interest on and after July 1 of each year, until July 1 of the following year when the rate of interest shall be redetermined by the commissioner.
      5. (E) The determination of the commissioner of the rate of interest on delinquent and deficient tax payments and the filing of notice thereof, as provided for in this chapter shall not constitute a rule under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
      Backlinks (1)
    2. (2) All delinquent or deficient payments of taxes, either administered or collected by the commissioner, shall accrue interest from the date delinquent or deficient until paid. For periods prior to the date of final assessment, interest shall accrue at the prevailing rate in effect on the date of the final assessment, regardless of the taxable period involved. For periods subsequent to the date of final assessment, interest shall accrue at the prevailing rate in effect on the date of the accrual of such interest.
    3. (3) Any interest imposed on delinquent or deficient tax payments shall be considered part of such delinquent or deficient taxes and shall be payable to and collectible by the commissioner in the same manner as the tax is paid and collected.
    4. (4)
      1. (A) In any case where the commissioner, in the commissioner's discretion, agrees to permit a taxpayer to pay a tax liability to the department in installments over an extended period, the interest payable on the liability shall be computed at the time the taxpayer executes an agreement to do so.
      2. (B) The interest shall be computed at a rate not to exceed the highest rate allowable by law in Tennessee on short-term business loans and upon the basis of the total tax, penalty and interest owed by the taxpayer at the time the agreement is made.
      3. (C) If the taxpayer makes all of the monthly installment payments on a timely basis, no additional interest shall be computed on the liability covered by the agreement.
      4. (D) If an installment payment is delinquent, additional interest shall be computed on the delinquency at the stated rate, and penalty shall be computed only if allowed by any other law.
      5. (E) Any change in the interest rate shall be effective only after a notice of the change has been filed with the secretary of state. This notice shall not constitute a rule under the Uniform Administrative Procedures Act.
    5. (5) Tax returns filed prior to the due date shall be deemed to be filed on the due date, rather than on the date actually filed.
    6. (6) Notwithstanding this section or any law to the contrary, no interest shall be imposed on delinquent or deficient payments of litigation taxes to be collected by the clerk of the appellate courts.
    Backlinks (3)
  2. (b)
    1. (1)
      1. (A) When it is determined by administrative review that a person is entitled to a refund or credit of any tax collected or administered by the commissioner, and such person is not a debtor as defined in § 67-1-1808, interest shall be added to the amount of refund or credit due, beginning forty-five (45) days from the date the commissioner receives proper proof to verify that the refund or credit is due and payable. In the case of a taxpayer who is a debtor as defined in § 67-1-1808, when it is determined by administrative review that such taxpayer is entitled to a refund or credit of any tax collected or administered by the commissioner, interest shall be added to the amount of refund or credit due, beginning ninety (90) days from the date the commissioner receives proper proof to verify that the refund or credit is due and payable.
      2. (B) Notwithstanding subdivision (b)(1)(A), interest must not be added to any refund paid pursuant to § 67-4-2122 until ninety (90) days from the date the commissioner receives the refund claim and proper proof to verify that the refund or credit is due and payable.
    2. (2) When it is determined by court order that a person is entitled to a refund or credit of any tax collected or administered by the commissioner, interest shall be added to the amount of refund or credit due, beginning:
      1. (A) Forty-five (45) days from the date of filing a claim for refund, pursuant to § 67-1-1802(a);
      2. (B) Forty-five (45) days from the date of waiver by the commissioner, pursuant to § 67-1-1802(c)(3);
      3. (C) On the date of payment, in the case of any tax collected after suit was filed under § 67-1-1801; or
      4. (D) Ninety (90) days from the date of filing a claim for refund in the case of a taxpayer who is a debtor as defined in § 67-1-1808.
    3. (3)
      1. (A) The rate of interest to be paid pursuant to this subsection (b) shall be determined as provided in subsection (a).
      2. (B) Notwithstanding subdivision (b)(3)(A), the rate of interest is the rate established by 26 U.S.C. § 6621(a)(1) for a large corporate overpayment in the amount of the federal short-term rate plus five-tenths (0.5) of a percentage point for any refund issued based on the allegation that the franchise tax in chapter 4, part 21, of this title or any provision of chapter 4, part 21, is unconstitutional by failing the internal consistency test.
    4. (4) Except for taxes collected after suit is filed under § 67-1-1801, no interest shall be added to any refund made, or credit given, by the commissioner for which no claim for refund or application for credit is made by the taxpayer, pursuant to § 67-1-1802(a), or for which the requirement that the taxpayer file a claim for refund is waived by the commissioner, pursuant to § 67-1-1802(c)(3).
    Backlinks (3)
  3. (c) Notwithstanding this section, interest added to highway user fuel tax due or interest added to refunds of such taxes shall be computed in accordance with [former] § 67-3-710 [repealed].
Backlinks (9)
History (30)
  • Acts 1907, ch. 602, §§ 48, 73
  • Shan., §§ 865a2, 865a3
  • Acts 1923, ch. 77, § 1
  • mod. Code 1932, §§ 1547, 1548
  • Acts 1971, ch. 380, § 1
  • 1974, ch. 693, § 1
  • 1976, ch. 429, § 1
  • 1978, ch. 802, § 1
  • 1980, ch. 885, § 1
  • modified
  • Acts 1982, ch. 883, §§ 1-3
  • 1983, ch. 62, §§ 1, 2
  • 1983, ch. 238, §§ 3, 4
  • 1983, ch. 430, § 2
  • T.C.A. (orig. ed.), §§ 67-112, 67-1105(b), 67-1106
  • Acts 1984, ch. 580, § 1
  • 1985, ch. 203, §§ 1, 2
  • 1986, ch. 749, § 3
  • 1986, ch. 851, § 1
  • 1987, ch. 2, §§ 1, 2
  • 1988, ch. 526, § 5
  • 1988, ch. 795, §§ 17, 18
  • 1989, ch. 291, § 4
  • 1989, ch. 550, § 4
  • 1993, ch. 142, § 15
  • 2002, ch. 559, § 3
  • 2005, ch. 499, § 28
  • 2010, ch. 1113, §§ 2, 3
  • 2014, ch. 854, § 3
  • 2024, ch. 950, §§ 4, 5.
§ 67-1-802. Abatement or waiver of penalty.
  1. The commissioner is authorized to abate, in whole or in part, any statutory penalty imposed under any revenue laws administered by the commissioner in any case of deficiency tax collection made by the department in connection with an audit conducted by it, if the commissioner determines that the payment by a taxpayer of a tax in an amount less than that due under the applicable laws and rules and regulations relates to a taxable period covered by a timely filed return and is not the result of:
    1. (1) Negligence or intentional disregard of the tax law or rules and regulations; or
    2. (2) Fraudulent underpayment of the tax.
History (21)
  • Acts 1921, ch. 113, § 2
  • impl. am. Acts 1923, ch. 7, §§ 19, 24
  • Acts 1923, ch. 106, § 1
  • Shan. Supp., § 809a8
  • Code 1932, § 1478
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 5, § 1
  • 1965, ch. 154, § 1
  • 1970, ch. 500, § 2
  • 1970, ch. 559, § 4
  • 1973, ch. 151, § 1
  • 1973, ch. 368, § 1
  • 1973, ch. 373, § 1
  • 1977, ch. 106, § 1
  • 1978, ch. 599, § 1
  • 1980, ch. 460, § 1
  • 1981, ch. 34, § 1
  • 1983, ch. 148, § 1
  • T.C.A. (orig. ed.), § 67-101(4)
  • Acts 1988, ch. 526, § 7.
§ 67-1-803. Waiver of penalty.
  1. (a)
    1. (1) The commissioner is authorized to waive, in whole or in part, any statutory penalty imposed under any revenue laws administered by the commissioner in any case of deficiency or delinquency tax collection made by the department, if the commissioner determines that the payment by a taxpayer of a tax in an amount less than that due under the applicable laws and regulations, or that the failure of a taxpayer to pay any tax by the due date is the result of one (1) or more of the good and reasonable causes enumerated in subsection (c) and is not a result of gross negligence or willful disregard of the law.
    2. (2) Under no circumstances, however, shall this authority be deemed to extend to any interest payable under the law in connection with any case of tax deficiency or delinquency.
    3. (3) The commissioner shall prescribe and publish rules and regulations governing the manner in which applications for a waiver of penalty shall be accepted and processed.
  2. (b) Initial receipt, review and recommendation for approval or disapproval of each application for waiver of penalty, as authorized in subsection (a), shall be made by the director, or the director's delegate, of the division or agency within the department charged by the commissioner with the enforcement of the tax involved. The commissioner or the commissioner's delegate shall thereafter review and approve or disapprove each application for waiver of penalty, as the commissioner or the commissioner's delegate may deem proper, and such determination by the commissioner or the commissioner's delegate shall constitute the determinative and final decision on the application.
    Backlinks (1)
  3. (c)
    1. (1) In the case of a tax deficiency, that is constituted by a failure to pay the full amount of tax due under the law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty:
      1. (A) The taxpayer incurred the deficiency as a result of having been misled by erroneous advice or action, that was not clearly in contravention of the law, on the part of officials charged with the enforcement of this state's tax statutes;
      2. (B) The taxpayer incurred the deficiency as a result of legal misadvice that was not clearly in contravention of the law, from an ostensibly competent and financially independent lawyer or accountant;
      3. (C) The provisions of the pertinent law or regulation were, at the time the deficiency was incurred, unsettled, unclear, and misleading to a reasonable person; and the taxpayer acted in good faith on a reasonable, though mistaken, application of such law or regulation, with the result that the tax deficiency in question was incurred;
      4. (D) The deficiency resulted from reliance by the taxpayer upon factual, but not legal, misrepresentations made by persons with whom the taxpayer dealt in the course of the taxpayer's business, other than the taxpayer's own agents or employees, the taxpayer having no reason to doubt or question such misrepresentations; or
      5. (E) The deficiency resulted from a mistake of fact on the part of the taxpayer, who thereafter voluntarily and without any kind of demand upon the part of the officials charged with the enforcement of the law, tenders the amount of the deficiency, plus accrued interest.
    2. (2) If the cause for the deficiency does not comport with any of the causes provided for in subdivision (c)(1), a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a deficiency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person and that clearly negates either a willful disregard of the law or gross negligence.
  4. (d)
    1. (1) In the case of a tax delinquency of not more than thirty (30) days, which is constituted by a failure to file a return and pay the tax within not more than thirty (30) days after the time prescribed by law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty:
      1. (A) Return was timely mailed, but for reasons either known or unknown was not timely received or not received at all, and the taxpayer satisfactorily explains noncompliance within § 67-1-107;
      2. (B) Delinquency was due to erroneous information given the taxpayer by an official charged with the enforcement of this state's tax statutes;
      3. (C) Delinquency was attributable to an intervening providential cause, such as, but not limited to, the occurrence of a disabling injury, illness, or death of the taxpayer, or a member of the taxpayer's immediate family, or of a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns, and such intervening cause occurred prior to the date on which the required return and payment would otherwise be deemed delinquent;
      4. (D) Delinquency was caused by unavoidable absence of the taxpayer or a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns;
      5. (E) Delinquency was caused by the destruction by fire or other casualty of the taxpayer's place of business or business records;
      6. (F) The taxpayer proves that the taxpayer made timely application to the department for the proper tax forms, and these were not furnished the taxpayer in sufficient time to permit the executed return to be filed on or before the due date;
      7. (G) The taxpayer proves that the taxpayer personally visited an office of the department before the expiration of the time within which to file the required return for the purpose of securing information or aid to properly make out the taxpayer's return and, through no fault of the taxpayer, was unable to secure such information or aid;
      8. (H) Delinquency was a result of the taxpayer's failure to enclose a negotiable instrument, as defined by the Uniform Commercial Code, compiled in title 47, with the taxpayer's timely filed return, and the taxpayer promptly responds to a request for payment upon notification thereof, and satisfactorily demonstrates such failure was due to an inadvertent oversight or error; or
      9. (I) Delinquency becomes apparent when the taxpayer voluntarily pays the tax but, for any legal reason, the department would be unable to enforce collection, such as the collection would be barred by the statute of limitations, the lack of jurisdiction or other similar reason.
    2. (2) If the cause for the delinquency does not comport with any of the causes provided for in subdivision (d)(1), or if the delinquency is of more than thirty (30) days' duration, a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a delinquency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person, and that clearly negates either a willful disregard of the law or gross negligence.
    3. (3) Notwithstanding subdivisions (d)(1) and (2), the commissioner may accept as good and reasonable cause for waiver of a delinquency penalty the fact that the taxpayer has timely filed and paid such tax for a period of at least two (2) years next preceding the due date of the delinquent return and payment, if the specific cause for the delinquency does not constitute a willful disregard of the law or gross negligence. If the taxpayer has filed estimated payments of franchise and excise taxes by the due date as required by § 67-4-2015 for a period of at least two (2) years, but the estimated payments resulted in an underpayment for which penalties and interest accrued, the commissioner may consider such estimated payments to be filed in a timely manner for purposes of establishing good and reasonable cause under this subdivision (d)(3).
  5. (e)
    1. (1) There shall be no judicial review of the commissioner's action upon applications for waiver of penalty as authorized in subsection (a) otherwise than as provided in part 9 of this chapter.
    2. (2) The commissioner's action upon all applications for waiver of penalty made under this section shall be deemed final.
    3. (3) Prior determinations of the attorney general and reporter as to what constitutes good and reasonable cause for a deficiency shall serve as a guide and standard of reference for future decisions whenever those determinations may be applicable to the specific cause established.
    4. (4)
      1. (A) The commissioner is authorized, in the commissioner's discretion, to designate subordinate officials in the department to waive, on the commissioner's behalf, penalties in amounts of five thousand dollars ($5,000) or less.
      2. (B) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of fifteen thousand dollars ($15,000) or less.
      3. (C) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of more than fifteen thousand dollars ($15,000); provided, that the attorney general and reporter may require that such waivers or any class of such waivers be subject to the attorney general and reporter's prior review and approval.
Backlinks (12)
History (27)
  • Acts 1921, ch. 113, § 2
  • impl. am. Acts 1923, ch. 7, §§ 19, 24
  • Acts 1923, ch. 106, § 1
  • Shan. Supp., § 809a8
  • Code 1932, § 1478
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1965, ch. 5, § 1
  • 1965, ch. 154, § 1
  • 1970, ch. 500, § 2
  • 1970, ch. 559, § 4
  • 1973, ch. 151, § 1
  • 1973, ch. 368, § 1
  • 1973, ch. 373, § 1
  • 1977, ch. 106, § 1
  • 1978, ch. 599, § 1
  • 1980, ch. 460, § 1
  • 1981, ch. 34, § 1
  • 1983, ch. 148, § 1
  • T.C.A. (orig. ed.), § 67-101(5)
  • Acts 1984, ch. 550, § 1
  • 1984, ch. 832, § 2
  • 1988, ch. 526, § 8
  • 1992, ch. 626, § 1
  • 2011, ch. 467, § 9
  • 2015, ch. 514, § 2
  • 2016, ch. 881, § 1.
§ 67-1-804. Delinquency — Negligence — Fraud — Dishonor of check — Exceptions.
  1. (a)
    1. (1) When any person fails to timely make any return or report or fails to timely pay any taxes shown to be due on the return or report, there shall be imposed against that person a penalty in the amount of five percent (5%) of the unpaid tax amount for each thirty (30) days or fraction thereof that the tax remains unpaid subsequent to the delinquency date, up to a maximum of twenty-five percent (25%) of the unpaid amount. Where a return or report is delinquent, the minimum penalty shall be fifteen dollars ($15.00), regardless of the amount of tax due or whether there is any tax due.
    2. (2) A return, report, or payment shall be considered untimely if not made on or before the delinquency date under the applicable statutes, including any extensions of time granted. In the case of an untimely return, report, or payment, the penalty shall be calculated as of the original delinquency date, without reference to any extensions granted.
    3. (3) In the case of quarterly tax payments made pursuant to § 67-4-308, the penalty shall be calculated as provided by that section.
    4. (4) In the case of quarterly estimated tax payments made pursuant to § 67-4-2015, the penalty shall be calculated as provided by that section.
    5. (5) In the case of an extension of time granted under § 67-4-2015, the penalty shall be calculated as provided by that section.
    Backlinks (1)
  2. (b)
    1. (1) When any person fails to report and pay the total amount of taxes determined to be due by the commissioner, if such failure is determined by the commissioner to be due to negligence, there shall be imposed a penalty in the amount of ten percent (10%) of the underpayment.
    2. (2) When any person, upon the initial filing of the person’s franchise and excise tax return, fails to comply with the requirements described in § 67-4-2006(d) or (e) and such failure is determined by the commissioner to be due to negligence, there shall be imposed a penalty equal to the greater of ten thousand dollars ($10,000) or fifty percent (50%) of any adjustment to the initially filed return made under § 67-4-2006(b)(1)(K) or (e). The commissioner is authorized to waive the penalty, in whole or in part, for good and reasonable cause under § 67-1-803. Any penalty imposed under this subdivision (b)(2) shall be disregarded for purposes of determining the taxpayer’s filing record under subdivision (d)(3).
      Backlinks (2)
    3. (3) When any person fails to pay the tax required by § 67-4-2007(f), if such failure is determined by the commissioner to be due to negligence, there shall be imposed a penalty in the amount of fifty percent (50%) of the underpayment.
      Backlinks (1)
    4. (4) For the purpose of this section, “negligence” includes, but is not limited to, any failure to make a reasonable attempt to comply with any law relating to any tax collected or administered by the commissioner.
    5. (5) A determination by the commissioner that a taxpayer has been negligent shall be deemed presumptively correct. Such determination may be rebutted only if the taxpayer makes a showing of due care. For purposes of this subdivision (b)(5), “due care” means that care that an ordinarily prudent business person would have exercised under the circumstances.
    6. (6) This penalty is in addition to all other penalties provided by law, except as provided in subsection (c).
    Backlinks (1)
  3. (c)
    1. (1) When any person fails to report and pay the total amount of taxes determined to be due by the commissioner, if such failure is determined by the commissioner to be due to fraud, there shall be imposed against the taxpayer a penalty in the amount of one hundred percent (100%) of the underpayment.
    2. (2) For the purpose of this subsection (c), “fraud” includes any deceitful practice or willful device resorted to with intent to evade the tax.
    3. (3) A failure to pay the tax by one who charges or passes on the tax to others constitutes a presumption of fraud. Such presumption may be rebutted only if the taxpayer makes an affirmative showing of intent to pay the tax and comply with all other requirements of the taxing statute.
    4. (4) Imposition of this penalty shall be in lieu of all other penalties imposed by the commissioner, except those provided in subsection (d) and part 14 of this chapter.
    Backlinks (1)
  4. (d)
    1. (1) If any check, money order, or electronic funds transfer in payment of any amount receivable under any law administered by the commissioner is dishonored, there shall be imposed a penalty upon the taxpayer in an amount equal to one percent (1%) of the amount of such check, money order, or electronic funds transfer; provided, that the penalty imposed shall be in an amount equal to ten percent (10%) of the amount of such check, money order, or electronic funds transfer for each dishonored check, money order, or electronic funds transfer in excess of two (2) issued by any one (1) person within one (1) calendar year. The minimum amount of the penalty imposed under this subdivision (d)(1) shall be fifteen dollars ($15.00). This subdivision (d)(1) does not apply if the person tendered such check, money order, or electronic funds transfer in good faith and with reasonable cause to believe that it would be duly paid.
    2. (2) This penalty shall be in addition to all other penalties provided by law.
  5. (e) For all purposes, the penalties imposed by any law administered by the commissioner shall be considered a part of the tax imposed.
  6. (f) In no event shall judicial review of the commissioner's imposition of any penalty be other than as provided in part 18 of this chapter.
  7. (g) This section shall apply to all taxes administered or collected by the commissioner, except that subsection (a) shall not apply to the tax imposed in § 67-4-409(b).
  8. (h) Notwithstanding this section, the penalty added to delinquent highway user fuel tax due shall be computed in accordance with § 67-3-1208.
  9. (i) Subdivision (a)(1) shall not apply to litigation taxes to be collected by the clerk of the appellate courts.
Backlinks (3)
History (8)
  • Acts 1988, ch. 526, § 4
  • 1993, ch. 142, § 16
  • 2002, ch. 559, § 4
  • 2004, ch. 786, § 4
  • 2009, ch. 530, § 31
  • 2010, ch. 1134, § 21
  • 2012, ch. 842, § 5
  • 2014, ch. 764, § 1.
Part 9 Payment of Tax Under Protest
§ 67-1-901. Payment under protest, involuntarily or under duress.
  1. (a) In all cases where not otherwise provided in which an officer, charged by law with the collection of revenue due the state, shall institute any proceeding, or take any steps for the collection of the sum alleged or claimed to be due by the officer from any citizen, the person against whom the proceeding or step is taken shall, if that person conceives the same to be unjust or illegal, or against any statute or clause of the constitution of the state, pay the revenue under protest.
  2. (b) This section shall not apply to any tax collected or administered by the commissioner of revenue when such tax is paid on or after January 1, 1986. Notwithstanding any other law to the contrary, it is the intent of the general assembly that it shall not be a condition precedent to any claim or suit for recovery of any taxes collected or administered by the commissioner when such taxes were paid on or after January 1, 1986, that the taxes were paid under protest, involuntarily, or under duress.
Backlinks (2)
History (6)
  • Acts 1873, ch. 44, § 1
  • Shan., § 1059
  • Code 1932, § 1790
  • T.C.A. (orig. ed.), § 67-2303
  • Acts 1986, ch. 749, § 12
  • 1987, ch. 92, § 2.
§ 67-1-902. Notice.
  1. Upon the person's making such payment, the officer or collector shall pay such revenue into the state treasury, giving notice at the time of payment to the commissioner of revenue that the payment was paid under protest.
History (6)
  • Acts 1873, ch. 44, § 1
  • Shan., § 1060
  • Code 1932, § 1791
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-2304.
§ 67-1-903. Action against collecting officer.
  1. (a) The person paying the revenue may, at any time within six (6) months after making the payment, but not thereafter, sue the officer who collected the sum, for the recovery thereof.
  2. (b) This section shall not apply after January 1, 1986, to any tax collected or administered by the commissioner of revenue.
History (8)
  • Acts 1873, ch. 44, § 1
  • Shan., § 1061
  • Code 1932, § 1792
  • Acts 1968, ch. 588, § 1
  • T.C.A. (orig. ed.), § 67-2305
  • Acts 1984, ch. 972, § 19
  • 1986, ch. 749, § 13
  • 1987, ch. 92, § 3.
§ 67-1-904. Jurisdiction of suit — Certification and repayment.
  1. (a) The suit may be tried in any court in the county of the taxpayer's residence or in the county of the location of the defendant having jurisdiction of the amount and parties, and if it be determined that the tax was wrongfully collected as not being due from the party to the state, for any reason going to the merits of the tax, then the court trying the case may certify of record that the tax was wrongfully paid and ought to be refunded, together with such interest as the court may determine to be proper, not exceeding the legal rate, and thereupon the commissioner of finance and administration shall issue a warrant for the refund, which shall be paid in preference to other claims on the state treasury.
  2. (b) For the purpose of suits brought under this chapter, the commissioner of revenue shall be considered a resident of each of the several counties of the state.
  3. (c) This section shall not apply after January 1, 1986, to any tax collected or administered by the commissioner of revenue.
  4. (d) Notwithstanding any other provisions of this section, suits to recover ad valorem taxes wrongfully collected by a city or county must be tried in the county wherein the taxes are collected.
History (14)
  • Acts 1873, ch. 44, § 1
  • Shan., § 1062
  • Code 1932, § 1793
  • impl. am. Acts 1937, ch. 33, §§ 24, 29
  • Acts 1937, ch. 197, § 1
  • C. Supp. 1950, § 1793
  • impl. am. Acts 1959, ch. 9, § 3
  • impl. am. Acts 1961, ch. 97, § 3
  • Acts 1971, ch. 44, §§ 1, 2
  • T.C.A. (orig. ed.), § 67-2306
  • Acts 1984, ch. 972, § 19
  • 1986, ch. 749, § 14
  • 1987, ch. 92, § 4
  • 2002, ch. 680, § 1.
§ 67-1-905. Costs paid by state.
  1. (a) In all such cases, if the court shall certify of record in the cause that it appears from the evidence before the court that the officer against whom the suit is brought has acted in good faith and has defended the suit with proper diligence and care, the necessary cost of the cause shall be taxed as provided by law in criminal cases, and be paid by the state.
  2. (b) This section shall not apply after January 1, 1986, to any tax collected or administered by the commissioner of revenue.
Backlinks (2)
History (7)
  • Acts 1873, ch. 44, § 3
  • Shan., § 1065
  • Code 1932, § 1796
  • T.C.A. (orig. ed.), § 67-2307
  • Acts 1984, ch. 972, § 19
  • 1986, ch. 749, § 15
  • 1987, ch. 92, § 5.
§ 67-1-908. Remedy exclusive.
  1. (a) There shall be no other remedy in any case of the collection of revenue, or attempt to collect revenue illegally, or attempt to collect revenue in funds only receivable by the officer under the law, the same being other or different funds than such as the taxpayer may tender, or claim the right to pay, than that provided by this part.
  2. (b) Subsection (a) shall not apply after January 1, 1986, to any tax collected or administered by the commissioner of revenue.
Backlinks (3)
History (7)
  • Acts 1873, ch. 44, § 2
  • Shan., § 1063
  • Code 1932, § 1794
  • T.C.A. (orig. ed.), § 67-2310
  • Acts 1984, ch. 972, § 19
  • 1986, ch. 749, § 16
  • 1987, ch. 92, § 6.
§ 67-1-909. Writs to prevent collection of tax prohibited.
  1. (a) No writ for the prevention of the collection of any revenue claimed, or to hinder and delay the collection of revenue, shall by either injunction, supersedeas, prohibition, or any other writ or process whatsoever; but in all cases in which, for any reason, any person shall claim that the tax so collected was wrongfully or illegally collected, the remedy for the party shall be as provided in § 67-1-908, and in no other manner.
  2. (b) This section shall not apply after January 1, 1986, to any tax collected or administered by the commissioner of revenue.
History (5)
  • Acts 1873, ch. 44, § 2
  • Shan., § 1064
  • Code 1932, § 1795
  • T.C.A. (orig. ed.), § 67-2311
  • Acts 1986, ch. 749, § 17.
§ 67-1-910. Refusal of unrecognized money.
  1. Nothing in this part shall be construed to subject any officer of the state to any suit for a refusal on the officer's part to accept, in payment of revenue of the state, any kind or description of funds or securities or papers other than such as the officer may be authorized and required to receive for the time being by law.
Backlinks (2)
History (4)
  • Acts 1873, ch. 44, § 5
  • Shan., § 1068
  • Code 1932, § 1799
  • T.C.A. (orig. ed.), § 67-2312.
§ 67-1-911. Provisions applicable to municipal taxes.
  1. (a) Sections 67-1-901 — 67-1-905 and 67-1-908 — 67-1-910 apply to the recovery of all taxes collected by any of the municipalities of this state.
  2. (b) In order to carry out the legislative intent that all of such sections, which now apply to the recovery of state taxes erroneously paid, be conformed to apply also to the recovery of taxes erroneously paid to municipalities, the following provisions are added:
    1. (1) The municipal officer collecting any municipal taxes paid under protest shall pay such revenue into the municipal treasury and, at the time of payment, shall give notice to the mayor and board of commissioners or other governing body of such municipality that the taxes were paid under protest;
    2. (2) If it be finally determined by any court having jurisdiction of any suit brought within thirty (30) days after such payment under protest against the municipality to recover such taxes that the taxes were wrongfully collected as not being due from the party to the municipality, the municipality shall refund such taxes with such interest as the court may determine to be proper, not exceeding the legal rate, and shall pay the costs of the cause; and
    3. (3) The city attorney or other legal officer of such municipality shall conduct the defense of such suit.
Backlinks (2)
History (2)
  • Acts 1959, ch. 324, § 1
  • T.C.A., § 67-2313.
§ 67-1-912. Provisions applicable to county taxes.
  1. (a) Sections 67-1-901 — 67-1-905 and 67-1-908 — 67-1-910 apply to the recovery of all taxes collected by any of the counties of this state.
  2. (b)
    1. (1) The county officer collecting any county taxes paid under protest shall pay such revenue into the county treasury and, at the time of payment, shall give notice to the county mayor and board of commissioners, or other governing body of a county, that the same were paid under protest.
    2. (2) If it be finally determined by any court having jurisdiction of any suit brought within six (6) months after such payment under protest against the county to recover such taxes that the same were wrongfully collected, as not being due from a party to the county, the county shall refund such taxes with such interest as the court may determine to be proper, not exceeding the legal rate, and shall pay the costs of the cause.
History (3)
  • Acts 1981, ch. 274, § 1
  • T.C.A., § 67-2314
  • Acts 2003, ch. 90, § 2.
Part 10 Back Assessment and Reassessment Generally
§ 67-1-1001. Part definitions.
  1. (a) As used in this part, unless the context otherwise requires:
    1. (1) “Back assessment” means the assessment of property, including land or improvements not identified or included in the valuation of the property, that has been omitted from or totally escaped taxation; and
    2. (2) “Reassessment” means the assessment of property that has been assessed at less than its actual cash value by reason of connivance, fraud, deception, misrepresentation, misstatement, or omission of the property owner or the owner's agent.
  2. (b) This section shall not be construed to affect in any manner the operation of § 67-1-1004, relative to the protection of a bona fide purchaser.
History (7)
  • Acts 1907, ch. 602, § 30
  • Shan., § 822a1
  • Code 1932, § 1496
  • modified
  • Acts 1982, ch. 774, § 3
  • T.C.A. (orig. ed.), § 67-1201(b)
  • Acts 1988, ch. 723, §§ 1, 2.
§ 67-1-1002. Grounds.
  1. (a) Any property or properties included in this part or chapter 5 of this title shall be back assessed or reassessed for the period provided by law, viz.:
    1. (1) When the property or properties have been omitted from or escaped taxation;
    2. (2) When the property or properties have been assessed by the assessor or computed by the board of equalization at less than actual cash value by reason of any fraud, deception, misrepresentation, misstatement, or omission of full statements of the owner of the property or the owner's agent or attorney; or
    3. (3) When the owner of the property connives at or fraudulently procures or induces an assessment to be made by the assessor or computed by the board of equalization at less than its actual cash value; provided, that in all cases where there is a grossly inadequate assessment, fraud shall be presumed.
  2. (b) In all cases where any taxes or assessments may be set aside or declared void by any court by reason of any irregularity or neglect to comply with the law in the proceedings; by reason of the illegality of the act constituting the power or authority to assess and levy such taxes or assessments; for want of authority in the board or authority acting in lieu of the county legislative bodies or the duly authorized and legally constituted authorities of the state, for state and county purposes; and such other purposes as may be authorized by law, and the taxes still remain unpaid, the county legislative body of any county, whenever such taxes or assessments have been made or attempted to be made, shall have the power to reassess back taxes upon any lot or parcel of lots or parcels of land subject to or chargeable with taxes for state and county purposes, and relevy the lots or parcels, and the reassessment and levies for such purposes shall be and remain liens upon the lots or parcels of land, with interest from the date when the taxes were properly leviable and assessable where such original assessments remain due and unpaid.
History (8)
  • Acts 1873, ch. 40, § 1
  • 1907, ch. 602, § 30
  • Shan., §§ 820a1, 822a1
  • Code 1932, §§ 1493, 1496
  • modified
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • Acts 1982, ch. 774, § 3
  • T.C.A. (orig. ed.), §§ 67-1201(a), 67-1220.
§ 67-1-1003. Qualifying municipalities for reassessments — Appeals by owners.
  1. (a) Any municipality that lies within the boundaries of two (2) or more counties and maintains an assessment office separate from the assessment offices of the counties in which the municipality lies may make back assessments and reassessments upon property located within the municipality and subject to municipal taxation through the offices of the municipal assessor in the manner otherwise provided in this part.
  2. (b) A property owner whose property has been assessed under subsection (a) and who disputes the assessment, or who claims exemption from the tax, may appeal the assessment to the municipal board of equalization within thirty (30) days of receipt of notice of the assessment. The municipal board of equalization shall hear the appeal within fifteen (15) days and issue a written decision within five (5) days of the hearing. If the board does not issue a decision within five (5) days of the hearing, the appeal may be taken to the state board of equalization. A decision of the municipal board of equalization may be appealed by the property owner or the municipality to the state board of equalization in the same manner as other appeals from action of the county boards of equalization.
History (7)
  • Acts 1915, ch. 124, § 1
  • 1917, ch. 98, § 1
  • Shan., § 822a2
  • Code 1932, § 1497
  • Acts 1983, ch. 298, § 1
  • T.C.A. (orig. ed.), § 67-1202
  • Acts 2001, ch. 176, § 1.
§ 67-1-1004. Ineffective against bona fide purchaser.
  1. (a) In no case shall the back assessment or reassessment of real estate constitute a lien on the real estate that has, by bona fide sale, passed into the hands of innocent purchasers, but shall be a liability against the person owning the real estate at the time of the inadequate assessment.
  2. (b) The burden of proving a bona fide sale shall be upon the person owning such real estate at the time of such back assessment or reassessment.
  3. (c) Subsection (a) shall not apply to property that has wholly escaped taxation.
Backlinks (1)
History (4)
  • Acts 1907, ch. 602, § 30
  • Shan., § 822a3
  • Code 1932, § 1498
  • T.C.A. (orig. ed.), § 67-1203.
§ 67-1-1005. Duty to back assess or reassess — Citation.
  1. (a) A back assessment or reassessment must be initiated on or before September 1 of the year following the tax year for which the original assessment was made, unless the omission or underassessment resulted from failure of the taxpayer to file the reporting schedule required by law, from actual fraud or fraudulent misrepresentation of the property owner or the property owner's agent, or from collusion between the property owner or the property owner's agent and the assessor. In the latter cases, a back assessment or reassessment must be initiated on or before three (3) years from September 1 of the tax year for which the original assessment was made. Additional taxes due as the result of a back assessment or reassessment shall not be deemed delinquent until sixty (60) days after the date notice of taxes arising from the back assessment or reassessment is sent to the taxpayer, unless the back assessment or reassessment resulted from failure of the taxpayer to file the reporting schedule required by law, from actual fraud or fraudulent misrepresentation of the property owner or the property owner's agent, or from collusion between the property owner or the property owner's agent and the assessor. In the latter cases, such taxes shall become delinquent as of the date of delinquency of the original assessment.
  2. (b) A back assessment or reassessment may be initiated by certification of the assessor of property to the appropriate collecting officials identifying the property and stating the basis of the back assessment or reassessment and the tax years and amount of any additional assessment for which the owner or taxpayer is responsible. The assessor shall send a copy of the certification to the owner or taxpayer. The collecting official shall then send a notice of taxes due based on the back assessment and reassessment. Any person aggrieved by a back assessment or reassessment may appeal directly to the state board of equalization within sixty (60) days from the date that a copy of the certification is sent to the taxpayer, in the manner provided in § 67-5-1412, and such person may be assisted or represented in the appeal as provided in § 67-5-1514. Accrual of delinquency penalty and interest otherwise applicable is suspended while the appeal is pending; but, during such period, simple interest shall accrue in the amount provided in § 67-5-1512.
  3. (c) A back assessment or reassessment for merchants' taxes and delinquent privilege taxes pursuant to this part may be initiated by a chief administrative officer of a tax jurisdiction to which the tax is payable, any citizen of such jurisdiction, or by the department of revenue. The back assessment or reassessment shall be initiated by the filing of a sworn, written complaint to the county clerk stating the basis of the complaint. The clerk may require a complainant, other than a public official acting in the official's capacity, to post a reasonable bond for payment of costs of the proceeding if the back assessment or reassessment is unsuccessful. An aggrieved party may appeal the clerk's disposition of the complaint to the department.
  4. (d) Notwithstanding the deadline in this section for initiating a back assessment or reassessment, the issuance of a notice of tangible personal property audit by the assessor tolls the running of the deadline during the period of the audit from the issuance of the notice until issuance of the audit findings.
Backlinks (3)
History (15)
  • Acts 1879, ch. 79, § 1
  • 1883, ch. 181, § 1
  • 1885, ch. 23, § 1
  • 1907, ch. 602, § 30
  • Shan., §§ 814, 823, 823a1
  • Code 1932, §§ 1486, 1499, 1500
  • modified
  • impl. am. Acts 1978, ch. 934, §§ 7, 16, 22, 36
  • T.C.A. (orig. ed.), §§ 67-1204, 67-1205, 67-1213
  • Acts 1990, ch. 898, § 2
  • 1990, ch. 1052, § 1
  • 1993, ch. 315, § 12
  • 2000, ch. 934, § 1
  • 2002, ch. 752, §§ 1-3
  • 2007, ch. 132, § 1.
§ 67-1-1006. Obtaining evidence.
  1. (a) The officials having power to back assess or reassess property are vested with full authority to administer oaths, send for and examine witnesses, and take such steps as may be deemed necessary or material to obtain information and evidence as to the value of the property.
  2. (b) Such witnesses, when properly summoned, shall be amenable to existing laws for nonattendance or failure to give evidence that is in their knowledge.
History (4)
  • Acts 1907, ch. 602, § 30
  • Shan., §§ 823a2, 823a3
  • Code 1932, §§ 1501, 1502
  • T.C.A. (orig. ed.), §§ 67-1206, 67-1207.
§ 67-1-1007. Authority for back assessment or reassessment — Finality.
  1. (a) The officials vested with the power to make back assessments or reassess have full authority, in a proceeding to back assess or reassess such property, to make proper, correct, and adequate assessment of the property at its actual cash value, which, when entered upon the tax book or filed in writing with the authorized tax collecting authority, shall become a final and valid assessment of the property and collectible as such as fully and amply as if originally entered upon the assessment roll.
  2. (b) The assessment, when made by the official authorized to make the assessment, shall have the force and effect of a judgment against the person liable for the taxes for the year for which the reassessment is made.
History (4)
  • Acts 1907, ch. 602, § 30
  • Shan., § 823a4
  • Code 1932, § 1503
  • T.C.A. (orig. ed.), § 67-1208.
§ 67-1-1008. Penalty and costs.
  1. If the back assessment or reassessment is sustained, the cost of the proceeding shall be added to the taxes and collectible as such. If the back assessment or reassessment is set aside, the cost shall be paid by the jurisdiction to which the taxes would have been payable, or by the complainant if the board determines the complaint was filed or prosecuted by the complainant without good cause. In a case of connivance, fraud, deception, misrepresentation, or failure to file a personal property schedule, the board may impose a penalty not to exceed fifteen percent (15%) of the taxes due, which shall be added to the taxes due and be collectible as such.
History (5)
  • Acts 1907, ch. 602, § 30
  • Shan., §§ 823a5, 823a6
  • Code 1932, §§ 1504, 1505
  • T.C.A. (orig. ed.), §§ 67-1209, 67-1210
  • Acts 1993, ch. 315, § 13.
§ 67-1-1009. Estates — Examination of inventories and reports.
  1. It is the duty of the county clerk to examine and compare the assessment rolls of the county with the inventories or reports of administrators and executors as soon as filed with the county clerk, for the purpose of ascertaining whether any personal property of any estate is subject under this chapter to back assessment or reassessment. In case such examination shows any personalty subject to such back assessment or reassessment, the clerk shall so report to the county trustee, who shall back assess or reassess the personalty under this part, and add the penalty previously designated.
History (5)
  • Acts 1907, ch. 602, § 30
  • Shan., § 823a7
  • Code 1932, § 1506
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), § 67-1211.
§ 67-1-1010. Failure or refusal of clerk or trustee to perform duties.
  1. In case the county clerk or county trustee fails or refuses to perform the duty imposed, such clerk or trustee shall become liable on the clerk's or trustee's official bond for the amount of taxes that might have been recovered had the duty been properly performed, together with the penalty of fifteen percent (15%) added to the taxes, the liability and penalty to be recovered in any court of record or before any general sessions court, at the instance of any district attorney general or proper agent of the state, by suit or by motion, on five (5) days' notice.
History (7)
  • Acts 1907, ch. 602, § 30
  • Shan., § 823a8
  • mod. Code 1932, § 1507
  • modified
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • impl. am. Acts 1979, ch. 68, § 3
  • T.C.A. (orig. ed.), § 67-1212.
§ 67-1-1011. Records and reports.
  1. (a) Every collector of taxes, making assessments and collecting taxes under this chapter, shall keep a book upon which the collector shall enter all property assessed by the collector, giving a description of the property so assessed, the amount of taxes so collected and, upon the collector's final settlement with the commissioner and with the county legislative body, shall file a copy of the settlement, under oath, stating that the copy contains a true and a perfect list of all taxes so collected by the collector.
  2. (b) Should the property in any district or ward, or any part of the district or ward, escape assessment or fail in any manner to be assessed, the trustee is required to assess the property at its actual cash value, and report the amount of the taxes collected on the property to the county legislative body as “picked up” taxes at the same time the trustee reports lists of errors, etc., giving a description of the property, district, or ward in which located.
    1. (1) The county clerk is required to certify copies of the report to the officers with whom the trustee is required by law to settle.
    2. (2) The trustee shall account for the property in making final settlements of the trustee's various accounts, but no assessment authorized by this part shall be made for any other years than for the years in which the assessments shall be made and for three (3) years preceding the assessment.
History (8)
  • Acts 1879, ch. 79, § 5
  • 1907, ch. 602, § 38
  • Shan., §§ 819, 820
  • Code 1932, §§ 1491, 1492
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, ch. 934, §§ 7, 22, 36
  • T.C.A. (orig. ed.), §§ 67-1218, 67-1219.
Part 12 Enforcement by Distress Warrant
§ 67-1-1201. Issuance of warrant.
  1. (a) An officer charged with the duty of collecting state revenues is empowered and authorized to issue a distress warrant for the collection of any state taxes, fees, fines, interest, penalties or other revenues, whenever in the officer's discretion the collecting officer deems it necessary to issue a distress warrant to safeguard the revenues of the state.
  2. (b) The distress warrant may be addressed and delivered to the sheriff, any deputy sheriff or constable of the county in which the taxpayer has the taxpayer's office or principal place of business, or to the sheriff or any deputy sheriff or constable of any county in which the collecting officer has reason to believe property of such taxpayer may be found.
History (3)
  • Acts 1941, ch. 36, § 1
  • C. Supp. 1950, § 1613.6 (Williams, § 1613.11)
  • T.C.A. (orig. ed.), § 67-2201.
§ 67-1-1202. Execution of warrant.
  1. (a) The sheriff, any deputy sheriff or constable into whose hands such warrant may come may execute it by distraint and sale of personal property belonging to the taxpayer. The proceedings with respect to the sale shall be the same as are provided by law for proceedings under an execution at law from a court of record. The executing officer shall be entitled to the same fees, commissions, and necessary expenses of removing and keeping the property distrained as in the case of an execution from a court of record.
  2. (b) It is the duty of the sheriff, any deputy sheriff or constable into whose hands such distress warrant may come, to make a return on the distress warrant within thirty (30) days from the date received. In the event any such officer fails to make the return as required by this section, the officer and the officer's bondspersons shall be personally liable for the amount set forth in the distress warrant.
Backlinks (1)
History (3)
  • Acts 1941, ch. 36, § 2
  • C. Supp. 1950, § 1613.7 (Williams, § 1613.12)
  • T.C.A. (orig. ed.), § 67-2202.
§ 67-1-1203. Garnishments.
  1. Garnishments may be issued and executed by the sheriff, any deputy sheriff or constable in the same manner as garnishments are issued and executed on executions at law. Before issuing a garnishment, the sheriff, any deputy sheriff or constable shall cause such distress warrant to be entered on the docket of any court of general sessions or circuit court of the county, and the procedure in the execution of such garnishment shall be the same as now provided by the statute for the execution of garnishments in civil cases.
Backlinks (1)
History (4)
  • Acts 1941, ch. 36, § 2
  • C. Supp. 1950, § 1613.7 (Williams, § 1613.12)
  • impl. am. Acts 1979, ch. 68, § 3
  • T.C.A. (orig. ed.), § 67-2203.
§ 67-1-1204. Levy on real estate.
  1. If the officer cannot find personal property to satisfy the distress warrant, the officer may levy the distress warrant upon any real estate in the officer's county belonging to the taxpayer. If levying on land, the distress warrant, together with the officers' return on the distress warrant, shall be returned to the circuit court of the county in which the land lies, and the land shall be condemned and sold under the orders of the circuit court in the same manner as in the case of the levy on land of an execution issued by a general sessions court.
History (4)
  • Acts 1941, ch. 36, § 3
  • C. Supp. 1950, § 1613.8 (Williams, § 1613.13)
  • impl. am. Acts 1979, ch. 68, § 3
  • T.C.A. (orig. ed.), § 67-2204.
§ 67-1-1205. Levy on equitable interest.
  1. (a) If the officer cannot find personal or real property belonging to the taxpayer to satisfy the distress warrant, the officer shall levy the distress warrant upon any equitable interest owned by the taxpayer in either personal or real property in the officer's county, the levy to be made on the equitable interest owned in personal property first and on the equitable interest owned in real property last.
  2. (b) The officer shall serve a copy of the distress warrant levied upon the equitable interest, together with the officer's return on the distress warrant, on the holder of the legal title and the secured creditor of record, which may be done by registered mail, notifying them of the intention to request an order of sale by the chancery court. Thereafter, the officer shall return the distress warrant, which shall show notice to the legal title holder and to the secured creditor of record of the levy and intent to return, to the chancery court of the county in which the equitable interest was levied upon, and the equitable interest or the property, whichever is deemed necessary by the court, shall be sold under the orders of that court for the satisfaction of any indebtedness that is a prior lien on the property and for the satisfaction of the distress warrant.
  3. (c) The distress warrant and return, together with any reply to the warrant, shall be heard before the chancellor after the second rule day after the distress warrant has been returned, the hearing on the distress warrant, which shall be subject to review by appeal, to have precedence over all other causes except those affecting state revenue. At the hearing, such orders of reference or of sale or otherwise, as may be necessary, shall be made to the end that the creditor's right shall be protected and the tax due the state may be collected as expeditiously as possible. The legality of the tax cannot be inquired into in this proceeding for any reason, the remedy of the taxpayer being expressly limited to that afforded under part 9 of this chapter.
  4. (d) Nothing in this part shall allow a levy on estates held in realty by a husband and wife as tenants by the entireties, unless liability for the tax is joint with the husband and wife.
History (3)
  • Acts 1949, ch. 186, § 1
  • C. Supp. 1950, § 1613.9 (Williams, § 1613.13a)
  • T.C.A. (orig. ed.), § 67-2205.
§ 67-1-1206. Remedy supplemental.
  1. The remedy and procedure prescribed in this part is cumulative to any other remedies or procedures now prescribed with reference to any particular state taxes, fees, fines, penalties, interest and revenues. No other remedy prescribed by any particular taxing statute shall be held to be exclusive or to prevent the collecting officer from proceeding with the collection of the revenues under this part.
History (3)
  • Acts 1941, ch. 36, § 4
  • C. Supp. 1950, § 1613.10 (Williams, § 1613.14)
  • T.C.A. (orig. ed.), § 67-2206.
Part 13 General Powers to Obtain Evidence
§ 67-1-1301. Power of commissioner and comptroller of the treasury to determine correctness of taxes and fees.
  1. For the purpose of ascertaining the correctness of any tax return, making an assessment where no tax return has been made, determining the liability of any person, firm or corporation for any taxes or fees of any nature whatsoever that may be due or owing to the state of Tennessee, or for determining the liability at law or in equity of any transferee or fiduciary of any person, firm or corporation with respect of any taxes or fees due or owing to the state of Tennessee, or collecting any such liability, the commissioner of revenue, the comptroller of the treasury, or their duly authorized representatives, are authorized to:
    1. (1) Examine any books, papers, records or other data that may be relevant or material to such inquiry;
    2. (2) Summon the person, firm or corporation liable for taxes or fees or any officer or employee of such person, firm or corporation, or any person, firm or corporation having possession, custody or care of books of account containing entries relating to the business of the person, firm or corporation liable for taxes or fees, or any other person, firm or corporation the commissioner, the comptroller of the treasury, or their duly authorized representatives, may deem proper, to appear before the commissioner, comptroller of the treasury, or their duly authorized representatives, at a time and place named in the summons and to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to such inquiry; and
    3. (3) Take such testimony of the person, firm or corporation concerned, under oath, as may be relevant to such inquiry.
History (2)
  • Acts 1963, ch. 90, § 1
  • T.C.A., § 67-5501.
§ 67-1-1302. Persons subject to subpoena power.
  1. It is the declared intent of this part that all persons, firms or corporations whatsoever having any knowledge pertaining to liabilities for taxes or fees due the state of Tennessee, and any books, papers, records or other data pertaining to liabilities for taxes or fees due the state of Tennessee, shall be subject to the subpoena power granted under this part.
History (2)
  • Acts 1963, ch. 90, § 2
  • T.C.A., § 67-5502.
§ 67-1-1303. Failure to appear when subpoenaed — Penalty.
  1. Failure of any person, firm or corporation so subpoenaed to attend shall be certified by the commissioner of revenue or the comptroller of the treasury to the chancery court in whose judicial district such person, firm or corporation resides, and such chancery court shall exercise authority granted by law in the treating of contempt of court matters, including those powers granted in §§ 29-9-103 — 29-9-105; all to the end that the person, firm or corporation shall be compelled to appear at a time and place to be named by the chancery court.
Backlinks (1)
History (2)
  • Acts 1963, ch. 90, § 3
  • T.C.A., § 67-5503.
§ 67-1-1304. Failure to testify when subpoenaed — Penalty.
  1. Any person, firm or corporation who appears as summoned, but upon appearance refuses to testify on matters not privileged by law, shall be punished as prescribed in § 67-1-1303.
History (2)
  • Acts 1963, ch. 90, § 4
  • T.C.A., § 67-5504.
§ 67-1-1305. Compensation of witness.
  1. Any persons, firms or corporations so subpoenaed shall be reimbursed necessary traveling expenses from their homes to the place of hearing and other necessary expenses, as determined by the commissioner or the comptroller of the treasury, and those persons, firms or corporations not employees of the state shall be paid at the rate of five dollars ($5.00) per day for each day or portion of a day in attendance at such hearings.
History (2)
  • Acts 1963, ch. 90, § 5
  • T.C.A., § 67-5505.
Part 14 Tax Enforcement Procedures Act
§ 67-1-1401. Short title.
  1. This part shall be known and may be cited as the “Tax Enforcement Procedures Act.”
History (2)
  • Acts 1972, ch. 762, § 1
  • T.C.A., § 67-6001.
§ 67-1-1402. Application and construction.
  1. (a) This part shall apply to every public tax, license or fee, and/or any penalty or interest payable thereon, levied under any existing or later enacted law that is codified in this or any other title and is collectible by the commissioner of revenue.
  2. (b) The purpose of this part is to supplement and clarify existing provisions of the general law relating to the enforcement of state taxes and to compile in a single part the principal enforcement procedures previously enacted and codified in numerous other chapters of this title.
  3. (c) In the event of any conflict between the provisions of this part and those of any other specific statutory provisions contained elsewhere in this title or in any other title, it is declared to be the legislative intent that, to the extent such other specific provisions are inconsistent with or different from this part, this part shall prevail. There shall be preserved and prevail over this part such other provisions of this title or of any other title that govern, restrict, or confer special authority or powers upon the commissioner or the commissioner's delegate in the exercise of each of their responsibilities to enforce the collection of public taxes and that are not inconsistent with this part, such as, but not limited to, such other provisions relating to confiscation and/or seizure and sale of contraband beer and/or other such beverages and tobacco products as set forth in title 57, chapter 2, and chapter 4, part 10 of this title.
History (2)
  • Acts 1972, ch. 762, § 1
  • T.C.A., § 67-6002.
§ 67-1-1403. Lien for taxes in favor of state.
  1. (a) If any person liable to pay any state tax or fee administered by the commissioner of revenue neglects or refuses to pay the tax or fee, the amount, including additionally incurred taxes, fees, penalties, interest, and costs, shall be a lien in favor of the state. Such lien shall arise at the time an initial proposed assessment of any liability is made, and it shall continue until the amounts of the original proposed assessment and any subsequent assessments of liability for taxes, fees, penalties, interest, or costs are fully paid. The lien shall attach to all interests in property, either real or personal, tangible or intangible, in this state then owned or subsequently acquired by the person against whom the proposed assessment is made. For purposes of this section, the definition of “assessment” is as provided in this part and the rules promulgated pursuant to this part.
  2. (b) The commissioner shall cause a notice of such lien to be recorded in the office of the county register of deeds in the county or counties in which the taxpayer's business or residence is located, or in any county in which the taxpayer has an interest in property, and such notice shall be recorded in the same manner as liens are recorded in that office. There shall be no fees collected by the county register at the time such a notice is recorded, but the county register shall extend credit to the department for such fees as are chargeable, and submit the county register's bill at the end of each month to the department in order to obtain payment. Such recordation shall constitute notice of both the original proposed assessment and all subsequent assessments of liability against the same taxpayer. Upon request, the department shall disclose the specific amount of liability at a given date to any interested party legally entitled to such information.
  3. (c) The lien of the state of Tennessee for taxes or fees, or both, shall be superior to all liens and security interests created under Tennessee law except:
    1. (1) County and municipal ad valorem taxes;
    2. (2) Deeds or deeds of trust that are recorded prior to the recordation of notice of the state lien;
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    3. (3) Security interests created pursuant to Article 9 of the Uniform Commercial Code, compiled in title 47, chapter 9, that require filing for perfection and that are properly filed prior to recordation of the notice of the state lien;
    4. (4) Security interests perfected under the Uniform Commercial Code without filing, as provided in title 47, chapter 9, that are properly perfected prior to recordation of the notice of the state lien; and
    5. (5) Vendors' liens on real estate provided for in title 66, chapter 10 that are recorded prior to the recordation of notice of the state lien.
  4. (d) Notwithstanding any other law to the contrary, the lien for taxes imposed by chapter 8, parts 2-5 of this title shall arise at the date of death, and the lien for taxes imposed by chapter 8, part 1 of this title shall arise at the date of gift and shall attach to any interest in property transferred and to any interest in property acquired in exchange or substitution for any property transferred.
  5. (e) Nothing in this section shall be interpreted to give the state priority over any deed of trust or any security interest perfected under the Uniform Commercial Code, compiled in title 47, that is filed prior to the filing of the notice of state tax lien, regardless of when such taxes are assessed.
  6. (f)
    1. (1) The notice of lien required to be filed under subsection (b), or any renewal of the lien, shall be effective for ten (10) years from the date of filing. Any such notice of lien that has remained on file for more than ten (10) years, without renewal, shall be null and void against all persons.
    2. (2) The commissioner may cause a renewal of such notice of lien to be filed prior to the expiration of ten (10) years from the filing of the original notice, if a lien in favor of the state under subsection (a) continues to exist against the taxpayer. If such renewal is filed prior to the expiration of the ten-year period, the priority of the state lien for taxes covered by the notice shall continue to be determined under subsection (c), based on the date of filing of the original notice of lien.
  7. (g) Any right to redemption referred to in this part shall not be affected by subsection (f).
Backlinks (7)
History (8)
  • Acts 1978, ch. 686, § 1
  • T.C.A., § 67-6046
  • Acts 1984, ch. 781, § 1
  • 1985, ch. 453, § 7
  • 1994, ch. 640, § 1
  • 2000, ch. 846, § 30
  • 2014, ch. 854, § 4
  • 2022, ch. 681, § 1.
§ 67-1-1404. “Levy” defined.
  1. “Levy,” as used in this title, includes the power of distraint and seizure by any means.
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History (3)
  • Acts 1972, ch. 762, § 1
  • 1981, ch. 65, § 2
  • T.C.A., § 67-6004(a).
§ 67-1-1405. Collection by levy authorized.
  1. If any person liable to pay any tax neglects or refuses to pay the tax within ten (10) days after notice and demand, it shall be lawful for the commissioner or the commissioner's delegate to collect the tax, and any further sum as shall be sufficient to cover the expenses of the levy, by levy upon all property, and rights to property, belonging to the person or on which there is a lien provided by law for the payment of the tax.
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History (3)
  • Acts 1972, ch. 762, § 1
  • 1981, ch. 65, § 1
  • T.C.A., § 67-6003.
§ 67-1-1406. Notice and demand.
  1. (a) If the commissioner or the commissioner's delegate makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the commissioner or the commissioner's delegate, and, upon failure or refusal to pay such tax, collection of the tax by levy shall be lawful without regard to the ten-day period provided in § 67-1-1405.
  2. (b) Before a levy is made under § 67-1-1405 upon the salary or wages of a person with respect to any unpaid tax, the commissioner or the commissioner's delegate shall notify the person in writing of an intention to do so. The notice shall be given not less than ten (10) days before the date of the levy by delivering it in person, or by leaving it at the dwelling or usual place of business of the person, or by mailing it to the person's last known address.
  3. (c) The ten-day period provided for in subsection (b) does not apply to a levy, if the commissioner or the commissioner's delegate has made a finding pursuant to subsection (a) that the collection of the tax is in jeopardy.
Backlinks (2)
History (3)
  • Acts 1972, ch. 762, § 1
  • 1981, ch. 65, §§ 1, 2
  • T.C.A., §§ 67-6003, 67-6004(b)(1), (c).
§ 67-1-1407. Property subject to levy — Exemptions.
  1. (a) A levy shall extend only to property possessed and obligations existing at the time of the levy. In any case in which the commissioner or the commissioner's delegate may levy upon property or rights to property, the commissioner or the commissioner's delegate may seize and sell such property or rights to property, whether real or personal, tangible or intangible. Personal property exemptions provided in title 26, chapter 2 shall not be applicable.
  2. (b)
    1. (1) Enumeration. There shall be exempt from levy:
      1. (A) Wearing Apparel and School Books. Such items of wearing apparel and such school books as are necessary for the taxpayer or for members of the taxpayer's family;
      2. (B) Fuels, Provisions, Furniture, and Personal Effects. If the taxpayer is the head of the family, so much of the fuel, provisions, furniture, and personal effects in the taxpayer's household, and of the arms for personal use, livestock, and poultry of the taxpayer, as does not exceed five hundred dollars ($500) in value;
      3. (C) Books and Tools of a Trade, Business, or Profession. So many of the books and tools necessary for the trade, business or profession of the taxpayer as do not exceed in the aggregate two hundred fifty dollars ($250) in value; and
      4. (D) Unemployment Benefits. Any amount payable to an individual with respect to the individual's unemployment, including any portion of the amount payable with respect to dependents, under the unemployment compensation law of this state.
    2. (2) Appraisal. The officer seizing property of the type described in subdivision (b)(1) shall appraise and set aside to the owner the amount of such property declared to be exempt. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure, the commissioner or the commissioner's delegate shall summon three (3) disinterested individuals who shall make the valuation.
    3. (3) No Other Property Exempt. Notwithstanding any other law of this state, no property or rights to property shall be exempt from levy other than the property specifically made exempt by subdivision (b)(1).
History (3)
  • Acts 1972, ch. 762, §§ 1, 2
  • 1981, ch. 65, § 2
  • T.C.A., § 67-6004(a), 67-6007.
§ 67-1-1408. Levy on pay — Duration, release, and renewal.
  1. (a) The effect of a levy on salary or wages payable to or receivable by a taxpayer shall be continuous from the date a levy is made until the liability out of which the levy arose is satisfied or becomes unenforceable by reason of lapse of time, or until the expiration of the employer's payroll period that ends immediately prior to three (3) calendar months after the levy is made, whichever occurs first.
  2. (b) With respect to a levy made under this section, the commissioner or the commissioner's delegate shall promptly release the levy when the liability out of which it arose is satisfied or becomes unenforceable by reason of lapse of time, and shall promptly notify the person upon whom the levy was made that it has been released.
  3. (c) If, pursuant to subsection (a), the period of effectiveness for a levy expires prior to the time the liability out of which the levy arose is satisfied or becomes unenforceable by reason of lapse of time, the commissioner or the commissioner's delegate may subsequently proceed to levy on salary or wages in like manner as often as may be necessary until the liability out of which the levy arose is fully satisfied or becomes unenforceable by reason of lapse of time.
History (3)
  • Acts 1972, ch. 762, § 1
  • 1981, ch. 65, § 2
  • T.C.A., § 67-6004(b)(2)-(b)(4).
§ 67-1-1409. Successive seizures under levy.
  1. Whenever any property or right to property upon which levy has been made by virtue of § 67-1-1405 is not sufficient to satisfy the claim of the state for which levy is made, the commissioner or the commissioner's delegate may, thereafter, as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claims exist, until the amount due from the taxpayer, together with all expenses, is fully paid.
History (2)
  • Acts 1972, ch. 762, § 1
  • T.C.A., § 67-6005.
§ 67-1-1410. Levy — Padlocking premises.
  1. (a) If the commissioner or the commissioner's delegate, at the time of the levy, shall determine that it is in the best interest of both the state and taxpayer, the commissioner or the commissioner's delegate may place padlocks on the doors of any business enterprise that is delinquent in filing and/or paying state taxes. The commissioner or the commissioner's delegate shall also post notices of levy and distraint on each of the doors so padlocked.
  2. (b) If, within three (3) working days, the tax deficiency has not been satisfied or satisfactory arrangements for payment made, the commissioner or the commissioner's delegate shall obtain written permission from the owner of the premises, or remove the property levied upon from the premises.
  3. (c) It is a Class C misdemeanor for anyone to enter the padlocked premises without prior approval of the commissioner or the commissioner's delegate.
History (3)
  • Acts 1972, ch. 762, § 1
  • T.C.A., § 67-6006
  • Acts 1989, ch. 591, § 113.
§ 67-1-1411. Levy — Taxpayer's bond pending appeal.
  1. In the event the person against whom the levy and distraint, as provided in this part, has appealed the ruling of the commissioner on the tax sought to be collected or a suit contesting the collection of the subject tax is pending in a court of competent jurisdiction, the person shall have the right to post bond equaling the amount of the tax liability in lieu of payment until the appeal or suit is finalized. Further, if the taxpayer is successful in the taxpayer's appeal, then the state shall pay the taxpayer interest at the rate of six percent (6%) per annum on the amount of tax liability in question.
History (2)
  • Acts 1972, ch. 762, § 1
  • T.C.A., § 67-6008.
§ 67-1-1412. Levy — Surrender of property required.
  1. (a) Requirement. Any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made shall, upon demand of the commissioner or the commissioner's delegate, surrender such property or rights, or discharge such obligation, to the commissioner or the commissioner's delegate, except such part of the property or rights as is, at the time of such demand, subject to an attachment or execution under any judicial process.
  2. (b) Enforcement of Levy.
    1. (1) Extent of Personal Liability. Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the commissioner or the commissioner's delegate, shall be liable in that person's own person and estate to the state in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, together with costs and interest on such sum at the rate of six percent (6%) per annum from the date of such levy. Any amount other than costs recovered under this subdivision (b)(1) shall be credited against the tax liability for the collection of which such levy was made.
    2. (2) Penalty for Violation. In addition to the personal liability imposed by subdivision (b)(1), if any person required to surrender property or rights to property fails or refuses to surrender such property or rights to property without reasonable cause, such person shall be liable for a penalty equal to fifty percent (50%) of the amount recoverable under subdivision (b)(1). No part of such penalty shall be credited against the tax liability for the collection of which such levy was made. Such amount shall be paid into the general fund.
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  3. (c) Effect of Honoring Levy. Any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made who, upon demand by the commissioner or the commissioner's delegate, surrenders such property or rights to property or discharges such obligation to the commissioner or the commissioner's delegate or who pays a liability under subdivision (b)(1) shall be discharged from any obligation or liability to the delinquent taxpayer with respect to such property or rights to property arising from such surrender or payment. In the case of a levy that is satisfied pursuant to subsection (b), such person shall also be discharged from any obligation or liability to any beneficiary arising from such surrender or payment.
  4. (d) “Person” Defined. “Person,” as used in subsection (a), includes an officer or employee of a corporation or a member or employee of a partnership who, as such officer, employee or member, is under a duty to surrender the property or rights to property, or to discharge the obligation.
Backlinks (1)
History (2)
  • Acts 1972, ch. 762, § 2
  • T.C.A., § 67-6009.
§ 67-1-1413. Levy — Production of books.
  1. If a levy has been made or is about to be made on any property or right to property, any person having custody or control of any books or records, containing evidence or statements relating to the property or right to property subject to levy shall, upon demand of the commissioner or the commissioner's delegate, exhibit such books or records to the commissioner or the commissioner's delegate.
History (2)
  • Acts 1972, ch. 762, § 3
  • T.C.A., § 67-6010.
§ 67-1-1414. Notice of seizure.
  1. As soon as practicable after seizure of property, notice in writing shall be given by the commissioner or the commissioner's delegate to the owner of the property, or, in the case of personal property, the possessor of the personal property, or shall be left at the owner's or possessor's usual place of abode or business if the owner or possessor has such within the state. If the owner cannot be readily located, or has no dwelling or place of business within the state, the notice may be mailed to the owner's last known address. Such notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property seized and, in the case of real property, a description, with reasonable certainty, of the property seized.
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History (2)
  • Acts 1972, ch. 762, § 4
  • T.C.A., § 67-6011.
§ 67-1-1415. Notice of sale.
  1. The commissioner or the commissioner's delegate shall, as soon as practicable after the seizure of the property, give notice to the owner, in the manner prescribed in § 67-1-1414. The notice shall be given not less than thirty (30) days before the date the property seized is sold, and cause a notification to be published in some newspaper published or generally circulated within the county in which such seizure is made, or if there is no newspaper published or generally circulated in such county, post such notice at the county courthouse, and in not less than two (2) other public places. Such notice shall specify the property to be sold, and the time, place, manner and conditions of the sale of the property. Whenever levy is made without regard to the ten-day period provided in § 67-1-1405, public notice of sale of the property seized shall not be made within such ten-day period unless § 67-1-1419, relating to sale of perishable goods, is applicable.
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History (3)
  • Acts 1972, ch. 762, § 4
  • T.C.A., § 67-6012
  • Acts 1992, ch. 857, § 4.
§ 67-1-1416. Sale of indivisible property.
  1. If any property liable to levy is not divisible so as to enable the commissioner or the commissioner's delegate by sale of a part of the property to raise the whole amount of the tax and expenses, the whole of such property shall be sold.
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History (2)
  • Acts 1972, ch. 762, § 4
  • T.C.A., § 67-6013.
§ 67-1-1417. Time and place of sale.
  1. The time of sale shall not be less than ten (10) days nor more than forty (40) days from the time of giving public notice under § 67-1-1415. The place of sale shall be within the county in which the property is seized, except by special order of the commissioner or the commissioner's delegate.
History (2)
  • Acts 1972, ch. 762, § 4
  • T.C.A., § 67-6014.
§ 67-1-1418. Manner and conditions of sale.
  1. (a) Minimum Price. Before the sale, the commissioner or the commissioner's delegate shall determine a minimum price for which the property shall be sold, and if no person offers for such property at the sale the amount of the minimum price, the property shall be declared to be purchased at such price for the state; otherwise, the property shall be declared to be sold to the highest bidder. In determining the minimum price, the commissioner or the commissioner's delegate shall take into account the expense of making the levy and sale.
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  2. (b) Additional Rules Applicable to Sale. The commissioner shall by regulations prescribe the manner and other conditions of the sale of property seized by levy. If one (1) or more alternative methods or conditions are permitted by regulations, the commissioner or the commissioner's delegate shall select the alternatives applicable to the sale. Such regulations shall provide:
    1. (1) That the sale shall not be conducted in any manner other than:
      1. (A) By public auction;
      2. (B) By public internet auction; or
      3. (C) By public sale under sealed bids;
    2. (2) In the case of the seizure of several items of property, whether such items shall be offered separately, in groups, or in the aggregate; and whether, those items shall be sold under whichever method produces the highest aggregate amount;
    3. (3) Whether the announcement of the minimum price determined by the commissioner or the commissioner's delegate may be delayed until the receipt of the highest bid;
    4. (4) Whether payment in full shall be required at the time of acceptance of a bid, or whether a part of such payment may be deferred for such period, not to exceed one (1) month, as may be determined by the commissioner or the commissioner's delegate to be appropriate;
    5. (5) The extent to which methods, including advertising, in addition to those prescribed in § 67-1-1415, may be used in giving notice of the sale; and
    6. (6) Under what circumstances the commissioner or the commissioner's delegate may adjourn the sale from time to time, but such adjournments shall not be for a period to exceed in total one (1) month.
  3. (c) Payment of Amount Bid. If payment in full is required at the time of acceptance of a bid and is not then and there paid, the commissioner or the commissioner's delegate shall forthwith proceed to again sell the property in the manner provided in this section. If the conditions of the sale permit part of the payment to be deferred, and if such part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price of such part of the purchase price as has not been paid, together with interest at the rate of six percent (6%) per annum from the date of the sale; or, in the discretion of the commissioner or the commissioner's delegate, the sale may be declared by the commissioner or the commissioner's delegate to be null and void for failure to make full payment of the purchase price, and the property may again be advertised and sold as provided in §§ 67-1-1415, 67-1-1416 and this section. In the event of such readvertisement and sale, any new purchaser shall receive such property, or rights to property, free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by such defaulting purchaser shall be forfeited.
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History (3)
  • Acts 1972, ch. 762, § 4
  • T.C.A., § 67-6015
  • Acts 2005, ch. 499, § 9.
§ 67-1-1419. Appraisal and disposition of perishable property.
  1. If the commissioner or the commissioner's delegate determines that any property seized is liable to perish or become greatly reduced in price or value by keeping, or that such property cannot be kept without great expense, the commissioner or the commissioner's delegate shall appraise the value of such property and:
    1. (1) Return to Owner. If the owner of the property can be readily found, the commissioner or the commissioner's delegate shall give such owner notice of such determination of the appraised value of the property. The property shall be returned to the owner if, within such time as may be specified in the notice, the owner:
      1. (A) Pays to the commissioner or the commissioner's delegate an amount equal to the appraised value; or
      2. (B) Gives bond in such form with such sureties, and, in such amount as the commissioner or the commissioner's delegate shall prescribe, to pay the appraised amount at such time as the commissioner or the commissioner's delegate determines to be appropriate in the circumstances;
    2. (2) Immediate Sale. If the owner does not pay such amount or furnish such bond in accordance with this section, the commissioner or the commissioner's delegate shall as soon as practicable make public sale of the property in accordance with such regulations as may be prescribed by the commissioner.
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History (2)
  • Acts 1972, ch. 762, § 5
  • T.C.A., § 67-6016.
§ 67-1-1420. Sale — Redemption of property.
  1. (a) Before Sale. Any person whose property has been levied upon shall have the right to pay the amount due, together with the expenses of the proceeding, if any, to the commissioner or the commissioner's delegate at any time prior to the sale of the property, and, upon such payment, the commissioner or the commissioner's delegate shall restore such property to the person, and all further proceedings in connection with the levy on such property shall cease from the time of such payment.
  2. (b) Redemption of Real Estate After Sale.
    1. (1) Period. The owners of any real property sold as provided in §§ 67-1-1414 — 67-1-1418, their heirs, executors or administrators, or any person having any interest in the property, or a lien on the property, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of such property, at any time within one hundred twenty (120) days after the sale of the property.
    2. (2) Price. Such property or tract of property shall be permitted to be redeemed upon payment to the purchaser, or in case the purchaser cannot be found in the county in which the property to be redeemed is situated, then to the commissioner or the commissioner's delegate, for the use of the purchaser, the purchaser's heirs, or assigns, the amount paid by such purchaser and interest on the amount paid at the current composite prime rate as published by the federal reserve board as of the date of purchase.
    3. (3) Record. When any lands sold are redeemed as provided in this section, the commissioner or the commissioner's delegate shall cause entry of the fact to be made upon the record provided for in § 67-1-1424, and such entry shall be evidence of such redemption.
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History (3)
  • Acts 1972, ch. 762, § 6
  • 1983, ch. 182, § 4
  • T.C.A., § 67-6017.
§ 67-1-1421. Certificate of sale.
  1. (a) In the case of property sold as provided in §§ 67-1-1414 — 67-1-1418, the commissioner or the commissioner's delegate shall give to the purchaser a certificate of sale upon payment in full of the purchase price. In the case of real property, such certificate shall set forth the real property purchased, for those taxes the property was sold, the name of the purchaser, and the price paid for the property.
  2. (b) In all cases of sale pursuant to §§ 67-1-1414 — 67-1-1418 of property other than real property, the certificate of such sale:
    1. (1) As Evidence. Shall be prima facie evidence of the right of the officer to make such sale and conclusive evidence of the regularity of the officer's proceedings in making the sale;
    2. (2) As Conveyances. Shall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold;
    3. (3) As Authority for Transfer of Corporate Stock. If such property consists of stocks, shall be notice, when received, to any corporation, company, or association of such transfer, and shall be authority to such corporation, company, or association to record the transfer on its books and records in the same manner as if the stocks were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether cancelled or not;
    4. (4) As Receipts. If the subject of sale is securities or other evidences of debt, it shall be a good and valid receipt to the person holding the same, as against any person holding or claiming to hold possession of such securities or other evidences of debt; and
    5. (5) As Authority for Transfer of Title to Motor Vehicle. If such property consists of a motor vehicle, shall be notice, when received, to any public official charged with the registration of title to motor vehicles, of such transfer and shall be authority to such official to record the transfer on the official's books and records in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the registration of title, in lieu of any original or prior certificate, which shall be void, whether cancelled or not.
Backlinks (1)
History (2)
  • Acts 1972, ch. 762, §§ 7, 8
  • T.C.A., §§ 67-6018, 67-6019.
§ 67-1-1422. Sale of real property — Deed.
  1. (a)
    1. (1) In the case of any real property sold as provided in §§ 67-1-1414 — 67-1-1418 and not redeemed in the manner and within the time provided in § 67-1-1420, the commissioner or the commissioner's delegate shall execute to the purchaser of such real property at such sale, upon the purchaser's surrender of the certificate of sale, a deed of the real property so purchased by the purchaser, reciting the facts set forth in the certificate.
    2. (2) If real property is declared purchased by the state at a sale pursuant to §§ 67-1-1414 — 67-1-1418, the commissioner or the commissioner's delegate shall at the proper time execute a deed for the property and without delay cause such deed to be duly recorded in the proper registry of deeds.
  2. (b) In the case of the sale of real property pursuant to §§ 67-1-1414 — 67-1-1418, the deed of such sale:
    1. (1) As Evidence. The deed of sale given pursuant to subsection (a) shall be prima facie evidence of the facts stated in the deed; and
    2. (2) As Conveyance of Title. If the proceedings of the commissioner or the commissioner's delegate as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property thus sold at the time the lien of the state attached to the property.
Backlinks (1)
History (2)
  • Acts 1972, ch. 762, §§ 7, 8
  • T.C.A., §§ 67-6020, 67-6021.
§ 67-1-1423. Effect of certificate or deed on junior encumbrances.
  1. A certificate of sale of personal property given or a deed to real property executed pursuant to § 67-1-1421 or § 67-1-1422 shall discharge such property from all liens, encumbrances, and titles over which the lien of the state with respect to which the levy was made had priority.
History (2)
  • Acts 1972, ch. 762, § 8
  • T.C.A., § 67-6022.
§ 67-1-1424. Records of sales and redemptions.
  1. (a) Requirement. The commissioner or the commissioner's delegate shall keep a record of all sales of real property under §§ 67-1-1414 — 67-1-1418 and of redemptions of such property. The record shall set forth the tax for which any such sale was made, the dates of seizure and sale, the name of the party assessed and all proceedings in making such sale, the amount of expenses, the names of the purchasers, and the date of the deed.
  2. (b) Copy as Evidence. A copy of such record, or any part of the record, certified by the commissioner or the commissioner's delegate shall be evidence in any court of the truth of the facts stated in the record.
Backlinks (1)
History (2)
  • Acts 1972, ch. 762, § 9
  • T.C.A., § 67-6023.
§ 67-1-1425. Expenses of levy and sale.
  1. The commissioner or the commissioner's delegate shall determine the expenses to be allowed in all cases of levy and sale.
History (2)
  • Acts 1972, ch. 762, § 10
  • T.C.A., § 67-6024.
§ 67-1-1426. Application of proceeds of levy and sale.
  1. (a) Collection of Liability. Any money realized by proceedings under this chapter, whether by seizure, by surrender under § 67-1-1412, except pursuant to § 67-1-1412(b)(2), or by sale of seized property, or by sale of property redeemed by the state, if the interest of the state in such property was a lien arising under this title, shall be applied as follows:
    1. (1) Expense of Levy and Sale. The expenses of the proceedings should be deducted from the money received first;
    2. (2) Specific Tax Liability on Seized Property. If the property seized and sold is subject to a tax imposed by any revenue law that has not been paid, the amount remaining after applying subdivision (a)(1) shall then be applied against such tax liability and, if such tax was not previously assessed, a notice of proposed assessment shall then be issued; and
    3. (3) Liability of Delinquent Taxpayer. The amount, if any, remaining after applying subdivisions (a)(1) and (2) shall then be applied against the liability with respect to which the levy was made or the sale was conducted.
  2. (b) Surplus Proceeds. Any surplus proceeds remaining after the application of subsection (a) shall, upon application and satisfactory proof in support of a surplus, be credited or refunded by the commissioner or the commissioner's delegate to the person or persons legally entitled to the surplus.
History (3)
  • Acts 1972, ch. 762, § 11
  • T.C.A., § 67-6025
  • Acts 2014, ch. 854, § 5.
§ 67-1-1427. Release of levy.
  1. It is lawful for the commissioner or the commissioner's delegate under regulations prescribed by the commissioner, to release the levy upon all or part of the property or rights to property levied upon where the commissioner or the commissioner's delegate determines that such action will facilitate the collection of the liability, but such release shall not operate to prevent any subsequent levy.
Backlinks (1)
History (2)
  • Acts 1972, ch. 762, § 12
  • T.C.A., § 67-6026.
§ 67-1-1428. Return of wrongfully levied property.
  1. (a) If the commissioner or the commissioner's delegate determines that property has been wrongfully levied upon, it shall be lawful for the commissioner or the commissioner's delegate to return:
    1. (1) The specific property levied upon;
    2. (2) An amount of money equal to the amount levied upon; or
    3. (3) An amount of money equal to the amount of money received by the state from a sale of such property.
  2. (b) An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of nine (9) months from the date of such levy. For purposes of subdivision (a)(3), if property is declared purchased by the state at a sale pursuant to § 67-1-1418(a), relating to manner and conditions of sale, the state shall be treated as having received an amount of money equal to the minimum price determined pursuant to such section or, if larger, the amount received by the state from the resale of such property.
Backlinks (1)
History (2)
  • Acts 1972, ch. 762, § 12
  • T.C.A., § 67-6027.
§ 67-1-1429. Time limit for making levy — Release of lien.
  1. (a) Length of Period.
    1. (1) Where the assessment of any tax imposed by this or any other title has been made within the applicable period of limitation, such tax may be collected by levy or by a proceeding in court, but only if the levy is made or the proceeding begun:
      1. (A) Within six (6) years after the assessment of the tax becomes final; or
      2. (B) Prior to the expiration of any period for collection agreed upon in writing by the commissioner or the commissioner's delegate and the taxpayer before the expiration of such six-year period; or, if there is a release of levy under § 67-1-1427 after such six-year period, then before such release. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon period.
    2. (2) The period provided by this subsection (a) during which a tax may be collected by levy shall not be extended or curtailed by reason of a judgment against the taxpayer.
    3. (3) The period for collection provided in subdivision (a)(1)(A) shall not apply if the tax liability has been reduced to judgment in a suit begun within such period. Such tax may be collected at any time subsequent to assessment without limitation after such judgment.
    4. (4) Nothing in this section shall apply to the collection of ad valorem taxes assessed against real or personal property by any county or municipality in this state.
    5. (5) The period for collection provided in subdivision (a)(1)(A) ceases running upon the imposition of a bankruptcy stay as provided in 11 U.S.C. § 362 or upon the filing of a probate, receivership, or assignment for the benefit of creditors proceeding. Such period recommences running thirty (30) days after the stay is lifted or the proceeding prohibiting collection ends.
  2. (b) Date When Levy Is Considered Made. The date on which a levy on property or rights is made shall be the date on which the notice of seizure provided in § 67-1-1414 is given.
  3. (c) Release of Lien. At any time after the expiration of the period specified in subsection (a), the person holding title to the property on which the lien is placed may request the department to release the lien. If the department does not release the lien within sixty (60) days of the request, it shall be liable for court costs in any action to remove the lien.
Backlinks (1)
History (8)
  • Acts 1972, ch. 762, § 13
  • 1973, ch. 368, § 3
  • 1974, ch. 484, § 3
  • T.C.A., § 67-6028
  • Acts 1986, ch. 799, § 2
  • 1999, ch. 162, § 2
  • 2014, ch. 854, § 6
  • 2021, ch. 217, § 1.
§ 67-1-1431. Action where tax in jeopardy.
  1. (a) State Tax in Jeopardy.
    1. (1) In General. If the commissioner or the commissioner's delegate finds that a taxpayer designs to depart quickly from the state or to remove the taxpayer's property from the state, or to conceal the taxpayer or the taxpayer's property in the state, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect the state tax for the current or the preceding taxable periods unless such proceedings be brought without delay, the commissioner or the commissioner's delegate shall declare the taxable period for such taxpayer immediately terminated, and shall cause notice of such finding and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable period or so much of such tax as is unpaid, whether or not the time otherwise allowed by law for filing return and paying the tax has expired; and such taxes shall then become immediately due and payable. In any proceeding in court brought to enforce payment of taxes made due and payable by virtue of this section, the finding of the commissioner or the commissioner's delegate, made as provided in this section, whether made after notice to the taxpayer or not, shall be for all purposes presumptive evidence of jeopardy.
    2. (2) Corporation in Liquidation. If the commissioner or the commissioner's delegate finds that the collection of the tax of a corporation for the current or the preceding taxable period will be jeopardized by the distribution of all or a portion of the assets of such corporation in the liquidation of the whole or any part of its capital stock, the commissioner or the commissioner's delegate shall declare the taxable period for such taxpayer immediately terminated and shall cause notice of such finding and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable period or so much of such tax as is unpaid, whether or not the time otherwise allowed by law for filing a return and paying the tax has expired. Such taxes shall then become immediately due and payable.
  2. (b) Reopening of Taxable Period. Notwithstanding the termination of the taxable period of the taxpayer by the commissioner or the commissioner's delegate, as provided in subsection (a), the commissioner or the commissioner's delegate may reopen such taxable period each time the taxpayer is found by the commissioner or the commissioner's delegate to have a taxable occurrence within the taxable period since a termination of the period under subsection (a). A taxable period so terminated by the commissioner or the commissioner's delegate may be reopened by the taxpayer if the taxpayer files with the commissioner or the commissioner's delegate a true and accurate return for such taxable period, together with such other information as the commissioner may by regulation prescribe.
  3. (c) Furnishing of Bond Where Taxable Period Is Closed by the Commissioner or the Commissioner's Delegate. Payment of taxes shall not be enforced by any proceedings under this section prior to the expiration of the time otherwise allowed for paying such taxes if the taxpayer furnishes, under regulations prescribed by the commissioner, a bond to ensure the timely making of returns with respect to, and payment of, such taxes.
  4. (d) Jeopardy Assessments. If the commissioner or the commissioner's delegate believes that the collection of any tax under any provision of this or any other title will be jeopardized by delay, the commissioner or the commissioner's delegate shall, whether or not the time otherwise prescribed by law for making return and paying such tax has expired, immediately assess such tax, together with all interest, penalties, and any other additions to the tax provided for by law. Such tax, interest, penalties and additions to the tax shall then become immediately due and payable, and immediate notice and demand shall be made by the commissioner or the commissioner's delegate for the payment thereof.
Backlinks (3)
History (2)
  • Acts 1972, ch. 762, §§ 15, 16
  • T.C.A., §§ 67-6030, 67-6031.
§ 67-1-1432. Civil action — Assertion of state's lien.
  1. (a) Filing. In any case where there has been a refusal or neglect to pay any tax, or to discharge any liability with respect to any tax, whether or not levy has been made, the attorney general and reporter or the attorney general and reporter's delegate, or the staff attorney of the department of revenue or the staff attorney's delegate, at the request of the commissioner or the commissioner's delegate, may direct a civil action to be filed in chancery court to enforce the lien of the state under this title with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which the delinquent has any right, title, or interest, to the payment of such tax or liability.
  2. (b) Parties. All persons having liens upon or claiming any interest in the property involved in such action shall be made parties to the case.
  3. (c) Adjudication and Decree. The court shall, after the parties have been duly notified of the action, proceed to adjudicate all matters involved in the action and finally determine the merits of all claims to and liens upon the property, and, in all cases where a claim or interest of the state in the action is established, may decree a sale of such property, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court with respect to the interests of the parties and of the state. If the property is sold to satisfy a first lien held by the state, the state may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the commissioner or the commissioner's delegate directs.
  4. (d) Receivership. In any such proceeding, at the instance of the state, the court may appoint a receiver to enforce the lien or, upon certification by the commissioner or the commissioner's delegate during the pendency of such proceedings that it is in the public interest, may appoint a receiver with all the powers of a receiver in equity.
  5. (e) Intervention by State. If the state is not a party to a civil action or suit, the state may intervene in such action or suit to assert any lien arising under this title on the property that is the subject of such action or suit. In any case in which the application of the state to intervene is denied, the adjudication in such action or suit shall have no effect upon such lien.
History (2)
  • Acts 1972, ch. 762, §§ 17, 18
  • T.C.A., §§ 67-6032, 67-6033.
§ 67-1-1433. Enforcement of other liens.
  1. (a) If the state is not joined as a party, a judgment in any civil action or suit, or a judicial sale pursuant to such a judgment, with respect to property on which the state has or claims a lien under this title:
    1. (1) Shall be made subject to and without disturbing the lien of the state, if notice of such lien has been filed in the place provided by law for such filing at the time such action or suit is commenced; or
    2. (2) If a judicial sale of property pursuant to a judgment in any civil action or suit to which the state is not a party discharges a lien of the state arising under this title, the state may claim, with the same priority as its lien had against the property sold, the proceeds, exclusive of costs, of such sale at any time before the distribution of such proceeds is ordered.
  2. (b)
    1. (1) Notwithstanding subsection (a), a sale of property on which the state has or claims a lien, or a title derived from enforcement of a lien, under this title, made pursuant to an instrument creating a lien on such property, pursuant to a confession of judgment on the obligation secured by such an instrument, or pursuant to a nonjudicial sale under a statutory lien on such property shall, except as otherwise provided, be made subject to and without disturbing such lien or title, if notice of such lien was filed or such title recorded in the place provided by law for such filing or recording more than thirty (30) days before such sale, and the state is not given notice of such sale in the manner prescribed in subdivision (b)(2).
      Backlinks (2)
    2. (2) Special Rules.
      1. (A) Notice of Sale. Notice of a sale to which subdivision (b)(1) applies shall be given, in accordance with regulations prescribed by the commissioner, in writing, by registered or certified mail or by personal service, not less than twenty-five (25) days prior to such sale, to the commissioner or the commissioner's delegate.
      2. (B) Consent to Sale. Notwithstanding the notice requirement of this subsection (b), a sale described in subdivision (b)(1) of property shall discharge or divest such property of the lien or title of the state, if the state consents to the sale of such property free of such lien or title.
      3. (C) Sale of Perishable Goods. Notwithstanding the notice requirement of this section, a sale described in subdivision (b)(1) of property liable to perish or become greatly reduced in price or value by keeping, or that cannot be kept without great expense, shall discharge or divest such property of the lien or title of the state if notice of such sale is given, in accordance with regulations prescribed by the commissioner, in writing, by registered or certified mail or by personal service, to the commissioner or the commissioner's delegate before such sale. The proceeds, exclusive of costs, of such sale shall be held as a fund subject to the liens and claims of the state, in the same manner and with the same priority as such liens and claims had with respect to the property sold, for not less than thirty (30) days after the date of such sale.
  3. (c)
    1. (1) Right to Redeem. In the case of a sale of real property to which subdivision (b)(1) applies, to satisfy a lien prior to that of the state, the commissioner or the commissioner's delegate may redeem such property within the period allowable for redemption under law, as provided in § 67-1-1420.
      Backlinks (2)
    2. (2) Amount to Be Paid. In any case in which the state redeems real property pursuant to subdivision (c)(1), the amount to be paid for such property shall be the amount paid by the purchaser, plus six percent (6%) interest per annum.
    3. (3) Certificate of Redemption.
      1. (A) In General. In any case in which real property is redeemed by the state pursuant to this subsection (c), the commissioner or the commissioner's delegate shall execute a certificate of redemption for the property.
      2. (B) Filing. The commissioner or the commissioner's delegate shall, without delay, cause such certificate to be duly recorded in the proper registry of deeds.
      3. (C) Effect. A certificate of redemption executed by the commissioner or the commissioner's delegate shall constitute prima facie evidence of the regularity of such redemption and shall, when recorded, transfer to the state all the rights, title, and interest in and to such property acquired by the person from whom the state redeems such property by virtue of the sale of such property.
History (3)
  • Acts 1972, ch. 762, § 19
  • T.C.A., §§ 67-6034 — 67-6036
  • Acts 1994, ch. 640, § 2.
§ 67-1-1434. Civil action by person other than taxpayer.
  1. (a) Actions Permitted.
    1. (1) Wrongful Levy. If a levy has been made on property, or property has been sold pursuant to a levy, any person, other than the person against whom is assessed the tax out of which such levy arose, who claims an interest in or lien on such property and that such property was wrongfully levied upon may file a claim with the state board of claims.
    2. (2) Surplus Proceeds. If property has been sold pursuant to a levy, any person, other than the person against whom is assessed the tax out of which such levy arose, who claims an interest in or lien on such property junior to that of the state and to be legally entitled to the surplus proceeds of such sale may bring a civil action against the commissioner in chancery court.
    3. (3) Substituted Sale Proceeds. If property has been sold pursuant to an agreement whereby the commissioner has released that property from the liens and claims of the state of Tennessee in return for liens and claims of the same priority against the proceeds of the sale of the released property, any person who claims to be legally entitled to all or any amount of such substituted sale proceeds held as a fund pursuant to such agreement may bring a civil action against the commissioner in the chancery court.
  2. (b) Adjudication. The chancery court shall have jurisdiction to grant only such of the following forms of relief as may be appropriate in the circumstances:
    1. (1) Injunction. If a levy or sale would irreparably injure rights in property that the court determines to be superior to rights of the state in such property, the court may grant an injunction to prohibit the enforcement of such levy or to prohibit such sale;
    2. (2) Recovery of Property.
      1. (A) If the court determines that such property has been wrongfully levied upon, the court may:
        1. (i) Order the return of specific property, if the state is in possession of such property;
        2. (ii) Grant a judgment for the amount of money levied upon; or
        3. (iii) Grant a judgment for an amount not exceeding the amount received by the state from the sale of such property;
      2. (B) For purposes of subdivision (b)(2)(A)(iii), if the property was declared purchased by the state at a sale pursuant to § 67-1-1418(a), relating to manner and conditions of sale, the state shall be treated as having received an amount equal to the minimum price determined pursuant to such section or, if larger, the amount received by the state from the resale of such property;
    3. (3) Surplus Proceeds. If the court determines that the interest or lien of any party to an action under this section was transferred to the proceeds of a sale of such property, the court may grant a judgment in an amount equal to all or any part of the amount of the surplus proceeds of such sale; or
    4. (4) Substituted Sale Proceeds. If the court determines that a party has an interest in or lien on the amount held as a fund pursuant to an agreement, the court may grant a judgment in an amount equal to all or any part of the amount of such fund.
  3. (c) Validity of Assessment. For purpose of an adjudication under this section, the assessment of tax upon which the interest or lien of the state is based shall be conclusively presumed to be valid.
  4. (d) Limitation on Rights of Action. No action may be maintained against any officer or employee of the state, or former officer or employee, or the officer's or employee's personal representative with respect to any acts for which an action could be maintained under this section.
  5. (e) Requirements for Beginning or Proceeding with Action.
    1. (1) No suit or proceeding under this section shall be begun unless a request is made by certified mail, within nine (9) months of the date of the levy, for the return of money or property pursuant to § 67-1-1428.
    2. (2) No suit or proceeding under this section shall be begun after twelve (12) months from the date of filing the request required under subdivision (e)(1) or after six (6) months from the date of mailing, by certified mail, of a notice to the person making the request, of disallowance by the commissioner or the commissioner's delegate, whichever period ends sooner.
History (3)
  • Acts 1972, ch. 762, § 20
  • 1981, ch. 65, § 3
  • T.C.A., § 67-6037.
§ 67-1-1435. Sale of personal property by state.
  1. Any personal property acquired by the state in payment of or as security for debts arising under any provision of this or any other title may be sold by the commissioner or the commissioner's delegate in accordance with regulations as may be prescribed by the commissioner.
Backlinks (2)
History (2)
  • Acts 1972, ch. 762, § 21
  • T.C.A., § 67-6038.
§ 67-1-1436. Administration of real estate acquired by state.
  1. The commissioner or the commissioner's delegate shall have charge of all real estate that is or shall become the property of the state by judgment of forfeiture under any provision of this or any other title, or that has been or shall be assigned, set off, or conveyed by purchase or otherwise to the state in payment of debts or penalties arising thereunder, or that has been or shall be vested in the state by mortgage or other security for the payment of such debts, or that has been redeemed by the state, and of all trusts created for the use of the state in payment of such debts due them.
History (2)
  • Acts 1972, ch. 762, § 22
  • T.C.A., § 67-6039.
§ 67-1-1437. Obtaining evidence.
  1. (a) Examination of Books and Witnesses. For the purpose of ascertaining the correctness of any return, making a return where none has been made, determining the liability of any person for any amount under this or any other title, the commissioner or the commissioner's delegate is authorized to:
    1. (1) Examine any books, papers, records, or other data that may be relevant or material to such inquiry;
    2. (2) Summon the person liable for tax or required to perform the act, or any officer or employee of such person, or any person having possession, custody, or care of books of account containing entries relating to the business of the person liable for tax or required to perform the act, or any other person the commissioner or the commissioner's delegate may deem proper, to appear before the commissioner or the commissioner's delegate at a time and place named in the summons and to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to such inquiry; and
    3. (3) Take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry.
  2. (b) Summons.
    1. (1) Service. A summons issued under subdivision (a)(2) shall be served by the commissioner or the commissioner's delegate by an attested copy delivered in hand to the person to whom it is directed or left at that person's last and usual place of abode; and the certificate of service signed by the person serving the summons shall be evidence of the facts it states on the hearing of an application for the enforcement of the summons. When the summons requires the production of books, papers, records or other data, it shall be sufficient if such books, papers, records or other data are described with reasonable certainty.
    2. (2) Time and Place. The time and place of examination shall be such as may be fixed by the commissioner or the commissioner's delegate and as are reasonable under the circumstances. In no event shall the time be less than ten (10) days to appear to testify, or to produce books, papers, records or other data. The chancery court for the district in which such person resides or is found shall have jurisdiction by appropriate process to compel such attendance, testimony, or production of books, papers, records or other data.
    3. (3) Enforcement. Whenever any person summoned under subdivision (a)(2) neglects or refuses to obey such summons, or to produce books, papers, records or other data, or to give testimony, as required, the commissioner or the commissioner's delegate may apply to the judge of the chancery court for the judicial district within which the person so summoned resides or is found for an attachment against that person as for a contempt. It is the duty of the chancellor to hear the application, and, if satisfactory proof is made, to issue an attachment, directed to some proper officer, for the arrest of such person, and upon such person being brought before the chancellor to proceed to a hearing of the case. Upon such hearing, the chancellor shall have the power to make such order as the chancellor deems proper, not inconsistent with the law for the punishment of contempt, to enforce obedience to the requirements of the summons and to punish such person for that person's default or disobedience.
  3. (c) Oaths. Every officer or employee of the department designated by the commissioner for that purpose is authorized to administer such oaths or affirmations and to certify to such papers as may be necessary under this or any other title or any regulations made under this or any other title.
History (2)
  • Acts 1972, ch. 762, §§ 23-25
  • T.C.A., §§ 67-6040 — 67-6042.
§ 67-1-1438. Assessments by commissioner.
  1. (a) When the commissioner determines that any person has failed to pay the correct amount of any tax administered by the commissioner under this or any other title, the commissioner shall promptly issue to such taxpayer a notice of proposed assessment, together with notice that the taxpayer shall have the right to an informal conference with the commissioner or the commissioner's designee as set forth in subsection (b) and that the proposed assessment shall become a final assessment as set forth herein. The notice shall also state that, upon an assessment becoming final, the taxpayer shall have the right, as set forth in § 67-1-1801, to file suit to challenge the final assessment and collection of the tax in the appropriate chancery court of this state within ninety (90) days from the date such assessment becomes final. The commissioner may authorize any division, unit, or official within the department to issue notices of proposed assessment on the commissioner's behalf.
  2. (b) Any taxpayer to whom a notice of proposed assessment is issued shall have the right to an informal conference with the commissioner or the commissioner's designee to discuss the proposed assessment and to present such matters as may be relevant to the proposed assessment; provided, that written request for such conference is made within thirty (30) days after the date of the notice of proposed assessment. If a timely request for a conference is made, the commissioner or the commissioner's designee shall set a time and place for the conference within ten (10) days from the date of the request and shall give the taxpayer written notice of the conference. Upon written request by the taxpayer, the commissioner or the commissioner's designee may grant, in the commissioner's or designee's discretion, a continuation of the conference in writing for a period of time reasonably necessary for the taxpayer to provide additional information or documentation relevant to the proposed assessment. A continuation may be granted either before or after the conference is held, and the conference shall not be deemed to be concluded until the expiration of any such period of continuation. Within ten (10) days after the conclusion of the conference, the commissioner or the commissioner's designee shall give the taxpayer written notification of the commissioner's decision. If the commissioner's decision does not result in an adjustment to the proposed assessment, the proposed assessment shall become a final assessment as of the date of such decision. If the commissioner's decision results in an adjustment to the proposed assessment, the commissioner shall issue to the taxpayer a written determination setting forth the amount of tax that is due, if any, and such amount shall be a final assessment.
  3. (c) If the taxpayer does not request an informal conference within the time period prescribed in subsection (b), the proposed assessment shall become a final assessment on the thirty-first day after the date of the notice of proposed assessment. In addition, any taxpayer that has requested a conference as provided in subsection (b) may cancel the request, in writing, at any time before, during, or after such conference; in which case the proposed assessment shall become a final assessment on the date of the written notification by the taxpayer of such cancellation or on the thirty-first day after the date of the notice of proposed assessment, whichever is later.
  4. (d) Except as provided in subsection (c), the taxpayer shall not be prejudiced in any manner by either seeking or failing to seek an informal conference. The informal conference shall not be considered to be an administrative remedy and shall not constitute a contested case subject to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The commissioner shall not be prejudiced in any manner as a result of such conference, including any failure to issue a final assessment within the ten-day period prescribed in subsection (b); provided, however, that no interest shall accrue on any deficiency during the period beginning on the eleventh day after conclusion of the conference and ending upon issuance of the final assessment.
  5. (e) The informal conference process shall have all of the following characteristics:
    1. (1) Personnel conducting informal conferences shall exercise independent judgment with the objective of resolving disputed proposed assessments without litigation;
    2. (2) Informal conferences shall be conducted in an informal manner either by telephone or in person, at the taxpayer's option;
    3. (3) The taxpayer may participate in an informal conference without representation; may be represented by an officer, employee, partner, or member of the taxpayer; or may be represented by a third party of the taxpayer's choice;
    4. (4) Informal conference personnel shall make determinations regarding individual issues based on the facts and the law;
    5. (5) Informal conference personnel shall consider arguments as to the applicability of the tax laws and any new evidence presented; provided, that if the new evidence is substantial and should have been presented at the time of audit, the informal conference personnel may request the audit division to examine the evidence and to make a recommendation as to the effect of the evidence on the relevant issue;
    6. (6) The taxpayer shall have the right to bring witnesses to an in-person conference;
    7. (7) Informal conference personnel shall not engage in ex parte communications with audit division personnel regarding the issue under review; provided, however, that informal conference personnel may, on an ex parte basis, ask questions that involve ministerial, administrative, or procedural matters and that do not address the substance of the issues or the positions taken in the audit;
    8. (8) Informal conference decisions shall not be considered as precedent; and
    9. (9) Informal conference personnel may recommend to the commissioner that the department compromise a proposed assessment in accordance with § 67-1-102(b)(8).
  6. (f) When an assessment becomes final by operation of subsection (b) or (c), the taxpayer shall have the rights and remedies provided in part 18 of this chapter.
  7. (g) The commissioner or the commissioner's designee, in such person's discretion, may hold an informal conference with a taxpayer to discuss an assessment that has become final by operation of subsection (c) or to discuss the denial or deemed denial of a claim for refund under § 67-1-1802. Any such conference shall not toll any period of limitation or otherwise affect any remedy provided in part 18 of this chapter.
  8. (h) The commissioner may publish or otherwise publicize guidance to taxpayers, practitioners, and departmental personnel resulting from conference decisions; provided, however, that nothing in this subsection (h) shall be construed as authorizing the disclosure of return or tax information as defined in § 67-1-1701 and provided further that no conference decision shall be referenced or cited as:
    1. (1) Precedence in any instance; or
    2. (2) Guidance unless such guidance has been published or publicized as provided in this subsection (h).
Backlinks (4)
History (5)
  • Acts 1972, ch. 762, § 26
  • 1974, ch. 484, § 4
  • T.C.A., § 67-6043
  • Acts 2003, ch. 418, § 9
  • 2014, ch. 854, § 7.
§ 67-1-1439. Rulemaking by commissioner.
  1. The commissioner is authorized to prescribe all rules and regulations necessary for the administration of this chapter. Rules and regulations not inconsistent with this chapter shall have the force and effect of law when promulgated by the commissioner and approved by the attorney general and reporter. A copy of all such rules and regulations, in printed form, shall be furnished every collector of state taxes and shall be furnished to any other person upon request.
History (2)
  • Acts 1972, ch. 762, § 27
  • T.C.A., § 67-6044.
§ 67-1-1440. Crimes against revenue officers.
  1. (a) It is a Class E felony for any person to assault any officer or employee of the department while performing duties as such officer or employee, or to assault any such officer or employee or a member of such officer's or employee's immediate family at any other time, if it is shown that such assault was by reason of the fact that such officer or employee had at some time performed an official duty as an officer or employee of the department with respect to any person. Any violation of this subsection (a) committed by any person with a pistol or other deadly weapon is a Class C felony. Each act done in violation of this subsection (a) is a separate offense.
  2. (b) It is a Class E felony for any person to corruptly obstruct, delay, hinder, impede or intimidate, or to attempt to corruptly obstruct, delay, hinder, impede or intimidate, any officer or employee of the department from performing the officer's or employee's duty while acting in an official capacity under this part or any other laws of this state. It is also a Class E felony for any person in any other way to corruptly obstruct, delay, hinder or impede the administration of this part or any other revenue laws of this state. Each act done in violation of this subsection (b) is a separate offense.
  3. (c) It is a Class C misdemeanor for any person to rescue or cause to be rescued, either forcibly or by any unlawful manner, any property after it shall have been seized under this part or any other revenue laws of this state, or to attempt or endeavor so to do. Each act done in violation of this subsection (c) is a separate offense.
  4. (d) It is a Class E felony for any person to delay, hamper, hinder, impede, obstruct or thwart the state of Tennessee in the collection of any of its lawful revenue, or to deprive the state of the realization of such revenue at the time it is lawfully entitled thereto by any artifice, design, false weight or measure, stratagem, or by the falsification of any record, report or return required by law. Each act done in violation of this subsection (d) is a separate offense.
  5. (e) It is a Class E felony for any two (2) persons to conspire to delay, hamper, hinder, impede, obstruct or thwart the state of Tennessee in the collection of any of its lawful revenue, or to deprive the state of the realization of such revenue at the time it is lawfully entitled thereto by any artifice, design, false weight or measure, stratagem, or by the falsification of any record, report or return required by law. Each act done in violation of this subsection (e) is a separate offense.
  6. (f) It is a Class E felony for any person to falsely, corruptly, or knowingly misrepresent any material statement of fact while testifying under oath as a witness at any hearing held by the commissioner or the commissioner's delegate while acting in an official capacity under this part or any other laws of this state. Each act done in violation of this subsection (f) is a separate offense.
  7. (g) It is a Class E felony for any person willfully to attempt in any manner to evade or defeat any tax due the state of Tennessee; provided, that if use tax of less than five hundred dollars ($500) is involved, the offense is a Class A misdemeanor. Each act done in violation of this subsection (g) is a separate offense.
History (6)
  • Acts 1973, ch. 368, § 4
  • T.C.A., § 67-6045(a)-(f)
  • Acts 1984, ch. 734, § 2
  • 1989, ch. 591, §§ 90-94, 113
  • 1999, ch. 406, § 6
  • 2000, ch. 982, § 44.
§ 67-1-1441. Revenue officers — Weapons — Execution of search warrants.
  1. (a) Inspectors, agents, representatives or officers appointed by the commissioner shall be cloaked with and have the duty, power, and authority as sheriffs, police officers and other peace officers to enforce this part.
  2. (b) Any duly authorized officer or employee of the department who has been specifically designated by the commissioner to enforce this part is authorized and empowered to go armed or carry a pistol while on active duty engaged in enforcing this part. Any such person is also authorized and empowered to execute search warrants and to do all acts incident to search warrants, in the same manner as search warrants may be executed by sheriffs, police officers and other peace officers.
  3. (c)
    1. (1) Any duly authorized agent or officer of the department of revenue who retires after twenty-five (25) years of honorable armed service shall be issued a retired commission card by the department, which shall identify the agent or officer and the fact that the agent or officer is retired. Cards issued under this subdivision (c)(1) shall bear the inscription, in print of equal or larger size than the rest of the printing on the card, the words “Not a handgun permit.” After twenty-five (25) years of honorable armed service by an authorized agent or officer of the department, the department shall authorize such agent or officer, upon retirement, to retain the agent or officer's service weapon and badge, in recognition of the agent or officer's many years of good and faithful public service.
    2. (2) Any authorized agent or officer of the department, who is issued a retired commission card pursuant to this subsection (c) but who has not completed twenty-five (25) years of honorable armed service, may retain the agent or officer's service weapon and badge in recognition of the agent or officer's years of good and faithful public service; provided, that the agent or officer reimburses the department for the cost of the service weapon and badge.
    3. (3) This subsection (c) shall be retroactive to include officers from the department of safety that were transferred to the department of revenue effective July 1, 2006.
History (4)
  • Acts 1973, ch. 368, § 4
  • T.C.A., § 67-6045(g)
  • Acts 2005, ch. 499, § 8
  • 2013, ch. 434, § 1.
§ 67-1-1442. Continuation of business to satisfy delinquent tax liability.
  1. When a taxpayer is engaged in business as a sole proprietor, a partnership, or as a corporation, and that taxpayer is delinquent in paying a liability to the state for any tax or fee, then the commissioner or the commissioner's designee may permit the business taxpayer to continue in operation in order to pay to the state any tax or fee owed to the state. Such an arrangement shall be pursuant to rules and regulations promulgated by the commissioner. The commissioner or the commissioner's designee may permit such continued operation of a business, unless such designee finds there is a danger of the taxpayer doing any act to prejudice or render wholly or partly ineffectual the collection of the tax or fee due to the state.
History (1)
  • Acts 1986, ch. 907, § 1.
§ 67-1-1443. Failure to pay taxes collected from taxpayer's customers.
  1. (a) Any person required to collect, truthfully account for, and pay over any tax collected from customers of any taxpayer, who willfully fails to truthfully account for and pay over any such tax collected, or who willfully attempts in any manner to evade or defeat any such tax or the payment of those taxes, shall, in addition to other penalties provided by law, be liable for the total amount of the tax evaded, or not accounted for and paid over, along with penalties and interest.
  2. (b) As used in this section:
    1. (1) “Person” includes an officer or employee of a corporation, who, as such officer or employee, is under a duty to perform the act with respect to which the violation occurs; and
    2. (2) “Willfully” is limited to material and informed participation in the diversion of such collected funds to a source other than to the state.
  3. (c) The liability imposed by this section shall be collected as otherwise provided in this chapter.
Backlinks (4)
History (2)
  • Acts 1988, ch. 614, § 1
  • 1996, ch. 563, § 1.
§ 67-1-1444. Collection of tax debt from transferee — Liability of transferee.
  1. (a) When assets are conveyed or obligations are created by a person owing taxes to the state, on or after the date any such taxes are incurred, and such conveyance of assets or creation of obligations is in violation of title 66, chapter 3, then the commissioner may proceed to collect such tax debt from the transferee, pursuant to this part, in the same manner as the commissioner otherwise could have collected such debt from the transferor.
  2. (b) The liability of any such transferee shall be limited to the fair market value of the assets conveyed at the time of the transfer from the original taxpayer or the amount of any such obligation at the time the obligation is created.
History (1)
  • Acts 1988, ch. 829, § 1.
§ 67-1-1445. Collection of tax debt outside state.
  1. (a) The commissioner may contract with any debt collection agency or attorney to collect unpaid taxes, licenses, fees and/or interest and penalty, or any other amount otherwise collectible by the commissioner.
  2. (b) Any amounts collected pursuant to the contract shall be remitted to the state of Tennessee; provided, that the contract may provide for amounts to be received by the contractor as compensation for collection services. The amount of such compensation shall be added to the unpaid amount due from the taxpayer and shall be collectible in the same manner as taxes under this part.
  3. (c) The commissioner shall require a bond from any person contracting under this section in an amount not in excess of one hundred thousand dollars ($100,000) guaranteeing compliance with the terms of the contract and all applicable laws.
  4. (d) All persons seeking to contract under this section shall demonstrate, to the satisfaction of the commissioner, their good moral character and ability to perform effectively the terms of the contract. In addition to the specific requirements of this section, the commissioner may impose additional requirements tending to ensure the good moral character and effective performance of persons contracting under this section.
  5. (e) This section shall only apply after the department has completed all administrative notices and actions under this part and the taxpayer has exhausted or not exercised the taxpayer's rights under part 18 of this chapter.
History (2)
  • Acts 1991, ch. 79, § 1
  • 2003, ch. 118, §§ 1, 2.
Part 15 Statute of Limitations
§ 67-1-1501. Limitation on assessment and collection of taxes.
  1. (a) Locally Collected Privilege Taxes. All state, county or municipal privilege taxes, including, but not limited to, business, litigation, real estate transfer and mortgage taxes collected by the state or by local officials for the benefit of cities, counties or the state, shall be barred, and any lien for such taxes shall be cancelled and extinguished, unless the liens are collected or suits for the collection shall have been instituted within six (6) years from January 1 of the year for which such taxes accrued.
  2. (b) State Taxes Requiring the Filing of Returns — Assessment. Notwithstanding subsection (a), the amount of any tax imposed under any title, in which the filing of a return is required by the state, shall be assessed within three (3) years from December 31 of the year in which the return was filed, and no levy or other proceeding to enforce the collection of such tax without assessment shall be made or begun after expiration of such period; provided, that:
    1. (1) In the case of a failure to file a return, the tax may be assessed or a levy or other proceeding to enforce the collection of such tax may be begun, with or without assessment, at any time;
    2. (2) In the case of a false or fraudulent return with the intent to evade the tax, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be begun, with or without assessment, at any time;
    3. (3) In the case of a redetermination of net income by the internal revenue service resulting in a taxpayer owing the state additional franchise or excise tax, the statutory period for the assessment of additional franchise or excise tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revision;
    4. (4) In the case of a revision of any federal estate tax resulting from an examination by the internal revenue service that results in an estate owing the state additional estate or inheritance tax, the statutory period for the assessment of additional estate or inheritance tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revisions; and
    5. (5) In the case of an agreement in writing entered into by the commissioner or the commissioner's delegate and the taxpayer within the time prescribed in this subsection (b) for assessment, consenting to an assessment after such time, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be made or begun with or without assessment at any time within the agreed upon period. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon period.
      Backlinks (2)
  3. (c) State Taxes Requiring the Filing of Returns — Collection. The amount of any tax assessed as prescribed by subsection (b) may be collected within the period of limitation provided in § 67-1-1429.
  4. (d) Nonapplicable to ad valorem taxes. Nothing in this section shall apply to the collection of ad valorem taxes assessed against real or personal property by any county or municipality in this state.
  5. (e) For purposes of this section, the term “assessed” or “assessment” shall be deemed to include any notice of proposed assessment issued by the commissioner or any other authorized person under § 67-1-1438, and the time periods set forth in subsection (b) are met if the commissioner issues a notice of proposed assessment within the period of time prescribed for an assessment.
Backlinks (5)
History (16)
  • Acts 1885, ch. 24, § 1
  • Shan., § 821
  • mod. Code 1932, § 1494
  • Acts 1949, ch. 229, § 1
  • impl. am. Acts 1949, ch. 236, § 1
  • C. Supp. 1950, § 1494
  • Acts 1972, ch. 492, § 1
  • 1973, ch. 368, § 3
  • 1974, ch. 484, § 2
  • T.C.A. (orig. ed.), § 67-1323
  • Acts 1985, ch. 373, § 1
  • 1988, ch. 526, § 1
  • 1999, ch. 162, § 3
  • 1999, ch. 406, § 7
  • 2008, ch. 1106, § 33
  • 2014, ch. 854, § 8.
§ 67-1-1502. Dismissal of action after expiration of limitation.
  1. It is the duty of the court in which proceedings concerning the collection of taxes may be brought, where the collection of taxes shall be claimed to be barred under § 67-1-1501, when this statute is pleaded, and the truth of the plea appears to the satisfaction of the court, to dismiss the cause, and order that the officer having the respective tax books in charge, enter on the tax books, opposite the name of the taxpayer, a memorandum of the judgment of the court.
History (4)
  • Acts 1885, ch. 24, § 2
  • Shan., § 822
  • Code 1932, § 1495
  • T.C.A. (orig. ed.), § 67-1324.
Part 16 Officers Charged with Delinquent Taxes
§ 67-1-1601. Commissions disallowed on failure to settle or pay over.
  1. Commissions shall not be allowed any collecting officer for collecting and paying over any public money, unless the officer makes settlement and payment as required by law.
History (4)
  • Code 1858, § 668
  • Shan., § 961
  • Code 1932, § 1671
  • T.C.A. (orig. ed.), § 67-1424.
§ 67-1-1602. Action against collector for failure to settle or pay over.
  1. (a) For any neglect or refusal to settle the collector's accounts, the commissioner and county mayor shall proceed against the collector and the collector's sureties, by motion, which shall not be abated, quashed, or delayed by any want of form or informality in prosecuting the accounts.
  2. (b) Any officer concerned in the collection of revenue who has failed to collect, make returns or settlement, or pay over moneys of the state received by such officer, at the time and in the manner required by law, may be proceeded against summarily, on motion, in the circuit court, by the proper law officer of the state, pursuant to the instructions of the commissioner.
History (9)
  • Code 1858, §§ 670, 730 (deriv. Acts 1835-1836, ch. 12, § 20
  • 1839-1840, ch. 160, § 7)
  • Shan., §§ 963, 1043
  • Code 1932, §§ 1672, 1772
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, ch. 934, §§ 16, 36
  • T.C.A. (orig. ed.), §§ 67-1425, 67-1601
  • Acts 2003, ch. 90, § 2.
§ 67-1-1603. Entry of motion against delinquent.
  1. On receipt of the commissioner's statement, under the commissioner's official seal, of the sum claimed by the state against the delinquent, in cases in which a statement can be made out, or of the delinquent's official bond, accompanied by the commissioner's instructions, the district attorney general or county auditor shall move the court for judgment against the delinquent.
History (9)
  • Code 1858, § 731 (deriv. Acts 1835-1836, ch. 12, § 20
  • 1839-1840, ch. 160, § 7)
  • Acts 1907, ch. 602, § 77
  • integrated in Shan., § 1044
  • Acts 1923, ch. 109, § 8
  • mod. Code 1932, § 1773
  • impl. am. Acts 1937, ch. 33, § 50
  • modified
  • T.C.A. (orig. ed.), § 67-1602.
§ 67-1-1604. Time of trial.
  1. If the motion is made at a term requiring notice, and the notice is served five (5) days before the sitting of the court, the cause shall stand for trial at the first term.
History (4)
  • Code 1858, § 737
  • Shan., § 1050
  • Code 1932, § 1779
  • T.C.A. (orig. ed.), § 67-1603.
§ 67-1-1605. Precedence on docket.
  1. In all cases, motions or suits in favor of the state shall have precedence over other causes on the docket of any of the courts.
History (4)
  • Code 1858, § 738
  • Shan., § 1051
  • Code 1932, § 1780
  • T.C.A. (orig. ed.), § 67-1604.
§ 67-1-1606. Commissioner's statement as evidence — Copy of bond.
  1. The statement of the commissioner of the amount due the state from any delinquent shall be prima facie evidence of such amount and a copy of the delinquent's bond, from the commissioner's office, shall be received as evidence of the facts appearing on its face, unless, for sufficient reason, suggested on oath, the court require the production of the original.
History (7)
  • Code 1858, § 732 (deriv. Acts 1839-1840, ch. 160, § 7
  • 1843-1844, ch. 103, § 7)
  • Shan., § 1045
  • Code 1932, § 1774
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-1605.
§ 67-1-1607. Judgment against collector.
  1. The court shall render judgment against the delinquent and the delinquent's sureties for the amount appearing due from the statement of the commissioner, or for the penalty of the bond, where there is no statement.
History (6)
  • Code 1858, § 733
  • Shan., § 1046
  • Code 1932, § 1775
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-1606.
§ 67-1-1608. Amount of judgment in absence of commissioner's statement.
  1. If there be no statement of the commissioner, a judgment nisi shall be rendered for the penalty of the bond, and the defendant may have an issue made up to prove the amount due, and judgment final shall be given for such amount.
History (6)
  • Code 1858, § 734 (deriv. Acts 1843-1844, ch. 103, § 7)
  • Shan., § 1047
  • Code 1932, § 1776
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-1607.
§ 67-1-1609. Judgment against surviving principal and sureties.
  1. If the delinquent, or either of the delinquent's sureties, has died before the motion is made, the court shall give judgment against the sureties alone, in case of the death of the principal, or against the principal and surviving sureties on the bond, in case of the death of either of the sureties.
History (4)
  • Code 1858, § 735 (deriv. Acts 1839-1840, ch. 160, § 13)
  • Shan., § 1048
  • Code 1932, § 1777
  • T.C.A. (orig. ed.), § 67-1608.
§ 67-1-1610. Interest and damages.
  1. In taking judgment against a delinquent officer, interest at the rate of six percent (6%) on the amount that the delinquent officer has failed to pay over shall be added, and twelve and one-half percent (12.5%) damages on the delinquency.
History (5)
  • Code 1858, § 736 (deriv. Acts 1835-1836, ch. 15, §§ 14, 15
  • 1843-1844, ch. 103, § 5)
  • Shan., § 1049
  • Code 1932, § 1778
  • T.C.A. (orig. ed.), § 67-1609.
§ 67-1-1611. Credit for claims due collector.
  1. Where a judgment has been obtained against a delinquent officer, all bona fide claims due the delinquent officer, properly authenticated, shall be allowed by the commissioner upon settlement of the judgment.
History (6)
  • Code 1858, § 742 (deriv. Acts 1843-1844, ch. 168, § 1)
  • Shan., § 1052
  • Code 1932, § 1784
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-1610.
§ 67-1-1612. Receipt of revenues due state.
  1. No district attorney general, either before or after suit is brought or judgment rendered, shall receive any money due the state. The clerk of the circuit court alone shall, for the clerk's county, receive moneys due the state from delinquent revenue collectors.
History (5)
  • Code 1858, §§ 739, 740 (deriv. Acts 1843-1844, ch. 103, §§ 8, 9)
  • Shan., §§ 1051a1, 1051a2
  • Code 1932, §§ 1781, 1782
  • modified
  • T.C.A. (orig. ed.), § 67-1611.
§ 67-1-1613. Report and deposit of revenues by clerk of court.
  1. The clerk of the circuit court, immediately after receiving any money due to the state from delinquent collectors of revenue, shall report the amount, and from whom and when received, and immediately deposit the money in the state treasury.
History (4)
  • Code 1858, § 743 (deriv. Acts 1843-1844, ch. 103, § 9)
  • Shan., § 1052a1
  • Code 1932, § 1785
  • T.C.A. (orig. ed.), § 67-1612.
§ 67-1-1614. Clerk's commission.
  1. The clerk's commission upon all moneys received by the clerk from delinquent collectors, and reported to the commissioner and paid into the state treasury, shall be six percent (6%).
History (6)
  • Code 1858, § 741
  • Shan., § 1051a3
  • Code 1932, § 1783
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-1613.
§ 67-1-1615. Penalties for violations paid into school fund.
  1. Any and all officers entrusted with the collection and disbursement of public funds or revenues violating this part, parts 7, 10 or 15 of this chapter, chapter 5, parts 4, 18, 19 or 20 of this title, or § 67-1-107, § 67-5-301, § 67-5-302, § 67-5-306, § 67-5-507 or § 67-5-513, upon whom no penalty has been imposed for so doing, commits a Class C misdemeanor, the fine portion of which shall be placed in the state treasury for the benefit of the public school fund.
Backlinks (1)
History (5)
  • Acts 1907, ch. 602, § 71
  • Shan., § 928
  • Code 1932, § 1634
  • T.C.A. (orig. ed.), § 67-1614
  • Acts 1989, ch. 591, § 113.
§ 67-1-1616. Monthly penalty for failure to pay over taxes — Forfeiture of office.
  1. Where such trustee or other officer, whose duty it is to collect any taxes under this part, part 7, 10 or 15 of this chapter, chapter 5, parts 4, 18, 19 or 20 of this title, or § 67-1-107, § 67-5-301, § 67-5-302, § 67-5-306, § 67-5-507 or § 67-5-513, fails to account for any and all taxes that the trustee or officer has collected to the proper officer, in addition to the penalty in § 67-1-1615, the trustee or officer shall be liable to a penalty of two percent (2%) per month on the taxes from the time the taxes should have been paid, which is in addition to the attorney's fees provided for in § 67-1-1619, none of which shall in any way be remitted after the matter is placed in the hands of the attorney; and the trustee or officer shall, in addition, forfeit the trustee's or officer's respective office.
History (6)
  • Acts 1907, ch. 602, § 71
  • Shan., § 928a1
  • mod. Code 1932, § 1635
  • Acts 1933, ch. 95, § 1
  • C. Supp. 1950, § 1635
  • T.C.A. (orig. ed.), § 67-1615.
§ 67-1-1617. Action on collector's bond.
  1. (a) A motion or suit lies in favor of the state, county, or municipality against the trustee and sureties on the trustee's official bonds for any moneys, in the trustee's hands officially, not paid over or accounted for according to law or for failure to collect.
  2. (b) No surety on the bond of any trustee or other officer shall be liable for any penalty or attorney's fees until after demand has been made on the surety or sureties, and the surety or sureties have failed or refused to perform the duties required by law of the surety's or sureties' principal, or have failed or refused to pay over the sums of money due from such trustee or other officer.
  3. (c) Where a judgment has been obtained against any collector of revenue or other such officer, either alone or with a part of such collector's or officer's sureties, a similar motion may be made against the sureties against whom no judgment has been obtained, whether the suretyship appears in the same or another bond.
  4. (d) The person moved against shall have five (5) days' notice of the motion; provided, that this applies only to cumulative bonds, or where two (2) or more bonds have been given to secure the same object, and only to bonds already executed.
History (7)
  • Acts 1875, ch. 86, §§ 1, 2
  • 1907, ch. 602, § 71
  • Shan., §§ 928a1, 928a2, 965, 966
  • mod. Code 1932, §§ 1635, 1636, 1674, 1675
  • Acts 1933, ch. 95, § 1
  • C. Supp. 1950, § 1635
  • T.C.A. (orig. ed.), §§ 67-1615, 67-1616, 67-1622, 67-1623.
§ 67-1-1618. Officials by whom suit brought.
  1. (a) The motion or suit in favor of the state may be in the name of the state, and shall be brought by the county auditors or by the district attorney general of the district where it is instituted upon the request of the county auditors made upon direction of the commissioner and state treasurer.
  2. (b) The motion or suit by the county may be brought in the name of the state, for the use of the county, by the district attorney general or by counsel employed for that purpose.
  3. (c) A motion or suit in favor of the municipality may be in the name of the state for the use of such municipality by the mayor of the city or the city attorney.
History (7)
  • Acts 1907, ch. 602, § 71
  • Shan., §§ 928a3-928a5
  • Code 1932, §§ 1637-1639
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • modified
  • T.C.A. (orig. ed.), § 67-1617.
§ 67-1-1619. Attorney's fee.
  1. In each case, the counsel making the motion and conducting the suit shall be allowed ten percent (10%) on the recovery as compensation as fixed by § 67-1-1620, to be added to and become a part of the judgment; provided, that no such attorney's fee shall be chargeable to any surety on the bond of any such trustee or other officer whose duty it is to collect taxes under this title, until after demand has been made on such surety or sureties, and the surety or sureties have failed or refused to perform the duties required by law of the surety's or sureties' principal, or have failed or refused to pay over the sums of money due from such trustee or other officer.
Backlinks (1)
History (6)
  • Acts 1907, ch. 602, § 71
  • Shan., § 928a6
  • mod. Code 1932, § 1640
  • Acts 1933, ch. 95, § 1
  • C. Supp. 1950, § 1640
  • T.C.A. (orig. ed.), § 67-1618.
§ 67-1-1620. Collection and accounting for attorney's and auditor's fees.
  1. (a) The fees allowed to the counsel for the state shall be collected by the county auditor and reported and accounted for as provided in subsections (b) and (c).
  2. (b) The fees allowed to the counsel or county auditor for the county shall be collected by the counsel or county auditor and reported to the county mayor.
  3. (c) The fees allowed to the city attorney shall be collected by the city attorney and reported to the mayor of the city or other chief official.
Backlinks (1)
History (6)
  • Acts 1907, ch. 602, § 71
  • Shan., §§ 928a7-928a9
  • Code 1932, §§ 1641-1643
  • impl. am. Acts 1978, ch. 934, §§ 16, 36
  • T.C.A. (orig. ed.), § 67-1619
  • Acts 2003, ch. 90, § 2.
§ 67-1-1621. Taxpayer's action against collector.
  1. (a) In case the county mayor refuses to make the motion or bring the suit, after the written request of any taxpayer to do so, then any taxpayer of the county may make such motion or bring suit in the name of the state, for the use of the county, and employ counsel to conduct the cause; provided, however, that before making such motion or bringing suit, the taxpayer shall obtain leave of the judge of the court in which the motion is to be made or the suit brought to do so. The taxpayer shall make such application in writing, stating fully the grounds for the application, of which application the county mayor shall have five (5) days' written notice, stating the time and place of application.
  2. (b) The judge shall hear the application at chambers or in term time, and may adjudge the costs of the application against the applicant, against the county mayor, or against the county as the judge shall deem just, and the judge shall enter judgment upon the record of the judge's court accordingly.
History (6)
  • Acts 1907, ch. 602, § 71
  • Shan., § 928a10
  • Code 1932, § 1644
  • impl. am. Acts 1978, ch. 934, §§ 36
  • T.C.A. (orig. ed.), § 67-1620
  • Acts 2003, ch. 90, § 2.
§ 67-1-1622. Release of collector's liability prohibited.
  1. No power shall exist, either in the court or in any other official, to release any officer charged with the collection of revenue or the officer's sureties from the payment of any revenue, penalties or fees for which the officer or the officer's sureties may be liable.
History (4)
  • Acts 1907, ch. 602, § 71
  • Shan., § 928a11
  • Code 1932, § 1645
  • T.C.A. (orig. ed.), § 67-1621.
§ 67-1-1623. Actions against state officers.
  1. (a) The district attorney general or state agent may move the circuit court for judgment against the state treasurer, or other state officer, for any neglect, default, misprision, misfeasance, or malfeasance in office, for which such officer and the officer's sureties, or either of them, might be sued upon any bond or other obligation executed for the due and lawful discharge of the duties of the officer's office.
  2. (b) The motion shall be in writing, shall be signed by the district attorney general or state agent and shall be in the name of the state.
  3. (c) A copy of the motion left at the dwelling house of the defendant, or the defendant's last usual place of residence, or place of abode or place of doing business, five (5) days previous to the motion, shall be sufficient service of notice of the motion.
  4. (d) The court shall hear and determine the case without any declaration, or the formality of regular pleadings, according to the right of the case, and give judgment against the officer and the officer's sureties, and award execution as effectually as may be done by regular suit at law.
History (7)
  • Code 1858, §§ 744-747
  • integrated in Acts 1907, ch. 602, § 77
  • Shan., §§ 1053-1056
  • Acts 1923, ch. 109, § 8
  • mod. Code 1932, §§ 1786-1789
  • modified
  • T.C.A. (orig. ed.), §§ 67-1624 — 67-1627.
§ 67-1-1624. Willful failure of county clerk to perform duties — Assumption of duties by commissioner.
  1. (a) Whenever the commissioner has reason to believe that any county clerk or the county clerk's agent or employee has failed, neglected or refused to perform any duty enjoined upon the county clerk by law relative to the collection, accounting for or paying over of any state revenue with the collection of which the county clerk is charged by law, the commissioner shall so notify the comptroller of the treasury and request in writing that an audit be made of such clerk's accounts, whereupon the comptroller of the treasury shall cause such audit to proceed within thirty (30) days.
  2. (b) When any audit made by the comptroller of the treasury, whether under this section or otherwise, shall reveal willful failure upon the part of a county clerk to collect lawful state revenue, or to account for or pay over such revenue within the time allowed by law, the comptroller of the treasury shall certify such fact to the commissioner. Thereupon, the commissioner may issue to such clerk a citation by registered mail to appear within ten (10) days before the commissioner and show cause why the county clerk should not be relieved of the duties of collecting, reporting and paying over of such revenue, and all emoluments flowing from those duties.
  3. (c) The commissioner is empowered to compel the appearance of witnesses and their testimony, and all parties to such proceeding shall have the right to have issued subpoenas for that purpose. All testimony and exhibits shall be preserved. Witnesses shall be allowed the same fees for attendance and travel as are allowed for witnesses before the circuit court. The commissioner shall provide a transcript of the proceedings before the commissioner in such cases.
  4. (d)
    1. (1) In the event that it is determined by the commissioner that a county clerk has willfully failed to collect, account for or pay over any such revenue, the commissioner may issue an order divesting such clerk of any or all duties respecting the handling of such revenue during such time as the office of county clerk may be held by such person, together with all emoluments appertaining to the office of county clerk. A copy of such order shall be posted in a conspicuous place in the courthouse of the county served by such clerk, and published for four (4) consecutive weeks in a newspaper of general circulation in such county.
    2. (2) Such order of the commissioner shall be reviewable de novo within ten (10) days upon a petition for statutory certiorari addressed to the chancery court of the county where such county clerk resides, and shall not be superseded pending judicial review.
    3. (3) Upon delivery of such order, the clerk shall immediately deliver to the commissioner or the commissioner's agent all state property, moneys, records, reports, forms and the like in the clerk's possession. Failure to do so is a Class C misdemeanor. Each day of such refusal is a separate offense.
  5. (e) Following such order, the commissioner shall proceed through the commissioner's own agents and employees to collect state revenues formerly collected by the county clerk, to issue licenses, registrations and the like, and to be solely accountable therefor, as in the case of revenues collectible solely by the commissioner. All statutory fees and emoluments ordinarily inuring to the clerk shall be retained by the commissioner as expendable receipts and used to defray the expenses of collecting state revenues ordinarily collectible by county clerks, and providing public services incidental thereto.
History (4)
  • Acts 1963, ch. 95, § 1
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A., §§ 67-1628 — 67-1632
  • Acts 1989, ch. 591, § 113.
§ 67-1-1625. Willful failure of collector to pay over — Felony.
  1. (a)
    1. (1) Any tax collector who willfully fails or refuses to pay into the state treasury the revenue that the tax collector has collected commits a Class E felony.
    2. (2) It is the duty of the district attorney general of the district in which such defaulting revenue collector may reside to prosecute such collector for such offense.
    3. (3) Such tax collector shall be imprisoned in the state penitentiary for a period of not less than five (5) nor more than twenty (20) years.
  2. (b) “Tax collector,” as used in this section, includes and embraces all persons entrusted with the collection of the public revenue.
History (6)
  • Acts 1867-1868, ch. 79, § 14
  • Shan., § 964
  • Code 1932, § 1673
  • modified
  • T.C.A. (orig. ed.), § 67-1426
  • Acts 1989, ch. 591, §§ 1, 6.
§ 67-1-1626. Refund to collector on proof of deficiencies in collections.
  1. When the collector has duly accounted with the commissioner or county mayor for the full amount of the year's revenue, and paid it into the treasury, without obtaining a credit for insolvencies or deficiencies of payment, and the collector afterwards, in the manner and within the time prescribed by law, procures the proper evidence to authorize the commissioner or county mayor to credit the collector with the evidence, such officers shall respectively issue to the collector a warrant for the amount of such insolvencies or deficiencies of payment.
History (8)
  • Code 1858, § 656
  • Shan., § 934
  • Code 1932, § 1649
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, ch. 934, §§ 16, 36
  • T.C.A. (orig. ed.), § 67-1427
  • Acts 2003, ch. 90, § 2.
§ 67-1-1627. Collector's action for reimbursement of tax paid by collector.
  1. Any tax collector who has failed to collect any tax, but who has paid the tax to the state, county, or municipality to which the tax was due and payable, shall, in addition to the remedies provided by law, have a right to sue a defaulting taxpayer for the amount of the tax, as upon an account for money paid to the collector's use, and recover judgment for the tax, together with six percent (6%) interest per annum on the judgment for the time the tax should have been paid; provided, that the suit is brought within one (1) year after the collector has paid the tax.
History (4)
  • Acts 1875, ch. 88, § 1
  • Shan., § 958
  • Code 1932, § 1668
  • T.C.A. (orig. ed.), § 67-1501.
§ 67-1-1628. Powers of collector after expiration of term.
  1. Revenue collectors whose terms of office have expired, and whose successors have been elected, and who have not collected the taxes due for the time during which they held such office, shall, whenever they have paid into the treasury the amount charged against them on account of state and county revenue, have the same privileges, and be subject to the same laws, in the collection of the uncollected taxes, that are applicable to other revenue collectors.
History (4)
  • Acts 1873, ch. 6, § 1
  • Shan., § 953
  • Code 1932, § 1662
  • T.C.A. (orig. ed.), § 67-1502.
§ 67-1-1629. Rights of collector's sureties.
  1. (a) If a collector leaves the state without accounting for the county and state taxes, whereby the collector's sureties become liable for the taxes, or dies shortly before or during the time appointed for the collection of public taxes, so that a successor cannot be appointed in time to collect the taxes, it is lawful for the sureties of such collector to go before the county legislative body of the county for which their principal was elected, and prove to the court the existence of such absence or death of their principal. It shall then be the duty of the county legislative body to make a record of such proof, and upon it to make an order authorizing the sureties of such dead or absent collector to collect all arrearages of taxes not collected by their principal, and that it was the principal's duty to collect. Such order, when made, shall be made ample authority for such sureties to collect all such arrearages of taxes; and for this purpose the order shall vest them with all rights and powers to distrain and sell the property, whether real or personal, of those in arrears for taxes, the same as their principal could have done, if the principal had not been absent or died; and they shall have all the powers, authorities, privileges, and emoluments in and for the receipt and collection of the public taxes that the absent or deceased collector possessed and enjoyed.
  2. (b) In case of such death or absence, as is contemplated in subsection (a), it shall and may be competent for the sureties of such dead or absent principal, or, in case of the death of any of the sureties, then their representatives, to go before the county legislative body and agree for any one (1) of such sureties to be appointed to collect such arrearages of taxes, and upon such agreement, it shall be competent for the county legislative body to appoint such surety so agreed upon to collect such arrearages of taxes, and a record shall be made of such agreement and choice, which appointment shall be as ample power to that surety as if all were authorized to collect them; but nothing in subsection (a) or this subsection (b) shall have the effect to release any of such sureties or their representatives from liability as such.
  3. (c) If any person liable to pay such taxes fails to pay them to such designated surety, they may make distress and sale for such arrears in the same manner as the collector could have done. But no such distress or sale shall be made until public notice be first given in the manner prescribed in former §§ 67-5-1801 and 67-5-2005.
  4. (d) The sureties of such defaulting collectors, or the authorized agents of such sureties, in all cases where they have paid the amount charged against such defaulting collectors, may sue for the collection of such delinquent taxes in the name of the state for their use, and in all cases where they have not paid, but have become liable for, such uncollected revenue, they may sue in their names, or the names of their duly authorized agents, for the use of the state, county, or municipality, to enforce the collection of such uncollected revenue or any revenues due the state, county, or municipality for which they, in any way, may have become liable.
  5. (e) When a collector is deprived of the power of office, and suspended from acting as collector, on account of the collector's failure or refusal to give sureties in place of sureties discharged, the sureties may receive and collect all taxes not already paid to their principal that the principal was bound to collect; and, for such purpose, they shall have all the powers, authorities, privileges and emoluments that belong officially to the collector so suspended.
  6. (f) Sureties, or the duly authorized agents of sureties of revenue collectors whose terms of office have expired, and whose successors in office have been elected, or, where two (2) years or more have elapsed after the expiration of the terms of office of such collectors, leaving uncollected taxes due the state, county, or municipality for the time during which such trustees held such office, whenever the trustees have paid into the treasury the amount charged against such collectors, on account of the state, county, or municipal revenue, or have become liable for the amount because of the collector's default, shall have the same privileges and rights in enforcing the collection of such uncollected revenue that are applicable by law to revenue collectors.
History (8)
  • Code 1858, §§ 663-667 (deriv. Acts 1770, ch. 6, § 2
  • 1815, ch. 14, § 2)
  • Acts 1859-1860, ch. 17, §§ 1, 2
  • 1875, ch. 135, §§ 1, 2
  • Shan., §§ 954-957, 957a1, 959, 960
  • Code 1932, §§ 1663-1667, 1669, 1670
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • T.C.A. (orig. ed.), §§ 67-1503 — 67-1508.
Part 17 Disclosure of Tax Returns and Tax Information
§ 67-1-1701. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commissioner” means the commissioner of revenue;
    2. (2) “Department” means the department of revenue;
    3. (3) “Officer or employee” includes former officers and employees;
    4. (4) “Person” means every individual, firm, association, joint-stock company, syndicate, partnership, corporation, or state or federal agency;
    5. (5) “Return” means any tax or information return, declaration of estimated tax, claim for refund, or petition for waiver of penalty required by, or provided for, or permitted under, any law, that is filed with or submitted to the commissioner by, on behalf of, or with respect to, any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, or part of, any return so filed or submitted;
    6. (6) “Tax administration” means the administration, management, conduct, direction, and supervision of the execution and application of the state tax laws, rules, or related statutes or rules and reciprocity agreements with the several states or federal government to which the state of Tennessee is a party. “Tax administration” also means the development and formulation of state tax policy relating to existing or proposed tax laws, related statutes and reciprocity agreements and includes assessments, collection, enforcement, litigation, publication, and statistical gathering functions under such laws, statutes, rules or reciprocity agreements;
    7. (7) “Tax administration information” means criteria or standards used or to be used for the selection of returns or persons for audit or examination, or data used or to be used for determining such criteria or standards; audit procedures; and any other information relating to tax administration;
    8. (8) “Tax information” means a taxpayer's identity, the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax collected, deficiencies, overassessments, or tax payments, whether the taxpayer's return was, is being, or will be, examined or subject to other investigation or processing, or any other data, received by, recorded by, prepared by, furnished to, or collected by, the commissioner with respect to a return or with respect to the determination of the existence, or possible existence, of liability, or the amount of the liability, of any person for any tax, penalty, interest, fine, forfeiture, or other penalty, imposition or offense, administered by or collected by the commissioner, either directly or indirectly. “Tax information” does not include data in a form that cannot, either directly or indirectly, be associated with, or otherwise be used to identify, directly or indirectly, a particular taxpayer;
    9. (9) “Taxpayer identity” means the name of a person subject to a tax collected or administered by the commissioner, the person's mailing address, the person's taxpayer identifying number or account number, or a combination thereof; and
    10. (10) “Unit of local government” means any county enumerated in § 5-1-101, any incorporated municipality, or any consolidated unit of any such counties and municipalities.
Backlinks (5)
History (3)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-131
  • Acts 2000, ch. 982, § 39.
§ 67-1-1702. Confidentiality.
  1. (a) Notwithstanding any law to the contrary, returns, tax information and tax administration information shall be confidential and, except as authorized by this part, no officer or employee of the department or of any office of a district attorney general or any state or local law enforcement agency, and no other person, or officer or employee of the state, who has or had access to such information shall disclose any such information obtained by such officer or employee in any manner in connection with such officer's or employee's service as an officer or employee, or obtained pursuant to this part, or obtained otherwise.
    Backlinks (1)
  2. (b) Notwithstanding any other law to the contrary, the confidentiality and disclosure of any record or document pertaining to a motor vehicle registration or motor vehicle title for which the department has responsibility under title 55, chapters 1-6, title 65, chapter 15, or any other applicable statute shall be controlled by title 55, chapter 25.
  3. (c) This part does not apply to any record, document, or other information pertaining to a tax on the privilege of occupancy in a hotel imposed by a city, town, or county pursuant to an ordinance, resolution, or private act.
Backlinks (3)
History (6)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-132
  • Acts 2000, ch. 982, § 40
  • 2007, ch. 484, § 110
  • 2013, ch. 400, § 1
  • 2016, ch. 796, § 5.
§ 67-1-1703. Disclosure to taxpayer or fiduciary.
  1. (a) The commissioner shall, subject to such requirements and conditions as may be prescribed by rules, disclose the return of any taxpayer, or tax information with respect to such taxpayer, to such person or persons as the taxpayer may designate in a written request for or consent to such disclosure, or to any other person at the taxpayer's request to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. Tax information shall not, however, be disclosed to such person or persons if the commissioner determines that such disclosure would be seriously burdensome to tax administration.
  2. (b)
    1. (1) The return of a person shall, upon written request, be open to inspection by or disclosure to:
      1. (A) In the case of the return of an individual, that individual;
      2. (B) In the case of the return of a partnership, any person who was a member of such partnership during any part of the period covered by the return;
      3. (C) In the case of the return of a corporation or a subsidiary of a corporation:
        1. (i) Any person designated by resolution of its board of directors or other similar governing body;
        2. (ii) Any officer or employee of such corporation upon written request signed by any principal officer and attested to by the secretary or other appropriate officer; or
        3. (iii) If the corporation has been dissolved, any person authorized by applicable state law to act for the corporation or any person who the commissioner finds to have a material interest that will be affected by information contained in the return;
      4. (D) In the case of the return of an estate, the administrator, executor, or trustee of such estate; and
      5. (E) In the case of the return of a trust, the trustee or trustees, jointly or separately.
    2. (2) If an individual described in subdivision (b)(1) is legally incompetent, the applicable return shall, upon written request, be open to inspection by or disclosure to the guardian of the individual's estate.
    3. (3) The return of a decedent shall, upon written request, be open to inspection by or disclosure to an administrator, executor, trustee or beneficiary of the decedent's estate. However, in order to obtain the return, a beneficiary must submit a sworn affidavit stating that: the affiant was a beneficiary of the estate who received a distribution of assets from the estate in kind; the affiant needs the return to accurately determine the federal income tax basis of such assets; and the affiant has requested the return from the personal representative who could not or would not provide it.
    4. (4) If substantially all of the property of the person with respect to whom the return is filed is in the hands of a trustee in bankruptcy or receiver, such person's return or returns for prior years, upon written request, shall be open to inspection by or disclosure to such trustee or receiver, but only if the commissioner finds that such trustee or receiver, in the trustee's or receiver's fiduciary capacity, has a material interest that will be affected by information contained in the return.
    5. (5) Any return to which this subsection (b) applies shall, upon written request, also be open to inspection by or disclosure to the attorney in fact or at law duly authorized in writing by any of the persons described in subdivisions (b)(1)-(4), who are themselves entitled to the return, to inspect the return or receive the information on their behalf, subject to the conditions provided in subdivisions (b)(1)-(4).
    6. (6) Tax information with respect to any taxpayer that may otherwise be open to inspection by or disclosure to any person authorized by this subsection (b) to inspect any return of such taxpayer shall not be disclosed if the commissioner determines that such disclosure would seriously impair tax administration.
History (3)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-133
  • Acts 1997, ch. 269, § 1.
§ 67-1-1704. Disclosure for administrative purposes — Tax collection.
  1. (a) Returns and tax information shall, without written request, be open to inspection by or disclosure to officers and employees of the department whose official duties require such inspection or disclosure for tax administration purposes.
  2. (b)
    1. (1) A return or tax information may be disclosed in a federal or state judicial or administrative proceeding pertaining to tax administration, but only if:
      1. (A) The taxpayer is a party to such proceeding;
      2. (B) The treatment of an item reflected on such return is directly related to the resolution of an issue in the proceedings; or
      3. (C) Such return or tax information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.
    2. (2) Such return or tax information shall not be disclosed as provided in subsections (a) and (b) and in §§ 67-1-1705(a) and 67-1-1707(a), however, if the commissioner determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
  3. (c) Returns and tax information may be disclosed to any person to the extent necessary in connection with the processing, storage, transmission, and reproduction of returns and tax information, and the programming, maintenance, repair, testing and procurement of equipment and software, for purposes of tax administration.
  4. (d) Upon request in writing, returns and tax information may be disclosed to duly authorized officials of a unit of local government of this state for the purpose of ascertaining whether proper local taxes or the tax imposed by § 67-4-704 is being paid. Upon written request, tax information may also be disclosed to duly authorized officials of a unit of local government of this state to the extent necessary to ascertain whether allocations from state levied taxes are being distributed to the correct unit of local government; provided, that such information shall not include the taxpayer's returns, receipts, income, tax liability, tax payments, or other financial information. For purposes of ascertaining whether proper local severance taxes are being paid pursuant to chapter 7, part 2 of this title, “authorized officials of a unit of local government” means the county mayor or a member of the county governing body. No unit of local government nor any official or employee of a unit of local government who receives returns or tax information under this subsection (d) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law. Any official or employee of a unit of local government who has or has had, at any time, access to any return or tax information under this subsection (d) shall be subject to all of the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709.
  5. (e) A unit of local government receiving tax information under subsection (d) may disclose to a contractor or consultant the name, address, and situs of one (1) or more taxpayers for the purpose of ascertaining whether allocations of state and local taxes are being distributed to the correct unit of local government. Such information shall not include the taxpayer's returns, receipts, income, tax liability, tax payments, or other financial information. No consultant or contractor of a unit of local government who receives tax information under this subsection (e) shall disclose such information to any other person. Any consultant or contractor of a unit of local government who has or has had, at any time, access to any tax information under this subsection (e) shall be subject to all the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709.
  6. (f) Returns and tax information may be disclosed for the purposes of tax administration to either house of the general assembly, or to any committee or subcommittee of the general assembly, but only upon a lawfully executed subpoena being served on the commissioner who demands such returns or information.
  7. (g) Returns and tax information shall be open to inspection by, and/or disclosure to, any person contracting for the collection of unpaid taxes under part 14 of this chapter. This disclosure is authorized only to the extent necessary for the collection of unpaid taxes by that person. Any person receiving returns and/or tax information under this section shall be subject to the confidentiality provisions, including penalties, provided by this part.
  8. (h) Returns, tax information and tax administration information may, in the commissioner's discretion, be disclosed for the exclusive purpose of participating in the multistate tax commission joint audit program. Any person receiving returns, tax information or tax administration information under this subsection (h) shall be subject to the confidentiality provisions, including penalties, set out in this part; and the commissioner is authorized to take such actions as deemed necessary to ensure that any such persons receiving returns, tax information or tax administration information shall maintain the confidentiality provisions set out in this part.
  9. (i) Tax information may, in such form and manner as prescribed by the commissioner, be disclosed to the extent reasonably necessary to facilitate accurate reporting by entities required to file duplicate information returns pursuant to §  67-6-411. Such tax information shall not be used by the recipient for any purpose other than producing and filing duplicate information returns pursuant to §  67-6-411. Any person who receives such tax information under this subsection (i) is prohibited from disclosing such information and shall be subject to the confidentiality provisions, including penalties, set out in this part. The commissioner is authorized to take such actions as deemed necessary to ensure that any persons receiving such tax information shall maintain the confidentiality provisions set out in this part.
History (10)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-134
  • Acts 1991, ch. 79, § 2
  • 2006, ch. 553, § 1
  • 2009, ch. 530, § 96
  • 2014, ch. 764, § 3
  • 2015, ch. 273, § 1
  • 2015, ch. 342, § 5
  • 2016, ch. 705, § 1
  • 2018, ch. 1011, § 3.
§ 67-1-1705. Disclosure for tax enforcement.
  1. (a) A return or tax information shall be open to inspection by or disclosure to the attorney general and reporter, and to any of the several district attorneys general, when officially engaged in, and solely for their use in, preparation for any proceeding, or investigation that may result in such a proceeding, before a grand jury or any court of law or equity in a civil or criminal matter involving tax administration, collection or prosecution for violation of the state tax laws, but only if:
    1. (1) The taxpayer is or may be a party to such proceeding;
    2. (2) The treatment of an item reflected on such return is or may be related to the resolution of an issue in the proceeding or investigation; or
    3. (3) Such return or tax information relates or may relate to a transactional relationship between a person who is or may be a party to the proceeding and the taxpayer that affects, or may affect, the resolution of an issue in such proceeding or investigation.
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  2. (b) An officer or employee of the department may, in connection with the officer's or employee's official duties relating to an audit, collection activity, or civil or criminal tax investigation or the investigation of any offense or matter under the tax laws of this state, disclose tax information to the extent that such disclosure is necessary in obtaining information, that is not otherwise reasonably available, with respect to the correct determination of tax, liability for tax, or the amount to be collected. Such officer or employee may also disclose tax information when disclosure is required to assure compliance with the tax laws of this state through:
    1. (1) The release of specific tax information; or
    2. (2) Publishing of a bulletin or list identifying persons recognized by the department as qualified sellers, limited users, dealers, and distributors qualified to receive taxable substances, indicating the extent to which they are bonded, or listing similar categories of persons and kinds of data.
  3. (c) Investigative records of the special investigations unit of the department relating to potential criminal prosecutions of persons for violation of the tax laws of this state are confidential and may not be disclosed to any person, notwithstanding any provision of this part to the contrary, except in the exercise of the discretion of the commissioner so as not to seriously impair tax administration.
History (2)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-135.
§ 67-1-1706. Disclosure to parties in interest.
  1. (a) If a notice of lien has been filed pursuant to law, the amount of the outstanding obligation secured by such lien may be disclosed to any person or that person's agent who has a right in the property subject to such lien or intends to obtain a right in such property.
  2. (b) If any taxpayer is required to submit a bond to secure the payment of any taxes that may be due to the department, the amount of the outstanding obligation of the taxpayer may be disclosed to any person who stands as surety on the bond for such taxpayer.
History (2)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-136.
§ 67-1-1707. Disclosure for miscellaneous purposes.
  1. (a)
    1. (1) Returns and tax information shall, without written request, be open to inspection by or disclosure to the comptroller of the treasury or the comptroller's designated representative for purposes of audit.
    2. (2) Such disclosure shall only be applicable to state tax returns and state tax information.
    3. (3) Disclosure of federal tax returns and federal tax information may be made if permitted by federal law or any prohibition of disclosure is waived by the appropriate federal agency.
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  2. (b) A return or tax information may be disclosed to a competent authority of another state or the federal government that agrees to disclose returns or tax information to this state.
  3. (c) Upon request in writing, the commissioner may, in the commissioner's discretion, furnish tax information to officers and employees of an agency of this state or of the federal government engaged in tax or economic analysis, if such tax information is relevant to the functions and duties of the requesting agency; but no agency, or officer or employee of the agency, who receives tax information under this subsection (c) shall disclose such information to any person other than the person to whom it relates, except in a form that cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer.
  4. (d) Returns and tax information may be disclosed to any person to whom the department is authorized to provide such returns and information by any other law.
  5. (e) Nothing in this part shall restrict the disclosure of tax returns or tax information by a private firm engaged in the business of tax return preparation; provided, that such disclosure is in connection with the purchase or sale of a firm engaged in the business of tax return preparation or in connection with the review of such a firm by an affiliated firm or in connection with the offering of services to individual taxpayers.
  6. (f) This part does not restrict the public disclosure of the name and address of an owner of a business tax license under chapter 4, part 7 of this title, or any information on the license or license application pertaining to whether the owner is a veteran or a member of a minority group based on race, ethnicity, religion, sex, or national origin.
  7. (g) Upon request in writing, the commissioner may, in the commissioner's discretion, furnish tax information to officers or employees of an agency of this state, if such tax information is relevant to the functions and duties of the requesting agency. No agency or employee of the agency who receives tax information under this subsection (g) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law.
  8. (h) The commissioner may provide tax information to an official of any state agency or other state entity, for the purpose of ensuring compliance with title 12, chapter 4, part 1, requiring that persons contracting with the state or other state entities register themselves and their affiliates to collect and remit taxes. No agency or employee of the agency who receives tax information under this subsection (h) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law.
  9. (i) A return or tax information may be disclosed in response to a subpoena that is duly authorized and properly served under the Federal Rules of Criminal Procedure or the Tennessee Rules of Criminal Procedure.
  10. (j) The commissioner shall, without written request, provide tax information to officers or employees of a claimant as defined in § 67-1-1808, if such tax information is necessary to accomplish and effectuate the purposes of § 67-1-1808. No officer or employee who receives tax information under this subsection (j) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law.
  11. (k) The commissioner may, in the commissioner's discretion, disclose tax information to a unit of local government of this state for purposes of effectuating distributions of tax revenues under the Border Region Retail Tourism Development District Act, compiled in title 7, chapter 40. No unit of local government that receives tax information under this subsection (k) shall disclose the information to any person. However, nothing in this part shall prohibit the unit of local government from making payment or reimbursement to a private party out of distributions received under the Border Region Retail Tourism Development District Act, even if the funds are derived from sales and use taxes collected from a single parcel of property, and such payment or reimbursement shall not be a violation of this part.
History (9)
  • Acts 1977, ch. 152, §§ 1, 2
  • 1980, ch. 769, § 1
  • T.C.A., § 67-137
  • Acts 1988, ch. 882, § 3
  • 2000, ch. 982, § 43
  • 2002, ch. 614, § 1
  • 2010, ch. 1113, § 4
  • 2015, ch. 405, § 4
  • 2021, ch. 327, § 1.
§ 67-1-1708. Manner of disclosure — Legal effect.
  1. (a) Requests for the inspection or disclosure of a return or tax information and such inspection or disclosure shall be made in such manner and at such time and place as shall be prescribed by the commissioner.
  2. (b) A reproduction or certified reproduction of a return shall, upon written request, be furnished to any person to whom disclosure or inspection of such return is authorized by law. A reasonable fee may be prescribed by the commissioner for furnishing such reproduction or certified reproduction.
  3. (c) Tax information disclosed to any person under the provisions of law may be provided in the form of written documents, reproductions of such documents, films or photo impressions, or electronically produced tapes, discs or records, or by any other mode or means which the commissioner determines is necessary or appropriate. A reasonable fee may be prescribed by the commissioner for furnishing such tax information.
  4. (d) Any reproduction of any return, document or other material made in accordance with this section shall have the same legal status as the original, and any such reproduction shall, if properly authenticated, be admissible in evidence in any judicial or administrative proceeding as if it were the original, whether or not the original is in existence.
History (2)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-138.
§ 67-1-1709. Violations — Penalties.
  1. (a) It is a Class E felony for any person who has, or had at any time, access to any return or tax information to disclose to any person, except as authorized by law, any such return or tax information. If such offense is committed by any officer or employee of the state or any other officer or employee described in § 67-1-1702(a), the officer or employee shall, in addition to any other punishment, be dismissed from office or discharged from employment upon conviction for such offense.
  2. (b) It is a Class E felony for any person to offer any item of material value in exchange for any return or tax information and to receive as a result of such solicitation any such return or tax information.
  3. (c) It is a Class E felony for any employee of the department willfully to inspect any return or tax information, except when the employee has a good faith and objectively reasonable basis for believing such inspection is in furtherance of the employee's duties or responsibilities.
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History (4)
  • Acts 1977, ch. 152, § 1
  • T.C.A., § 67-139
  • Acts 2000, ch. 982, § 41
  • 2013, ch. 400, § 2.
§ 67-1-1710. Confidentiality of attorney-client communications.
  1. (a) In determining taxpayer liability of any professional practitioner licensed by this state, the commissioner shall have no authority to obtain access to legally privileged information, as provided for in § 23-3-105 or to confidential client information, as provided for in statute or professional rules, including the rules of the Tennessee supreme court. Confidential client information includes, but is not limited to, the identity of a client, the nature of the matter for which representation was sought, or any information obtained by counsel in the course of the client's representation.
  2. (b) When the provisions of subsection (a) are asserted, the disclosure of any information shall be made only after a court order compelling disclosure of such information is final. In an action to compel such disclosure, the client affected by the disclosure has the right to intervene anonymously; any examination of the information shall be conducted in camera; and the commissioner shall have the burden of proof to show, by clear and convincing evidence, that the information sought is not privileged or confidential client information.
History (1)
  • Acts 1999, ch. 406, § 16.
§ 67-1-1711. Disclosure by commissioner.
  1. The commissioner is authorized to disclose tax administration information, other than returns and tax information, if the commissioner determines that such disclosure is in the best interests of the state; provided, that no law shall be construed to require disclosure of criteria or standards used or to be used for the selection of returns or persons for audit or examination, or data used or to be used for determining such criteria or standards, if the commissioner determines that such disclosure will impair assessment, collection, or enforcement under state tax laws.
History (1)
  • Acts 2000, ch. 982, § 42.
§ 67-1-1712. Certified service provider.
  1. (a) A certified service provider and the department shall comply with the privacy policy of the Streamlined Sales and Use Tax Agreement, and the policy is enforceable by the attorney general and reporter.
  2. (b) Returns and tax information of a Model 1 seller may be disclosed to the seller's certified service provider.
History (4)
  • Acts 2003, ch. 357, § 1
  • 2004, ch. 959, §§ 50, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 55.
Part 18 Taxpayer Remedies for Disputed Taxes
§ 67-1-1801. Enumeration of remedies.
  1. (a)
    1. (1) In all cases in which any officer, charged by law with the authority to assess taxes that are collected or administered by the commissioner of revenue, shall finally assess a tax alleged or claimed to be due, if the taxpayer against whom the final assessment is made believes the final assessment to be unjust, illegal or incorrect, the taxpayer's remedies shall be as follows:
      1. (A) The taxpayer may pay the tax and file a claim for refund of the tax and proceed as provided in this part; or
      2. (B) The taxpayer may file suit against the commissioner in chancery court in the appropriate county in this state, challenging all or any portion of the final assessment of such tax, including any interest and penalty associated with the tax. Until the earlier of the expiration of ninety (90) days after an assessment becomes final, or the filing of a suit by the taxpayer as provided in subsection (b), no levy as defined in § 67-1-1404 shall be made, begun or prosecuted by the commissioner. The commissioner may, however, initiate and pursue any other action to collect an assessed deficiency under part 14 of this chapter or otherwise, including, but not limited to, the filing of a notice of lien as provided in § 67-1-1403 and the collection of a jeopardy assessment.
    2. (2) Subdivision (a)(1)(B) shall not apply to those cases where the final assessment is based on:
      1. (A) Bad checks;
      2. (B) Debit memos based on mathematical errors caused by the taxpayer's own figures; and
      3. (C) Delinquent partial payment agreements.
  2. (b) A suit challenging the final assessment of a tax or seeking a stay of collection of an inheritance or gift tax deficiency pending a final determination of a timely proceeding for review of an appraisal filed by the taxpayer before the appropriate board must be:
    1. (1) Filed within ninety (90) days from the date the assessment becomes final, with a copy of the notice of proposed assessment issued pursuant to § 67-1-1438 attached to the notice as an exhibit; and
    2. (2) Signed by the taxpayer under the penalties of perjury, affirming that the taxpayer or affiant believes that the final assessment, or the portion of the final assessment being challenged, is unjust, illegal or incorrect and that the suit is brought in good faith and not solely for the purpose of delay.
  3. (c)
    1. (1) A suit filed by a taxpayer under subsection (b) shall operate to continue the stay of collection of the tax, or portion of the tax challenged, as provided in subdivision (a)(1)(B), except as otherwise provided in subsection (d), until dismissal or final determination of the tax, if the taxpayer also files with the taxpayer's suit one (1) of the following:
      1. (A) A corporate surety bond or an irrevocable letter of credit, in the form prescribed by regulations issued by the commissioner, issued by a qualified surety company or bank, in a principal amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit;
      2. (B) A pledge or collateral assignment of assets in an amount and form satisfactory to the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment; or
      3. (C)
        1. (i) An affidavit executed by or on behalf of the taxpayer, which lists and describes with particularity:
          1. (a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and
          2. (b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and
        2. (ii) A certified copy of each notice of lien, in the form prescribed by regulations issued by the commissioner, required to be filed herein. A notice of lien in favor of the commissioner on all of the taxpayer's real property, wherever situated, shall be filed in the office of the secretary of state and in the office of the register of deeds in the county of the taxpayer's domicile or principal place of business in this state. A notice of lien in favor of the commissioner shall also be filed in other states, in the county in which the taxpayer's real estate is situated.
    2. (2) For purposes of this subsection (c):
      1. (A) In the case of a corporate taxpayer, no distribution to a shareholder of the corporation by way of a dividend, redemption, liquidation or partial liquidation, nor principal repayment of a debt by the corporate taxpayer to the shareholder shall be deemed as having been made for full and adequate consideration;
      2. (B) A corporate surety company shall be qualified to issue a surety bond, if it is authorized by the commissioner of commerce and insurance to engage in the surety insurance business in this state, and a bank shall be qualified to issue its irrevocable letter of credit if it has been designated by the state treasurer as an authorized depository bank for the deposit of state funds, unless it has been determined by the commissioner to be not qualified for this purpose, based on reasonable standards uniformly applied;
      3. (C) An asset of a taxpayer may include property assigned to the taxpayer for the limited purpose of having such asset pledged, collaterally assigned, or subjected to the lien in favor of the commissioner;
      4. (D) A notice of lien filed as provided in subsection (b) constitutes a lien against taxpayer's property, including after-acquired property and replacement property, to the extent of the amount of the final assessment or portion of the final assessment challenged by the taxpayer's suit, including all penalties and interest associated with the final assessment or imposed by the court, and shall have priority over all subsequent liens filed and perfected against the taxpayer's property, and may be collected and enforced by the commissioner in the same manner as a judicial lien or judgment, or in accordance with part 14 of this chapter; and
      5. (E) A notice of lien, whether filed by the commissioner under § 67-1-1403 or filed by the taxpayer under this subsection (c), against any inventory, stock in trade, or trade receivables of the taxpayer shall not operate to or be construed so as to preclude the sale of such inventory or stock in trade by the taxpayer to customers in the ordinary course of the taxpayer's trade or business, nor to prevent the taxpayer from using the proceeds from the sale of inventory or stock in trade to customers in the ordinary course of the taxpayer's trade or business, and the proceeds from collection of trade receivables for the ordinary and necessary conduct and continuation of the taxpayer's trade or business.
  4. (d) If the taxpayer has filed a qualified corporate surety bond or bank irrevocable letter of credit in the amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit, or has entered into a pledge or collateral assignment of assets in an amount and form satisfactory with the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment, or has filed certified copies of notices of liens on all of the taxpayer's property, or on unencumbered property of the taxpayer located in this state equal in value to at least one hundred fifty percent (150%) of the amount of the final assessment, or the portion of the final assessment challenged by the suit, proceedings or actions for the collection of the assessed tax or challenged portion of the assessed tax, including an action to enforce the lien in favor of the commissioner under part 14 of this chapter, shall be stayed pending final determination of the suit; provided, that, unless the taxpayer has filed a qualified corporate surety bond or bank irrevocable letter of credit in the amount provided in this subsection (d), the commissioner shall not be prohibited or stayed from taking action to enforce or collect a jeopardy assessment as provided in §§ 67-1-1406 and 67-1-1431. In the event the suit is withdrawn or dismissed, or final judgment on the suit is rendered in favor of the commissioner as to all or any portion of the challenged assessment, the commissioner shall be entitled to collect the amount of the final assessment, interest accrued on the final assessment, and any penalty assessed against the taxpayer, by enforcement of the bond, the letter of credit, the pledge or collateral assignment of assets, or the lien.
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  5. (e) In the event the commissioner commences a jeopardy proceeding under §§ 67-1-1406 and 67-1-1431, a taxpayer who has filed suit under this section and who has filed a pledge or collateral assignment of assets in an amount and form acceptable and consented to by the commissioner, or has filed notices of lien on all of such taxpayer's property or on unencumbered property of the taxpayer located in this state, equal in value to at least one hundred fifty percent (150%) of the assessment or portion of the assessment challenged by the suit, shall have the right to seek a stay by the court of such jeopardy proceeding. The court shall not have jurisdiction to issue an ex parte stay or temporary restraining order. A stay or temporary order restraining such jeopardy proceeding may be issued by the court only after a hearing held upon not less than fifteen (15) nor more than thirty (30) days prior notice to the commissioner. At a hearing for stay or temporary order restraining jeopardy proceedings, the commissioner's basis for such proceeding shall be presumed to be correct, and the burden of proof shall be on the taxpayer to establish by clear and convincing evidence that the commissioner does not have a reasonable basis in fact for finding that collection of the tax is in jeopardy.
  6. (f) If the taxpayer files an amendment to the taxpayer's complaint challenging the final assessment of additional taxes, for purposes of staying action for collection under subsection (d), such amended complaint shall be treated as an original complaint, and no stay of collection shall apply, unless or until an additional qualified corporate surety bond, bank letter of credit, pledge or collateral assignment of assets consented to by the commissioner is filed, or notices of lien are filed on all taxpayer's property or on additional property of the taxpayer located in the United States, to the extent required to equal or exceed one hundred fifty percent (150%) of the amount of additional assessment challenged. The filing of an amendment to a complaint in a pending suit challenging the final assessment of additional taxes shall be deemed to be the filing of a suit as provided in subsection (b).
  7. (g) The commissioner may at any time file a motion with the court challenging the qualification, sufficiency, or validity and accuracy of any bond, letter of credit, affidavit, or notice of lien filed by a taxpayer. Such motion may also seek to increase the amount of any bond, letter of credit, pledge or collateral assignment of assets, or notice of lien, which shall be granted, if it reasonably appears to the court that the amount is not sufficient to protect the state adequately. The commissioner shall be entitled to discover any and all matters, not privileged, pursuant to the Rules of Civil Procedure. If a bond, letter of credit, or notice of lien is determined, after hearing, to be disqualified or insufficient to stay a levy or action to collect the final assessment, or portion of the final assessment challenged, such stay shall be lifted, unless made qualified or sufficient within the time, not to exceed ten (10) days, prescribed by the court. If the court, after hearing, determines that an affidavit filed by the taxpayer contains material omissions, misrepresentations, overvaluation of assets or understatement of liabilities, the court shall dismiss the taxpayer's suit with prejudice, unless the court also finds, from the preponderance of the evidence, that such omission, misrepresentation, overvaluation or understatement was not intentional and was not made for the purpose of misleading the commissioner or the court, or of concealing or disguising assets, transfer of assets, or the value of those assets.
  8. (h) The commissioner shall be entitled, upon motion with notice to the transferee or assignee of a taxpayer's assets, to have the court set aside and order restored to the taxpayer for the benefit of the commissioner all transfers and assignments of the taxpayer's assets occurring subsequent to or within one (1) year preceding the filing of suit by the taxpayer challenging an assessment by the commissioner, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of the taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth. The commissioner shall be entitled to discover any and all matters, not privileged, pursuant to the Rules of Civil Procedure. The court may order the restored assets sold and liquidated under the procedures established in part 14 of this chapter, and shall apply the net proceeds of the sale to the payment of all amounts assessed by the commissioner against the taxpayer, and shall return the balance of the proceeds, pro rata, to the person or persons from whom the assignment or transfer of such assets was set aside.
  9. (i) To the extent of any amounts collected by or paid to the commissioner with respect to an assessment, or any portion of the assessment, challenged by suit by the taxpayer, whether such collection was pursuant to a jeopardy proceeding, by application of assets restored to the taxpayer pursuant to subsection (h), or otherwise, the suit shall proceed as a timely suit for refund of taxes paid, as if a timely claim for refund had been filed by the taxpayer and denied by the commissioner.
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  10. (j) Any notice of a proposed or final assessment issued by the department shall include notice that the taxpayer has the right to file suit in the appropriate chancery court of this state in accordance with this section to challenge the final assessment and collection of the tax within ninety (90) days from the date such assessment becomes final.
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History (5)
  • Acts 1986, ch. 749, § 5
  • 1987, ch. 91, § 1
  • 1998, ch. 637, § 1
  • 1998, ch. 641, § 5
  • 2014, ch. 854, § 9.
§ 67-1-1802. Refunds — Report of debts.
  1. (a)
    1. (1)
      1. (A) The commissioner of revenue, with the approval of the attorney general and reporter, except as provided in subdivision (a)(4), is empowered and directed to refund to taxpayers all taxes collected or administered by the commissioner that are, on the date of payment, paid in error or paid against any statute, rule, regulation or clause of the constitution of this state or of the United States. Such refunds shall include, but not be limited to, credit carryovers generated after an audit review of returns, reports, or other documents filed by the taxpayer, including amendments to the returns, reports, or other documents. Such refunds do not, however, include credits generated by mechanical processing or mechanical mathematical verification processes. The commissioner is also authorized to automatically issue a credit or refund, without the necessity of the approval processes set out in this subsection (a), for the portion of estimated taxes paid in excess of the actual liability established by the initial and subsequently filed return for the tax period. The authority granted in this subdivision (a)(1)(A) extends only to taxes for which a claim is filed, with the commissioner under penalties of perjury, within three (3) years from December 31 of the year in which the payment was made. The claim must set forth each ground upon which a refund is claimed, the amount of such refund, the tax period, the tax type, and information reasonably sufficient to apprise the commissioner of the general basis for the claim. A refund requested on a franchise and excise tax return, or amended return, properly filed with the commissioner is deemed to comply with those requirements. The entire disputed amount of tax, penalty and interest must be paid before any claim for refund can be filed.
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      2. (B)
        1. (i) Any taxpayer requesting a refund in the amount of two hundred dollars ($200) or more that is not eligible for automatic credit or refund pursuant to subdivision (a)(1)(A) shall complete and submit a written report of debts owed to a claimant as defined in § 67-1-1808 on a form prescribed by the commissioner to accompany the claim for refund. If a debt is reported and if the claim for refund is approved, any or all of the refund amount shall be subject to offset to recover the amount of such debt, subject to the requirements of § 67-1-1808. Any person who, with intent to deceive, provides false information on such report commits the Class A misdemeanor offense of perjury pursuant to § 39-16-702. Such report shall state whether or not such person owes or does not owe any of the following debts as of the date of the claim:
          1. (a) State tax liabilities;
          2. (b) Child support;
          3. (c) Overpayment of unemployment compensation benefits;
          4. (d) Overpayment of medical assistance benefits owed the bureau of TennCare;
          5. (e) Student loan or other obligation due to the Tennessee student assistance corporation;
          6. (f) Fees, costs or restitution owed to a clerk who serves a court of criminal jurisdiction;
          7. (g) Costs of incarceration;
          8. (h) Judgments or liens in favor of a state agency, department, commission, or bureau;
          9. (i) All other debts owed to any other claimant.
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        2. (ii) Each of the debts in subdivision (a)(1)(B)(i) that are listed in the report shall be preceded by the words “Yes” and “No” and a taxpayer shall make a cross mark (X) or other similar mark opposite the debt the taxpayer owes or does not owe. If a taxpayer marks “Yes” for any such debt, the taxpayer shall attach documentation identifying the claimant to whom the debt is owed and the outstanding balance of the debt. The report shall clearly state in bold face type that a person who, with intent to deceive, provides false information on the report is guilty of the Class A misdemeanor offense of perjury. The report required by this subdivision (a)(1)(B) shall be made on a paper writing in substantially the following form:
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    2. (2) The commissioner is authorized to make refunds without a claim being filed if the commissioner is in possession of proper proof and facts that a refund is due within three (3) years from December 31 of the year in which the payment was made.
    3. (3) The commissioner is authorized to refund excise taxes due a taxpayer because of a decrease in net income divulged by an examination by the internal revenue service; provided, that a claim is filed with the commissioner, supported by proper proof, within three (3) years from the date of such redetermination of net income by the internal revenue service.
    4. (4) The commissioner is authorized to refund estate or inheritance taxes due a taxpayer because of a decrease in federal estate tax resulting from an examination by the internal revenue service; provided, that a claim is filed with the commissioner, supported by proper proof, within two (2) years from the date of such redetermination of the estate by the internal revenue service.
    5. (5) The commissioner is authorized to refund, without the necessity of a claim having been filed, inheritance taxes due a taxpayer because of a decrease in inheritance tax resulting from an examination by the commissioner.
    6. (6)
      1. (A) The commissioner is authorized and empowered, in the commissioner's discretion, to designate subordinate officials in the department to approve, on the commissioner's behalf, claims for refunds in amounts of five thousand dollars ($5,000) or less. Only one (1) such subordinate official and one (1) alternate subordinate official shall be designated to approve any one (1) class of claims. The commissioner shall notify, in writing, the commissioner of finance and administration and the attorney general and reporter as to the names of any such subordinate officials so designated.
      2. (B) The commissioner is also authorized and empowered, in the commissioner's discretion, to approve claims for refunds in amounts of more than five thousand dollars ($5,000) but not more than fifteen thousand dollars ($15,000). The commissioner is authorized and empowered to designate, in the commissioner's discretion, subordinate officials in the department to initially review claims for refund. Such subordinate official shall make a finding in regard to each claim recommending either approval or disapproval. This finding shall be reviewed by the legal office of the department of revenue, which shall make its own recommendation approving or disapproving the claim. Both these findings shall be submitted to the commissioner, or the commissioner's designated subordinate official, who shall make a final determination, either approving or disapproving the claim in the commissioner's or the commissioner's designated subordinate official's discretion, based on all information available to the commissioner or the commissioner's designated subordinate official. The findings of the designated subordinate official and legal office shall be advisory only and shall not be construed to limit the discretion of the commissioner in making refunds under this subsection (a). The commissioner is authorized and empowered to designate subordinate officials in the department to approve, on the commissioner's behalf, claims for refund under this subdivision (a)(6)(B).
      3. (C) The commissioner is also authorized and empowered to approve claims for refunds in amounts of more than fifteen thousand dollars ($15,000); provided, that the attorney general and reporter may require that the refund of such claims or any class of such claims be subject to the attorney general and reporter's prior review and approval.
    7. (7) A refund which is authorized solely by a final court adjudication shall not be made to any person who is not either a party to such action or a party to another similar action.
    8. (8) In any case in which the statute of limitations on the assessment of tax is extended by agreement in writing pursuant to § 67-1-1501(b)(5), the periods specified in this subsection (a) which limit the ability of the commissioner to refund taxes may also be extended for an equivalent period of time by agreement in writing entered into by the commissioner or the commissioner's delegate and the taxpayer.
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  2. (b)
    1. (1) All claims for refund filed pursuant to this section shall be finally determined within six (6) months following receipt of the claim. If the claim for refund is denied, the commissioner shall promptly notify the claimant of the denial and the claimant's right to file a suit for refund in the appropriate chancery court of this state within one (1) year from the date that the claim for refund was filed with the commissioner.
    2. (2) If a claim is not determined within the six-month period following receipt by the commissioner of such claim, the claim shall be deemed to be denied for the purpose of filing suit in chancery court.
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  3. (c)
    1. (1) A suit challenging the denial or deemed denial of a claim for refund shall be filed in the appropriate chancery court of this state within one (1) year from the date that the claim for refund was filed with the commissioner; provided, that a taxpayer and the commissioner or the commissioner's delegate may enter into an agreement in writing within one (1) year from the date the taxpayer filed a claim for refund in which the taxpayer and the commissioner or the commissioner's delegate consent to suit being filed in chancery court beyond the one-year period provided in this subdivision (c)(1) and that, in the case of an agreement, the taxpayer may file suit in the appropriate chancery court challenging the denial or deemed denial of a claim for refund within the agreed upon period.
    2. (2) In a suit challenging the denial or deemed denial of a claim for refund, the chancery court shall conduct a de novo trial of the suit; provided, that the court shall have no jurisdiction in cases in which the issue is the existence, continued existence, or amount of a debt set off against a tax refund, or in which the issue is the validity of an assessment made pursuant to § 67-1-1808(i). The remedies established in § 67-1-1808 are a taxpayer's sole and exclusive remedies to challenge the existence, continued existence, or amount of a debt set off against a tax refund, or to challenge the validity of an assessment made pursuant to § 67-1-1808(i).
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    3. (3) The commissioner, by written notice promptly delivered to the taxpayer, may waive the requirement that the taxpayer file a claim for refund, in which case the taxpayer may file suit in the appropriate chancery court of this state for a refund within one (1) year following the date of such waiver by the commissioner, and such suit shall proceed in all respects, including for the purpose of determining the date from which interest thereon should be calculated, as if proper and timely claim for refund had been filed by the taxpayer, and either denied or not acted upon by the commissioner within the period specified herein.
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    4. (4) Notwithstanding this subsection (c), a suit challenging the denial or deemed denial of a claim for refund under § 67-4-2122 must be filed in the chancery court of Sumner County. The complaint must be signed by the taxpayer under the penalties of perjury, affirming that the taxpayer or affiant believes that the department's denial of the refund being challenged is unjust, illegal, or incorrect and that the suit is brought in good faith.
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  4. (d) This section is specifically made applicable to a refund arising from the application of § 67-6-507(e)(6). If a certified service provider, as defined in § 67-6-102, has assumed sales and use tax return filing responsibilities of the seller, the provider shall have the right to claim, on behalf of the seller, any bad debt allowance or refund available to the seller under § 67-6-507.
  5. (e)
    1. (1) As used in this section, “taxpayer” means:
      1. (A) A dealer as defined in § 67-6-102 that remitted the sales or use taxes to the commissioner;
      2. (B) A person that paid the sales or use taxes to a dealer that collected and remitted such taxes to the commissioner, if:
        1. (i) The person requested a refund from the dealer on at least two (2) separate occasions and the dealer failed or declined to issue the refund; and
        2. (ii) The dealer attests to the following under penalty of perjury on a form prescribed by the commissioner:
          1. (a) The taxes were remitted to the department by the dealer, including the amount and the date remitted;
          2. (b) The dealer has not claimed and will not claim a refund of such taxes;
          3. (c) The dealer has not taken and will not take a credit for such taxes;
          4. (d) The dealer's sales and use tax account number; and
          5. (e) The local jurisdiction or jurisdictions for which any local sales tax included in the refund claim was collected and remitted; or
      3. (C) A person that paid sales or use taxes to a dealer that collected and remitted such taxes to the commissioner, if:
        1. (i) The person requested a refund from the dealer on at least two (2) separate occasions and the dealer failed or declined to issue the refund; and
        2. (ii) The person reasonably attempted but was unable to obtain an attestation from the dealer as required under subdivision (e)(1)(B)(ii); provided, however, a refund shall not be issued to a taxpayer that files a claim for refund under this subdivision (e)(1)(C) unless the commissioner, in the commissioner's discretion, determines that sufficient information is reasonably available to verify that the taxes were remitted by the dealer to the department, that the dealer has not claimed a refund of such taxes, that the dealer has not taken a credit for such taxes, the dealer's sales and use tax account number, and the local jurisdiction or jurisdictions for which any local sales tax included in the refund claim was collected and remitted. For purposes of this subdivision (e)(1)(C)(ii), a purchaser who contacts the dealer in writing at least twice at least ninety (90) days prior to the expiration of the statute of limitations for requesting such refund is deemed to have made a reasonable attempt to obtain the dealer's attestation.
    2. (2) For a taxpayer as defined in subdivision (e)(1)(B) or (e)(1)(C) to file a claim for refund under this subsection (e), the amount of the claim for refund to be filed by such taxpayer must exceed two thousand five hundred dollars ($2,500) per dealer.
    3. (3) Any refund claimed by a taxpayer must otherwise meet the requirements of this section.
    4. (4) Sales or use taxes that were collected from or passed on to customers by a taxpayer as defined in subdivision (e)(1)(A) shall not be refunded unless the taxpayer has refunded or credited the sales or use tax to its customers.
Backlinks (17)
History (19)
  • Acts 1986, ch. 749, § 6
  • 1988, ch. 526, §§ 2, 3
  • 1989, ch. 127, § 1
  • 1989, ch. 236, § 6
  • 1991, ch. 80, § 2
  • 1992, ch. 626, §§ 2, 3
  • 1998, ch. 595, § 1
  • 1999, ch. 406, § 8
  • 2003, ch. 357, § 2
  • 2004, ch. 721, § 1
  • 2004, ch. 959, §§ 51, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 499, § 27
  • 2007, ch. 602, §§ 31-33, 51, 56
  • 2008, ch. 1106, § 34
  • 2010, ch. 1113, §§ 5, 6
  • 2011, ch. 343, § 1
  • 2021, ch. 480, §§ 1, 2
  • 2024, ch. 950, § 19.
§ 67-1-1803. Jurisdiction — Certification of refunds — Attorneys' fees — Statute of limitation tolled — Appeals — Expedited proceedings.
  1. (a) Subject matter jurisdiction shall be, and the venue of suits filed pursuant to this part shall lie, in the chancery court in either Davidson County or in the county in Tennessee of the taxpayer's domicile or in the county in which the taxpayer has the taxpayer's principal place of business in Tennessee.
  2. (b) If it is determined that the taxes for which a claim for refund was made pursuant to § 67-1-1802, or as to which suit proceeded as a timely suit for refund pursuant to § 67-1-1801(i), were not due from the taxpayer to the commissioner of revenue for any reason going to the merits of the tax, then the court shall certify of record that the tax was wrongfully paid and ought to be refunded, together with interest on the tax calculated forty-five (45) days from the date of filing a claim for refund or date of waiver by the commissioner pursuant to § 67-1-1802(c)(2), or on the date of payment in the case of any tax collected after suit was filed under § 67-1-1801, in accordance with § 67-1-1801(d). Thereupon, the commissioner of finance and administration shall issue such commissioner's warrant for the refund, which shall be paid in preference to all other claims on the state treasury.
  3. (c) For the purpose of suits brought under this part, the commissioner of revenue shall be considered a resident of each of the several counties of the state.
  4. (d) The court shall award to the prevailing party reasonable attorneys' fees and expenses of litigation up to twenty percent (20%) of the amount finally assessed or denied, including interest after payment; provided, that, attorneys' fees and expenses must not be awarded or paid for any amount awarded or denied based on an allegation that the franchise tax in chapter 4, part 21, of this title, or any provision of chapter 4, part 21, of this title, is unconstitutional by failing the internal consistency test. For purposes of this subsection (d), attorneys' fees shall not exceed fees calculated on the basis of reasonable hourly rates multiplied by a reasonable number of hours expended in the case and shall not be calculated by application of any premium, enhancement, or contingency. For purposes of this subsection (d), the state shall be deemed the prevailing party where the taxpayer is found by a court to be the transferee of assets conveyed in violation of title 66, chapter 3, or the tax, penalty or interest at issue in the case arises from the same underlying activity with respect to which the taxpayer or one of its officers, owners or employees was found to have committed fraud.
  5. (e) The filing of the suit by the taxpayer tolls all statutes of limitations as to other persons potentially liable to the taxpayer due to the occurrence from which the claim before the court arises until the final determination of the suit.
  6. (f) Appeals of any decision of the chancery court of suits brought under this part shall be under the Tennessee Rules of Appellate Procedure.
  7. (g) Hearings and determination of all proceedings brought under this part, shall be expedited to the extent feasible and proper.
  8. (h) Notwithstanding this part or another law to the contrary, a suit that contains a claim or allegation that the franchise tax in chapter 4, part 21, of this title, or any provision of that part, including § 67-4-2108 as that section existed prior to the effective date of this act, is unconstitutional by failing the internal consistency test must be filed on or before November 30, 2024.
History (9)
  • Acts 1986, ch. 749, § 7
  • 1991, ch. 402, § 1
  • 1992, ch. 952, § 9
  • 1994, ch. 956, § 1
  • 2007, ch. 602, § 34
  • 2008, ch. 1106, § 60
  • 2009, ch. 530, § 102
  • 2014, ch. 854, § 10
  • 2024, ch. 950, §§ 6, 18.
§ 67-1-1804. Exclusivity of procedures.
  1. The procedure established by this part is the sole and exclusive jurisdiction for determining liability for all taxes collected or administered by the commissioner of revenue, except that the state board of equalization shall have jurisdiction concurrent with the chancery court in inheritance tax cases in which only issues of valuation are raised, as provided by § 67-8-411, and the board designated in § 67-8-116 shall have jurisdiction concurrent with the chancery court in gift tax cases in which only issues of valuation are raised, as provided by § 67-8-116.
History (1)
  • Acts 1986, ch. 749, § 8.
§ 67-1-1806. Rules and regulations.
  1. The commissioner of revenue is authorized to promulgate rules and regulations and to prescribe forms to implement this part.
History (1)
  • Acts 1986, ch. 749, § 10.
§ 67-1-1807. Applicable laws — Conditions precedent for recovery — Conflicting laws.
  1. (a) All taxes paid on or after January 1, 1986, shall be governed by the laws regarding refunds and suits for the recovery of taxes as set out in this part.
  2. (b)
    1. (1) It shall not be a condition precedent for suit for recovery of taxes paid on or after January 1, 1986, that the taxes be paid under protest, involuntarily, or under duress.
    2. (2) No suit for the recovery of any tax paid prior to January 1, 1986, shall be allowed unless such tax was paid under protest.
  3. (c) To the extent that this section conflicts with any other law, this section shall control and supersede all such laws.
History (2)
  • Acts 1986, ch. 749, § 11
  • 1987, ch. 92, § 1.
§ 67-1-1808. Offset of the taxpayer's refund of taxes by the amount of debt owed to a claimant.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1) “Claimant” means any state agency, department, board, bureau, commission, or authority to which a taxpayer owes any debt listed in subsection (d) or that acts on behalf of a person to collect such debt. Such term may also include a clerk who serves a court of criminal jurisdiction, if the clerk has determined to participate in the offset provisions of this section;
    2. (2) “Debt” means any money, unpaid account, or sum due and owing any claimant by a taxpayer, or any money, unpaid account, or sum that is due and owing any person and is legally enforceable by the claimant;
    3. (3) “Debtor” means a person owing a debt to a claimant and who files a claim for a tax refund, subject to the further requirements of this section;
    4. (4) “Offset” or “set off” means the application of all or part of a taxpayer's refund of taxes to pay a taxpayer's debt owed to a claimant; and
    5. (5) “Person” or “taxpayer” means every individual, firm, partnership, joint venture, association, corporation, limited liability company, cooperative, trust, regulated investment company, receiver, and syndicate.
  2. (b) Whenever a taxpayer has, on the date of payment, paid taxes in error or paid taxes against any statute, rule, regulation or clause of the constitution of the state or of the United States, and is due a refund pursuant to this part, and the taxpayer reports to be a debtor in the manner provided by § 67-1-1802(a)(1)(B)(ii), the commissioner shall offset the taxpayer's refund of taxes by the amount of the debt as provided in this section.
  3. (c) This section shall apply to any claim for refund of state taxes filed by any taxpayer in the amount of two hundred dollars ($200) or more that is not eligible for automatic credit or refund pursuant to § 67-1-1802(a)(1)(A). A tax refund shall not be offset to pay the debt of any person who is not the taxpayer due the refund. Whenever a claim for refund is filed by two (2) or more persons, who were jointly and severally liable for the taxes paid, the entire refund amount shall be subject to offset to pay the debt or debts of one (1) or more of the taxpayers.
  4. (d) The following debts shall be used to offset a refund of taxes:
    1. (1) State tax liabilities due pursuant to this title;
    2. (2) Child support due pursuant to title 36, chapters 2, 5, or 6, or pursuant to title 37, chapter 1;
    3. (3) Amounts owed to the unemployment compensation fund pursuant to title 50, chapter 7;
    4. (4) Obligations owing to the bureau of TennCare for overpayment of medical assistance benefits pursuant to title 71, chapter 5;
    5. (5) Student loan or other obligation due to the Tennessee student assistance corporation pursuant to title 49, chapter 4;
    6. (6) Fees, costs or restitution collected by a clerk who serves a court of criminal jurisdiction, if reported pursuant to subsection (f);
    7. (7) Costs of incarceration due pursuant to title 41, chapter 21, part 9;
    8. (8) Judgments and liens in favor of a claimant; and
    9. (9) All other debts owed to any other claimant.
  5. (e) In the event that a taxpayer owes debts to several claimants, priority of set off against any refund shall be as follows:
    1. (1) State tax liabilities;
    2. (2) Child support;
    3. (3) Judgments and liens in favor of a claimant in order of the date entered or perfected; and
    4. (4) All other debts owed to any other claimant in the order in which the debt was incurred.
  6. (f)
    1. (1) When a taxpayer reports that any debt is owed to a claimant in the manner provided by § 67-1-1802(a)(1)(B)(ii), and if the commissioner determines such taxpayer is entitled to a refund, then the commissioner shall notify the treasurer and each claimant identified in the documentation accompanying the claim for refund of the department's intent to issue a refund. Such notification shall also include:
      1. (A) The name and address of the taxpayer;
      2. (B) The original tax refund amount;
      3. (C) The proposed offset amount; and
      4. (D) The proposed net tax refund amount.
    2. (2) The notification to the treasurer may include any other information that would assist the treasurer in determining whether the taxpayer may be the owner of unclaimed property held in trust on the owner's behalf. Following receipt of the notification, the treasurer shall verify to the department whether or not the taxpayer is the owner of unclaimed property. The amount of the debt owing to a claimant shall be set off against the amount of the unclaimed property otherwise due the taxpayer.
    3. (3) Following receipt of the notification provided in subdivision (f)(1) and prior to an offset of a tax refund, a claimant shall provide written notice to the debtor, and to the commissioner of revenue, of the claimant's intent to set off all or part of the tax refund to pay the debt. Such notice shall set forth the:
      1. (A) Original tax refund amount;
      2. (B) Proposed offset amount;
      3. (C) Proposed net tax refund amount;
      4. (D) Basis for a claim to the debt and set off;
      5. (E) Taxpayer's right to appeal the proposed offset as provided in subsection (g); and
      6. (F) A toll-free telephone number or other contact information which the debtor may use in obtaining information from the claimant concerning the debt and the proposed offset action.
  7. (g)
    1. (1)
      1. (A) If any debt has been previously determined to exist and to be due and owing as a result of a final order issued pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or a judgment entered by any court of record, then a debtor shall be afforded an opportunity for a hearing to determine the continued existence of the debt and whether it remains outstanding. No hearing shall be conducted as provided in this subdivision (g)(1)(A) unless the time limits for appealing any prior final order or judgment have expired as provided by law.
      2. (B) Any debtor who desires a hearing shall submit to the department of revenue a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). If a hearing is requested, then it shall be held by the commissioner of revenue or the commissioner's designee as provided in the Uniform Administrative Procedures Act. The commissioner may request that an administrative judge or hearing officer employed in the office of the secretary of state conduct the hearing as provided in the Uniform Administrative Procedures Act.
    2. (2)
      1. (A) If any debt has not been determined to exist, or to be due and owing as a result of a prior final order or judgment, as provided in subdivision (g)(1)(A), then a debtor shall be afforded an opportunity for a hearing, in accordance with subdivision (g)(2)(B), to determine the existence of the debt, and if so, whether the claimed debt asserted as due and owing is correct.
      2. (B) Any debtor who desires a hearing shall submit to the claimant a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). The claimant shall notify the department of revenue as to whether the taxpayer filed a timely request for hearing upon the expiration of the twenty-day period for filing such request or receipt of a request for a hearing. If a hearing is requested, then it shall be held by the claimant or the claimant's designee as provided in the Uniform Administrative Procedures Act. If the amount due is incorrect, a proper adjustment shall be made. After entry of a final order following any hearing, the claimant shall send a copy of the final order to the commissioner of revenue.
    3. (3) All final orders issued pursuant to the Uniform Administrative Procedures Act, as provided in subdivision (g)(1) or (g)(2), shall set forth the amount owed by the taxpayer to the claimant that is subject to set off.
  8. (h)
    1. (1) The commissioner of revenue shall set off the appropriate amount of a debt against the tax refund if a taxpayer fails to file a timely request for a hearing, or upon receipt of a final order, or as soon thereafter as practicable. Any portion of a tax refund remaining after the offset shall be refunded or credited to a taxpayer, as requested in the claim for refund. The commissioner shall ensure that the appropriate amount of the refund subject to set off is used to satisfy any debts owed by the taxpayer.
    2. (2) The commissioner of revenue shall notify the taxpayer in writing and provide an accounting of the action taken on any refund whenever the commissioner sets off a taxpayer's refund pursuant to this section.
    3. (3) The commissioner of revenue may require a claimant to pay a fee to reimburse the department of revenue's costs of collecting the debt on behalf of a claimant; provided, that the fee shall not exceed five dollars ($5.00) per offset action.
  9. (i)
    1. (1) On an annual basis, the department of revenue shall submit to the following claimants a list of taxpayers for the previous year who filed claims for refunds and received such refunds in the amount of two hundred dollars ($200) or more and for which no debts were reported in accordance with § 67-1-1802(a)(1)(B)(i):
      1. (A) Department of human services;
      2. (B) Department of labor and workforce development;
      3. (C) Bureau of TennCare;
      4. (D) Tennessee student assistance corporation;
      5. (E) Administrative office of the courts; and
      6. (F) Attorney general and reporter.
    2. (2) If any such claimant receiving such list has information in its records verifying that a named taxpayer owed a debt as of the date of the claim for refund, such claimant shall notify the department of revenue of the name of the debtor, the amount of the debt, and the date on which the debt was incurred. The clerk who serves a court of criminal jurisdiction shall notify the department if the clerk has determined to participate in the offset provisions of this section. Notwithstanding any other law to the contrary, the department of revenue shall make an assessment against the taxpayer to recover the amount of the debt that would have otherwise been offset against the refund payment. The procedures established in subsection (g) to challenge a proposed offset shall be the sole and exclusive remedies for challenging an assessment made pursuant to this subsection (i); provided, that the debtor is provided information in the notice of assessment about the procedures for challenging such assessment and the twenty-day period for requesting a hearing shall begin from the date of the notice of assessment. Nothing in this section shall require any state agency or its employees or officers to violate strict standards of confidentiality set forth in applicable federal or state law or regulations.
    Backlinks (1)
  10. (j) Notwithstanding part 17 of this chapter, or any other law prohibiting disclosure of a taxpayer's identity or tax information, all information exchanged among the department of revenue, the department of treasury, and any claimant necessary to accomplish the purpose of this section is lawful.
Backlinks (5)
History (1)
  • Acts 2010, ch. 1113, § 7.
Chapter 2 Income Taxation
§ 67-2-101. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1)
      1. (A) “Bond” means all obligations issued by any person, firm, joint-stock company, business trust or corporation organized and doing business under the laws of this state, or any other state, evidenced by an instrument whereby the obligor is bound to pay interest to the obligee regardless of whether the obligor is doing business in this state, or whether the obligation under the terms of which the interest accrues is a mortgage or lien on property located in this state or beyond the jurisdiction of the state;
      2. (B) “Bond” does not include:
        1. (i) Ordinary commercial paper, trade acceptance, etc., maturing in six (6) months or less from the date of issuance; or
        2. (ii) Certificates of deposit, repurchase agreements or similar evidences of indebtedness;
    2. (2) “Commissioner” means the commissioner of revenue;
    3. (3) “Corporate property” means the franchise, corporate excess or intangible value of the corporation as well as all other property;
    4. (4) “Deficiency” means:
      1. (A) The amount by which the tax imposed by this chapter exceeds the amount shown as the tax by the taxpayer upon the taxpayer's return; or
      2. (B) If no amount is shown as the tax by the taxpayer upon the taxpayer's return, or if no return is made, the correct amount of the tax;
    5. (5) “Person,” “it,” or any other singular pronoun means every natural person, inhabitant, resident, beneficiary of every trust or estate, partnership, joint-stock company, business trust, corporation or any other form of organization in receipt of dividends from corporate stocks and/or interest on bonds as defined in this section, regardless of the sources from which such income is derived, except as otherwise expressly provided. Any person who has a legal domicile in Tennessee shall be subject to the tax imposed; every person who maintains a place of residence in Tennessee for more than six (6) months in the tax year shall be subject to the tax imposed by this chapter, regardless of what place such person may claim as a legal domicile;
    6. (6) “Stocks” means shares of stock issued by corporations chartered and organized under the laws of the state of Tennessee, or of any other state, or of the United States, or of any foreign government, and all interests in partnerships, associations, or trusts represented by transferable evidence of such interest; and
    7. (7) “Taxpayer's tax year” means the calendar year, unless a fiscal year is elected by the taxpayer when the first fiscal year return is due to be filed.
Backlinks (2)
History (12)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 3
  • 1933, ch. 60, § 1
  • 1949, ch. 185, § 3
  • C. Supp. 1950, § 1123.3
  • Acts 1959, ch. 290, § 1
  • 1963, ch. 271, § 2
  • 1967, ch. 176, § 1
  • 1982, ch. 652, § 1
  • T.C.A. (orig. ed.), §§ 67-2601, 67-2624
  • Acts 1985, ch. 58, § 1
  • 1985, ch. 364, § 1
  • 1989, ch. 186, § 1.
§ 67-2-102. Imposition, rate and collection of tax.
  1. An income tax shall be levied and collected annually on incomes derived by way of dividends from stocks or by way of interest on bonds of each person, partnership, association, trust and corporation in this state who received, or to whom accrued, or to whom was credited during any year income from the sources enumerated in this section, except as otherwise provided in this chapter. The rate of the tax imposed by this chapter shall be:
    1. (1) For any tax year that begins on or after January 1, 2017, and prior to January 1, 2018, four percent (4%);
    2. (2) For any tax year that begins on or after January 1, 2018, and prior to January 1, 2019, three percent (3%);
    3. (3) For any tax year that begins on or after January 1, 2019, and prior to January 1, 2020, two percent (2%);
    4. (4) For any tax year that begins on or after January 1, 2020, and prior to January 1, 2021, one percent (1%); and
    5. (5) For any tax year that begins on or after January 1, 2021, and for subsequent tax years, zero percent (0%).
Backlinks (8)
History (10)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 1
  • 1937, ch. 117, § 1
  • 1937, ch. 297, § 1
  • C. Supp. 1950, § 1123.1
  • modified
  • Acts 1967, ch. 176, § 2
  • T.C.A. (orig. ed.), §§ 67-2602, 67-2603
  • Acts 1985, ch. 395, § 2
  • 2016, ch. 1064, § 1
  • 2017, ch. 181, § 13.
§ 67-2-103. Tax for state purposes only.
  1. Subject to § 67-2-119, the tax provided for in this part is for state purposes only, and no county or municipality shall have power to levy the tax.
History (4)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 2
  • mod. C. Supp. 1950, § 1123.2
  • modified
  • T.C.A. (orig. ed.), § 67-2604.
§ 67-2-104. Exemptions.
  1. (a) The tax imposed by this chapter does not apply to the first one thousand two hundred fifty dollars ($1,250) for each individual return or two thousand five hundred dollars ($2,500) of combined income for persons who file jointly, of income otherwise taxable under this chapter.
  2. (b) For tax years beginning January 1, 2000, and thereafter, any person sixty-five (65) years of age or older having a total annual income derived from any and all sources of sixteen thousand two hundred dollars ($16,200) or less, or any persons who file a joint return and either spouse is sixty-five (65) years of age or older having a total annual joint income derived from any and all sources of not more than twenty seven thousand dollars ($27,000), are exempt from the income tax imposed by this chapter upon submission of evidence deemed acceptable by the commissioner to establish the age and income limitations stated in this subsection (b). For tax years beginning January 1, 2012, and thereafter, the income levels specified in the previous sentence in this subsection (b) shall change to twenty-six thousand two hundred dollars ($26,200) for single filers and to thirty-seven thousand dollars ($37,000) for persons filing jointly. For tax years beginning January 1, 2013, and thereafter, the income levels specified in the previous sentence in this subsection (b) shall change to thirty-three thousand dollars ($33,000) for single filers and to fifty-nine thousand dollars ($59,000) for persons filing jointly. For tax years beginning January 1, 2015, and thereafter, the income levels under this subsection (b) shall change to thirty-seven thousand dollars ($37,000) for single filers and to sixty-eight thousand dollars ($68,000) for persons filing jointly.
  3. (c) The income from stocks and bonds, mortgages, and notes owned and held by blind persons, or by persons certified, in writing, by a medical doctor to be a quadriplegic, and where such income is derived from circumstances resulting in the individual becoming a quadriplegic, are exempt from the tax imposed by this chapter.
  4. (d) No Tennessee citizen declared by the United States department of defense to be a prisoner of war is liable for payment of the tax provided for by this chapter during the time of such person's capture and imprisonment, nor for sixty (60) days upon such person's release, whenever it should occur.
  5. (e)
    1. (1) Nothing contained in this chapter shall be construed or held to authorize the levy of an income tax on obligations of the United States, whether evidenced by bonds or otherwise and/or on shares of stock in corporations that are arms and agencies directly of the United States, insofar as such bonds and stocks are exempt from such taxation by the constitution or laws of the United States; or on the income derived from bonds of the state of Tennessee, or any county or municipality or other political subdivision of the state of Tennessee not subject to ad valorem taxation.
    2. (2) Nothing contained in this chapter shall be construed or held to authorize the levy of an income tax on dividends from a regulated investment company qualified as such under Subtitle A, chapter 1, subchapter M of the Internal Revenue Code (26 U.S.C. §  851 et seq.); provided, that a part of the value of the investments of such regulated investment company shall be in any combination of bonds or securities of the United States government or any agency or instrumentality of the United States government or in bonds of the state of Tennessee, or any county or any municipality or political subdivision of the state of Tennessee, including any agency, board, authority or commission of the United States or the state of Tennessee. Such dividends shall be exempt from the levy of an income tax only in proportion to the income of the regulated investment company attributable to interest on bonds or securities of the United States government or any agency or instrumentality of the United States government or on bonds of the state of Tennessee, or any county or any municipality or political subdivision of the state of Tennessee, including any agency, board, authority or commission of the United States or the state of Tennessee.
    3. (3) No corporation shall be required to pay any income tax that otherwise would be assessable under this chapter on any stocks and/or bonds that constitute a part of the aggregate of its corporate property on which it is now assessed or shall be assessed for ad valorem taxes; nor when such stocks and/or bonds constitute a part of the assets that determine the value of the shares that are now or shall hereafter be assessed for ad valorem taxes to the stockholder.
    4. (4) No person shall be assessed with this tax on income from any stock in any corporation where the value of the shares is assessed ad valorem to the stockholder by this state.
    5. (5) No person shall be assessed with this tax on income from any stock in any corporation licensed to do business in this state as an insurance company.
    6. (6) No person shall be assessed with this tax on income from any stock in any bank, state or federally chartered, doing business in this state.
    7. (7) No distribution of capital shall be taxed as income under this chapter, and no distribution of surplus by way of stock dividend shall be taxable in the year such distribution is made; but all other distributions out of earned surplus shall be taxed as income when and in whatever manner made, regardless of when such surplus was earned. Stock dividends issued within one (1) year of liquidation shall be taxable in the year received to the extent made out of earned surplus; provided, that gains over and above the par or original pro rata capital value of original shares held shall be taxed to the shareholder upon any transfer of stock to nonresidents in the year of such transfer, when such transfer occurs within one (1) year prior to liquidation or redemption. There shall, however, be exempt from taxation under this section distribution made pursuant to decrees ordering divestiture of stock in enforcement of antitrust statutes.
    8. (8) The income from stocks and bonds of educational, religious or other like institutions organized for the general welfare and not for profit or individual gain that are exempt from taxation under the Assessment Act, codified in § 67-5-212, shall be exempt from the taxes imposed by this chapter; provided, that if any educational, religious or other like institution issues stocks or bonds, the income or profit or any part of which goes to private individuals or corporations for profit or gain and not purely for educational, religious or charitable purposes, such income or profit shall be subject to the tax imposed in this chapter.
    9. (9) The income from stocks and bonds of pension trusts and profit sharing trusts that are exempt from federal income taxation is exempt from the taxes imposed by this chapter.
    10. (10) The income from stocks and bonds held by a fiduciary and paid to or irrevocably set aside for the benefit of educational, religious, or other like institutions organized for the general welfare and not for profit or individual gain that are exempt from taxation under the Assessment Act, codified in § 67-5-212, is exempt from the taxes imposed by this chapter.
    11. (11) All income from interest on loans to qualified businesses for improvements, expansions, operations, or real property within an enterprise zone, as defined in title 13, chapter 28, part 2 shall be exempt from tax.
    12. (12) The income derived from the trust funds in a trust created for the perpetual care of a cemetery pursuant to title 46 shall be exempt from the taxes imposed by this chapter.
    13. (13) Nothing contained in this chapter shall be construed or held to authorize the levy of any tax on earnings or distributions from an investment fund organized as a unit investment trust taxable as a grantor trust under 26 U.S.C. §§ 671-677, or organized as a limited partnership taxable under 26 U.S.C. §§ 701-761 and registered under the Investment Company Act of 1940 (15 U.S.C. § 80a-1 et seq.); provided, that a part of the value of the investments of such investment fund shall be in any combination of bonds or securities of the United States government, or any agency or instrumentality of the United States government, or in bonds of the state of Tennessee, or any county or any municipality or political subdivision of the state of Tennessee, including any agency, board, authority or commission of the United States or the state of Tennessee. Such earnings or distributions shall be exempt from the levy of an income tax only in proportion to the income of the investment fund attributable to interest on bonds or securities of the United States government, or any agency or instrumentality of the United States government, or on bonds of the state of Tennessee, or any county or any municipality or political subdivision of the state of Tennessee, including any agency, board, authority or commission of the United States or the state of Tennessee.
    14. (14) Nothing contained in this chapter shall be construed or held to authorize the levy of any tax on earnings or distributions from an education individual retirement account as defined in § 213 of Public Law 105-34, so long as such earnings or distributions were not subject to federal income tax.
    15. (15) Nothing contained in this chapter shall be construed or held to authorize the levy of any tax on earnings or distributions from a Roth IRA as defined in Section 302 of Public Law 105-34, so long as such earnings or distributions are not subject to federal income tax.
    16. (16) The tax imposed by this chapter does not apply to an entity that satisfies both of the following requirements:
      1. (A) It:
        1. (i) Is classified as a partnership or trust in accordance with 26 U.S.C. § 7701, and the federal regulations and rulings promulgated under 26 U.S.C. § 7701;
        2. (ii) Has elected to be treated as a real estate mortgage investment conduit (REMIC) under 26 U.S.C. § 860D;
        3. (iii) Has elected to be treated as a financial asset securitization investment trust (FASIT) under 26 U.S.C. § 860L; or
        4. (iv) Is a business trust, as defined in § 48-101-202(a), or is classified as a trust under the laws of the state in which it is created and is disregarded for federal income tax under 26 U.S.C. § 7701, and the federal regulations and rulings promulgated under 26 U.S.C. § 7701, when the commercial domicile of the trustee is not in this state; and
      2. (B)
        1. (i) The sole purpose of the entity, except for foreclosures and dispositions of the assets of foreclosures, is the asset-backed securitization of debt obligations, such as first or second mortgages, including home equity loans, trade receivables, whether an open account or evidenced by a note or installment or conditional sales contract, obligations substituted for trade receivables, credit card receivables, personal property leases treated as debt for purposes of the Internal Revenue Code of 1986 (26 U.S.C.), home equity loans, automobile loans or similar debt obligations;
        2. (ii) “Trade receivables” as used in subdivision (e)(16)(B)(i) means obligations arising from the sale of inventory in the ordinary course of business.
    17. (17) The income from stock in any publicly traded real estate investment trust, as defined in § 67-4-2004, is exempt from the tax imposed by this chapter.
    18. (18) The income from stocks and bonds of trusts for perpetual care or improvement of private cemeteries, graves, or burial grounds are exempt from the taxes imposed by this chapter.
  6. (f) For tax years beginning January 1, 2018, and thereafter, any person one hundred (100) years of age or older, or any persons who file a joint return and either spouse is one hundred (100) years of age or older, are exempt from the income tax imposed by this chapter.
Backlinks (1)
History (39)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, §§ 4, 5, 16
  • 1933, ch. 60, § 2
  • 1937, ch. 117, § 2
  • 1949, ch. 221, § 1
  • mod. C. Supp. 1950, §§ 1123.1, 1123.4, 1123.5, 1123.32
  • Acts 1953, ch. 199, § 1 (Williams, § 1123.5)
  • 1953, ch. 238, § 1
  • 1955, ch. 135, § 4
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 167, § 1
  • 1963, ch. 271, § 3
  • 1963, ch. 273, § 1
  • 1968, ch. 431, § 8
  • 1972, ch. 484, § 1
  • 1976, ch. 638, § 1
  • 1977, ch. 140, § 8
  • 1977, ch. 347, § 1
  • 1978, ch. 849, § 1
  • modified
  • T.C.A. (orig. ed.), §§ 67-2605 — 67-2607, 67-2609 — 67-2612, 67-2635
  • Acts 1985, ch. 395, §§ 3, 5
  • 1987, ch. 378, § 1
  • 1988, ch. 1008, §§ 1, 2
  • 1989, ch. 222, § 6
  • 1989, ch. 524, § 2
  • 1989, ch. 560, § 18
  • 1992, ch. 931, §§ 1, 2
  • 1995, ch. 535, § 1
  • 1998, ch. 1013, § 1
  • 1998, ch. 1032, § 1
  • 1999, ch. 236, § 1
  • 2006, ch. 1019, § 21
  • 2008, ch. 1106, § 39
  • 2011, ch. 396, § 1
  • 2011, ch. 490, §§ 2, 3
  • 2012, ch. 667, § 1
  • 2013, ch. 322, § 1
  • 2015, ch. 434, § 1
  • 2017, ch. 453, § 1.
§ 67-2-105. Back assessments prohibited.
  1. Stocks and bonds upon the income from which a tax is imposed under this chapter shall not be back assessed for taxation by the state or any municipality, county or political subdivision of the state and the state of Tennessee and municipalities, counties and political subdivisions of this state, and the officials and representatives of the state are expressly prohibited from back assessing for ad valorem tax any such stocks and/or bonds for any year or years.
History (3)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 11
  • C. Supp. 1950, § 1123.26
  • T.C.A. (orig. ed.), § 67-2608.
§ 67-2-107. Returns generally.
  1. (a) Every person liable for the tax or taxes imposed by or levied under the authority of this chapter shall on or before the fifteenth day of the fourth month commencing after the end of the taxpayer's tax year make out, on forms prescribed by the commissioner, and file with the commissioner a statement or return setting out, in detail, the stocks and/or bonds for the receipt of income from which the taxpayer is liable for the tax or taxes imposed by this chapter, each security to be set out separately, and listing opposite each such item or security the amount of income received from the item or security during the taxpayer's preceding tax year; and showing the amount of the tax owing by such person to the state of Tennessee; and showing the residence of the taxpayer at the time of the filing of the return, and the residence of such taxpayer as of twelve o'clock (12:00) noon on the last day of the taxpayer's preceding tax year.
  2. (b)
    1. (1) Any such statement or report shall be signed and verified by the oath of the president, vice president, treasurer, assistant treasurer or managing agent in this state of the association, trust or corporation making the statement or report.
    2. (2) Returns filed by individuals shall contain or be verified by a written declaration that the return is made under the penalties of perjury.
  3. (c) The commissioner has the power to require all such other information from any person filing a return as, in the commissioner's opinion, may be necessary to effectuate the purposes of this chapter.
  4. (d) It is the duty of the department to provide suitable blanks and forms on which taxpayers, subject to this chapter, shall make their returns for taxation pursuant to this section.
  5. (e) An extension of six (6) months in which to file the return required by this section, and to pay the tax shown to be due, shall be granted; provided, that a request for extension is made in writing by the taxpayer or the taxpayer's authorized representative on a form prescribed by the commissioner, or by providing a copy of the taxpayer's request for an automatic extension of time to file the federal income tax return for the corresponding tax period. The request shall not be filed on the original due date of the return, but, instead, shall be attached to the return filed on or before the extended due date. Interest, as provided by § 67-1-801(a), shall attach to the unpaid amount due, from the original due date of the return until the date paid. If the taxpayer fails to file the request for extension required by this subsection (e), or if the return is not filed with payment of the tax shown to be due by the extended due date, penalty as provided by § 67-1-804 shall attach as though no extension had been granted.
  6. (f)
    1. (1) As used in this subsection (f), “perfection period” means a period of ten (10) calendar days, beginning with the day after date of the first transmission of an electronic return that is subsequently rejected by the commissioner, for the taxpayer to either:
      1. (A) Correct any errors in the return that cause it to fail to meet any of the validation criteria set by the commissioner and retransmit it; provided, that the commissioner subsequently accepts the corrected return; or
      2. (B) File a paper return postmarked on or before the expiration of the ten (10) calendar days; provided, that the taxpayer is not required to electronically file or the commissioner grants the taxpayer permission to file the return on paper.
    2. (2) A taxpayer's electronically filed return shall be treated as filed on the date of the last transmission prior to the return being accepted by the commissioner, except as provided in subdivision (f)(3). A taxpayer's paper return shall be treated as filed when mailed and postmarked, except as provided in subdivision (f)(3).
    3. (3) A return that complies with the requirements of the perfection period shall be treated as filed on the date of the first electronic transmission.
Backlinks (1)
History (9)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 6
  • 1949, ch. 185, § 1
  • mod. C. Supp. 1950, § 1123.6
  • Acts 1955, ch. 135, § 2
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1967, ch. 176, § 3
  • T.C.A. (orig. ed.), § 67-2614
  • Acts 2005, ch. 499, § 16
  • 2018, ch. 1048, § 1.
§ 67-2-108. Confidentiality of returns.
  1. (a) Except in accordance with proper judicial order or as otherwise required by law, it is unlawful for the commissioner and any deputy, agent, clerk or other officer or employee, to make known in any manner the amount of income or any particular set forth in any report or return required under this chapter, nor shall the information contained in any report filed by any taxpayer under the requirements of this chapter be used by the state or any county or municipality for the purpose of imposing any other or different tax on any such taxpayer; provided, that nothing in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns by legal representatives of the state in any suit or suits for the collection of the tax or any part of the tax or for the penalty and interest imposed by this chapter.
  2. (b) A violation of any of this section is a Class A misdemeanor.
  3. (c) The commissioner of revenue may permit the commissioner of the internal revenue service, or the proper officer of any state imposing a tax similar to that imposed by this chapter, or the authorized representative of either such officer, to inspect the tax return of any corporation, or may furnish to such officer or to the officer's authorized representative an abstract of the return of any corporation or supply the officer or representative with information concerning any item contained in any return; but such permission shall be granted or such information furnished to such officer or representative only if the statutes or regulations of the United States or of such other state, as the case may be, grant substantially similar privileges to the governor or the proper officers of this state charged with the administration of this chapter.
  4. (d) Municipal and county assessors of property shall be permitted by the commissioner and any deputy, agent, clerk, or other officer or employee, to inspect the tax return of any corporation and, upon request of such municipal or county assessors of property, the commissioner and any deputy, agent, clerk, or other officer or employee, shall be required to furnish to such assessor of property or the assessor of property's authorized representative an abstract of the return of any corporation or supply the assessor of property or representative with information concerning any item contained in any return.
History (8)
  • Acts 1931 (2nd Ex. Sess.), ch 20, § 12
  • 1937, ch. 117, § 5
  • C. Supp. 1950, § 1123.27
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 271, § 3
  • T.C.A. (orig. ed.), § 67-2630
  • Acts 1989, ch. 591, §§ 1, 6
  • 2008, ch. 971, §  1.
§ 67-2-109. Brokers — Liability for return and tax.
  1. When and if a broker or commission dealer does not make physical delivery to the broker's or commission dealer's customers of stocks and bonds, income from which is taxable under this chapter, but retains possession or title, or both, in such broker or commission dealer or through a nominee agent depository of such security and receives such income or credit for the stocks and bonds, the broker or commission dealer shall report such income to the commissioner, and pay the tax on the income measured by the dividends or interest credited, or which should be credited, to the accounts of the broker's or commission dealer's customers, unless the broker or commission dealer furnishes to the commissioner a list of the broker's or commission dealer's customers, with the last known address of each, to whom such dividends or interest have been paid or credited and the amount of the dividends or interest.
History (4)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 13
  • C. Supp. 1950, § 1123.28
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-2615.
§ 67-2-110. Fiduciaries — Liability for return and tax.
  1. (a) Trustees, guardians, administrators, executors, and other persons acting in a fiduciary capacity who receive income taxable under this chapter for the benefit of residents of Tennessee shall be required to make returns under this chapter and to pay the tax levied by this chapter. However, a trustee of a charitable remainder trust, as defined in Internal Revenue Code § 664 (26 U.S.C. § 664), shall not be required to make returns under this chapter nor to pay the tax, but shall report to each resident beneficiary the amount of taxable income distributed to such resident beneficiary, who shall be liable for the tax under this chapter. Additionally, the trustee of a trust, which is treated under 26 U.S.C. §§ 671-678 as owned by one (1) grantor or one (1) other person and which does not obtain a taxpayer identification number, as permitted under the Internal Revenue Code and accompanying regulations, shall not be required to file returns under this chapter nor to pay the tax, but shall report the total amount of income received by the trustee to the resident grantor or other person, who shall file the return and pay the tax levied by this chapter.
  2. (b) Trustees, guardians, and other persons acting in a fiduciary capacity who are residents of Tennessee, and who receive income on behalf of nonresident beneficiaries, shall not be required to pay tax under this chapter even though such income be derived from stocks or bonds that would otherwise be assessable under this chapter. However, executors or administrators receiving income taxable under this chapter from stocks or bonds that were the property of a decedent who, at the time of death, resided in Tennessee shall pay tax upon the stocks or bonds until the time as such stocks or bonds have been distributed or transferred to distributees or legatees of the decedent.
History (6)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 14
  • 1937, ch. 117, § 3
  • C. Supp. 1950, § 1123.30
  • T.C.A. (orig. ed.), § 67-2616
  • Acts 1995, ch. 71, § 1
  • 2013, ch. 480, § 2.
§ 67-2-111. Foreign trust beneficiaries — Liability for return and tax.
  1. (a) Any resident of Tennessee who receives income from a trust estate located outside this state, any portion of which is invested in securities, the income from which is taxable under this chapter, whether the trust estate be revocable or irrevocable, shall file with the commissioner, as part of the resident's income tax return, a sworn statement of the trustee, executor or other administrator of the trust estate showing what portion of the total income received by such Tennessee resident from such estates was derived from securities, the income from which is taxable under this chapter.
  2. (b) If such resident fails to file such sworn statement from the trustee, executor or other administrator, then the resident shall report for income taxation in the manner otherwise provided in this chapter the entire amount of income received by the resident from such trust estate.
History (4)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 14
  • C. Supp. 1950, § 1123.29
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-2617.
§ 67-2-112. Date tax due — Member of armed forces serving during period of hostilities.
  1. (a) The tax or taxes due and payable on account of income received during a taxpayer's tax year shall be paid in full on or before the fifteenth day of the fourth month commencing after the end of the taxpayer's tax year.
  2. (b)
    1. (1) No tax owed under this chapter by a person in the armed forces of the United States, or called into active military service of the United States, as defined in § 58-1-102, from a reserve or national guard unit, shall be due until one hundred eighty (180) days following the conclusion of hostilities in which such person is actually engaged outside the United States or one hundred eighty (180) days after such person is transferred from the theater of operations of such hostilities, whichever is sooner.
    2. (2) A person claiming this delay shall present proof, satisfactory to the commissioner, of such person's deployment and stationing outside the United States during a period of hostilities and proof of such person's return from such deployment.
    3. (3) This subsection (b) shall expressly apply to personnel stationed outside the United States during Operation Enduring Freedom or other hostilities where the military personnel are entitled to combat compensation as determined by the United States department of defense.
    4. (4) The estate of any such person who is killed in action in such hostilities shall owe no tax under this chapter, and any liability for any such tax, penalty or interest is forgiven.
    Backlinks (1)
Backlinks (1)
History (11)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 7
  • 1933, ch. 60, § 3
  • 1939, ch. 64, § 1
  • C. Supp. 1950, § 1123.7
  • Acts 1955, ch. 135, § 1
  • 1967, ch. 176, § 4
  • T.C.A. (orig. ed.), § 67-2618
  • Acts 1991, ch. 397, § 2
  • 2002, ch. 664, § 3
  • 2003, ch. 87, § 2
  • 2004, ch. 800, § 1.
§ 67-2-113. Powers of commissioner — Assistants.
  1. (a) The commissioner has full supervision of the administration and enforcement of this chapter and of the collection of all taxes imposed under this chapter.
  2. (b) The commissioner is empowered to call upon other departments of the state for such information and assistance as the commissioner may deem necessary.
  3. (c) The commissioner has the power to compel the attendance of witnesses and the production of evidence, by subpoena, to administer oaths and to take testimony in relation to any matter under this chapter.
  4. (d) The commissioner may designate such deputies, appraisers, agents and other assistants as may be necessary for carrying out the full purpose and intent of this chapter. Such deputies, appraisers, agents and assistants, so designated by the commissioner, shall be empowered to represent the commissioner and to perform such duties as are, by this chapter, required of the commissioner, including the power to issue subpoenas and administer oaths, and shall make bonds for the faithful performance of their duties, such bonds to be in such amounts and with such surety or sureties as the commissioner may prescribe.
  5. (e) The commissioner is further authorized and empowered to and the commissioner shall make all necessary rules and regulations not inconsistent with the terms of this chapter, which rules and regulations shall have the force and effect of law, for the purpose of fully carrying out, interpreting properly, enforcing, and giving effect to this chapter.
History (5)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 15
  • C. Supp. 1950, § 1123.31
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 271, §§ 2, 3
  • T.C.A. (orig. ed.), §§ 67-2619, 67-2620, 67-2634.
§ 67-2-114. Interest and penalties — Armed forces exclusion — Assessment or collection of tax or liability.
  1. (a) In computing the interest and penalty payable under this section, there shall be excluded, in the case of an individual serving in the armed forces of the United States, or serving in support of such armed forces in an area designated by the president of the United States by executive order as a “combat zone,” at any time during the period designated by the president by executive order as the period of combatant activities in such zone, or hospitalized outside the states of the union and the District of Columbia as a result of injury received or disease incurred while serving in such an area during such time, the period of service in such area, plus the period of continuous hospitalization outside the states of the union and the District of Columbia attributable to such injury or disease and the next ninety (90) days thereafter.
  2. (b) The assessment or collection of any income tax or of any liability to the state of Tennessee with respect to any such tax, or any action or proceeding by or on behalf of the state in connection with the tax, may be made, taken, begun, or prosecuted in accordance with law, without regard to subsection (a), unless prior to such assessment, collection action or proceeding it is ascertained that the individual concerned is entitled to the benefits of subsection (a).
History (8)
  • Acts 1963, ch. 271, § 2
  • 1969, ch. 63, § 1
  • 1970, ch. 363, § 1
  • 1980, ch. 885, § 10
  • T.C.A., § 67-2622
  • Acts 1985, ch. 396, § 9
  • 1988, ch. 526, § 21
  • 2005, ch. 499, § 15.
§ 67-2-115. Determination of tax by commissioner.
  1. (a) As soon as practicable after the return required is filed, the commissioner shall examine it and determine the correct amount of the tax. If the required return is not filed on or before the date due, the commissioner shall determine the amount of the tax upon the basis of any information the commissioner may possess or obtain.
  2. (b) Whenever in the judgment of the commissioner it is deemed necessary, the commissioner may require any person, by notice served upon the person by mail, to render under oath such statements or to reveal such information and records as the commissioner deems sufficient to show whether or not such person is liable for tax under this chapter.
  3. (c)
    1. (1) If the commissioner, in determining the correct amount of the tax, determines that there is a deficiency in respect of the tax imposed by this chapter, the commissioner shall send notice of the deficiency to the taxpayer by mail and shall make demand for the amount of the deficiency, which amount shall be paid by the taxpayer.
    2. (2) The deficiency, regardless of when paid, shall, for purposes of computing interest and penalty on the deficiency, be deemed to have been due on the due date provided in § 67-2-112, that is, the fifteenth day of the fourth month commencing after the end of the taxpayer's tax year.
    3. (3) Notice of deficiency may be issued for the purpose of making or revising, correcting, and/or increasing assessments and/or returns or reports of persons for the year in which such notice may be issued and/or five (5) years preceding such year, but no longer or otherwise; provided, that in the case of a fraudulent return with intent to evade tax or of a failure to file a return, the statute of limitations will not apply.
History (3)
  • Acts 1963, ch. 271, § 2
  • 1967, ch. 176, § 5
  • T.C.A., §§ 67-2623, 67-2625, 67-2628.
§ 67-2-116. Distress warrant.
  1. The commissioner may issue a distress warrant for the collection of the tax imposed by this chapter, together with interest and penalty on the tax, in accordance with § 67-4-110(a)-(d).
History (2)
  • Acts 1963, ch. 271, § 2
  • T.C.A., § 67-2626.
§ 67-2-117. Commissioner — Payment of revenue to comptroller of the treasury.
  1. It is the duty of the commissioner, within thirty (30) days after the receipt by the commissioner of any taxes imposed by the terms of this chapter, to turn over to the comptroller of the treasury the tax or taxes collected in accordance with the terms and provisions of this chapter, less the necessary expenses for the administration of this chapter, which expenses shall not exceed ten percent (10%) of the first two hundred thousand dollars ($200,000), of taxes collected under this chapter during any fiscal year, and five percent (5%) of taxes so received in excess of the sum of two hundred thousand dollars ($200,000). At the time the commissioner turns over such tax to the comptroller of the treasury, the commissioner shall furnish to the comptroller of the treasury a duplicate statement giving the names of the taxpayers, their respective addresses and the amounts paid and dates of payment, and the comptroller of the treasury shall cause such list so furnished to be checked back with the original records in the office of the commissioner, to the end that the statement so furnished to the comptroller of the treasury may be audited and verified.
Backlinks (2)
History (5)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 9
  • C. Supp. 1950, § 1123.25
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 271, § 3
  • T.C.A. (orig. ed.), § 67-2631.
§ 67-2-118. Disposition of proceeds from penalties.
  1. A sum not to exceed three-fifths (⅗) of all penalties collected during the preceding fiscal year may be used for administrative purposes and for the collection of the tax or taxes imposed by this chapter, such sum to be in addition to that authorized by § 67-2-117.
Backlinks (1)
History (4)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 8
  • C. Supp. 1950, § 1123.23
  • Acts 1963, ch. 271, § 3
  • T.C.A. (orig. ed.), § 67-2632.
§ 67-2-119. Disposition of revenue.
  1. (a) Of the taxes collected under this chapter upon income from stocks and bonds taxable at the rate provided in § 67-2-102 per annum, five-eighths (⅝) shall be paid into the general fund of the state treasury and the remaining three-eighths (⅜) shall be distributed among the cities and counties of the state.
  2. (b) Where a taxpayer residing within the corporate limits of any municipality pays a tax imposed at the rate provided in § 67-2-102 per annum, then three-eighths (⅜) of the net tax collected from such taxpayer shall be returned to the city within which such taxpayer resides.
  3. (c) Where a taxpayer residing in a county, but outside the corporate limits of any municipality, pays a tax imposed by this chapter at the rate provided in § 67-2-102 per annum, then three-eighths (⅜) of the net tax collected from such taxpayer shall be returned to the county within which such taxpayer resides.
  4. (d) In each instance, the payment to cities and counties covering collections made under this section during any fiscal year shall be made on or before July 31 immediately following the close of that year.
Backlinks (2)
History (15)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 17
  • 1933, ch. 60, § 5
  • 1937, ch. 117, § 4
  • 1937, ch. 297, § 2
  • mod. C. Supp. 1950, § 1123.33
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 271, § 3
  • 1978, ch. 507, § 1
  • T.C.A. (orig. ed.), § 67-2633
  • Acts 1985, ch. 395, § 4
  • 2003, ch. 355, § 32
  • 2005, ch. 500, § 4
  • 2006, ch. 989, § 9
  • 2016, ch. 1064, § 2
  • 2017, ch. 181, § 14.
§ 67-2-120. Taxpayer remedies.
  1. Nothing contained in this chapter shall be construed, in any way, to prevent any taxpayer from showing any legal remedy provided by law, and the taxpayer shall have all the remedy, legal and equitable, now allowed any person for the recovery of taxes and revenue improperly collected by paying the tax under protest.
History (7)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, §§ 8, 8-A
  • C. Supp. 1950, §§ 1123.21, 1123.24
  • impl. am. Acts 1959, ch. 9, §§ 3, 14
  • impl. am. Acts 1961, ch. 97, § 1
  • Acts 1963, ch. 271, §§ 2, 3
  • T.C.A. (orig. ed.), §§ 67-2627, 67-2629
  • Acts 1984, ch. 832, § 36.
§ 67-2-121. Violations — Criminal penalties.
  1. (a) Any person failing to file a return, as required by § 67-2-107, or any person violating any rule or regulation that may be promulgated by the commissioner under the authority vested in the commissioner in this chapter, commits a Class C misdemeanor.
  2. (b) The making of a false return with intent to defeat the tax constitutes a Class E felony.
History (9)
  • Acts 1931 (2nd Ex. Sess.), ch. 20, § 16
  • C. Supp. 1950, § 1123.32
  • Acts 1955, ch. 135, § 4
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 271, §§ 2, 3
  • 1972, ch. 484, § 1
  • T.C.A. (orig. ed.), §§ 67-2621, 67-2635
  • Acts 1989, ch. 591, §§ 95, 113
  • 2010, ch. 1134, § 47.
§ 67-2-122. Taxes paid on out-of-state shares of Subchapter S corporation.
  1. A resident individual who is a shareholder of a Subchapter S corporation that is incorporated and doing business in another state may deduct from the tax otherwise due under this chapter the tax paid to the other state as a result of such income, distributions or dividends; provided, that there exists a tax credit reciprocity agreement between Tennessee and the other state. In no case shall the credit permitted under this section exceed the tax that would be payable to this state.
History (1)
  • Acts 1994, ch. 787, § 1.
§ 67-2-123. Implementation of income tax incentive for participation in college savings plans.
  1. (a) The department shall assist the board of trustees of the college savings trust fund program in the implementation of an income tax incentive established under § 49-7-805(4) that shall include, but not be limited to, college savings plan incentive inserts in the department's income tax notifications, providing college savings plan incentives information with any website tax payment form, sending other notifications about college savings incentives by electronic means, and providing information about college savings incentives through any other web-based means.
  2. (b) For any insert included in the mailing of renewal notices that causes the total postal weight to be over one ounce (1 oz.) as permitted by the United States postal service, the board of trustees of the college savings trust fund program shall pay the increased cost of mailing.
History (2)
  • Acts 2014, ch. 910, § 28
  • 2017, ch. 400, § 12.
§ 67-2-124. Effect of reduction to rate of tax — Annual reduction of tax — Elimination of tax.
  1. (a) The reduction to the rate of tax made by chapter 1064 of the Public Acts of 2016 shall not be construed to absolve any taxpayer of liability for any tax duly levied by this chapter, during a tax year that began prior to January 1, 2016.
  2. (b) It is the legislative intent that the tax be reduced by one percent (1%) annually through enactments of general bills beginning with the first annual session of the 110th general assembly.
  3. (c) The income tax levied by this chapter is eliminated for tax years that begin on or after January 1, 2021; provided, however, that this subsection (c) shall not be construed to absolve any taxpayer of liability for any tax duly levied by this section, during a tax year that began prior to January 1, 2021.
History (2)
  • Acts 2016, ch. 1064, § 3
  • 2017, ch. 181, § 15.
§ 67-2-125. Angel investor tax credit.
  1. (a)
    1. (1) For tax years beginning January 1, 2017, and thereafter, there shall be allowed a credit of thirty-three percent (33%) of the value of a direct or indirect cash investment by an angel investor against the liability of such angel investor under this chapter in the tax year in which the investment was made. All credits allowed under this subsection (a) are nonrefundable and nontransferable. Any unused credit allowed under this subsection (a) may be carried forward for five (5) years after the tax year in which the credit originated.
    2. (2) For purposes of this section, “angel investor” means a natural person who:
      1. (A) Is an accredited investor as defined in 17 CFR 230.501(a)(5) or (a)(6); and
      2. (B) Invests in a company that, at the time of the investment:
        1. (i) Is an innovative small business with high-growth potential, including, but not limited to, tech-enabled startups and companies in the fields of consumer products, medical devices, life science, or additive manufacturing; or is a company that has received small business innovation research/small business technology transfer (SBIR/STTR) funding; or is commercializing technology developed at a research institution within this state;
        2. (ii) Is not a professional service firm and is not primarily engaged in the provision of goods or services within the following industries: construction, leisure, hospitality, retail, real estate, insurance, banking, lobbying, consulting, alcohol, or gambling;
        3. (iii) Has been in business for five (5) or fewer years;
        4. (iv) Has, based on the prior fiscal year, three million dollars ($3,000,000) or less in gross annual revenue; and
        5. (v) Has fifty (50) or fewer full-time employees, as defined in § 67-4-2109(f)(1)(A), and at least sixty percent (60%) of those employees perform the majority of their job duties within this state.
    3. (3) The credit allowed under this subsection (a) shall be limited to fifty thousand dollars ($50,000) per angel investor in any tax year.
    4. (4) For tax years beginning in 2017, a maximum of three million dollars ($3,000,000) in tax credits may be allowed under this subsection (a). For tax years beginning in 2018, a maximum of four million dollars ($4,000,000) of credits may be allowed under this subsection (a). For tax years beginning January 1, 2019, and thereafter, a maximum of five million dollars ($5,000,000) of credits may be allowed under this subsection (a).
    5. (5)
      1. (A) A credit may be allowed under this subsection (a) only if the investment is at least fifteen thousand dollars ($15,000) and represents no more than forty percent (40%) of the capitalization of the company at the time of the investment.
      2. (B) Within sixty (60) days of the date of the investment, the angel investor shall apply to the Tennessee technology development corporation, in a manner to be determined by the Tennessee technology development corporation, for a certificate of qualification under this section. The angel investor shall affirm that all requirements for qualification under subdivision (a)(2) have been met, and shall provide proof of the investment in a form to be determined by the Tennessee technology development corporation. Certificates of qualification shall be issued by the Tennessee technology development corporation on a first-come, first-served basis. The Tennessee technology development corporation shall ensure that the amount of all certificates of qualification issued under this subdivision (a)(5)(B) does not exceed the maximum annual amounts described in subdivision (a)(4).
      3. (C) The angel investor shall submit the certificate of qualification described in subdivision (a)(5)(B) to the department of revenue when claiming a credit under this section.
    6. (6) A qualified angel investor who invests in a company located in a Tier 4 county, as defined in § 67-4-2109(a)(2)(C), shall be allowed a credit of fifty percent (50%) of the value of such investment against the liability of such angel investor under this chapter. The angel investor shall otherwise be subject to all other requirements described in this section.
  2. (b) A review of the cumulative effectiveness of the credit authorized under this section shall be conducted by the Tennessee technology development corporation by July 1, 2020. Such review shall include, but is not limited to, the number and type of businesses that received angel investments, the number of angel investors and the aggregate amount of cash investments, the current status of each business that received angel investments, and the estimated economic impact to the state of businesses that received an investment under this section. A report containing the findings of the review conducted pursuant to this subsection (b) shall be generated. A copy of the report shall be transmitted to the governor, the speaker of the senate, the speaker of the house of representatives, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, the commissioner of economic and community development, and the commissioner of revenue.
History (2)
  • Acts 2016, ch. 1055, § 1
  • 2018, ch. 892, § 1.
Chapter 3 Petroleum Products and Alternative Fuels Tax Law
Part 1 General Provisions
§ 67-3-101. Short title.
  1. This chapter shall be known and may be cited as the “Petroleum Products and Alternative Fuels Tax Law.”
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1201.
§ 67-3-102. Purpose of chapter — Construction.
  1. It is the intent of the general assembly in enacting this chapter to:
    1. (1) Establish an efficient and effective motor fuel tax collection and enforcement system adequate to substantially deter motor fuel tax evasion emanating from sources inside and outside this state;
    2. (2) Amend prior Tennessee law to change the point of taxation of diesel fuel; and
    3. (3) Maintain the previously existing system of taxation of petroleum products to the greatest extent possible within the framework of the modifications listed in subdivisions (1) and (2).
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1202.
§ 67-3-103. Chapter definitions. [Effective on January 1, 2025. See the version effective until January 1, 2025.]
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Agricultural purposes” means operating tractors or other farm equipment used exclusively, whether for hire or not, in plowing, planting, harvesting, raising or processing of farm products at a farm, nursery or greenhouse; or operating farm irrigation systems; when such vehicles or equipment are not operated upon the public highways of this state;
    2. (2) “Alternative fuel” means a liquefied petroleum gas or compressed natural gas product used in an internal combustion engine or motor, or a hydrogen gas product used to power a fuel cell, to propel any form of motor vehicle, machine, or mechanical contrivance. “Alternative fuel” includes all forms of fuel commonly known as butane, propane, or compressed natural gas;
    3. (3) “Blend stock” means any petroleum product component of gasoline, such as naphtha, reformate, or toluene, that can be blended for use in a motor fuel. However, “blend stock” does not include any substance that will be ultimately used for consumer nonmotor fuel use and is sold or removed in drum quantities of not more than fifty-five gallons (55 gals.) at the time of the removal or sale;
    4. (4) “Blended fuel” means a mixture composed of gasoline or diesel fuel and another liquid, other than a minimal amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle;
    5. (5) “Blender” means any person that produces blended motor fuel outside the bulk transfer/terminal system;
    6. (6) “Blending” means the mixing of one (1) or more petroleum products, with or without another product, regardless of the original character of the product blended, if the product obtained by the blending is capable of use or otherwise sold for use in the generation of power to propel a motor vehicle, an airplane, a motorboat, or other mechanical contrivance. “Blending” does not include blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil and greases;
    7. (7) “Bonded importer” means a person with a valid bonded importer's license under § 67-3-606;
    8. (8) “Bulk end user” means a person who receives into the person's own storage facilities, for the person's own consumption, transport lots of taxable motor fuel;
    9. (9) “Bulk export” means the movement of petroleum products from a point in Tennessee to another state by means of transport truck, pipeline, marine vessel or rail, including any quantity of petroleum product placed by the manufacturer into the vehicle fuel supply tank of a newly manufactured motor vehicle;
    10. (10) “Bulk plant” means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack;
    11. (11) “Bulk transfer” means any transfer of a petroleum product within the bulk transfer/terminal system from one location to another by pipeline or marine delivery;
    12. (12) “Bulk transfer/terminal system” means the motor fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Thus, gasoline in a refinery, pipeline, vessel, or terminal is in the bulk transfer/terminal system. Taxable motor fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system;
    13. (13) “Commissioner” means the commissioner of revenue or the commissioner's designated subordinate official;
    14. (14) “Computer-type pump” means a pump used to dispense fuel, that has meters for registering the total sales price and gallons sold, and displays the price per gallon on the dispenser;
    15. (15) “Customer-controlled pump” means a pump used for dispensing motor fuel directly to a customer who can access the pump by way of a personal key, an identification number, or a customer card that is assigned to the customer by a licensed wholesaler;
    16. (16) “Dead storage” means the amount of taxable motor fuel that will not be pumped out of a storage tank because the motor fuel is below the mouth of the draw pipe. For this purpose, a vendor may assume that the amount of motor fuel in dead storage is two hundred gallons (200 gals.) for a tank with a capacity of less than ten thousand gallons (10,000 gals.), and four hundred gallons (400 gals.) for a tank with a capacity of ten thousand gallons (10,000 gals.) or more;
    17. (17) “Department” means the department of revenue;
    18. (18) “Destination state” means the state, territory, or foreign country to which petroleum products are directed for resale or use;
    19. (19) “Diesel fuel” means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle. “Diesel fuel” does not include jet fuel or kerosene unless sold for use in a diesel-powered highway vehicle or used in such vehicles, in which case the fuel shall be deemed diesel fuel for taxation purposes. With regard to jet fuel, it is further provided that the buyer must be registered to purchase jet fuel subject to federal taxes applicable to jet fuel, and the vendor must obtain certification of such fact satisfactory to the department prior to making the sale;
    20. (20) “Diesel-powered highway vehicle” means a motor vehicle, propelled by a diesel-powered engine, that is operated, or intended to be operated, on a highway;
    21. (21) “Distributor report” means the report required under § 67-3-701;
    22. (22) “Diverted shipment” means any shipment of a petroleum product where the movement of that product by a transporter is changed from the original point of destination to another point of destination;
    23. (23) “Dyed diesel fuel” means diesel fuel dyed under United States environmental protection agency rules for high sulfur diesel fuel, or dyed under internal revenue service rules for low sulphur fuel, or dyed pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service, including any invisible marker requirements;
    24. (24) “Ethanol” means fuel grade ethanol;
    25. (25) “Export” means to obtain petroleum products in this state for sale, use, or distribution in another state. In applying this definition, the delivery of petroleum products outside Tennessee by or for the vendor constitutes an export by the vendor, and the delivery of petroleum products outside Tennessee by or for the purchaser constitutes an export by the purchaser;
    26. (26) “Exporter” means any person, other than a supplier, who purchases or otherwise holds title to taxable petroleum products in this state for the purpose of transporting or delivering the products to another state or country;
    27. (27) “Farm products” means flowers and plants, including cut flowers, flowering plants, potted plants, vegetables and vegetable plants, trees, shrubs, vines, ornamentals, sod, and mushrooms. “Farm products” also means livestock and poultry raised for food, including dairy products;
    28. (28) “Fuel alcohol” means any alcohol used or intended for use as fuel in a combustion engine or heating oil system;
    29. (29) “Fuel grade ethanol” means a product that meets the American Society for Testing and Materials (ASTM) standard in effect on January 1, 1995, and any successor rule, as the D-4806 specification for denatured fuel grade ethanol, for blending with gasoline for use as automatic spark-ignition engine fuels;
    30. (30) “Fuel transportation vehicle” means a vehicle designed for highway use that is also designed or used to transport motor fuels, including transport trucks and tank wagons;
    31. (31) “Gallon” or “net gallon” means the amount of petroleum product, corrected to a temperature of sixty degrees Fahrenheit (60°F) and a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.), necessary to completely fill a standard United States gallon liquid measure;
    32. (32) “Gasohol” means a blended fuel composed of gasoline and ethanol;
    33. (33) “Gasoline” means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel, but does not include any product that is sold as a product other than gasoline and has an ASTM octane number of less than seventy-five (75) as determined by the “motor method”; and does not include aviation gasoline; provided, that the buyer is registered to purchase aviation gasoline free of tax, and the vendor obtains certification of such fact satisfactory to the department prior to making the sale;
    34. (34) “Governmental agency” means a department of a local, state or federal government, where such department is organized by and accountable to the authority of the executive, legislative, or judicial branch of that government; but does not include a private organization, association, or contractor, whether for profit or not, unless specifically identified in this chapter. For the purpose of this chapter, “governmental agency” includes a rescue squad chartered by the state as a nonprofit corporation or association and that is a member of the Tennessee Association of Rescue Squads, and a volunteer fire department chartered by the state as a nonprofit corporation or association;
    35. (35) “Gross gallons” means the total measured product, exclusive of any temperature or pressure adjustments, considerations or deductions;
    36. (36) “Heating oil” means a motor fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes;
    37. (37) “Highway vehicle” means a self-propelled vehicle that is designed for use on a highway;
    38. (38) “Import” means to bring petroleum products into this state by any means of conveyance other than in the fuel supply tank of a motor vehicle. In applying this definition, the delivery of petroleum products into this state from outside Tennessee by or for the vendor constitutes an import by the vendor, and the delivery of petroleum products into this state from outside Tennessee by or for the purchaser constitutes an import by the purchaser;
    39. (39) “In this state” means the area inside the boundaries of Tennessee, but does not include the midstream of waterways that border the state;
    40. (40) “Invoiced gallons” means the gallons actually billed on an invoice from a vendor;
    41. (41) “K-1 kerosene” means burner fuel designed for unvented space heaters which meets ASTM standard D-3699, in effect on January 1, 1995, and any successor rule, as the specification for K-1 kerosene;
    42. (42) “Kerosene” has the same meaning as defined by the ASTM standards for kerosene;
    43. (43) “Liquid” means any substance that is liquid at temperatures in excess of sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.) absolute;
    44. (44) “Local transit company” means a person that is a scheduled, common carrier, public passenger, land transportation service, serving regular routes within a municipality and the territory adjacent to the municipality, or within a metropolitan government created under title 7, chapters 1-3, and that generates at least sixty percent (60%) of the total passenger fare from such routes; provided, that the operation is supervised, regulated, and controlled as a street railway company, under [former] § 65-16-101 [repealed], and all legislative and statutory provisions applicable thereto;
    45. (45) “Local transit service” means service furnished by a local transit company;
    46. (46) “Motor fuel” means gasoline, diesel fuel and blended fuel;
    47. (47) “Motor fuel transporter” means a person who transports motor fuel by transport truck, railroad tank car, marine vessel or pipeline;
    48. (48) “Motor vehicle” means a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's use on highways. “Motor vehicle” does not include:
      1. (A) Farm machinery, including machinery designed for off-road use but capable of movement on roads at low speeds;
      2. (B) A vehicle operated on rails; or
      3. (C) Machinery designed principally for off-road use, unless such machinery is licensed to operate on Tennessee highways;
    49. (49) “Permissive supplier” means any person who is not subject to the general taxing jurisdiction of this state, but who:
      1. (A) Is a position holder in a federally qualified terminal located outside this state;
      2. (B) Is registered under § 4101 of the Internal Revenue Code (26 U.S.C. § 4101) for transactions in taxable motor fuels in the bulk transfer/terminal distribution system; and
      3. (C) Acquires product in such out-of-state terminals from position holders in transactions that otherwise qualify as two-party exchanges;
    50. (50) “Person” means a natural person, partnership, firm, association, corporation, limited liability company, court appointed representative, state, political subdivision or any other entity, group, or syndicate;
    51. (51) “Petroleum products” means all benzol, gasoline, burning oil, distillate, fuel oil, gas oil, kerosene, naphtha, or any other volatile substance, excluding propane, reflecting a gravity of sixteen degrees (16°) or above on the American Petroleum Institute (API) scale; with the exception of those substances with a kinematic viscosity greater than seventy (70) centistokes at one hundred twenty-two degrees Fahrenheit (122°F) and a flash point greater than one hundred fifty degrees Fahrenheit (150°F); produced from petroleum, natural gas, oil shale or coal, by whatever trade name known, or substitutes therefor, including fuel alcohol, sold or used or stored in this state, separately or in combination, for any purpose whatever, by any user or storer, whether or not manufactured in this state;
    52. (52) “Position holder” means the person who holds the inventory position in petroleum products in a terminal, as reflected on the records of the terminal operator. A person holds the inventory position in petroleum products when that person has a contract with the operator for the use of storage facilities and terminaling services for petroleum products at the terminal. “Position holder” includes a terminal operator who owns petroleum products in the terminal;
    53. (53) “Public highway” means the entire width between boundary lines of each public-maintained way in this state, including streets and alleys in cities and towns, when any part of the way is open to the public use for vehicle travel;
    54. (54) “Qualified terminal” means a qualified terminal as defined under the Internal Revenue Code, regulation and practices, that has been assigned a terminal control number (TCN) by the internal revenue service;
    55. (55) “Rack” means a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a railroad tank car, a transport truck or another means of bulk transfer outside of the bulk transfer/terminal system;
    56. (56) “Refiner” means a person that owns, operates, or otherwise controls a refinery within the United States;
    57. (57) “Refinery” means a facility used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons, and from which motor fuel may be removed by pipeline, by marine vessel, or at a rack; provided, that “refinery” also means a facility used to produce fuel alcohol;
    58. (58) “Removal” means any physical transfer other than by evaporation, loss, or destruction, of petroleum products from a terminal, manufacturing plant, customs custody, pipeline, marine vessel (e.g., barge or tanker), refinery or any receptacle that stores petroleum products;
    59. (59) “Retail station” means any service station, garage, truck stop or other outlet dispensing motor fuel from a container equipped with a computer-type pump that measures fuel passing through it;
    60. (60) “Retailer” means a person that engages in the business of selling or distributing petroleum products to the end user within this state through a retail station;
    61. (61) “State” means the state of Tennessee;
    62. (62)
      1. (A) “Supplier” means a person that meets all the following conditions:
        1. (i) Is subject to the general taxing jurisdiction of this state;
        2. (ii) Is registered under § 4101 of the Internal Revenue Code (26 U.S.C. § 4101) for transactions in taxable motor fuels in the bulk transfer/terminal system; and
        3. (iii) Is one (1) of the following:
          1. (a) Is the “position holder” in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state;
          2. (b) Imports taxable petroleum products into this state from a foreign country;
          3. (c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account;
          4. (d) Produces fuel alcohol or alcohol derivative substances in this state; or
          5. (e) Is the receiving supplier on a two-party exchange;
      2. (B) A terminal operator shall not be considered a “supplier” merely because the terminal operator handles taxable petroleum products consigned to it within a terminal. When used in this chapter, other than in this section, “supplier” shall be deemed to also refer to the term “permissive supplier” unless provided otherwise;
    63. (63) “Tank wagon” means a straight truck having multiple compartments designed or used to carry petroleum products;
    64. (64) “Taxable motor fuel” means gasoline, diesel fuel, kerosene, and blends thereof, and any other substance blended with any of these fuels;
    65. (65) “Terminal” means a storage and distribution facility for taxable motor fuel, supplied by pipeline or marine vessel, that is registered as a qualified terminal by the internal revenue service;
    66. (66) “Terminal bulk transfer” means a transfer of petroleum products in any of the following instances:
      1. (A) Marine barge movements of fuel from a refinery or terminal to a refinery or terminal;
      2. (B) Pipeline movements of fuel from a refinery or terminal to a refinery or terminal;
      3. (C) Rail movements of fuel from a refinery or terminal to a refinery or terminal;
      4. (D) Book transfers of product within a terminal between suppliers prior to completion of removal across the rack; or
      5. (E) Two-party exchanges between licensed suppliers within a terminal;
    67. (67)
      1. (A) “Terminal operator” means a person that:
        1. (i) Owns, operates, or otherwise controls a terminal; and
        2. (ii) Does not use a substantial portion of the taxable motor fuel that is transferred through or stored in the terminal for its own use, i.e., for its own consumption or in the manufacture of products other than motor fuel;
      2. (B) A terminal operator may own the taxable motor fuel that is transferred through or stored in the terminal;
    68. (68) “Transmix” means the buffer or interface between two (2) different products in a pipeline shipment, or a mix of two (2) different products within a refinery or terminal that results in an off-grade mixture;
    69. (69) “Transport truck” means a semi-trailer combination rig or tank wagon designed or used for the purpose of transporting petroleum products over the highways;
    70. (70) “Transporter” means any operator of a pipeline, barge, railroad or transport truck engaged in the business of transporting petroleum products;
    71. (71) “Two-party exchange” means a transaction in which a petroleum product is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier pursuant to an exchange agreement:
      1. (A) Which transaction includes a transfer from the person that holds the inventory position for taxable motor fuel in the terminal as reflected on the records of the terminal operator; and
      2. (B) The exchange transaction is completed prior to removal of the product from the terminal by the receiving exchange partner;
    72. (72) “Undyed diesel fuel” means diesel fuel not dyed under United States environmental protection agency rules for high sulfur diesel fuel nor dyed under internal revenue service rules for low sulphur fuel, nor pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service;
    73. (73) “Vehicle fuel supply tank” means any receptacle on a motor vehicle designed to supply fuel for the propulsion of the motor vehicle or from which fuel is supplied for the propulsion of the motor vehicle;
    74. (74) “Vessel” means a barge or other marine conveyance used to transport petroleum products in bulk; and
    75. (75) “Wholesaler” means a person who acquires petroleum products from a supplier, importer or from another wholesaler, for subsequent sale and distribution at wholesale by tank cars, transport trucks or vessels.
Backlinks (3)
History (4)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1203
  • Acts 2007, ch. 580, § 1
  • 2024, ch. 859, § 1.
§ 67-3-103. Chapter definitions. [Effective until January 1, 2025. See the version effective on January 1, 2025.]
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Agricultural purposes” means operating tractors or other farm equipment used exclusively, whether for hire or not, in plowing, planting, harvesting, raising or processing of farm products at a farm, nursery or greenhouse; or operating farm irrigation systems; when such vehicles or equipment are not operated upon the public highways of this state;
    2. (2) “Alternative fuel” means a liquefied petroleum gas or compressed natural gas product used in an internal combustion engine or motor to propel any form of motor vehicle, machine, or mechanical contrivance. “Alternative fuel” includes all forms of fuel commonly known as butane, propane, or compressed natural gas;
    3. (3) “Blend stock” means any petroleum product component of gasoline, such as naphtha, reformate, or toluene, that can be blended for use in a motor fuel. However, “blend stock” does not include any substance that will be ultimately used for consumer nonmotor fuel use and is sold or removed in drum quantities of not more than fifty-five gallons (55 gals.) at the time of the removal or sale;
    4. (4) “Blended fuel” means a mixture composed of gasoline or diesel fuel and another liquid, other than a minimal amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle;
    5. (5) “Blender” means any person that produces blended motor fuel outside the bulk transfer/terminal system;
    6. (6) “Blending” means the mixing of one (1) or more petroleum products, with or without another product, regardless of the original character of the product blended, if the product obtained by the blending is capable of use or otherwise sold for use in the generation of power to propel a motor vehicle, an airplane, a motorboat, or other mechanical contrivance. “Blending” does not include blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil and greases;
    7. (7) “Bonded importer” means a person with a valid bonded importer's license under § 67-3-606;
    8. (8) “Bulk end user” means a person who receives into the person's own storage facilities, for the person's own consumption, transport lots of taxable motor fuel;
    9. (9) “Bulk export” means the movement of petroleum products from a point in Tennessee to another state by means of transport truck, pipeline, marine vessel or rail, including any quantity of petroleum product placed by the manufacturer into the vehicle fuel supply tank of a newly manufactured motor vehicle;
    10. (10) “Bulk plant” means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack;
    11. (11) “Bulk transfer” means any transfer of a petroleum product within the bulk transfer/terminal system from one location to another by pipeline or marine delivery;
    12. (12) “Bulk transfer/terminal system” means the motor fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Thus, gasoline in a refinery, pipeline, vessel, or terminal is in the bulk transfer/terminal system. Taxable motor fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system;
    13. (13) “Commissioner” means the commissioner of revenue or the commissioner's designated subordinate official;
    14. (14) “Computer-type pump” means a pump used to dispense fuel, that has meters for registering the total sales price and gallons sold, and displays the price per gallon on the dispenser;
    15. (15) “Customer-controlled pump” means a pump used for dispensing motor fuel directly to a customer who can access the pump by way of a personal key, an identification number, or a customer card that is assigned to the customer by a licensed wholesaler;
    16. (16) “Dead storage” means the amount of taxable motor fuel that will not be pumped out of a storage tank because the motor fuel is below the mouth of the draw pipe. For this purpose, a vendor may assume that the amount of motor fuel in dead storage is two hundred gallons (200 gals.) for a tank with a capacity of less than ten thousand gallons (10,000 gals.), and four hundred gallons (400 gals.) for a tank with a capacity of ten thousand gallons (10,000 gals.) or more;
    17. (17) “Department” means the department of revenue;
    18. (18) “Destination state” means the state, territory, or foreign country to which petroleum products are directed for resale or use;
    19. (19) “Diesel fuel” means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle. “Diesel fuel” does not include jet fuel or kerosene unless sold for use in a diesel-powered highway vehicle or used in such vehicles, in which case the fuel shall be deemed diesel fuel for taxation purposes. With regard to jet fuel, it is further provided that the buyer must be registered to purchase jet fuel subject to federal taxes applicable to jet fuel, and the vendor must obtain certification of such fact satisfactory to the department prior to making the sale;
    20. (20) “Diesel-powered highway vehicle” means a motor vehicle, propelled by a diesel-powered engine, that is operated, or intended to be operated, on a highway;
    21. (21) “Distributor report” means the report required under § 67-3-701;
    22. (22) “Diverted shipment” means any shipment of a petroleum product where the movement of that product by a transporter is changed from the original point of destination to another point of destination;
    23. (23) “Dyed diesel fuel” means diesel fuel dyed under United States environmental protection agency rules for high sulfur diesel fuel, or dyed under internal revenue service rules for low sulphur fuel, or dyed pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service, including any invisible marker requirements;
    24. (24) “Ethanol” means fuel grade ethanol;
    25. (25) “Export” means to obtain petroleum products in this state for sale, use, or distribution in another state. In applying this definition, the delivery of petroleum products outside Tennessee by or for the vendor constitutes an export by the vendor, and the delivery of petroleum products outside Tennessee by or for the purchaser constitutes an export by the purchaser;
    26. (26) “Exporter” means any person, other than a supplier, who purchases or otherwise holds title to taxable petroleum products in this state for the purpose of transporting or delivering the products to another state or country;
    27. (27) “Farm products” means flowers and plants, including cut flowers, flowering plants, potted plants, vegetables and vegetable plants, trees, shrubs, vines, ornamentals, sod, and mushrooms. “Farm products” also means livestock and poultry raised for food, including dairy products;
    28. (28) “Fuel alcohol” means any alcohol used or intended for use as fuel in a combustion engine or heating oil system;
    29. (29) “Fuel grade ethanol” means a product that meets the American Society for Testing and Materials (ASTM) standard in effect on January 1, 1995, and any successor rule, as the D-4806 specification for denatured fuel grade ethanol, for blending with gasoline for use as automatic spark-ignition engine fuels;
    30. (30) “Fuel transportation vehicle” means a vehicle designed for highway use that is also designed or used to transport motor fuels, including transport trucks and tank wagons;
    31. (31) “Gallon” or “net gallon” means the amount of petroleum product, corrected to a temperature of sixty degrees Fahrenheit (60°F) and a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.), necessary to completely fill a standard United States gallon liquid measure;
    32. (32) “Gasohol” means a blended fuel composed of gasoline and ethanol;
    33. (33) “Gasoline” means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel, but does not include any product that is sold as a product other than gasoline and has an ASTM octane number of less than seventy-five (75) as determined by the “motor method”; and does not include aviation gasoline; provided, that the buyer is registered to purchase aviation gasoline free of tax, and the vendor obtains certification of such fact satisfactory to the department prior to making the sale;
    34. (34) “Governmental agency” means a department of a local, state or federal government, where such department is organized by and accountable to the authority of the executive, legislative, or judicial branch of that government; but does not include a private organization, association, or contractor, whether for profit or not, unless specifically identified in this chapter. For the purpose of this chapter, “governmental agency” includes a rescue squad chartered by the state as a nonprofit corporation or association and that is a member of the Tennessee Association of Rescue Squads, and a volunteer fire department chartered by the state as a nonprofit corporation or association;
    35. (35) “Gross gallons” means the total measured product, exclusive of any temperature or pressure adjustments, considerations or deductions;
    36. (36) “Heating oil” means a motor fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes;
    37. (37) “Highway vehicle” means a self-propelled vehicle that is designed for use on a highway;
    38. (38) “Import” means to bring petroleum products into this state by any means of conveyance other than in the fuel supply tank of a motor vehicle. In applying this definition, the delivery of petroleum products into this state from outside Tennessee by or for the vendor constitutes an import by the vendor, and the delivery of petroleum products into this state from outside Tennessee by or for the purchaser constitutes an import by the purchaser;
    39. (39) “In this state” means the area inside the boundaries of Tennessee, but does not include the midstream of waterways that border the state;
    40. (40) “Invoiced gallons” means the gallons actually billed on an invoice from a vendor;
    41. (41) “K-1 kerosene” means burner fuel designed for unvented space heaters which meets ASTM standard D-3699, in effect on January 1, 1995, and any successor rule, as the specification for K-1 kerosene;
    42. (42) “Kerosene” has the same meaning as defined by the ASTM standards for kerosene;
    43. (43) “Liquid” means any substance that is liquid at temperatures in excess of sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.) absolute;
    44. (44) “Local transit company” means a person that is a scheduled, common carrier, public passenger, land transportation service, serving regular routes within a municipality and the territory adjacent to the municipality, or within a metropolitan government created under title 7, chapters 1-3, and that generates at least sixty percent (60%) of the total passenger fare from such routes; provided, that the operation is supervised, regulated, and controlled as a street railway company, under [former] § 65-16-101 [repealed], and all legislative and statutory provisions applicable thereto;
    45. (45) “Local transit service” means service furnished by a local transit company;
    46. (46) “Motor fuel” means gasoline, diesel fuel and blended fuel;
    47. (47) “Motor fuel transporter” means a person who transports motor fuel by transport truck, railroad tank car, marine vessel or pipeline;
    48. (48) “Motor vehicle” means a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's use on highways. “Motor vehicle” does not include:
      1. (A) Farm machinery, including machinery designed for off-road use but capable of movement on roads at low speeds;
      2. (B) A vehicle operated on rails; or
      3. (C) Machinery designed principally for off-road use, unless such machinery is licensed to operate on Tennessee highways;
    49. (49) “Permissive supplier” means any person who is not subject to the general taxing jurisdiction of this state, but who:
      1. (A) Is a position holder in a federally qualified terminal located outside this state;
      2. (B) Is registered under § 4101 of the Internal Revenue Code (26 U.S.C. § 4101) for transactions in taxable motor fuels in the bulk transfer/terminal distribution system; and
      3. (C) Acquires product in such out-of-state terminals from position holders in transactions that otherwise qualify as two-party exchanges;
    50. (50) “Person” means a natural person, partnership, firm, association, corporation, limited liability company, court appointed representative, state, political subdivision or any other entity, group, or syndicate;
    51. (51) “Petroleum products” means all benzol, gasoline, burning oil, distillate, fuel oil, gas oil, kerosene, naphtha, or any other volatile substance, excluding propane, reflecting a gravity of sixteen degrees (16°) or above on the American Petroleum Institute (API) scale; with the exception of those substances with a kinematic viscosity greater than seventy (70) centistokes at one hundred twenty-two degrees Fahrenheit (122°F) and a flash point greater than one hundred fifty degrees Fahrenheit (150°F); produced from petroleum, natural gas, oil shale or coal, by whatever trade name known, or substitutes therefor, including fuel alcohol, sold or used or stored in this state, separately or in combination, for any purpose whatever, by any user or storer, whether or not manufactured in this state;
    52. (52) “Position holder” means the person who holds the inventory position in petroleum products in a terminal, as reflected on the records of the terminal operator. A person holds the inventory position in petroleum products when that person has a contract with the operator for the use of storage facilities and terminaling services for petroleum products at the terminal. “Position holder” includes a terminal operator who owns petroleum products in the terminal;
    53. (53) “Public highway” means the entire width between boundary lines of each public-maintained way in this state, including streets and alleys in cities and towns, when any part of the way is open to the public use for vehicle travel;
    54. (54) “Qualified terminal” means a qualified terminal as defined under the Internal Revenue Code, regulation and practices, that has been assigned a terminal control number (TCN) by the internal revenue service;
    55. (55) “Rack” means a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a railroad tank car, a transport truck or another means of bulk transfer outside of the bulk transfer/terminal system;
    56. (56) “Refiner” means a person that owns, operates, or otherwise controls a refinery within the United States;
    57. (57) “Refinery” means a facility used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons, and from which motor fuel may be removed by pipeline, by marine vessel, or at a rack; provided, that “refinery” also means a facility used to produce fuel alcohol;
    58. (58) “Removal” means any physical transfer other than by evaporation, loss, or destruction, of petroleum products from a terminal, manufacturing plant, customs custody, pipeline, marine vessel (e.g., barge or tanker), refinery or any receptacle that stores petroleum products;
    59. (59) “Retail station” means any service station, garage, truck stop or other outlet dispensing motor fuel from a container equipped with a computer-type pump that measures fuel passing through it;
    60. (60) “Retailer” means a person that engages in the business of selling or distributing petroleum products to the end user within this state through a retail station;
    61. (61) “State” means the state of Tennessee;
    62. (62)
      1. (A) “Supplier” means a person that meets all the following conditions:
        1. (i) Is subject to the general taxing jurisdiction of this state;
        2. (ii) Is registered under § 4101 of the Internal Revenue Code (26 U.S.C. § 4101) for transactions in taxable motor fuels in the bulk transfer/terminal system; and
        3. (iii) Is one (1) of the following:
          1. (a) Is the “position holder” in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state;
          2. (b) Imports taxable petroleum products into this state from a foreign country;
          3. (c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account;
          4. (d) Produces fuel alcohol or alcohol derivative substances in this state; or
          5. (e) Is the receiving supplier on a two-party exchange;
      2. (B) A terminal operator shall not be considered a “supplier” merely because the terminal operator handles taxable petroleum products consigned to it within a terminal. When used in this chapter, other than in this section, “supplier” shall be deemed to also refer to the term “permissive supplier” unless provided otherwise;
    63. (63) “Tank wagon” means a straight truck having multiple compartments designed or used to carry petroleum products;
    64. (64) “Taxable motor fuel” means gasoline, diesel fuel, kerosene, and blends thereof, and any other substance blended with any of these fuels;
    65. (65) “Terminal” means a storage and distribution facility for taxable motor fuel, supplied by pipeline or marine vessel, that is registered as a qualified terminal by the internal revenue service;
    66. (66) “Terminal bulk transfer” means a transfer of petroleum products in any of the following instances:
      1. (A) Marine barge movements of fuel from a refinery or terminal to a refinery or terminal;
      2. (B) Pipeline movements of fuel from a refinery or terminal to a refinery or terminal;
      3. (C) Rail movements of fuel from a refinery or terminal to a refinery or terminal;
      4. (D) Book transfers of product within a terminal between suppliers prior to completion of removal across the rack; or
      5. (E) Two-party exchanges between licensed suppliers within a terminal;
    67. (67)
      1. (A) “Terminal operator” means a person that:
        1. (i) Owns, operates, or otherwise controls a terminal; and
        2. (ii) Does not use a substantial portion of the taxable motor fuel that is transferred through or stored in the terminal for its own use, i.e., for its own consumption or in the manufacture of products other than motor fuel;
      2. (B) A terminal operator may own the taxable motor fuel that is transferred through or stored in the terminal;
    68. (68) “Transmix” means the buffer or interface between two (2) different products in a pipeline shipment, or a mix of two (2) different products within a refinery or terminal that results in an off-grade mixture;
    69. (69) “Transport truck” means a semi-trailer combination rig or tank wagon designed or used for the purpose of transporting petroleum products over the highways;
    70. (70) “Transporter” means any operator of a pipeline, barge, railroad or transport truck engaged in the business of transporting petroleum products;
    71. (71) “Two-party exchange” means a transaction in which a petroleum product is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier pursuant to an exchange agreement:
      1. (A) Which transaction includes a transfer from the person that holds the inventory position for taxable motor fuel in the terminal as reflected on the records of the terminal operator; and
      2. (B) The exchange transaction is completed prior to removal of the product from the terminal by the receiving exchange partner;
    72. (72) “Undyed diesel fuel” means diesel fuel not dyed under United States environmental protection agency rules for high sulfur diesel fuel nor dyed under internal revenue service rules for low sulphur fuel, nor pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service;
    73. (73) “Vehicle fuel supply tank” means any receptacle on a motor vehicle designed to supply fuel for the propulsion of the motor vehicle or from which fuel is supplied for the propulsion of the motor vehicle;
    74. (74) “Vessel” means a barge or other marine conveyance used to transport petroleum products in bulk; and
    75. (75) “Wholesaler” means a person who acquires petroleum products from a supplier, importer or from another wholesaler, for subsequent sale and distribution at wholesale by tank cars, transport trucks or vessels.
Backlinks (3)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1203
  • Acts 2007, ch. 580, § 1.
Part 2 Imposition of Taxes and Fees
§ 67-3-201. Gasoline tax.
  1. (a) Subject to exemptions provided in part 4 of this chapter, a privilege tax is imposed upon all gasoline, fuel alcohol and substitutes therefor, imported into the state; the tax being levied when the product first comes to rest in the state. The tax shall also be imposed on all gasoline or substitutes therefor refined, manufactured, produced, or compounded in this state, and thereafter sold, stored or distributed in this state. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter. The rate of the tax imposed by this section shall be:
    1. (1) On or after July 1, 2017, through June 30, 2018, twenty-four cents (24¢) per gallon;
    2. (2) On or after July 1, 2018, through June 30, 2019, twenty-five cents (25¢) per gallon; and
    3. (3) On or after July 1, 2019, twenty-six cents (26¢) per gallon.
  2. (b) No fuel shall be included in the measure of the tax liability under this section unless it shall have previously come to rest within the meaning of the commerce clause of the Constitution of the United States.
Backlinks (22)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1301
  • Acts 2017, ch. 181, § 16.
§ 67-3-202. Diesel tax.
  1. (a) Subject to exemptions provided in part 4 of this chapter, and except as provided in subsection (c), a use tax is imposed upon all diesel fuel and all fuel other than gasoline that is suitable for use in a diesel-powered vehicle or that is used or consumed in this state to produce power for propelling motor vehicles; it being the purpose and intent of this section that the taxes being levied on taxable motor fuels under this chapter are in fact a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the state for the collection of such tax. The rate of the tax imposed by this section shall be:
    1. (1) On or after July 1, 2017, through June 30, 2018, twenty-one cents (21¢) per gallon;
    2. (2) On or after July 1, 2018, through June 30, 2019, twenty-four cents (24¢) per gallon; and
    3. (3) On or after July 1, 2019, twenty-seven cents (27¢) per gallon.
  2. (b) The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
  3. (c) Notwithstanding subsection (a), diesel fuel that is indelibly dyed in accordance with internal revenue service regulations and is legal for exempt use only shall not be considered subject to the diesel tax imposed under this section, except when used by a commercial carrier to produce power for a means of transportation, as defined in the Transportation Fuel Equity Act, compiled in part 14 of this chapter, in which case a use tax of seventeen cents (17¢) per gallon is imposed on such fuel.
Backlinks (22)
History (4)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1302
  • Acts 2014, ch. 908, § 1
  • 2017, ch. 181, §§ 17, 18.
§ 67-3-203. Special privilege tax.
  1. Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on motor fuels in §§ 67-3-201 and 67-3-202, a special privilege tax of one cent (1¢) per gallon is imposed on all petroleum products. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
Backlinks (16)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1303.
§ 67-3-204. Environmental assurance fee.
  1. Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on petroleum products in §§ 67-3-201 — 67-3-203, an environmental assurance fee as provided in § 68-215-110 is imposed on all petroleum products. The fee imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
Backlinks (13)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1304.
§ 67-3-205. Export tax.
  1. An export tax of one-twentieth of one cent (⁄ of 1¢) per gallon is levied upon all of the petroleum products, subject to the special privilege tax provided at § 67-3-203, which are stored in this state, or have come to rest after shipment in interstate commerce and are stored in this state, and are subsequently exported to points outside of this state. If with respect to these petroleum products the special privilege tax has already been paid, then nineteen-twentieths (⁄) of the special privilege tax may be credited on a monthly return, or in the alternative, refunded.
Backlinks (9)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1305.
§ 67-3-206. Maintenance of funding under highway trust fund.
  1. Notwithstanding any law to the contrary, if the federal government reduces or eliminates any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title of the federal highway trust fund (26 U.S.C. § 9501 et seq.), the existing state tax imposed on the sale and/or use of such products shall be adjusted so as to maintain the amount of funding for the Tennessee department of transportation generated by the federal tax. The adjustment in the state tax shall become effective simultaneously with the reduction in the federal tax. The department of revenue is directed to collect such taxes and allocate such taxes in their entirety, less the appropriate cost of administration, to the state highway trust fund for use by the department of transportation. If the federal government elects to increase any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title to the federal highway trust fund after it has reduced or eliminated such taxes, the state tax on the sale and/or use of such products is reduced equal to the amount of the increase by the federal government. No amounts of revenue received pursuant to this section shall be pledged specifically to the payment of debt service on any state bond or note.
History (5)
  • Acts 1997, ch. 323, § 1
  • T.C.A., § 67-3-1306
  • Acts 2006, ch. 1019, § 58
  • 2008, ch. 1106, § 40
  • 2013, ch. 164, § 4.
Part 3 Measurement of Tax
§ 67-3-301. Measurement of gasoline tax.
  1. The tax imposed by § 67-3-201 on taxable gallons imported into this state by a licensed importer shall be measured and levied at the time the product first comes to rest in this state. On a product refined, produced, or compounded in this state, the tax shall be measured and levied on any finished product when first placed into storage for sale or use. For a product removed from a qualified terminal or refinery outside this state, destined for this state under a tax precollection election provided in § 67-3-503, the tax shall be measured and levied at the time the product is removed across the terminal rack of such out-of-state facility, as if the product were imported and came to rest in this state.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1401.
§ 67-3-302. Measurement of diesel tax.
  1. (a) The tax imposed by § 67-3-202 shall be measured by taxable gallons removed, other than through a bulk transfer, by a licensed supplier:
    1. (1) From the bulk transfer/terminal system or from a qualified terminal or refinery within this state;
    2. (2) From the bulk transfer/terminal system or from a qualified terminal or refinery outside this state for delivery to a location in this state as represented on the shipping papers; provided, that the supplier imports such taxable motor fuel for the supplier's own account, or such supplier has made a tax precollection election under § 67-3-503;
    3. (3) Upon sale in a qualified terminal or refinery in this state to an unlicensed supplier; or
    4. (4) In other cases in the same manner as the tax imposed by § 4081 of the Internal Revenue Code of 1986 (26 U.S.C. § 4081) or the Code of Federal Regulations.
  2. (b) With respect to the operator of a terminal in this state, the tax imposed by § 67-3-202 shall be measured and levied annually on taxable motor fuel by the amount by which net gallons lost or unaccounted for, including transmix, within the terminal exceed the sum of net gallon gains, plus one-half of one percent (0.5%) times the number of all net gallons removed from such terminal across the rack or in bulk.
    Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1402.
§ 67-3-303. Measurement of special privilege tax and environmental assurance fee.
  1. (a) The tax imposed by § 67-3-203 and the fee imposed by § 67-3-204 on petroleum products shall be measured by gallons of petroleum products removed, other than through a bulk transfer, by a licensed supplier:
    1. (1) From the bulk transfer/terminal system or from a qualified terminal or refinery within this state;
    2. (2) From the bulk transfer/terminal system or from a qualified terminal or refinery outside this state for delivery to a location in this state as represented on the shipping papers; provided, that the supplier imports such taxable petroleum products for the supplier's own account, or such supplier has made a tax precollection election under § 67-3-503;
    3. (3) Upon sale in qualified terminal or refinery in this state to an unlicensed supplier; or
    4. (4) In other cases in the same manner as the tax imposed by § 4081 of the Internal Revenue Code of 1986 (26 U.S.C. § 4081) or the Code of Federal Regulations.
  2. (b) Anything to the contrary notwithstanding, the special privilege tax and the environmental assurance fee on gasoline shall be measured and levied at the time the product first comes to rest in this state.
  3. (c) With respect to the operator of a terminal in this state, the tax imposed by § 67-3-203 and the fee imposed by § 67-3-204, shall be measured and levied annually on petroleum products other than gasoline by the amount by which net gallons lost or unaccounted for, including transmix, within the terminal exceed the sum of net gallon gains, plus one-half of one percent (0.5%) times the number of all net gallons removed from such terminal across the rack or in bulk.
    Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1403.
§ 67-3-304. Measurement of floorstock tax.
  1. (a) The taxes and fees imposed by §§ 67-3-202 — 67-3-204, on the date of an increase in the tax rate, shall be applicable to previously taxed petroleum products in inventory held for sale by a wholesaler.
  2. (b) The tax imposed by § 67-3-201, on the date of an increase in the tax rate, shall be applicable to previously taxed gasoline in inventory held by a supplier, bonded importer, importer or wholesaler, except inventory held at retail.
  3. (c) The tax imposed by § 67-3-202 shall be applicable to all nonexempt inventory held by any person outside of the bulk transfer/terminal system in this state to the extent such inventory has not previously been subject to the tax imposed by this state under the predecessor motor fuel tax statute; provided, that no tax shall be payable with respect to dyed diesel fuel or fuel held by an exempt user, including governmental agencies described under § 67-3-401.
  4. (d) Persons in possession of taxable petroleum products subject to this section shall take an inventory at the start of business on the date that the increased tax rate becomes effective and on January 1, 1998, to determine the gallons in storage for purposes of determining the taxes and/or fees; provided, that in determining the amount of taxable petroleum products taxes and fees due under this section:
    1. (1) The person may exclude the amount of taxable petroleum products in dead storage;
    2. (2) For the inventory taken on January 1, 1998, the person may exclude gallons on which taxes and fees at the full rate have previously been paid;
    3. (3) The person may exclude gallons of dyed diesel fuel from the tax imposed by § 67-3-202 only; and
    4. (4) The person shall report the gallons listed in this section on forms provided by the commissioner.
      Backlinks (1)
    Backlinks (3)
  5. (e) Where gallons in taxable inventory have not previously been subject to the predecessor motor fuel tax statute, the amount of the inventory tax is equal to the tax rate times the gallons in storage, as determined under subsection (c). In the case of an increase in the tax rate, the inventory tax is equal to the new tax rate minus the previous tax rate times the number of gallons previously taxed.
  6. (f) Payment of this floorstock tax shall be made in accordance with § 67-3-511.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1404.
Part 4 Exemptions and Refunds
§ 67-3-401. Governmental agency exemption.
  1. (a) There shall be exempted from the taxes and fees imposed in part 2 of this chapter any governmental agency that holds an active exemption permit issued by the department.
  2. (b) Each governmental agency making purchases of petroleum products shall, prior to the purchase of such products, acquire a valid exemption permit issued by the commissioner. The exemption permit shall be numbered and shall entitle such governmental agency to purchase petroleum products tax exempt for a period of four (4) years from the date of issuance. The permittee shall make application for renewal prior to the expiration of the permit.
  3. (c) If any governmental agency, to which an exemption permit has been issued, loses its status as a governmental agency during the effective period of any such permit, the permit shall be void and shall be immediately surrendered to the department.
  4. (d) In order to be entitled to the exemption, the governmental agency shall receive, store, handle and use the petroleum products strictly in the following manner:
    1. (1) Purchase only from a licensed importer, supplier, or wholesaler;
    2. (2) Store in a storage facility either owned or leased by such agency. In the event the facility is leased, it shall be separate and apart from the commercial storage facilities of any motor fuel vendor, and the storage facility must be kept under the exclusive control of the governmental agency at all times. In order for the leased facility to comply with this subsection (d), a copy of the lease must be filed with and approved by the commissioner;
    3. (3) Remove from the storage facility in equipment either owned or leased by the governmental agency; and
    4. (4) Use exclusively for governmental purposes, in equipment either owned or leased by the governmental agency and operated by governmental employees.
  5. (e) It is unlawful for any person to use petroleum products sold to a governmental agency for any purpose other than governmental.
  6. (f) For the purposes of this part only, a motor vehicle used exclusively in a driver education program approved by the state board of education shall be considered to have met the requirements of subdivision (d)(4).
  7. (g) For the purposes of this part only:
    1. (1) A motor vehicle used exclusively for the purpose of providing mass transportation services, paratransit service to or for the benefit of persons who are elderly or have a disability, or other specialized mass transportation services of a public transportation system or transit authority organized and existing under and by virtue of title 7, chapter 56, and operated by nongovernmental employees, shall be considered to have met the requirements of subdivision (d)(4); and
    2. (2) Petroleum products stored by the governmental agency in a storage facility or tank leased by the governmental agency on the premises of a person providing the transportation services referred to in subdivision (g)(1), pursuant to contract with such public transportation system or transit authority, shall be considered to have met the requirements of subdivision (d)(2); provided, that such leased storage facility or tank shall be separate and apart from the other commercial storage facilities and tanks on the premises, and the leased storage facility or tank must be kept and maintained for the exclusive use and storage of petroleum products stored by the governmental agency for operation of such mass transportation services, paratransit service to or for the benefit of persons who are elderly or have a disability, or other specialized mass transportation services at all times, and for no other purpose.
  8. (h) An independent contractor operating a local transit company and providing local transit services is exempt from the petroleum products taxes and fees imposed in part 2 of this chapter, subject to the same restrictions imposed on governmental agencies under this part.
  9. (i) In lieu of the provisions set out in subdivision (d)(2), petroleum products may be delivered to a governmental agency through a customer-controlled pump. A licensed wholesaler may locate such pump or pumps at a location other than the wholesaler's primary storage location. A customer-controlled pump shall not be located on any retail station island. Such pump or pumps must be connected to a storage tank whose inventory is owned by the licensed wholesaler. Any licensed wholesaler found violating any statute or any rule promulgated by the commissioner relating to a customer-controlled pump shall lose the right to sell from a customer-controlled pump for a period of not less than two (2) years, and shall be subject to all other penalties set forth in the law. A person associated with a retail station shall neither take part in the dispensing or sale of petroleum products from such pumps, nor shall such person possess any key that will activate any meter that may be used for dispensing such products. A customer-controlled pump shall have the ability to identify each customer separately and only that customer shall be allowed to purchase petroleum products through that identity at the pump. One (1) invoice exclusively for sales from a customer-controlled pump shall be issued on the last day of any month in which a tax refund on sales to governmental agencies is claimed. Such invoice shall clearly identify itself as an invoice solely for sales through a customer-controlled pump.
    Backlinks (1)
  10. (j) Notwithstanding any other provision of this part to the contrary, a governmental agency may purchase petroleum products from retail stations free of the taxes imposed in §§ 67-3-201 — 67-3-203, and free of the fee imposed in § 67-3-204. Such purchases may only be made through a fleet credit card or an oil company credit card which has been issued by the oil company to a governmental agency which holds an exemption permit issued by the commissioner pursuant to this part.
  11. (k) Any governmental agency using, storing, distributing or selling petroleum products in any manner except strictly in accordance with this part:
    1. (1) Shall be liable for the state petroleum products taxes and fees imposed in part 2 of this chapter. In the event of such liability, the taxes and fees shall be collected in the manner otherwise provided by law; and
    2. (2) Shall be subject to revocation of its governmental agency exemption permit.
Backlinks (1)
History (5)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1501
  • Acts 2003, ch. 418, § 5
  • 2011, ch. 47, § 73
  • 2016, ch. 646, §§ 2, 3.
§ 67-3-402. Consumer imports exemption.
  1. There shall be exempt from the taxes and fees imposed in part 2 of this chapter, taxable motor fuel acquired by an end user out of state, carried into this state in a vehicle fuel supply tank, and consumed from the same tank in which it was imported.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1502.
§ 67-3-403. Industrial chemicals and solvents exemption.
  1. Industrial chemicals or solvents classified as volatile substances shall not be subject to the taxes or fees imposed in part 2 of this chapter when these industrial chemicals or solvents are neither intended for use nor used as fuels.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1503.
§ 67-3-404. Export exemption.
  1. There shall be exempt from nineteen-twentieths (⁄) of the special privilege tax imposed by § 67-3-203, and from all other taxes and fees imposed in part 2 of this chapter, the following:
    1. (1) All bulk exports of petroleum products; and
    2. (2) All exports of petroleum products within the vehicle fuel supply tanks of locomotives and airplanes.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1504.
§ 67-3-405. Suppliers export exemption.
  1. There shall be exempt from the taxes and fees imposed in part 2 of this chapter, with the exception of the export tax imposed by § 67-3-205, taxable petroleum products:
    1. (1) Exported by a supplier; or
    2. (2) Sold by a supplier to a person, who is licensed in this state, for immediate export to a state for which the destination state motor fuel tax has been paid to the supplier;
    3. provided, that the supplier shall be licensed to remit tax to such destination state, and that the supplier shall maintain for inspection by the department satisfactory proof of export in the form of a terminal-issued, destination state shipping paper.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1505.
§ 67-3-406. Refund on exports by licensed exporter.
  1. A licensed exporter shall be entitled to a refund of the taxes and fees previously paid on taxable petroleum products pursuant to part 2 of this chapter, with the exception of the export tax imposed by § 67-3-205, in the following instances:
    1. (1) Where petroleum products were placed into storage in this state and were subsequently exported by transport truck or tank wagon by or on behalf of such licensed exporter; or
    2. (2) Where petroleum products were exported by transport truck or tank wagon by or on behalf of such exporter in a diversion across state boundaries properly reported in conformity with § 67-3-806.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1506.
§ 67-3-407. Refund on exports by unlicensed exporter.
  1. An unlicensed exporter shall be entitled to a refund of the taxes and fees previously paid pursuant to part 2 of this chapter, with the exception of the export tax imposed by § 67-3-205, on taxable petroleum products that were acquired by the unlicensed exporter and subsequently exported by transport truck or tank wagon by or on behalf of such exporter.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1507.
§ 67-3-408. Kerosene exemption.
  1. There shall be exempt from the tax imposed in § 67-3-202 all kerosene sold or used in the state for purposes other than in any motor vehicle or equipment operated on the public highways of this state. This includes K-1 kerosene sold at retail through dispensers that have been designed and constructed to prevent delivery directly from the dispenser into a vehicle fuel supply tank, and K-1 kerosene sold at retail through nonbarricaded dispensers in quantities of not more than twenty-one gallons (21 gals.) for use other than for highway purposes, under such rules as the department shall reasonably require. Quantities sold at retail stations, other than stated above, are subject to the diesel tax imposed in § 67-3-202.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1508.
§ 67-3-409. Aviation fuel exemption.
  1. There shall be exempt from the taxes imposed in §§ 67-3-201 and 67-3-202 taxable motor fuel sold for use in aircraft; provided, that the buyer must be registered to purchase jet fuel subject to federal taxes applicable to jet fuel, and the vendor must obtain certification of such fact satisfactory to the department prior to making the sale.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1509.
§ 67-3-410. Refinery exemptions.
  1. (a) None of the laws relating to the inspection of petroleum products as set forth in §§ 60-3-103 — 60-3-114, or the taxes and fees imposed by this chapter upon petroleum products, shall be applicable or collectible in the following cases:
    1. (1) Upon any of the products while being transported from, inside or outside the state to a petroleum refinery inside the state, for the purpose of there being refined, further refined or processed;
    2. (2) Upon any of the products while being refined, further refined, processed or stored at a petroleum refinery inside this state. Refinery exemptions are applicable to all petroleum activities, exchanges and transactions that are customarily performed by or engaged in by a refinery, but specifically excluded are exemptions applicable to the storage of petroleum or petroleum products for others, whether by lease or otherwise;
    3. (3) Upon any of the products while being transported from a refinery inside this state to another petroleum refinery inside this state; and
    4. (4) Upon any of the products while being transported from a petroleum refinery inside this state to a place outside this state, excluding commercial marine vessels, even though delivery is made in midstream of waterways constituting geographical boundaries of this state. For any product transported from refinery storage via marine vessel as an export, but in fact coming to rest at a nonexempt destination in this state, for which the taxes and fees are not reported and paid by a bonded importer, the refinery shall bear responsibility to this state for the payment of taxes, fees, and applicable interest and penalty.
  2. (b) All refinery exemptions granted to petroleum refineries shall apply to refiners or manufacturers of fuel alcohol who have a refinery or a manufacturing facility in Tennessee.
  3. (c) Where gasoline is exchanged or sold within the bulk transfer/terminal system between refiners who hold a bonded importer's license, the first transferee, after the gasoline is imported into this state, shall be primarily liable for the taxes and fees that have accrued pursuant to §§ 67-3-201, 67-3-203 and 67-3-204. With respect to a refinery, gasoline may be exchanged or sold tax free by a refinery within refinery-held storage; however, the transferee shall be liable for taxes and fees on gasoline that crosses the terminal rack; provided, that the refinery is responsible for the taxes and fees on gasoline that crosses the terminal rack that is not otherwise exchanged or sold within the refinery.
  4. (d) For the purposes of the exemptions provided by this section, an entity, other than a retailer, affiliated with an entity which owns a refinery located in this state, shall be treated as the refinery and shall not be considered as the transferee. As used in this subsection (d), entities are affiliated with one another, if either, directly or indirectly wholly owns the other, or if the entities are directly or indirectly, wholly owned by a common parent.
History (3)
  • Acts 1997, ch. 316, § 1
  • 1999, ch. 419, § 1
  • T.C.A., § 67-3-1510.
§ 67-3-411. Agricultural use refunds — Gasoline.
  1. (a) Any person who shall use any taxable gasoline for agricultural purposes as defined in part 1 of this chapter on which the gasoline tax has been paid shall be entitled to a refund of the gasoline tax except one cent (1¢) per gallon; but there shall be no refund of the special privilege tax on gasoline imposed under § 67-3-203 or the environmental assurance fee on gasoline imposed under § 67-3-204.
  2. (b) No refund under this section shall be authorized, unless:
    1. (1) A claim is submitted containing a declaration that it is made under the penalty of perjury and also containing all of the information that the commissioner may require, and filed with the commissioner either semiannually or annually, on or before April 15 and October 15 following the end of each semiannual period ending on the immediately preceding December 31 and June 30 respectively, or on April 15 of the following year if filed annually;
    2. (2) Each purchase made is of fifty gallons (50 gals.) or more; and
    3. (3) The amount of the refund payable is twenty-five dollars ($25.00) or more for any one (1) claim period.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1511.
§ 67-3-412. Refunds — Exports.
  1. (a) For petroleum products exported to points outside the state for resale, to obtain a refund, a claim for refund must be filed with the department within three (3) years from December 31 of the year in which the export activity occurred. The claimant is entitled to recover all taxes and fees paid as levied in part 2 of this chapter, excepting the export tax imposed by § 67-3-205. Bonded importers and suppliers, instead of filing a claim, may seek credit on the distributor report; provided, that the credit is supported by automated, terminal-issued shipping papers establishing intent to export. The bonded importer or supplier may take credit for a sale to an export customer where that customer is charged the destination state's tax; provided, that the customer is a licensed exporter in Tennessee.
  2. (b) For diesel fuel that is exported to points outside the state, in vehicle fuel supply tanks of diesel locomotives or marine tows, where such is consumed in such locomotives or marine tows outside the state, the user may apply for refund of the special privilege tax imposed by § 67-3-203, less the export tax imposed by § 67-3-205, and may apply for refund of the environmental assurance fee, imposed by § 67-3-204, by submitting a claim for refund within ninety (90) days of the last day of the month in which the export was made. If a credit is being claimed for such products exported for consumption, it shall be claimed on a report filed within the same ninety-day period.
  3. (c) For aviation fuels that are exported to points outside the state, including aviation gasoline and jet fuel that is stored in the state, but is carried outside the state in the vehicle fuel supply tanks of airplanes owned or leased by commercial air carriers, for consumption in such airplanes outside the state, such user may apply for refund of the special privilege tax less the export tax, and may apply for refund of the environmental assurance fee, using the same procedure and time requirements as set forth in subsection (b).
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1512.
§ 67-3-413. Refunds — Governmental — Refund claim filing by vendor.
  1. (a)
    1. (1) A licensed wholesaler who has paid any taxes and fees due under §§ 67-3-201 — 67-3-204, may apply for a refund of taxes or fees paid on any petroleum products subsequently sold free of tax to a governmental agency holding an exemption permit issued by the commissioner. A licensed supplier or importer may claim a credit on the distributor report for any taxes or fees paid on any petroleum products sold free of tax to a governmental agency, or may in the alternative file for a refund.
    2. (2) For sales of petroleum products made to governmental agencies from retail stations, the licensed wholesaler, supplier or importer may apply for refund or claim a credit on behalf of a retail vendor.
  2. (b)
    1. (1) An application for refund or credit shall be filed with the commissioner, on forms prescribed by the commissioner, on or before the last day of the second month following the month in which the exempt sales were made. All sales in any month on which a refund is due shall be included in one (1) application for refund.
    2. (2) After January 1 and no later than June 30 of any year, a licensed wholesaler, importer or supplier may apply for refund under subsection (a) for any exempt sales made during the previous calendar year on which a claim for refund has not previously been made. Only one (1) such omnibus claim shall be permitted. Such an omnibus claim is designed to allow claimants to secure refunds on items previously omitted on claims filed under subdivision (b)(1). No extension of time to file this omnibus claim shall be allowed.
  3. (c) Applications for refund or credit shall contain all information as required by the commissioner. In addition, all applications must be accompanied by copies of all invoices for sales on which the licensee is applying for refund or claiming a credit. The invoices submitted with any such application shall each contain the exemption permit number for the governmental agency to which the sales were made. The commissioner may allow computer documentation instead of invoices.
  4. (d)
    1. (1) Any application for refund submitted to the department that does not comply with any of the provisions set out in subsections (b) and (c) shall not be approved and a refund shall not be granted.
    2. (2) Licensed wholesalers, importers or suppliers shall not be entitled to a refund on sales made to any person who does not hold a valid governmental agency exemption permit at the time of such sale.
  5. (e) Applications for refund made pursuant to this section shall not be subject to § 67-1-707.
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1513
  • Acts 2016, ch. 646, § 1.
§ 67-3-414. Refunds — Auxiliary engines.
  1. (a) Any person using gasoline or undyed diesel fuel for truck refrigeration or cement mixing, where the gasoline or undyed diesel fuel is delivered into a container or fuel tank that is equipped or designed to supply only the internal combustion engine used exclusively for truck refrigeration or cement mixing, and where tax has been paid, shall be entitled to a refund of the tax imposed under §§ 67-3-201 and 67-3-202 except one cent (1¢) per gallon.
  2. (b) Any person using fuel for the generation of power to operate a mobile self-propelled rock drill; a motor vehicle and an auxiliary unit used for concrete mixing; for boom, pneumatic, or pump unloading; on which the gasoline tax or diesel tax has been paid, or on which the tax is payable by a limited user, shall be entitled to a refund, or a reduction of taxes imposed according to the following formula:
    1. (1) For concrete mixers and concrete pumpers, forty percent (40%) of the tax;
    2. (2) For pneumatic unloaders, ten percent (10%) of the tax;
    3. (3) For boom unloaders, ten percent (10%) of the tax;
    4. (4) For pump unloaders, the tax on two and one-half gallons (2.5 gals.) for each unloading where the pump is actually used; and
    5. (5) For mobile self-propelled rock drills, ninety percent (90%) of the tax.
  3. (c) No refund shall be authorized unless an application, executed under penalty of perjury and containing such information as the commissioner may require, is filed with the commissioner. No refund shall be authorized unless the amount due in refund is fifty dollars ($50.00) or more in a semiannual period. Refund applications must be filed semiannually and within ninety (90) days following the end of June and December of the semiannual period in which the fuel was used.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1514.
§ 67-3-415. Refunds — Contaminated fuels.
  1. Where taxable diesel fuel has been accidentally contaminated by dye, the owner of the product may file a claim for refund for the diesel tax paid on the undyed fuel.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1515.
§ 67-3-416. Refunds — Casualty losses.
  1. A refund of the tax imposed by §§ 67-3-201 and 67-3-202 covering loss of gallonage due to fire, flood, storm, theft or other causes over which a vendor has no control will be made if the loss is reported to the commissioner within three (3) business days of the date of the loss, except that losses not exceeding one thousand gallons (1,000 gals.) need not be reported. With respect to all losses, the vendor shall file with the commissioner a written claim and statement explaining the occurrence of the loss within sixty (60) days of the time of loss. Negligence or any unlawful act, such as overloading a transport vehicle, excessive speed or other like act by a vendor or such vendor's agent, that is contributory to a loss, shall invalidate the claim.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1516.
§ 67-3-417. Refunds — Fabricating user.
  1. The special privilege tax imposed by § 67-3-203 shall be refundable to the user of such petroleum products as are shown to be used directly in fabricating or processing tangible personal property for resale. There is expressly excluded from this section any use for the purpose of space heating, illumination, or the operation of internal combustion engines. The refund may be claimed on a monthly basis before the expiration of thirty (30) days following the month for which such refund is to be made.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1517.
§ 67-3-418. Refunds — End user — Off highway.
  1. When an end user uses undyed diesel fuel as heating oil or for other nonhighway purposes, the end user may apply for a refund of the diesel tax imposed by § 67-3-202. The end user shall not be entitled to a refund, if the end user is a commercial carrier who used the undyed diesel fuel to produce power for a means of transportation or if any other law precludes the end user from applying for a refund. The claim for refund for the diesel tax may be filed at the end of each calendar quarter but no later than one (1) year from the date of last purchase represented in the claim. The minimum amount of such claim is two hundred fifty dollars ($250). Supporting documentation shall be submitted with the claim as the commissioner may require. If the minimum is not met in one (1) quarter then it can be attached to and used in subsequent quarters, but not to exceed two (2) years.
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1518
  • Acts 2014, ch. 908, § 2.
§ 67-3-419. Exemption for methanol sold for use in highway or nonhighway vehicles.
  1. There shall be exempt from the taxes imposed in §§ 67-3-201 and 67-3-202 and by chapter 6 of this title methanol sold for use in highway or nonhighway vehicles that is not composed of or blended with gasoline, diesel fuel, or other fuels or petroleum products.
History (1)
  • Acts 2018, ch. 924, § 1.
§ 67-3-420. Refunds — Wholesaler sales to limited users and prepaid users.
  1. (a) A licensed wholesaler who sells tax-paid motor fuel to a limited user or a prepaid user as defined in § 67-3-1302 shall be entitled to a refund of the tax paid pursuant to § 67-3-202. Any claim for refund filed with the commissioner must be supported by documentation that sets forth the name, address, account number and federal employer identification number or social security number of the customer, together with the invoice or delivery ticket number and number of gallons sold. The claimant may file one (1) claim each month and otherwise be subject to the statute of limitations provided in § 67-3-421.
  2. (b) The licensed wholesaler's entitlement to a refund is not affected by the status of the customer's limited user permit or prepaid user authorization, unless the wholesaler knows, has been notified by the department, or in the exercise of reasonable care should know, that the customer is not entitled to use the permit or authorization with respect to a particular purchase of fuel.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1520.
§ 67-3-421. Refund claim procedures generally.
  1. (a) To claim a refund under this part, a person must present to the department a statement that contains a written verification that the claim is made under penalty of perjury and lists the total amount of taxable petroleum products subject to refund. The claim must be filed not more than three (3) years after the date the taxable petroleum products were purchased by the claimant; however, this statute of limitations shall not prevail if a statute of limitations already exists for a particular refund provision. The statement must show that payment for the purchase has been made and the amount of taxes and fees paid on the purchase have been remitted.
  2. (b) The commissioner has the authority to require the claimant to provide adequate documentation to support the claim. The department may make any investigations it considers necessary before refunding the taxes or fees to a person and in any case may investigate a refund after the refund has been issued and within the time frame for making adjustments to tax under this title.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1521.
§ 67-3-422. Refunds — Manufacturers of premixed engine fuel.
  1. (a) Any manufacturer who shall use any taxable gasoline, on which the gasoline tax has been paid, in the manufacture of a premixed engine fuel containing gasoline and oil, sold in containers of one gallon (1 gal.) or less and produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or other vehicle, shall be entitled to a refund of gasoline tax paid under § 67-3-201 except one cent (1¢) per gallon; but there shall be no refund of the special privilege tax on gasoline imposed under § 67-3-203 or the environmental assurance fee on gasoline imposed under § 67-3-204.
  2. (b) The claim for refund filed pursuant to this section may be filed at the end of each calendar quarter but no later than one (1) year from the date of the last purchase represented in the claim. The minimum amount of such claim is two hundred fifty dollars ($250). Supporting documentation shall be submitted with the claim as the commissioner may require. If the minimum is not met in one (1) quarter, then the claim amount can be carried over to and used in subsequent quarters, but not for longer than a total period of two (2) years.
History (2)
  • Acts 1998, ch. 694, § 1
  • T.C.A., § 67-3-1522.
Part 5 Payment of Tax
§ 67-3-501. Payment by permissive supplier.
  1. Except as otherwise provided in this part, the taxes imposed by §§ 67-3-201 — 67-3-203, and the fee imposed by § 67-3-204, on taxable petroleum products measured by gallons removed from the terminal rack, shall be paid by the licensed permissive supplier, if the supplier has entered into a blanket precollection election as provided in § 67-3-503, or if the supplier has entered into an agreement with a customer whereby Tennessee petroleum products taxes and fees are levied on the sale of fuel to that customer. The taxes and fees are due on or before the twentieth day of the month following the month of removal, unless such day falls on a weekend or state or banking holiday, in which case the taxes and fees are due the next succeeding business day.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1601.
§ 67-3-502. Payment by bonded importer.
  1. Except as otherwise provided in this part, the taxes and fees imposed by part 2 of this chapter on taxable petroleum products measured by gallons imported from another state shall be paid by the licensed bonded importer who has imported such products. The taxes and fees shall be paid on or before the twentieth day of the month following the month of import, unless such day falls on a weekend or state or banking holiday, in which case the taxes and fees are due the next succeeding business day. However, if the supplier has made a blanket election to precollect tax under § 67-3-503, the supplier is jointly and severally liable with the bonded importer for the taxes and fees, and shall remit to the department on behalf of the bonded importer under the same terms as a supplier payment under § 67-3-504.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1602.
§ 67-3-503. Blanket precollection election for imports.
  1. (a) A licensed supplier or licensed permissive supplier may make a blanket election with the department to treat all removals of petroleum products from its out-of-state terminals, with a destination in this state shown on the terminal issued shipping paper, as if such removals of gasoline were imported and came to rest in Tennessee, and removals of petroleum products other than gasoline were removed across the terminal rack in this state, for taxation purposes under part 2 of this chapter.
  2. (b) This notice of election shall be made on forms provided by the department.
  3. (c) The department shall release a list of electing suppliers under subsection (b) upon request by any person. Disclosure of this information by the department shall not constitute a violation of any confidentiality requirement imposed by chapter 1, part 17 of this title.
  4. (d) The absence of an election by a supplier under this section shall not relieve the supplier of responsibility for remitting the taxes and fees imposed by this chapter. However, the responsibility of the supplier shall be limited to the supplier's own imports into this state.
  5. (e) Any supplier who makes the election provided by this section shall precollect the taxes and fees imposed by this chapter on all removals from a qualified out-of-state terminal on its account without regard to:
    1. (1) The license status of the person acquiring the petroleum product from such supplier;
    2. (2) The point or terms of sale; or
    3. (3) The character of delivery.
  6. (f) Each supplier who elects to precollect taxes and fees under this section agrees to waive any defense that the state lacks jurisdiction to require collection on all out-of-state sales by such person, where such person had knowledge that such shipments were destined for this state. Such supplier also agrees to waive any defense to the state's assertion of its general police powers to regulate the movement of petroleum products.
Backlinks (8)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1603.
§ 67-3-504. Payment by supplier.
  1. (a) The taxes and fees on petroleum products imposed by §§ 67-3-202 — 67-3-205 shall be collected and remitted to the state by the supplier, as agent for the wholesaler who removes taxable gallons from the terminal racks. The supplier responsible for the tax payment and the wholesaler who removes the taxable fuel from the rack shall be identified in the terminal operator records.
  2. (b) The supplier who has out-of-state terminals and who has entered into a blanket precollection election under § 67-3-503 shall also remit gasoline tax imposed by § 67-3-201 on products originating at out-of-state terminals destined for Tennessee.
  3. (c) All taxes and fees accrued by the supplier with respect to gallons removed on such supplier's account during a calendar month shall be due and payable on or before the twentieth day of the month following the month of activity, unless such day falls on a weekend or state or banking holiday, in which case the taxes and fees are due the next succeeding business day.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1604.
§ 67-3-505. Terminal operator liability.
  1. (a) The terminal operator of a terminal in this state is jointly and severally liable for the taxes and fees imposed under §§ 67-3-202 — 67-3-204, and shall remit payment to the department upon discovery of either of the following conditions:
    1. (1) The supplier and/or bonded importer with respect to the taxable petroleum products is a person other than the terminal operator and is not licensed; provided, that the terminal operator shall be relieved of liability if the terminal operator establishes all of the following:
      1. (A) A valid terminal operator's license issued for the facility from which the petroleum product is withdrawn;
      2. (B) An unexpired notification certificate from the supplier as required by the department or the internal revenue service; and
      3. (C) No reason to believe that any information on the certificate is false; or
    2. (2) In connection with the removal of diesel fuel that is not dyed and marked in accordance with internal revenue service requirements, the terminal operator provides any person with a bill of lading, shipping paper, or similar document indicating that the diesel fuel is dyed and marked in accordance with internal revenue service requirements.
  2. (b) The terminal operator is jointly and severally liable for the taxes and fees imposed under §§ 67-3-202 — 67-3-204 that are not allocable to any licensed supplier, and shall remit the taxes and fees due with the annual report required under § 67-3-702(d); provided, that no taxes and fees shall be due if the terminal operator can establish by evidence acceptable to the commissioner that the gallons lost were diesel fuel dyed prior to receipt by that terminal operator. No collection allowance or deductions shall be allowed with respect to payment of these taxes. In the event the gallons lost or unaccounted for exceed five percent (5%) of the gallons removed from that terminal across the rack, a penalty of one hundred percent (100%) of the taxes and fees otherwise due shall be paid by the terminal operator with the taxes and fees due.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1605.
§ 67-3-506. Supplier to collect tax-deferred payment.
  1. (a) Each licensed supplier and bonded importer who sells taxable petroleum products shall collect from the purchaser the taxes and fees imposed in part 2 of this chapter.
  2. (b) At the election of a licensed wholesaler, the licensed supplier or bonded importer may not require payment of taxes and fees imposed in part 2 of this chapter from such wholesaler earlier than the second preceding day prior to the date on which the taxes and fees become finally due and payable to the state. This election shall be further subject to a condition that the supplier or importer may require the wholesaler to make remittances of all amounts of taxes and fees due by electronic funds transfer. The wholesaler's election under this subsection (b) may be terminated by the supplier or importer, if the wholesaler does not make timely payments to the supplier or importer as required by this subsection (b).
    Backlinks (3)
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1606.
§ 67-3-507. Bad debt allowance.
  1. (a) A licensed supplier or bonded importer is entitled to a credit, against taxes payable under this part, for any tax or fee not paid to the supplier or importer by a licensed wholesaler, who has made a valid election under § 67-3-506(b) and whose election, at the time of the delivery of product giving rise to the unpaid tax or fee, had not been terminated by the supplier or importer, by operation of subsection (c), or by the commissioner under subsection (d). The credit must be claimed on the return within sixty (60) days following the failure of the wholesaler to make the required payment to the supplier or importer.
  2. (b) Not later than fifteen (15) days after the earliest date on which the wholesaler that made the election provided for in § 67-3-506(b) was required to make the payment, the supplier or importer shall notify the department in writing of the default. The notice shall include the name of the defaulting wholesaler, the amount of the default, whether the supplier or importer has terminated the wholesaler's election, and the date of any termination.
  3. (c) If the wholesaler does not make payment to the supplier or importer within twenty (20) days of the original due date set out in § 67-3-506(b), the wholesaler's election, with respect to the supplier or importer suffering the default, is terminated as of the following day.
  4. (d) Upon notification from an importer or supplier to the department that a wholesaler has defaulted in payment, the commissioner may terminate the wholesaler's election with respect to all importers and suppliers and notify any and all importers and suppliers of such action.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1607.
§ 67-3-508. Collection administration allowance.
  1. To the extent a supplier, a permissive supplier, or a bonded importer timely remits taxes in accordance with this chapter, such person shall be allowed to retain one-tenth of one percent (0.1%) of the taxes imposed by §§ 67-3-201 and 67-3-202 to cover the costs of administration imposed by this chapter, including reporting, audit compliance, dye injection, and shipping paper preparation.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1608.
§ 67-3-509. Tare allowance.
  1. (a) A supplier, permissive supplier or bonded importer is entitled to an allowance covering loss of gallonage by evaporation, handling, unloading, shrinkage, and losses resulting from unknown causes, and as reimbursement for expenses incurred on behalf of the state in furnishing a bond, maintaining records, collecting taxes, and preparing reports and remittances in compliance with this part.
  2. (b) The allowance shall be an amount equivalent to one and five thousand four hundred fifteen ten-thousandths percent (1.5415%) of the amount of tax imposed by §§ 67-3-201 and 67-3-202 shown to be due on the monthly report filed with the commissioner. The allowance may be taken as a credit on the monthly report.
  3. (c) There shall be submitted with the report, in support of the deduction, the certificate of the supplier or bonded importer that, with respect to the gallonage sold or distributed within this state, during the period covered by the report, there was paid or credited to each wholesaler to whom any part of the gallonage was sold or distributed, an amount equivalent to one and five thousand four hundred fifteen ten thousandths percent (1.5415%) of the taxes applicable to the gallonage; and to each retailer to whom any part of the gallonage was sold or distributed, an amount equivalent to one-half of one percent (0.5%) of the taxes applicable to the gallonage. If a supplier has made a blanket election to precollect the tax under § 67-3-503 and remits the tax on behalf of a bonded importer, then the allowance shall be credited to the bonded importer. If it is determined that a supplier or bonded importer has not credited the proper allowance to another supplier or bonded importer or to the wholesaler or retailer, the tare allowance received by the supplier or importer shall be disallowed.
  4. (d) Any wholesaler who receives the allowance from a supplier or importer shall credit to the retailer an amount equivalent to one-half of one percent (0.5%) of the taxes applicable to the gallonage. If it is determined that a wholesaler has not credited to the retailer the proper allowance, the allowance received by the wholesaler will be disallowed.
  5. (e) Any person required to pay the taxes shall preserve and make available for inspection by a representative of the department all invoices and credit memoranda reflecting payments or credits to purchasers of the amounts of the allowance provided by this section. These records shall be preserved for a period of not less than three (3) years from December 31 of the year in which issued.
Backlinks (5)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1609.
§ 67-3-510. Backup payment by end user — Joint liability of ultimate vendor.
  1. (a) Backup taxes and fees equal to the taxes and fees imposed by part 2 of this chapter are imposed on the end user of taxable petroleum products, and shall be administered in accordance with regulations promulgated by the department. End users, including governmental agencies, the American Red Cross, bus operators, and any other person exempted from the full federal highway tax, unless such person is otherwise exempt under part 4 of this chapter, are liable for the taxes and fees upon the delivery into the fuel supply tank of a highway vehicle:
    1. (1) Any diesel fuel that contains a dye;
    2. (2) Any taxable petroleum products on which a claim for refund has been made; or
    3. (3) Any petroleum products on which taxes and fees have not previously been imposed by this chapter.
  2. (b) Where taxes and fees imposed by this chapter have not been paid, the wholesaler or end user of taxable petroleum products shall be jointly and severally liable for the backup taxes and fees imposed by subsection (a), if the wholesaler or user knows or has reason to know that the petroleum products are being or will be consumed in a nonexempt use.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1610.
§ 67-3-511. Payment of floorstock tax.
  1. (a) The floorstock tax report required by § 67-3-304(d)(4) shall be accompanied by payment of the floorstock tax calculated in accordance with § 67-3-304(d) and (e) and payment made on or before the due date of that report. The floorstock tax imposed on inventory held outside of the bulk transfer/terminal system on January 1, 1998, reportable under § 67-3-304 shall be payable in two (2) equal annual installments. The first installment shall be due on or before the twenty-fifth day of the month following the month in which this part becomes effective, and the second installment is due on the same date of the following year.
  2. (b) For any floorstock tax due following an increase in the tax rate on petroleum products, the floorstock tax imposed on inventory shall be payable within twenty-five (25) days of the end of the month in which the increase becomes effective.
  3. (c) A supplier, bonded importer, importer, or wholesaler shall, for increases in the gasoline tax, remit tax, pursuant to subsection (a) or (b), based upon all inventory as provided in § 67-3-304(d) held in storage at the start of business on the effective date of the increase. All inventory held at retail stations and by end users shall be exempt from this requirement.
  4. (d) A supplier, bonded importer, importer or wholesaler shall, for increases in the diesel tax, the special privilege tax or the environmental assurance fee, remit taxes and/or fees, pursuant to subsection (a) or (b), based upon all inventory as provided in § 67-3-304(d) held outside the bulk transport/terminal system at the start of business on the effective date of such increase. All inventory held at retail stations and by end users shall be exempt from this requirement.
  5. (e) Regardless of any § 67-3-509 allowance already taken with respect to this inventory, an additional § 67-3-509 allowance may be taken.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1611.
§ 67-3-512. Payment of taxes and fees by fuel blenders.
  1. Each person blending untaxed materials, including blendstocks and additives, with taxable petroleum products as to which taxes and fees have already been paid or accrued, shall remit the taxes and fees imposed by this chapter on the previously untaxed volumes. Should the blending process alter the specifications of the blended product according to American Society for Testing and Materials (ASTM) specifications, then applicable taxes and fees shall apply to the altered product.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1612.
§ 67-3-513. Tax on cross-border movements of petroleum products.
  1. (a) Holders of an exporter's license shall pay or accrue the destination state's tax, if any, to their suppliers. In the event that a licensed exporter diverts taxable petroleum products removed from a terminal in this state from an intended destination outside this state, as shown on the terminal issued shipping papers, to a destination inside this state, such exporter, in addition to compliance with the notification provided for by § 67-3-806, shall notify and pay the taxes and fees imposed under part 2 of this chapter to the department upon the same terms and conditions as if the exporter were a bonded importer without deduction for the allowances provided by §§ 67-3-508 and 67-3-509.
  2. (b) In the event that an exporter removes from a bulk plant in this state taxable petroleum products as to which the taxes and fees imposed by this chapter have previously been paid or accrued, such exporter may apply for and the state shall issue a refund of such taxes and fees, except the export tax, upon a showing of proof of export satisfactory to the department in conformity with § 67-3-802, net of the allowances provided by § 67-3-509.
  3. (c) All licensed importers shall otherwise report and pay the taxes and fees, in the manner provided by § 67-3-502, on diversions into this state of imported product; provided, that no § 67-3-509 allowances shall be deducted with respect to diverted shipments.
  4. (d) In the event of a legal diversion from a destination in this state to another state, § 67-3-804 shall apply, and an unlicensed exporter diverting the product shall first pay taxes and fees on the fuel before exporting such fuel, and may apply for a refund from this state for the taxes and fees paid, less the § 67-3-509 allowance.
  5. (e) In the event that a state involved in a cross-border shipment has entered into a multi-state compact with this state, the diverter shall pay or seek refund only upon the difference in state taxes with notice to both states upon proof shown of payment to the actual destination state. The department shall establish procedures for making this adjustment and prepare a list of those states that meet these criteria.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1613.
§ 67-3-514. Inclusion of taxes and fees in sales price.
  1. The taxes and fees imposed by this chapter on petroleum products shall be included in the sales price, for the purpose of determining sales price under the Retailers' Sales Tax Act, compiled in chapter 6 of this title, for calculating any applicable sales or use tax, even though the taxes and fees may be separately stated by the vendor.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1614.
§ 67-3-515. Payment by electronic funds transfer.
  1. (a) The commissioner may require the taxpayer to make payments as provided in this part by means of electronic funds transfer.
  2. (b) However, anything to the contrary notwithstanding, if the taxpayer reports by electronic data interchange pursuant to § 67-3-706, payment shall be made by means of electronic funds transfer in accordance with § 67-1-703, regardless of the amount of tax owed. Payment shall be by Automated Clearing House Debit (ACH debit) or Automated Clearing House Credit (ACH credit) or by any other means established by the commissioner.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1615.
Part 6 Bonding and Licenses
§ 67-3-601. Supplier's license — Permissive supplier's license.
  1. (a) A person engaged in business in this state as a supplier as defined in part 1 of this chapter shall first obtain a supplier's license.
  2. (b) Any person who desires to collect the taxes and fees imposed by this chapter and who meets the definition of a permissive supplier may obtain a permissive supplier's license. Application for or possession of a permissive supplier's license shall not in itself subject the applicant or licensee to the jurisdiction of this state for any purpose other than administration and enforcement of this chapter.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1701.
§ 67-3-602. Blender's license.
  1. Any person engaged in business in this state as a blender shall first obtain a blender's license.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1702.
§ 67-3-603. Terminal operator's license.
  1. Any person engaged in business in this state as a terminal operator shall first obtain a terminal operator's license for each terminal site.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1703.
§ 67-3-604. Exporter's license.
  1. Persons, other than licensed suppliers or licensed bonded importers, who export petroleum products to another state shall either pay Tennessee petroleum products taxes and fees to their suppliers or obtain a Tennessee exporter's license. Persons who hold a supplier's license or a bonded importer's license shall have the same privileges and responsibilities as those holding an exporter's license.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1704.
§ 67-3-605. Transporter's license.
  1. Any person who is not licensed as a supplier, exporter or importer shall obtain a transporter's license before transporting petroleum products, by whatever manner from a point outside this state to a point inside this state, from a point inside this state to a point outside this state, or from a refinery in this state, if the person is engaged for hire.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1705.
§ 67-3-606. Importer's licenses — Bonded importer's license — Restricted importer's license.
  1. (a) A person importing taxable petroleum products into this state from outside this state, by transport truck, pipeline, barge or other conveyance, shall first obtain a bonded importer's license or a restricted importer's license, but not both.
  2. (b) Applicants for a restricted importer's license must meet the following conditions:
    1. (1) The taxable petroleum products imported must all be the subject of a tax precollection agreement with a supplier as provided in § 67-3-501, or a tax precollection election as provided in § 67-3-503; and
    2. (2) The applicant must declare the state or states in which licensed for motor fuel tax purposes and from which the applicant desires to import, and shall declare the terminal source and the supplier. A restricted importer's license shall be limited to petroleum products imported from a state listed on the license application.
  3. (c) The department shall determine that a particular state has adopted terminal reporting requirements that are adequate to facilitate information exchange on cross-border movements of petroleum products prior to granting restricted importer's licenses to applicants for importation of taxable petroleum products from that state.
  4. (d) A person desiring to import taxable petroleum products from another state, and who has not obtained a restricted importer's license and has not entered into an agreement to prepay this state's petroleum products taxes and fees to the supplier or permissive supplier with respect to such imports shall:
    1. (1) Obtain a valid bonded importer's license subject to the bonding requirements of this chapter; and
    2. (2) Comply with the payment requirements under § 67-3-502.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1706.
§ 67-3-607. Wholesaler's license.
  1. Any person engaged in business in this state as a wholesaler as defined in part 1 of this chapter, who does not hold a license as a supplier or bonded importer, shall first obtain a wholesaler's license. A person who acquires petroleum products from a supplier, importer or from another wholesaler, for the person's own account, may obtain a wholesaler's license; and such person thereby assumes the rights and responsibilities of wholesalers under this chapter.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1707.
§ 67-3-608. License application — Form — Investigation.
  1. (a) Each application for a license under this part shall be made upon a form prepared and furnished by the department. It shall be subscribed to by the applicant and shall contain such information as the department may reasonably require for the administration of this chapter, including the applicant' s federal employer identification number and, with respect to the applicant for an exporter's license, a copy of the applicant's license to purchase or handle taxable motor fuel in the specified destination state or states for which the export license is to be issued.
  2. (b) The department may investigate each applicant for a license under this chapter. No license shall be issued if the department determines that any one (1) of the following exists:
    1. (1) The application is not filed in good faith;
    2. (2) The applicant is not the real party in interest;
    3. (3) Any prior license of the real party in interest has been revoked for cause;
    4. (4) Information on the application has been falsified, is fraudulent, is incomplete or the applicant has in any material way misrepresented the true facts;
    5. (5) With respect to an exporter's license, the applicant is not licensed in the intended specific state or states of destination;
    6. (6) The applicant, or any of the applicant's agents, officers or employees, has a prior conviction for motor fuel tax evasion in any state, federal or foreign jurisdiction; or
    7. (7) Other reasonable cause for non-issuance exists.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1708.
§ 67-3-609. Bond for payment of taxes required — Amount — Combination bonds — Exemptions.
  1. (a) The application for a license under this part, or a permit under part 11 of this chapter, shall be accompanied by a bond, payable to the state of Tennessee, in the penal amount determined under subsection (b). The bond shall be void if the applicant pays to the commissioner all taxes and fees on petroleum products under this chapter, together with interest and penalties on the taxes and fees that accrue against the applicant.
  2. (b) The penal amount of the bond shall be not less than the greater of one thousand dollars ($1,000) or three (3) times the amount of the tax required to be paid monthly by the person. The monthly amount shall be determined by averaging the tax over a period of six (6) months immediately preceding the execution of the bond. If a person has not been in business for a period of six (6) months, the penal amount of the bond shall be determined on the average monthly tax during the actual time the person has been engaged in business or on the estimated average monthly tax; however, the bond shall not be less than fifty thousand dollars ($50,000). The commissioner may, at any time, require an increase in the penal amount of the bond, if the commissioner deems such increase necessary to safeguard the revenues of the state, but in no event shall the bond exceed the sum of one million dollars ($1,000,000).
  3. (c) A person required to execute more than one (1) bond, whether required in order to become a licensee or to be eligible for an exemption or refund under part 4 of this chapter, may combine the total amount of each of the bonds into a single bond, which shall be conditioned upon payment of all petroleum products taxes, fees, penalties and interest that may accrue against the person. The penal amount of any combination bond shall be determined in the manner provided in subsection (b), but shall in no case be less than three thousand dollars ($3,000) nor more than two million dollars ($2,000,000).
  4. (d) Licensees who seek exemption or refunds under part 4 of this chapter and who do not accrue liability as suppliers and/or importers, instead of the provisions set out in subsection (b), shall post a minimum bond of one thousand dollars ($1,000). The commissioner may, at any time, require additional bond if the commissioner deems such bond necessary to safeguard the revenues of the state. In no event shall the bond exceed the sum of one million dollars ($1,000,000).
  5. (e) If the required maximum penal amount of the bond in subsection (b) exceeds one hundred thousand dollars ($100,000) or if the required maximum penal amount of the bond in subsection (c) exceeds two hundred thousand dollars ($200,000), the commissioner may agree to reduce the penal amount of a bond, if the commissioner determines that any potential tax liability is otherwise adequately secured or protected, or if the commissioner determines that the past good filing and payment record of the taxpayer indicates that lowering the penal amount of the bond would not result in a substantially increased risk of loss to the state. The required maximum penal amount of the bond in subsection (b) may not, however, be reduced to an amount less than one hundred thousand dollars ($100,000), and the required maximum penal amount of the bond in subsection (c) may not be reduced to an amount less than two hundred thousand dollars ($200,000).
  6. (f) The bond may be a corporate surety bond or a personal surety bond; and, in either event, it shall be signed by the applicant as principal. If a corporate surety bond is executed, it shall be signed as surety by an authorized surety company licensed to do business in this state.
  7. (g) Instead of a personal or corporate surety on such bond required in subsection (a), the commissioner may allow the applicant to secure such bond by depositing collateral in the form of a certificate of deposit, or equivalent to a certificate of deposit, as accepted and authorized by the banking laws of Tennessee, that has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner.
  8. (h) An applicant may execute a bond with personal surety approved by the commissioner. The personal surety or sureties shall own real estate within the state, free and unencumbered, and with the assessed value equal to three (3) times the amount of the average monthly tax payment. The bond shall be registered in the register's office of the county in which the property is located, and the taxpayer shall be liable for all registration fees. The state shall have a lien against the property superior to all other liens attaching after the registration, which may be enforced by levy on the property of the taxpayer and the taxpayer's surety, and by sale of the property as now provided by law. A personal surety bond shall be executed on forms furnished by the commissioner and shall contain a sworn certificate of the county trustee showing the assessed valuation of the real estate and that all ad valorem taxes on it are paid. In the event the property is located within an incorporated town or city, the information shall also be furnished by sworn certificate of the proper municipal official. The bond shall also contain an abstract of title of the real estate described in the instrument, showing the exact status of title to the property for the preceding ten (10) years, and the abstract of title shall be signed and sworn to by the county register.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1709.
§ 67-3-610. Bond — Licensed wholesaler.
  1. (a) No wholesaler tax deferral election under § 67-3-506 is valid unless and until the licensed wholesaler files with the department a surety bond, in a form acceptable to the department, in the amount of two hundred fifty percent (250%) of the greatest monthly taxes and fees paid by the wholesaler through all of its suppliers and importers during the immediately preceding twelve (12) months. If a wholesaler has been in business less than twelve (12) months, the amount of the bond shall be determined in reference to the average monthly tax liability for the time the wholesaler has been engaged in business. The penal amount of the bond under this section shall not be less than fifty thousand dollars ($50,000). The bond shall indemnify the department against credits allowed licensed suppliers and importers under § 67-3-507.
  2. (b) If the required penal amount of the bond in subsection (a) exceeds two hundred thousand dollars ($200,000), the commissioner may agree to reduce the penal amount of a bond, if the commissioner determines that any potential tax liability is otherwise adequately secured or protected, or if the commissioner determines that the past good filing and payment record of the taxpayer indicate that lowering the penal amount of the bond would not result in a substantially increased risk of loss to the state. The required penal amount of the bond in subsection (a) may not, however, be reduced to an amount less than fifty thousand dollars ($50,000).
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1710.
§ 67-3-611. New bond.
  1. (a) The commissioner may require a licensee to file a new bond with a satisfactory surety in the same form and amount, if:
    1. (1) Liability upon the previous bond is discharged or reduced for any reason; or
    2. (2) The commissioner determines that any surety on the previous bond becomes unsatisfactory.
  2. (b) If the new bond is unsatisfactory, the commissioner shall cancel the license. If the new bond is satisfactorily furnished, the commissioner shall release, in writing, the surety on the previous bond from any liability accruing after the effective date of the new bond.
  3. (c) If a licensee has a cash deposit with the commissioner and the deposit is reduced for any reason, the commissioner may require the licensee to make a new deposit equal to the amount of the reduction.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1711.
§ 67-3-612. Bond increase.
  1. (a) If the commissioner determines that the amount of the existing bond or cash deposit is insufficient to ensure payment to the state of taxes, fees, penalty and interest for which the licensee is or may become liable, the licensee shall, upon written demand from the commissioner, file a new bond or increase the cash deposit. The commissioner shall allow the licensee at least fifteen (15) days to secure the increased bond or cash deposit.
  2. (b) The new bond or cash deposit must meet the requirements set forth in this chapter.
  3. (c) If the new bond or cash deposit required under this section is unsatisfactory, the commissioner shall cancel the licensee's certificate.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1712.
§ 67-3-613. Bond replacement.
  1. (a) If, at any time after the execution of any surety bond, the surety or sureties on the bond become insolvent, the commissioner may require the execution of a new bond with good and solvent surety in the same manner and with the same penalty as the bond being replaced. The bond shall be subject to the approval of the commissioner.
  2. (b) Any person executing a bond under this part may, at any time prior to default under any existing bond, apply to the commissioner for leave to cancel the existing bond and file a new bond with a new surety.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1713.
§ 67-3-614. Bond release.
  1. (a) Sixty (60) days after making a written request for release to the commissioner, the surety of a bond furnished by a licensee is released from any liability to the state accruing on the bond after the sixty-day period. The release does not affect any liability accruing before the expiration of the sixty-day period.
  2. (b) The commissioner shall promptly notify the licensee furnishing the bond that a release has been requested. Unless the licensee obtains a new bond that meets the requirements of this chapter and files with the commissioner the new bond within the sixty-day period, the commissioner shall cancel the license.
  3. (c) Either the principal or surety may request the commissioner to cause an audit to be made of the books and records of the principal, and the audit shall be commenced within ninety (90) days from the date of the request. Upon completion of the audit, and if no additional taxes, fees, interest or penalty is shown to be due, or the additional sum is paid to the commissioner, then and thereafter, all liability of the surety on the bond shall cease and the surety shall be released. Any collateral deposited as security with the commissioner shall be released and returned to the person entitled to it. Any real estate that has been pledged as security for the bond shall be released by the commissioner by the execution of a release for that purpose, which may be recorded in the same manner as other releases are recorded. The commissioner may require the principal on the bond to furnish the form for a release.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1714.
§ 67-3-615. License transferability.
  1. No license is transferable to another person. For purposes of this part, a transfer of a majority interest in a business association, other than a publicly held corporation, including a corporation, partnership, trust, joint venture, limited liability company and any other business association, shall be deemed a transfer of any license held by such business association, and shall render the license void. Any substantial change in ownership of a business association, other than a publicly held business association, shall be reported to the department under rules prescribed by the department.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1715.
§ 67-3-616. License display.
  1. Each license shall be preserved and conspicuously displayed at the place of business for which it is issued. The department is authorized to waive this requirement for any class of licensee.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1716.
§ 67-3-617. License termination — Notice — Surrender.
  1. Whenever any person licensed to do business under this chapter relocates, discontinues, sells, or transfers the business, the license shall be void, and the licensee shall immediately notify the department in writing of the relocation, discontinuance, sale, or transfer. The notice shall give the date of the event, and if a sale or transfer of the business, the name and address of the purchaser or transferee. The licensee shall be liable for all taxes, fees, interest, and penalties that accrue or may be owing, and any criminal liability for misuse of the license, that occurs prior to issuance of the notice.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1717.
§ 67-3-618. License denial and revocation.
  1. (a) Before denying an application for a license, the commissioner shall grant the applicant a notice of the proposed denial, including the reasons for such decision. After having the opportunity to cure any defects in the application, an applicant who does not agree with the commissioner's decision may file with the commissioner at Nashville a written claim requesting a hearing. The hearing shall be held under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The request shall be made within ten (10) days following date of the commissioner's action.
  2. (b) The commissioner may suspend or revoke a license for failure to comply with this chapter after at least ten (10) days, notice to the licensee and after a hearing, if requested by the licensee, pursuant to the Uniform Administrative Procedures Act.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1718.
§ 67-3-619. Retailer's license for dyed diesel fuel.
  1. Any person engaged in business in this state as a retailer as defined in part 1 of this chapter, who does not hold a license as a wholesaler, and who is in, or intends to engage in, the business of selling dyed diesel fuel to end users, shall first obtain a retailer's license under this chapter.
History (2)
  • Acts 2001, ch. 133, § 1
  • T.C.A., § 67-3-1719.
Part 7 Reports
§ 67-3-701. Distributor reports filed by suppliers and bonded importers.
  1. (a) For the purpose of determining the amount of taxes and fees due on motor fuel imported, sold, refined, or used in the state, every licensed supplier, permissive supplier and bonded importer shall file with the department, on forms prescribed and furnished by the department, a monthly distributor report. The department may require the reporting of any information reasonably necessary to determine the amount of taxes and fees due.
  2. (b) The reports required by this section shall be filed on or before the twentieth day of the month following the month of activity.
  3. (c) The distributor report required by this section shall include the following information with respect to billed gallons of taxable petroleum products, with the amounts stated and indicated as net gallons, or stated and indicated as gross gallons if unable to provide net gallons:
    1. (1) Removal of gallons of petroleum products by the reporting supplier or importer from the bulk transfer/terminal system in this state as to which the taxes and fees imposed by this chapter have been collected or accrued;
    2. (2) Removal of gallons of diesel fuel or heating oil from terminals in this state by the reporting supplier, tax exempt, as to which dye has been added in accordance with this chapter;
    3. (3) Removal of gallons of petroleum products from terminals in this state by the reporting supplier or importer, tax exempt, for export from this state by that person where the proper petroleum products tax for the destination state has been collected or accrued at the time of removal from the terminal, sorted by state of destination;
    4. (4) Removal of gallons of petroleum products from terminals in this state by the reporting supplier or importer, tax exempt or for which credit can be taken on the return, for export, where the proper petroleum products tax for the respective destination state has been collected or accrued at the time of removal from the terminal, sorted by state of destination;
    5. (5) Total removals in this state;
    6. (6) Removal of gallons of petroleum products from a terminal in a state other than this state by the reporting supplier or importer, for shipment into this state; and
    7. (7) Such other information which the department determines is reasonably required to determine the liability under this chapter.
  4. (d) Every licensed supplier, bonded importer or permissive supplier shall separately identify, in a written statement to the department with the distributor report, any removal from the bulk transfer/terminal system in another state by that supplier or importer to a person, other than a licensed supplier, permissive supplier or bonded importer, of gallons of taxable petroleum products, which gallons are destined for this state, as shown by the terminal issued shipping paper, where the taxes and fees imposed by this chapter have not been collected or accrued by such supplier or importer upon such removal.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1801.
§ 67-3-702. In-state terminal operator reports.
  1. (a) Each person operating a terminal in this state shall file monthly with the department a sworn statement of operations of each terminal within this state, including the information set out in subsection (b), on forms prescribed by the department. The department may require the reporting of any information it considers reasonably necessary in addition to that required under subsection (b).
  2. (b) The monthly terminal report required by this section shall be filed on or before the last day of the month following the month of activity and shall include the following information for each terminal location in this state:
    1. (1) Terminal code assigned by the internal revenue service;
    2. (2) Total inventory at the terminal operated by the terminal operator;
    3. (3) Schedules of receipts by shipment, including:
      1. (A) Carrier name;
      2. (B) Carrier federal employer identification number;
      3. (C) Mode of transportation;
      4. (D) Date received;
      5. (E) Document number;
      6. (F) Net gallons received; and
      7. (G) Product type; and
    4. (4) Schedules of removals by shipment, including:
      1. (A) Carrier name;
      2. (B) Carrier federal employer identification number;
      3. (C) Mode of transportation;
      4. (D) Destination state;
      5. (E) Supplier responsible for reporting removal;
      6. (F) Supplier federal employer identification number;
      7. (G) Date removed from terminal;
      8. (H) Document number;
      9. (I) Net gallons; and
      10. (J) Gross gallons;
    5. provided, that in the event the internal revenue service provides a common system of assigning to carriers alpha-numeric codes instead of names, then this data will be required in lieu of carrier names.
  3. (c) For purposes of reporting and determining tax liability under this chapter, every licensee shall maintain inventory records as required by the department.
  4. (d) Each person operating a terminal in this state shall also file an annual report for each terminal within this state on forms provided by the department. The taxes and fees shall be paid and the report shall be filed for each calendar year on or before February 25 of the following year. The report shall include data as follows:
    1. (1) The amount of monthly gains or losses, in net gallons;
    2. (2) The total net gallons removed from the terminal in bulk during the calendar year;
    3. (3) The total net gallons removed across the terminal rack during the calendar year;
    4. (4) The amount of tax due calculated pursuant to §§ 67-3-302(b) and 67-3-303(c); and
    5. (5) Such other information as the department considers reasonably necessary to determine the tax liability of the terminal operator under this chapter.
    Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1802.
§ 67-3-703. Exporter reports.
  1. (a) A person licensed as an exporter shall file monthly reports with the department on forms prescribed and furnished by the department concerning the amount of taxable petroleum products exported from this state. The report shall be filed on or before the twentieth day of the month following the month of activity.
  2. (b) The report shall contain the following information:
    1. (1) Each and every shipment of taxable petroleum products acquired free of all states' petroleum products taxes, except the export tax imposed by § 67-3-205, at a terminal in this state for direct delivery outside of this state by the exporter;
    2. (2) Each and every shipment of taxable petroleum products acquired free of this state's tax and fee at a terminal in this state for direct delivery outside of this state but as to which the destination state's petroleum products tax was paid or accrued to the vendor at the time of removal from the terminal;
    3. (3) The gallons delivered to taxing jurisdictions outside this state from bulk plant storage, and the means of transport;
    4. (4) The name and federal employer identification number of the person receiving the exported taxable petroleum products from the exporter;
    5. (5) The date of each shipment;
    6. (6) The carrier name, or alpha code, and carrier federal employer identification number; and
    7. (7) A list of diverted shipments and payments of taxes and fees.
  3. (c) The department may in addition require the reporting of any other information it considers reasonably necessary to the enforcement of this chapter.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1803.
§ 67-3-704. Transporter reports.
  1. (a) A person licensed as a transporter in this state shall file monthly reports with the department, on forms prescribed and furnished by the department, reporting the amount of taxable petroleum products transported within or across the borders of this state; provided, that transport truck operations exclusively within the state are not reportable except when transport operations originate at a refinery in this state. The report shall be filed within twenty-five (25) days after the end of the month in which delivery was made. The information shall include the following:
    1. (1) The quantity imported by the carrier for delivery in this state or transported from a Tennessee refinery by the carrier for delivery in this state;
    2. (2) The name and address of the supplier;
    3. (3) The name and address of the customer receiving delivery;
    4. (4) The date and the point of delivery;
    5. (5) The description of the product delivered; and
    6. (6) Any other information that may be required by the commissioner for the proper administration of this chapter.
  2. (b)
    1. (1) In case of delivery by barge, there shall be furnished, in addition to the information in subsection (a), the name and number of the barge, and the name and port of the towboat delivering the barge.
    2. (2) In the case of delivery by tank wagon, or other motor vehicle, there shall be furnished, in addition to the information in subsection (a), the vehicle's license number.
    3. (3) In case of delivery by tank car, there shall be furnished, in addition to the information in subsection (a), the car number and initials, and the capacity of the car.
  3. (c) A carrier delivering petroleum products or substitutes for petroleum products to any person required to have a license under part 6 of this chapter who is known by the carrier not to have such license, shall immediately notify the department by facsimile of the delivery, if facsimile service is reasonably available; but if not, by the next quickest means available. The department shall furnish to the carriers a list of all persons holding licenses and shall supplement and amend the list periodically as licenses are issued or revoked.
  4. (d) If a transporter fails to make the reports required by this section, the commissioner may assess a civil penalty of one thousand dollars ($1,000) for each violation.
  5. (e) This section shall cease to be effective if the commissioner determines that substantially similar data is available from federal government sources, including a federal terminal report.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1804.
§ 67-3-705. Blender's report.
  1. A person licensed as a blender shall file a monthly report with the department, on forms prescribed and furnished by the department, reporting the amount of any untaxed petroleum products, blend stocks, or additives blended in this state, and paying all applicable taxes and fees levied under this chapter which have not been previously paid. The report shall be filed on or before the twentieth day of the month following the month of activity.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1805.
§ 67-3-706. Reports by electronic data interchange.
  1. (a) The commissioner may require those responsible for filing reports under this part to file such reports by means of electronic data interchange. All payments accompanying these reports shall be remitted by means of electronic funds transfer as required by § 67-3-515.
  2. (b) In addition to any other penalty provided by law, the commissioner may assess on any person required to file reports by means of electronic data interchange a penalty, not to exceed five hundred dollars ($500), for each instance of reporting by any other means.
Backlinks (1)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1806
  • Acts 2012, ch. 657, § 4.
Part 8 Enforcement Provisions
§ 67-3-801. Destination state shipping paper to be issued.
  1. (a) A person operating a refinery, terminal or bulk plant facility in this state shall prepare an automated, machine-generated, shipping paper, and provide it to the driver of every transport truck receiving petroleum products into the vehicle storage tank; provided, that where a bulk plant is not equipped to provide a machine-generated paper, it shall manually prepare the shipping paper required by this section. The department may by regulation require shipping papers to meet tamper-resistant standards, and every manually prepared shipping paper shall contain a stamp indicating that the paper was prepared at the facility at which it was issued.
  2. (b) Every shipping paper shall set out on its face:
    1. (1) Identification by address of the terminal or bulk plant from which the petroleum products were removed;
    2. (2) The date the petroleum products were removed;
    3. (3) The type and amount of petroleum products removed, actual gallons and net gallons;
    4. (4) The state of destination as represented to the terminal operator by the transporter, the shipper or the shipper's agent;
    5. (5) A notation:
      1. (A) With respect to diesel fuel acquired under claim of exempt use, indicating the fuel is “DYED DIESEL FUEL, NON-TAXABLE USE ONLY, PENALTY FOR TAXABLE USE” for the load or the appropriate portion of the load; or
      2. (B) With respect to any other taxable petroleum products, indicating: “[supplier name] is responsible for [state name] motor fuel tax,” or any other notation acceptable to the department, that otherwise indicates that the diesel tax imposed by this chapter, or any petroleum products taxes imposed by the destination state other than Tennessee, have been paid to the supplier with respect to the entire load or the appropriate portion of the load; and
    6. (6) Any other information reasonably required by the department for the enforcement of this chapter.
  3. (c) Unless the supplier has first directed the terminal or refinery operator to make the statement on the supplier's behalf, no terminal or refinery operator shall imprint any statement on a shipping paper relating to petroleum products to be delivered to this state, indicating:
    1. (1) Any supplier's liability for payment of the taxes and fees imposed by this chapter; or
    2. (2) The tax-paid or tax-collected status of any petroleum products.
  4. (d) A person operating a terminal or refinery, or operating a bulk plant equipped to provide machine-generated shipping papers, may manually prepare shipping papers as a result of extraordinary, unforeseen circumstances, that temporarily interfere with the operator's ability to issue automated, machine-generated, shipping papers; provided, that such operator shall, prior to manually preparing such papers, provide facsimile notice to the department, and the operator's employees shall add to such manually prepared papers, prior to removal of each affected transport load from the facility, a stamp indicating that the document was prepared at the facility. If the interruption has not been cured within twenty-four (24) hours, additional notice to the department shall be made.
  5. (e) A person operating a refinery, terminal or bulk plant may load petroleum products, a portion of which is destined for sale or use in this state and a portion of which is destined for sale or use in another state or states. However, such split loads shall be documented by the operator by issuing shipping papers designating the state of destination for each portion of the product.
  6. (f) A person operating a refinery, terminal or bulk plant shall post a conspicuous notice located near the point of receipt of shipping papers by transport truck operators, which notice shall describe in clear and concise terms the duties of the transport operator and retail dealer under §§ 67-3-802 — 67-3-805; provided, that the department may by rule or notice establish the language, type, style and format of the notice.
  7. (g) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against a person who fails to comply with this section.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1901.
§ 67-3-802. Shipping paper to be carried on board.
  1. (a) Each person transporting petroleum products in a transport truck upon the public highways of this state shall:
    1. (1) Carry on board the shipping paper issued by the refinery operator, the terminal operator or the bulk plant operator of the facility where the petroleum product was obtained, whether within or without this state;
    2. (2) Show and permit duplication of the shipping paper by any law enforcement officer or representative of the department, upon request, when transporting, holding or off-loading the products described in the shipping paper;
    3. (3) Deliver products described in the shipping paper to a point or points in the destination state shown on the face of the shipping paper, unless the person or the person's agent does all of the following:
      1. (A) Notifies the department or its nominee, before the earlier of removal from the state in which the shipment originated or the initiation of delivery, that the person received instructions after the shipping paper was issued to deliver the petroleum product to a different destination state;
      2. (B) Receives from the commissioner a verification number authorizing the diversion; and
      3. (C) Writes on the shipping paper the change in destination state and the verification number for the diversion;
    4. (4) Provide a copy of the shipping paper to the wholesaler, retailer or other person who controls the facility to which the petroleum products are delivered; and
    5. (5) Meet such other conditions or take such other actions as the department may reasonably require by regulation for the enforcement of this chapter.
  2. (b) The department may in its discretion provide an advance notification procedure for documentation supporting the import of petroleum products where the importer is unable to obtain terminal-issued shipping papers that comply with this section.
  3. (c) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against a person who fails to comply with this section.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1902.
§ 67-3-803. Refusal of delivery.
  1. No retail vendor, bulk plant operator, wholesaler or bulk end user shall accept delivery of petroleum products into bulk storage facilities in this state, if that delivery is not accompanied by a shipping paper prepared in accordance with this part. The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against a person who fails to comply with this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1903.
§ 67-3-804. Diversions.
  1. (a) A shipment of petroleum products may be diverted from the destination stated on the original shipping paper where the shipping paper is incorrect or where there is a legitimate business need to divert the shipment. Prior to any diversion or change to the shipping paper, the shipper, the transporter, or an agent of either, shall notify the department or its designee and shall manually add the assigned verification number to the shipping paper. Any claim for refund resulting from a diversion under this section shall be made and acted on under the refund provisions of chapter 1, part 18, and chapter 3, part 4, of this title.
  2. (b) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against any person who diverts a shipment or alters a shipping paper other than as provided for in subsection (a). No civil penalty will be assessed in those cases where the prior notification required in subsection (a) was not accomplished due to error, other than negligence, if within three (3) working days the shipper, the transporter, or the agent of either, notifies the department of the diversion and error.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1904.
§ 67-3-805. Right to rely.
  1. The supplier and the terminal operator shall be entitled to rely for all purposes of this chapter on the representation by the transporter, the shipper or the shipper's agent, as to the shipper's intended state of destination and tax exempt use. The shipper, the importer, the transporter, the shipper's agent and any purchaser, but not the supplier or terminal operator, shall be jointly and severally liable for any taxes and fees otherwise due to the state as a result of an unlawful diversion of the petroleum products from the represented destination state. A terminal operator shall be entitled to rely on the representation of a licensed supplier or bonded importer with respect to the supplier's obligation to collect taxes and fees and the related shipping paper representation as shown on the shipping paper as provided by § 67-3-801.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1905.
§ 67-3-806. Petroleum products and vehicles declared contraband — Confiscation — Procedure for hearing.
  1. (a) Any petroleum product that is owned or possessed by any person in avoidance, evasion or violation of any provision contained in this part, and any vehicle that is used for storage or transportation of the product, are contraband and may be seized by the commissioner. All products and vehicles seized as contraband shall be delivered promptly to the custody of the department and disposed of under § 67-1-1435. Proceeds of the sale shall be paid to the state treasury for the benefit of the general fund.
  2. (b) Any person, claiming any property or any interest in property seized under subsection (a), may file with the commissioner at Nashville a written claim, requesting a hearing and stating the person's interest in the product or vehicle seized. The hearing shall be held under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The request shall be made within ten (10) days following the confiscation.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1906.
§ 67-3-807. Disposition of seized property — Bond or possession — Exclusive remedy.
  1. (a) When the ruling of the commissioner, following a hearing provided for under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, is favorable to the claimant, the commissioner shall deliver to the claimant the petroleum products and other property that were seized.
  2. (b) When the ruling of the commissioner is adverse to the claimant, and the claimant appeals, the commissioner shall deliver to the claimant the petroleum products and other property so seized; provided, that the claimant shall first post a bond, approved by the commissioner, payable to the state in a sum double the value of the property seized. The condition of the bond shall be that the obligors will pay to the department, the full value of the goods, or property seized, unless upon appeal the decision of the commissioner is reversed and the right of the claimant to the property judicially determined. If the claimant does not post a bond satisfactory to the commissioner, the commissioner shall proceed to sell the contraband goods under § 67-1-1435.
  3. (c) If no claim is interposed, the petroleum products or other property shall be forfeited without further proceedings and shall be sold as provided in this section.
  4. (d) The procedures provided for in this section and in § 67-3-808 are the sole remedies of any claimant and no court shall have jurisdiction to interfere with these remedies by replevin, injunction or in any other manner.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1907.
§ 67-3-808. No operation without a license.
  1. (a) No person shall engage in any business activity in this state as to which a license is required by part 6 of this chapter, unless the person shall have first obtained the license. No person shall export petroleum products from a terminal in this state, unless that person has obtained an exporter's license, a bonded importer's license or a supplier's license, or has paid the applicable Tennessee petroleum products taxes and fees.
  2. (b) Any carrier delivering petroleum products to any person required by this chapter to have a license to import or sell at wholesale, and known by the carrier not to have a license to import or sell fuel at wholesale, shall immediately notify the department by facsimile of the delivery. A carrier who fails to comply with this subsection (b) is jointly and severally liable to the state for the taxes and fees on the product delivered.
  3. (c) An end user who exports fuel in a vehicle fuel supply tank incident to interstate transportation shall be exempt from this section.
  4. (d) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product handled, without regard to any exemption or dye, or one thousand dollars ($1,000) per day, whichever is greater, against a person who fails to comply with subsection (a).
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1908.
§ 67-3-809. Unlawful sale and use of dyed fuel.
  1. (a) No person shall sell or deliver dyed diesel fuel or diesel fuel contaminated with dye when such person knows or has reason to know that the fuel will be used in a motor vehicle on the public highways.
  2. (b) No person shall introduce dyed diesel fuel or diesel fuel contaminated with dye into the supply tank of any motor vehicle licensed for highway use.
  3. (c) No person shall use dyed diesel fuel or diesel fuel contaminated with dye in a licensed motor vehicle or in a motor vehicle actually used on the public highways.
  4. (d) The prohibitions contained in this section do not pertain to:
    1. (1) Persons operating motor vehicles that have received fuel into their fuel tanks outside of this state in a jurisdiction that permits introduction of dyed diesel fuel of that color and type into the fuel supply tank of highway vehicles;
    2. (2) Uses of dyed fuel on the highway that are lawful under the Internal Revenue Code (26 U.S.C.), and regulations, including state and local government vehicles, and buses, unless otherwise prohibited by this chapter; and
    3. (3) Agricultural vehicles used solely for the purpose of transferring a person's harvested crops from the field to the person's storage facility for the harvested crops; provided, that the distance traveled on the public highways does not exceed five (5) miles.
  5. (e)
    1. (1) The commissioner may assess a civil penalty of one thousand dollars ($1,000) or ten dollars ($10.00) per gallon of dyed fuel involved, whichever is greater, against a person who violates this section. The capacity of the tank determines the amount of dyed fuel involved, unless otherwise shown by the violator. For subsequent violations, the penalty shall be multiplied by the total number of separate violations by that person.
    2. (2) The commissioner may waive in whole or in part the civil penalty provided for in subdivision (e)(1), upon the commissioner's determination that such penalty did not result from negligence or willful disregard of the law; provided, that such authority to waive the penalty shall be subject to § 67-1-803(b) and (e).
History (4)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1909
  • Acts 2004, ch. 948, § 1
  • 2009, ch. 530, § 99.
§ 67-3-810. Requirements for sale of dyed diesel fuel at retail station.
  1. (a)
    1. (1) A licensed retailer selling dyed diesel fuel at a retail station shall, in addition to the other requirements of this chapter, dispense the dyed diesel fuel to the end user from a pump or device:
      1. (A) Located on an island separate from any undyed diesel fuel pump;
      2. (B) Located no closer than ten feet (10′) from any undyed diesel fuel pump or device on the same island; or
      3. (C) For which there is an attendant stationed and in attendance on the pump island.
    2. (2) The outside diameter for the dispensing nozzle on any such pump or dispensing device shall not be less than one and three-eighths inches (1 ⅜″).
  2. (b) A licensed wholesaler may sell dyed diesel fuel using a customer-controlled pump located at a retail station, subject to the requirements of § 67-3-401(i), other than the requirement that the customer be a governmental agency.
  3. (c) All sales of dyed diesel fuel at retail shall be recorded by the seller at or near the time of the sale and the invoice shall contain the date of the purchase and delivery, along with the purchaser's name and address, type of fuel, a notation for dye added, the number of gallons purchased, the amount of state and local tax and the total dollar amount of the sale.
  4. (d) Notwithstanding any other provision of this chapter, all dyed diesel pumps or devices installed or made operational after January 1, 2001, shall be located no closer than twelve feet (12′) from any undyed diesel fuel pump. This requirement does not apply to replacement pumps or devices for those dyed diesel pumps or devices existing as of January 1, 2001, and otherwise compliant with the requirements of this chapter.
History (3)
  • Acts 1997, ch. 316, § 1
  • 2001, ch. 133, § 2
  • T.C.A., § 67-3-1910.
§ 67-3-811. Notice required with respect to dyed diesel fuel.
  1. (a) A notice stating “DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE” shall be provided by the terminal operator to any person that receives dyed diesel fuel at a terminal rack, and provided by any vendor of dyed diesel fuel to its buyer if the diesel fuel is located outside the bulk transfer/terminal system.
  2. (b) The form of notice required under subsection (a) shall be provided at the time of the removal or sale and shall appear on all shipping papers, bills of lading, and invoices accompanying the sale or removal of the dyed diesel fuel.
  3. (c) The commissioner may assess a civil penalty of one hundred dollars ($100) for each violation, against a person who fails to comply with this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1911.
§ 67-3-812. Dyed fuel pump display.
  1. (a) A vendor delivering dyed diesel fuel to consumers through pumps shall be required to prominently display on such pumps the language “Dyed Diesel Fuel — Nontaxable Use Only — Penalty for Taxable Use — Off Highway, Not Legal for Motor Vehicle Use” as presently required by the internal revenue service or environmental protection agency. Such display shall remain a requirement until the general assembly, by statute, changes such requirements, notwithstanding either of such federal agencies altering or removing such requirement from its regulations.
  2. (b) The commissioner may assess a civil penalty of one hundred dollars ($100) for each month in violation, or portion of a month, against a person who fails to comply with this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1912.
§ 67-3-813. Quality assurance.
  1. (a) No person shall sell or purchase any product for use in the fuel supply tank of a motor vehicle for general highway use that does not meet standards as published in the annual American Society for Testing and Materials Book of Standards and its supplements, unless amended or modified by the department.
  2. (b) All persons in possession of any product in violation of this section shall have the duty to dispose of it in the manner provided by federal and state law.
  3. (c) The commissioner may assess a civil penalty of ten dollars ($10.00) per gallon, against a person who fails to comply with this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1913.
§ 67-3-814. Prohibition on tampering with meters at retail outlets.
  1. (a) A person operating petroleum products dispensing equipment accessible by the general public shall provide metering devices for each dispenser, and shall maintain records sufficient to enable the department to determine the volumes dispensed with reasonable accuracy.
  2. (b) No person shall exchange, replace, roll back or otherwise tamper with any such metering equipment without following procedures provided by the department for legitimate maintenance, repairs and replacement purposes.
  3. (c) The department has the authority to seal any dispenser meter or totalizer.
  4. (d) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the storage capacity of the facility, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, against a person who fails to comply with this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1914.
§ 67-3-815. Records retention.
  1. (a) All persons subject to this part shall retain records, including, but not limited to, shipping papers, of all petroleum products transactions for a period of three (3) years after December 31 of the year in which the transaction occurred.
  2. (b) Persons operating terminals, refineries and bulk plants shall retain these records on site for a period of ninety (90) days following the month of the transaction.
  3. (c) Retail stations shall retain these records on site for a period of thirty (30) days following the month of the transaction.
  4. (d) The commissioner may revoke the license or licenses of and assess a civil penalty in the amount of five thousand dollars ($5,000) against a person who fails to comply with this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1915.
§ 67-3-816. Inspections.
  1. (a) In addition to any general authority to investigate for violations of this chapter, the commissioner and the commissioner's designees are hereby authorized to inspect any motor vehicle to ascertain whether the fuel supply tank contains dyed diesel fuel or diesel fuel contaminated with dye.
  2. (b) The commissioner may assess a civil penalty of one thousand dollars ($1,000) against a person who refuses to allow the inspection. For subsequent refusals, the penalty shall be multiplied by the total number of separate refusals by that person.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1916.
§ 67-3-817. Invoices.
  1. (a) Each supplier, importer and wholesaler selling petroleum products in this state shall, at or near the time of each sale, make out and deliver to the purchaser, a prenumbered invoice in which the vendor shall enter the name of the vendor, the full name and complete delivery address of the purchaser, the date of delivery, the type of fuel, a notation for dye added, the total dollar amount of the purchase, the amount of state tax, and the number of gallons of product sold.
  2. (b) The commissioner may assess a civil penalty of five hundred dollars ($500) for each month in violation, or portion of a month, against a person who fails to execute and deliver invoice documents as provided in this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1917.
§ 67-3-818. Calibration of storage tanks.
  1. (a) The commissioner may require the person operating a terminal or refinery to furnish, upon request, two (2) sets of calibration tables on any tank within the bulk terminal/transfer system located in this state, into which petroleum products first come to rest after import. The tanks shall be strapped and the calibrations shall be made by a person qualified and licensed to do this work and recognized for this purpose by the United States government.
  2. (b) The commissioner may request from the operator calibration tables on any tank that the commissioner may wish to be calibrated. The operator shall furnish the two (2) sets of calibration tables within sixty (60) days from the date of the request, calibrated as required in subsection (a).
  3. (c) It is unlawful for any person to fail to comply with the request of the commissioner to furnish any calibration table as provided for in either subsection (a) or (b) within a period of sixty (60) days from the date of the request.
  4. (d) The commissioner may assess a civil penalty of five hundred dollars ($500) against any person who violates this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1918.
§ 67-3-819. Criminal violations.
  1. A person who violates any provision of this chapter with the intent to deprive the state of its lawful revenues, or who aids and abets another to do so, commits a Class E felony.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-1919.
Part 9 General Administrative Provisions
§ 67-3-901. Gasoline tax — Distribution of receipts — Expenses of administration — Utility relocation loan program.
  1. (a) The commissioner shall apportion for distribution all of the taxes collected pursuant to § 67-3-201, and shall inform the department of finance and administration as to the proper amounts of all distributions to be made from the taxes.
  2. (b) Revenues from the tax imposed by § 67-3-201 shall be apportioned for distribution in the following order:
    1. (1) Amounts required to be paid to the debt service fund pursuant to title 9, chapter 9;
    2. (2) Of the amounts designated in subdivisions (b)(2)-(5) for distribution to the counties, cities and highway fund, one percent (1%) shall be subtracted from the amount designated for cities, one percent (1%) shall be subtracted from the amount designated for counties, and two percent (2%) shall be subtracted from the amount designated for the highway fund for distribution to the general fund for expenses of administration prior to the distribution of the funds to the cities, counties or highway fund;
    3. (3) Twenty-eight and sixty-eight hundredths percent (28.68%) of total taxes collected to the various counties of the state on the basis set out in § 54-4-103;
    4. (4) Fourteen and thirty-eight hundredths percent (14.38%) of total taxes collected to the various municipalities, as defined by § 54-4-201, on the basis set out at § 54-4-203; and
    5. (5) Any funds remaining after the distributions set out in subdivisions (b)(1)-(4) to the highway fund. There shall be accumulated and set apart within the fund such amounts as required, not to exceed one million five hundred thousand dollars ($1,500,000) during each of four (4) succeeding fiscal years, which shall be available for carrying out the utility relocation loan program, established in subsection (j).
  3. (c) Revenues from the increases in taxes imposed by chapter 49 of the Acts of 1985, and chapter 454 of the Public Acts of 1985, effective 1985, shall be distributed in accordance with the following formula:
    1. (1) Two cents (2¢) of such revenues shall be apportioned pursuant to subsection (b); and
    2. (2) One cent (1¢) of such revenues shall be apportioned as follows:
      1. (A) Of such amount designated in subdivisions (c)(2)(B) and (C) for distribution to the counties and cities, one percent (1%) shall be subtracted from the amount designated for cities and one percent (1%) shall be subtracted from the amount designated for counties for distribution to the general fund for expenses of administration prior to the distribution of the funds to the cities or counties;
      2. (B) Sixty-six and two-thirds percent (66⅔%) of such revenues collected to the various counties of the state on the basis set out in § 54-4-103; and
      3. (C) Thirty-three and one-third percent (33⅓%) of such revenues collected to the various municipalities, as defined by § 54-4-201, on the basis set out in § 54-4-203.
  4. (d) Notwithstanding any law to the contrary, a county shall be eligible to receive those revenues to be distributed directly to it from the tax increases imposed by chapter 419 of the Public Acts of 1985, and chapter 454 of the Acts of 1985, effective 1985, only if it appropriates and allocates funds for road purposes from local revenue sources in an amount not less than the average of the five (5) preceding fiscal years, except bond issues and federal revenue sharing proceeds shall be excluded from the five (5) year average computation. If a county fails after July 1, 1985, to so appropriate and allocate at least such average amount for road purposes, then the amount of revenues that would otherwise be allocable to such county from the revenues derived by former §§ 67-3-603 and 67-3-604 as those statutes existed on July 1, 1985, shall be reduced by the amount of the decrease below such average. The amount of such funds not allocated to such county because of such decrease shall be allocated to the state highway fund, to be used by the department of transportation for the improvement of state highways in such county, and such state funds shall be in addition to the funds otherwise allocated for improvements in such county in that fiscal year.
  5. (e) Funds apportioned to counties under chapter 419 of the Public Acts of 1985 shall be used for resurfacing and upgrading county roads, including the paving of gravel roads. Any expenditure for equipment shall be approved by a two-thirds (⅔) vote of the county legislative body, prior to purchase.
  6. (f) Revenues from the increases in taxes imposed by former §§ 67-3-603 and 67-3-604 as those statutes existed on June 1, 1986, shall be distributed and allocated as follows:
    1. (1) Revenue from the first three cents (3¢) per gallon of such increases in taxes shall be apportioned as follows:
      1. (A) Amounts required to be paid to the debt service fund pursuant to title 9, chapter 9;
      2. (B) Three million dollars ($3,000,000) per annum, beginning on July 1, 1986, to the highway fund for the use and benefit of certain mass transit projects; and
      3. (C) All other amounts to the highway fund to be used for accelerating the resurfacing of the state system of highways in order to establish a twelve-year cycle of resurfacing with implementation beginning in 1986 and being completed by 1998, and for new construction in the primary system of highways over the period from 1986 to 1999; and
    2. (2) Revenue from one cent (1¢) of such increases in taxes shall be apportioned as follows:
      1. (A) Of such amount designated hereafter for distribution to counties and cities, one percent (1%) shall be subtracted from the amount designated for counties, and one percent (1%) shall be subtracted from the amount designated for cities for distribution to the general fund for expenses of administration prior to the distribution of the funds to the counties or cities;
      2. (B) Sixty-six and two-thirds percent (66⅔%) of such revenues collected to the various counties of the state on the basis set out in § 54-4-103; and
      3. (C) Thirty-three and one-third percent (33⅓%) of such revenues collected to the various municipalities, as defined by § 54-4-201, on the basis set out in § 54-4-203.
  7. (g) Prior to the apportionment set out in subsections (b), (c), (d) and (f), there shall be apportioned for distribution to the wildlife resources fund an amount equal to eighty-eight one-hundredths of one percent (0.88%) of the taxes collected under § 67-3-201, exclusive of tax revenues resulting from the three cents (3¢) per gallon gasoline tax increase imposed by chapter 46 of the Public Acts of 1989 and all tax revenues resulting from the gasoline tax increase imposed by chapter 181 of the Public Acts of 2017. In addition to any other purposes authorized by law for which such funds may be used, the funds apportioned pursuant to this subsection (g) must also be used for public and environmental infrastructure at marinas. A grant awarded to a marina from the funds apportioned pursuant to this subsection (g) must be based on the amount of gasoline sold at that marina. The wildlife resources agency shall strive to ensure that the number of grant recipients is not less than twenty-five (25) marinas.
  8. (h) All revenues and investment income derived from the increase in the gasoline tax rate imposed by chapter 46 of the Public Acts of 1989, shall be placed in the state highway fund, and shall not be subject to the apportionment and distribution provisions of subsection (b).
  9. (i) Revenues from the one cent (1¢) increase in taxes, from nineteen cents (19¢) to twenty cents (20¢), imposed by former §§ 67-3-1703 and 67-3-1704, as those statutes existed under prior Tennessee law immediately after chapter 241 of the Acts 1989 became effective, shall be apportioned as provided in subdivision (f)(2).
  10. (j)
    1. (1) From the amounts accumulated and set apart pursuant to subdivision (b)(5), there is established a “utility relocation loan program” for loan financing of all costs incurred by any county, town, city, metropolitan government, utility district, authority or not-for-profit business organizations empowered to provide utility services that provide utility services to customers related to relocating, moving or re-installing their utility facilities, without any additions to their utility facilities, when located within rights-of-way of highways on the system of state highways and required because of highway construction projects administered by the department of transportation.
    2. (2) The Tennessee board of utility regulation shall review applications for utility relocation loans. Only applicants that meet all of the following criteria may be recommended to the state funding board for loans:
      1. (A) Are obligated to relocate, move or re-install its utilities due to a state highway project;
      2. (B) Have been otherwise unable to obtain financing for such relocation at a reasonable cost on reasonable terms;
      3. (C) Have established fees and charges for services of the utility to be effective immediately or over time sufficient to provide assurance of financial stability, and to agree to adjust such fees and charges periodically to ensure timely payment of loan payments and costs of operation of the system; and
      4. (D) Have covenanted to take such actions necessary to be able to pay all loan payments when due.
    3. (3) As part of its recommendation, the Tennessee board of utility regulation shall recommend an estimated amount of the loan and an interest rate for the loan, utilizing an economic index based upon factors that include, but are not limited to, per capita incomes and property values of the applicant. Applicants falling within the lower economic scale on the index shall be eligible for lower interest rates. Loans may be recommended at no interest for terms of five (5) years or less. In determining its recommendations, the board may use any index or regulations promulgated pursuant to § 68-221-1005(b).
    4. (4) The state funding board is empowered to make and administer loans from the funds and may establish such terms as it determines to be appropriate to carry out the terms of this subsection (j), subject to the following:
      1. (A) Loans shall be for a term of fifteen (15) years or less, not to exceed the useful life of the relocated utilities, with no prepayment penalties;
      2. (B) Loans shall be subject to such other terms, not inconsistent with the foregoing, as the board determines to be appropriate; and
      3. (C) Prior to the start of each fiscal year, the secretary of the state funding board shall certify to the commissioner of finance and administration and the commissioner of transportation, the uncommitted balance in the loan program as of the start of the next fiscal year.
    5. (5) This subsection (j) shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to this subsection (j), unless such funds are specifically appropriated through the department of transportation or as a specific amendment by the general appropriations act.
  11. (k) Notwithstanding § 54-2-103 or any other law to the contrary, a percentage of funds collected and allocated to the state highway fund shall be deposited in the general fund as follows:
    1. (1) If the statute allocating funds to the state highway fund earmarks two percent (2%) or more of the revenue collected for the general fund, no additional allocation to the general fund shall be made;
    2. (2) If the statute allocating funds to the state highway fund earmarks less than two percent (2%) of the revenue collected for the general fund, an amount equal to the amount necessary when added to the statutory earmark, if any, equals two percent (2%) of the revenue collected shall be earmarked for the general fund;
    3. (3) If the additional revenues earmarked for the general fund as provided in subdivision (k)(2) are less than seven million dollars ($7,000,000) in the fiscal year ending June 30, 2001, and in subsequent fiscal years, the earmark for the general fund from the gasoline tax imposed under § 67-3-201 shall be increased in an amount sufficient to provide that the total amount earmarked for the general fund as provided in subdivision (k)(2) and this subdivision (k)(3) shall be seven million dollars ($7,000,000) in the fiscal year ending June 30, 2001, and in subsequent fiscal years;
    4. (4) The allocation of funds as provided in this subsection (k) shall not have an impact on any scheduled or ongoing construction projects;
    5. (5) The department of transportation shall submit any proposal for apportionment of costs resulting from the general fund allocation in this subsection (k) to the state building commission for approval prior to implementing such proposal, including, but not limited to, the programs and projects to be affected and the amount proposed to be allocated to each such program or project;
    6. (6) Except as provided in subdivision (k)(4), it is the legislative intent that the effect of this subsection (k) be allocated on a pro rata basis to any affected program or project; and
    7. (7) This subsection (k) shall not apply to revenues generated under § 67-3-201 from the increase in the tax imposed by chapter 181 of the Public Acts of 2017.
  12. (l) Revenues derived under § 67-3-201 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be apportioned and distributed in the following manner:
    1. (1) Twenty-five and four-tenths percent (25.4%) to the various counties of the state on the basis set forth in § 54-4-103;
    2. (2) Twelve and seven-tenths percent (12.7%) to the various municipalities, as defined by § 54-4-201, on the basis set forth in § 54-4-203; and
    3. (3) Sixty-one and nine-tenths percent (61.9%) to the highway fund.
  13. (m) Notwithstanding any law to the contrary, a county shall be eligible to receive those revenues to be distributed directly to it from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 only if it appropriates and allocates funds for road purposes from local revenue sources in an amount not less than the average of the five (5) preceding fiscal years, except bond issues and federal revenue sharing proceeds shall be excluded from the five-year average computation. If a county fails after July 1, 2017, to so appropriate and allocate at least such average amount for road purposes, then the amount of revenues that would otherwise be allocable to such county under this section shall be reduced by the amount of the decrease below such average. The amount of such funds not allocated to such county because of such decrease shall be allocated to the state highway fund, to be used by the department of transportation for the improvement of state highways in such county, and such state funds shall be in addition to the funds otherwise allocated for improvements in such county in that fiscal year.
Backlinks (3)
History (11)
  • Acts 1997, ch. 316, § 1
  • 1999, ch. 450, § 6
  • 2000, ch. 654, § 1
  • 2000, ch. 983, § 4
  • 2001, ch. 448, § 2
  • T.C.A., § 67-3-2001
  • Acts 2017, ch. 181, §§ 19, 20
  • 2017, ch. 478, §§ 1, 2
  • 2022, ch. 1103, §§ 1, 2
  • 2023, ch. 463, § 30
  • 2024, ch. 660, § 1.
§ 67-3-902. Investment of idle funds from 1986 gasoline tax increases.
  1. All funds from the increase in taxes imposed by chapter 931 of the Acts of 1986, and allocated to the state highway fund shall be placed in a separate account and, to the extent not required for the projects provided for in chapter 931 of the Acts of 1986, shall be invested pursuant to § 9-4-603, with the investment income credited to the highway fund.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2002.
§ 67-3-903. Specific highway projects benefited by 1986 gasoline tax increases.
  1. (a) During the 1986-1987 fiscal year, the funds generated under chapter 931 of the Acts of 1986, shall be used only for the projects specified in the March 25, 1986, Proposed Fiscal Year 1986-1987 Transportation Improvement Plan and Additional Construction Projects, and those additional projects listed in chapter 931 of the Public Acts of 1986. No projects shall be deleted from this plan without the approval of the speaker of the house of representatives and the speaker of the senate. Additional projects shall include the following:
    1. (1) There shall be included in the Cannon County SR-1 (US-70S) SR-64 to Woodbury bridge construction project described therein the widening of SR-1 to four (4) lanes from Woodbury to the Rutherford County line, and in the Smith County SR-25 Carthage bypass right-of-way project described therein necessary bridge design;
    2. (2) There shall be included a highway from Columbia, in Maury County, to the intersection of Law Road and Interstate 40 at Exit 140 in Henderson County, this highway to provide access through the counties of Maury, Lewis, Perry, Decatur, and Henderson, among others, and to the cities of Hohenwald, Linden, Parsons, and Lexington, among others; and
    3. (3) There shall be included the reconstruction of Old Hickory Boulevard (State Highway 251) to four (4) lanes from U.S. Highway 70S to U.S. Highway 70N near Interstate Route 40.
  2. (b)
    1. (1)
      1. (A) The projects listed in the memorandum dated April 1, 1986, from Commissioner Dale Kelley to Senator Henry, Senator Darnell, Representative Bragg and Representative Robinson shall constitute and comprise the projects to be completed no later than the end of the 1998-1999 fiscal year, and the provisions of such memorandum are hereby incorporated herein by reference. No project shall be deleted or changed from such memorandum without the approval of the speaker of the house of representatives and the speaker of the senate.
      2. (B) The reference in such memorandum on page 2 of 2, headed BICENTENNIAL PARKWAY SPECIFIC DESCRIPTIONS, shall include after the language “Interstate 155 Extension” the following: on a route to be determined by the commissioner of transportation after public hearings and feasibility studies through either Dyer, Gibson and Madison counties or through Dyer, Crockett and Madison counties.
    2. (2) Additional projects shall include:
      1. (A) The reconstruction of Highway 61 to four (4) lanes from Clinton to Oak Ridge;
      2. (B) Preplanning of the reconstruction of Highway 46 from Highway 149 to Dickson;
      3. (C) Improvement of the Austin Peay Highway in Shelby County north from I-240 North at an estimated cost of four million three hundred thousand dollars ($4,300,000); and
      4. (D) The widening to four (4) lanes of Highway 12 from Ashland City to Clarksville Highway in Davidson County.
  3. (c) Nothing in this section shall be interpreted or construed to place any roadway which is the subject of chapter 931 of the Public Acts of 1986, under the Scenic Highway Act of 1971, compiled in title 54, chapter 17, part 1, or the Tennessee Parkway System Act, complied in title 54, chapter 17, part 2.
  4. (d) In addition to the projects listed in the “Accelerated Primary Highway Plan” in the memorandum dated April 1, 1986, from Commissioner Dale Kelley to Senator Henry, Senator Darnell, Representative Bragg and Representative Robinson, there is added a project in Memphis described as: The reconstruction of U.S. Route 61, South Third Street, from Shelby Drive to Mitchell Road to provide six (6) traffic lanes.
  5. (e) The commissioner of transportation may consider a northern route to complement the Bicentennial Parkway project known as Interstate 840. Counties which may be considered by the commissioner for the northern route are Wilson, Montgomery, Robertson, Cheatham, Dickson and Sumner. During the 1993-1994 fiscal year, location and environmental studies shall be undertaken. The commissioner may consider funding sources from all revenues allocated to the department of transportation for highway purposes.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2003.
§ 67-3-904. Petroleum products tax increases — Participation of disadvantaged or women business enterprises in construction.
  1. (a)
    1. (1) The department of transportation shall make good faith efforts to obtain participation of either disadvantaged business enterprises or women business enterprises, as such enterprises may be defined by the commissioner of transportation through regulations which the commissioner is authorized to promulgate, in the amount approximating ten percent (10%) of the revenues that are distributed to the state highway fund from the petroleum products tax increases authorized by chapter 46 of the Public Acts of 1989, and that are let to contract.
    2. (2) With respect to projects funded wholly or in part with state funds, the department shall make good faith efforts to obtain participation of either disadvantaged business enterprises or women business enterprises, as such enterprises may be defined by the commissioner through regulations that the commissioner is authorized to promulgate, in the amount approximating seven percent (7%) of the revenues that are distributed to the state highway fund from the petroleum products tax increases, effective 1986, and that are let to contract.
  2. (b) As a condition of disbursement of the funds raised by chapter 241 of the Public Acts of 1989, any local government receiving such funds shall agree to make good faith efforts to obtain participation of either disadvantaged business enterprises or women business enterprises, as such enterprises may be defined by the commissioner through regulations which the commissioner is hereby authorized to promulgate, in the amount approximating ten percent (10%) of the revenues which are distributed to such governments from the petroleum products tax increases authorized by chapter 241 of the Public Acts of 1989, and which are let to contract.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2004.
§ 67-3-905. Diesel tax, compressed natural gas, and prepaid user diesel tax — Allocation of proceeds.
  1. (a) The tax imposed pursuant to §§ 67-3-202, 67-3-1113, and 67-3-1309, shall be allocated and distributed in the following order and manner:
    1. (1) One and sixty-two hundredths percent (1.62%) to the general fund;
    2. (2) Twenty-four and seventy-five hundredths percent (24.75%) to the counties of the state to become a part of the county highway fund in the following manner:
      1. (A) Fifty percent (50%) equally among all counties;
      2. (B) Twenty-five percent (25%) on the basis of population; and
      3. (C) Twenty-five percent (25%) on the basis of area;
    3. (3) Twelve and thirty-eight hundredths percent (12.38%) to municipalities, as defined in § 54-4-201, on the basis set out as § 54-4-203; and
    4. (4) Sixty-one and twenty-five hundredths percent (61.25%) to the highway fund.
  2. (b) Revenues from the increases in taxes imposed by chapter 931 of the Public Acts of 1986, shall be distributed and allocated as follows:
    1. (1) Amounts required to be paid to the debt service fund pursuant to title 9, chapter 9; and
    2. (2) All other amounts to the highway fund to be used for accelerating the resurfacing of the state system of highways in order to establish a twelve-year cycle of resurfacing within the period between 1986 and 1998; and for new construction in the primary system of highways over the period from 1986 to 1999.
  3. (c) All revenues and investment income derived from the increase in the motor vehicle fuel use tax imposed by chapter 46 of the Public Acts of 1989 shall be placed in the state highway fund, and shall not be subject to the apportionment and distribution provisions of subsections (a) and (b).
  4. (d) Revenue from the one cent (1¢) increase from sixteen cents (16¢) to seventeen cents (17¢) in the tax imposed by chapter 241 of the Public Acts of 1989, effective April 1, 1990, and all investment income derived therefrom, shall be placed in the state highway fund and shall not be subject to the apportionment and distribution provisions of subsections (a) and (b).
  5. (e) Revenues derived under § 67-3-202 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be apportioned and distributed in the following manner:
    1. (1) Seventeen and five-tenths percent (17.5%) to the various counties of the state on the basis set forth in § 54-4-103;
    2. (2) Eight and eight-tenths percent (8.8%) to the various municipalities, as defined by § 54-4-201, on the basis set forth in § 54-4-203; and
    3. (3) Seventy-three and seven-tenths percent (73.7%) to the highway fund.
  6. (f) Revenues derived under § 67-3-1113 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be distributed to the highway fund.
Backlinks (1)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2005
  • Acts 2017, ch. 181, § 21.
§ 67-3-906. Special privilege tax and export tax — Disposition of tax proceeds.
  1. (a) Ninety-eight percent (98%) of the proceeds from the collection of the taxes imposed by §§ 67-3-203 and 67-3-205 shall be allocated to and deposited in the highway fund and two percent (2%) of the proceeds in the general fund for administrative purposes.
  2. (b)
    1. (1) From the actual proceeds of the taxes, there is established a local government fund in the actual amount of twelve million seventeen thousand dollars ($12,017,000) which shall be distributed to the counties and cities monthly.
    2. (2) The local government fund shall be used solely for county roads and city streets.
    3. (3) From the local government fund, a monthly sum of three hundred eighty-one thousand five hundred eighty-three dollars ($381,583) shall be distributed to county highway departments on the basis of county population, and the monthly sum of six hundred nineteen thousand eight hundred thirty-three dollars ($619,833) shall be distributed to cities on the basis of city population.
    4. (4) Before distributing moneys to cities from the proceeds of the taxes imposed by §§ 67-3-203 and 67-3-205 as provided in this subsection (b), the commissioner of finance and administration shall deduct from the cities' share of the local government fund the sum of ten thousand dollars ($10,000) per month, which shall be allocated to the University of Tennessee for the Center for Government Training for the purpose of supporting in-service training for local government officials and employees.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2006.
§ 67-3-907. Environmental assurance fee — Disposition of fee proceeds.
  1. (a) The environmental assurance fee levied and collected pursuant to §§ 67-3-204 and 68-215-110 shall be collected by the department as provided in this chapter, except that the fees collected shall be for the underground storage tanks and solid waste disposal control board, as provided in title 68, chapter 215.
  2. (b) Any conflicts in the statutes as to the collection of the environmental assurance fee levied in title 68, chapter 215, shall be resolved in favor of this chapter, so as to avoid inconsistency and duplication in the administration of the various statutes which govern the environmental assurance fee.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2007.
§ 67-3-908. Liquified gas — Distribution of tax.
  1. (a) The tax imposed by chapter 203 of the Public Acts of 1983 shall be distributed as follows:
    1. (1) One and fifty-eight hundredths percent (1.58%) to the general fund;
    2. (2) Twenty-eight and twenty-eight hundredths percent (28.28%) to the counties to become a part of the county highway fund in the following manner:
      1. (A) Fifty percent (50%) equally among all counties;
      2. (B) Twenty-five percent (25%) on the basis of population; and
      3. (C) Twenty-five percent (25%) on the basis of area;
    3. (3) Fourteen and fourteen hundredths percent (14.14%) to municipalities, as defined in § 54-4-201, on the basis set out in § 54-4-203; and
    4. (4) Fifty-six percent (56%) to the highway fund.
  2. (b) Revenues from the increases in taxes imposed by chapter 931 of the Public Acts of 1986, shall be distributed and allocated as follows:
    1. (1) Revenue from the first three cents (3¢) per gallon of such increases in taxes shall be apportioned as follows:
      1. (A) Amounts required to be paid to the debt service fund pursuant to title 9, chapter 9; and
      2. (B) All other amounts to the highway fund to be used for accelerating the resurfacing of the state system of highways in order to establish a cycle of resurfacing during the period from 1986 to 1998; and for new construction in the primary system of highways; and
    2. (2) Revenue from one cent (1¢) of such increases in taxes shall be apportioned as follows:
      1. (A) Of such amount designated in subdivisions (b)(2)(B) and (C) for distribution to counties and cities, one percent (1%) shall be subtracted from the amount designated for counties and one percent (1%) shall be subtracted from the amount designated for cities for distribution to the general fund for expenses of administration prior to the distribution of the funds to the counties or cities;
      2. (B) Sixty-six and two-thirds percent (66 ⅔%) of such revenues collected to the various counties of the state on the basis set out in § 54-4-103; and
      3. (C) Thirty-three and one-third percent (33 ⅓%) of such revenues collected to the various municipalities, as defined by § 54-4-201, on the basis set out in § 54-4-203.
  3. (c) All revenues and investment income derived from the increase in the liquified gas tax imposed by chapter 46 of the Public Acts of 1989 shall be placed in the state highway fund, and shall not be subject to the apportionment and distribution provisions of subsections (a) and (b).
  4. (d) Revenues derived under § 67-3-1102 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be distributed to the highway fund.
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2008
  • Acts 2017, ch. 181, § 22.
§ 67-3-909. Commissioner's duty — Receipts and disbursals.
  1. The commissioner shall collect all taxes and fees accruing under this chapter and pay them to the state treasurer.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2009.
§ 67-3-910. Federal reservations — Application of petroleum products and alternative fuels taxes.
  1. (a) Under the terms of the cession of jurisdiction to the United States by this state, the right is reserved to this state to tax sales of and privileges of dealing in petroleum products and alternative fuels used in the operation of motor vehicles within the limits of the Great Smoky Mountains National Park that is within the boundaries of this state.
  2. (b) The right is reserved to this state to tax sales of and privileges of dealing in petroleum products and alternative fuels in operation of motor vehicles within limits of any reservation or preserve within the boundaries of this state.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2010.
§ 67-3-911. Lists — Furnishing by the commissioner.
  1. A current list of licensees, with applicable federal employer identification numbers, shall be provided to all licensees, as is deemed necessary by the commissioner. Disclosure of this information by the commissioner shall not constitute a violation of any confidentiality requirement imposed by chapter 1, part 17 of this title.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2011.
§ 67-3-912. Use of funds generated by 2017 increases.
  1. (a) It is the intent of the general assembly that all revenues derived from the increased taxes and fees imposed by chapter 181 of the Public Acts of 2017 on petroleum products and alternative fuels under this chapter and motor vehicle registration under title 55, chapter 4, shall be used to:
    1. (1) Maintain roads and bridges on the state highway system, including the interstate highway system;
    2. (2) Support economic development and promote the professional development needs of women and minorities through the construction of transportation facilities in accordance with the State Industrial Access Act, compiled in title 54, chapter 5, part 4, and the Local Interstate and Fully Controlled Access Highway Connector Act, compiled in title 54, chapter 5, part 5;
    3. (3) Maintain public roads and bridges within the boundaries of parks, as defined by § 11-3-101, administered by the department of environment and conservation;
    4. (4) Support local government investment in transit programs to improve regional transit services across the state and help manage congestion along major highways;
    5. (5) Assist rural transit providers in improving the efficiency of demand response services;
    6. (6) Support projects and programs identified in the department of transportation's annual transportation improvement program submitted to the general assembly in support of the department's annual budget and as approved in the annual appropriations acts; and
    7. (7) Fund the development and construction of the projects listed in subsection (b).
  2. (b) The projects to be developed and constructed in accordance with this section are identified by county, route number, project description, and project location, including beginning log mile (LM) where applicable, as follows:
    1. (1) Anderson County, Route 04365, Briar Cliff Avenue bridge over branch, LM 1.470;
    2. (2) Anderson County, Route 0A276, Old State Circle bridge over Bull Run Creek, LM 0.390;
    3. (3) Anderson County, Route 0A460, Meadow Street bridge over Right Fork Coal Creek, LM 0.108;
    4. (4) Anderson County, I-75, ITS instrumentation at SR-61 (Andersonville Highway, Exit 122) interchange;
    5. (5) Anderson County, SR-170, from SR-9/US-25W (Clinton Highway) to SR-62 (Oak Ridge Highway);
    6. (6) Anderson County, SR-61, State Highway 61 bridge over Brushy Creek, LM 3.980;
    7. (7) Anderson County, US-25W (SR-9), bridge over Bull Run Creek, LM 16.100;
    8. (8) Bedford County, Route 0A048, Roy Moore Road bridge over North Fork Creek, LM 0.379;
    9. (9) Bedford County, Route 0A122, Gregory Mill Road bridge over Fall Creek, LM 0.892;
    10. (10) Bedford County, Route 0A170, Kellertown Road bridge over Straight Creek, LM 0.713;
    11. (11) Bedford County, Route 0A233, Rowesville Church Road bridge over Shippman Creek, LM 0.065;
    12. (12) Bedford County, Route 0A390, Fosterville Road bridge over Bell Buckle Creek, LM 2.019;
    13. (13) Bedford County, Route 0A468, Horse Mountain Road bridge over Pannell Creek, LM 4.404;
    14. (14) Bedford County, Route 0A664, Old Highway 64 bridge over Stokes Branch, LM 0.113;
    15. (15) Bedford County, SR-269, Normandy to Tullahoma Road bridge over Carr Branch, LM 18.960;
    16. (16) Bedford County, SR-437, (Shelbyville Bypass) from US-231 (SR-10) to US-41A (SR-16);
    17. (17) Bedford County, SR-64, Walking Horse Parkway bridge over Sugar Creek, LM 9.450;
    18. (18) Bedford County, US-41A (SR-16), (Madison Street) from SR-64 East of Shelbyville to Jenkins Road;
    19. (19) Bedford County, US-41A (SR-16), bridge over Hook Creek, LM 9.540;
    20. (20) Benton County, Route 00911, Lower Sandy Road bridge over Ramble Creek, LM 15.720;
    21. (21) Benton County, Route 01753, Sulphur Creek Road bridge over Sulphur Creek, LM 6.870;
    22. (22) Benton County, Route 0A156, Mt. Zion Church Road bridge over Sulphur Creek, LM 0.084;
    23. (23) Benton County, Route 0A197, Frazier Street bridge over Charlie Creek, LM 0.215;
    24. (24) Benton County, Route 0A439, Fern Avenue bridge over Cane Creek, LM 1.264;
    25. (25) Benton County, I-40, Decatur-Benton county line to SR-191 (Birdsong Road);
    26. (26) Benton County, I-40, Benton County rest area renovation;
    27. (27) Benton County, SR-147, Danville Road bridge over Dry Creek, LM 1.830;
    28. (28) Benton County, US-70 (SR-1), from Camden Bypass to Tennessee River;
    29. (29) Benton and Houston counties, SR-147, ferry service across the Tennessee River, SR-69A to SR-147;
    30. (30) Bledsoe County, Route 02174, Old Highway 28 bridge over Swafford Branch, LM 4.390;
    31. (31) Bledsoe County, Route 0A068, Alvin York Highway bridge over branch, LM 13.012;
    32. (32) Bledsoe County, Route 0A310, Ray Hixson Road bridge over branch, LM 0.741;
    33. (33) Blount County, SR-162, (Pellissippi Pkwy.) from SR-33 to SR-73 (US-321);
    34. (34) Blount County, SR-336, (Montvale Rd.) from Montvale Station Road to SR-73 (Lamar Alexander Parkway);
    35. (35) Blount County, US-129 (SR-115), (bypass) from SR-73 (Lamar Alexander Parkway) to SR-35;
    36. (36) Blount County, US-129 (SR-115), (Alcoa Highway) from Pellissippi Parkway (SR-162) to north of Little River;
    37. (37) Blount County, US-129 (SR-115), (Relocated Alcoa Highway) from Hall Road (SR-35), south of Airport Road to proposed interchange at Tyson Boulevard;
    38. (38) Blount County, US-129 (SR-115), (Relocated Alcoa Highway) from proposed interchange at Tyson Boulevard to SR-162 (Pellissippi Parkway);
    39. (39) Blount County, US-129 (SR-115), (Relocated Alcoa Highway) from SR-162 (Pellissippi Parkway) to existing SR-115 at Singleton Station Road;
    40. (40) Blount and Knox counties, I-140, ITS expansion from I-140 mile marker 2 to SR-115 (US-129, Alcoa Highway, Exit 11);
    41. (41) Blount and Knox counties, US-129 (SR-115), ITS expansion from I-140 in Blount County to Cherokee Trails in Knox County;
    42. (42) Blount and Sevier counties, Foothills Parkway, (Missing Link) from US-321 near Walland to US-321 near Wears Valley (joint project with National Parks Service);
    43. (43) Bradley County, Route 02265, Chatata Valley Road bridge over Chatata Creek, LM 5.420;
    44. (44) Bradley County, Route 04615, 20th Street N.E. bridge over Little Chatata Creek, LM 0.090;
    45. (45) Bradley County, Route 0A003, Lead Mine Valley Road bridge over Black Fox Creek, LM 4.752;
    46. (46) Bradley County, Route 0A062, Brymer Creek Road bridge over Brymer Creek, LM 2.979;
    47. (47) Bradley County, Route 0A234, Pleasant Grove Place bridge over Candies Creek, LM 0.563;
    48. (48) Bradley County, Route 0D947, Tunnel Hill Road bridge over Black Fox Creek, LM 6.157;
    49. (49) Bradley County, Route I-75, Cleveland urban boundary to Bradley-McMinn county line;
    50. (50) Bradley County, Route I-75, truck climbing lane southbound at White Oak Mountain;
    51. (51) Bradley County, Route SR-60, (Georgetown Road) from 4-Lane north of I-75 (Westlake Drive) to SR-306;
    52. (52) Bradley County, SR-60, Georgetown Road N.W. bridge over Candies Creek, LM 18.580;
    53. (53) Bradley County, Route US-11 (SR-2), from near Anatole Lane to SR-308 in Charleston;
    54. (54) Bradley, Hamilton, and Meigs counties, SR-60, from SR-306 to SR-58 in Hamilton County;
    55. (55) Campbell County, Route 01278, Towe String Road bridge over private road, LM 3.770;
    56. (56) Campbell County, Route 01282, Davis Creek Road bridge over Davis Branch, LM 5.000;
    57. (57) Campbell County, Route 01282, Davis Creek Road bridge over Davis Branch, LM 5.270;
    58. (58) Campbell County, Route 02425, Old Highway 63 bridge over Titus Creek, LM 7.970;
    59. (59) Campbell County, Route 0A080, Old Stinking Creek Road bridge over Stinking Creek, LM 0.785;
    60. (60) Campbell County, Route 0A247, D.W. Baird Lane bridge over Stinking Creek, LM 0.292;
    61. (61) Campbell County, Route 0B001, Dossett Lane bridge over CSX Railroad at LM 0.26 in LaFollette, LM 0.200;
    62. (62) Campbell County, I-75, from Anderson-Campbell county line to SR-9 (Appalachian Highway) right and 2425 Royal Blue Road left;
    63. (63) Campbell County, I-75, ITS expansion at SR-63 (Howard Baker Road, Exit 141) interchange;
    64. (64) Campbell County, I-75, implement a fog and severe weather detection system on I-75 over Jellico Mountain;
    65. (65) Campbell County, I-75, ITS expansion at SR-9/SR-116 (US-25W, Exit 134) interchange;
    66. (66) Campbell County, SR-63, (Howard Baker Highway) from Scott County line to I-75;
    67. (67) Campbell County, SR-63, (General Carl W. Stiner Highway) from LaFollette urban boundary to Frontier Road/Woodson Lane;
    68. (68) Campbell County, SR-63, (General Carl W. Stiner Hwy.) from Frontier Road/Woodson Lane to Claiborne County line;
    69. (69) Campbell County, Route 0A622, North 11th Street bridge over CSX Railroad in LaFollette, LM 0.270;
    70. (70) Cannon County, Route 01376, Murfreesboro Road bridge over branch, LM 4.020;
    71. (71) Cannon County, Route 0A014, McAllister Lane bridge over Sanders Fork Creek, LM 0.016;
    72. (72) Cannon County, Route 0A021, Marshall Creek Road bridge over Marshall Creek, LM 2.461;
    73. (73) Cannon County, Route 0A059, Blair Branch Road bridge over Blair Creek, LM 0.772;
    74. (74) Cannon County, Route 0A090, Tate Road bridge over Connell Creek, LM 0.024;
    75. (75) Cannon County, Route 0A141, Bullpen Road bridge over Bullpen Creek, LM 1.746;
    76. (76) Cannon County, Route 0A181, Gilley Hill Road bridge over Brawleys Fork Creek, LM 2.702;
    77. (77) Cannon County, Route 0A184, Howard Youree Road bridge over Dug Branch, LM 0.057;
    78. (78) Cannon County, Route 0A293, Jack Barnes Road bridge over Hurricane Creek, LM 0.005;
    79. (79) Cannon County, Route 0A316, Castle Point bridge over Leach Creek, LM 0.215;
    80. (80) Cannon County, Route 0A331, Polly Campbell Road bridge over Wilmore Creek, LM 0.010;
    81. (81) Cannon County, Route 0A332, Curtis George Road bridge over Wilmore Creek, LM 0.010;
    82. (82) Cannon County, Route 0A354, Ferrell Bridge Lane bridge over East Fork Stones River, LM 0.010;
    83. (83) Cannon County, US-70S (SR-1), W. Main Street bridge over East Fork Stones River, LM 6.150;
    84. (84) Cannon County, US-70S (SR-1), (W. Main Street) from west of Woodbury to new SR-1 (US-70S) east of Woodbury;
    85. (85) Carroll County, Route 0A393, Hollow Rock Branch Road bridge over Hollow Rock Branch, LM 0.344;
    86. (86) Carroll County, SR-436, Reedy Creek Road bridge over Reedy Creek, LM 0.680;
    87. (87) Carroll County, US-79 (SR-76), (Broad Street S.) from east of SR-77 to west of Cutlip Lane;
    88. (88) Carroll County, US-79 (SR-76), (Broad Street N.) from west of Cutlip Lane to west of Sydnor/Winston Road;
    89. (89) Carter County, Route 01385, Smalling Road bridge over Watauga River, LM 1.990;
    90. (90) Carter County, Route 02609, Governor Alfred Taylor Road bridge over Buffalo Creek, LM 3.510;
    91. (91) Carter County, Route 02680, Cove Creek Road bridge over Doe River, LM 0.570;
    92. (92) Carter County, Route 04833, Southside Road bridge over Gap Creek, LM 1.140;
    93. (93) Carter County, Route 0A102, Big Sandy Road bridge over Stoney Creek, LM 0.618;
    94. (94) Carter County, Route 0A250, Reeser Road bridge over Buffalo Creek, LM 0.107;
    95. (95) Carter County, Route 0A373, Hillside Drive bridge over Doe River, LM 0.020;
    96. (96) Carter County, Route 0A618, Paul Blevins Road bridge over Tiger Creek, LM 0.030;
    97. (97) Carter County, Route 0A634, Railroad Grade Road bridge over Bear Gage Road/Doe River, LM 1.757;
    98. (98) Carter County, Route 0A642, Crabtree Road bridge over George Creek, LM 0.625;
    99. (99) Carter County, Route 0A656, Sugar Hollow Road bridge over Doe River, LM 0.009;
    100. (100) Carter County, Route 0A724, Stevens Road bridge over Little Doe River, LM 0.087;
    101. (101) Carter County, Route 0A746, Old SR-67 bridge over Laurel Fork Creek, LM 0.294;
    102. (102) Carter County, Route 0A752, Stout Hollow Road bridge over Laurel Fork Creek, LM 0.008;
    103. (103) Carter County, Route 0A765, Dennis Cove Road bridge over Laurel Fork Creek, LM 4.520;
    104. (104) Carter County, Route 0A767, Crow Road bridge over Laurel Fork Creek, LM 0.023;
    105. (105) Carter County, Route 0A869, Earl Williams Road bridge over Stoney Creek, LM 0.561;
    106. (106) Carter County, Route 0A906, Danner Subdivision Road bridge over Stoney Creek, LM 0.393;
    107. (107) Carter County, Route 0A961, Ensor Graveyard Road bridge over Stoney Creek, LM 0.018;
    108. (108) Carter County, Route 0A967, Blevins Hollow Road bridge over Stoney Creek, LM 0.048;
    109. (109) Carter County, Route 0A972, Estep Hollow Road bridge over Stoney Creek, LM 0.110;
    110. (110) Carter County, Route 0A974, Estep Loop bridge over Stoney Creek, LM 1.614;
    111. (111) Carter County, Route 0A984, Big Sandy Road bridge over Stoney Creek, LM 0.058;
    112. (112) Carter County, Route 0B001, Honeycutt Street bridge over Doe River, LM 0.017;
    113. (113) Carter County, Route 0B085, Powell Road bridge over Hampton Creek, LM 0.015;
    114. (114) Carter County, Route OC102, Hopson Road bridge over Little Doe Creek, LM 0.015;
    115. (115) Carter County, SR-362, Gap Creek Road bridge over Gap Creek, LM 3.845;
    116. (116) Carter County, US-321 (SR-91), (W. Elk Avenue) from SR-67 (US-321) to SR-37 (US-19E);
    117. (117) Cheatham County, Route 0A226, Dry Fork Road bridge over Dry Fork Creek, LM 2.401;
    118. (118) Cheatham County, Route 0A235, Little Marrowbone Road bridge over Marrowbone Creek, LM 0.579;
    119. (119) Cheatham County, Route 0A372, S. Harpeth Road bridge over Brush Creek, LM 1.267;
    120. (120) Cheatham County, Route 0A506, Lost Hollow Lane bridge over South Harpeth River, LM 0.010;
    121. (121) Cheatham County, I-24, truck climbing lane from LM 0.05 - LM 0.57;
    122. (122) Cheatham County, I-24, Exit 31 ramp improvements;
    123. (123) Cheatham County, I-40, bridge over Harpeth River (eastbound), LM 4.080;
    124. (124) Cheatham County, I-40, bridge over Harpeth River (westbound), LM 4.080;
    125. (125) Cheatham County, I-40, from SR-249 (Luyben Hills Road) to Cheatham-Davidson county line;
    126. (126) Cheatham County, SR-249, Sams Creek Road bridge over Dry Creek, LM 11.540;
    127. (127) Cheatham County, SR-249, Jackson Felts Road bridge over New Hope Road/I-24, LM 26.020;
    128. (128) Cheatham County, SR-49, from SR-12 to I-24 (spot improvements);
    129. (129) Chester County, Route 01679, Talley Store Road, three bridges over Jacks Creek, LM 2.510;
    130. (130) Chester County, Route 0A035, Sanford Road bridge over Turkey Creek, LM 0.840;
    131. (131) Chester County, Route 0A253, Old Jacks Creek Road bridge over Jacks Creek, LM 3.581;
    132. (132) Chester County, SR-100, bridge over South Fork Forked Deer River, LM 14.160;
    133. (133) Chester County, SR-100, bridge over Dry Branch, LM 16.030;
    134. (134) Chester County, SR-100, (W. Main Street) from SR-5 to Church Street (Old US-5) in Henderson;
    135. (135) Chester, Henderson, and McNairy counties, SR-22, safety improvements from SR-69 in Milledgeville to SR-100 in Chester County;
    136. (136) Claiborne County, Route 02503, Hoop Creek Road bridge over Hoop Creek, LM 1.580;
    137. (137) Claiborne County, Route 0A051, Y Hollow Road bridge over Clear Fork, LM 0.057;
    138. (138) Claiborne County, Route 0A250, Bucklick Lane bridge over Big Sycamore Creek, LM 0.356;
    139. (139) Claiborne County, Route 0A497, Academy Road bridge over Davis Creek, LM 0.343;
    140. (140) Claiborne County, SR-33, bridge over South Fork Sycamore Creek, LM 20.560;
    141. (141) Claiborne County, SR-63, from Campbell County line to Hall Lane;
    142. (142) Claiborne County, SR-63, from west of Old Town Creek to SR-32 (US-25E);
    143. (143) Claiborne County, US-25E (SR-32), (Dixie Highway) interchange at SR-345;
    144. (144) Clay County, Route A053, John Butler Road bridge over Proctor Branch, LM 0.160;
    145. (145) Clay County, Route 0A210, Wet Mill Creek Road bridge over Mill Creek, LM 7.298;
    146. (146) Cocke County, Route 01326, Morrell Springs Road bridge over I-40, LM 2.230;
    147. (147) Cocke County, Route 02513, Briarthicket Road bridge over Knob Creek, LM 2.950;
    148. (148) Cocke County, Route 02570, Old State Highway 32 bridge over Cosby Creek, LM 0.100;
    149. (149) Cocke County, Route 0A055, Chemwood Drive bridge over Sinking Creek, LM 0.089;
    150. (150) Cocke County, Route 0A136, Saint Tide Hollow Road bridge over Clear Creek, LM 0.903;
    151. (151) Cocke County, Route 0A238, Old Long Creek Road bridge over Long Creek, LM 0.621;
    152. (152) Cocke County, Route 0A261, Toms Creek Road bridge over Trail Fork Big Creek, LM 3.486;
    153. (153) Cocke County, Route 0A264, Spicewood Flats Road bridge over Trail Fork Big Creek, LM 0.050;
    154. (154) Cocke County, Route 0A276, Stokley Cemetery Road bridge over Trail Fork Big Creek, LM 0.008;
    155. (155) Cocke County, Route 0A277, Sterling Road bridge over Trail Fork Big Creek, LM 0.091;
    156. (156) Cocke County, Route 0A407, Caney Creek Road bridge over Cosby Creek, LM 0.013;
    157. (157) Cocke County, Route 0A408, Liberty Road bridge over Cosby Creek, LM 1.207;
    158. (158) Cocke County, Route 0A445, Middle Creek Road bridge over Cosby Creek, LM 0.029;
    159. (159) Cocke County, Route 0A447, Ball Park Road bridge over Cosby Creek, LM 0.277;
    160. (160) Cocke County, Route 0A495, Old SR-35 bridge over Clear Creek, LM 1.140;
    161. (161) Cocke County, Route 0A909, Briarthicket Road bridge over Nolichucky River, LM 1.113;
    162. (162) Cocke County, I-40, interchange at O'Neil Road;
    163. (163) Cocke County, I-40, bridge over Green Corner Road (1321), LM 21.000;
    164. (164) Cocke County, I-40, bridge over SR-9, LM 1.800;
    165. (165) Cocke County, I-40, ITS rural development on I-40 to state line;
    166. (166) Cocke County, I-40, Hartford welcome center renovation;
    167. (167) Cocke County, SR-160, bridge over Nolichucky River, LM 11.870;
    168. (168) Cocke County, US-25/70(SR-9), E. Broadway bridge over Pigeon River, LM 6.820;
    169. (169) Cocke County, US-321 (SR-32), (Cosby Highway) from SR-73 at Cosby to Wilton Springs Road;
    170. (170) Cocke County, US-321 (SR-35), (Newport Bypass) from US-70 (SR-9) to Saint Tide Hollow Road;
    171. (171) Coffee County, Route 00918, Wattendorf Memorial Highway bridge over A.E.D.C. Road/I-24, LM 7.670;
    172. (172) Coffee County, Route 01111, Cat Creek Road bridge over Crumpton Creek, LM 6.990;
    173. (173) Coffee County, Route 0A049, W. Grundy Street bridge over North Fork Rock Creek, LM 0.174;
    174. (174) Coffee County, Route 0A409, Norton Branch Road bridge over Norton Branch, LM 0.813;
    175. (175) Coffee County, Route 0A440, Duncan Road bridge over Perry Creek, LM 0.902;
    176. (176) Coffee County, Route 0B188, Camp Ground Lane bridge over Duck River (OSFSP), LM 0.030;
    177. (177) Coffee County, SR-127, Winchester Highway bridge over Bradley Creek, LM 4.660;
    178. (178) Coffee County, SR-55, (Wilson Avenue) from First Avenue in Tullahoma to SR-16 (US-41A) north of Jackson Street;
    179. (179) Coffee County, US-41 (SR-2), (Hillsboro Highway) from Joe Hickerson Road to Arnold Center Road;
    180. (180) Coffee County, US-41 (SR-2), Hillsboro Road bridge over Caney Fork and Western Railroad, LM 14.280;
    181. (181) Crockett County, Route 0A078, Reynolds Road bridge over Pond Creek, LM 1.082;
    182. (182) Crockett County, Route 0A081, Beaver Road bridge over branch, LM 2.800;
    183. (183) Crockett County, Route 0A119, Walter Taylor Road bridge over Rice Creek, LM 2.099;
    184. (184) Crockett County, Route 0A170, Kenner Road bridge over branch, LM 0.840;
    185. (185) Crockett County, Route 0A191, Warren Road bridge over branch of Cypress Creek, LM 1.894;
    186. (186) Crockett County, Route 0A308, County Line Road bridge over branch, LM 0.270;
    187. (187) Cumberland County, Route 02202, Browntown Road bridge over Pokepatch Creek, LM 3.130;
    188. (188) Cumberland County, Route 02289, Wightman Road bridge over Duncan Creek, LM 3.590;
    189. (189) Cumberland County, I-40, Cumberland County rest area renovation;
    190. (190) Cumberland County, SR-462, (Northwest Connector) from US-127 (SR-28) to SR-298;
    191. (191) Cumberland County, SR-462, (Northwest Connector) from US-70N (SR-24) to US-127 (SR-28) in Crossville;
    192. (192) Cumberland County, US-127 (SR-28), from north of I-40 to near Potato Farm Road;
    193. (193) Cumberland County, US-127 (SR-28), from near Potato Farm Road to near Hollow Lane;
    194. (194) Cumberland County, US-127 (SR-28), from near Hollow Lane to near Lowe Road;
    195. (195) Cumberland County, US-70 (SR-1), Sparta Highway bridge over Obed River, LM 12.720;
    196. (196) Cumberland County, US-70N (SR-24), West Avenue bridge over Obed River, LM 15.370;
    197. (197) Cumberland and Fentress counties, US-127 (SR-28), (S. York Highway) from Near Lowe Road in Cumberland County to near Little Road in Clarkrange;
    198. (198) Cumberland and Putnam counties, I-40, ITS expansion at Rockwood Mountain;
    199. (199) Davidson County, I-24, bridge over Mill Creek, LM 23.360;
    200. (200) Davidson County, I-24, bridge over North First Street, LM 13.970;
    201. (201) Davidson County, I-24, bridge (left lanes) over Cumberland River, LM 15.420;
    202. (202) Davidson County, I-24, bridge over Seven Mile Creek, LM 19.200;
    203. (203) Davidson County, I-24, bridge (right lanes) over Old Hickory Boulevard, LM 8.510;
    204. (204) Davidson County, I-24, bridge (left lanes) over Old Hickory Boulevard, LM 8.510;
    205. (205) Davidson County, I-24, bridge (right lanes) over Cumberland River, LM 15.420;
    206. (206) Davidson County, I-24, interchange modification at Hickory Hollow Parkway;
    207. (207) Davidson County, I-24, ramp improvements at Exits 35, 40, 57, 59, and 60;
    208. (208) Davidson County, I-24, Harding Place interchange reconfiguration;
    209. (209) Davidson County, I-24, from North First Street to Trinity Lane;
    210. (210) Davidson County, I-24, from Old Hickory Boulevard (SR-45) to I-65, Exit 40 to Exit 44;
    211. (211) Davidson County, I-40, SR-255 (Donelson Pike) relocation from taxiway bridges over existing Donelson Pike to I-40;
    212. (212) Davidson County, I-40, Structure 5B bridge over I-24, LM 21.580;
    213. (213) Davidson County, I-40, Structure 79 bridge over I-65 ramp, LM 18.390;
    214. (214) Davidson County, I-40, bridge over Nashville and Eastern Railroad, LM 20.050;
    215. (215) Davidson County, I-40, Structure 80 bridge over I-40 ramp, LM 18.470;
    216. (216) Davidson County, I-40, bridge over Browns Creek, LM 20.150;
    217. (217) Davidson County, I-40, bridge over SR-11, SR-1, and Second Avenue South, LM 18.860;
    218. (218) Davidson County, I-40, Bridge Over Mill Creek, LM 22.350;
    219. (219) Davidson County, I-40, Structure 13 bridge over I-65 and I-65 ramp, LM 16.140;
    220. (220) Davidson County, I-40, from McCrory Lane (Exit 192) to just west of SR-1/US-70S (Exit 196);
    221. (221) Davidson County, I-440, pavement replacement and safety improvements;
    222. (222) Davidson County, I-65, bridge over abandoned railroad, LM 9.850;
    223. (223) Davidson County, I-65, bridge over Cumberland River and Cowan Street, LM 10.240;
    224. (224) Davidson County, SR-11/US-31W, (Dickerson Pike) from Fannin Drive to Old Stone Bridge Road to include the CSX Railroad overpass structure;
    225. (225) Davidson County, US-31A/41A (SR-11), (Nolensville Pike) from north of Mill Creek to near SR-254 (Old Hickory Boulevard);
    226. (226) Davidson County, US-31A/41A (SR-11), Nolensville Pike bridge over CSX Railroad, LM 10.240;
    227. (227) Davidson County, US-31E (SR-6), Ellington Parkway bridge over CSX Railroad, LM 12.320;
    228. (228) Davidson County, US-31E (SR-6), Gallatin Pike bridge over Mansker Creek, LM 22.840;
    229. (229) Davidson County, US-41A (SR-112), from SR-12 (Ashland City Highway) to SR-155 (Briley Parkway);
    230. (230) Davidson County, US-41A (SR-112), Clarksville Pike bridge over Whites Creek, LM 0.550;
    231. (231) Davidson County, US-431/70/70S (SR-1), (Broadway) bridge over 11th Avenue South and CSX Railroad, LM 17.290;
    232. (232) Davidson County, US-70 (SR-24), (Charlotte Pike) from White Bridge Road to American Road;
    233. (233) Davidson County, US-70 (SR-24), (Charlotte Pike) from American Road to I-40;
    234. (234) Davidson County, US-70 (SR-24), (Charlotte Pike) from I-40 to Old Hickory Boulevard;
    235. (235) Davidson, Dickson, Cheatham, Williamson, and Wilson counties, I-40, ITS expansion from US-70S (Exit 196) to I-840, and from SR-255 (Donelson Pike, Exit 216) to US-70 (Exit 239);
    236. (236) Davidson and Rutherford counties, I-24, congestion reduction from I-40 in Davidson County to I-840 in Rutherford County;
    237. (237) Davidson, Sumner, and Robertson counties, I-65, from Nashville to Kentucky state line;
    238. (238) Decatur County, Route 0A295, Pete Tucker Loop bridge over Turnbo Creek, LM 0.830;
    239. (239) DeKalb County, Route 0A095, Holmes Creek Road bridge over Fall Creek, LM 6.060;
    240. (240) DeKalb County, Route 0A330, Old Dry Creek Road bridge over Dry Creek, LM 3.648;
    241. (241) DeKalb and Wilson counties, US-70 (SR-26), (Nashville Highway) from west of Wilson County line to near SR-96 in DeKalb County;
    242. (242) Dickson County, Route 01854, East Piney Road bridge over East Fork Piney River, LM 4.210;
    243. (243) Dickson County, Route 0A177, Old Highway 47 bridge over Town Branch, LM 0.070;
    244. (244) Dickson County, I-40, Dickson rest area renovation;
    245. (245) Dickson County, I-840, from I-40 to SR-96;
    246. (246) Dickson County, SR-46, Yellow Creek Road bridge over branch, LM 15.740;
    247. (247) Dickson County, SR-46, Yellow Creek Road bridge over Yellow Creek, LM 19.060;
    248. (248) Dyer County, Route 01495, Unionville Road bridge over overflow, LM 2.480;
    249. (249) Dyer County, Route 0A208, Spence Spur Road bridge over drainage ditch, LM 2.370;
    250. (250) Dyer County, Route 0A230, McGee Road bridge over slough, LM 1.090;
    251. (251) Dyer County, Route 0A264, Hartsfield Road bridge over branch, LM 0.890;
    252. (252) Dyer County, Route 0A282, Pace Road bridge over Mulherin Creek, LM 2.159;
    253. (253) Dyer County, Route 0A333, Blankenship Road bridge over Mulherin Creek, LM 0.950;
    254. (254) Dyer County, Route 0A493, Earl Carter Road bridge over McBride Creek, LM 1.550;
    255. (255) Dyer County, Route 0A498, Meadow Road bridge over branch, LM 0.026;
    256. (256) Dyer County, Route 0A616, Lovejoy Road bridge over drainage ditch, LM 1.000;
    257. (257) Dyer County, I-155, Dyersburg welcome center renovation;
    258. (258) Dyer County, SR-104, from US-412 (SR-20) in Dyersburg to east of Don Hurley Road;
    259. (259) Dyer County, SR-104, from east of Don Hurley Road to Old SR-104 near the Gibson County line;
    260. (260) Dyer County, SR-211, South Main Avenue bridge over overflow, LM 1.310;
    261. (261) Dyer County, SR-211, South Main Avenue bridge over North Fork Forked Deer River, LM 1.710;
    262. (262) Dyer County, SR-211, (West Main Street) from US-412 in Dyersburg to SR-77 in Newbern;
    263. (263) Fayette County, Route 00840, Old Jackson Road bridge over Big Muddy Creek, LM 6.690;
    264. (264) Fayette County, Route 01442, La Grange Road bridge over Wolf River overflow, LM 6.220;
    265. (265) Fayette County, Route 01442, La Grange Road bridge over branch, LM 9.390;
    266. (266) Fayette County, Route 01454, Raleigh-La Grange Road East bridge over branch, LM 5.260;
    267. (267) Fayette County, Route 01474, Thorpe Drive bridge over branch, LM 6.740;
    268. (268) Fayette County, Route 01540, Yager Drive bridge over branch, LM 0.380;
    269. (269) Fayette County, Route 01553, Old Jackson Road bridge over Bear Creek, LM 2.970;
    270. (270) Fayette County, Route 02706, McKinstry Road bridge over overflow, LM 8.120;
    271. (271) Fayette County, Route 0A043, Old Fifty Nine Drive bridge over branch, LM 4.157;
    272. (272) Fayette County, Route 0A070, Tomlin Road bridge over Treadville Creek, LM 1.421;
    273. (273) Fayette County, Route 0A091, Old Jackson Road bridge over Little Creek, LM 0.440;
    274. (274) Fayette County, Route 0A094, Caldwell Drive bridge over London Creek, LM 0.071;
    275. (275) Fayette County, Route 0A119, Bailey Morrison Drive bridge over Gregg Creek, LM 2.142;
    276. (276) Fayette County, Route 0A127, Finnie Drive bridge over branch, LM 0.261;
    277. (277) Fayette County, Route 0A129, Sardis Drive bridge over branch of North Fork Wolf River, LM 2.464;
    278. (278) Fayette County, Route 0A136, Newcastle Drive bridge over branch of Morrow Creek, LM 1.182;
    279. (279) Fayette County, Route 0A149, Buford Ellington Road bridge over North Fork Creek, LM 0.295;
    280. (280) Fayette County, Route 0A204, Hayes Road bridge over Sandy Creek, LM 0.271;
    281. (281) Fayette County, Route 0A208, Chapel Road bridge over overflow, LM 0.128;
    282. (282) Fayette County, Route 0A232, Johnson Drive bridge over Hurricane Creek, LM 3.051;
    283. (283) Fayette County, Route 0A235, Knox Road bridge over branch, LM 2.994;
    284. (284) Fayette County, Route 0A257, Mebane Road bridge over drainage ditch, LM 1.214;
    285. (285) Fayette County, Route SR-193, Macon Road bridge over branch, LM 11.480;
    286. (286) Fayette County, Route SR-460, (Somerville Beltway) from US-64 (SR-15) west of Somerville to US-64 (SR-15) east of Somerville;
    287. (287) Fentress County, Route 02316, Little Crab Road bridge over Little Crab Creek, LM 9.450;
    288. (288) Fentress County, Route 0A063, Wolf River Loop bridge over Rotten Fork Wolf River, LM 0.416;
    289. (289) Fentress County, Route 0A073, Rotten Fork Road bridge over Rotten Fork Wolf River, LM 0.135;
    290. (290) Fentress County, Route 0A196, Glen Obey Road bridge over Rock Castle Creek, LM 4.066;
    291. (291) Fentress County, Route 0A198, Gwinn Branch Road bridge over Rock Castle Creek, LM 0.094;
    292. (292) Fentress County, Route 0A302, Vines Ridge Road bridge over Big Laurel Creek, LM 1.060;
    293. (293) Fentress County, SR-85, Wilder Road bridge over East Fork Obey River, LM 5.670;
    294. (294) Fentress County, US-127 (SR-28), (South York Highway) from near Little Road in Clarkrange to near Kilby Road;
    295. (295) Fentress and Pickett counties, US-127 (SR-28), (South York Highway) spot improvements from north of Jamestown to SR-111;
    296. (296) Franklin County, Route 0A406, Old Decherd Road bridge over Wagner Creek, LM 0.259;
    297. (297) Gibson County, Route 00860, Concord-Cades Road bridge over Mays Creek, LM 6.500;
    298. (298) Gibson County, Route 01401, Keeley Mill Road bridge over overflow, LM 3.350;
    299. (299) Gibson County, Route 01585, Salem Church Road bridge over overflow, LM 1.360;
    300. (300) Gibson County, Route 01592, Old Trenton-Eaton Road bridge over Branch Buck Creek, LM 8.300;
    301. (301) Gibson County, Route 01594, Old Dyersburg Road bridge over drainage ditch, LM 7.230;
    302. (302) Gibson County, Route 01596, New Bethlehem Road bridge over branch, LM 6.360;
    303. (303) Gibson County, Route 0A029, Happy Hollow Road bridge over York Branch, LM 0.280;
    304. (304) Gibson County, Route 0A044, Esquire Green Road bridge over drainage ditch/Cow Creek, LM 0.987;
    305. (305) Gibson County, Route 0A076, Conover Needham Road bridge over Edmundson Creek, LM 1.664;
    306. (306) Gibson County, Route 0A077, Saw Mill Lane bridge over Edmundson Creek, LM 0.380;
    307. (307) Gibson County, Route 0A159, Robert R. Thornton Road bridge over Owen Branch, LM 1.363;
    308. (308) Gibson County, Route 0A161, Boham Road bridge over branch of Rutherford Fork Obion, LM 2.251;
    309. (309) Gibson County, Route 0A199, Old Dyer-Yorkville Road bridge over Sand Creek, LM 1.256;
    310. (310) Gibson County, Route 0A211, Nee Road bridge over Cow Creek, LM 0.371;
    311. (311) Gibson County, Route 0A215, Shanklin Road bridge over Camp Creek, LM 2.124;
    312. (312) Gibson County, Route 0A224, Skiff Barton Road bridge over branch of Camp Creek, LM 0.470;
    313. (313) Gibson County, Route 0A254, Wildcat Lane Road bridge over Locust Grove Creek, LM 1.459;
    314. (314) Gibson County, Route 0A0262, Peavine Road bridge over overflow, LM 2.050;
    315. (315) Gibson County, Route 0A323, Idlewild-Holly Leaf Road bridge over branch of Thompson Creek, LM 2.658;
    316. (316) Gibson County, Route 0A349, Thetford Road bridge over branch of Rutherford Fork, LM 1.390;
    317. (317) Gibson County, Route 0A364, Powell Road bridge over ditch, LM 1.042;
    318. (318) Gibson County, Route 0A376, Old SR-104 bridge over overflow, LM 0.097;
    319. (319) Gibson County, Route 0A380, East Airport Road bridge over branch of North Fork Forked Deer River, LM 0.263;
    320. (320) Gibson County, Route 0A711, Bob Hazelwood Road bridge over Hog Creek, LM 1.990;
    321. (321) Gibson County, 0A715, Paul Price Road bridge over Wallsmith Branch, LM 1.128;
    322. (322) Gibson County, 0A725, Casey Road bridge over Parker Branch, LM 0.604;
    323. (323) Gibson County, 0A738, Esquire Hunt Road bridge over branch of Barnett Branch, LM 2.047;
    324. (324) Gibson County, 0A745, Mag Duffy Road bridge over Duffy Branch, LM 1.007;
    325. (325) Gibson County, Route 0A925, Daisy Donaldson Road bridge over branch, LM 0.795;
    326. (326) Gibson County, Route 0A960, Quincy Butler Road bridge over branch of Middle Fork Forked Deer, LM 0.219;
    327. (327) Gibson County, Route 0A978, Gumwoods Road bridge over branch, LM 2.350;
    328. (328) Gibson County, Route 0A982, Gumwoods Road bridge over branch, LM 1.885;
    329. (329) Gibson County, Route 0A982, Gumwoods Road bridge over branch, LM 2.420;
    330. (330) Gibson County, Route 0A994, Bluff Road bridge over branch, LM 1.562;
    331. (331) Gibson County, Route 0B009, Hicks Street extended bridge over branch of Rutherford Fork Obion River, LM 0.930;
    332. (332) Gibson County, Route 0B010, Old Rutherford-Kenton Road bridge over branch of Rutherford Fork Obion River, LM 2.591;
    333. (333) Gibson County, Route 0B011, Northerns Chapel Road bridge over branch, LM 1.659;
    334. (334) Gibson County, Route 0B112, Salem Street bridge over Roe Creek in Milan, LM 0.680;
    335. (335) Gibson and Carroll counties, US-79 (SR-76) from west of Cades-Atwood Road to east of SR-77;
    336. (336) Gibson and Dyer counties, SR-104, (Dyersburg Highway) from Old SR-104 to west of SR-188;
    337. (337) Giles County, Route 01900, Tarpley Shop Road bridge over Bunker Hill Road/I-65, LM 7.420;
    338. (338) Giles County, Route 0A068, Waters Smith Road bridge over Big Creek, LM 0.020;
    339. (339) Giles County, Route 0A177, Newman Road bridge over Indian Creek, LM 0.163;
    340. (340) Giles County, Route 0A296, Tunnel Road bridge over CSX Railroad, LM 0.624;
    341. (341) Giles County, Route 0A382, Booth Chapel Road bridge over Husley Creek, LM 1.839;
    342. (342) Giles County, 0A501, Frankewing Road bridge over Bradshaw Creek, LM 0.850;
    343. (343) Giles County, SR-166, Wales Road bridge over Richland Creek, LM 15.790;
    344. (344) Giles County, SR-7, (Main Street) from Union Hill Road to Morrow Road in Ardmore;
    345. (345) Giles County, US-31 (SR-7), Columbia Highway bridge over CSX Railroad, LM 27.720;
    346. (346) Giles County, US-31 (SR-7), Columbia Highway bridge over Richland Creek, LM 28.590;
    347. (347) Giles County, US-31A (SR-11), Lewisburg Highway bridge over Pigeon Roost Creek, LM 23.380;
    348. (348) Grainger County, Route 02534, Little Valley Road bridge over Richland Creek, LM 0.150;
    349. (349) Grainger County, Route 02540, Cherry Street bridge over branch, LM 0.910;
    350. (350) Grainger County, Route 02544, Liberty Hill Road bridge over Williams Branch, LM 0.180;
    351. (351) Grainger County, Route 0A026, Hogskin Road bridge over Hogskin Creek, LM 2.011;
    352. (352) Grainger County, Route 0A365, Bluff Road bridge over Richland Creek, LM 0.093;
    353. (353) Grainger County, Route 0A408, Milligan Lane bridge over Richland Creek, LM 0.686;
    354. (354) Grainger County, SR-131, bridge over Williams Creek, LM 7.730;
    355. (355) Grainger County, US-11W (SR-1), from west of Helton Road to Bean Station;
    356. (356) Grainger County, US-11W (SR-1), from Rutledge to west of Helton Road;
    357. (357) Grainger County, US-11W (SR-1), bridge over Shields Creek, LM 22.810;
    358. (358) Grainger County, US-25E (SR-32), (Dixie Highway) off-setting intersection at SR-131;
    359. (359) Greene County, Route 01346, Blue Springs Parkway bridge over Lick Creek, LM 0.390;
    360. (360) Greene County, Route 03863, E. Church Street bridge over branch, LM 1.720;
    361. (361) Greene County, Route 0A682, Paint Mountain Road bridge over Lower Paint Creek, LM 4.987;
    362. (362) Greene County, Route 0A759, Links Mill Road bridge over Richland Creek, LM 0.033;
    363. (363) Greene County, I-81, Greene County rest area renovation;
    364. (364) Greene County, US-11E (SR-34), (Greeneville Bypass) from US-11E west of Greeneville to US-11E east of Greeneville;
    365. (365) Greene County, US-321(SR-35), (Newport Highway) from north of Cocke County line to north of Nolichucky River (Bright Hope Road);
    366. (366) Greene County, US-321 (SR-35), (Newport Highway) from north of Nolichucky River near Bright Hope Road to south of SR-349 (Warrensburg Road) near Pates Lane;
    367. (367) Greene County, US-321 (SR-35), (Newport Highway) from SR-349 (Warrensburg Road) near Pates Lane to SR-34 (US-11E);
    368. (368) Greene County, US-321 (SR-35), Newport Highway bridge over Nolichucky River, LM 3.070;
    369. (369) Grundy County, Route 0A430, Stella Scruggs Road bridge over Pepper Hollow Branch, LM 0.092;
    370. (370) Grundy County, SR-50, (Pelham Road) from mile marker 8.0, 7.5 miles east of I-24 (Exit 127), to mile marker 11.0;
    371. (371) Hamblen County, Route 0A251, Britt Lane Road bridge over Spring Branch, LM 0.025;
    372. (372) Hamblen County, Route 0A314, Brights Pike bridge over Spring Creek, LM 0.154;
    373. (373) Hamblen County, SR-160, Enka Highway bridge over overflow, LM 0.140;
    374. (374) Hamblen County, US-11E (SR-34), (E. Andrew Johnson Highway) from west of Old Stagecoach Road in Russellville to Steadman Road;
    375. (375) Hamblen County, US-11E (SR-34), (E. Andrew Johnson Highway) from US-25E (SR-32) in Morristown to near East Morris Boulevard;
    376. (376) Hamblen County, US-11E (SR-34), (E. Andrew Johnson Highway) from near East Morris Boulevard to west of Old Stagecoach Road in Russellville;
    377. (377) Hamblen and Hawkins counties, US-11E (SR-34), (Andrew Johnson Highway) from Steadman Road to I-81;
    378. (378) Hamilton County, I-24, interchange modification of I-24 and SR-2 (Broad Street) / SR-58 (Market Street);
    379. (379) Hamilton County, I-24, from I-59 to US-27;
    380. (380) Hamilton County, I-24, bridge over SR-27 (Rossville Boulevard), LM 9.000;
    381. (381) Hamilton County, I-24, eastbound bridge over SR-2 (Broad Street), LM 8.00;
    382. (382) Hamilton County, I-24, bridge over I-24 ramp to Central Avenue, LM 8.820;
    383. (383) Hamilton County, I-24, bridge over Germantown Road (FAU 3577), LM 12.080;
    384. (384) Hamilton County, I-24, eastbound and westbound bridge over A643 Williams, LM 8.000;
    385. (385) Hamilton County, I-24, bridge over Southern Railway (abandoned), LM 10.360;
    386. (386) Hamilton County, I-75, interchange modification at I-24;
    387. (387) Hamilton County, I-75, interchange modification at Hamilton Place Mall;
    388. (388) Hamilton County, SR-17, Bonny Oaks Drive bridge over Chickamauga Creek, LM 8.200;
    389. (389) Hamilton County, SR-317, (Bonny Oaks Drive) from SR-17 to Industry Drive;
    390. (390) Hamilton County, SR-317, (Bonny Oaks Drive) from Industry Drive to Adamson Circle;
    391. (391) Hamilton County, SR-317, (Bonny Oaks Drive) from Adamson Circle to west of Bonnyshire Drive;
    392. (392) Hamilton County, SR-317, (Bonny Oaks Drive) from west of Bonnyshire Drive to I-75;
    393. (393) Hamilton County, SR-317, from SR-321 (Ooltewah-Ringgold Road) to near Layton Lane;
    394. (394) Hamilton County, SR-317, from near Layton Lane to East Brainerd Road in Chattanooga;
    395. (395) Hamilton County, SR-320, from east of Bel-Air Road to SR-321 (Ooltewah-Ringgold Road);
    396. (396) Hamilton County, SR-320, E. Brainerd Road bridge over CSX Railroad, LM 0.860;
    397. (397) Hamilton County, SR-321, from SR-317 (Apison Pike) to SR-320 (East Brainerd Road);
    398. (398) Hamilton County, US-127 (SR-8), from SR-27 Suck Creek Road to north of Palisades Drive (Mountain Road);
    399. (399) Hamilton and Bradley counties, I-75, from north of US-64 to US-74;
    400. (400) Hancock County, SR-33, Main Street bridge over Greasy Rock Creek, LM 11.770;
    401. (401) Hardeman County, Route 00865, Sain Road bridge over Spring Creek, LM 13.070;
    402. (402) Hardeman County, Route 00869, Powell Chapel Road bridge over Hatchie River, LM 7.920;
    403. (403) Hardeman County, Route 02320, Old Highway 64 bridge over branch, LM 2.530;
    404. (404) Hardeman County, Route 0A191, Newstead Drive bridge over branch, LM 0.157;
    405. (405) Hardeman County, Route 0A230, Kennedy Road bridge over branch, LM 2.590;
    406. (406) Hardeman County, Route 0A338, Howell Road bridge over Wade Creek, LM 0.104;
    407. (407) Hardeman County, SR-100, bridge over branch, LM 4.340;
    408. (408) Hardeman County, SR-125, Silerton Road bridge over branch, LM 29.690;
    409. (409) Hardeman County, SR-458, (Bolivar Bypass) from US-64 (SR-15) west of Bolivar to east of SR-18;
    410. (410) Hardeman County, SR-458, (Bolivar Bypass) from east of SR-18 to west of Old Middleton Road;
    411. (411) Hardeman County, US-64 (SR-15), bridge over overflow, LM 14.590;
    412. (412) Hardeman County, US-64 (SR-15), bridge over Spring Creek, LM 14.710;
    413. (413) Hardeman and Madison counties, SR-18, from SR-100 in Hardeman County to north of Medon/Malesus Road;
    414. (414) Hardin County, Route 01723, Burnt Church Road bridge over Little Turkey Creek, LM 2.220;
    415. (415) Hardin County, Route 01754, Fellowship Road bridge over Middleton Creek, LM 0.020;
    416. (416) Hardin County, Route 02702, Big Ivy Road bridge over Whites Creek, LM 0.100;
    417. (417) Hardin County, Route 05561, Campbell Old Mill Road bridge over Chambers Creek, LM 0.900;
    418. (418) Hardin County, Route 0A048, Marshall Drive bridge over Chalk Creek, LM 2.206;
    419. (419) Hardin County, Route 0A081, Hurricane Drive bridge over drainage ditch, LM 0.697;
    420. (420) Hardin County, Route 0A098, Lebanon Loop bridge over Flats Creek, LM 0.683;
    421. (421) Hardin County, Route 0A232, Irvin Road bridge over Choate Creek, LM 0.188;
    422. (422) Hardin County, Route 0A286, Hatley Loop bridge over Hatley Creek, LM 1.127;
    423. (423) Hardin County, Route 0A292, First Pittsburg Drive bridge over Mud Creek, LM 7.948;
    424. (424) Hardin County, Route 0A308, Nichols Drive bridge over Horse Creek, LM 0.195;
    425. (425) Hardin County, SR-128, from SR-226 (Airport Road) to south of One Stop Drive;
    426. (426) Hardin County, SR-128, from Pyburn Road to SR-226 (Airport Road);
    427. (427) Hardin County, SR-128, bridge over Tennessee River (Pickwick Dam), LM 0.840;
    428. (428) Hawkins County, Route 0A005, Old Highway 11W bridge over Cloud Creek, LM 1.876;
    429. (429) Hawkins County, Route 0A352, AFG Road bridge over Southern Railway, LM 0.447;
    430. (430) Hawkins County, Route 0A682, Brown Road bridge over Beech Creek, LM 0.017;
    431. (431) Hawkins County, Route 0A765, Walkers Church Road bridge over Robertson Creek, LM 0.813;
    432. (432) Hawkins County, Route 0A922, S. Armstrong Road bridge over Crockett Creek, LM 0.265;
    433. (433) Hawkins County, SR-31, (Flat Gap Road) from Mooresburg to Adams Lane;
    434. (434) Hawkins County, SR-31, bridge over Poor Valley Creek, LM 4.170;
    435. (435) Hawkins County, SR-346, E. Main Street bridge over Surgoinsville Creek, LM 3.900;
    436. (436) Hawkins County, SR-66, from SR-34 in Bulls Gap to south of Speedwell Road / Old Highway 66;
    437. (437) Hawkins County, SR-70, bridge over Southern Railway, LM 6.190;
    438. (438) Hawkins County, SR-70, bridge over Caney Creek, LM 8.910;
    439. (439) Hawkins County, US-11W (SR-1), W. Stone Drive bridge (right lane) over North Fork Holston River, LM 41.300;
    440. (440) Hawkins County, US-11W (SR-1), W. Stone Drive bridge (left lane) over North Fork Holston River, LM 41.300;
    441. (441) Haywood County, Route 00857, Mt. Pleasant Road bridge over Richland Creek, LM 0.100;
    442. (442) Haywood County, Route 01482, Nunn Road bridge over District Branch, LM 0.800;
    443. (443) Haywood County, Route 0A035, Toulon Road bridge over branch, LM 0.544;
    444. (444) Haywood County, Route 0A040, Garrett Road bridge over Lost Creek, LM 0.751;
    445. (445) Haywood County, Route 0A076, Gillispie Road bridge over branch, LM 0.293;
    446. (446) Haywood County, Route 0A096, Sturdivant Road bridge over branch, LM 0.730;
    447. (447) Haywood County, Route 0A152, Estanaula Road bridge over branch, LM 3.480;
    448. (448) Haywood County, Route 0A157, Coburn Road bridge over branch, LM 3.220;
    449. (449) Haywood County, SR-19, (Brownsville Bypass) from east of SR-87 to west of Windrow Road;
    450. (450) Haywood County, SR-19, from Lauderdale County line to east of Binford Road;
    451. (451) Haywood County, SR-19, from east of Binford Road to east of Bobby Mann Road;
    452. (452) Haywood County, SR-19, from east of Bobby Mann Road to east of SR-87;
    453. (453) Haywood County, US-70 (SR-1), bridge over branch, LM 2.890;
    454. (454) Haywood County, US-70 (SR-1), bridge over Muddy Creek, LM 2.130;
    455. (455) Haywood County, Route 01443, Stanton Koko Road bridge over Prairie Creek, LM 2.540;
    456. (456) Henderson County, Route 0A238, Wake Forest Road bridge over Big Hurricane Drainage, LM 0.300;
    457. (457) Henderson County, Route 0A264, Belton Robison Road bridge over Beech River, LM 1.825;
    458. (458) Henderson County, Route 0A266, Rock Hill Road bridge over Haley Creek, LM 0.406;
    459. (459) Henderson County, Route 0A327, Dyer Road bridge over Middle Prong Doe Creek, LM 0.338;
    460. (460) Henderson County, SR-459, (Lexington Bypass) from US-412 (SR-20) west of Lexington to SR-22 south of Lexington;
    461. (461) Henderson County, SR-459, (Lexington Bypass) from SR-22 south of Lexington to US-412 (SR-20) east of Lexington;
    462. (462) Henry County, Route 01715, Shady Grove Road bridge over Thompson Creek, LM 2.210;
    463. (463) Henry County, Route 01715, Shady Grove Road bridge over Holley Fork Creek, LM 7.290;
    464. (464) Henry County, Route 0A058, Birds Creek Road bridge over Birds Creek, LM 3.091;
    465. (465) Henry County, Route 0A072, Goldston Springs Road bridge over Clear Creek, LM 1.632;
    466. (466) Henry County, Route 0A113, Terrapin Creek Road bridge over Sugar Creek, LM 2.574;
    467. (467) Henry County, Route 0A113, Terrapin Creek Road bridge over branch, LM 3.890;
    468. (468) Henry County, Route 0A118, Kuykendall Road bridge over Sandy Branch, LM 0.480;
    469. (469) Henry County, Route 0A210, Red Top Hill Road bridge over Blood River, LM 2.080;
    470. (470) Henry County, Route 0A434, Hagler Ridge Road bridge over Clendon Creek, LM 1.370;
    471. (471) Henry County, Route 0A572, Gum Springs Road bridge over Middle Fork Obion River, LM 1.139;
    472. (472) Henry County, US-641 (SR-54), from near Smith Road to Kentucky state line;
    473. (473) Hickman County, Route 00942, Cane Creek Road bridge over Cane Creek, LM 3.210;
    474. (474) Hickman County, Route 00961, Goodrich Road bridge over Bird Creek, LM 6.150;
    475. (475) Hickman County, Route 00961, Goodrich Road bridge over branch, LM 5.900;
    476. (476) Hickman County, Route 01846, Tottys Bend Road bridge over Arnold Branch, LM 2.650;
    477. (477) Hickman County, Route 01846, Tottys Bend Road bridge over Duck River, LM 5.730;
    478. (478) Hickman County, Route 01848, Grays Bend Road bridge over Haley Creek, LM 1.810;
    479. (479) Hickman County, Route 0A100, S. Tatum Creek Road bridge over Tatum Creek, LM 0.136;
    480. (480) Hickman County, Route 0A104, Tom Patton Road bridge over Jones Creek, LM 2.883;
    481. (481) Hickman County, Route 0A128, Friendship Lane bridge over Mill Creek, LM 0.909;
    482. (482) Hickman County, Route 0A170, Washer Road bridge over Mill Creek, LM 0.010;
    483. (483) Hickman County, Route 0A176, Baker Hollow Road bridge over Little Spring Creek, LM 1.539;
    484. (484) Hickman County, Route 0A270, Ugly Creek Road bridge over Blue Buck Creek, LM 5.142;
    485. (485) Hickman County, Route 0A325, W. Beaverdam Road bridge over Beaver Dam Creek, LM 4.360;
    486. (486) Hickman County, Route 0A325, W. Beaverdam Road bridge over Wades Branch, LM 4.135;
    487. (487) Hickman County, Route 0A330, Spring Road bridge over Indian Creek, LM 0.060;
    488. (488) Hickman County, Route 0A366, E. Plunders Creek Road bridge over Piney River, LM 2.157;
    489. (489) Hickman County, Route 0A542, Briar Pond Road bridge over Blowing Springs, LM 7.487;
    490. (490) Hickman County, Route 0A756, Barnhill Lane bridge over Haley Creek, LM 0.040;
    491. (491) Hickman County, Route 0A802, Yates Lane bridge over Garner Creek, LM 0.080;
    492. (492) Hickman County, SR-100, SR-48 intersection improvements;
    493. (493) Hickman and Dickson counties, SR-46, from I-40 to the intersection of SR-100 and SR-7;
    494. (494) Hickman County, SR-50, bridge over Duck River, LM 30.550;
    495. (495) Hickman County, SR-50, Minnie Pearl Memorial Highway bridge over Duck River, LM 17.180;
    496. (496) Houston County, Route 01783, Tank Hill Road bridge over Erin Branch, LM 8.390;
    497. (497) Houston County, Route 0A018, Hurricane Landing Road bridge over Hurricane Creek, LM 1.107;
    498. (498) Houston County, Route 0A410, Carl Norfleet Lane bridge over Pollard Branch, LM 0.090;
    499. (499) Houston County, SR-49, safety improvements from SR-13 to SR-46;
    500. (500) Houston County, SR-49, E. Main Street bridge over Wells Creek, LM 5.870;
    501. (501) Humphreys County, Route 00910, Bakerville Road bridge over Duck River, LM 15.710;
    502. (502) Humphreys County, Route 01779, Indian Creek Road bridge over Hurricane Creek, LM 7.430;
    503. (503) Humphreys County, Route 01794, Cuba Landing Road bridge over North Fork Blue Creek, LM 0.100;
    504. (504) Humphreys County, Route 0A058, Hemby Cemetery Lane bridge over Hemby Branch, LM 0.075;
    505. (505) Humphreys County, Route 0A124, Patrick Road bridge over White Oak Creek, LM 0.034;
    506. (506) Humphreys County, Route 0A144, Dry Hollow Road bridge over branch, LM 1.647;
    507. (507) Humphreys County, Route 0A171, Smith Branch Road bridge over White Oak Creek, LM 0.036;
    508. (508) Humphreys County, Route 0A223, Lee Lane bridge over Indian Creek, LM 0.052;
    509. (509) Humphreys County, Route 0A239, Tumbling Creek Road bridge over Tumbling Creek, LM 2.020;
    510. (510) Humphreys County, Route 0A239, Tumbling Creek Road bridge over Tumbling Creek, LM 3.142;
    511. (511) Humphreys County, Route 0A276, Tatem Lane bridge over Blue Creek, LM 0.092;
    512. (512) Humphreys County, Route 0A279, Weed Lane bridge over Blue Creek, LM 0.170;
    513. (513) Humphreys County, Route 0A281, Crockett Murphree Lane bridge over I-40, LM 0.031;
    514. (514) Humphreys County, Route 0A341, Cedar Grove Road bridge over Hurricane Creek, LM 0.492;
    515. (515) Humphreys County, I-40, bridge (left lanes) over Buffalo River, LM 6.260;
    516. (516) Humphreys County, I-40, bridge (right lanes) over Buffalo River, LM 6.260;
    517. (517) Humphreys County, SR-13, from the Perry County line to I-40;
    518. (518) Humphreys County, SR-13, N. Church Street bridge over SR-13 / Trace Creek, LM 19.350;
    519. (519) Humphreys County, SR-13, bridge over Black Branch, LM 3.540;
    520. (520) Jackson County, Route 0A021, Cox Hollow Road bridge over Wartrace Creek, LM 0.500;
    521. (521) Jackson and Putnam counties, SR-96, (Martin Creek Rd.) from SR-53 to US-70N (SR-24) (spot improvements; safety improvements);
    522. (522) Jefferson County, Route 01430, Spring Creek Road bridge over Long Creek, LM 0.180;
    523. (523) Jefferson County, Route 02453, Lost Creek Road bridge over Lewis Creek, LM 7.540;
    524. (524) Jefferson County, Route 02457, Witt Road bridge over Long Creek, LM 0.130;
    525. (525) Jefferson County, Route 02500, Zirkle Road bridge over Koontz Creek, LM 1.390;
    526. (526) Jefferson County, Route 02510, Mine Road bridge over Lost Creek, LM 0.100;
    527. (527) Jefferson County, Route 02510, Mine Road bridge over Lost Creek, LM 1.880;
    528. (528) Jefferson County, Route 02516, Bell Road bridge over Carter Creek, LM 1.370;
    529. (529) Jefferson County, Route 0A082, Day Road bridge over Lost Creek, LM 1.870;
    530. (530) Jefferson County, Route 0A482, Hebron Church Road bridge over Dumplin Creek, LM 0.032;
    531. (531) Jefferson County, Route 0A579, Carmichael Road bridge over Long Creek, LM 0.362;
    532. (532) Jefferson County, Route 0A897, Seahorn Road bridge over Lost Creek, LM 0.046;
    533. (533) Jefferson County, I-40, bridge over French Broad River, LM 14.700;
    534. (534) Jefferson County, I-81, I-40 to SR-341 Roy Messer Highway;
    535. (535) Jefferson County, I-81, bridge over ramp to I-40 (right lane only), LM 0.270;
    536. (536) Jefferson County, US-25W (SR-9), E. Meeting Street bridge over Rimmer Creek, LM 13.230;
    537. (537) Jefferson County, US-25W (SR-9), bridge over Koontz Creek, LM 14.240;
    538. (538) Johnson County, Route 0A064, Stage Coach Loop bridge over Doe Creek, LM 0.103;
    539. (539) Johnson County, Route 0A296, Forge Creek Circle bridge over Forge Creek, LM 0.240;
    540. (540) Johnson County, Route 0A375, Slimp Branch Road bridge over Roan Creek, LM 0.336;
    541. (541) Johnson County, Route 0A409, Little Dry Run Road bridge over Roan Creek, LM 4.350;
    542. (542) Johnson County, SR-91, from near Cold Springs Road to the Virginia state line;
    543. (543) Knox County, Route 0C899, Jackson Avenue bridges over ramp to Gay Street / Ground at LM 0.24 and LM 0.26 in Knoxville, LM 0.240;
    544. (544) Knox County, I-275, bridge over Elm Street, LM 0.390;
    545. (545) Knox County, I-40, interchange with I-275 (I-40 westbound approach);
    546. (546) Knox County, I-40, bridge over Wesley Road, LM 12.850;
    547. (547) Knox County, I-40, bridge (left lanes) over 17th Street, LM 18.300;
    548. (548) Knox County, I-75, interchange at I-640/275 (Sharps Gap);
    549. (549) Knox County, I-75, from Emory Road (SR-131) to Raccoon Valley Road (SR-170);
    550. (550) Knox County, I-75, ITS expansion from mile marker 109.6 to just before SR-61 (Exit 122);
    551. (551) Knox County, SR-1/SR-332, (Kingston Pike) intersection with SR-332 (Northshore Drive);
    552. (552) Knox County, SR-131, (E. Emory Road) from SR-331 to SR-33;
    553. (553) Knox County, SR-162, (Pellissippi Parkway) interchange at SR-62 (Oak Ridge Highway) in Solway;
    554. (554) Knox County, SR-332, S. Northshore Drive bridge over Sinking Creek, LM 2.190;
    555. (555) Knox County, SR-62, (Oak Ridge Highway) from Schaad Road to SR-131;
    556. (556) Knox County, US-129 (SR-115), (Alcoa Highway) from north of Little River to north of Maloney Road;
    557. (557) Knox County, US-129 (SR-115), (Alcoa Highway) from Woodson Drive to Cherokee Trail interchange;
    558. (558) Knox, Blount, and Sevier counties, SR-71/US-441, (Chapman Highway) Blount Avenue to SR-338 (Boyds Creek Highway) in Seymour, operations and safety improvements (multiple locations);
    559. (559) Knox and Sevier counties, I-40, ITS expansion from Strawberry Plains Pike (Exit 398) interchange to SR-66 (Sevierville, Exit 407) interchange;
    560. (560) Lake County, Route 02155, Free Bridge Road bridge over Running Reelfoot Bayou, LM 5.930;
    561. (561) Lake and Obion counties, SR-21, from SR-78 to SR-22;
    562. (562) Lauderdale County, Route 00821, Twin Rivers Road bridge over overflow, LM 2.320;
    563. (563) Lauderdale County, Route 00821, Twin Rivers Road bridge over overflow, LM 2.660;
    564. (564) Lauderdale County, Route 00823, Lawrence Road bridge over Sumrow Creek, LM 2.300;
    565. (565) Lauderdale County, Route 04495, Unionville Road bridge over Chambers Branch, LM 2.280;
    566. (566) Lauderdale County, Route 0A064, Faye Barfield Road bridge over branch of Hatchie River, LM 0.718;
    567. (567) Lauderdale County, Route 0A081, Chisholm Lake Road bridge over Cold Creek, LM 4.630;
    568. (568) Lauderdale County, Route 0A094, Sutton Road bridge over branch, LM 1.076;
    569. (569) Lauderdale County, Route 0A099, Dr. Lewis Road bridge over branch, LM 2.631;
    570. (570) Lauderdale County, Route 0A110, Turkey Hill Road bridge over branch, LM 1.757;
    571. (571) Lauderdale County, Route 0A121, Dee Webb Road bridge over Knob Creek, LM 3.812;
    572. (572) Lauderdale County, Route 0A140, Olds Road bridge over branch, LM 1.909;
    573. (573) Lauderdale County, Route 0A142, Key Corner Road bridge over branch, LM 1.915;
    574. (574) Lauderdale County, Route 0A257, Coon Dance Road bridge over branch, LM 0.393;
    575. (575) Lauderdale County, Route 0A257, Coon Dance Road bridge over branch, LM 0.440;
    576. (576) Lauderdale County, Route 0A291, Parchman Road bridge over branch, LM 0.627;
    577. (577) Lauderdale County, Route 0A291, Parchman Road bridge over branch, LM 1.557;
    578. (578) Lauderdale County, Route 0A316, John Moorer Road bridge over branch, LM 4.540;
    579. (579) Lauderdale County, Route 0A316, John Moorer Road bridge over overflow, LM 4.410;
    580. (580) Lauderdale County, Route 0A523, Old Brownsville Road bridge over branch, LM 1.417;
    581. (581) Lauderdale County, I-69, from south of SR-87 to south of SR-19;
    582. (582) Lauderdale County, I-69, from south of SR-19 to south of Coffee Shop Road;
    583. (583) Lauderdale County, I-69, from south of Coffee Shop Road to south of Dry Hill Road;
    584. (584) Lauderdale County, I-69, from south of Dry Hill Road to north of SR-88;
    585. (585) Lauderdale County, SR-19, from east of Eastland Avenue to Haywood County line;
    586. (586) Lauderdale County, SR-87, bridge over overflow, LM 3.880;
    587. (587) Lauderdale County, Route 0A164, Kellar Avenue bridge over Hyde Creek in Ripley, LM 1.070;
    588. (588) Lauderdale and Tipton counties, I-69, from Leigh's Chapel Road to south of SR-87;
    589. (589) Lawrence County, Route 01426, Busby Road bridge over Shoal Creek, LM 6.240;
    590. (590) Lawrence County, Route 0A197, Pleasant Valley Road bridge over Dry Weakley Creek, LM 1.073;
    591. (591) Lewis County, Route 0A098, Sickler Road bridge over Buffalo River, LM 0.331;
    592. (592) Lincoln County, Route 01967, Wells Lee Road bridge over Big Huckleberry Creek, LM 4.670;
    593. (593) Lincoln County, Route 0A001, Steelman Road bridge over East Fork Mulberry Creek, LM 0.275;
    594. (594) Lincoln County, Route 0A165, Providence Road bridge over branch, LM 0.059;
    595. (595) Lincoln County, Route 0A187, Providence Road bridge over Mulberry Creek, LM 3.200;
    596. (596) Lincoln County, Route 0A405, Kidd Lane bridge over Elk River, LM 2.000;
    597. (597) Lincoln County, US-231/431 (SR-10), (Huntsville Highway) from south of Elk River to the intersection of SR-110;
    598. (598) Loudon County, Route 01251, Sugar Limb Road bridge over I-75, LM 7.860;
    599. (599) Loudon County, Route 0A808, Elm Street bridge over Bacon Creek, LM 0.169;
    600. (600) Loudon County, I-40, bridge over I-75 (northbound lanes), LM 4.510;
    601. (601) Loudon County, I-75, from Pond Creek Road (SR-323) to the I-40/I-75 junction;
    602. (602) Macon County, Route 02087, Sycamore Valley Road bridge over branch, LM 1.100;
    603. (603) Macon County, SR-56, various safety projects;
    604. (604) Madison County, Route 00868, Mifflin Road bridge over branch, LM 3.840;
    605. (605) Madison County, Route 00870, Collins Road bridge over Cobb Creek, LM 2.120;
    606. (606) Madison County, Route 03043, Airways Boulevard bridge over branch, LM 1.050;
    607. (607) Madison County, Route 03058, Jackson Street bridge over West Tennessee Railroad, LM 0.290;
    608. (608) Madison County, Route 0A092, Turner Loop bridge over branch, LM 0.646;
    609. (609) Madison County, Route 0A166, George Anderson Road bridge over overflow, LM 3.286;
    610. (610) Madison County, Route 0A224, Walter Helms Cut-Off Road bridge over branch, LM 0.999;
    611. (611) Madison County, Route 0A310, John Brown Road bridge over branch, LM 0.418;
    612. (612) Madison County, Route 0A364, Agins Road bridge over overflow, LM 0.178;
    613. (613) Madison County, Route 0A386, Vinson Road bridge over overflow, LM 0.640;
    614. (614) Madison County, Route 0A538, Hicks Avenue bridge over Bond Creek, LM 0.033;
    615. (615) Madison County, Route 0A603, First Street bridge over Anderson Branch, LM 0.260;
    616. (616) Madison County, Route 0A980, Westover Road bridge over Anderson Branch, LM 0.522;
    617. (617) Madison County, Route 0A980, Westover Road bridge over overflow, LM 0.338;
    618. (618) Madison County, Route 0A980, Westover Road bridge over overflow, LM 0.623;
    619. (619) Madison County, Route 0A980, Westover Road bridge over overflow, LM 0.728;
    620. (620) Madison County, I-40, from east of SR-5 (US-45) to SR-1 (US-70) in Jackson;
    621. (621) Madison County, I-40, from west of US-412 (SR-20, Hollywood Drive) to west of US-45 Bypass (SR-186);
    622. (622) Madison County, I-40, ITS expansion in the Jackson area;
    623. (623) Madison County, SR-152, Law Road bridge over I-40, LM 7.830;
    624. (624) Madison County, SR-18, (Bolivar Highway) from north of Medon/Malesus Road to US-45 (SR-5) in Jackson;
    625. (625) Madison County, Route SR-223, Shady Grove Road bridge over branch, LM 2.280;
    626. (626) Madison County, US-45 Bypass (SR-186), (Southern Bypass) SR-186 from SR-1 (Airways Boulevard) to SR-5 (South Highland Avenue) in Jackson;
    627. (627) Marion County, Route 02153, Orme Road bridge over Dry Creek, LM 0.580;
    628. (628) Marion County, SR-156, approximately one mile west of Cedar Avenue in South Pittsburg to approximately 1.7 miles west;
    629. (629) Marion County, US-64/72 (SR-2), from Kimball to Jasper;
    630. (630) Marshall County, Route 0A273, E. Hill Avenue bridge over CSX Railroad, LM 0.408;
    631. (631) Marshall County, SR-130, High Street bridge over Cane Creek, LM 0.040;
    632. (632) Marshall County, US-31A (SR-11), Nashville Highway bridge over Rock Creek, LM 13.180;
    633. (633) Marshall County, Route 0A261, Hatchett Road bridge over Hatchett River in Cornersville, LM 0.120;
    634. (634) Maury County, Route 01897, Howard Bridge Road bridge over Duck River, LM 2.530;
    635. (635) Maury County, Route 01916, Bigbyville Road bridge over Little Bigby Creek, LM 0.090;
    636. (636) Maury County, Route 01924, Seavy Hight Road bridge over Fountain Creek, LM 1.070;
    637. (637) Maury County, Route 02733, Lawrenceburg Highway bridge over Rattlesnake Falls Branch, LM 2.090;
    638. (638) Maury County, Route 02733, Lawrenceburg Highway bridge over Tennessee Southern Railway, LM 3.180;
    639. (639) Maury County, Route 03194, N. James M. Campbell Boulevard bridge over Tennessee Southern Railway, LM 0.890;
    640. (640) Maury County, Route, 04624, Mt. Olivet Road bridge over Bear Creek, LM 0.050;
    641. (641) Maury County, Route 0A048, Vestal Hollow Road bridge over Leipers Creek, LM 0.036;
    642. (642) Maury County, Route 0A051, Martin Ervin Road bridge over Leipers Creek, LM 0.123;
    643. (643) Maury County, Route 0A064, Roberts Bend Lane bridge over Knob Creek, LM 7.383;
    644. (644) Maury County, Route 0A064, Roberts Bend Road bridge over Duck River, LM 3.760;
    645. (645) Maury County, Route 0A068, Algie Sewell Road bridge over Leipers Creek, LM 1.191;
    646. (646) Maury County, Route 0A161, Cranford Hollow Road bridge over branch, LM 0.318;
    647. (647) Maury County, Route 0A163, Martin Drive bridge over Lytle Creek, LM 0.721;
    648. (648) Maury County, Route 0A177, Carpenter Bridge Road bridge over Pumpkin Creek, LM 0.415;
    649. (649) Maury County, Route 0A189, Daimwood Road bridge over Cedar Creek, LM 0.297;
    650. (650) Maury County, Route 0A326, Martin Hollow Road bridge over Campbell Station Branch, LM 1.132;
    651. (651) Maury County, Route 0A326, Martin Hollow Road bridge over South Fork Fountain Creek, LM 0.038;
    652. (652) Maury County, Route 0A358, Old Highway 43 bridge over Big Bigby Branch, LM 0.423;
    653. (653) Maury County, Route 0A381, Arrow Mines Road bridge over Sugar Creek, LM 0.101;
    654. (654) Maury County, Route 0A408, Ashwood Road bridge over Big Bigby Creek, LM 1.311;
    655. (655) Maury County, Route 0A412, Roy Thompson Road bridge over Dog Branch, LM 0.756;
    656. (656) Maury County, Route 0A424, Curry Branch Road bridge over Baptist Creek, LM 2.148;
    657. (657) Maury County, Route 0A570, Old Sowell Mill Pike bridge over Duck River, LM 1.050;
    658. (658) Maury County, Route 0B021, Craig Bridge Road bridge over Duck River, LM 0.739;
    659. (659) Maury County, Route 0B310, Old Sowell Mill Pike bridge over Cedar Creek, LM 1.567;
    660. (660) Maury County, Route 0B561, John Lunn Road bridge over Aenon Creek, LM 0.566;
    661. (661) Maury County, Route 0B625, Jones Valley Road bridge over branch, LM 0.010;
    662. (662) Maury County, I-65, US-412 (SR-99) interchange modification;
    663. (663) Maury County, SR-243, N. Main Street bridge over Sugar Creek, LM 2.060;
    664. (664) Maury County, SR-247, Snow Creek Road bridge over Leipers Creek, LM 1.050;
    665. (665) Maury and Lewis counties, SR-166, from west of US-43 (SR-6) to US-412 (SR-99) at Lewis County line;
    666. (666) Maury and Williamson counties, US-31 (SR-6), (Main Street / Columbia Pike) from Duplex Road in Spring Hill to I-840 in Thompson's Station;
    667. (667) McMinn County, I-75, interchange improvements at SR-30 and SR-305 (ramp terminals and signals);
    668. (668) McMinn County, SR-163, Etowah Road bridge over Conasauga Creek, LM 13.710;
    669. (669) McMinn County, SR-39, bridge over Middle Creek, LM 13.350;
    670. (670) McNairy County, Route 01657, Butler Chapel Road bridge over Indian Creek, LM 6.490;
    671. (671) McNairy County, Route 0A658, Mt. Vinson Road bridge over Clear Creek, LM 1.820;
    672. (672) McNairy County, SR-57, bridge over overflow, LM 8.500;
    673. (673) McNairy County, SR-57, bridge over branch, LM 8.850;
    674. (674) McNairy County, US-64 (SR-15), Court Avenue bridge over Cypress Creek, LM 11.630;
    675. (675) Meigs County, Route 0A022, Big Sewee Road bridge over Sewee Creek, LM 1.058;
    676. (676) Meigs County, Route 0A733, W. Memorial Drive bridge over Decatur Branch, LM 0.370;
    677. (677) Monroe County, Route 01139, Mt. Pleasant Road bridge over Mulberry Creek, LM 10.000;
    678. (678) Monroe County, Route 02344, Povo Road bridge over North Fork Notchy Creek, LM 1.890;
    679. (679) Monroe County, Route 02344, Povo Road bridge over North Fork Notchy Creek, LM 2.570;
    680. (680) Monroe County, SR-322, (Sweetwater Vonore Road) from Sweetwater-Vonore Road to Sheppard Road;
    681. (681) Monroe County, SR-322, (Sweetwater Vonore Road) from Sheppard Road to SR-72;
    682. (682) Monroe County, US-11 (SR-2), S. Main Street bridge over Sweetwater Creek, LM 2.280;
    683. (683) Montgomery County, Route 00975, Dotsonville Road bridge over Cummings Creek, LM 7.900;
    684. (684) Montgomery County, Route 01861, Budds Creek Road bridge over Budds Creek, LM 2.800;
    685. (685) Montgomery County, Route 01863, Cooper Creek Road bridge over branch, LM 1.800;
    686. (686) Montgomery County, Route 01888, Shady Grove Road bridge over McAdoo Creek, LM 6.670;
    687. (687) Montgomery County, Route 03148, Dunbar Cave Road bridge over branch, LM 1.270;
    688. (688) Montgomery County, Route 0A009, Sulphur Springs Road bridge over Sulphur Branch, LM 1.568;
    689. (689) Montgomery County, Route 0A089, Ringgold Road bridge over Illinois Central Railroad (removed), LM 1.023;
    690. (690) Montgomery County, Route 0A394, Akin Road bridge over Louise Creek, LM 1.294;
    691. (691) Montgomery County, I-24, from Tennessee-Kentucky state line to SR-76 (Exit 11);
    692. (692) Montgomery County, I-24, Clarksville welcome center renovation;
    693. (693) Montgomery County, SR-13, Kraft Street bridge over Illinois Central Railroad (removed), LM 19.890;
    694. (694) Montgomery County, SR-149/374, from Dotsonville Road to SR-149, SR-149 from SR-374 to River Road;
    695. (695) Montgomery County, SR-374, from Dotsonville Road to US-79 (SR-76);
    696. (696) Montgomery County, SR-48, (Trenton Road) from SR-374 to I-24;
    697. (697) Moore County, Route 0A083, Turkey Creek Loop bridge over Turkey Creek, LM 0.522;
    698. (698) Moore County, SR-55, from intersection of Goodbranch Road to Moore County High School;
    699. (699) Moore County, SR-55, (Lynchburg Highway) passing lane from the intersection at Riddle Road to the Five Points Road intersection;
    700. (700) Morgan County, Route 02378, Camp Austin Road bridge over Hall Branch, LM 8.610;
    701. (701) Morgan County, Route 0A019, Sexton Loop bridge over Whiteoak Creek, LM 1.882;
    702. (702) Morgan County, Route 0A153, Hebbertburg Road bridge over Island Creek, LM 5.888;
    703. (703) Morgan County, Route 0A253, Macedonia Road bridge over Emory River, LM 7.800;
    704. (704) Morgan County, Route 0A409, Wildlife Management Area Road bridge over Island Creek, LM 10.271;
    705. (705) Morgan County, Route 0A413, Frozen Head State Park Road bridge over Flat Fork Creek, LM 0.006;
    706. (706) Morgan County, SR-116, Petros Highway bridge over Stockstill Creek, LM 2.260;
    707. (707) Morgan County, SR-116, Petros Highway bridge over Stockstill Creek, LM 2.600;
    708. (708) Morgan County, SR-298, Genesis Road bridge over Clear Creek, LM 6.050;
    709. (709) Morgan County, SR-62, (Knoxville Highway) from Oliver Springs to near Petit Lane;
    710. (710) Morgan County, US-27 (SR-29), from north of SR-328 to north of Ray Cross Road / Mossy Grove Road (formerly Westminster Road);
    711. (711) Morgan County, US-27 (SR-29), from north of Ray Cross Road / Mossy Grove Road (formerly Westminster Road) to SR-62 in Wartburg;
    712. (712) Morgan County, US-27 (SR-29), Morgan County Highway bridge over Massingale Creek, LM 26.140;
    713. (713) Obion County, Route 01433, S. Bluff Road bridge over Browns Creek, LM 4.275;
    714. (714) Obion County, Route 01524, W. Black Lane Road bridge over Mill Creek, LM 1.230;
    715. (715) Obion County, Route 01525, Simmons Road bridge over overflow, LM 2.210;
    716. (716) Obion County, Route 01528, Phesbus Road bridge over Davidson Creek, LM 0.500;
    717. (717) Obion County, Route 02122, Old Turnpike Road bridge over Old Obion River Bed, LM 5.190;
    718. (718) Obion County, Route 0A047, Pate Road bridge over Davidson Creek, LM 0.670;
    719. (719) Obion County, Route 0A057, Cherry Road bridge over branch, LM 0.210;
    720. (720) Obion County, Route 0A283, Town and Country Road bridge over branch, LM 0.520;
    721. (721) Obion County, Route 0A578, W. Middle Trimble Road bridge over branch, LM 3.012;
    722. (722) Obion County, Route 0A815, College Street bridge over Harris Fork Creek, LM 0.232;
    723. (723) Obion County, I-69, from 1.2 miles south of SR-183 to south of SR-21 (Troy-Rives Road);
    724. (724) Obion County, I-69, from south of SR-21 (Troy-Rives Road) to south of US-51;
    725. (725) Obion County, I-69, from south of SR-3 to south of SR-5;
    726. (726) Obion County, I-69, from south of SR-5 to west of SR-21;
    727. (727) Obion County, I-69, from west of SR-21 to US-51 near Mayberry Road;
    728. (728) Obion County, I-69, from Rogers Road in Kentucky to SR-3 (US-45W and US-51) in Obion County;
    729. (729) Obion County, US-45W (SR-5), from Allie Campbell Road to US-51 (SR-3) in Union City;
    730. (730) Obion County, US-45W (SR-5), from Troy Station Road to Allie Campbell Road;
    731. (731) Obion County, US-51 (SR-3), bridge over branch, LM 15.390;
    732. (732) Overton County, Route 01205, Windle Community Road bridge over Roaring River, LM 5.170;
    733. (733) Overton County, Route 01506, Old SR-42 / Rickman Road bridge over Carr Creek, LM 9.060;
    734. (734) Overton County, Route 0A255, Big Laurel Creek Road bridge over Big Laurel Creek, LM 0.021;
    735. (735) Overton County, SR-52, (Jamestown Highway) from SR-52/85, west of Alpine to west of Pickett County line;
    736. (736) Perry County, Route 00921, S. Mill Street bridge over Buffalo River, LM 0.220;
    737. (737) Perry County, Route 0A008, Mousetail Landing Road bridge over Spring Creek, LM 0.049;
    738. (738) Perry County, Route 0A202, Culps Bend Road bridge over Whiteoak Creek, LM 0.051;
    739. (739) Perry County, SR-13, three spot improvements at locations E, H, and K from SR-20 to south of the Humphreys County line;
    740. (740) Perry County, SR-13, four spot improvements at locations B, C, D, and F from SR-20 to south of the Humphreys County line;
    741. (741) Polk County, Route 02268, Easley Ford Road bridge over Conasauga River, LM 1.530;
    742. (742) Polk County, Route 02309, Reynolds Bridge Road bridge over Ocoee River, LM 1.940;
    743. (743) Polk County, Route 0A207, Boanerges Church Road bridge over Old Fort Creek, LM 3.290;
    744. (744) Polk County, Route 0A317, Columbus Road bridge over CSX Railroad, LM 1.130;
    745. (745) Polk County, SR-68, bridge over SR-40, LM 18.390;
    746. (746) Polk County, SR-68, Ocoee Street bridge over Davis Mill Creek, LM 21.010;
    747. (747) Polk County, US-64/74 (SR-40), Ocoee River Gorge Bypass, Appalachia Corridor “K” (Phase 1);
    748. (748) Polk County, US-64/74 (SR-40), Ocoee River Gorge Bypass, Appalachia Corridor “K” (Phase 3);
    749. (749) Polk County, US-64/74 (SR-40), bridge over North Potato Creek, LM 26.930;
    750. (750) Polk County, US-64/74 (SR-40), bridge over Ocoee River, LM 3.120;
    751. (751) Putnam County, SR-135, (N. Willow Avenue) from West Broad Street to West 12th Street;
    752. (752) Putnam County, SR-136, (S. Jefferson Avenue) from I-40 to SR-111;
    753. (753) Rhea County, Route 0A024, Harrison Avenue bridge over Roaring Creek, LM 0.722;
    754. (754) Rhea County, SR-30, (Old Washington Highway) from US-27 (SR-29) to west of the Tennessee River bridge;
    755. (755) Roane County, Route 01226, Pansy Hill Drive bridge over Emory River, LM 0.280;
    756. (756) Roane County, Route 01425, Caney Creek Road bridge over Caney Creek, LM 3.940;
    757. (757) Roane County, Route 02374, Poplar Creek Road bridge over Poplar Creek, LM 9.240;
    758. (758) Roane County, Route 0A448, Scenic Drive bridge over I-40, LM 1.198;
    759. (759) Roane County, Route 0B076, Main Street bridge over Indian Creek, LM 0.048;
    760. (760) Roane County, I-40, bridge over Clinch River and NFA A774, LM 11.150;
    761. (761) Roane County, US-27 (SR-29), S. Roane Street bridge over Emory River, LM 7.480;
    762. (762) Roane County, US-27 (SR-29), bridge over SR-29/SR-61, LM 12.100;
    763. (763) Roane County, US-70 (SR-1), from SR-382 to Midtown (SR-29);
    764. (764) Robertson County, Route 01021, Cross Plains Road bridge over Empson Branch, LM 8.920;
    765. (765) Robertson County, Route 05353, Experiment Station Road bridge over Wartrace Creek, LM 0.610;
    766. (766) Robertson County, Route 0A480, Kinneys School Road bridge over Sulphur Fork Creek, LM 1.233;
    767. (767) Robertson County, I-24, ramp improvements at Exits 19 and 24;
    768. (768) Robertson County, I-65, weigh station;
    769. (769) Robertson County, SR-49, bridge over Calebs Creek, LM 4.930;
    770. (770) Robertson County, SR-76, bridge over Sulphur Fork Creek, LM 0.210;
    771. (771) Robertson County, SR-76, from Charles Drive to New Hall Road;
    772. (772) Rutherford County, I-24, interchange improvements at Exits 74, 78, and 80;
    773. (773) Rutherford County, I-24, ramp improvements at Exits 66, 70, 81, 84, and 89;
    774. (774) Rutherford County, SR-266, (W. Jefferson Pike) from SR-102 to east of I-840;
    775. (775) Rutherford County, SR-268, (N. Thompson Lane) from US-41/70S (SR-1) to SR-10;
    776. (776) Rutherford County, SR-96, Franklin Road bridge over branch, LM 4.560;
    777. (777) Rutherford County, SR-99, (New Salem Highway) from Cason Lane to I-24 in Murfreesboro;
    778. (778) Rutherford County, SR-99, (New Salem Highway) from I-24 to SR-96 (Old Fort Parkway) in Murfreesboro;
    779. (779) Rutherford County, SR-99, (New Salem Highway) from SW Loop Road to Cason Lane;
    780. (780) Rutherford County, SR-99, (Bradyville Pike) from US-41 (SR-2, SE Broad Street) to Rutherford Boulevard in Murfreesboro;
    781. (781) Rutherford County, SR-99, Bradyville Pike bridge over Murray Creek, LM 28.660;
    782. (782) Rutherford County, US-231 (SR-10), S. Church Street bridge over CSX Railroad, LM 12.630;
    783. (783) Rutherford County, US-41A (SR-16), S. Main Street bridge over Kelly Creek, LM 4.790;
    784. (784) Scott County, Route 02400, Niggs Creek Road bridge over Southern Railway, LM 0.020;
    785. (785) Scott County, Route 0A008, Grave Hill Ridge Road bridge over Puncheoncamp Creek, LM 1.831;
    786. (786) Scott County, Route 0A040, O and W Road bridge over Pine Creek, LM 4.818;
    787. (787) Scott County, Route 0A137, Angel Valley Road bridge over Jellico Creek, LM 0.006;
    788. (788) Scott County, Route 0A209, Black Creek Road bridge over branch, LM 1.754;
    789. (789) Scott County, Route 0A450, Stanley Creek Road bridge over Stanley Creek, LM 0.315;
    790. (790) Scott County, SR-52, (Rugby Highway) from Morgan County line to SR-29 (US-27);
    791. (791) Scott County, US-27 (SR-29), (Lon Foust Highway) from north of Wolf Creek Road to Old US-27 at Robbins;
    792. (792) Scott County, US-27 (SR-29), (Oneida Bypass) from 5-lane section north of Oneida to 5-lane section south of Oneida;
    793. (793) Sequatchie and Bledsoe counties, SR-28, from Dunlap to Pikeville;
    794. (794) Sevier County, Route 0A852, Spruce Lane bridge over Roaring Fork Creek, LM 0.107;
    795. (795) Sevier County, SR-449 Ext., (Veterans Boulevard) from SR-35 to Robert Henderson Road;
    796. (796) Sevier County, SR-XXX, (Jake Thomas Connector) from SR-449 to SR-73 (US-321/441);
    797. (797) Sevier County, US-321 (SR-73), (East Parkway) from Buckhorn Road to SR-416 (Phase 2);
    798. (798) Sevier County, US-321/421 (SR-71), Parkway bridge over West Fork Little Pigeon River, LM 21.040;
    799. (799) Sevier and Jefferson counties, US-411 (SR-35), (Newport Highway) from Sims Road in Sevier County to SR-92 (Dickey Road) in Jefferson County;
    800. (800) Shelby County, I-240, from I-55 to I-40 near Midtown;
    801. (801) Shelby County, I-240, interchange at Airways Boulevard;
    802. (802) Shelby County, I-40, from SR-177 (Germantown Road) to 1.0 mile east of Canada Road;
    803. (803) Shelby County, I-40, from 1.0 mile east of Canada Road to SR-205 (Collierville-Arlington Road);
    804. (804) Shelby County, SR-14, (Austin Peay Highway) from east of Kerrville-Rosemark Road to Tipton County line;
    805. (805) Shelby County, SR-14, (Austin Peay Highway) from SR-385 (Paul Barrett Parkway) to east of Kerrville-Rosemark Road;
    806. (806) Shelby County, SR-14, Jackson Avenue bridge over Harrison Creek, LM 19.120;
    807. (807) Shelby County, US-51 (SR-3), (Elvis Presley Boulevard) from Craft Road to Shelby Drive;
    808. (808) Shelby County, US-51 (SR-3), Thomas Street bridge over overflow, LM 15.690;
    809. (809) Shelby County, US-51 (SR-3), Thomas Street bridge over Canadian National/Illinois Central Railroad, LM 16.440;
    810. (810) Shelby County, US-64/70/79 (SR-1), (Summer Avenue) from I-40 to 0.1 mile north of Sycamore View Road;
    811. (811) Shelby County, US-64/70/79 (SR-1), (Summer Avenue) from 0.1 mile north of Sycamore View Road to 0.1 mile north of Elmore Road;
    812. (812) Shelby County, US-70/79 (SR-1), bridge over Clear Creek, LM 25.610;
    813. (813) Shelby County, US-72 (SR-57), Poplar Avenue bridge over Cypress Creek, LM 2.720;
    814. (814) Shelby County, US-78 (SR-4), (Lamar Avenue) from Mississippi state line to south of Shelby Drive;
    815. (815) Shelby County, US-78 (SR-4), (Lamar Avenue) from south of Shelby Drive to Raines/Perkins Road interchange;
    816. (816) Shelby County, US-78 (SR-4), (Lamar Avenue) from Raines Road/Perkins Road interchange to Getwell Road (SR-176);
    817. (817) Shelby County, US-78 (SR-4), Lamar Avenue bridge over ramps from I-240 and SR-4, LM 7.490;
    818. (818) Shelby and Fayette counties, I-269, ITS expansion from I-40 southward to the Mississippi state line;
    819. (819) Shelby and Fayette counties, SR-385, ITS expansion from mile marker 7 to mile marker 15;
    820. (820) Smith County, Route 01068, Brush Creek Road bridge over Brush Creek, LM 1.020;
    821. (821) Smith County, Route 02076, Webster Road bridge over Little Indian Creek, LM 0.860;
    822. (822) Smith County, Route 02084, Gladice Road bridge over branch, LM 4.030;
    823. (823) Smith County, Route 0A028, Old Kemp Hollow Lane bridge over Peyton Creek, LM 0.025;
    824. (824) Smith County, Route 0A039, Friendship Hollow Lane S. bridge over Lankford Branch, LM 2.996;
    825. (825) Smith County, Route 0A039, Friendship Hollow Lane S. bridge over Lankford Branch, LM 3.411;
    826. (826) Smith County, Route 0A039, Friendship Hollow Lane S. bridge over Lankford Branch, LM 2.873;
    827. (827) Smith County, I-40, bridge over Caney Fork River, LM 15.440;
    828. (828) Smith County, I-40, bridge over Hickman Creek and NFA A156, LM 10.460;
    829. (829) Smith County, I-40, Caney Fork River welcome center renovation;
    830. (830) Smith County, SR-141, Grant Highway bridge over SR-141/I-40, LM 5.450;
    831. (831) Smith County, US-70N (SR-24), rock fall mitigation (near Cordell Hull Bridge);
    832. (832) Stewart County, Route 00945, Bumpus Mills Road bridge over Morgan Branch, LM 6.700;
    833. (833) Stewart County, Route 01797, Pleasant Hill Road bridge over Blue Creek, LM 2.420;
    834. (834) Stewart County, Route 0A335, E. Fork Leatherwood Road bridge over Harris Branch, LM 3.600;
    835. (835) Stewart County, Route 0A380, Upper Standing Rock Road bridge over Terrapin Run Branch, LM 2.472;
    836. (836) Stewart County, Route 0A467, Cox Hollow Road bridge over Standing Rock Creek, LM 0.535;
    837. (837) Sullivan County, Route 01375, Muddy Creek Road bridge over Booher Creek, LM 0.220;
    838. (838) Sullivan County, Route 01392, Old SR-37 bridge over Indian Creek, LM 1.240;
    839. (839) Sullivan County, Route 02599, Devault Bridge Road bridge over Muddy Creek, LM 0.310;
    840. (840) Sullivan County, Route 02640, Fordtown Road bridge over CSX Railroad, LM 3.670;
    841. (841) Sullivan County, Route 03899, Fort Robinson Drive bridge over Dry Branch in Kingsport, LM 0.390;
    842. (842) Sullivan County, Route 03930, State Street bridge over Beaver Creek, LM 0.170;
    843. (843) Sullivan County, Route 0A353, Old Carden Hollow Road bridge over Back Creek, LM 0.445;
    844. (844) Sullivan County, Route 0A456, Eighth Street bridge over Beaver Creek, LM 0.048;
    845. (845) Sullivan County, Route 0A839, Wyatt Hollow Road bridge over Harpers Creek, LM 8.630;
    846. (846) Sullivan County, Route 0B419, Old Blair Gap Road bridge over Walker Fort Creek, LM 2.980;
    847. (847) Sullivan County, Route 0C473, Reedy Creek Lane bridge over Reedy Creek, LM 0.028;
    848. (848) Sullivan County, Route 0C534, Meadow Brooke Lane bridge over Reedy Creek, LM 0.011;
    849. (849) Sullivan County, Route 0C835, Henry Road bridge over Muddy Creek, LM 0.040;
    850. (850) Sullivan County, I-81, ITS expansion between I-26 (Exit 57) interchange and Virginia state line;
    851. (851) Sullivan County, SR-126, (Memorial Boulevard) from East Center Street in Kingsport to east of Cooks Valley Road;
    852. (852) Sullivan County, SR-126, (Memorial Boulevard) from east of Cooks Valley Road to I-81 in Kingsport;
    853. (853) Sullivan County, SR-355, Industry Drive bridge over Reedy Creek, LM 1.910;
    854. (854) Sullivan County, SR-36, Ft. Henry Drive bridge (right lanes) over South Holston River, LM 5.020;
    855. (855) Sullivan County, SR-36, Ft. Henry Drive bridge (left lanes) over South Holston River, LM 5.030;
    856. (856) Sullivan County, SR-44, Dry Branch Road bridge over branch, LM 5.030;
    857. (857) Sullivan County, SR-93, (Sullivan Gardens Parkway) from south of Horse Creek to north of Derby Drive (spot improvements);
    858. (858) Sullivan County, SR-93, John B. Dennis Highway bridge over CSX Railroad, LM 8.440;
    859. (859) Sullivan County, SR-XXX, from US-11E (SR-34) near Bristol Motor Speedway to US-11W (SR-1) near Pinnacle Parkway;
    860. (860) Sullivan and Washington counties, SR-93, (Sullivan Gardens Parkway) from Morgan Lane in Washington County to south of Baileyton Road in Sullivan County (spot improvement);
    861. (861) Sumner County, SR-109, (proposed SR-109 Portland Bypass) from SR-52 west of Portland to existing SR-109 north of Portland;
    862. (862) Sumner County, SR-109, (proposed SR-109 Portland Bypass) from existing SR-109 south of Portland to SR-52 west of Portland;
    863. (863) Sumner County, SR-174, Old US-31 E. bridge over Little Trammel Creek, LM 39.410;
    864. (864) Sumner County, SR-386, interchange at Forest Retreat Road;
    865. (865) Sumner County, SR-386, (Vietnam Veterans Parkway) transit managed lanes and widening from I-65 to US-31E (Phase 1);
    866. (866) Sumner County, US-31E (SR-6), Nashville Pike bridge over East Fork Station Camp Creek, LM 11.910;
    867. (867) Sumner County, US-31E (SR-6), Nashville Pike bridge over West Fork Station Camp Creek, LM 9.84;
    868. (868) Sumner County, US-31E (SR-6), (Broadway) from East Broadway to Dobbins Pike (SR-174);
    869. (869) Sumner and Davidson counties, Route 0B375, Old Shiloh Road bridge over Mansker Creek, LM 0.010;
    870. (870) Tipton County, Route 00808, Bride Road bridge over Mathis Creek, LM 5.070;
    871. (871) Tipton County, Route 00808, Bride Road bridge over Rocky Branch, LM 5.010;
    872. (872) Tipton County, Route 01459, Dunlap Orphanage Road bridge over branch, LM 0.410;
    873. (873) Tipton County, Route 01473, Old Memphis Road bridge over branch, LM 2.715;
    874. (874) Tipton County, Route 05447, Maple Drive bridge over Big Branch Creek, LM 2.740;
    875. (875) Tipton County, Route 0A090, Antioch-Cotton Lake Road bridge over Richland Creek, LM 1.158;
    876. (876) Tipton County, Route 0A118, Salem Road bridge over Branch Creek, LM 1.050;
    877. (877) Tipton County, Route 0A169, S. Terry Lane Road bridge over Hall Creek, LM 0.761;
    878. (878) Tipton County, Route 0A188, McLennan Road bridge over Kelly Branch, LM 0.319;
    879. (879) Tipton County, SR-14, from north of SR-384 to SR-59;
    880. (880) Trousdale County, SR-141, from Hartsville Pike / Cedar Bluff intersection to north of SR-10;
    881. (881) Trousdale and Macon counties, SR-10, (Hartsville Road) safety improvements from Lafayette to Hartsville;
    882. (882) Unicoi County, Route 0A048, Hensley Road bridge over South Indian Creek, LM 0.008;
    883. (883) Unicoi County, Route 0A051, Tumbling Creek Road bridge over Spivey Creek, LM 0.224;
    884. (884) Unicoi County, Route 0A0481, Carver Road bridge over Dry Creek, LM 0.010;
    885. (885) Unicoi County, Route 0A601, Locust Lane bridge over South Indian Creek, LM 0.039;
    886. (886) Unicoi County, SR-107, Unicoi Drive bridge over Indian Creek, LM 5.370;
    887. (887) Union County, Route 01345, Edwards Hollow Road bridge over Little Barren Creek, LM 0.030;
    888. (888) Union County, Route 0A122, Bower Hollow Road bridge over Bull Run Creek, LM 2.129;
    889. (889) Union County, Route 0A128, Little Tater Valley Road bridge over Bull Run Creek, LM 0.070;
    890. (890) Union County, Route 0A137, S. Front Street bridge over Flat Creek, LM 2.030;
    891. (891) Union County, Route 0A156, Johnson Road bridge over North Fork Bull Run Creek, LM 1.387;
    892. (892) Union County, Route 0A156, Beard Valley Road bridge over Raccoon Creek, LM 5.325;
    893. (893) Union County, SR-33, from Knox County line to south of SR-144 (Left);
    894. (894) Union County, SR-61, from Maynardville to Luttrell north city limit;
    895. (895) Van Buren County, Route 0A090, Park Road bridge over Fall Creek Falls Dam overflow, LM 2.720;
    896. (896) Warren County, Route 01100, Shelbyville Road bridge over Small Branch, LM 0.590;
    897. (897) Washington County, Route 01335, Glendale Road bridge over branch, LM 4.470;
    898. (898) Washington County, Route 01352, Bowmantown Road bridge over Carson Creek, LM 0.930;
    899. (899) Washington County, Route 02575, Telford-New Victory Road bridge over Little Limestone Creek, LM 0.140;
    900. (900) Washington County, Route 03960, Milligan Highway bridge over CSX Railroad, LM 0.060;
    901. (901) Washington County, Route 0A674, New Street bridge over Brush Creek, LM 0.535;
    902. (902) Washington County, Route 0A873, Garland Road bridge over Limestone Creek, LM 0.534;
    903. (903) Washington County, Route 0A918, Jarrett Road bridge over branch, LM 1.651;
    904. (904) Washington County, Route 0A970, Mill Street bridge over Little Limestone Creek, LM 0.031;
    905. (905) Washington County, Route 0B099, Little Cassi Creek Road bridge over Cassi Creek, LM 0.769;
    906. (906) Washington County, Route 0B181, Tommy Campbell Road bridge over Little Cherokee Creek, LM 0.098;
    907. (907) Washington County, Route 0B435, Magnolia Extension bridge over CSX Railroad, LM 0.048;
    908. (908) Washington County, Route 0C900, Austin Springs Road bridge over Watauga River, LM 3.537;
    909. (909) Washington County, I-26, interchange at SR-354 (Exit 17);
    910. (910) Washington County, SR-353, Old SR-34 bridge over Little Limestone Creek, LM 11.720;
    911. (911) Washington County, SR-93, (Sullivan Gardens Parkway) from north of Davis Road to north of Fire Hall Road (spot improvement);
    912. (912) Washington County, SR-XXX (06040), (Knob Creek Road) from SR-354 (Boones Creek Road) to Mizpah Hills Drive;
    913. (913) Washington County, US-11E/321 (SR-34), W. Market Street bridge over CSX Railroad, LM 15.530;
    914. (914) Washington and Sullivan counties, SR-36, (Fort Henry Drive) from SR-75 to I-81;
    915. (915) Wayne County, Route 01767, Hurricane Creek Road bridge over Hurricane Creek, LM 16.160;
    916. (916) Wayne County, Route 0A141, Simmons Branch Road bridge over Simmons Branch, LM 1.672;
    917. (917) Wayne County, Route 0A280, Hill Parkway bridge over Butler Creek, LM 0.225;
    918. (918) Wayne County, Route 0A303, Rocky Ford Road bridge over Holly Branch, LM 0.140;
    919. (919) Wayne County, Route 0A312, Wright Ridge Road bridge over Cypress Creek, LM 0.099;
    920. (920) Wayne County, Route 0A387, Cromwell Ridge Road bridge over Bear Creek, LM 0.062;
    921. (921) Weakley County, Route 00815, Ralston Road bridge over North Fork Obion River, LM 6.100;
    922. (922) Weakley County, Route 00859, Old Highway 22 bridge over Middle Fork of the Obion River, LM 10.310;
    923. (923) Weakley County, Route 00859, Evergreen Street bridge over overflow, LM 10.480;
    924. (924) Weakley County, Route 00859, Evergreen Street bridge over overflow, LM 10.650;
    925. (925) Weakley County, Route 01610, Lower Sharon Road bridge over Terrell Branch, LM 2.890;
    926. (926) Weakley County, Route 01616, Oliver Road bridge over Cane Creek, LM 1.780;
    927. (927) Weakley County, Route 0A060, Chestnut Glade Road bridge over Richland Creek, LM 1.271;
    928. (928) Weakley County, Route 0A235, Thompson Creek Road bridge over Thompson Creek, LM 0.230;
    929. (929) Weakley County, Route 0A666, Ryan Road bridge over Cypress Creek, LM 0.385;
    930. (930) Weakley County, SR-54, bridge over branch, LM 5.250;
    931. (931) White County, Route 0A966, Old SR-42 bridge over Falling Water River, LM 6.740;
    932. (932) White County, Route 0A966, Roberts-Matthews Highway bridge over Post Oak Creek, LM 5.300;
    933. (933) White County, SR-111, (Spencer Highway) grade separation at Taft Church Road in Sparta;
    934. (934) Williamson County, I-65, interchange at SR-441 (Moores Lane) reconstruction;
    935. (935) Williamson County, SR-100, (Fairview Boulevard) from Bowie Lake Road to I-840;
    936. (936) Williamson County, SR-397, (Mack C. Hatcher Memorial Parkway) from south of SR-96 to US-431 (SR-106) (northwest quadrant);
    937. (937) Williamson County, SR-397, (Mack C. Hatcher Memorial Parkway) from SR-96 east of Franklin to US-31 (SR-6, Columbia Pike) south of Franklin (southeast quadrant);
    938. (938) Williamson County, SR-96, from east of Arno Road to east of SR-252 (Wilson Pike);
    939. (939) Williamson County, SR-96, from east of SR-252 (Wilson Pike) to I-840;
    940. (940) Williamson County, SR-96, (Franklin Road) Murfreesboro Road bridge over Mayes Creek, LM 16.760;
    941. (941) Williamson County, SR-96, (Franklin Road) Third Avenue S. bridge over Harpeth River, LM 10.740;
    942. (942) Williamson County, US-31 (SR-6), (Columbia Pike) from I-840 in Thompson's Station to Mack Hatcher Parkway in Franklin;
    943. (943) Williamson County, US-31 (SR-6), (Columbia Pike) from Fowlkes Street to SR-397 (Mack Hatcher Parkway);
    944. (944) Williamson County, US-31 (SR-6), E. Main Street bridge over Harpeth River, LM 12.510;
    945. (945) Williamson County, US-31 (SR-6), Columbia Pike bridge over CSX Railroad, LM 8.890;
    946. (946) Williamson County, US-31 (SR-6), Columbia Pike bridge over West Harpeth River, LM 5.720;
    947. (947) Williamson County, US-31A/41A (SR-11), Horton Highway bridge over branch, LM 4.580;
    948. (948) Williamson County, US-31A/41A (SR-11), Horton Highway bridge over Harpeth River, LM 3.500;
    949. (949) Williamson County, US-31A/41A (SR-11), Nolensville Road bridge over branch, LM 16.230;
    950. (950) Williamson County, US-31A/41A (SR-11), Nolensville Road bridge over Mill Creek, LM 14.780;
    951. (951) Williamson County, US-31A/41A (SR-11), Nolensville Road bridge over McCanless Branch, LM 9.460;
    952. (952) Williamson and Davidson counties, US-31A/41A (SR-11), (Nolensville Pike) from south of Burkitt Road to north of Mill Creek;
    953. (953) Williamson and Rutherford counties, SR-96, from I-840 in Williamson County to Veterans Parkway;
    954. (954) Wilson County, I-40, from SR-109 to I-840;
    955. (955) Wilson County, I-40, from I-840 to US-70 (SR-26);
    956. (956) Wilson County, I-40, new interchange at Central Pike (SR-265);
    957. (957) Wilson County, SR-109, from north of US-70 (SR-24) to south of Dry Fork Creek;
    958. (958) Wilson County, SR-141, (Hartsville Pike) from north of Lovers Lane to US-70 (SR-26);
    959. (959) Wilson County, SR-141, (Hartsville Pike) from south of Spring Creek to north of Lovers Lane;
    960. (960) Wilson County, SR-171, (Mt. Juliet Road) from Central Pike (SR-265) to Providence Way;
    961. (961) Wilson County, US-70 (SR-24) (Lebanon Road) from Park Glen Drive to Bender's Ferry Road; and
    962. (962) Wilson and Davidson counties, SR-265, (Central Pike) from Old Hickory Boulevard (SR-45) to Mt. Juliet Road (SR-171).
  3. (c) The department of transportation may make recommendations in its annual transportation improvement program that projects be deleted from, added to, or modified in the list of projects identified in subsection (b).
  4. (d) On or before July 1, 2018, and on or before each July 1 occurring thereafter, the department of transportation shall submit a report to the general assembly on the status of the projects listed in subsection (b), including at a minimum the following information for each project:
    1. (1) The date on which engineering activities began, or are anticipated to begin, if known;
    2. (2) The date on which right-of-way acquisition activities began, or are anticipated to begin, if known;
    3. (3) The date on which construction activities began, or are anticipated to begin, if known; and
    4. (4) The date on which construction was completed, as applicable.
  5. (e) The report required under subsection (d) shall be supplemental to, and not in place of, any other report the department of transportation is required to submit to the general assembly on the status of highway projects.
History (1)
  • Acts 2017, ch. 181, § 23.
Part 11 Alternative Fuels
§ 67-3-1101. Alternative fuels — Part definitions. [Effective until January 1, 2025. See the version effective on January 1, 2025.]
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commercial purposes” means use in a trade or business;
    2. (2) “Dealer” means an entity or person who:
      1. (A) Is the operator of a retail station or other retail outlet and who delivers liquified gas into the fuel supply tanks of motor vehicles;
      2. (B) Delivers liquified gas into a dispenser capable of fueling motor vehicles; or
      3. (C) Dispenses compressed natural gas to the public;
    3. (3) “Liquified gas” means all combustible gases that exist in the gaseous state at sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.) absolute, but does not include gasoline or diesel fuel or compressed natural gas;
    4. (4) “Motor vehicle” means a self-propelled vehicle licensed for highway use;
    5. (5) “Passenger car” means a motor vehicle designed for carrying ten (10) or fewer passengers and used for the transportation of persons;
    6. (6) “Taxable sales or deliveries” means the delivery in this state of liquified gas or compressed natural gas into the fuel supply tank of a motor vehicle that does not have affixed a current user permit; and
    7. (7) “User” means a person who operates a motor vehicle in this state that is propelled by liquified gas or compressed natural gas.
Backlinks (1)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2201
  • Acts 2012, ch. 822, § 1.
§ 67-3-1101. Alternative fuels — Part definitions. [Effective on January 1, 2025. See the version effective until January 1, 2025.]
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commercial purposes” means use in a trade or business;
    2. (2) “Dealer” means an entity or person who:
      1. (A) Is the operator of a retail station or other retail outlet and who delivers liquified gas into the fuel supply tanks of motor vehicles;
      2. (B) Delivers liquified gas into a dispenser capable of fueling motor vehicles; or
      3. (C) Dispenses compressed natural gas or hydrogen gas to the public;
    3. (3) “Liquified gas” means all combustible gases that exist in the gaseous state at sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.) absolute, but does not include gasoline or diesel fuel, compressed natural gas, or hydrogen gas;
    4. (4) “Motor vehicle” means a self-propelled vehicle licensed for highway use;
    5. (5) “Passenger car” means a motor vehicle designed for carrying ten (10) or fewer passengers and used for the transportation of persons;
    6. (6) “Taxable sales or deliveries” means the delivery in this state of liquified gas, compressed natural gas, or hydrogen gas into the fuel supply tank of a motor vehicle that does not have affixed a current user permit; and
    7. (7) “User” means a person who operates a motor vehicle in this state that is propelled by liquified gas, compressed natural gas, or hydrogen gas.
Backlinks (1)
History (4)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2201
  • Acts 2012, ch. 822, § 1
  • 2024, ch. 859, § 2.
§ 67-3-1102. Liquified gas — Rate of tax.
  1. (a) A use tax is imposed on liquified gas used for the propulsion of motor vehicles on the public highways of this state. For the purpose of determining the tax on liquified gas, a diesel gallon equivalent factor of six and six one-hundredths pounds (6.06 lbs.) per gallon shall be used. The rate of the tax imposed by this section shall be:
    1. (1) On or after July 1, 2017, through June 30, 2018, seventeen cents (17¢) per gallon;
    2. (2) On or after July 1, 2018, through June 30, 2019, nineteen cents (19¢) per gallon; and
    3. (3) On or after July 1, 2019, twenty-two cents (22¢) per gallon.
  2. (b) Governmental agencies are exempt from the liquified gas tax imposed by subsection (a).
Backlinks (2)
History (4)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2202
  • Acts 2014, ch. 772, § 1
  • 2017, ch. 181, § 25.
§ 67-3-1103. Liquified gas — Time of payment of tax.
  1. (a) A person using a liquified gas propelled motor vehicle, including a motor vehicle equipped to use liquified gas interchangeably with another motor fuel, that is required to be licensed in this state for use on the public highways, shall prepay the tax imposed in § 67-3-1102 to the commissioner on an annual basis.
  2. (b) An out-of-state user shall pay the liquified gas tax on delivery of the liquified gas into the fuel supply tank of a motor vehicle.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2203.
§ 67-3-1104. Liquified gas — Dealer permits.
  1. (a) A dealer who sells taxable liquified gas, or a user whose motor vehicle is licensed in this state, shall file an application with the commissioner for the kind and class of permit required by this part, which is not assignable.
  2. (b) An application for a permit must be filed on a form provided by the commissioner showing the kind and class of permit desired, the odometer reading of the motor vehicle for which application is made, and other information required by the commissioner.
  3. (c) A dealer permit shall be posted in a conspicuous place or kept available for inspection at the principal place of business of the permittee. A dealer permittee shall reproduce the permit and display it in a conspicuous place at each additional place of business from which liquified gas is sold, delivered or used in motor vehicles. A user permit shall be affixed in the upper right corner of the front windshield on the passenger side of the vehicle.
  4. (d) A dealer permit authorizes a dealer to collect and remit taxes on liquified gas delivered into the fuel supply tanks of motor vehicles that do not have affixed a user permit.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2204.
§ 67-3-1105. Liquified gas — Bond.
  1. Application for a dealer permit shall be accompanied by a bond, payable to the state of Tennessee, as provided in part 6 of this chapter.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2205.
§ 67-3-1107. Liquified gas — Duration of permits.
  1. (a) A dealer permit is permanent and valid as long as the permittee furnishes timely reports and remits the taxes when due, or until surrendered by the holder or cancelled by the commissioner.
  2. (b) A user permit shall be issued annually and is valid from the date of issuance through June 30 of each year, unless a motor vehicle for which the tax is prepaid is sold or no longer used on the public highways. Application must be made each year for a current user permit.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2207.
§ 67-3-1108. Liquified gas — Liability of dealer for sale to unauthorized users.
  1. (a) A dealer who makes a sale or delivery of liquified gas into a fuel supply tank of a motor vehicle that does not have a user permit affixed is liable to the state for the tax imposed and shall report and pay the tax in the manner required by this part.
  2. (b) A dealer may make a sale or delivery of liquified gas into a fuel supply tank of a motor vehicle that does not have a user permit affixed if the dealer is shown a copy of the application for a user permit for the motor vehicle made within thirty (30) days of the sale or delivery. However, if the user permit is not granted, the dealer shall be liable to the state for the tax imposed.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2208.
§ 67-3-1109. Liquified gas — Records and invoices.
  1. (a) A dealer shall keep for four (4) years, open to inspection at all times by the department and the attorney general and reporter, a complete record of all liquified gas received or purchased, sold, or delivered.
  2. (b) A user dealer operating a vehicle used for commercial purposes shall keep for four (4) years, open to inspection at all times by the commissioner and the attorney general and reporter, a record of:
    1. (1) The total miles traveled in all states by all the user's motor vehicles traveling into or from Tennessee and the total quantity of liquified gas used in the motor vehicles; and
    2. (2) The total miles traveled in Tennessee and the total quantity of liquified gas delivered into the fuel supply tanks of motor vehicles.
  3. (c) Each sale or delivery of liquified gas into the fuel supply tanks of a motor vehicle shall be evidenced by an invoice. The prenumbered invoice must be printed and contain:
    1. (1) The preprinted or stamped name and address of the dealer;
    2. (2) The date;
    3. (3) The number of gallons delivered;
    4. (4) The name and address of the person taking delivery;
    5. (5) The number of the user permit or if the vehicle does not have a permit, the state of registration and the license number; and
    6. (6) The amount of tax paid or accounted for stated separately from the selling price.
  4. (d) A user required to report ending odometer readings may deduct the miles traveled outside Tennessee from the total miles traveled.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2209.
§ 67-3-1110. Liquified gas — Reports — Payment of tax — Computation of tax.
  1. (a) A dealer, on or before the twenty-fifth day of the month following the end of each calendar quarter, shall file a report and remit the tax due. A dealer who has made no taxable deliveries during the reporting period shall file a report.
  2. (b) A user operating a vehicle used for commercial purposes shall be required to submit a report on or before July 25 of each year, for the previous permitted year and shall remit the tax due. The report must state the ending odometer reading, the number of miles traveled in Tennessee, the number of miles traveled outside Tennessee, and other information required by the commissioner. In the absence of an ending odometer reading, the previous year's mileage shall be presumed to be forty thousand (40,000) miles. A report shall be filed even if no tax is due. Failure to file this report shall result in the tax being assessed based upon the presumption that the vehicle traveled forty thousand (40,000) miles.
  3. (c)
    1. (1) In computing the tax to be remitted, a user required to report ending odometer readings shall divide the total miles traveled in Tennessee by the mileage allowance for the applicable class. The resulting number of gallons used shall be multiplied by the tax rate imposed, to obtain the tax due. The cost of the permit shall be deducted from the tax due to obtain the tax to be remitted with the annual report.
    2. (2) The number of gallons used shall be computed using the following mileage allowances:
      1. Passenger cars — 19 miles per gallon;
      2. Class 1 — 14 miles per gallon;
      3. Class 2 — 14 miles per gallon;
      4. Class 3 — 8 miles per gallon;
      5. Class 4 — 8 miles per gallon; and
      6. Class 5 — 5 miles per gallon.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2210.
§ 67-3-1111. Liquified gas — Transfer, destruction, or modification of motor vehicle — Refunds of tax.
  1. (a) When a motor vehicle bearing a permit is sold or transferred, the seller and purchaser shall notify the commissioner within ten (10) days of the sale or transfer and a new permit shall be issued in the new owner's name.
  2. (b) When a motor vehicle bearing a permit is destroyed or the liquified gas carburetor system removed, the user shall be refunded that portion of the prepaid tax that corresponds to the number of complete months remaining in the permitted year, beginning with the month following the date on which the vehicle or carburetor was no longer utilized. No refund shall be made if the use of the vehicle ceased in June. The user shall submit to the commissioner an affidavit identifying the vehicle, the permit number, the circumstances that entitle a refund, and other information required by the commissioner. On receipt of the affidavit and when satisfied as to the circumstances, the commissioner shall make refund.
  3. (c) A user is entitled to a refund of the amount of the Tennessee liquified gas tax paid on each gallon of liquified gas used outside this state. On verification by the commissioner that the report was complete and timely filed, the refund shall be paid if ten dollars ($10.00) or more is due the user. No refund less than ten dollars ($10.00) shall be paid. No refund shall be granted if the report is not timely filed.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2211.
§ 67-3-1112. Liquified gas — Penalties for violations.
  1. (a) If any permittee fails to make the reports or pay the taxes at the time required, the commissioner may, upon compliance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, suspend the permit until such time as either the reports are submitted or the taxes are paid, or both of them are done.
  2. (b) If any owner of a liquified gas propelled motor vehicle that is required to be licensed in Tennessee for use on the public highways fails to prepay the tax as required in [former] § 67-3-1106 [repealed], the commissioner shall proceed to assess and collect the amount due to be paid, together with a penalty of one hundred dollars ($100).
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2212.
§ 67-3-1113. Compressed natural gas — Rate of tax. [Effective until January 1, 2025. See the version effective on January 1, 2025.]
  1. (a) A use tax is imposed on compressed natural gas used for the propulsion of motor vehicles on the public highways of this state. For the purpose of determining the tax on compressed natural gas, a gallon equivalent factor of five and sixty-six one-hundredths pounds (5.66 lbs.) per gallon shall be used. The rate of the tax imposed by this section shall be:
    1. (1) On or after July 1, 2017, through June 30, 2018, sixteen cents (16¢) per gallon;
    2. (2) On or after July 1, 2018, through June 30, 2019, eighteen cents (18¢) per gallon; and
    3. (3) On or after July 1, 2019, twenty-one cents (21¢) per gallon.
  2. (b) Governmental agencies are exempt from the compressed natural gas tax imposed by subsection (a).
Backlinks (5)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2213
  • Acts 2017, ch. 181, § 26.
§ 67-3-1113. Compressed natural gas — Rate of tax. [Effective on January 1, 2025. See the version effective until January 1, 2025.]
  1. (a) A use tax is imposed on compressed natural gas and hydrogen gas used for the propulsion of motor vehicles on the public highways of this state. For the purpose of determining the tax on compressed natural gas and hydrogen gas, a gallon equivalent factor of five and sixty-six one-hundredths pounds (5.66 lbs.) per gallon shall be used. The rate of the tax imposed by this section shall be:
    1. (1) On or after July 1, 2017, through June 30, 2018, sixteen cents (16¢) per gallon;
    2. (2) On or after July 1, 2018, through June 30, 2019, eighteen cents (18¢) per gallon; and
    3. (3) On or after July 1, 2019, twenty-one cents (21¢) per gallon.
  2. (b) Governmental agencies are exempt from the tax imposed by subsection (a).
Backlinks (5)
History (4)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2213
  • Acts 2017, ch. 181, § 26
  • 2024, ch. 859, § 3.
§ 67-3-1114. Compressed natural gas — User's permits.
  1. (a) A user of compressed natural gas shall apply to and obtain from the commissioner a compressed natural gas user permit, unless the user purchases compressed natural gas from a dealer defined in § 67-3-1101.
  2. (b) A compressed natural gas user's permit shall be issued by the commissioner to a person who uses compressed natural gas in a licensed motor vehicle in this state. To procure a permit, each person shall file with the commissioner an application and meet the bonding provisions of part 6 of this chapter.
  3. (c) A holder of a compressed natural gas user's permit shall provide written notice to the commissioner of intent to terminate the permit. Such permit shall be terminated effective on the date of the notice.
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2214
  • Acts 2012, ch. 822, § 4.
§ 67-3-1115. Compressed natural gas — Reports.
  1. (a) For the purpose of determining the amount of tax imposed by § 67-3-1113, each permittee shall file with the commissioner, on a form prescribed by the commissioner, a monthly report on or before the twenty-fifth day of the month following the month of activity, whether or not fuel is used. The report shall be executed under a declaration of penalty of perjury and shall state the total number of gallons of compressed natural gas used by the permittee within the state.
  2. (b) A permittee who consumes compressed natural gas in motor vehicles for highway use shall report each vehicle and the fuel used. Odometer readings of motor vehicles at the beginning and the end of the month shall be furnished, together with other information as required by the commissioner. The permittee shall keep odometers on all the motor vehicles in good working order at all times. The permittee need not provide odometer readings, if excused by the commissioner for good cause shown.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2215.
§ 67-3-1116. Compressed natural gas — Records.
  1. A user shall keep for four (4) years, open to inspection at all times by the department and the attorney general and reporter, a complete record of all compressed natural gas received and used.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2216.
§ 67-3-1117. Compressed natural gas — Penalty for unauthorized highway usage.
  1. The commissioner may assess a civil penalty of five hundred dollars ($500) against a person who uses compressed natural gas in a motor vehicle on the public highways without possessing a valid compressed natural gas user's permit.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2217.
§ 67-3-1118. Compressed natural gas — Sale or transfer of motor vehicle.
  1. When a compressed natural gas motor vehicle is sold or transferred, the seller and the purchaser shall notify the commissioner within ten (10) days of the sale or transfer, and the purchaser shall register with the department.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2218.
§ 67-3-1119. Nonassignable compressed natural gas dealer permit.
  1. (a) A dealer shall file an application with the commissioner for a compressed natural gas dealer permit, which is not assignable.
  2. (b) An application for a permit shall be filed on a form provided by the commissioner.
  3. (c) The permit shall be posted in a conspicuous place or kept available for inspection at the principal place of business of the permittee. A dealer permittee shall reproduce the permit and display it in a conspicuous place at each additional place of business from which natural gas is sold, delivered or used in motor vehicles.
  4. (d) Application for a permit shall be accompanied by a bond, payable to this state, as provided in part 6 of this chapter.
  5. (e) A permit is permanent and valid as long as the permittee furnishes timely reports and remits the taxes when due, or until surrendered by the holder or cancelled by the commissioner.
History (1)
  • Acts 2012, ch. 822, § 2.
§ 67-3-1120. Definition of “qualified natural gas dispenser” — Collection, remittance and reporting of taxes — Keeping of records — Inspections.
  1. (a) “Qualified natural gas dispenser” means a dispenser that measures the amount dispensed by means of a National Type Evaluation Program (NTEP) certified fuel meter.
  2. (b) A natural gas dealer permit authorizes a dealer to collect and remit taxes on compressed natural gas delivered into the fuel supply tanks of motor vehicles by means of a qualified natural gas dispenser with meter capability. When compressed natural gas is delivered by a dealer to a customer's vehicle by means of a qualified natural gas dispenser, user permits under this part are not required.
  3. (c) Dealers shall be legally responsible for collecting the tax imposed by § 67-3-1113 at the time of delivery to a vehicle.
  4. (d) For the purpose of reporting the amount of tax imposed by § 67-3-1113 on metered compressed natural gas, each dealer shall file with the commissioner, on a form prescribed by the commissioner, a monthly report on or before the twenty-fifth day of the month following the month of activity, whether or not fuel is used or sold, and remit the tax due and collected. The report shall be executed under a declaration of penalty of perjury and shall state the total amount of compressed natural gas dispensed by the permittee within the state.
  5. (e) A dealer shall keep for four (4) years, open to inspection at all times by the department and the attorney general and reporter, a complete record of all metered compressed natural gas received and used or sold.
  6. (f) Meters and qualified natural gas dispensers are subject to inspection and verification by the department of agriculture's weights and measures in accordance with title 47, chapter 26, part 9 and such part's enforcement provisions.
History (1)
  • Acts 2012, ch. 822, § 3.
Part 12 Highway User Fuel Tax
§ 67-3-1201. Part definitions. [Effective until January 1, 2025. See the version effective on January 1, 2025.]
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Alternative fuels tax” means the per gallon tax on liquified gas and compressed natural gas imposed by part 11 of this chapter;
    2. (2) “Diesel tax” means the per gallon tax on motor fuel imposed by part 2 of this chapter;
    3. (3) “Freight motor vehicle” has the same meaning as “qualified motor vehicle” defined in subdivision (8);
    4. (4) “Gasoline tax” means the per gallon tax imposed on gasoline by part 2 of this chapter;
    5. (5) “Highway user fuel tax” means the gasoline tax, diesel tax, and/or alternative fuels tax as defined in this part at the rates set forth and in the amount determined under § 67-3-1204;
    6. (6) “Licensee” means any person who holds an uncancelled license authorized by the international fuel tax agreement and issued by a state of the United States, the District of Columbia, or a province or territory of Canada;
    7. (7) “Permittee” means any person who is the holder of a permit authorized to be issued under § 67-3-1202(a) and (b), and who is subject to the tax imposed by §§ 67-3-1203 and 67-3-1204;
    8. (8) “Qualified motor vehicle” means a motor vehicle used, designed or maintained for transportation of persons or property and:
      1. (A) Having two (2) axles and a gross vehicle weight or registered gross vehicle weight exceeding twenty-six thousand pounds (26,000 lbs.); or
      2. (B) Having three (3) or more axles regardless of weight; or
      3. (C) Is used in combination, when the weight of such combination exceeds twenty-six thousand pounds (26,000 lbs.) gross vehicle weight; and
      4. (D) “Qualified motor vehicle” does not include recreational vehicles;
    9. (9) “Recreational vehicle” means vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor;
    10. (10) “Revoke” or “revocation” means withdrawal of a permit or license and the privileges related to the permit or license by the jurisdiction issuing the permit or license; and
    11. (11) “Suspend” or “suspension” means temporary removal of privileges granted to the permittee or licensee by the jurisdiction issuing the permit or license.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2301.
§ 67-3-1201. Part definitions. [Effective on January 1, 2025. See the version effective until January 1, 2025.]
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Alternative fuels tax” means the per gallon tax on liquified gas, compressed natural gas, and hydrogen gas imposed by part 11 of this chapter;
    2. (2) “Diesel tax” means the per gallon tax on motor fuel imposed by part 2 of this chapter;
    3. (3) “Freight motor vehicle” has the same meaning as “qualified motor vehicle” defined in subdivision (8);
    4. (4) “Gasoline tax” means the per gallon tax imposed on gasoline by part 2 of this chapter;
    5. (5) “Highway user fuel tax” means the gasoline tax, diesel tax, and/or alternative fuels tax as defined in this part at the rates set forth and in the amount determined under § 67-3-1204;
    6. (6) “Licensee” means any person who holds an uncancelled license authorized by the international fuel tax agreement and issued by a state of the United States, the District of Columbia, or a province or territory of Canada;
    7. (7) “Permittee” means any person who is the holder of a permit authorized to be issued under § 67-3-1202(a) and (b), and who is subject to the tax imposed by §§ 67-3-1203 and 67-3-1204;
    8. (8) “Qualified motor vehicle” means a motor vehicle used, designed or maintained for transportation of persons or property and:
      1. (A) Having two (2) axles and a gross vehicle weight or registered gross vehicle weight exceeding twenty-six thousand pounds (26,000 lbs.); or
      2. (B) Having three (3) or more axles regardless of weight; or
      3. (C) Is used in combination, when the weight of such combination exceeds twenty-six thousand pounds (26,000 lbs.) gross vehicle weight; and
      4. (D) “Qualified motor vehicle” does not include recreational vehicles;
    9. (9) “Recreational vehicle” means vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor;
    10. (10) “Revoke” or “revocation” means withdrawal of a permit or license and the privileges related to the permit or license by the jurisdiction issuing the permit or license; and
    11. (11) “Suspend” or “suspension” means temporary removal of privileges granted to the permittee or licensee by the jurisdiction issuing the permit or license.
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2301
  • Acts 2024, ch. 859, § 4.
§ 67-3-1202. Permits and licenses.
  1. (a) Prior to operation in this state or entry into this state of any qualified motor vehicle engaged in the transportation of property in interstate commerce in or through this state, the owners or operators of such vehicle shall make application to the department for a permit or license for each such qualified motor vehicle to be operated upon the highways of this state. The application shall be upon forms furnished by the department.
    Backlinks (1)
  2. (b) The permit or license shall be issued by the commissioner when it is determined that lawful requirements have been met by the applicant.
  3. (c) A permit or license issued by the department for operation of a qualified motor vehicle shall be in the form as may be prescribed by the commissioner.
  4. (d) If any qualified motor vehicle enters this state and operates upon the highways of the state without a permit or license described in subsection (c) and identification as may be prescribed by the commissioner, the owner and operator of the vehicle shall be liable for and may be required to pay all of the freight motor vehicle registration fees, licenses and taxes assessable by law.
  5. (e) Notwithstanding subsection (d), a lessor who is regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to permittees or licensees or other lessees may be deemed to be the permittee or licensee, and such lessor may be issued a license if an application has been properly filed and approved by the base jurisdiction.
  6. (f) In the case of a carrier using independent contractors under long-term leases, that is, a lease longer than thirty (30) days, the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. If the lessee carrier assumes responsibility for reporting and paying motor fuel taxes and alternative fuel taxes, the base jurisdiction shall be the base jurisdiction of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor.
  7. (g) For motor vehicle leases of thirty (30) days or less, the fuels use/miles or kilometers permit or license holder for the motor vehicle under lease will be liable.
  8. (h)
    1. (1) The department may, in its sole discretion, contract with any business entity that maintains a fleet of two hundred (200) or more motor vehicles to allow the business entity to provide any specific service, or all services, normally performed by the department relative to issuance of a permit or license authorized by this part that would have otherwise been provided by the department for each qualified motor vehicle in its fleet to be operated upon the highways of this state. The existence of such a contract shall not be interpreted to diminish, restrict, or limit the authority of the department to administer or enforce applicable provisions of any law with which a motor vehicle within the contracting business entity's fleet is not in compliance.
    2. (2) Contracts with business entities entered into by the department under this subsection (h) shall set forth in detail the duties and responsibilities of each party, shall require compliance with all applicable federal and state laws, shall not contain provisions that are contrary to any federal or state statute, and shall comply with the Federal Drivers' Privacy Protection Act (18 U.S.C. § 2721 et seq.), and the Uniform Motor Vehicle Records Disclosure Act, compiled in title 55, chapter 25.
    3. (3) A contract entered into under the authority of this subsection (h) shall be at no cost to the department except for the cost of decals, forms and administrative costs that the department would normally incur in issuing any permit or license authorized by this part for motor vehicles within the contracting business entity's fleet were it not for the contract.
    4. (4) A contract entered into under the authority of this subsection (h) shall, in addition to all other requirements included in the contract, require the contracting business entity to:
      1. (A) Keep all records, inventories, copies and other related paperwork that the department would keep if it were issuing any permit or license authorized by this part for qualified motor vehicles within the contracting business entity's fleet;
      2. (B) Forward to the department, no later than the tenth day of each month, copies of all applications, permits, licenses and other related documents, completed forms, or other paperwork that the department requires and that have been issued, completed or processed by the contracting business entity during the prior month;
      3. (C) No later than the tenth day of each month, remit to the department all fees and other moneys related to issuance of permits and licenses authorized by this part for qualified motor vehicles within the contracting business entity's fleet that would have been required to be collected during the prior month were it not for the contract entered into under this subsection (h); and
      4. (D) Timely make all reports that the department requires, including all applicable reports that a county clerk would be required to make if the clerk were issuing permits or licenses authorized by this part for qualified motor vehicles within the contracting business entity's fleet.
    5. (5) A delinquency in forwarding to the department any remittance, report, application, document, form or paperwork required of the contracting entity by law or by contract shall result in a penalty of five percent (5%) of the delinquent remittance, or the remittance associated with the delinquent report, application, document, form or paperwork, as the case may be, for each thirty (30) days or fraction of the thirty (30) days that the delinquency continues; provided, however, that the penalty may be waived by the commissioner upon the showing of good and reasonable cause. In no case shall the penalty provided for in this subdivision (h)(5) exceed twenty five percent (25%) of the remittance base.
    6. (6) If the department enters into a contract with a business entity under this subsection (h) and the business entity fails to strictly comply with any requirement or provision of the contract, the contract may be rescinded in its entirety and canceled at the discretion of the commissioner; provided, however, that the effective date of the cancellation shall be thirty (30) business days after the date the department gives notice by certified mail to the business entity that the contract is being rescinded and canceled.
History (5)
  • Acts 1997, ch. 316, § 1
  • 2001, ch. 166, § 2
  • T.C.A., § 67-3-2302
  • Acts 2007, ch. 484, § 106
  • 2008, ch. 1007, § 9.
§ 67-3-1203. Bond.
  1. (a) In the event the commissioner determines that a bond is needed to protect state revenue, the application for a permit or license shall be accompanied by a bond, the form of which shall be prescribed by the department. The bond shall be at least twice the estimated average quarterly, or annually, if the user is filing annual, tax liability of the user.
  2. (b) The required bond shall be conditioned upon quarterly, or annual, in the case of annual filers, payment on or before the due date, of the highway user fuel tax imposed per each gallon of gasoline, motor fuel or alternative fuel, used in the operation of a qualified motor vehicle on the highways of Tennessee. Instead of a personal or corporate surety on such bond, the commissioner may allow the bond to be secured by deposit of collateral, having a face value equal to the bond amount, in the form of a certificate of deposit, or equivalent to a certificate of deposit, as accepted and authorized by the banking laws of this state. Such collateral may be deposited with any authorized state depository designated by the commissioner.
Backlinks (3)
History (4)
  • Acts 1997, ch. 316, § 1
  • 2001, ch. 166, § 3
  • T.C.A., § 67-3-2303
  • Acts 2007, ch. 484, § 107.
§ 67-3-1204. Amount of tax — Formula.
  1. The amount of tax payable to the state is determined by dividing the total number of miles traveled in the state during the quarter or annual reporting period, as the case may be, by the average number of miles of motor vehicle travel per gallon of gasoline or diesel fuel, or the per gallon equivalents of alternative fuels, and multiplying the result by the rates of the tax per gallon as imposed in parts 2 and 11 of this chapter.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2304.
§ 67-3-1205. Waiver of provisions — Temporary and restricted use fuel permits.
  1. (a) The commissioner may waive this part for a freight motor vehicle carrying products of the farm during the seasonal harvest seasons to such an extent as is practical in order to encourage the bringing of farm products to Tennessee plants and mills. The commissioner is vested with authority to issue rules for the enforcement of this exception.
  2. (b)
    1. (1) The requirements of this part may be waived with respect to a freight motor vehicle operated over the highways of this state on an occasional or infrequent basis upon the owner or operator obtaining a temporary fuel permit for the vehicle from the department.
    2. (2) The temporary fuel permit may be issued for a period of time not to exceed seven (7) consecutive days and shall be valid only for the particular vehicle for which it has been issued.
    3. (3) The department may furnish temporary fuel permits in bulk for issuance by the department or by private wire services and like companies pursuant to contract.
    4. (4) The fee for any temporary fuel permit shall be thirty dollars ($30.00).
  3. (c)
    1. (1) The requirements of this part shall be waived with respect to a freight motor vehicle operated over the highways of this state on an occasional or infrequent basis for the purpose of transporting horses, cattle, or other livestock, for exhibition or breeding within this state; provided, that the owner or operator obtains a restricted use fuel permit for the vehicle from the department.
    2. (2) Such restricted use fuel permit shall be issued for a period of time of not less than one (1) month nor more than one (1) year, at the discretion of the owner or operator, and shall be valid only for the particular vehicle for which it has been issued and only when such vehicle is transporting horses, cattle, or other livestock, for exhibition or breeding within this state.
    3. (3) The fee for such restricted use fuel permit shall be calculated at the rate of ten dollars ($10.00) for each month, and fraction of a month, during which such permit will remain valid.
    4. (4) The commissioner is vested with authority to promulgate rules for the implementation and enforcement of this exception.
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2305
  • Acts 2007, ch. 484, § 108.
§ 67-3-1206. Annual and quarterly reports — Payments — Penalty.
  1. (a) Licensees whose operations, other than in the base jurisdiction, total five thousand (5,000) miles in all international fuel tax agreement member jurisdictions may request to report on an annual basis. This will be based upon filing history. Should any licensee wish to report annually, the licensee must petition the base jurisdiction to do so. If the base jurisdiction agrees to permit annual reporting and no other jurisdiction objects, and the commissioner of revenue of this state does not object, annual reporting shall be allowed.
  2. (b) Each permittee or licensee shall file a quarterly report, or annual report, if applicable, on forms prescribed by the department, showing the total number of qualified motor vehicle miles of operation in this state and any other information as may be required by the commissioner. The report shall reflect activity during the preceding calendar quarter or annual reporting period, as the case may be, and shall be due on the last day of the month following the close of the calendar quarter or annual reporting period for which the report is submitted.
  3. (c) The full amount of the gasoline tax, motor fuel tax, or alternative fuel tax, imposed by this state shall be paid at the same time as the report is transmitted on or before each quarterly or annual due date set forth in subsection (b). The commissioner has the authority to require a permittee or licensee to make such payments in cash or by money order, certified check, or cashier's check.
  4. (d) Failure by a permittee or licensee to file a proper quarterly or annual report, as the case may be, or to pay the proper tax may be considered by the commissioner as a basis to require such permittee or licensee to secure a bond pursuant to § 67-3-1203, or if such bond has already been secured, such failure shall cause any such bond to be forfeited.
Backlinks (1)
History (3)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2306
  • Acts 2004, ch. 566, § 1.
§ 67-3-1207. Tax credit for purchases in state — Refund of taxes.
  1. (a) Each permittee or licensee is entitled to a credit on the highway user fuel tax equivalent to the tax paid on all gasoline, motor fuel, or alternative fuel, purchased by such permittee or licensee within this state and used in its operations outside Tennessee. Evidence of payment of the tax shall be furnished by the permittee or licensee claiming the credit and such evidence shall be in the form required by, or satisfactory to, the commissioner.
  2. (b) When the amount of the credit to which any permittee or licensee is entitled for any quarter, or any annual reporting period, as the case may be, exceeds the amount of the highway user fuel tax for which the permittee or licensee is liable for the same quarter, or annual reporting period, the excess may be allowed as a credit on the tax for which the permittee or licensee would otherwise be liable for another quarter or annual reporting period. Approved credit carryovers may be applied against a permittee's or licensee's highway user fuel tax liability only if claimed on a report filed for any one (1) of the eight (8) quarters succeeding the quarter in which the excess credit accrued, or in the case of annual filers, on a report filed for any one (1) of the two (2) years succeeding the year in which the excess credit accrued.
  3. (c) Upon application within two (2) years from the end of any quarterly reporting period, or annual reporting period, as the case may be, duly verified and supported by evidence as may be satisfactory to the commissioner, the excess referred to in subsection (b) may be refunded. The refund may be made if it appears that the permittee or licensee has paid to another state, under a lawful requirement of that state, a tax similar in effect to the tax provided on the use or consumption in such state of gasoline, motor fuel, or alternative fuel, purchased in Tennessee. The refund shall not be made at a rate other than the Tennessee rate in effect at the time of purchase.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2307.
§ 67-3-1208. Violations — Penalty — Interest — Refunds.
  1. (a) It is unlawful for any owner or operator of a qualified motor vehicle to permit it to be operated over any highway of this state without complying with this part. A violation of this subsection (a) is a Class C misdemeanor.
  2. (b) A penalty of fifty dollars ($50.00) or ten percent (10%) of the delinquent taxes, whichever is greater, shall be assessed for failure to file a report, or for filing a late report, or for underpayment of taxes.
  3. (c) Interest at the rate of one percent (1%) per month, calculated from the date tax was due for each month or fraction of a month, until paid, shall be assessed on all delinquent or deficient taxes.
  4. (d) Refunds determined to be properly due shall be made within ninety (90) days after receipt of a request for payment, with proper documentation, from a permittee or licensee. If the refund is not made within this time period, interest shall accrue at the rate of one percent (1%) per month calculated for each month or major fraction of a month, in excess of the time in which the refund should have been made.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2308.
§ 67-3-1209. Reciprocal agreements.
  1. (a) The commissioner is authorized to enter into reciprocal agreements on behalf of the state of Tennessee with the duly authorized representatives of other jurisdictions providing for the fuel use tax registration of vehicles, establishing periodic fuel use reporting and fuel use tax payment requirements from owners of such vehicles, and disbursement of funds collected due to other jurisdictions based on mileage traveled and fuel used in those jurisdictions.
  2. (b) Notwithstanding any statute contrary to any reciprocal agreement entered into by the commissioner as authorized by this section, the reciprocal agreement shall govern and apply to all matters relating to administration and enforcement of the highway user fuel tax. In the event the language of any reciprocal agreement entered into by the commissioner, as authorized by this section, is later amended so that it conflicts with or is contrary to any statute, the commissioner shall consider the amended language of the reciprocal agreement controlling and shall administer and enforce the highway user fuel tax in accordance with the amended language of the reciprocal agreement.
  3. (c) The commissioner may likewise enter into reciprocal agreements or arrangements with the duly authorized representatives of other jurisdictions to allow persons with properly registered vehicles of not less than twenty-six thousand pounds (26,000 lbs.) gross weight, or having three (3) axles that are periodically engaged in the transportation of property in or through this state, to operate such vehicles in other jurisdictions without the purchase of temporary fuel permits in such jurisdictions when used in transporting properly registered antique vehicles or antique farm equipment to and from shows or exhibitions of such vehicles or equipment. Such agreement or arrangement does not apply to any for-hire carrier.
  4. (d) The commissioner may adopt and promulgate such rules and regulations as may be necessary to effectuate and administer this section.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2309.
§ 67-3-1210. Delinquency of payment of taxes or fees — Suspension of permit or license — Collection.
  1. (a) In the event a permittee or licensee becomes delinquent in the payment of any taxes or fees, or fails to file any report required by § 67-3-1206 by the due date, the commissioner may suspend the permit or license held by the permittee or licensee.
  2. (b) Should any of the delinquencies referenced in subsection (a) continue for a period of thirty (30) days, the commissioner may revoke the permit or license held by the permittee or licensee.
  3. (c) Any permittee or licensee whose permit or license has been suspended or revoked under subsection (a) or (b) may, upon payment of the required taxes or fees, plus any penalty and interest, and filing the required reports, petition the commissioner for reinstatement of the permit or license that has been suspended or revoked. Upon receipt of a reinstatement fee of one hundred dollars ($100), the commissioner shall reinstate the permit or license.
  4. (d) The commissioner may require the reinstatement fee of one hundred dollars ($100) for any permit or license to be made in cash or by money order, certified check or cashier's check in any case where any two (2) checks issued by the permittee or licensee within one (1) calendar year have been dishonored.
History (4)
  • Acts 1997, ch. 316, § 1
  • 2001, ch. 166, § 4
  • T.C.A., § 67-3-2310
  • Acts 2007, ch. 484, § 109.
Part 13 Special Provisions Applicable to Limited Users and Prepaid Users
§ 67-3-1301. Purpose of this part.
  1. The purpose of this part is to adopt special provisions applicable to limited users and prepaid users of diesel fuel. Anything to the contrary notwithstanding, limited users and prepaid users of diesel fuel are subject to all other provisions of this chapter to the extent otherwise applicable, except as provided by this part.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2401.
§ 67-3-1302. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Authorization” means an uncancelled diesel tax prepaid user authorization issued by the commissioner;
    2. (2) “J Class” refers to combined farm and limited private trucks, as defined by the department;
    3. (3) “Limited user” means a person who consumes diesel fuel within this state for both licensed motor vehicles and other purposes, and who is the qualified holder of an uncancelled limited user permit issued by the commissioner; and
    4. (4) “Prepaid user” means a person who is the qualified holder of an uncancelled diesel tax prepaid user authorization issued by the commissioner.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2402.
§ 67-3-1303. Limited user permits — Generally.
  1. (a) Except as otherwise provided in this chapter, no purchases of undyed diesel fuel are permitted tax-free and all purchasers of diesel fuel will be required to purchase either undyed, tax-paid diesel fuel, or dyed, tax-free diesel fuel.
  2. (b) An uncancelled limited user permit entitles the permittee to purchase from a licensed wholesaler or supplier undyed diesel fuel tax-free at the time of purchase, subject to the permitee's obligation to report and pay tax as provided in § 67-3-1304.
  3. (c) All uncancelled permits under the prior law that are held by limited users on December 31, 1997, where the permittee made taxable use of no more than three thousand six hundred gallons (3,600 gals.) of diesel fuel during the calendar year 1997, shall remain effective on January 1, 1998, and until otherwise revoked, cancelled or terminated as further provided by this section.
  4. (d) All other permits held by limited users under the prior law are revoked effective January 1, 1998.
  5. (e) A holder of a permit, that has been made effective on January 1, 1998, pursuant to subsection (c), may continue to purchase undyed diesel fuel free of tax during each successive calendar year and until such holder's purchases of undyed taxable diesel fuel exceeds three thousand six hundred gallons (3,600 gals.) during a particular year.
  6. (f) A holder whose purchases of undyed taxable diesel fuel exceed three thousand six hundred gallons (3,600 gals.) during a particular year shall notify the commissioner of such fact, and the commissioner shall revoke the permit.
  7. (g) Upon revocation of a holder's permit, the commissioner shall notify each of holder's suppliers of the revocation.
  8. (h) Purchasers of tax-paid undyed diesel fuel who have used such fuel in a tax-exempt manner may obtain refunds pursuant to part 4 of this chapter.
  9. (i) No new permits shall be issued by the commissioner on or after January 1, 1998.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2403.
§ 67-3-1304. Annual returns by limited user — Equipment reports.
  1. (a) For the purpose of determining the amount of tax imposed by part 2 of this chapter, each limited user shall file with the commissioner, on a form prescribed by the commissioner, an annual return which shall include the total number of gallons of dyed and the total number of gallons of undyed fuel used by the limited user within the state during the preceding calendar year. Annual returns and remittances thereon shall be filed not later than March 31 following the close of the preceding calendar year. Returns shall be executed under a declaration of penalty of perjury and shall be filed each year whether or not any dyed or undyed fuel was used in the preceding calendar year.
  2. (b) A limited user who uses undyed fuel in any diesel-powered highway vehicle shall report each piece of equipment in which it is consumed. Under no circumstances may a limited user use dyed diesel fuel in a diesel-powered highway vehicle. Odometer readings of equipment at both the beginning and the end of the month shall be furnished, together with other information as required by the commissioner. The limited user shall keep the odometers on all highway vehicles in good working order at all times. The limited user need not provide odometer readings if excused by the commissioner for good cause shown.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2404.
§ 67-3-1305. Cancellation of permit — Revocation of permit.
  1. (a) A limited user may cancel the permit by giving written notice to the department. The cancellation is effective as of the date of the notice.
  2. (b) The commissioner may suspend or revoke a permit for failure to comply with this chapter after at least ten (10) days' notice to the permittee and a hearing, should such be requested, pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2405.
§ 67-3-1306. Prepaid user authorization — Grandfather provisions.
  1. (a) All holders of uncancelled prepaid user authorizations valid under prior law on December 31, 1997, are entitled to renew their authorizations for 1998, and for each successive annual authorization period, upon payment of the applicable tax stated in § 67-3-1309, on or before January 1 of the renewal period. An uncancelled prepaid user authorization entitles the holder to purchase from a wholesaler undyed diesel fuel, tax-free at the time of purchase, subject to the holder's obligation to prepay tax pursuant to § 67-3-1309.
  2. (b) No new authorizations will be issued by the commissioner. Authorizations issued by the commissioner on or after January 1, 1998, shall only be renewals of previously effective authorizations as provided in subsection (a) and § 67-3-1307.
  3. (c)
    1. (1) The following class of persons is eligible to receive an uncancelled authorization from a holder of such authorization by gift or will: husband, wife, son, daughter, lineal ancestor, lineal descendant, brother, sister, stepchild, son-in-law or daughter-in-law of the holder. For purposes of this section, a person who is related to the holder as a result of legal adoption shall be considered to have the same relationship as a natural lineal ancestor, lineal descendant, brother, sister or stepchild.
    2. (2) The holder may effectuate the transfer of an uncancelled authorization such holder holds by the following methods:
      1. (A) By noting on holder's annual authorization renewal form, that a gift has been made, including the effective date of the gift, the donee's name, social security number, address, and the relationship of the donee to the holder; or
      2. (B) By provision in a probated will, stating the beneficiary's name, social security number, address, and the relationship of the beneficiary to the decedent.
    3. (3) When a transfer of an uncancelled authorization under subdivision (c)(2) becomes effective, the transferor's previous authorization shall be revoked. No refund will be issued as a result of such transfer.
  4. (d) Upon expiration of the time period specified in subsection (a) without a renewal of the prior year's authorization and prepayment of the applicable tax, the authorization will lapse and is not subject to renewal.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2406.
§ 67-3-1307. Prepaid user authorization — Renewals.
  1. The commissioner shall renew a prepaid user authorization when an application in proper form has been accepted for filing, and the other conditions and requirements of this part have been met. An authorization shall be valid from the date of its issuance through December 31 of the calendar year, or until cancelled as provided in this part. A prepaid user must make application for an authorization renewal each calendar year. The sale of a motor vehicle voids the authorization with respect to the vehicle.
Backlinks (1)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2407.
§ 67-3-1308. Prepaid user authorization — Cancellation and refund.
  1. A prepaid user may cancel the authorization by giving written notice to the department. The cancellation is effective as of the date of the notice. The department shall refund such portion of the prepaid tax attributable to the remaining portion of the calendar year.
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2408.
§ 67-3-1309. Diesel tax prepaid user authorization for certain farmers.
  1. (a) A farmer whose use of diesel fuel is predominately for agricultural purposes and non-highway use, and who owns or operates one (1) or more passenger cars or trucks in the weight class shown in this section, may apply for a diesel tax prepaid user authorization. Such authorization requires the holder to prepay an annual tax on the diesel fuel purchased from a wholesaler for the holder's own consumption. Prepayment of tax is at the rate prescribed for each motor vehicle based on the class of registered gross weight. The tax paid pursuant to a prepaid user authorization shall be paid on a calendar year basis. A farmer whose purchases of diesel fuel are predominately for non-agricultural purposes or highway use does not qualify for a diesel tax prepaid user authorization.
      2. MAXIMUM WEIGHT
      3. CLASS (LBS.) FEE
      5. Passenger Car    $56.00
      6. J Class 1 9,000 67.50
      7. J Class 2 16,000 67.50
      8. J Class 3 20,000 79.00
      9. J Class 4 26,000 84.00
      10. J Class 5 32,000 90.00
      11. J Class 6 38,000 95.50
      12. J Class 7 44,000 104.00
      13. J Class 8 56,000 135.00
      14. J Class 9 66,000 140.50
      15. J Class 10 74,000 149.00
      16. J Class 11 80,000 159.00
  2. (b) Whenever the holder of a diesel tax prepaid user authorization ceases to farm within this state, the authorization is void, and the prepaid user shall notify the commissioner in writing within fifteen (15) days after discontinuance. The commissioner shall refund such portion of the prepaid tax attributable to the remaining portion of the calendar year.
Backlinks (2)
History (2)
  • Acts 1997, ch. 316, § 1
  • T.C.A., § 67-3-2409.
Part 14 Transportation Fuel Equity Act
§ 67-3-1401. Short title.
  1. This part shall be known and may be cited as the “Transportation Fuel Equity Act.”
History (1)
  • Acts 2014, ch. 908, § 4.
§ 67-3-1402. Legislative intent.
  1. The use of diesel fuel by commercial carriers has significant and unique impacts on the state, and the nature of the transportation industry raises significant challenges in the administration and enforcement of fuel taxes; therefore, this general assembly enacts this part to tax persons engaging in the activity of using diesel fuels to transport passengers or goods for a fee.
History (1)
  • Acts 2014, ch. 908, § 5.
§ 67-3-1403. Part definitions.
  1. Unless specifically defined in this part, all terms used in this part have the same meaning as they have elsewhere in this chapter. As used in this part:
    1. (1) “Commercial carrier” means any individual, person, entity, or organization that contracts to transport passengers or goods for a fee;
    2. (2) “Diesel tax” means the tax imposed by § 67-3-202;
    3. (3) “Dyed diesel” means any diesel fuel that is indelibly dyed in accordance with internal revenue service regulations; and
    4. (4) “Means of transportation” means any vehicle or other device employed by a commercial carrier for the purpose of transporting passengers or goods for a fee, including, but not limited to, motor vehicles, trains, and aircraft; provided, that “means of transportation” does not include any marine vessels, boats, barges, or other craft operated on waterways.
History (1)
  • Acts 2014, ch. 908, § 6.
§ 67-3-1404. All diesel fuel subject to diesel tax.
  1. All diesel fuel, whether undyed or dyed, that is used in this state by a commercial carrier to produce power for a means of transportation is subject to the diesel tax. This section prevails over any other provision of this chapter.
History (1)
  • Acts 2014, ch. 908, § 7.
§ 67-3-1405. Reporting of dyed diesel usage — Due date for tax payment.
  1. (a) Each commercial carrier who uses dyed diesel to produce power for a means of transportation within this state shall be subject to the tax imposed by § 67-3-202 on all such fuel so used within this state and shall register with the department and file reports on forms prescribed by the department showing the total number of gallons of dyed diesel used within this state and any other information as may be reasonably required by the commissioner. Each report shall be filed on the twentieth day of the month following the close of each calendar quarter and shall include all activities occurring during such quarter.
  2. (b) The full amount of the diesel tax imposed by this state on dyed diesel shall be paid at the same time that the commercial carrier transmits the report and no later than the quarterly due date set forth in subsection (a).
History (1)
  • Acts 2014, ch. 908, § 8.
§ 67-3-1406. Determination of diesel tax payable on dyed diesel — Credit for sales tax paid to another state.
  1. (a) The amount of diesel tax payable to this state on dyed diesel pursuant to this part is determined by multiplying the rate of the diesel tax by the number of gallons of dyed diesel used in this state by the commercial carrier to produce power for a means of transportation.
  2. (b) There shall be allowed a credit against the amount determined under subsection (a) equal to the amount, if any, of sales tax properly paid to another state upon the dyed diesel used in this state by the commercial carrier to produce power for a means of transportation.
History (1)
  • Acts 2014, ch. 908, § 9.
§ 67-3-1407. Moneys collected to be deposited in the transportation equity trust fund.
  1. All moneys collected pursuant to this part shall be deposited by the commissioner in the separate account known as the transportation equity trust fund created by § 9-4-207(a) and shall be used in the manner prescribed by § 9-4-207(b). This section prevails over any other provision of this chapter.
History (1)
  • Acts 2014, ch. 908, § 10.
Chapter 4 Privilege and Excise Taxes
Part 1 Collection and Licenses Generally
§ 67-4-101. Privileges taxable — License required.
  1. The occupations, businesses and business transactions deemed privileges are to be taxed, and not pursued without license, and shall be such as are declared by this code or by legislative acts that are not to be deemed repealed by the enactment of this code.
History (4)
  • Code 1858, § 550
  • Shan., § 692
  • mod. Code 1932, § 1124
  • T.C.A. (orig. ed.), § 67-5301.
§ 67-4-102. Exemptions from privilege taxes.
  1. (a) Such citizens of this state as are in indigent circumstances, and destitute of visible means of support, unable to procure a livelihood by manual labor, or disabled from labor by bodily injury of any description, may sell taxable articles without paying a tax.
  2. (b) The county legislative body, a majority of the members being present, may, in its discretion, grant to any such person the privilege of hawking or peddling in the county without paying the tax, if the members are of the opinion the applicant ought to have the privilege.
  3. (c) Before the license is issued to such applicant, the applicant shall take an oath, before the county clerk, that the applicant is a citizen of the state, and, if of foreign birth, produce to the county legislative body a copy of the record showing that the applicant has been naturalized, and further swear that the applicant will not, directly or indirectly, vend the goods of any other person, and that the articles to be sold by the applicant shall be exclusively the applicant's own.
  4. (d) All persons living within the state, who are totally blind and who are exempted from paying county privilege and license taxes by the county legislative bodies of the counties in which such persons reside and do business, shall be relieved from all license and privilege taxes due the state for such businesses as such persons shall be engaged in for and during the time for which such persons shall have been relieved of such taxes by the county legislative bodies.
  5. (e)
    1. (1) The state, county and district business agents of all agricultural associations organized and incorporated in the state for the advancement and upbuilding of agricultural industry, who are employed by such associations to dispose of the farm products of this state and to buy agricultural implements and other supplies for farmers, without profit, such agents each charging only a sufficient amount on sales and purchase to pay the salary and necessary expenses of their respective agencies, shall not be liable for any license or privilege tax to the state, or any county or municipality of the state, but the same are exempt from such taxation.
    2. (2) Subdivision (e)(1) shall not be construed to exempt from taxation any union cooperative stores, or any persons who sell or buy with the view or purpose of making a profit, or any agents of agricultural associations who buy or sell for a percent beyond the actual expense of agents' salaries and other incidental expenses necessary to conduct the business of the state, county, and district business agencies appointed by these agricultural associations to dispose of their produce and buy their supplies.
Backlinks (1)
History (8)
  • Code 1858, §§ 547-549 (deriv. Acts 1837-1838, ch. 25, § 1
  • 1853-1854, ch. 75, §§ 1, 2)
  • Acts 1889, ch. 182, §§ 1, 2
  • 1901, ch. 87, § 1
  • Shan., §§ 696-698, 701a2, 702, 703
  • mod. Code 1932, §§ 1250-1252, 1254-1256
  • impl. am. Acts 1978, ch. 934, §§ 7, 22, 36
  • T.C.A. (orig. ed.), §§ 67-5201 — 67-5203, 67-5205, 67-5207, 67-5208.
§ 67-4-103. Collection of privilege taxes by county clerk.
  1. The county clerks shall collect all taxes on merchants, persons, companies, firms, corporations, agents, or traders, and all privileges, unless otherwise provided; and shall be subject to all the fines and penalties for failure to pay such taxes over to the commissioner of revenue, county trustee and municipal authorities that are provided for in this code in cases of county trustees.
History (8)
  • Acts 1883, ch. 29, § 1
  • 1907, ch. 602, §§ 29, 47
  • Shan., § 869
  • mod. Code 1932, § 1549
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), § 67-1107.
§ 67-4-104. Issuance of license.
  1. (a) Licenses for exercising all privileges for which license provisions are not otherwise made shall be issued on the applicant's paying to the clerk or other proper officer the specific tax laid on the license and the fees.
  2. (b) Except as otherwise specifically provided, it is lawful for county clerks to issue licenses by the quarter for the exercise of any privilege.
Backlinks (1)
History (7)
  • Code 1858, § 702 (deriv. Acts 1847-1848, ch. 161, § 20)
  • Acts 1883, ch. 29, § 1
  • Shan., §§ 1001, 1003
  • mod. Code 1932, §§ 1729, 1731
  • modified
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), §§ 67-5302, 67-5303.
§ 67-4-105. Application for license.
  1. (a) Every person, partnership or corporation engaged in any mercantile or other business requiring a license to engage in business shall, in order to obtain such license, make application for license in writing to the county clerk, the application to be signed by each and every member of any copartnership or association; and, when such application is made by an individual doing business under a trade name, the applicant shall sign the applicant's name to the application as the owner of such business, such application to be retained by the clerk in a book kept for that purpose, which shall be open to inspection to all parties desiring to inspect it.
  2. (b) No license shall be issued by the clerk to any person, copartnership or corporation to engage in the mercantile or other business until application has been made for the license, as provided in this section and § 67-4-104.
History (5)
  • Acts 1919, ch. 74, §§ 1, 2
  • Shan. Supp., §§ 1006a1, 1006a2
  • Code 1932, §§ 1732, 1733
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), §§ 67-5304, 67-5305.
§ 67-4-106. Partnership license.
  1. (a) If any two (2) or more persons shall associate in any partnership or company, except incorporated companies, to engage in any mercantile or other business requiring a license, it shall be necessary, in order to obtain such license, to have the names of each and every member of the partnership or company written on the face of such license, a copy of which shall be retained by the clerk, in a book kept for that purpose, which shall be open to all persons desiring to inspect it.
  2. (b) Any company or copartnership, except incorporated companies, that is engaged in any mercantile or other such business, shall, in order to have such license renewed, have the names of each and every member of such company or copartnership written on the face of such renewed license, a copy of which shall be retained by the clerk for inspection, as provided in subsection (a).
History (4)
  • Acts 1879, ch. 132, §§ 1-3
  • Shan., §§ 975, 976
  • Code 1932, §§ 1692, 1693
  • T.C.A. (orig. ed.), §§ 67-5306, 67-5307.
§ 67-4-107. Transfer of license.
  1. (a) The right to sell goods or to exercise a privilege in any county for one (1) year, conferred upon the grantee of a license from the county clerk, may be used by the grantee in another county, or by a purchaser of the grantee's stock or trade of the grantee's business, or by a new firm formed by the death, withdrawal, or addition of a member of a licensed firm, in the following manner:
    1. (1) In case of a sale of the stock or business, the person making the sale shall immediately go before the county clerk, and make affidavit of the amount on which the person making the sale is then bound to pay taxes, and pay the tax, and surrender the original license; the purchaser of the stock or business, unless the purchaser is a person already licensed, shall at the same time make a statement, on oath, of the amount, if any, that has been added by the purchaser to the stock or business, and pay the amount due on the stock or business, and take out a license as an original applicant;
    2. (2) In case of removal to another county, the grantee of the license shall go before the clerk who issued the license, and make a statement, on oath, of the amount of taxes the grantee is then bound to pay, and pay the tax, and surrender the original license, and take from the clerk a certificate of the fact. Upon presenting such certificate to the clerk of the county to which the grantee has removed, and making affidavit before the clerk of the amount added to the stock or business, if any, and paying the taxes on the stock or business, a license shall be issued to the grantee as an original applicant; and
    3. (3) In case a member or members die, retire from or are added to a licensed firm, the surviving or remaining partners or new firm shall immediately appear before the county clerk, and surrender the original license, pay the revenue then accrued on the license, and take out a new license as an original applicant.
  2. (b) Whenever the ownership of a business on which a privilege tax is levied shall become changed by sale or otherwise, the purchaser of the business shall be required to notify the county clerk of the county in which such business is located of such transfer and receive a transfer of the privilege tax, if assignable, in the purchaser's name, for which the purchaser shall pay a fee of one dollar ($1.00) to the state and a fee of fifty cents (50¢) to the county clerk for making such transfer.
History (7)
  • Code 1858, § 703 (deriv. Acts 1847-1848, ch. 146, §§ 1-3)
  • Shan., § 1002
  • Code 1932, § 1730
  • Acts 1945, ch. 7, § 1
  • C. Supp. 1950, § 1125.1 (Williams, § 1248.142n)
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), §§ 67-5308, 67-5309.
§ 67-4-108. Reporting persons liable for tax.
  1. (a) It is the duty of the assessor to make a return to the county clerk of the name of each person engaged in any business liable in any way to pay a privilege tax, in each district or ward under the provisions of the law.
  2. (b) It is the duty of the county mayor and of the county clerk to examine the list of names so returned, and compare the list with the list of persons paying privileges, and report the result to the county legislative body at the July term following the assessment. The report shall be read in a full meeting of the county legislative body and entered upon the minutes of the county legislative body.
History (7)
  • Acts 1895, ch. 120, § 66
  • 1907, ch. 602, § 45
  • Shan., § 694
  • Code 1932, § 1125
  • impl. am. Acts 1978, ch. 934, §§ 7, 16, 22, 36
  • T.C.A. (orig. ed.), § 67-5310
  • Acts 2003, ch. 90, § 2.
§ 67-4-109. Action by county against business in violation.
  1. (a) If any person presumes to sell goods or to exercise any privilege without obtaining the license prescribed, the clerk shall issue to the sheriff, or to any constable, a distress warrant commanding the sheriff or constable to levy, in case of a privilege, a tax double the highest tax imposed upon such privilege, together with costs and charges, by distraining and selling so much of the delinquent's goods and chattels as shall be sufficient for the purpose; or suit for such double tax may be brought in the circuit or chancery court.
  2. (b) Certiorari and supersedeas against an invalid distress warrant lies in the circuit or chancery court.
  3. (c) The officer, to whose hands the warrant shall come, shall immediately execute the warrant on pain of such officer also being held liable, on motion by the clerk in the circuit court, for the double tax, costs and charges lost by the officer's delay.
  4. (d) The officer having seized the goods and chattels of the delinquent shall give ten (10) days' notice of the time and place of sale, which the officer shall make at the time specified, unless the owner at or before the time of sale produces the clerk's receipt for the tax, costs, and charges; in which case the officer shall redeliver the goods to the owner.
  5. (e) In all cases in which the penalty prescribed against breaches of the revenue laws in relation to licenses is recovered, double fees shall be allowed to the clerk or attorney prosecuting the case, but any fee allowed a district attorney general shall inure to the state.
History (6)
  • Code 1858, §§ 704-707 (deriv. Acts 1847-1848, ch. 161, §§ 23-25
  • 1849-1850, ch. 122)
  • Shan., §§ 1007-1010
  • mod. Code 1932, §§ 1734-1738
  • modified
  • T.C.A. (orig. ed.), §§ 67-5311 — 67-5315.
§ 67-4-110. Action by commissioner against business in violation.
  1. (a) The commissioner is authorized, and it is the commissioner's duty, to issue a distress warrant for the collection of the tax, interest and penalty due from each taxpayer who is delinquent in payment of privilege taxes, collectible by the commissioner. Distress warrants may be addressed and delivered to the sheriff of the county in which such delinquent taxpayer has an office or principal place of business, or to the sheriff of any county in which the commissioner has reason to believe property of such delinquent taxpayer may be found.
    Backlinks (1)
  2. (b) The sheriff into whose hands such warrant may come, or the sheriff's deputy, may execute the warrant by distraint and sale of personal property belonging to such delinquent taxpayer, and the proceedings in respect to the warrant shall be the same as are provided by law for proceedings under an execution at law from a court of record; and the executing officer shall be entitled to the same fees, commissions, and necessary expenses of removing and keeping property distrained as in case of an execution from a court of record.
  3. (c) If the officer cannot find personal property to satisfy the distress warrant, the officer may levy the warrant upon any real estate in the officer's county belonging to such delinquent taxpayer; and if levied on land, the distress warrant, together with the officer's return on the distress warrant, shall be returned to the circuit court of the county in which the land lies, and the land shall be condemned and sold under the orders of the circuit court in the same manner as in case of the levy on land of an execution issued by a general sessions court.
  4. (d) The remedy or procedure prescribed in subsections (a)-(c) is cumulative to any other remedies or procedures now prescribed with reference to any particular privilege tax or taxes. No other remedy prescribed by any particular taxing statute shall be held to be exclusive or to prevent the commissioner from proceeding with the collection of the privilege tax under subsections (a)-(c).
  5. (e) Distress warrants issued under subsection (a) for the collection of state taxes, interest or penalty due from a taxpayer may, in the discretion of the commissioner, be addressed to and delivered to an employee or representative of the department for purposes of execution, who shall first make the same amount and kind of bond now required of deputy sheriffs, and such employee or representative shall have the same powers and authority as a sheriff under chapter 1, part 12 of this title and subsections (b)-(d) for purposes of levying and executing such distress warrants. Such employee or representative shall be entitled to the same fees and costs as would accrue to a sheriff for such services, which fees and costs shall be paid to the department and deposited in the general fund of the state treasury.
Backlinks (2)
History (6)
  • Acts 1937, ch. 200, §§ 1-4
  • C. Supp. 1950, §§ 1613.2-1613.5 (Williams, §§ 1613.7-1613.10)
  • Acts 1955, ch. 317, § 1
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1979, ch. 68, § 3
  • T.C.A. (orig. ed.), §§ 67-5316 — 67-5319, 67-5321.
§ 67-4-111. Collection from itinerant business.
  1. It is the duty of every constable of a district to demand to see the receipt for state and county privilege taxes of every manager of a circus, menagerie, sideshow, sleight of hand or legerdemain, or any other exhibition for profit, of persons selling patent rights, and of every peddler of any article whatever, whether on foot, in vehicle, or on horseback; and, if the tax receipt is not produced, the constable shall collect the state and county privilege taxes, and shall, within one (1) week after such collection, notify the county clerk, by mail or otherwise, that the constable has collected the tax, and so much tax, and pay the tax to the clerk within one (1) month after such collection. If the constable fails to turn the tax over to the county clerk, the constable shall be proceeded against and the constable's office declared vacant.
History (5)
  • Acts 1879, ch. 162, § 6
  • Shan., § 659
  • Code 1932, § 1058
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), § 67-5320.
§ 67-4-112. Actions on license bonds.
  1. (a) The county clerks are required to turn over to the county attorney, or, if no county attorney, then to an attorney to be selected by the county mayor or a county auditor, all privilege and license bonds due and unpaid within thirty (30) days after such bonds become due and payable, taking duplicate receipts for the bonds, specifying the amount due on the bonds, as nearly as can be ascertained, one (1) of which receipts shall be forwarded to the commissioner and the other entered on record in the county legislative body.
  2. (b) Whereupon, the attorney or clerk or county auditor shall forthwith give five (5) days' notice to the principal and surety on such bonds to appear before the general sessions judge of the county in which such bond is due and show cause, if they have any, why judgment should not be rendered against them for the amount of revenue due on such bonds, which judgment shall in no case be less than the amount of the ad valorem and privilege taxes fixed by law and by the county legislative body, with six percent (6%) interest and a penalty of one percent (1%) for each day such revenue is delinquent after thirty (30) days from the date of such notice, and an attorney's fee of five dollars ($5.00) on each bond.
  3. (c) Jurisdiction is conferred on the courts of general sessions to try and determine such cases, to render judgment, issue execution, and do all things necessary to enforce the collection of this revenue, and the notice so given may be returnable to any Monday of the court of general sessions before the judge of the general sessions court; provided, that five (5) days' notice is given.
  4. (d) Upon failure of the principal or surety to appear, the attorney, county auditor or clerk shall move for judgment, and the judge shall render and have entered a judgment for the amount of the taxes, interest, penalties, as provided in subsection (b), with costs.
  5. (e) The clerk shall be allowed the fees for such services as in the circuit courts. The state, county, and municipality shall in no event pay any cost in these proceedings, but the costs shall be taxed against delinquents.
  6. (f) Such suits shall not interfere with the right of the clerk at any time to issue a distress warrant to collect such taxes, if in the clerk's judgment property can be found on which to levy the warrant.
History (9)
  • Acts 1907, ch. 602, § 28
  • Shan., §§ 982-986a1
  • impl. am. Acts 1923, ch. 109, § 8
  • mod. Code 1932, §§ 1706-1711
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, §§ 7, 16, 22, 36
  • T.C.A. (orig. ed.), §§ 67-5401 — 67-5406
  • Acts 2003, ch. 90, § 2.
§ 67-4-113. Rules and regulations — Military personnel.
  1. The commissioner is authorized to promulgate rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement §§ 67-2-112(b), 67-4-1703(c) and 67-5-2011. The commissioner shall make reasonable effort to provide notice detailing which taxes are delayed, the time limitations proposed by §§ 67-2-112(b), 67-4-1703(c) and 67-5-2011 for paying such taxes, and the type of proof that must be presented prior to the due date of the applicable tax. Notice may be made, in addition to other methods, through releases issued by the department to the media or to branches of the armed services in which such taxpayers may serve.
History (4)
  • Acts 1991, ch. 397, § 6
  • 2001, ch. 167, § 2
  • 2002, ch. 664, § 2
  • 2003, ch. 87, § 4.
§ 67-4-114. Credit for beer or ale rendered unsalable as a result of flooding.
  1. Notwithstanding any rule or law to the contrary, no tax shall be due under § 57-5-201 for any beer or ale that has been rendered unsalable and subsequently destroyed as a result of flooding occurring between May 1, 2010, and May 8, 2010. Any tax previously paid under § 57-5-201 by the wholesaler on any such beer or ale that is unsalable and destroyed as a result of such flooding occurring between May 1, 2010, and May 8, 2010, shall be allowed as a credit against the tax levied by § 57-5-201 on the subsequent purchase of beer or ale by such wholesaler. However, this section shall not apply unless such flooding resulted in the destruction of at least fifty (50) barrels, or liquid volume equivalent, of beer or ale and satisfactory proof of such destruction is submitted to the department.
History (1)
  • Acts 2010, ch. 1134, § 61.
Part 2 General Revenue Law — General Provisions
§ 67-4-201. Definitions — Applicability.
  1. (a) The definitions and general provisions in this part apply in all cases, unless otherwise provided in special cases, but the general provisions shall not be deemed to control specific provisions to the contrary in any particular taxing item.
  2. (b) As used in parts 2-6 of this chapter:
    1. (1) “Annual tax,” when referring to a privilege tax, means a privilege tax obtained for or renewed for a period of not more nor less than one (1) year;
    2. (2) “Collector” means every tax officer or employee of the state, county, or city authorized to collect the tax;
    3. (3) “Per annum” designates the amount of the tax to be paid for exercising the privilege for twelve (12) months, and is to be read into every taxing item where the specific context does not indicate the contrary;
    4. (4) “Person” includes every individual, partnership, firm, corporation or any other association of any kind; and
    5. (5) “Taxpayer” includes every individual, partnership, firm, corporation or any other association of any kind.
History (4)
  • Acts 1937, ch. 108, art. 1, § 1
  • C. Supp. 1950, § 1248.1
  • T.C.A. (orig. ed.), § 67-4001
  • Acts 1984, ch. 832, § 36.
§ 67-4-202. Engaging in business without compliance a public nuisance.
  1. The engaging in any business declared in parts 2-6 of this chapter to be a taxable privilege without compliance with such parts is declared to be a public nuisance.
History (3)
  • Acts 1937, ch. 108, art. 3, § 9
  • C. Supp. 1950, § 1248.12 (Williams, § 1248.142c)
  • T.C.A. (orig. ed.), § 67-4329.
§ 67-4-203. Administration by commissioner.
  1. (a)
    1. (1) The authority to administer parts 2-6 of this chapter and the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and the authority to collect the taxes thereby imposed, is vested in the commissioner of revenue under this part.
    2. (2) Any reference in this part to the commissioner shall be deemed a reference to the commissioner of revenue.
  2. (b) The commissioner is authorized to prescribe all rules necessary for the administration of parts 2-6 of this chapter, and for the administration of the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and for the collection of the taxes thereby imposed.
History (5)
  • Acts 1937, ch. 108, art. 3, § 1
  • C. Supp. 1950, § 1248.4 (Williams, § 1248.137)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 839, §§ 10, 11
  • T.C.A. (orig. ed.), §§ 67-4301, 67-4302.
§ 67-4-204. Tax additional to other privilege taxes.
  1. Any tax imposed by parts 2-6 of this chapter shall not be held to supersede any other privilege tax imposed upon such taxpayer or occupation by any other section of the code.
History (3)
  • Acts 1937, ch. 108, art. 1, § 1
  • C. Supp. 1950, § 1248.1 (Williams, § 1248.7)
  • T.C.A. (orig. ed.), § 67-4008.
§ 67-4-206. Payment — Penalty and interest.
  1. (a) Each taxpayer shall pay promptly, when due, the taxes imposed by parts 2-6 of this chapter and, in addition, any tax imposed by any law of this state on the privilege of litigation in the courts of this state.
  2. (b) Except as otherwise provided in this section, if the tax is not paid within thirty (30) days of its due date, it shall be considered delinquent.
  3. (c) If the privilege tax on litigation is not paid within forty-five (45) days of its due date, it shall be considered delinquent.
  4. (d) The commissioner may waive, under § 67-1-803, any penalties imposed with regard to the taxes provided by this section, but no other collector may waive or excuse these penalties.
Backlinks (2)
History (10)
  • Acts 1937, ch. 108, art. 1, § 1
  • 1937, ch. 108, art. 3, § 19
  • mod. C. Supp. 1950, §§ 1248.1, 1248.20 (Williams, §§ 1248.2, 1248.142m)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 839, § 12
  • 1979, ch. 300, § 1
  • 1981, ch. 488, § 2
  • T.C.A. (orig. ed.), §§ 67-4009, 67-4303
  • Acts 1984, ch. 832, § 36
  • 1988, ch. 526, § 28.
§ 67-4-208. Liability of transferees and fiduciaries.
  1. (a) Any successor by purchase, or otherwise, of any business subject to tax shall be liable for and shall pay the tax imposed against such business before such successor can obtain a license to do any of the acts declared to be taxable by statute.
  2. (b) Any person acting as agent, trustee, guardian, administrator, executor, assignee or receiver doing any of the acts declared to be a privilege is subject to the tax imposed on that privilege.
History (4)
  • Acts 1937, ch. 108, art. 3, § 3
  • 1941, ch. 51, § 23
  • C. Supp. 1950, § 1248.6 (Williams, § 1248.139)
  • T.C.A. (orig. ed.), § 67-4012.
§ 67-4-209. Tax collection by clerks.
  1. (a) Unless some other collector is indicated, the county clerk shall collect the taxes imposed by parts 2-6 of this chapter.
  2. (b) The clerks of the several courts of this state shall collect any tax imposed in the court for which they serve as clerk by any law of this state upon the privilege of litigation in that court.
  3. (c) A collector of the taxes, as defined by this part, shall report the collector's collections to the commissioner and shall pay over all state taxes collected by the collector to the department.
History (6)
  • Acts 1937, ch. 108, art. 1, § 1
  • C. Supp. 1950, § 1248.1 (Williams, § 1248.3)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 839, § 7
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), § 67-4010.
§ 67-4-210. Duty to collect taxes.
  1. (a) The various collectors, as defined by this part, charged with the duty of collecting revenue or taxes under any law of this state shall diligently see to it that the revenues are collected. It is the duty of each local collector to ascertain the name of every person within the collector's jurisdiction liable for the payment of any tax that is collectible by the collector, and it is the collector's further duty to use every means at the collector's command to collect the tax when due.
  2. (b) Any local collector failing or refusing to collect and pay over any taxes that the collector is legally charged to collect and pay over to the department shall be liable for such taxes, and the collector's official bondsman shall be liable also for those unpaid taxes. The commissioner may collect the amount from the local collector or the collector's official bondsman under chapter 1, part 14 of this title.
  3. (c) It is the duty of each collector promptly to collect all privilege and ad valorem taxes collectible by the collector when they become due. In no case shall any collector or collector's deputy agree to give, permit or allow any extension of time for the payment of such taxes or any part of those taxes.
History (6)
  • Acts 1937, ch. 108, art. 3, §§ 6, 10
  • C. Supp. 1950, §§ 1248.9, 1248.13 (Williams, §§ 1248.142, 1248.142d)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 839, § 14
  • 1981, ch. 488, § 16
  • T.C.A. (orig. ed.), §§ 67-4307, 67-4308.
§ 67-4-211. Failure of collector to enforce law — Penalty.
  1. (a) Any county clerk or other collecting officer who willfully or negligently fails to carry out parts 2-6 of this chapter or any law imposing a tax on the privilege of litigation in the various courts of this state by making an incorrect assessment, or failing in any way, either in person or by agent, to faithfully enforce such parts shall forfeit in each case the sum of two hundred fifty dollars ($250) to the state of Tennessee, and shall be subject to ouster proceedings.
  2. (b) On complaint of the commissioner, this section shall be enforced by the attorney general and reporter in any manner permitted by law.
History (6)
  • Acts 1937, ch. 108, art. 3, § 12
  • C. Supp. 1950, § 1248.15 (Williams, § 1248.142f)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 839, § 15
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), § 67-4309.
§ 67-4-212. Collection of taxes by commissioner.
  1. When a local collector fails to collect a state tax that should be collected by that collector and paid over to the department, the commissioner may collect the tax under chapter 1, part 14 of this title.
History (6)
  • Acts 1937, ch. 108, art. 3, § 5
  • C. Supp. 1950, § 1248.8 (Williams, § 1248.141)
  • impl. am. Acts 1959, ch. 9, §§ 3, 14
  • impl. am. Acts 1972, ch. 829, § 7
  • Acts 1978, ch. 839, § 19
  • T.C.A. (orig. ed.), § 67-4324.
§ 67-4-213. Records and reports.
  1. (a) It is the duty of every official, agent or deputy charged with collecting, reporting and paying over state and county taxes, or other special revenues and privilege licenses, including fees, fines, forfeitures, costs, interests, or penalties, as now or may be later prescribed by the laws of this state, to keep a complete record of such collections on books and forms prescribed by the commissioner. These officials, agents or deputies shall report such collections, if it is state revenue, to the proper state officials, and if it is county revenue, to the county mayor, on forms prescribed and approved as provided in this section or shall later be prescribed by the laws of this state.
  2. (b) Each local collector, except the clerks of the several courts of the state, shall make a report each month to the commissioner, giving the name of each delinquent taxpayer in the collector's jurisdiction and the amount of taxes due from the taxpayer and the collector's reason for not having collected it. The clerks of the several courts of the state shall make a report each month to the commissioner, giving the name of each taxpayer, delinquent in the payment of the privilege tax on litigation, against whom an execution or distress warrant for such taxes has been issued, and which execution or distress warrant has been returned nulla bona, and giving the amount of such tax still owing.
  3. (c) Every report of local collectors to the commissioner shall be on a form prescribed by the commissioner and shall contain the information deemed necessary by the commissioner.
  4. (d) The collector shall make these reports within fifteen (15) days after the last day of each calendar month to the commissioner, if it is for state revenue, and to the county mayor, if it is for county revenue, and shall pay the amount shown to be due at the time of making the report.
  5. (e) If such reports are not filed as received and payments not made as specified in this section, there shall be, in addition to the penalties provided in chapter 1, part 8 of this title, a forfeiture of all commissions on the delinquent amount.
History (9)
  • Acts 1937, ch. 108, art. 3, §§ 4, 10
  • C. Supp. 1950, §§ 1248.7, 1248.13 (Williams, §§ 1248.140, 1248.142d)
  • impl. am. Acts 1959, ch. 9, § 14
  • impl. am. Acts 1978, ch. 934, §§ 16, 36
  • Acts 1978, ch. 839, §§ 14, 17
  • 1981, ch. 488, § 16
  • T.C.A. (orig. ed.), §§ 67-4307, 67-4310 — 67-4313
  • Acts 1988, ch. 526, § 29
  • 2003, ch. 90, § 2.
§ 67-4-215. Distress warrants.
  1. (a) A local collector has the power to issue a distress warrant for taxes collectible by the local collector.
  2. (b) Prior to the issuance of a distress warrant, the local collector shall give not less than ten (10) days' written notice to the taxpayer by either:
    1. (1) Delivering such notice in person;
    2. (2) Leaving such notice at the dwelling place or usual place of business of the taxpayer; or
    3. (3) By mailing such notice to the taxpayer's last known address.
  3. (c)
    1. (1) The sheriff into whose hands such distress warrant may come, or the sheriff's deputy, may execute the distress warrant by distraint and sale of personal property belonging to such delinquent taxpayer, and the proceedings in respect to the distress warrant shall be the same as are provided by law for proceedings under execution at law from a court of record; and the executing officer shall be entitled to the same fees, commissions and the necessary expense of removing and keeping property distrained as in case of an execution from a court of record.
    2. (2) If the officer cannot find personal property to satisfy the distress warrant, the officer may levy the distress warrant upon any real estate in the officer's county belonging to such delinquent taxpayer. If levied on land, the distress warrant, together with the officer's return on the warrant, shall be returned to the circuit court of the county in which the land lies, and the land shall be condemned and sold under the orders of the circuit court, in the same manner as in case of a levy on land of an execution issued by a general sessions court. Suit or suits may be brought, if necessary.
  4. (d) If any sheriff willfully fails, refuses or neglects to execute any distress warrant directed to the sheriff within the time provided in this part, the official bond of such sheriff shall be liable for the tax, penalty, interest, and cost due by the taxpayer, and, on complaint of any proper officer, this penalty shall be enforced by the attorney general and reporter in any manner permitted by law.
  5. (e) A distress warrant issued by a municipal tax collector may be executed within the boundaries of a municipality by the chief of police or a police officer of the municipality who is granted the authority expressed in this section to serve distress warrants.
Backlinks (1)
History (7)
  • Acts 1937, ch. 108, art. 3, §§ 5, 13
  • C. Supp. 1950, §§ 1248.8, 1248.16 (Williams, §§ 1248.141, 1248.142g)
  • Acts 1978, ch. 839, § 20
  • impl. am. Acts 1979, ch. 68, § 3
  • T.C.A. (orig. ed.), §§ 67-4325 — 67-4327
  • Acts 1987, ch. 346, § 2
  • 2009, ch. 480, § 1.
§ 67-4-216. Injunctions.
  1. (a) In addition to the other remedies provided by this part for the collection of the taxes imposed, the commissioner is authorized to certify to the attorney general and reporter the failure of any person to make any report or to pay any tax required by parts 2-6 of this chapter. Thereupon, the attorney general and reporter shall forthwith file a bill in a court of proper jurisdiction to enjoin such person from continuing to exercise the privilege, which injunction shall remain in force so long as such person is in default.
  2. (b) Upon the payment of such delinquent privilege tax as may be due with interest and penalty, and upon compliance with parts 2-6 of this chapter, the attorney general and reporter shall be authorized to dismiss the bill upon the payment of costs by the defendant.
History (3)
  • Acts 1937, ch. 108, art. 3, § 9
  • C. Supp. 1950, § 1248.12 (Williams, § 1248.142c)
  • T.C.A. (orig. ed.), § 67-4329.
§ 67-4-217. Contracts by unlicensed persons.
  1. No contract previously made, or later made, by persons engaged in a business or occupation subject to a license or privilege tax, under parts 2-6 of this chapter or any other act, shall be invalid or unenforceable in the courts because of the failure of such persons to have paid such license tax at the time such contract was made or was performed; provided, that such persons shall, prior to the date of adjudication in the court of original jurisdiction, pay double the tax due at the time the contract was made and, in addition, the penalty prescribed by law.
Backlinks (1)
History (3)
  • Acts 1937, ch. 108, art. 3, § 14
  • C. Supp. 1950, § 1248.17 (Williams, § 1248.142h)
  • T.C.A. (orig. ed.), § 67-4015.
§ 67-4-218. Miscellaneous violations — Penalties.
  1. (a) It is unlawful for any person to exercise any of the privileges made taxable by parts 2-6 of this chapter before complying with this chapter. It is unlawful for anyone to exercise any of these privileges without first paying the tax or without complying with this chapter.
  2. (b) It is unlawful for any person to aid, abet, direct, cause or procure any of such person's officers, agents, or employees to violate any of parts 2-6 of this chapter.
  3. (c) It is unlawful for any person subject to parts 2-6 of this chapter to willfully fail, refuse, or neglect to make out, file or deliver any reports or blanks, as required by parts 2-6 of this chapter, or to answer any question propounded in the reports or blanks, or knowingly and willfully to give a false answer to any such question in which the fact inquired of is within the person's knowledge, or, upon proper demand, to exhibit to the collector or any person duly authorized by the collector any book, paper, account, record, or memorandum of such person, in such person's possession or under such person's control, or to willfully fail, refuse or neglect to furnish any other information in such person's possession or under such person's control that may be required by any collector, as defined in this part, or such collector's duly authorized agents and employees.
  4. (d) A violation of this section is a Class C misdemeanor.
  5. (e) Every day during which any person subject to parts 2-6 of this chapter, or any officer, agent, or employee thereof willfully fails, refuses or neglects to observe and comply with any order, direction, or mandate of the commissioner or to perform any duty enjoined by parts 2-6 of this chapter, constitutes a separate and distinct offense.
Backlinks (1)
History (10)
  • Acts 1937, ch. 108, art. 3, §§ 3, 8
  • 1941, ch. 51, §§ 23, 24
  • C. Supp. 1950, §§ 1248.6, 1248.11 (Williams, §§ 1248.139, 1248.142b)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1978, ch. 839, § 13
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • T.C.A. (orig. ed.), §§ 67-4012 — 67-4014, 67-4305, 67-4306
  • Acts 1984, ch. 832, § 36
  • 1989, ch. 591, § 113
  • T.C.A., § 67-4-220.
Part 3 General Revenue Law — Administration of Gross Receipts Taxes
§ 67-4-301. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commissioner” means the commissioner of revenue;
    2. (2) “Department” means the department of revenue;
    3. (3)
      1. (A) “Gross receipts,” for the purpose of taxes administered under this part, means total receipts before anything is deducted, but does not include receipts from incidental business, when such incidental business, if separately carried on, would not be subject to a tax measured by gross receipts under parts 2-6 of this chapter;
      2. (B) “Gross receipts” does not include state and local sales and other taxes collected from customers and remitted to the respective taxing authorities by utilities; and
    4. (4) “Incidental business” means a business carried on separately and not a part of the business made the subject of privilege taxation.
History (6)
  • Acts 1937, ch. 108, art. 3, § 2
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • Acts 1959, ch. 299, § 1
  • T.C.A. (orig. ed.), § 67-4316
  • Acts 1985, ch. 414, § 1
  • 1988, ch. 898, § 1.
§ 67-4-302. Reports.
  1. Every person exercising any privilege declared taxable by a section providing for administration under this part shall annually, on or before August 1, make and deliver to the commissioner, upon such forms and blanks as may be required by the commissioner, a statement, verified by the official or agent making such report and statement, containing the following information as of July 1 of the current calendar year:
    1. (1) The total gross receipts of the taxpayer for the taxpayer's most recently completed fiscal year from business inside and outside the state;
    2. (2) The total gross receipts of the taxpayer for the same period from such business inside the state; and
    3. (3) Such other and further information as may be deemed necessary by the commissioner for the assessment of the taxes administered under this part and as may be required by the forms and blanks prescribed by the commissioner.
History (6)
  • Acts 1937, ch. 108, art. 3, § 2
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 269, § 1
  • 1973, ch. 20, § 2
  • T.C.A. (orig. ed.), § 67-4315.
§ 67-4-304. Liability for ad valorem taxes retained.
  1. Businesses exercising any privilege declared taxable by a section providing for administration under this part shall be required to pay to the counties and municipalities in this state all ad valorem taxes of every kind and character, including merchants' ad valorem taxes now authorized or that may later be authorized by law, and nothing in this part shall be construed as a denial to the various counties and municipalities in this state to collect such ad valorem taxes, including merchants' ad valorem taxes, from such businesses.
History (6)
  • Acts 1937, ch. 108, art. 3, § 2
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 269, § 1
  • 1973, ch. 20, § 2
  • T.C.A. (orig. ed.), § 67-4315.
§ 67-4-305. Credits for franchise and excise taxes.
  1. Notwithstanding any other provisions of either part 4, 5 or 6 of this chapter, any person paying gross receipts privilege taxes under provisions of either part 4, 5 or 6 of this chapter, and who is entitled to credit against such taxes for franchise and excise taxes paid, shall be allowed such credit when final annual reports of both gross receipts taxes and franchise and excise taxes have been filed covering the corresponding tax base period; provided, that a taxpayer who has obtained an extension of time beyond August 1, within which to file the franchise and excise tax return for the taxpayer's most recently completed fiscal year ended prior to July 1, shall be allowed credit for all payments of franchise and excise taxes made for such corresponding tax base period.
History (6)
  • Acts 1937, ch. 108, art. 3, § 2
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 269, § 1
  • 1973, ch. 20, § 2
  • T.C.A. (orig. ed.), § 67-4315.
§ 67-4-306. Period covered by tax — Refund.
  1. (a) The taxes levied by sections providing for administration under this part are declared to be imposed for the privilege of engaging in business for the year beginning on July 1, even though such tax is made payable on the following August 1, and even though such tax is measured by gross receipts for the preceding fiscal or calendar year.
  2. (b) Whenever the operation of a business ceases during the privilege tax year, the business is entitled to a prorated refund of tax for the portion of such year during which it did not operate; provided, that the refund amount exceeds ten dollars ($10.00). This subsection (b) does not apply, however, to transfers of existing businesses.
History (4)
  • Acts 1937, ch. 192, § 14
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • T.C.A. (orig. ed.), § 67-4317
  • Acts 1988, ch. 833, § 1.
§ 67-4-308. Quarterly payments.
  1. (a)
    1. (1) Any person subject to the gross receipts tax imposed by parts 2-6 of this chapter has the option of paying tax on a quarterly installment basis by paying one-fourth (¼) of the tax that may be due on each of November 1, February 1 and May 1.
    2. (2) Any person so exercising this option shall be required to pay interest on any payment after August 1 under this part.
    3. (3) When any person fails to pay the appropriate installment of this tax when it shall become due, there shall be imposed against that person a penalty in the amount of five percent (5%) of the installment for each thirty (30) days or fraction thereof, that the installment remains unpaid subsequent to the due date, up to a maximum of twenty-five percent (25%).
  2. (b) Whenever the ownership of a business subject to the gross receipts tax, the owner of which business has elected to pay the tax in quarterly installments as provided in subsection (a), is transferred during the year in which such quarterly payments are being made, the transferee shall become liable for any quarterly installments or installment, together with penalties, if any have accrued, and interest that remains unpaid at the time of such transfer; provided, that the transferee shall not be liable for any further gross receipts taxes for the year in which the transfer is made. It is declared to be the legislative intent that only one (1) gross receipts tax be paid on account of the operation of a business during any one (1) year.
Backlinks (1)
History (7)
  • Acts 1937, ch. 108, art. 3, § 2
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • Acts 1951, ch. 265, § 1
  • 1953, ch. 185, § 1
  • 1980, ch. 885, § 14
  • T.C.A. (orig. ed.), §§ 67-4318, 67-4319
  • Acts 1988, ch. 526, § 9.
§ 67-4-309. Liability of person engaged in business less than one year.
  1. (a) Any person, except as provided elsewhere in this part, who shall have engaged in business for less than a full year on July 1, shall, for the ensuing year, pay as follows:
    1. (1) The measure of the tax shall be ascertained by multiplying such person's gross receipts by the ratio that the period during which the person has engaged in business bears to an entire year; and
    2. (2) Any person who first commences business on or after July 1, 1937, shall, at the conclusion of each month, report to the commissioner that person's gross receipts for such month and shall pay tax, measured by such monthly gross receipts, at the rate specified in the appropriate taxing section. This tax shall be paid not later than the tenth day of the following month. On August 1 following the date when such person entered business, the person shall pay the annual tax for the year commencing on the next prior July 1, computed according to subdivision (a)(1), but the person shall not later make monthly payments.
  2. (b) Whenever the ownership of a business subject to the gross receipts tax, the owner of which has paid the tax on an annual basis in accordance with this part on or before August 1 of any year, is transferred during the year after payment, the transferee shall not be liable for any further gross receipts taxes for the year in which the transfer is made. It is declared to be the legislative intent that only one (1) gross receipt tax be paid on account of the operation of a business during any one (1) year.
    Backlinks (1)
History (6)
  • Acts 1937, ch. 192, § 14
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1967, ch. 393, §§ 1, 2
  • 1973, ch. 20, § 3
  • T.C.A. (orig. ed.), § 67-4320.
§ 67-4-310. Transfer of vending machine business.
  1. (a) Notwithstanding § 67-4-309(b), the transferee of a vending machine business upon which the transferor has paid tax on an annual basis under § 67-4-506, desiring to continue to operate under the option as afforded by such section, shall, within thirty (30) days after the date of transfer, or the next following July 1, whichever is sooner, notify the department of its intent and also register the new business and each transferred vending machine with the department in the name of the transferee. In connection with the transfer, the transferee shall pay such costs and fees as provided in § 67-4-506, but no additional gross receipts tax shall be due for any remaining period for which the transferor has paid applicable gross receipts taxes. However, when any such transferee desiring to continue to exercise the option afforded in § 67-4-506 shall fail to notify the department and to register, as required, the transferee shall not be permitted to exercise such option prior to the next following July 1, until and unless there shall have been paid, in addition to the costs and fees provided in § 67-4-506, a specific penalty in the amount of one dollar ($1.00) for each transferred vending machine for each month, or any fractional part thereof, during which such failure continues following expiration of the thirty (30) days after the transfer. Furthermore, if the option to pay the tax under § 67-4-506 is not exercised as provided prior to the next July 1 following the transfer, then such transferee shall be required to pay the sales tax as provided by law for a period of not less than twelve (12) months.
  2. (b) The transferee of a vending machine business taxable under § 67-4-506, shall notify the department of the transfer and also register each transferred vending machine with the department under § 67-4-506 as set out in subsection (a), whether or not the transferor of such machines was operating under the option referred to in subsection (a). Such notification and registration shall be made within the period specified in subsection (a), and the operation of any transferred machine beyond such period without compliance with these requirements is unlawful and the transferee shall be subject to the imposition of penalties otherwise provided for in § 67-4-218.
History (7)
  • Acts 1937, ch. 192, § 14
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1967, ch. 393, §§ 1, 2
  • 1973, ch. 20, § 3
  • T.C.A. (orig. ed.), § 67-4320
  • Acts 2007, ch. 602, § 22.
§ 67-4-311. Obtaining evidence.
  1. The commissioner is authorized to examine any book, paper, record, or other data belonging to a person, including a local collector of a tax due the state under any law of this state, under chapter 1, part 14 of this title, in order to ascertain the liability of a person, including a local collector of a tax due the state, under any law of this state, for any taxes due the state.
History (4)
  • Acts 1937, ch. 108, art. 3, § 2
  • C. Supp. 1950, § 1248.5 (Williams, § 1248.138)
  • Acts 1978, ch. 839, § 18
  • T.C.A. (orig. ed.), § 67-4321.
Part 4 General Revenue Law — Privileges Taxable by State Only
§ 67-4-401. Generally.
  1. Engaging in the various businesses mentioned in this part is declared to be a privilege for state purposes and taxable by the state alone, and any person so engaged shall pay to the commissioner of revenue, unless otherwise provided, the tax stated in this part. No county or municipality may impose any tax upon the privileges mentioned in this part, except license fees upon motor vehicles that might be imposed in the absence of this part.
History (5)
  • Acts 1937, ch. 108, art. 2, § 2
  • C. Supp. 1950, § 1248.3 (Williams, § 1248.119)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1981, ch. 488, § 7
  • T.C.A. (orig. ed.), § 67-4101.
§ 67-4-402. Bottlers and manufacturers of soft drinks. [Contingent repeal date. See subdivision (b)(2).]
  1. (a) Definitions. As used in this section, unless the context otherwise requires:
    1. (1) “Bottled soft drinks” includes any and all nonalcoholic beverages, whether carbonated or not, such as soda water, cola drinks, orangeade, grapeade, gingerale and the like, and all bottled preparations commonly referred to as soft drinks of whatever kind or description that are closed and sealed in glass, paper, metal, plastic, or any type of container or bottle, whether manufactured with or without the use of syrup. Fluid milk with or without flavoring, natural undiluted fruit juice or vegetable juice, cider, and pure fruit juice concentrate to which no additive has been made, with only water being necessary to be added to restore the juice to its natural state, are exempted from this section; and
      Backlinks (1)
    2. (2) “Nonalcoholic beverages” means all beverages containing less than one-half of one percent (0.5%) alcohol by volume.
  2. (b)
    1. (1) Imposition of Tax. A person manufacturing or producing and selling within this state any bottled soft drinks and a person importing or causing to be imported bottled soft drinks into this state from outside the state and selling such imported bottled soft drinks within this state shall, for the privilege of engaging in such business, pay to the state for state purposes an amount equal to one and nine-tenths percent (1.9%) of the person's gross receipts derived from such business; provided, that the rate shall be reduced by four-tenths of one percent (0.4%) on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2028, whichever occurs first.
    2. (2) Notwithstanding this section or another law to the contrary, any revenue generated from the increase in tax rates from one and one-half percent (1.5%) to one and nine-tenths percent (1.9%) must be allocated to the highway fund for the purpose of funding programs for the prevention and collection of litter and trash and matters related to the programs, including special grants for programs described in § 54-1-407. No later than March 31 of each year, the department of transportation shall transmit to the governor, the speaker of the house of representatives and the speaker of the senate a report listing the programs receiving funds generated by this subsection (b), the amount of funds received by each program, and the purpose for which the funds were spent. This subdivision (b)(2) shall be repealed on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2028, whichever occurs first.
    3. (3) A person located outside this state who distributes bottled soft drinks in this state shall, for the privilege of engaging in such business, pay the tax on gross receipts derived from bottled soft drinks distributed by the person in this state in the same manner as does a person located in this state.
    4. (4) A person importing or causing to be imported bottled soft drinks into this state from outside the state and selling such imported soft drinks within this state is not required to pay the tax, if the person's out-of-state supplier of bottled soft drinks has paid the tax as stated in subdivision (b)(3).
    5. (5) The tax shall be administered and collected by the commissioner under chapter 1, part 14 of this title and parts 2 and 3 of this chapter.
  3. (c) Exemptions. A person who is subject to and pays this tax is not liable for the tax on gross receipts derived from the person's sales of bottled soft drinks outside this state.
  4. (d)
    1. (1) Any taxes paid pursuant to parts 20 and 21 of this chapter on the business taxed by this section shall be a credit against the tax imposed by this section.
    2. (2) The credit taken on any return shall not, however, exceed seventy-eight and ninety-five hundredths percent (78.95%) of the tax liability shown on any tax return.
    3. (3) No credit shall be taken on any return for taxes paid pursuant to parts 20 and 21 of this chapter, unless such taxes are paid for the corresponding tax base period on which the tax levied by this section is based; provided, that the credit allowed under this subsection (d) shall be for taxes only, and no credit shall be allowed for penalty and interest.
Backlinks (2)
History (28)
  • Acts 1937, ch. 108, art. 2, § 2, Item A
  • 1941, ch. 51, § 17
  • 1947, ch. 170, § 1
  • 1949, ch. 219, § 1
  • C. Supp. 1950, § 1248.3, Item B (Williams, § 1248.120)
  • Acts 1955, ch. 309, §§ 1, 2
  • 1957, ch. 227, §§ 1, 2
  • 1957, ch. 385, § 1
  • 1957, ch. 393, § 1
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 35, §§ 1, 2
  • 1972, ch. 476, § 1
  • 1973, ch. 20, § 1
  • 1978, ch. 510, §§ 1-3
  • 1981, ch. 307, §§ 3, 4
  • T.C.A. (orig. ed.), § 67-4102, Item B
  • Acts 1984, ch. 769, § 1
  • 1987, ch. 33, § 1
  • 1988, ch. 573, § 1
  • 1991, ch. 30, § 1
  • 1995, ch. 2, § 1
  • 1999, ch. 81, § 2
  • 1999, ch. 406, § 9
  • 2005, ch. 86, § 1
  • 2010, ch. 616, § 1
  • 2016, ch. 704, §§ 3, 4
  • 2021, ch. 158, §§ 3, 4
  • 2022, ch. 903, § 2.
§ 67-4-405. Gas, water and electric companies.
  1. (a)
    1. (1) Each person engaged in the business of furnishing or distributing gas, water, or electric current, whether to a dealer, consumer, municipality or other customer shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to three percent (3%) of the gross receipts derived from intrastate business in the state.
    2. (2) Persons engaged in the business of manufacturing gas or of distributing manufactured gas or natural gas shall, in lieu of subsection (a), pay an amount equal to one and one-half percent (1.5%) of the gross receipts derived from intrastate business in this state, which payment shall be subject to the same provisions, restrictions and credits otherwise provided in this section.
  2. (b) This tax does not apply to cities or other political subdivisions of the state owning and operating gas companies, water companies or power plants, nor does it apply to persons having not-for-profit status owning and operating water companies, nor does it apply to persons meeting the criteria of exempt wholesale generators or FERC certified wholesale power marketers under the Federal Power Act of 1992 (16 U.S.C. § 791a et seq.), nor does it apply to any governmental agency of the United States.
  3. (c) It is the intention of this section to levy a tax for the privilege of engaging in intrastate commerce carried on wholly within this state and not a part of interstate commerce.
  4. (d) There shall be credited upon the tax imposed by this section any taxes paid by the owner of such business on any gas, water or electric company businesses under the Excise Tax Law, compiled in part 20 of this chapter, and the Franchise Tax Law, compiled in part 21 of this chapter, during the calendar year in which the tax levied becomes due.
  5. (e) Each person engaged in the business of furnishing or distributing electric current or water shall be exempt from the tax imposed by this section upon gross receipts up to the amount of five thousand dollars ($5,000), but shall be liable to the state tax upon all gross receipts in excess of five thousand dollars ($5,000).
  6. (f) The taxes imposed in this section should be administered and collected in accordance with part 3 of this chapter.
History (10)
  • Acts 1937, ch. 108, art. 2, § 2, Item G
  • 1937, ch. 192, §§ 19, 20-A
  • 1939, ch. 21, § 31
  • 1941, ch. 51, § 19
  • 1943, ch. 112, § 1
  • C. Supp. 1950, § 1248.3, Item H (Williams, § 1248.126)
  • T.C.A. (orig. ed.), § 67-4102, Item H
  • Acts 1999, ch. 406, § 10
  • 1999, ch. 407, § 1
  • 2011, ch. 404, § 1.
§ 67-4-406. Miscellaneous public utilities.
  1. (a) Each public utility, other than those specifically enumerated and taxed under another section of this part, shall for the privilege of doing business pay to the state for state purposes an amount equal to three percent (3%) of the gross receipts in this state.
  2. (b)
    1. (1) There shall be credited upon the tax imposed any taxes paid under the Excise Tax Law, compiled in part 20 of this chapter, and the Franchise Tax Law, compiled in part 21 of this chapter, during the calendar year in which the tax levied becomes due.
    2. (2) In order for a person to qualify for the credits authorized by subdivision (b)(1), such person must be subject to the taxes imposed by parts 20 and 21 of this chapter.
  3. (c) This tax does not apply to persons meeting the criteria of exempt wholesale generators or FERC certified wholesale power marketers under the Federal Power Act of 1992 (16 U.S.C. § 791a et seq.).
  4. (d) The tax imposed shall be administered and collected in accordance with part 3 of this chapter.
History (5)
  • Acts 1937, ch. 108, art. 2, § 2, Item J
  • C. Supp. 1950, § 1248.3, Item N (Williams, § 1248.129)
  • T.C.A. (orig. ed.), § 67-4102, Item N
  • Acts 1999, ch. 406, § 11
  • 1999, ch. 407, § 2.
§ 67-4-409. Recordation tax.
  1. (a) Transfers of Realty.
    1. (1) On all transfers of realty, whether by deed, court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real estate, there shall be paid for the privilege of having the same recorded a tax, for state purposes only, of thirty-seven cents (37¢) per one hundred dollars ($100), as follows:
      1. (A) On the transfer of a freehold estate, the tax shall be based on the consideration for the transfer, or the value of the property, whichever is greater. “Value of the property,” as used in this section, means the amount that the property transferred would command at a fair and voluntary sale, and no other value;
      2. (B) No transfer tax shall be due or paid on the transfer of a leasehold estate;
      3. (C) No such tax shall be levied on the transfer of any real estate where such:
        1. (i) Is creation or dissolution of a tenancy by the entirety:
          1. (a) By the conveyance from one (1) spouse to the other;
          2. (b) By the conveyance from one (1) spouse or both spouses to the original grantor or grantors in the instrument and the original grantor's spouse; or
          3. (c) By the conveyance from one (1) spouse or both spouses to a trustee and immediate reconveyance by the trustee in the same instrument as tenants in common, tenants in common with right of survivorship, joint tenants or joint tenants with right of survivorship;
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        2. (ii) Are deeds of division in kind of realty formerly held by tenants in common;
        3. (iii) Is release of a life estate to the beneficiaries of the remainder interest;
        4. (iv) Are deeds executed by an executor to implement a testamentary devise;
        5. (v) Are domestic settlement decrees and/or domestic decrees and/or deeds that are an adjustment of property rights between divorcing parties;
        6. (vi) Are transfers by a transferor of real estate to a revocable living trust created by the same transferor or by a spouse of the transferor, or transfers by the trustee of a revocable living trust back to the same transferor or to the transferor’s spouse;
        7. (vii) Are deeds executed by the trustee of a revocable living trust to implement a testamentary devise by the trustor of the trust; or
        8. (viii) Are deeds executed by the trustee of a testamentary trust or revocable living trust to implement the distribution of the real property to a trust beneficiary or beneficiaries;
      4. (D) In the case of quitclaim deeds, the tax must be based only on the actual consideration given for that conveyance. A deed is treated as a quitclaim deed for taxation purposes under this section if the deed contains language substantially similar to the form for quitclaim deeds as provided for in § 66-5-103(2), and only conveys the grantor's interest, whatever that may be, to the grantee. A deed that contains language evidencing an intent to convey a deed in fee with general warranty substantially similar to the form provided for in § 66-5-103(1)(A) must be taxed as provided in subdivision (a)(1)(A);
      5. (E) No oath of value shall be required in any transaction that is exempt from tax;
      6. (F) This tax shall be paid by the grantee or transferee of the interest in real estate, as shown on the instrument evidencing the transfer of such interest; and it shall be collected by the register of the county in which the instrument is offered for recordation;
        1. (i) The grantee, the grantee's agent, or a trustee acting for the grantee shall be required to state under oath upon the face of the instrument offered for record in the presence of the register, or before an officer authorized to administer oaths, the actual consideration or value, whichever is greater, for the transfer of a freehold estate;
        2. (ii) The making under oath of any false statement known to be false respecting the consideration or value of property transferred shall be punishable as perjury;
        3. (iii) A person who obtains several deeds or other instruments of conveyance for the same transfer of one and the same tract or parcel of real estate shall pay only one (1) state tax with respect to such transfer;
        4. (iv) The register is forbidden to record the transfer until this tax has been paid; and
      7. (G) No tax is due under this subsection (a) until the title to the property is transferred by deed.
    2. (2) Nothing in this subsection (a) affects the validity of the underlying transfer or conveyance.
  2. (b)
    1. (1) Mortgages, Deeds of Trust and Other Instruments. Prior to the public recordation of any instrument evidencing an indebtedness, including, but not limited to, mortgages, deeds of trust, conditional sales contracts, financing statements contemplated by the Uniform Commercial Code, compiled in title 47, and liens on personalty, other than on motor vehicles, there shall be paid a tax, for state purposes only, of eleven and one-half cents (11.5¢) on each one hundred dollars ($100) of the indebtedness so evidenced.
    2. (2) The tax shall not be required for the recordation of judgment liens, contractors' liens, subcontractors' liens, furnishers' liens, laborers' liens, mechanics' and materialmen's liens, financing statements filed pursuant to the Uniform Commercial Code, compiled in title 47, that secure an interest solely in investment property, as defined in § 47-9-102(a), as amended by chapter 846, § 1 of the Public Acts of 2000, and mortgages or deeds of trust issued under the Home Equity Conversion Mortgage Act, as compiled in title 47, chapter 30, and that are labeled on the face under such chapter.
    3. (3) In any case where the consideration or stipulation of indebtedness does not appear on the face of the instrument being offered for record, the recording official shall require a separate statement, to be made under oath, indicating the amount of the indebtedness so secured.
    4. (4) This tax shall be paid to and collected by county registers, the secretary of state, and any other official who may receive any instrument other than for liens on motor vehicles in accordance with the motor vehicle title law of this state, for recordation in accordance with the laws of this state, and registration is forbidden until such tax has been paid.
    5. (5) The incidence of the tax provided by this section is declared to be upon the mortgagor, grantor or debtor, evidenced by the instrument offered for recordation. It shall not, however, apply with respect to the first two thousand dollars ($2,000) of the indebtedness.
    6. (6)
      1. (A) As used in this section, “indebtedness” means the principal debt or obligation which is reasonably contemplated by the parties to be included within the terms of the agreement. “Indebtedness” does not include any amount of interest, collection expense including, but not limited to, attorney's fees and expenses incurred in preserving, protecting, improving, or insuring property which serves as collateral for the indebtedness, or any other amount, other than the principal debt or obligation, for which a debtor becomes liable unless such amount is added to the principal debt or obligation, and is used to calculate additional interest pursuant to refinancing, reamortization, amendment or similar transaction or occurrence.
      2. (B) If the instrument is given to secure the performance by the mortgagor, grantor, debtor or any other person of an obligation other than the payment of a specific sum of money, and a maximum amount secured is not expressed in the instrument, such instrument shall be taxable upon the value of the property covered by the instrument, which value shall be deemed to be the indebtedness secured by such instrument for such purposes. Such instrument shall not be recorded, unless, at the time of presenting the instrument, there is filed a sworn statement by the owner of the property covered thereby of the value of the property. Such amount shall be the basis of assessing the tax imposed under this subsection (b). No subsequent change in the value of the property shall result in the imposition of additional tax.
      3. (C)
        1. (i) Every recorded instrument evidencing an indebtedness must contain, either on the face of the instrument or in an attached sworn statement, the following language: “Maximum principal indebtedness for Tennessee recording tax purposes is $.” The holder of the indebtedness shall state the amount of the indebtedness, and that amount shall be the basis of assessing the tax imposed by this subsection (b). Such statement may be relied upon only by the department of revenue and by the receiving official charged with the duty of recordation and collection of tax, and such statement shall not constitute notice of any kind to any other party of the amount of indebtedness secured by the instrument.
        2. (ii) Notwithstanding subdivision (b)(6)(C)(i), an instrument described in subdivision (b)(6)(B) shall instead contain, either on the face of the instrument or in an attached sworn statement, the following language: “Secures obligation other than payment of specific sum — valuation statement submitted herewith.”
        3. (iii) Notwithstanding any other law to the contrary, an official charged with the collection of the tax imposed by this subsection (b) shall not record any instrument evidencing an indebtedness, unless it contains the statement required by this subdivision (b)(6)(C) and tax is properly paid, based upon the amount contained in that statement or in the valuation statement, as appropriate.
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      4. (D) When the instrument being offered for registration, recording, or filing secures, or evidences the securing of, a line of credit or other indebtedness arising from more than one (1) advance or extension of credit, the amount of which will, or may, vary from time to time, the tax shall be computed and paid on the maximum amount of the indebtedness as stated in the instrument or the accompanying sworn statement, and the reduction or subsequent increasing of the amount of the indebtedness within such limits shall not result in additional tax.
    7. (7) Imposition of a transfer tax as levied under subsection (a) with respect to an instrument evidencing an indebtedness shall not operate to exonerate such instrument from the tax levied under this subsection (b), if such tax would otherwise be appropriate. Furthermore, an instrument evidencing transfer of any interest in real estate that is subject to the transfer tax shall, nevertheless, be subject to the tax levied under this subsection (b) also, when such instrument evidences an indebtedness either by showing in the instrument that a vendor's lien is retained, or by referring in the instrument to such a lien being evidenced by another instrument not being offered for public recordation.
    8. (8)
      1. (A)
        1. (i) If some of the property securing the payment of the indebtedness is located in Tennessee and some is located outside of Tennessee, as an optional method of computing the tax, the tax may be apportioned and paid on the basis of the ratio of the value of the Tennessee collateral to the value of all collateral, by applying the following mathematical formula:
          1. value of Tennessee collateral / value of total collateral = % x
        2. (ii) If the tax is apportioned pursuant to this subdivision (b)(8), no evidence of the calculation or statement of tax shall be required in addition to the statement required by subdivision (b)(6)(C), which shall be completed with the amount resulting from the calculation made pursuant to subdivision (b)(8)(A)(i).
      2. (B) For purposes of the apportionment calculation allowed in subdivision (b)(8)(A)(i):
        1. (i) “Collateral” means any real property or personal property securing the indebtedness evidenced by the instrument to be filed or recorded;
        2. (ii) “Mobile goods” means goods that are mobile and that are of a type normally used in more than one (1) jurisdiction, such as trailers, rolling stock, airplanes, shipping containers, road building and construction machinery, commercial harvesting machinery and the like;
        3. (iii) “Taxable Tennessee indebtedness” means the amount of indebtedness on which tax is to be calculated as provided in subdivision (b)(5), with the two-thousand-dollar exemption to be applied to the taxable Tennessee indebtedness;
        4. (iv) “Tennessee collateral” means all collateral in which a security interest, deed of trust, mortgage lien or other consensual lien is perfected by filing or recording one or more instruments in the state of Tennessee or by other methods where the laws of the state of Tennessee govern perfection; provided, however, that the Tennessee collateral of a debtor that is located in Tennessee, as determined pursuant to § 47-9-307, does not include such debtor's interests in:
          1. (a) Any personal property physically located outside the state of Tennessee, including goods, other than mobile goods, and any property that is of a type in which a security interest could be perfected by possession under Tennessee law if such property were located in Tennessee, such as certificated securities, chattel paper, documents, instruments and money; or
          2. (b) Any intangible property and mobile goods, unless such debtor's chief executive office is also located in the state of Tennessee. Any subsequent change in the location of the debtor or any collateral, in the facts supporting the categorization of any particular collateral, or in the relative quantities or values of collateral shall not in itself result in the imposition of additional tax;
        5. (v) “Total collateral” means all collateral, including the Tennessee collateral; and
        6. (vi) “Value” of collateral means the value that the collateral would command at a fair and voluntary sale.
    9. (9) In the event of an increase in the indebtedness beyond the amount stated subsequent to the filing or recordation of the instrument, the holder of the indebtedness shall pay the tax on the amount of the increase. Such a payment shall be due on the date the increase occurs, but may be made without penalty if made within sixty (60) days after the increase occurs. Thereafter, such payment may be made only upon payment of the penalty provided in subdivision (b)(13) based on the amount of the increase in the indebtedness.
    10. (10) Sections 67-4-206 and 67-4-217 shall not apply to the tax imposed by this subsection (b).
    11. (11)
      1. (A) Nonpayment or underpayment of tax on an indebtedness, or failure timely to pay tax on an increase in indebtedness, shall not affect or impair the effectiveness, validity, priority, or enforceability of the security interest or lien created or evidenced by the instrument, it being declared the legislative intent that the effectiveness, validity, priority, and enforceability of security interest and liens are governed solely by law applicable to security interests and liens, and not by this title.
      2. (B) Such nonpayment, underpayment, or failure to pay, until cured, shall result in the imposition of a tax lien, in the amount of any tax and penalties unpaid and owing under this subsection (b), in favor of the department of revenue as described in subdivision (b)(12), shall subject the holder of the indebtedness to a penalty as described in subdivision (b)(13), and shall subject the holder of the indebtedness to the disability described in subdivision (b)(14).
    12. (12) The tax lien described in subdivision (b)(11) shall arise at the time the tax is due and shall at that time attach to any property, either real or personal, tangible or intangible, subject to the instrument until:
      1. (A) The lien or security interest of the instrument is released with respect to any property; or
      2. (B) Any property is transferred in settlement or realization of the lien or security interest, whereupon the tax lien shall automatically be released from such property and attach to any proceeds thereof. The department may not levy upon or sell any property subject to the tax lien until notice of the tax lien has been recorded pursuant to § 67-1-1403, but notwithstanding such section, the department otherwise shall not be required to record any notice of the tax lien. The tax lien shall be superior to all liens and security interest under Tennessee law, except:
        1. (i) Those enumerated in § 67-1-1403(c)(2)-(4) that were recorded, filed or perfected, respectively, prior to attachment of the tax lien; and
        2. (ii) County and municipal ad valorem taxes.
    13. (13) It is the duty of every holder of an indebtedness, including an individual, business entity of any organizational structure, or governmental entity, to collect the tax imposed by this subsection (b) from the debtor and to remit the tax as required by this subsection (b). Except as provided in subdivision (b)(9), if the holder of the indebtedness fails to pay or underpays the tax imposed by this subsection (b), the holder of the indebtedness shall be liable for a penalty, in addition to the tax, in the amount of two hundred fifty dollars ($250) or double the unpaid tax due, whichever is greater.
    14. (14) The holder of an indebtedness evidenced or secured by an instrument upon the recording or filing of which tax is owing under this section may not maintain an action on such indebtedness, other than an action limited to the enforcement of the holder's security interest or lien, against the debtor until such nonpayment is cured. If such an action is commenced and a cure is not effected within a time limit set by the court, the debtor may obtain a dismissal of such action, without prejudice to refiling in the event of a subsequent cure of nonpayment. Notwithstanding the terms of the instrument, if a cure is not effected until after the filing of a motion or pleading in which the holder's noncompliance with this subsection (b) is raised, the holder may not thereafter charge the debtor with the costs of curing such noncompliance.
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  3. (c) Any oath required in subsections (a) and (b) shall not be introduced as evidence in any proceeding conducted in connection with any condemnation action for the purpose of indicating the value of such real property.
  4. (d) Reports and Payment of Tax to the Commissioner.
    1. (1) The county register and other officials charged with the collection of taxes imposed under this section shall report all collections to the department on forms prescribed by the commissioner, in the same manner and under the same conditions as county clerks collect and report revenue under parts 2-6 of this chapter.
    2. (2)
      1. (A) For collecting and reporting taxes levied under this section, county registers shall be entitled to retain as commission five percent (5%) of the taxes so collected.
      2. (B) Notwithstanding subdivision (d)(2)(A) or any other law to the contrary, fifty-two percent (52%) of the five percent (5%) commission provided by subdivision (d)(2)(A) shall be remitted to the state treasurer and credited to the general fund of the state.
    3. (3) The county registers shall also be entitled to receive as a fee for issuing each receipt for taxes imposed in this section the sum of one dollar ($1.00), to be paid when the tax receipt is issued. The fee, however, shall not be applicable nor collectible by any state officials charged with the collection of taxes imposed under this section.
  5. (e) Instruments made pursuant to mergers, consolidations, sales or transfers of substantially all of the assets in this state of corporations, pursuant to plans of reorganization, are exempt from this section.
  6. (f)
    1. (1) The recording and rerecording of all transfers of realty in which a municipality is the grantee or transferee and all instruments evidencing an indebtedness in which a municipality is the holder or owner of the indebtedness shall be exempt from this section. The recording and rerecording of all instruments evidencing an indebtedness of any health and educational facility corporation formed pursuant to title 48, chapter 101, part 3 shall also be exempt from this section.
    2. (2) For the purposes of this subsection (f), “municipality” means the state of Tennessee or any county or incorporated city or town, utility district, school district, power district, sanitary district, or other municipal, quasi-municipal, or governmental body or political subdivision in this state, and any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof now or later authorized to be created.
    3. (3) The recording or rerecording of any transfer of realty to or from any municipality and any evidence of indebtedness of or to any municipality, as defined in subsection (a), prior to May 11, 1971, and otherwise validly made, is declared to be valid and effective, notwithstanding any failure to pay the tax formerly imposed by this section, and any such recording or rerecording is ratified, approved and confirmed, and no tax shall be imposed or collected on account of any such recording or rerecording.
  7. (g) Wetland Acquisition Fund.
    1. (1) Three and one-fourth cents (3.25¢) of the tax levied by subsection (a) shall be credited to a special agency account in the state general fund known as the 1986 wetland acquisition fund; provided, that such funds shall not be obligated or expended to acquire any interest in real property through condemnation or the power of eminent domain. Expenditures from such fund shall only be made to implement and effectuate the purposes of title 11, chapter 14, part 4. The fund may be expended to maintain and enhance state-owned property that is under the agency's jurisdiction. Funds deposited in such fund shall not revert at the end of any fiscal year, and all interest accruing on investments and deposits of the fund not otherwise expended shall be returned to and made a part of the fund.
    2. (2) Notwithstanding any provision of this section to the contrary, the commissioner of finance and administration, with the written approval of the executive director of the Tennessee wildlife resources agency, is authorized, subject to legislative appropriation, to transfer funds from the 1986 wetland acquisition fund to the Tennessee heritage conservation trust fund, created in title 11, chapter 7, part 1. For the purposes of § 11-7-103(h), “other available sources” also shall not include any funds transferred to the Tennessee heritage conservation trust fund from the 1986 wetland acquisition fund pursuant to this subdivision (g)(2).
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  8. (h) Exception for Certain Facilities.
    1. (1) With respect to any facility as defined in subdivision (h)(2)(A):
      1. (A) The taxes paid under subsection (a) shall not exceed one hundred thousand dollars ($100,000) in the aggregate; and
      2. (B) The taxes paid under subsection (b) shall not exceed five hundred thousand dollars ($500,000) in the aggregate.
    2. (2)
      1. (A) As used in this subsection (h), “facility” means any real or personal property that is constructed, acquired or developed for the principal purpose of manufacturing, processing, fabricating or assembling any manufactured products and includes, but is not limited to, all or any part of or any interest in any land and building, including office, administration or other buildings, any improvement to the facilities and all real and personal properties, including, but is not limited to, equipment and machinery deemed necessary in connection with the facility, whether or not now in existence.
      2. (B) As used in this subsection (h), “related indebtedness” means indebtedness relating to or incurred to finance a portion of or otherwise in connection with a facility, which shall be evidenced by instruments, including, but not limited to, mortgages, deeds of trust, conditional sales contracts, financing statements contemplated by the Uniform Commercial Code, compiled in title 47, and liens on personalty, notwithstanding the fact that portions of such indebtedness may be held by different holders, owners, trustees or other secured parties (holders) of indebtedness or portions of indebtedness relating to the facility.
    3. (3) In order to qualify for the exception provided under this subsection (h), prior to the public recordation of any instrument evidencing a transfer of an interest in realty or of any instrument evidencing a related indebtedness under this section, the grantee or transferee of the interest in such realty or the holder of related indebtedness must submit a sworn statement declaring the amount of tax paid for recording instruments by or on behalf of the person, corporation, or other entity that owns, leases or otherwise operates the facility, referred to in this subsection (h) as the taxpayer, under both subsection (a), with respect to the transfer of realty pertaining to the facility, and subsection (b), with respect to related indebtedness, and a copy of each receipt for the taxes paid for recording such instruments or other evidence of such payments. No tax will be due, if the taxes paid by or on behalf of the taxpayer for recording such instruments pursuant to subsections (a) and (b) relating to the facility and any related indebtedness equal an aggregate amount of one hundred thousand dollars ($100,000) or five hundred thousand dollars ($500,000), as the case may be. If less than the aggregate amount of one hundred thousand dollars ($100,000) or five hundred thousand dollars ($500,000), as the case may be, in taxes for recording instruments pursuant to subsections (a) and (b) relating to the facility and any related indebtedness has been paid by or on behalf of the taxpayer prior to the proposed recordation of any instrument evidencing a transfer of an interest in realty or related indebtedness, the grantee or transferee of an interest in such realty or the holder of related indebtedness must pay or cause to be paid the amount of tax due, calculated in accordance with this section, which amount shall be no more than the difference between one hundred thousand dollars ($100,000) or five hundred thousand dollars ($500,000), and the aggregate amount of such taxes paid by or on behalf of the taxpayer for recording instruments pertaining to the facility and any related indebtedness pursuant to subsections (a) and (b). In no event, however, shall the aggregate amount of taxes paid for recording instruments relating to transfers of an interest in realty under subsection (a) and related indebtedness under subsection (b) exceed one hundred thousand dollars ($100,000) or five hundred thousand dollars ($500,000) by or on behalf of the taxpayer.
  9. (i) Local Parks Land Acquisition Fund.
    1. (1) One and three-fourths cents (1.75¢) of the tax levied by subsection (a) shall be credited to a special agency account in the state general fund known as the local parks land acquisition fund. The moneys in this fund shall be used only for grants to county and municipal governments to implement and carry out the purposes set forth in subdivision (i)(3); provided, that the commissioner of environment and conservation may allocate not more than three and one-half percent (3.5%) of the moneys in this fund for the administration of the fund. Funds deposited in such fund shall not revert at the end of any fiscal year, and all interest accruing on investments and deposits of the fund not otherwise expended shall be returned to and made a part of the fund.
    2. (2)
      1. (A) The commissioner of environment and conservation, the commissioner of agriculture and the director of the wildlife resources agency shall jointly establish priorities for the appropriate allocation of funds, deposited in the local parks land acquisition fund. No project shall receive any such funds unless each such official has approved such expenditure. Such officials shall consider applications from county and municipal governments throughout the state.
      2. (B) At least sixty percent (60%) of the funds allocated annually shall go to municipal governments.
    3. (3) County and municipal governments may use the funds allocated under this section for the purchase of land for parks, natural areas, greenways, and for the purchase of land for recreation facilities. Such funds may also be used for trail development and capital projects in parks, natural areas, and greenways.
    4. (4)
      1. (A) Any county or municipal government that receives a grant under this section must match the grant with an equal amount of money for each project. The matching money provided by the local government may be used to purchase additional land or to develop facilities on the land that is purchased with the grant. Rather than providing matching money, the local government may provide as its match a tract of land not previously used for park or recreational purposes that will be dedicated entirely for park or recreational purposes after receipt of the grant and that is independently appraised as having the same, or greater, value as the amount of the state grant.
      2. (B) Rather than providing matching money, the local government may also provide as all or part of its match volunteer services, materials, and equipment that are donated to the local government by a third party at the time the state grant is made, that are used for trail construction or other development on the tract of land for which the state grant is sought, and that are valued in a manner specified by the department.
    5. (5) If an application from a county or municipal government has been submitted for a grant from the local parks land acquisition fund and the county or municipal government subsequently purchases the land or constructs the trail for which the grant was sought before the grant is acted upon, the grant may still be awarded as a reimbursement; provided, that the application was submitted by the local government no more than twelve (12) months prior to the award of the grant.
    6. (6) The commissioner of environment and conservation, the commissioner of agriculture and the director of the wildlife resources agency may promulgate regulations to implement this subsection (i).
    7. (7) No funds deposited in the local parks land acquisition fund from the tax levied by subsection (a) shall be obligated or expended to acquire any interest in real property through condemnation or the power of eminent domain.
  10. (j) State Lands Acquisition Fund.
    1. (1) One and one-half cents (1.5¢) of the tax levied by subsection (a) shall be credited to a special agency account in the state general fund known as the state lands acquisition fund. Expenditures from such fund shall be made only to implement and carry out the purposes set forth in subdivision (j)(2). Funds deposited in such fund shall not revert at the end of any fiscal year, and all interest accruing on investments and deposits of the fund not otherwise expended shall be returned to and made a part of the fund.
    2. (2)
      1. (A) The commissioner of environment and conservation shall expend the funds which are deposited in the state lands acquisition fund only for the acquisition of land for any area designated as an historic place as evidenced by its inclusion on the National Register of Historic Places, state historic areas or sites, state parks, state forests, state natural areas, boundary areas along state scenic rivers, the state trails system, and for the acquisition of easements to protect any of the foregoing state areas. Such funds may also be used for trail development in the foregoing areas. Such funds may also be used for the redevelopment, renovation and restoration of historic theaters owned by a governmental entity or a not-for-profit corporation or its controlled affiliate and listed on the National Register of Historic Places. Such funds may also be used for capital projects, including improvements and maintenance, at state parks.
      2. (B) No funds deposited in the state lands acquisition fund from the tax levied by subsection (a) shall be obligated or expended to acquire any interest in real property through condemnation or the power of eminent domain.
    3. (3) The first three hundred thousand dollars ($300,000) deposited in the state lands acquisition fund shall be transferred and credited to the compensation fund created under § 11-14-406. Following the procedure set forth in that section, the commissioner of finance and administration shall annually reimburse each city and county the amount of lost property tax revenue resulting from any purchase of land by the department of environment and conservation which renders such land tax exempt. The next two hundred fifty thousand dollars ($250,000) deposited in the state lands acquisition fund in each fiscal year shall be transferred and credited to the Tennessee Civil War or War Between the States site preservation fund created under § 4-11-112. Funds allocated to the preservation fund shall be used exclusively as provided in § 4-11-112.
    4. (4) The commissioner of environment and conservation, the commissioner of agriculture and the director of the wildlife resources agency shall jointly establish priorities for the appropriate allocation of funds deposited in the state lands acquisition fund. No project shall receive any such funds unless each such official has approved such expenditure. The commissioner of environment and conservation, the commissioner of agriculture and the director of the wildlife resources agency may promulgate regulations to implement this subsection (j).
    5. (5) Acquisition pursuant to this subsection (j) of property classified under chapter 5, part 10 of this title, shall not constitute a change in the use of the property, and no rollback taxes shall become due solely as a result of such acquisition.
    6. (6) Notwithstanding any provision of this section to the contrary, the commissioner of finance and administration, with the written approval of the commissioner of environment and conservation, is authorized, subject to legislative appropriation, to transfer funds from the state lands acquisition fund to the Tennessee heritage conservation trust fund, created in title 11, chapter 7, part 1. For the purposes of § 11-7-103(h), “other available sources” also shall not include any funds transferred to the Tennessee heritage conservation trust fund from the state lands acquisition fund pursuant to this subdivision (j)(6).
  11. (k) Revenue Stream. The moneys deposited in the 1986 wetlands acquisition fund and the moneys deposited in the state lands acquisition fund may be used as the revenue stream to pay the principal of and interest on revenue bonds that are sold by the state of Tennessee to generate funds to fulfill the purposes for which the moneys deposited in each of these funds may be used.
  12. (l) Agricultural Resources Conservation Fund.
    1. (1) One and one-half cents (1.5¢) of the tax levied by subsection (a) shall be credited to a special agency account in the state general fund known as the agricultural resources conservation fund. Expenditures from such fund shall be made only to implement and carry out the purposes set forth in subdivision (l)(2). Funds deposited in such fund shall not revert at the end of any fiscal year, and all interest accruing on investments and deposits of the funds not otherwise expended shall be returned to and made a part of the fund.
    2. (2) The commissioner of agriculture shall expend the funds that are deposited in the agricultural resources fund for purposes of landowner assistance, to address point and nonpoint source water quality issues, as well as nuisance problems, including, but not limited to, odor, noise, dust and similar concerns. The commissioner of environment and conservation, commissioner of agriculture and the director of the wildlife resources agency shall jointly establish priorities for the appropriate allocation of funds deposited in the agricultural resources conservation fund. No project shall receive any such funds unless each such official has approved such expenditure. The commissioner of agriculture may promulgate regulations to implement this subsection (l).
    3. (3) Expenditures from the agricultural resources conservation fund shall be made for the promotion and implementation of agricultural management practices that conserve and protect natural resources associated with agricultural production, including, but not limited to, soil, water, air, plants and animals. The commissioner of agriculture may spend up to five percent (5%) of the annual appropriations from this fund on education of landowners, producers and managers concerning conservation and protection practices. No more than ten percent (10%) of the annual appropriation from this fund may be used for management costs associated with technical assistance to accomplish the purposes of the fund and/or the administration of the fund. It is the intent of the general assembly that the highest priority of the agricultural resources conservation fund is to abate and prevent nonpoint source water pollution that may be associated with agricultural production; therefore, the commissioner of agriculture may spend no more than fifteen percent (15%) of the annual appropriations from the fund for the combined purposes of preventing or remedying air, noise, dust, and odor pollution, or similar nuisance type environmental problems associated with agricultural production. The commissioner of agriculture may expend agricultural resources conservation funds as matching dollars to secure additional funding to fulfill the purposes for which the fund was established.
    4. (4) The commissioner of agriculture shall seek advice from the commissioner of environment and conservation in determining the most effective ways to abate nonpoint pollution from agricultural activities.
  13. (m) Transfers to Other Funds. Beginning in fiscal year 2015-2016 and in each subsequent fiscal year, fifty percent (50%) of the total growth in collections of the tax levied by subsection (a) over the previous fiscal year and deposited to the funds enumerated in subsections (g), (i), (j), and (l) shall be transferred and credited as follows:
    1. (1) Sixty-four percent (64%) of the growth funds shall be transferred and credited to the Tennessee Civil War or War Between the States site preservation fund created by § 4-11-112, to be used exclusively as provided in § 4-11-112; and
    2. (2) Thirty-six percent (36%) of the growth funds shall be transferred and credited to historic property land acquisition fund created by § 4-11-113, to be used exclusively as provided in § 4-11-113.
  14. (n) Reports of Expenditures.
    1. (1)
      1. (A) By February 1 of every odd-numbered year, the commissioner of environment and conservation shall file with the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives a report detailing expenditures made from the state lands acquisition fund and grants made to local governments from the local parks land acquisition fund.
      2. (B) By February 1 of every odd-numbered year, the fish and wildlife commission shall file with the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives a report detailing expenditures made from the wetlands acquisition fund.
      3. (C) By February 1 of every odd-numbered year, the commissioner of agriculture shall file with the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives a report detailing expenditures made from the agricultural resources conservation fund.
    2. (2)
      1. (A) Once every five (5) years, beginning in 1996, the commissioner of environment and conservation and the fish and wildlife commission shall reevaluate their land acquisition goals and priorities and shall incorporate their findings and conclusions into a written plan. This plan shall be submitted to the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives, which shall conduct public hearings on the plan.
      2. (B) Once every five (5) years, beginning in 2002, the commissioner of agriculture shall reevaluate the progress and accomplishments of the agricultural resources conservation fund and shall incorporate the conclusions and recommendations of such reevaluation into a written plan. This plan shall be submitted to the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives, which shall hold public hearings on the plan.
  15. (o) Management Policies. The commissioner of environment and conservation and the fish and wildlife commission shall establish policies for the management of land acquired with funds from the state lands acquisition fund and the wetlands acquisition fund, which policies shall be designed to foster a good relationship with nearby private landowners and to prevent adverse impacts on adjoining property. These policies shall be publicized to nearby private landowners.
Backlinks (8)
History (69)
  • Code 1858, § 673 (deriv. Acts 1805, ch. 61, § 2)
  • Shan., § 968
  • Code 1932, § 1677
  • Acts 1937, ch. 108, art. 2, § 1
  • Item 96
  • 1937, ch. 192, § 13
  • 1937 (2nd Ex. Sess.), ch. 11, § 1
  • 1947, ch. 212, § 19
  • mod. C. Supp. 1950, § 1248.3, Item S (Williams, § 1248.108)
  • Acts 1957, ch. 22, § 8
  • 1967, ch. 178, § 1
  • 1968, ch. 483, §§ 1-3
  • 1971, ch. 190, §§ 1, 2
  • 1971, ch. 430, § 1
  • 1974, ch. 632, §§ 1, 2
  • 1976, ch. 492, § 1
  • 1977, ch. 148, § 1
  • 1977, ch. 323, § 1
  • 1978, ch. 908, § 1
  • impl. am. Acts 1978, ch. 934, §§ 22, 36
  • Acts 1981, ch. 149, § 1
  • 1982, ch. 817, §§ 1-3
  • 1983, ch. 149, § 1
  • T.C.A. (orig. ed.), § 67-4102, Item S
  • Acts 1986, ch. 598, § 2
  • 1986, ch. 604, § 1
  • 1986, ch. 833, §§ 6, 7
  • 1987, ch. 275, §§ 1-4
  • 1988, ch. 900, § 13
  • 1989, ch. 112, § 1
  • 1989, ch. 461, §§ 2-4
  • 1989, ch. 474, § 1
  • 1991, ch. 211, §§ 3, 4
  • 1991, ch. 256, §§ 2-9
  • 1993, ch. 410, § 19
  • 1994, ch. 721, § 1
  • 1995, ch. 100, § 1
  • 1997, ch. 526, § 1
  • 1997, ch. 542, § 4
  • 1998, ch. 604, § 1
  • 1998, ch. 605, §§ 4-8
  • 1998, ch. 673, §§ 1-5
  • 2000, ch. 846, § 31
  • 2000, ch. 907, § 1
  • 2000, ch. 943, § 1
  • 2000, ch. 983, § 5
  • 2000, ch. 998, § 1
  • 2002, ch. 678, § 1
  • 2003, ch. 355, §§ 33-36
  • 2003, ch. 386, § 1
  • 2005, ch. 99, § 13
  • 2006, ch. 673, § 1
  • 2006, ch. 989, § 3
  • 2007, ch. 79, § 1
  • 2007, ch. 153, § 2
  • 2007, ch. 180, § 1
  • 2007, ch. 602, §§ 183-186
  • 2008, ch. 1106, §§ 64-67
  • 2010, ch. 1134, §§ 49, 60, 62, 63
  • 2011, ch. 321, § 1
  • 2012, ch. 604, §§ 17, 18
  • 2012, ch. 792, §§ 1, 2
  • 2012, ch. 993, § 7
  • 2013, ch. 236, § 76
  • 2015, ch. 425, §§ 3, 5
  • 2016, ch. 1027, § 4
  • 2016, ch. 1059, § 3
  • 2019, ch. 197, § 7
  • 2022, ch. 834, §§ 1, 2.
§ 67-4-410. Establishments selling mixed drinks or setups.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1) “Gross receipts” means and includes the total receipts from the sale of any item included in subdivision (a)(2), without any deductions for any cost of sales, expense, or any other charge whatsoever. “Gross receipts” also includes all receipts of a person liable for tax imposed by this section, except where a person can and does show to the satisfaction of the commissioner what receipts, other than from sales of alcoholic beverages, mixed drinks and/or setups are included in the total gross receipts, and that they are accounted for and maintained separately on the books and records of such person;
    2. (2) “Mixed drinks and/or setups for mixed drinks” means and includes any sales of beverages containing any alcoholic content, other than beer, and includes sales of water, soft drinks, ice or any item capable of being used to prepare a mixed drink at a place of business of a person liable for the tax imposed by this section; and
    3. (3) “Person selling mixed drinks and/or setups for mixed drinks” means and includes any person deriving receipts from the sale of mixed drinks and/or setups for mixed drinks or alcoholic beverages whether or not consumed on the premises, and includes any country club, night club or private club in the nature of any social, dinner, athletic, or sporting club or organization, and any fraternal society, order, or association making sales and charges for any of these items:
      1. (A) Sales of mixed drinks taxed under chapter 211 of the Public Acts of 1967 and sales of alcoholic beverages made by persons licensed under §§ 57-3-203 and 57-3-205 shall not be taxed under this section; and
      2. (B) The term does not include sales of setups by cafes, cafeterias, and restaurants where such sales are merely incidental to the principal business and where no bar, lounge, or separate facility is maintained for the purpose of serving or selling mixed drinks and/or setups for mixed drinks.
  2. (b) Each person selling mixed drinks and/or setups for mixed drinks, as defined in subdivision (a)(3), which sale of setups for mixed drinks is declared to be lawful in localities where the sale of packaged alcoholic beverages is lawful, shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to fifteen percent (15%) of the gross receipts, as defined in subdivision (a)(1), in this state. This section also includes the sale of setups for mixed drinks for consumption by persons supplying alcoholic beverages from their own bottle or other container on the premises of persons holding licenses under title 57, chapter 4 to dispense alcoholic beverages for consumption on the premises.
  3. (c) The tax imposed shall be administered and collected on a monthly basis and shall be paid on or before the twentieth day of the month following each month in which the taxpayer's gross receipts are derived. The tax levied by this section shall be deemed to be for the privilege of making sales for the month or part of the month in which such privilege was exercised. Every person exercising this privilege shall monthly, on or before the twentieth day of the following month, make and deliver to the commissioner, upon such forms as the commissioner may prescribe, a statement verified by such person, or agent making such report and statement, which statement shall contain the following information:
    1. (1) The total gross receipts of the taxpayer from sales for the preceding month; and
    2. (2) Such further information as the commissioner may require.
  4. (d) In no case shall any collector or the collector's deputy fail or refuse to collect the tax imposed under this section because of the collector's doubt with reference to the legality of the business engaged in, but the case of the legality of such business shall be determined by the proper judicial authorities.
  5. (e) Any person required under this section to pay any tax or required by law or regulations made under authority thereof to make a return, keep any records or supply any information for the purpose of the computation, assessment or collection of any tax imposed by this section, who willfully fails to pay such tax, make such return, keep such records or supply such information at the time or times required by law or regulations, or who willfully attempts in any manner to evade or defeat any tax imposed by this section or the payment of the tax, in addition to the other penalties provided by law, commits a Class A misdemeanor.
History (6)
  • Acts 1967, ch. 296, § 1
  • 1969, ch. 273, § 1
  • 1970, ch. 354, § 1
  • T.C.A., § 67-4102, Item U
  • Acts 1988, ch. 526, § 31
  • 1989, ch. 591, §§ 1, 6.
§ 67-4-411. Marriage licenses — Funding for family violence shelter and services.
  1. (a) In addition to the privilege tax on marriage licenses under § 67-4-505, the county clerk shall collect and forward to the commissioner of revenue a tax of fifteen dollars ($15.00) for each marriage license issued.
  2. (b) Funding for family violence shelters and shelter services shall be as provided by the general appropriations act in each year.
Backlinks (3)
History (2)
  • Acts 1984, ch. 930, § 7
  • 1990, ch. 846, §§ 1, 2.
Part 5 General Revenue Law — Privileges Taxable by State and Local Governments
§ 67-4-501. Taxable privilege, generally.
  1. (a) The engaging in any vocation, occupation or business named in this part is declared to be a privilege and the rate of tax on such privilege shall be as fixed by this part, which privilege tax shall be paid to the county clerk, as provided by law for the collection of such revenue, unless otherwise expressly provided in this part.
  2. (b) The tax imposed by this part on each occupation, vocation or business is for the privilege of pursuing it for one (1) calendar year, subject to § 67-4-206, except as otherwise provided by this part.
History (5)
  • Acts 1937, ch. 108, art. 1, § 1
  • 1937, ch. 108, art. 2, § 1
  • C. Supp. 1950, §§ 1248.1, 1248.2 (Williams, §§ 1248.8, 1248.11)
  • Acts 1978, ch. 835, § 2
  • T.C.A. (orig. ed.), §§ 67-4201, 67-4202.
§ 67-4-502. Authorization to levy privilege tax.
  1. Each county and incorporated city is authorized and empowered to levy a privilege tax upon merchants and other vocations, occupations or businesses declared in this part to be privileges, to be levied in the same manner and not to exceed in amount the tax levied by the state, except as otherwise stated in the code.
History (5)
  • Acts 1937, ch. 108, art. 1, § 1
  • 1937, ch. 108, art. 2, § 1
  • C. Supp. 1950, §§ 1248.1, 1248.2 (Williams, §§ 1248.8, 1248.11)
  • Acts 1978, ch. 835, § 2
  • T.C.A. (orig. ed.), §§ 67-4201, 67-4202, 67-4-501.
§ 67-4-503. Multiple taxation of same privilege.
  1. (a) Notwithstanding any law to the contrary, except where specifically authorized by general law, when any county has pursuant to private act levied a tax on a privilege, no municipality within that county shall later levy a tax on the same privilege, and when any municipality has previously levied a tax on a privilege pursuant to general law or private act, the county in which such municipality is located shall not levy a tax on the same privilege. Any municipality with a population of five thousand (5,000) or more, according to the 1980 federal census or any subsequent federal census, located partly in one (1) county having a metropolitan form of government and partly in another county, may levy a hotel/motel tax, even if either of the counties in which the municipality with a population of five thousand (5,000) or more, according to the 1980 federal census or any subsequent federal census, is located levies such tax.
  2. (b) This section does not apply to any city that has constructed a qualifying project or projects under the Convention Center and Tourism Development Financing Act of 1998, compiled in title 7, chapter 88, as it relates to the authority of such city to levy an occupancy tax.
History (7)
  • Acts 1937, ch. 108, art. 1, § 1
  • 1937, ch. 108, art. 2, § 1
  • C. Supp. 1950, §§ 1248.1, 1248.2 (Williams, §§ 1248.8, 1248.11)
  • Acts 1978, ch. 835, § 2
  • T.C.A. (orig. ed.), §§ 67-4201, 67-4202, 67-4-501
  • Acts 1990, ch. 636, § 5
  • 2002, ch. 718, § 2.
§ 67-4-504. Authority to levy and impose private act privilege taxes in municipality with two premier type tourist resort municipalities in the same county.
  1. (a) Notwithstanding any other law to the contrary, any municipality located within a tourist resort county as defined in § 42-1-301 that also has two (2) premiere type tourist resort municipalities as defined in § 67-6-103(a)(3)(B)(i) in such county, is authorized to levy and impose the following taxes currently levied and imposed by private act by other municipalities located within such county:
    1. (1) A privilege tax not to exceed two percent (2%) of the consideration charged by restaurants, cafes, cafeterias, caterers and other similar establishments located in such municipality; and
    2. (2) A privilege tax not to exceed three percent (3%) upon the privilege of a consumer paying consideration for admission into or for an amusement within the corporate limits of the municipality levying the tax.
  2. (b) The privilege tax levied pursuant to subdivision (a)(1) shall not apply to food prepared to be served at churches, senior citizen centers, nursing homes and at boarding houses where the cost of food is included in the rental rate. In addition such tax shall not apply to the sale of alcoholic beverages in any form, manner, time or place.
  3. (c) Any such tax may be levied upon the adoption of an ordinance by a two-thirds (⅔) vote of the municipal governing body to which this section applies. The ordinance shall specify the privileges to which such taxes apply and the manner of payment and collection of such taxes.
  4. (d) Such taxes shall be levied on the same privileges, in the same manner and to the same extent as such taxes are levied pursuant to the private acts which impose such taxes.
  5. (e)
    1. (1) In administering and enforcing this section, the tax collection official shall have as additional powers, those powers and duties with respect to collecting taxes as provided in this title or otherwise provided by law for county clerks.
    2. (2) Upon any claim of illegal assessment and collection, the taxpayer has the remedies provided in this title; it is the intent of this section that law which applies to the recovery of state taxes illegally assessed and collected shall also apply to the tax or taxes levied under the authority of this section. Section 67-1-707 shall be applicable to adjustments and refunds of such tax or taxes.
    3. (3) With respect to the adjustment and settlement with taxpayers, all errors of city taxes collected by the tax collection official under authority of this section shall be refunded by the tax collection official.
    4. (4) Notice of any tax paid under protest shall be given to the tax collection official and the ordinance authorizing the levy of the tax shall designate a municipal officer against whom suit may be brought for recovery.
  6. (f) Such taxes shall be in addition to any other taxes levied or authorized to be levied on such privileges.
  7. (g) Seventy-five percent (75%) of the proceeds collected from any tax imposed pursuant to this section shall be used for tourism promotion; tourism infrastructure, including but not limited to, municipally owned or operated event centers and golf courses; and tourism advertising.
Backlinks (2)
History (1)
  • Acts 2013, ch. 108, § 1.
§ 67-4-505. Marriage licenses.
  1. The privilege tax on marriage licenses shall be five dollars ($5.00) each and the tax is to be kept in the county for school purposes.
Backlinks (2)
History (5)
  • Acts 1937, ch. 108, art. 2, § 1, Item 57
  • C. Supp. 1950, § 1248.2, Item 62 (Williams, § 1248.70)
  • modified
  • Acts 1981, ch. 69, § 1
  • T.C.A. (orig. ed.), §§ 67-4203, Item 62, 67-4-502.
§ 67-4-506. Vending machines benefiting charities.
  1. (a)
    1. (1) Each person operating any vending machine for the benefit of a charitable nonprofit organization, by which merchandise of the market value of the coin deposited not exceeding twenty-five cents (25¢) is sold or delivered to customers, shall have the privilege and option of registration with the department of revenue, reporting gross receipts vended through such machines, and paying tax on such gross receipts, in lieu of sales tax, at the rate of one and one-half percent (1.5%) of the gross receipts from the machines, except that the percentage shall be two and one-half percent (2.5%) of the gross receipts of all tobacco items from the machines, in the same manner, with the same privileges and exemptions, and under the same regulation and administration as the tax codified in § 67-4-402.
    2. (2) For purposes of this section, “vending machine” means any machine built such that only a fixed, predetermined price can be paid for the item dispensed by such machine, the machine cannot return or make change, and the machine cannot be adjusted, mechanically, electronically or otherwise, to change the price charged for the item.
    3. (3) Gross receipts taxed under this section shall be exempt from the sales and use tax levied by chapter 6 of this title.
  2. (b) To comply with the option in subsection (a), the name and address of the owner, and, if different from the owner, the name and address of the charitable nonprofit organization must appear upon each vending machine, and each vending machine must have a permanent registration on forms provided by the department, at a cost for which the department may charge one dollar ($1.00) each, plus a fee of two dollars ($2.00) for each individual company so permanently registering.
  3. (c) Any person, firm or corporation engaged in this business shall immediately notify the department of its options to pay under this chapter, and, failing to notify the department, shall pay sales tax as provided by law.
Backlinks (2)
History (1)
  • Acts 2003, ch. 358, § 1.
Part 6 General Revenue Law — Litigation Tax
§ 67-4-601. Rights of local governments preserved — Amount of tax — Liability — Application — Scott County pilot project — Substance abuse prevention programs — Facilities.
  1. (a) It is the expressed intent of the general assembly that counties and municipalities shall continue to have the authority to levy a local litigation tax and that no provision of chapter 488 of the Public Acts of 1981 shall be construed to limit or repeal such authority.
  2. (b)
    1. (1) Notwithstanding any other law to the contrary, each county by resolution of its legislative body, adopted by two-thirds (⅔) majority vote, may levy a privilege tax on litigation in all civil and criminal cases instituted in the county, other than those instituted in municipal courts, in addition to all other such privilege taxes authorized by law. Any tax levy adopted under this subsection (b) shall not exceed ten dollars ($10.00) per case; and the proceeds shall be used exclusively for the purposes of jail or workhouse construction, reconstruction or upgrading, or to retire debt, including principal and interest and related expenses, on such construction, reconstruction or upgrading or for courthouse renovation.
    2. (2) Any tax levy adopted under this subsection (b) shall only be effective until such time as all expenses of the construction, reconstruction, upgrading or renovation project have been paid, or until such time as the debt for such project has been retired. For the purposes of this subsection (b), debt includes principal, interest, origination costs and related expenses, as well as any debt issued for the purposes of refinancing the original indebtedness.
    3. (3) Notwithstanding any other law to the contrary, the state shall not be liable for or pay the tax levied under this subsection (b) in any civil or criminal case on behalf of any individual because such individual is indigent.
    4. (4) Notwithstanding any law to the contrary, this subsection (b) shall not apply to any publicly owned hospital in any county having a population of not less than seventy-three thousand six hundred (73,600) and not more than seventy-three thousand nine hundred (73,900), if the county commission for such county by majority vote provides that any such hospital shall be exempt.
    5. (5) Notwithstanding any law to the contrary, upon the adoption of a resolution by a two-thirds (⅔) majority vote of a county legislative body, a privilege tax on litigation in all civil and criminal cases may be levied in an amount not to exceed twenty-five dollars ($25.00) per case.
    6. (6) Notwithstanding any law to the contrary, upon the adoption of a resolution by a two-thirds (⅔) majority vote of a county legislative body, a privilege tax on litigation in all civil and criminal cases may be levied in an amount not to exceed twenty-five dollars ($25.00) per case, to be used exclusively for court house security, in addition to those purposes identified in subdivision (b)(1).
    7. (7)
      1. (A) Notwithstanding any other law to the contrary, a county may adopt the privilege tax in subdivision (b)(5) or (b)(6), or both.
      2. (B)
        1. (i) Notwithstanding the exclusive use restriction in subdivision (b)(6), a county that adopts the privilege tax in subdivision (b)(5) or (b)(6), or both, may also adopt a resolution by a two-thirds (⅔) majority vote of the legislative body, to use those funds, in addition to other purposes as permitted under this section, for the purpose of obtaining and maintaining software and hardware associated with collecting, receiving and maintaining records for law enforcement agencies, including county sheriff offices, jails and municipal or metropolitan police departments. This project may include computerizing agency operations, replacing existing systems with high technology systems that collect and share data on criminal activity and historical data with other law enforcement agencies, including fusion centers, and collecting and sharing biometric information for positive criminal or inmate identification. New or replacement systems shall incorporate modern software concepts and architecture, which shall include n-tier architecture, source code compliant with object-oriented programming concepts, and the use of a relational database management system for data storage.
        2. (ii) Any use of a privilege tax for purposes under this subdivision (b)(7)(B) shall only be permitted until such time as all expenses for the purchase, installation, training, maintenance and associated costs for the project as described under subdivision (b)(7)(B)(i) have been paid, or until such time as the debt for that project has been retired.
        3. (iii) For purposes of this subdivision (b)(7)(B), “debt” includes principal, interest, origination costs and related expenses, as well as any debt issued for the purposes of refinancing the original indebtedness.
    8. (8) Any legislative body that had adopted a resolution by a two-thirds (⅔) vote under subdivision (b)(5) or (b)(6) prior to August 27, 2008, shall not be required to adopt another resolution for this section to continue to apply in such county.
    9. (9) Notwithstanding any law to the contrary, in any county having a population of not less than sixteen thousand eight hundred (16,800) nor more than sixteen thousand nine hundred (16,900), according to the 2000 federal census or any subsequent federal census, upon the adoption of a resolution by two-thirds (⅔) majority vote of the county legislative body, a privilege tax on litigation in all civil and criminal cases may be levied in an amount not to exceed twenty-five dollars ($25.00) per case to be used for equipment and personnel costs of the county sheriff's department or for those purposes identified in subdivision (b)(1).
    10. (10) Notwithstanding any law to the contrary, in any county having a population of not less than one hundred eighty-three thousand one hundred (183,100) nor more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census, upon the adoption of a resolution by a two-thirds (⅔) majority vote of the county legislative body, a privilege tax on litigation in all civil cases in that county may be levied in an amount not to exceed twenty-five dollars ($25.00) per case. A civil case shall not include any original proceedings brought in juvenile court where the court is exercising jurisdiction granted under title 37, chapter 1. The revenue collected from this subdivision (b)(10) shall be used exclusively for personnel for and operating costs of the circuit court.
  3. (c)
    1. (1) Notwithstanding any law to the contrary, a pilot project concerning drug testing in public schools may be conducted in accordance with this subsection (c).
    2. (2) For the purposes of such pilot project, Scott County, or any municipality within such county, is authorized, by a two-thirds (⅔) vote of its legislative body, to levy an additional litigation tax per case, to be set by the county commission or municipal legislative body, as applicable, and to be denominated as part of the court costs, in matters before the local general sessions, juvenile, and municipal courts.
    3. (3) Any revenue generated by Scott County, or a municipality within such county, pursuant to subdivision (c)(2), shall be used exclusively to support local nonprofit drug testing programs authorized to operate in the public school system, and shall be distributed on a monthly basis by the county or municipality to such authorized local nonprofit drug testing program.
    4. (4) The taxes levied by this subsection (c) shall be in addition to any other taxes levied on litigation.
    5. (5) The department of education is authorized to request information from Scott County on the results of the pilot project, and to recommend to the general assembly, or other local education agency, any element of the pilot project which may have statewide applicability.
  4. (d) Notwithstanding any other law to the contrary, any county having a population of not less than sixteen thousand six hundred (16,600) nor more than sixteen thousand seven hundred (16,700), according to the 2000 federal census or any subsequent federal census, may, by a two-thirds (⅔) vote of its legislative body, levy an additional litigation tax of twenty-five dollars ($25.00) in all criminal cases instituted in the county. Such tax is in addition to all other such privilege taxes authorized by law. Any revenue collected pursuant to this subsection (d) shall be deposited in the county general fund for the sole purpose of providing grants for services in support of physically and sexually abused children.
  5. (e) Notwithstanding any other law to the contrary, any county having a population of not less than thirty nine thousand fifty (39,050) nor more than thirty nine thousand one hundred fifty (39,150), according to the 2000 federal census or any subsequent federal census, may, by a two-thirds (⅔) vote of its legislative body, levy an additional litigation tax of five dollars ($5.00) in all civil and criminal cases instituted in the county. Such tax is in addition to all other such privilege taxes authorized by law. Any revenue collected pursuant to this subsection (e) shall be deposited in the county general fund for the sole purpose of providing grants for services to children provided by the Tennessee Court Appointed Special Advocates Association (CASA).
  6. (f)
    1. (1) In addition to any other tax imposed pursuant to this chapter, there is levied a privilege tax on litigation in all civil and criminal cases instituted in the general sessions court in any county having a population of not less than thirty-five thousand six hundred (35,600) nor more than thirty-five thousand seven hundred (35,700), according to the 2010 federal census or any subsequent federal census, in an amount not to exceed four dollars seventy-five cents ($4.75) and upon the adoption of a resolution by a two-thirds (⅔) majority vote of the county legislative body.
    2. (2) Notwithstanding the apportionment provisions of § 67-4-606, any revenue collected pursuant to this subsection (f) shall be deposited in the county general fund, with the proceeds to be used exclusively for the funding of the general sessions court, and for ensuring compliance with fire codes for the existing courthouse justice center facilities. No proceeds derived from the tax shall be used to increase or decrease the salary of the general sessions judge during such judge's term in office. All expenditures made for courthouse justice center facilities in accordance with this subsection (f) shall be administered by the county sheriff, subject to the appropriation of funds for such purposes by the county legislative body.
    3. (3) No privilege tax shall be levied on litigation in accordance with this subsection (f) on or after July 1, 2020; provided, however, that this subdivision (f)(3) shall not be construed to absolve any person of liability for any litigation tax duly imposed by this subsection (f) prior to July 1, 2020.
  7. (g)
    1. (1) In addition to any other tax imposed pursuant to this chapter, by resolution adopted by a two-thirds (⅔) majority vote of the county legislative body, a privilege tax may be levied on litigation in all criminal court, fourth circuit court, and general sessions court-criminal division cases, in any county having a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census, in an amount not to exceed five dollars ($5.00).
    2. (2) Notwithstanding the apportionment provisions of § 67-4-606, any revenue collected pursuant to this subsection (g) shall be retained by the clerk, with the proceeds to be used exclusively by the clerk of the fourth circuit court.
  8. (h) Notwithstanding the apportionment provisions of § 67-4-606 or this section, upon the adoption of a resolution by a two-thirds (⅔) majority vote of a county legislative body, any amounts collected pursuant to this section may be used by the county legislative body for substance abuse prevention purposes in addition to other purposes identified by this section.
  9. (i) Notwithstanding any law to the contrary, any county having a population of not less than two hundred sixty-two thousand six hundred (262,600) nor more than two hundred sixty-two thousand seven hundred (262,700), according to the 2010 federal census or any subsequent federal census, may, upon the adoption of a resolution by two-thirds (⅔) majority vote of the county legislative body, levy an additional privilege tax on litigation in all civil and criminal cases in an amount not to exceed fifty dollars ($50.00) per case, to be used for jail construction and maintenance, workhouse construction and maintenance, juvenile detention center construction and maintenance, or courthouse construction and maintenance, or to retire debt, including principal and interest and related expenses, on such jail, workhouse, juvenile detention center, and courthouse construction and maintenance projects.
  10. (j) Notwithstanding any law to the contrary, any county having a population of not less than eighty-nine thousand eight hundred (89,800) nor more than eighty-nine thousand nine hundred (89,900) according to the 2010 federal census or any subsequent federal census, may, upon the adoption of a resolution by two-thirds (⅔) majority vote of the county legislative body, levy an additional privilege tax on litigation in all civil and criminal cases in an amount not to exceed one hundred dollars ($100) per case, to be used for the construction of a building, separate from the courthouse, that would house legal proceedings and offices directly involved with the court system, and to renovate the county courthouse, or to retire debt, including principal and interest and related expenses, on such building and courthouse construction and maintenance projects.
  11. (k) Notwithstanding § 67-1-602, a county continues to have the authority to levy a local litigation tax on an adoption proceeding in chancery, circuit, or juvenile court, and the exemption provided in § 67-4-604 (b)(3) does not limit or repeal such authority.
History (24)
  • Acts 1937, ch. 108, art. 2, § 2
  • C. Supp. 1950, § 1248.3 (Williams, § 1248.119)
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1981, ch. 488, § 7
  • T.C.A. (orig. ed.), § 67-4101
  • Acts 2000, ch. 886, §§ 1, 2
  • 2001, ch. 225, §§ 1, 2
  • 2004, ch. 861, § 1
  • 2004, ch. 945, § 1
  • 2006, ch. 958, §§ 1-15
  • 2007, ch. 146, §§ 1-3
  • 2008, ch. 692, §§ 1-3
  • 2008, ch. 870, §§ 1, 2
  • 2008, ch. 961, §§ 1, 2
  • 2008, ch. 1187, § 1
  • 2011, ch. 496, § 1
  • 2012, ch. 659, § 1
  • 2013, ch. 450, § 1
  • 2015, ch. 327, § 1
  • 2016, ch. 661, § 1
  • 2016, ch. 897, § 1
  • 2016, ch. 945, § 1
  • 2018, ch. 797, § 1
  • 2023, ch. 370, § 2.
§ 67-4-602. Tax imposed.
  1. (a) There is levied a privilege tax on litigation instituted in this state, of twenty-nine dollars and fifty cents ($29.50) on all criminal charges, upon conviction or by order.
  2. (b) There is levied a privilege tax on litigation of twenty-three dollars and seventy-five cents ($23.75) in all civil cases in this state in chancery court, circuit court, probate court, general sessions court when exercising state court jurisdiction, or in any other court exercising state court jurisdiction in a civil case in this state other than the court of appeals or the supreme court. When a general sessions court is exercising state court jurisdiction, except with regard to cases in juvenile court, there is levied an additional privilege tax of one dollar ($1.00).
  3. (c) There is levied a privilege tax on litigation of seventeen dollars and seventy-five cents ($17.75) in all civil cases in this state in general sessions court, when not exercising state court jurisdiction.
  4. (d) There is levied a privilege tax on litigation of thirteen dollars and seventy-five cents ($13.75) in all civil cases in this state in the court of appeals or the supreme court.
  5. (e) In all civil cases in municipal courts in this state, the clerk of the court shall collect a litigation tax in accordance with § 16-18-305. When a municipal court is exercising general sessions jurisdiction, the clerk of the court shall collect a privilege tax on litigation in those cases that is the same as the tax collected by other general sessions courts in comparable cases.
  6. (f)
    1. (1) In addition to any other tax imposed by this chapter, there is levied a privilege tax on litigation of three dollars ($3.00) on all criminal charges, upon conviction or by order, instituted in the general sessions court in any county having a population of not less than three hundred nineteen thousand six hundred twenty-five (319,625), nor more than three hundred nineteen thousand seven hundred twenty-five (319,725), according to the 1980 federal census or any subsequent federal census. Notwithstanding the apportionment provisions of § 67-4-606, each levy of this tax shall be paid into the office of the county clerk of such county, with the proceeds to be credited to a separate reserve account in the county fund. The proceeds shall be disbursed to expand the use of the appropriate law enforcement officers for walking patrols within public housing subdivisions, and in localities within such county that traditionally experience greater incidence of crime. The proceeds may also be used by the respective police department to fund police cadet programs conducted by such department, in localities within such county that traditionally experience greater incidence of crime.
    2. (2) Five percent (5%) of the proceeds collected under subdivision (f)(1) shall be retained by the office of the county clerk collecting the tax, for the purpose of effectuating this subsection (f).
  7. (g)
    1. (1) In addition to any other tax levied by this chapter, there is levied an additional privilege tax on litigation of one dollar ($1.00) on all criminal charges, upon conviction or by order, instituted in any state or county court, for any violation of title 55, chapter 8, or for a violation of any ordinance governing use of public parking space.
    2. (2) Notwithstanding this chapter or any private act or resolution of a county legislative body to the contrary, no litigation taxes shall apply to any charge prosecuted for an offense under § 55-8-188.
    Backlinks (2)
  8. (h)
    1. (1) There is imposed an additional privilege tax on litigation of one dollar ($1.00) on all criminal charges, upon conviction or by order, instituted in any state or general sessions court. Effective July 1, 2012, the privilege tax on litigation imposed by this subdivision (h)(1) is increased in the amount of two dollars ($2.00), for a total of three dollars ($3.00), which shall be deposited to the statewide automated victim information and notification system fund created by subdivision (h)(2).
    2. (2)
      1. (A) There is created a special account in the state treasury to be known as the statewide automated victim information and notification system fund, referred to as the victim notification fund in this section.
      2. (B) Notwithstanding the apportionment of revenue formula in § 67-4-606, proceeds from the privilege tax on litigation imposed by subdivision (h)(1) must be deposited in the victim notification fund.
      Backlinks (2)
    3. (3) Moneys in the victim notification fund may be invested by the state treasurer in accordance with § 9-4-603.
    4. (4) Notwithstanding any law to the contrary, interest accruing on investments and deposits of the victim notification fund shall be credited to the fund, shall not revert to the general fund and shall be carried forward into the subsequent fiscal year.
    5. (5) Any balance remaining unexpended at the end of a fiscal year in the victim notification fund shall not revert to the general fund but shall be carried forward into the subsequent fiscal year.
    6. (6) Money in the victim notification fund may be expended only in accordance with annual appropriations approved by the general assembly and in accordance with § 40-38-505.
    Backlinks (2)
  9. (i) The privilege taxes imposed by § 40-24-107 are deemed litigation taxes, collectible by the respective court clerks as otherwise provided in § 67-4-603, and subject to apportionment according to § 67-4-606; however, the designation of these taxes as litigation taxes shall not change the clerk's fee provided for in § 40-24-107, nor shall the designation of the taxes as litigation taxes alter the priority of collection or distribution of monies collected by the clerk in cases where these taxes are levied.
  10. (j) The privilege tax imposed by § 39-13-708, after deduction for administrative costs under § 39-13-708(c)(1), is deemed a litigation tax, collectible by the respective court clerks, as otherwise provided in § 67-4-603, and subject to apportionment according to § 67-4-606; however, the designation of these taxes as litigation taxes shall not change the clerk's fee provided for in § 39-13-708(c)(1), nor shall the designation of the taxes as litigation taxes alter the priority of collection or distribution of monies collected by the clerk in cases where these taxes are levied.
  11. (k)
    1. (1) In addition to any other tax imposed by this chapter, there is levied a privilege tax on litigation of two dollars ($2.00) on all criminal charges, upon conviction or by order, instituted in the general sessions court of any county served by a judicial commissioner.
    2. (2)
      1. (A) There is created a special account in the state treasury to be known as the judicial commissioner continuing education account, referred to as the judicial commissioner fund in this subsection (k).
      2. (B) Notwithstanding the apportionment of revenue formula in § 67-4-606, there shall be deposited in the judicial commissioner fund proceeds from the two-dollar privilege tax on litigation imposed by subdivision (k)(1).
    3. (3) Moneys in the judicial commissioner fund may be invested by the state treasurer in accordance with § 9-4-603.
    4. (4) Notwithstanding any law to the contrary, interest accruing on investments and deposits of the judicial commissioner fund shall be credited to the fund, shall not revert to the general fund and shall be carried forward into the subsequent fiscal year.
    5. (5) Any balance remaining unexpended at the end of a fiscal year in the judicial commissioner fund shall not revert to the general fund but shall be carried forward into the subsequent fiscal year.
    6. (6) Moneys in the judicial commissioner fund may be expended only in accordance with annual appropriations approved by the general assembly for the purposes described in § 40-1-111(f)(7).
    Backlinks (1)
  12. (l) Every person from whom the clerks of the various courts are required to collect the tax imposed by this section shall be liable for the tax imposed by this section.
Backlinks (18)
History (23)
  • Acts 1981, ch. 488, § 1
  • 1982, ch. 725, § 1
  • 1983, ch. 426, § 1
  • 1983, ch. 449, §§ 1, 2, 4
  • T.C.A., § 67-4102, Item J
  • Acts 1986, ch. 873, § 1
  • 1988, ch. 1024, § 1
  • 1989, ch. 546, §§ 1, 2
  • 1992, ch. 529, § 7
  • 1995, ch. 550, § 1
  • 1998, ch. 901, § 1
  • 1999, ch. 502, § 1
  • 2000, ch. 770, § 1
  • 2000, ch. 845, § 1
  • 2001, ch. 454, §§ 5-8
  • 2004, ch. 914, § 6(g)
  • 2005, ch. 429, § 24
  • 2006, ch. 1019, §§ 46, 47
  • 2009, ch. 488, § 1
  • 2012, ch. 1052, §§ 2, 3
  • 2012, ch. 1056, § 1
  • 2016, ch. 531, § 1
  • 2019, ch. 261, § 2.
§ 67-4-603. Collection.
  1. (a) The clerks of the various courts shall collect the various privilege taxes imposed by § 67-4-602 in the following manner:
    1. (1) Upon the commencement of an original civil action, from the plaintiff, except when such action is brought pursuant to a pauper's oath;
    2. (2) Upon a finding of guilt, plea of guilty, or submission to fine in a criminal action from the defendant;
    3. (3) Upon the filing in any civil action of an appeal, or of an appeal in the nature of a writ of error or certiorari, from one court to another, from the appellant, except when such appeal is brought pursuant to a pauper's oath;
    4. (4) Upon judgment against the defendant in any original civil action brought by a city or county of the state of Tennessee or by the state of Tennessee from the defendant; or
    5. (5) Upon judgment or final decree against the appellee in any action on an appeal or on an appeal in the nature of a writ of error or certiorari, where the appellant is a city or county of the state of Tennessee or the state of Tennessee from the appellee.
  2. (b)
    1. (1) When any defendant in a criminal action is liable to pay the applicable privilege tax, the clerk of the court shall certify to the commissioner of correction, the county sheriff or the board of workhouse commissioners, as applicable, whether payment of the tax has been made. Such certification shall be in such form as the commissioner, the county sheriff or the board of workhouse commissioners, as applicable, shall direct. The commissioner, the county sheriff, or the board of workhouse commissioners, as applicable, shall then cause any amount owing to be collected from the inmate during the inmate's period of confinement by the department or at the county jail or county workhouse, as applicable. The commissioner, the county sheriff and the board shall retain all records relating to amounts collected for the payment of the privilege tax on litigation for a period of four (4) years. Such records may be examined by the commissioner of revenue or the commissioner's delegate, pursuant to chapter 1, part 14 of this title.
    2. (2) The commissioner of correction, the county sheriff, or the board of workhouse commissioners shall collect and pay over to the clerk of the court in which the defendant was convicted any amount collected, and the clerk of the court shall apply such amount to reducing the liability of the defendant for the privilege tax on litigation, and shall report and pay over this amount to the department of revenue in the same manner as the clerk of the court is required to collect and pay over taxes to the department of revenue as provided for in parts 2 and 3 of this chapter.
  3. (c) The tax imposed by § 67-4-602 shall be paid out of the first moneys collected in each case, and may be collected in the same manner as costs are collected, but the tax imposed by § 67-4-602 shall not be deemed to be costs.
  4. (d) Any moneys collected by the clerk of the court pursuant to subsection (a) for the payment of the privilege tax on litigation imposed pursuant to § 67-4-602, or pursuant to § 40-24-107 shall be equally divided between the two (2) privilege taxes and paid and reported to the department of revenue in such manner. At such time as the amount owed for either tax is fully paid, any additional money collected shall be paid and reported for the purpose of extinguishing the remaining tax on litigation.
  5. (e) For purposes of subdivision (a)(3), the time of filing in any civil action of an appeal shall be deemed to be the time of the docketing of the appeal in the appellate court. The litigation taxes to be collected under this section in any appeal to the court of appeals or the supreme court shall be collected by the clerk of the appellate courts upon the docketing of the appeal in the appellate court.
  6. (f) The clerks of the various courts shall collect and remit the various privilege taxes on litigation, as well as the various fines, fees and court costs that are remitted to the state, and shall report them on forms prescribed by the commissioner.
Backlinks (5)
History (8)
  • Acts 1981, ch. 488, § 1
  • 1982, ch. 725, § 1
  • 1983, ch. 426, § 1
  • 1983, ch. 449, §§ 1, 2, 4
  • T.C.A., § 67-4102, Item J
  • Acts 1994, ch. 967, § 2
  • 2002, ch. 559, §§ 1, 2
  • 2005, ch. 429, § 25.
§ 67-4-604. Courts to which tax applies.
  1. (a) The privilege tax levied by § 67-4-602 shall be applicable to the supreme court and to the following courts, except as stated in subsection (b):
    1. (1) Court of appeals;
    2. (2) Chancery court;
    3. (3) Circuit court;
    4. (4) Criminal court;
    5. (5) Probate court;
    6. (6) Court of law and equity;
    7. (7) County court;
    8. (8) Court of general sessions;
    9. (9) Trial justice court;
    10. (10) Magistrate court;
    11. (11) City court; and
    12. (12) Any other inferior court as the general assembly shall from time to time ordain and establish, either presently in existence or created later; provided, however, that, notwithstanding any provision of this section, this part or any other law to the contrary, privilege taxes levied by § 67-4-602, shall not be applicable to a proceeding in any municipal court, unless, and only to the extent that, the proceeding necessitates exercise of the court's duly conferred concurrent general sessions jurisdiction.
  2. (b) The privilege tax levied by § 67-4-602 shall not be due in any of the following proceedings:
    1. (1) Any original proceeding in a juvenile court, as such court is defined in § 37-1-102, when such court exercises the jurisdiction granted by title 37, chapter 1; provided, that no proceeding in a court, which court exercises the jurisdiction granted by title 37, chapter 1, shall be exempt when the proceeding is brought pursuant to any jurisdiction other than that granted by title 37, chapter 1;
    2. (2) Any hearing before the Tennessee board of judicial conduct; or
    3. (3) An adoption proceeding in chancery, circuit, or juvenile court.
Backlinks (1)
History (9)
  • Acts 1981, ch. 488, § 1
  • 1982, ch. 725, § 1
  • 1983, ch. 426, § 1
  • 1983, ch. 449, §§ 1, 2, 4
  • T.C.A., § 67-4102, Item J
  • Acts 1999, ch. 502, § 2
  • 2004, ch. 914, § 6(h)
  • 2012, ch. 819, § 4
  • 2023, ch. 370, § 1.
§ 67-4-605. Liability of clerks for uncollected taxes.
  1. (a)
    1. (1) Any privilege tax imposed by § 67-4-602 that the clerk of the court fails to collect and pay over to the department of revenue shall be a debt of the clerk.
    2. (2) Any privilege tax imposed by § 67-4-602 that the clerk of any city court fails to collect and pay over to the department shall be a debt of the clerk.
    3. (3) The failure of the clerk of the supreme court or the clerk of the court of appeals to collect and pay over to the department any privilege tax imposed by § 67-4-602 shall not be a debt of the county.
  2. (b) Any clerk of the court failing or refusing to collect and pay over to the department the tax imposed by § 67-4-602 shall be liable for the tax and the clerk's official bondsman shall also be liable for the tax and the commissioner or the commissioner's delegate may collect the amount of the tax from the clerk or the clerk's official bondsman pursuant to chapter 1, part 14 of this title.
  3. (c) If the judge of any court suspends, releases, waives, remits or orders the clerk of the court not to collect any privilege tax on litigation, or in any other manner releases any party from liability for any privilege tax on litigation, the clerk of the court shall immediately report such suspension, release, waiver, remission, or order to not collect such tax, to the department in such manner as shall be prescribed by the department, and the commissioner or the commissioner's delegate shall immediately, upon receipt of such a report from any clerk of a court, present such information to the board of judicial conduct, which court shall take appropriate action pursuant to title 17, chapter 5. The commissioner or the commissioner's delegate shall also report such information to the council on pensions.
History (7)
  • Acts 1981, ch. 488, § 1
  • 1982, ch. 725, § 1
  • 1983, ch. 426, § 1
  • 1983, ch. 449, §§ 1, 2, 4
  • T.C.A., § 67-4102, Item J
  • Acts 2012, ch. 819, § 4
  • 2021, ch. 303, § 12.
§ 67-4-606. Apportionment of revenue.
  1. (a) The privilege tax collected under this part shall be paid into the state treasury and the proceeds shall be divided as follows:
    1. (1) Three hundred twenty ten thousandths percent (0.0320%) of the proceeds shall be deposited in a fund established for the operation of the Tennessee corrections institute. This amount shall not revert to the state general fund and shall not be subject to impoundment or allotment reserve, but shall be managed on a revolving non-quarter basis;
    2. (2) Four and four thousand four hundred thirty ten thousandths percent (4.4430%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the departments of education and safety to promote and expand driver education through the public schools of this state, and to promote safety on the highways, subject to the general law with respect to the allocation of funds by the commissioner of finance and administration as follows:
      1. (A) Seventy-five percent (75%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of education to be used only for the purposes as set forth in this subdivision (a)(2); and
      2. (B) Twenty-five percent (25%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of safety to be used only for the purposes as set forth in this subdivision (a)(2);
    3. (3) Thirty-two and one thousand five hundred two ten thousandths percent (32.1502%) of the proceeds shall be allocated to the general fund;
    4. (4) Six thousand five hundred fifty-three ten thousandths percent (0.6553%) of the proceeds shall be held in the state treasury and disbursed only upon request of the administrative director of the courts and used only for the purpose of funding the state court clerks' conference established in § 18-1-501. No state funds shall be obligated or expended pursuant to this section for the purpose of funding the state court clerk's conference, unless such meeting is held in a state facility when practical. In the event it is not practical to hold such meeting in a state park, the reasons and cost therefor must be set forth in writing by the affected agency head and shall be forwarded to the commissioner of finance and administration;
    5. (5) Eight thousand four hundred six ten thousandths percent (0.8406%) of the proceeds shall be allocated to the victims of crime assistance fund, created pursuant to § 9-4-205;
      Backlinks (1)
    6. (6) Twenty-four and twenty ten thousandths percent (24.0020%) of the proceeds shall be allocated to the criminal injuries compensation fund;
    7. (7) One and three thousand seven hundred fifty-five ten thousandths percent (1.3755%) of the proceeds shall be allocated to the victims of drunk drivers compensation fund;
    8. (8) Three and seven thousand six hundred fifty-three ten thousandths percent (3.7653%) of the proceeds shall be transferred to the state treasury and used entirely to fund § 40-14-207;
    9. (9) Five thousand five hundred twenty-nine ten thousandths percent (0.5529%) of the proceeds shall be credited to the account of the administrative director of the courts, to be used to defray the expenses of serving the general sessions courts and the Tennessee general sessions judges' conference;
    10. (10) Nineteen and two thousand nine hundred two ten thousandths percent (19.2902%) of the proceeds shall be transferred to the state treasurer, who shall credit that amount to the public defender program;
    11. (11) Seven and four thousand seven hundred one ten thousandths percent (7.4701%) of the proceeds shall be credited to the civil legal representation of indigents fund, authorized and created under § 16-3-808;
    12. (12) Two and three thousand fifty-six ten thousandths percent (2.3056%) of the proceeds shall be deposited in the state general fund and earmarked for grants to local governments for the purchase and maintenance of and line charges for electronic fingerprint imaging systems. These grants shall be awarded and administered by the office of criminal justice in the department of finance and administration. The general assembly may appropriate a portion of the earmarked funds derived from this subdivision (a)(12) to the Tennessee bureau of investigation for the purchase, installation, maintenance, and line charges for electronic fingerprint imaging systems. Prior to the purchase of any electronic fingerprint imaging system, a law enforcement agency or local government shall obtain certification from the Tennessee bureau of investigation that such equipment is compatible with the Tennessee bureau of investigation's and the federal bureau of investigation's integrated automated fingerprint identification system;
    13. (13) Three thousand four hundred twenty-six ten thousandths percent (0.3426%) of the proceeds shall be credited to the sex offender treatment fund, created pursuant to § 39-13-708; and
    14. (14) Two and seven thousand seven hundred forty-seven ten thousandths percent (2.7747%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the department of education to promote and expand driver education through the public schools of this state.
  2. (b) Notwithstanding any provision of this section to the contrary, the total amount allocated to a fund or program for any fiscal year pursuant to subsection (a), except the general fund, shall not be less than the amount allocated to such fund or program during the fiscal year ending June 30, 2005; provided, that, if the statewide amount of litigation tax collected during such fiscal year is less than the amount collected during the fiscal year ending June 30, 2005, then the total amount allocated to a fund or program for that fiscal year shall be reduced by a percentage equal to the percentage reduction in statewide litigation tax collections for that fiscal year.
Backlinks (19)
History (15)
  • Acts 1981, ch. 488, § 1
  • 1982, ch. 725, § 1
  • 1983, ch. 426, § 1
  • 1983, ch. 449, §§ 1, 2, 4
  • T.C.A., § 67-4102, Item J
  • Acts 1986, ch. 880, § 4
  • 1987, ch. 54, § 16
  • 1987, ch. 110, § 5
  • 1992, ch. 761, §§ 7, 8
  • 1993, ch. 66, § 73
  • 1998, ch. 946, §§ 1, 2
  • 2000, ch. 983, § 6
  • 2005, ch. 429, § 26
  • 2006, ch. 989, §§ 4, 5
  • 2007, ch. 234, §§ 1, 2.
Part 7 Business Tax Act
§ 67-4-701. Short title — Nature of tax — Legislative intent.
  1. (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.
  2. (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.
  3. (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 (4)
  • Acts 1971, ch. 387, §§ 1, 21
  • 1972, ch. 850, § 1
  • T.C.A., §§ 67-5801, 67-5820
  • Acts 1984, ch. 832, § 26.
§ 67-4-702. Part definitions.
  1. (a) As used in this part, unless the context otherwise requires:
    1. (1) “Affiliated business entity” means a business entity:
      1. (A) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest;
      2. (B) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or
      3. (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. (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. (3) “Commissioner” means the commissioner of revenue or the commissioner's duly authorized assistants, except as otherwise provided in this part;
    4. (4) “Department” means the department of revenue, except as otherwise provided in this part;
    5. (5) “Dominant business activity” means the business activity that is the major and principal source of taxable gross sales of the business;
    6. (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. (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. (8) “Individual property owner” means a person who owns a vacation lodging;
    9. (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. (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. (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. (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. (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. (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. (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. (16) “Retail sale” or “sale at retail” means any sale other than a wholesale sale;
    17. (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. (18)
      1. (A)
        1. (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;
        2. (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;
        3. (iii) “Sale” includes the furnishing of any of the things or services taxable under this part;
      2. (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. (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. (20)
      1. (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;
      2. (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. (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. (22)
      1. (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:
        1. (i) The taxpayer is organized or commercially domiciled in this state;
        2. (ii) The taxpayer owns or uses its capital in this state;
        3. (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or
        4. (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:
          1. (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;
          2. (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
          3. (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;
      2. (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. (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. (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. (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. (26)
      1. (A) “Wholesale sale” or “sale at wholesale” means any sale to a retailer for resale;
      2. (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;
      3. (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
      4. (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. (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.
  2. (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.
Backlinks (3)
History (20)
  • 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.
§ 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.
  1. (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.
  2. (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.
  3. (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 (4)
  • Acts 1971, ch. 387, §§ 17, 23
  • T.C.A., §§ 67-5817, 67-5822
  • Acts 2009, ch. 530, § 70
  • 2013, ch. 313, § 2.
§ 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.
  1. (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.
  2. (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.
Backlinks (12)
History (7)
  • 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.
§ 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.
  1. (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.
    Backlinks (1)
  2. (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.
  3. (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.
  4. (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.
Backlinks (9)
History (4)
  • Acts 1971, ch. 387, § 3
  • 1972, ch. 850, § 3
  • T.C.A., § 67-5803
  • Acts 2013, ch. 313, § 4.
§ 67-4-706. Registration of persons subject to taxes for purposes of filing returns and paying taxes — Designation of entity responsible for registrations.
  1. (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.
  2. (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.
  3. (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.
Backlinks (1)
History (8)
  • 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.
§ 67-4-707. Bond for certain foreign businesses.
  1. (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.
  2. (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 (12)
  • 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.
§ 67-4-708. Classifications.
  1. 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. (1) Classification 1. Each person engaged in the business of making sales of the following:
      1. (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;
        Backlinks (2)
      2. (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);
        Backlinks (1)
      3. (C) Hay, grain, feed, fertilizer, seeds, bulbs, nursery stock and other farm, lawn and garden supplies and tools;
      4. (D) Gasoline, diesel fuel and motor oils sold at retail; or
        Backlinks (1)
      5. (E) Gasoline and diesel fuel sold at wholesale;
        Backlinks (1)
      Backlinks (8)
    2. (2) Classification 2. Each person engaged in the business of making sales of the following:
      1. (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;
      2. (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;
      3. (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;
      4. (D) Prescription drugs and patent medicines;
      5. (E) Coal, wood, ice, fuel oil and liquefied petroleum gas;
      6. (F) Tangible personal property not specifically enumerated or described elsewhere in this part;
      7. (G) Prepared food and drinks, including alcoholic beverages, for consumption on and/or off the premises;
      8. (H) Cut flowers and growing plants; or
      9. (I) Advertising specialties;
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    3. (3) Classification 3.
      1. (A) Each person engaged in the business of making sales of the following:
        1. (i) Delicatessens and candy;
        2. (ii) Clothing made to individual order;
        3. (iii) Antique furniture, furnishings and objects of art;
          Backlinks (1)
        4. (iv) Books and magazines, stationery, accounting and legal forms, office forms and supplies, pens and pencils, school supplies and writing supplies;
        5. (v) Sporting goods and equipment, bicycles, and bicycle parts and accessories;
        6. (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;
        7. (vii) Cigars, cigarettes, tobacco and smokers supplies;
        8. (viii) Toys, games, and hobby kits and supplies;
        9. (ix) Cameras, films, and other photographic supplies and equipment;
        10. (x) Gift and novelty merchandise, souvenirs, and miscellaneous small art goods, such as greeting cards and holiday decorations; or
        11. (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;
      2. (B) Each person making sales from the operation of pawn shops;
      3. (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:
        1. (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;
        2. (ii) Legal services;
        3. (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;
        4. (iv) Services rendered by nonprofit membership organizations operating on a nonprofit membership basis for the promotion of the interest of the members;
        5. (v) Domestic service performed in private households;
        6. (vi) Services furnished by nonprofit educational and research agencies;
        7. (vii) Services by religious and charitable organizations;
        8. (viii) Accounting, auditing and bookkeeping services;
        9. (ix) Public utilities as defined in § 65-4-101;
        10. (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;
        11. (xi) Insurance carriers or insurance agents of any type selling or furnishing necessary services related to insurance and insurance adjustors;
        12. (xii) Operators of residential and nonresidential buildings except hotels, motels and rooming houses;
        13. (xiii) Lessors of the following properties: agricultural, airport, forest, mining, oil, and public utility;
        14. (xiv) Services furnished by persons engaged in the practice of veterinary medicine, dentistry or surgery, including services involving the boarding and lodging of animals;
        15. (xv) Services furnished by persons engaged in the practice of architecture, engineering or land surveying; or
        16. (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;
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    4. (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:
      1. (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;
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      2. (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
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    5. (5) Classification 5.
      1. (A) Industrial loan and thrift companies required to obtain a certificate and a license under title 45, chapter 5.
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      2. (B) Each person engaged in the business of making sales as a natural gas marketer.
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History (16)
  • 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.
§ 67-4-709. Tax rates.
  1. 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. (1) CLASSIFICATION 1 as described in § 67-4-708(1):
      1. (A) One-tenth of one percent (⁄ of 1%) of all sales by a retailer classified under § 67-4-708(1)(A), (1)(B) or (1)(C);
      2. (B) One-fortieth of one percent (⁄ of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(A);
      3. (C) Three-eightieths of one percent (⁄ of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(B) or (1)(C);
      4. (D) One-twentieth of one percent (⁄ of 1%) of all sales by a retailer classified under § 67-4-708(1)(D); and
      5. (E) One thirty-second of one percent (⁄ of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(E);
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    2. (2) CLASSIFICATION 2 as described in § 67-4-708(2):
      1. (A) Three-twentieths of one percent (⁄ of 1%) of all sales by a retailer; and
      2. (B) Three-eightieths of one percent (⁄ of 1%) of all sales by a wholesaler;
    3. (3) CLASSIFICATION 3 as described in § 67-4-708(3):
      1. (A) Three-sixteenths of one percent (⁄ of 1%) of all sales by a retailer; and
      2. (B) Three-eightieths of one percent (⁄ of 1%) of all sales by a wholesaler;
    4. (4) CLASSIFICATION 4 as described in § 67-4-708(4):
      1. (A)
        1. (i) One-tenth of one percent (⁄ 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);
        2. (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;
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        3. (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
      2. (B) One-tenth of one percent (⁄ of 1%) of the gross commissions, margins, fees or other charges by the persons enumerated in § 67-4-708(4)(B); and
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    5. (5) CLASSIFICATION 5 as described in § 67-4-708(5):
      1. (A)
        1. (i) One-tenth of one percent (⁄ of 1%) of the gross income of a business classified under § 67-4-708(5)(A); and
        2. (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;
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      2. (B) One-fiftieth of one percent (⁄ of 1%) of all sales within the state of a person classified under § 67-4-708(5)(B).
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History (23)
  • 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.
§ 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.
  1. 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. (1)
      1. (A)
        1. (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;
        2. (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;
        3. (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;
        4. (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;
      2. (B) “Flea market booth” means any contiguous space leased by a single vendor to sell tangible personal property; and
    2. (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.
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History (2)
  • Acts 2009, ch. 530, § 76
  • 2013, ch. 313, §§ 10, 11.
§ 67-4-711. Deductions.
  1. (a) In computing tax, there may be deducted from the measure of tax the following items:
    1. (1) Cash discounts allowed and taken on sales;
    2. (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. (3) The amount allowed as trade-in value for any article sold;
    4. (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. (5)
      1. (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;
      2. (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. (6) The sale of any service that is delivered to a location outside this state;
    7. (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. (8)
      1. (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;
      2. (B) Any deduction taken that is attributed to bad debts shall not include interest;
      3. (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:
        1. (i) Financing charges or interest;
        2. (ii) Sales or use taxes charged on the purchase price;
        3. (iii) Uncollectible amounts on property that remain in the possession of the seller until the full purchase price is paid;
        4. (iv) Expenses incurred in attempting to collect any debt; and
        5. (v) Repossessed property;
      4. (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;
      5. (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;
      6. (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.
  2. (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. (1) Federal excise taxes imposed on beer, gasoline, motor fuel and tobacco products;
    2. (2) Tennessee gasoline tax, compiled in chapter 3 of this title;
    3. (3) Tennessee motor vehicle fuel use tax, compiled in chapter 3 of this title;
    4. (4) Tennessee tobacco tax, compiled in part 10 of this chapter;
    5. (5) Tennessee beer taxes, compiled in title 57, chapters 5 and 6;
    6. (6) Special tax on petroleum products, compiled in chapter 3, part 9 of this title;
    7. (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. (8) Liquefied gas tax, compiled in chapter 3, part 11 of this title; and
    9. (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.
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History (14)
  • 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.
§ 67-4-712. Exemptions.
  1. (a)
    1. (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. (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. (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.
  2. (b) This part shall not apply to the following persons in the circumstances indicated:
    1. (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. (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. (3) Any person taxable under part 4 of this chapter with respect to receipts taxable under such provisions;
    4. (4) Newspaper route carriers and newspaper peddlers;
    5. (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. (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. (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.
  3. (c)
    1. (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. (2) No provision of this part shall apply to catfish farmers.
  4. (d)
    1. (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. (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. (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.
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  5. (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.
  6. (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.
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History (14)
  • 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.
§ 67-4-713. Credits.
  1. (a) The following credits may be taken by persons filing and paying the tax imposed by this part:
    1. (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. (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;
      1. (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;
      2. (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;
      3. (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;
      4. (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. (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. (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. (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:
      1. (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;
      2. (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;
      3. (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
      4. (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.
  2. (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.
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History (19)
  • 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.
§ 67-4-714. Inactive or terminated taxable entities not relieved from filing a return and paying business tax.
  1. (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. (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. (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.
  2. (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 (12)
  • 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.
§ 67-4-715. When taxes due and payable — Transmission of returns — Due dates of returns — Consolidating taxes.
  1. (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. (1) December 31 for persons taxable under § 67-4-708(1);
    2. (2) March 31 for persons taxable under § 67-4-708(2);
    3. (3) June 30 for persons taxable under § 67-4-708(3);
    4. (4) September 30 for persons taxable under § 67-4-708(4); and
    5. (5) December 31 for persons taxable under § 67-4-708(5).
  2. (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. (1) February 28 for persons taxable under § 67-4-708(1);
    2. (2) May 31 for persons taxable under § 67-4-708(2);
    3. (3) August 31 for persons taxable under § 67-4-708(3);
    4. (4) November 30 for persons taxable under § 67-4-708(4); and
    5. (5) February 28 for persons taxable under § 67-4-708(5).
  3. (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.
  4. (d)
    1. (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. (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. (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.
  5. (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.
  6. (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.
  7. (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.
Backlinks (9)
History (12)
  • 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.
§ 67-4-716. Applicability of parts of chapter 1 of this title.
  1. 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 (8)
  • 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.
§ 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.
  1. (a)
    1. (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:
      1. (A) The sale of tangible personal property that is shipped or delivered to a location in this state;
      2. (B) The sale of a service that is delivered to a location in this state;
      3. (C) The leasing of tangible personal property that is located in this state; or
      4. (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. (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.
    Backlinks (1)
  2. (b)
    1. (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. (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. (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).
    Backlinks (1)
  3. (c)
    1. (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. (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. (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.
    Backlinks (1)
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History (4)
  • Acts 2013, ch. 313, § 18
  • 2014, ch. 942, § 5
  • 2015, ch. 514, § 5
  • 2023, ch. 377, §§ 7, 8.
§ 67-4-718. Extension of time for filing or payment.
  1. (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.
  2. (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.
  3. (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 (3)
  • Acts 1981, ch. 77, § 1
  • T.C.A., § 67-5827
  • Acts 2009, ch. 530, § 86.
§ 67-4-719. Authority of commissioner to enter contract for collection of delinquent taxes.
  1. 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 (15)
  • 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.
§ 67-4-720. Certificate indicating whether person reported tax due for location at wholesaler rate or retailer rate. [Effective on January 1, 2023.]
  1. 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 (1)
  • Acts 2022, ch. 683, § 1.
§ 67-4-721. Settlement upon selling or quitting business.
  1. (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.
  2. (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.
  3. (c)
    1. (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. (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. (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.
  4. (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.
  5. (e)
    1. (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. (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. (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 (6)
  • 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.
§ 67-4-722. Taxpayer's records.
  1. (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.
  2. (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.
  3. (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.
  4. (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 (8)
  • 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.
§ 67-4-723. License — Issuance and renewal — Duty to exhibit license — Use of collected funds.
  1. (a)
    1. (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. (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. (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. (4) No person shall conduct business in this state without first acquiring the license required by this subsection (a).
    5. (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. (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).
    Backlinks (7)
  2. (b)
    1. (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. (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. (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. (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. (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.
  3. (c) It shall be the duty of each taxpayer that receives a license under this section to exhibit such license.
  4. (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.
  5. (e) Licenses already in effect as of January 1, 2014, continue to be valid until their original renewal date.
Backlinks (2)
History (7)
  • 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.
§ 67-4-724. Distribution of taxes — Retention by state in general fund of taxes, interest and penalties assessed due to audit.
  1. (a) The tax levied by the state under § 67-4-704, including any associated interest and penalties, shall be distributed as follows:
    1. (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. (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. (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. (4) After the distributions provided in subdivisions (a)(1)-(3), an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the remaining proceeds of the tax shall be allocated to the department to cover the expenses of administration and collection;
    5. (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.
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  2. (b) The tax levied by an incorporated municipality under § 67-4-705, including any associated interest and penalties, shall be distributed as follows:
    1. (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. (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. (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. (4) After the distributions provided in subdivisions (b)(1)-(3), an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the remaining proceeds of the tax shall be allocated to the department to cover the expenses of administration and collection;
    5. (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.
  3. (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.
  4. (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.
Backlinks (1)
History (14)
  • 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.
§ 67-4-727. Municipal airports outside municipal boundaries.
  1. (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.
  2. (b)
    1. (1) This section shall not apply to any county having a population, according to the 1980 federal census or any subsequent federal census, of:
      3. 100,000200,000
      4. 285,000290,000
      5. 450,000550,000
      6. 600,001
    2. (2) This section shall not apply to any county having a metropolitan form of government.
    3. (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 (5)
  • Acts 1971, ch. 387, § 2
  • 1972, ch. 850, § 2
  • 1983, ch. 386, § 7
  • 1983, ch. 466, §§ 3-7
  • T.C.A., § 67-5802.
§ 67-4-728. Fee or tax on beer.
  1. 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 (5)
  • Acts 1971, ch. 387, § 2
  • 1972, ch. 850, § 2
  • 1983, ch. 386, § 7
  • 1983, ch. 466, §§ 3-7
  • T.C.A., § 67-5802.
§ 67-4-729. Traveling photographers.
  1. (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.
  2. (b)
    1. (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. (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. (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.
  3. (c) A violation of this section is a Class C misdemeanor.
History (3)
  • Acts 1973, ch. 407, §§ 1-3
  • T.C.A., §§ 67-5829, 67-5830
  • Acts 1989, ch. 591, § 113.
§ 67-4-730. Property management companies.
  1. 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 (1)
  • Acts 2001, ch. 224, § 3.
Part 8 Bail Bond Tax
§ 67-4-801. Power to levy tax.
  1. 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 (1)
  • Acts 2001, ch. 456, § 2.
§ 67-4-802. Supervision and collection of tax — Forms.
  1. 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 (1)
  • Acts 2001, ch. 456, § 3.
§ 67-4-803. Amount of tax.
  1. 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 (2)
  • Acts 2001, ch. 456, § 4
  • 2002, ch. 775, § 1.
§ 67-4-804. Additional tax imposed — Continuation of previous bond.
  1. 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 (1)
  • Acts 2001, ch. 456, § 5.
§ 67-4-805. Effect of nonpayment on validity and issuance of bond.
  1. 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 (1)
  • Acts 2001, ch. 456, § 6.
§ 67-4-806. Duty of bail bondsman to collect tax — Disposition of collections.
  1. 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. (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. (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.
      Backlinks (1)
History (1)
  • Acts 2001, ch. 456, § 7.
Part 9 Fantasy Sports Tax Act
§ 67-4-901. Short title.
  1. This part shall be known and may be cited as the “Fantasy Sports Tax Act”.
History (1)
  • Acts 2016, ch. 978, § 4.
§ 67-4-902. Part definitions.
  1. As used in this part:
    1. (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. (2) “Commissioner” means the commissioner of revenue;
    3. (3) “Entry fees” has the same meaning as defined in § 4-49-202;
    4. (4) “Fantasy sports contest” has the same meaning as defined in § 4-49-202;
    5. (5) “Fantasy sports operator” has the same meaning as defined in § 4-49-202;
    6. (6) “Player” has the same meaning as defined in § 4-49-202;
    7. (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. (8) “Tennessee consumer” has the same meaning as defined in § 4-49-202.
History (2)
  • Acts 2016, ch. 978, § 4
  • 2023, ch. 143, § 8.
§ 67-4-903. Tax on adjusted revenues of fantasy sports contest.
  1. (a) It is a privilege taxable by this state to offer or provide to Tennessee consumers fantasy sports contests.
  2. (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.
  3. (c) The tax imposed by this part shall be collected and administered by the commissioner.
History (1)
  • Acts 2016, ch. 978, § 4.
§ 67-4-904. Payment of tax.
  1. 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 (1)
  • Acts 2016, ch. 978, § 4.
§ 67-4-905. Distribution of taxes.
  1. Of the taxes, including all penalties and interest, received by the commissioner under this part, the distribution shall be as follows:
    1. (1)
      1. (A) From July 1, 2016, to June 30, 2017, sixty percent (60%) shall be allocated to the general fund; and
      2. (B) Beginning July 1, 2017, and thereafter, sixty-eight percent (68%) shall be allocated to the general fund;
    2. (2) Twenty percent (20%) shall be allocated among the counties of the state in the proportion that the population of each bears to the aggregate population of the state according to the most recent federal census and other censuses authorized by law;
    3. (3) Ten percent (10%) must be allocated to the fantasy sports fund established by § 4-49-207; and
    4. (4)
      1. (A) From July 1, 2016, to June 30, 2017, ten percent (10%) shall be allocated to the department of revenue for administration of this part; and
      2. (B) Beginning July 1, 2017, and thereafter, two percent (2%) shall be allocated to the department of revenue for administration of this part.
History (2)
  • Acts 2016, ch. 978, § 4
  • 2023, ch. 143, § 9.
Part 10 Tobacco Tax Law
§ 67-4-1001. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Cigar” or “cigars” includes any roll of tobacco, for smoking, irrespective of the tobacco being flavored or adulterated, or mixed with other ingredients, where such a roll has a wrapper made chiefly of tobacco, except “cigar” or “cigars” does not include rolls of tobacco for smoking defined in this section as “cigarettes”;
    2. (2)
      1. (A) “Cigarette” or “cigarettes” means and includes all rolled, shredded, or cut tobacco, or any substitute therefor, wrapped in paper, or substitute therefor, and all rolled, shredded or cut tobacco, or any substitute therefor, wrapped in homogenized tobacco wrapper, and being within customary cigarette sizes and marketed in cigarette type packages;
      2. (B) “Cigarette” includes any cigarette produced by a cigarette rolling machine at a retail establishment;
      3. (C) “Cigarette” does not include smokeless nicotine products;
    3. (3)
      1. (A) “Cigarette rolling machine” means a machine at a retail establishment that enables any person to process at that establishment tobacco or any product that is made or derived from tobacco into a roll or tube;
      2. (B) “Cigarette rolling machine” does not mean any hand-held, manually operated cigarette rolling machine, equipment, or device, if such machine, equipment, or device is held by the retail establishment solely for the sale to consumers for off-premises use in making cigarettes for personal consumption;
    4. (4) “Cigarette rolling machine operator” means a person that purchases or leases for use, or controls, possesses or maintains, a cigarette rolling machine at a retail establishment that enables any person to process at that establishment tobacco or any product that is made or derived from tobacco into a roll or tube. A cigarette rolling machine operator is deemed to be a tobacco distributor for purposes of this part;
    5. (5) “Commissioner” means the commissioner of revenue;
    6. (6) “Consumer” means an individual who is not a cigarette retail dealer or a licensed cigarette distributor. “Consumer” includes any person, including a cigarette retailer or licensed distributor, who purchases cigarettes for personal consumption;
    7. (7) “Dealer” or “distributor” has the exact same meaning as “person” as defined in this section;
    8. (8)
      1. (A) “Delivery sale” means any sale of cigarettes to a consumer in this state when either:
        1. (i) The purchaser submits the order for such sale by means of a telephonic or other method of voice transaction, the mails, or any other delivery service, or the internet or other online service; or
        2. (ii) The cigarettes are delivered by use of the mails or other delivery service;
      2. (B) A sale of cigarettes shall be a delivery sale regardless of whether the seller is located within or without the state;
    9. (9) “Delivery service” means any person who is engaged in the commercial delivery of letters, packages, or other containers and is not a seller, dealer or distributor;
    10. (10) “Department” means the department of revenue;
    11. (11) “Drop shipment plan or system” means any device whereunder a manufacturer or sales agency or drop shipment depot ships tobacco products to points in the state to be billed or collected for by some person other than the manufacturer or sales agency, or drop shipment depot, or person shipping such products;
    12. (12) “Loose tobacco” means tobacco that is not contained in rolls or tubes and that has been removed from its original packaging;
    13. (13) “Manufacturing distributor” means any person, with a plant located in this state, engaged in the business of manufacturing or processing consumable tobacco products, taxed by this part;
    14. (14) “Nonresident” means any person who is not a bona fide domiciliary of this state and/or who maintains no plant, warehouse, or other tobacco products storage facility in this state;
    15. (15) “Person” means and includes every individual, firm, association, joint-stock company, syndicate and corporation;
    16. (16) “Possess” means to have in one's actual and physical control, or to have the exclusive detention and control of, to own or be entitled to, or to have responsibility for the storage of in the capacity of a warehouseman;
    17. (17) “Resident agent” means a resident of this state, designated in writing by the commissioner to either sell unaffixed or to affix revenue stamps to tobacco products as provided for in this part;
    18. (18) “Retail dealer” means each tobacco vending machine, place, store, booth, concession, truck or vehicle, or person that in any way sells or makes available tobacco products directly to the ultimate consumer;
    19. (19) “Sale” means, in addition to its usual meaning, any sale, use, transfer, exchange, barter, gift, or offer for sale and distribution, in any manner or by any means whatsoever;
    20. (20) “Smokeless nicotine product”:
      1. (A) Means nicotine that is in the form of a solid, gel, gum, or paste that is intended for human consumption or placement in the oral cavity or absorption into the human body by any means other than inhalation; and
      2. (B) Does not include tobacco or tobacco products;
    21. (21) “Stamp” means the impression, device, stamp, label or print manufactured, printed or made as prescribed by the commissioner;
    22. (22) “Tobacco distributor” means any person who receives, purchases, sells or otherwise handles tobacco products as a secondary wholesaler and who acquires all that person's tobacco products on which, prior to receipt by the person, the tobacco tax required by Tennessee and any other state has been previously paid by a Tennessee wholesaler that is also a Tennessee appointed and bonded affixing agent, and who sells or otherwise makes available such tobacco products to retailers in this and perhaps other states at a wholesale price for the purpose of resale to the consumer;
    23. (23) “Tobacco manufacturer's warehouse” means any warehouse, building or structure or space therein, whether publicly or privately owned, leased or rented, where any tobacco products are stored as a function of the distribution of such products, but are maintained separate from the manufacturer's operation, and where title to and control of distribution of the tobacco products stored therein remain with the manufacturer or processor;
    24. (24) “Tobacco products”:
      1. (A) Means cigars, cigarettes, manufactured tobacco, and snuff; and
      2. (B) Does not include smokeless nicotine products or tobacco produced and processed by the grower for the grower's own use and not for sale;
    25. (25) “Vending machine” means any money-in-the-slot device used for the automatic merchandising of tobacco products, and each such machine shall be considered as a separate retail dealer;
    26. (26) “Wholesale cost price” means the manufacturers' and/or processors' actual sales price of any tobacco product, delivered to Tennessee dealers, exclusive of any discounts, rebates, allowances, or the privilege tax imposed by this part; and
    27. (27) “Wholesale dealer and jobber” means any person who maintains wholesale facilities in one (1) or more permanent locations, and engages in the business of receiving, storing, purchasing, selling at wholesale only, importing unstamped tobacco products, and otherwise handling tobacco products for resale at a wholesale price only to other licensed wholesale dealers and jobbers, or tobacco distributors or retail dealers as defined in this section, but does not sell tobacco products directly to the ultimate consumer.
Backlinks (9)
History (13)
  • Acts 1937, ch. 133, §§ 1, 8
  • 1941, ch. 126, § 1
  • C. Supp. 1950, §§ 1233.1, 1238.5 (Williams, §§ 1213.1, 1213.6, 1213.8)
  • modified
  • Acts 1965, ch. 118, § 1
  • 1968, ch. 623, § 1
  • 1972, ch. 447, § 1
  • 1976, ch. 440, § 1
  • T.C.A. (orig. ed.), §§ 67-3101, 67-3110
  • Acts 1984, ch. 536, § 1
  • 2005, ch. 388, § 1
  • 2012, ch. 1066, §§ 1, 2
  • 2021, ch. 69, §§ 1-3.
§ 67-4-1002. Tax imposed.
  1. Every dealer or distributor of tobacco products defined in this part shall pay to the department for exclusive state purposes, taxes in addition to all other taxes or fees, for the privilege of selling cigarettes and tobacco products in this state.
Backlinks (1)
History (19)
  • Acts 1937, ch. 133, § 4
  • 1937, ch. 201, § 1
  • 1937, ch. 295, § 1
  • 1937 (3rd Ex. Sess.), ch. 7, § 1
  • 1939, ch. 63, § 1
  • 1939, ch. 202, § 1
  • mod. C. Supp. 1950, § 1238.1 (Williams, § 1213.4)
  • Acts 1951, ch. 60, § 1 (Williams, § 1213.4b)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 34, § 1
  • 1965, ch. 118, § 2
  • 1967, ch. 98, § 2
  • 1969, ch. 250, §§ 1, 2, 5
  • 1971, ch. 58, § 1
  • 1972, ch. 457, § 1
  • 1976, ch. 440, § 2
  • T.C.A. (orig. ed.), § 67-3102
  • Acts 1985, ch. 179, § 5.
§ 67-4-1003. Tax levied on consumer.
  1. (a) The tobacco tax is declared to be a levy on the consumer, and the consumer shall be liable for the tax and subject to the incidence of the tax.
  2. (b) The distributors shall add the amount of tobacco taxes levied to the price of cigarettes or other tobacco products, and the distributor may state the amount of the taxes separately from the price of such cigarettes or other tobacco products on all price display signs, sales or delivery slips, bills and statements that advertise or indicate the price of such cigarettes or tobacco products.
  3. (c) This section shall in no way affect the method of collection of cigarette or tobacco taxes as now provided by existing law.
History (3)
  • Acts 1947, ch. 168, § 2
  • mod. C. Supp. 1950, § 1233.2 (Williams, § 1213.4a)
  • T.C.A. (orig. ed.), § 67-3103.
§ 67-4-1004. Rate on cigarettes — Enforcement and administration fee — Expired tax stamps.
  1. (a) The rate shall be three cents (3¢) on each cigarette.
  2. (b) In addition to the tax provided in subsection (a), every dealer or distributor of tobacco products defined in this part shall pay an enforcement and administration fee to the department of five hundredths of a cent (0.05¢) per pack of cigarettes for sale in Tennessee. The fee shall be collected from each dealer or distributor upon the purchase of tobacco tax stamps from the commissioner.
    Backlinks (3)
  3. (c) Any wholesale dealers, jobbers, tobacco distributors, and retail dealers having cigarette tax stamps, affixed and unaffixed, in their possession on July 1, 2007, shall not be required to pay the additional cigarette tax on the stamps resulting from the increase in the tax rate from ten (10) mills to three cents (3¢) on cigarettes bearing the stamps.
  4. (d)
    1. (1) In addition to the tax provided in subsection (a), there shall be levied an additional one-tenth of one cent (0.1¢) on each cigarette.
    2. (2) Any wholesale dealers, jobbers, tobacco distributors, and retail dealers having cigarette tax stamps, affixed and unaffixed, in their possession on July 1, 2007, shall not be required to pay the additional cigarette tax on the stamps resulting from the increase in the tax rate of one-tenth of one cent (0.1¢) on cigarettes bearing the stamps.
    Backlinks (1)
Backlinks (2)
History (22)
  • Acts 1937, ch. 133, § 4
  • 1937, ch. 201, § 1
  • 1937, ch. 295, § 1
  • 1937 (3rd Ex. Sess.), ch. 7, § 1
  • 1939, ch. 63, § 1
  • 1939, ch. 202, § 1
  • mod. C. Supp. 1950, § 1238.1 (Williams, § 1213.4)
  • Acts 1951, ch. 60, § 1 (Williams, § 1213.4b)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 34, § 1
  • 1965, ch. 118, § 2
  • 1967, ch. 98, § 2
  • 1969, ch. 250, §§ 1, 2, 5
  • 1971, ch. 58, § 1
  • 1972, ch. 457, § 1
  • 1976, ch. 440, § 2
  • T.C.A. (orig. ed.), § 67-3102
  • Acts 1985, ch. 179, § 6
  • 2002, ch. 856, §§ 1e, 1f
  • 2003, ch. 418, § 1
  • 2007, ch. 368, §§ 1, 2, 4.
§ 67-4-1005. Rate on other tobacco products.
  1. (a) The rate on all other tobacco products, including, but not limited to, cigars, cheroots, stogies, beedies, bidis, manufactured tobacco, and snuff of all descriptions made of tobacco or any substitute for tobacco, is six and six-tenths percent (6.6%) of the wholesale cost price.
  2. (b) This section does not apply to smokeless nicotine products.
Backlinks (2)
History (21)
  • Acts 1937, ch. 133, § 4
  • 1937, ch. 201, § 1
  • 1937, ch. 295, § 1
  • 1937, (3rd Ex. Sess.), ch. 7, § 1
  • 1939, ch. 63, § 1
  • 1939, ch. 202, § 1
  • mod. C. Supp. 1950, § 1238.1 (Williams, § 1213.4)
  • Acts 1951, ch. 60, § 1 (Williams, § 1213.4b)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 34, § 1
  • 1965, ch. 118, § 2
  • 1967, ch. 98, § 2
  • 1969, ch. 250, §§ 1, 2, 5
  • 1971, ch. 58, § 1
  • 1972, ch. 457, § 1
  • 1976, ch. 440, § 2
  • T.C.A. (orig. ed.), § 67-3102
  • Acts 2002, ch. 856, § 1g
  • 2003, ch. 418, § 2
  • 2021, ch. 69, § 4.
§ 67-4-1006. Sale of stamps — Agents.
  1. (a)
    1. (1) The tax imposed by this part shall be paid by the purchase of stamps from the commissioner of such design or denomination as may be prescribed by the commissioner, except that reconciliation payments of taxes on cigarettes made by cigarette rolling machine operators shall be paid in the time and manner prescribed by § 67-4-1031.
    2. (2) In lieu of tax stamps, the commissioner may, at the commissioner’s discretion, provide other means by which the tax applicable to products other than cigarettes may be paid.
  2. (b)
    1. (1) The commissioner is empowered to appoint agents to sell unaffixed stamps, and manufacturing distributors, wholesale dealers and jobbers as agents to affix and sell tax stamps as required by this section.
    2. (2) Agents appointed to sell revenue stamps may be required to execute a bond with a solvent surety company, qualified to do business in the state, as surety on the bond, payable to the state and conditioned to faithfully perform the duties imposed upon them, and to faithfully account for and promptly pay to the state any and all sums due the state by virtue of their appointment, and such other reasonable conditions as the commissioner may require.
    3. (3) Agents appointed to affix stamps and those persons authorized to pay tax by some means other than through the purchase of stamps shall be required to execute a bond in such amount as may be determined by the commissioner.
    4. (4) Any agent appointed by the commissioner to affix revenue stamps shall be permitted to purchase revenue stamps by executing a bond with a solvent surety company qualified to do business in this state, in an amount of one hundred ten percent (110%) of the agent’s estimated tax liability for thirty (30) days, but not less than two thousand dollars ($2,000), and conditioned upon such agent paying all taxes due the state arising from this part. This form of payment is in lieu of cash or its equivalent. Payment for each month’s liability shall be due on or before the twenty-fifth day of each month, including Sundays and holidays. Default in the bonding and payment provisions by any agent may result in the revocation of the agent’s privilege to purchase revenue stamps, except for cash, for a period up to twelve (12) months, in the discretion of the commissioner.
    5. (5) Agents for affixing revenue stamps are in no way authorized to sell stamps not affixed to tobacco products.
    6. (6) A violation of this section may result in suspension or revocation of the agency appointment. The procedure for suspension or revocation shall be upon a show cause petition, the procedure to be as set out in § 67-4-1021.
Backlinks (2)
History (7)
  • Acts 1937, ch. 133, § 5
  • C. Supp. 1950, § 1238.2 (Williams, § 1213.5)
  • Acts 1965, ch. 118, § 3
  • 1967, ch. 98, § 3
  • 1972, ch. 457, § 2
  • T.C.A. (orig. ed.), § 67-3104
  • Acts 2012, ch. 1066, § 3.
§ 67-4-1007. Counterfeiting and misuse of stamps.
  1. Any person who shall falsely and fraudulently make, forge, alter or counterfeit a stamp or stamps so prescribed by the commissioner, or who shall cause or procure to be falsely or fraudulently made, forged, altered, or counterfeited such stamps, or make, cause to be made, or attempt to procure a counterfeit stamp, device or equipment that may be used alone, or in conjunction with some other device or equipment, for the purpose of fraudulently making a counterfeit stamp or tax indicia, or who shall knowingly and willfully utter, publish, pass or tender as true, any false, altered, forged, or counterfeited stamps prescribed by this part, or who shall reuse any stamp previously affixed, commits a Class E felony.
Backlinks (1)
History (5)
  • Acts 1937, ch. 133, § 12
  • C. Supp. 1950, § 1238.9 (Williams, § 1213.12)
  • 1970, ch. 407, § 2
  • T.C.A. (orig. ed.), § 67-3107
  • Acts 1989, ch. 591, § 96.
§ 67-4-1008. Refunds for unused stamps.
  1. The commissioner is empowered to allow and make refunds for tobacco tax revenue stamps purchased from the commissioner or the commissioner's agent, upon submission of a written claim substantiated by such evidence as the commissioner may require to establish that:
    1. (1) The revenue stamps have been returned to the department and are unused; or
    2. (2) The stamps have been cancelled by an agent appointed by the commissioner on unused or unsalable products and returned to the manufacturers.
History (2)
  • Acts 1965, ch. 118, § 7
  • T.C.A., § 67-3125.
§ 67-4-1009. Distributors or dealers — Compensation.
  1. (a) For the purpose of compensating the dealer or distributor of tobacco products other than cigarettes in accounting for and remitting the tax and for the risk of loss and other expenses involved, the dealer shall be allowed two percent (2%) of the tax as the dealer's compensation, if the tax is not delinquent or deficient when paid.
  2. (b) The commissioner is empowered to allow any manufacturing distributor or wholesale dealer and jobber, as defined in this part, a discount of an amount not to exceed four and fifteen hundredths percent (4.15%) of the value of the stamps as compensation for selling and affixing the stamps to tobacco products.
  3. (c) The compensation and/or discount provided for in subsections (a) and (b) shall not apply to the fee imposed by § 67-4-1004(b).
History (21)
  • Acts 1937, ch. 133, §§ 4, 6
  • 1937, ch. 201, § 1
  • 1937, ch. 295, § 1
  • 1937 (3rd Ex. Sess.), ch. 7, § 1
  • 1939, ch. 63, § 1
  • 1939, ch. 202, § 1
  • 1941, ch. 126, § 1
  • 1949, ch. 191, § 1
  • mod. C. Supp. 1950, §§ 1238.1, 1238.3 (Williams, §§ 1213.4, 1213.6)
  • Acts 1951, ch. 60, § 1 (Williams, § 1213.4b)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 34, §§ 1, 2
  • 1965, ch. 118, §§ 2, 5
  • 1967, ch. 98, § 2
  • 1969, ch. 250, §§ 1, 2, 5
  • 1971, ch. 58, § 1
  • 1972, ch. 457, § 1
  • 1976, ch. 440, § 2
  • T.C.A. (orig. ed.), §§ 67-3102, 67-3106
  • Acts 1985, ch. 179, § 7.
§ 67-4-1010. Administration by department and commissioner.
  1. (a) The supervision and collection of the tax imposed by this part shall be under the direction of the department.
  2. (b) The commissioner is granted full power and authority to adopt such reasonable rules and regulations not in conflict with this part, or other statute, as the commissioner may deem necessary to enforce the collection of the tax levied by this part. Such rules and regulations, before being effective, shall be approved by the attorney general and reporter.
  3. (c) In enforcing this part, the commissioner shall consider the cost and effectiveness of administration, and endeavor to administer this part in the most cost efficient manner.
History (4)
  • Acts 1937, ch. 133, § 9
  • C. Supp. 1950, § 1238.6 (Williams, § 1213.9)
  • T.C.A. (orig. ed.), § 67-3108
  • Acts 1988, ch. 958, § 3.
§ 67-4-1011. Records and reports.
  1. (a)
    1. (1) The commissioner is authorized and empowered to prescribe the methods to be used by dealers and distributors in recording purchases and sales of tobacco products and purchases and consumption of tobacco tax stamps.
    2. (2) The commissioner is further authorized and empowered to require persons selling, distributing, or dealing in tobacco products to file such reports with the department in the manner and at such times as the commissioner may deem necessary in carrying out this part.
  2. (b) In any case where a person cannot produce evidence of sufficient stamps purchased or other payment of the tax imposed to cover all of any tobacco products received, it may be assumed that such products were disposed of without having either the proper stamps affixed or the tax paid on the tobacco products.
  3. (c)
    1. (1) Every common carrier transporting cigars, cigarettes, manufactured tobacco or snuff in this state shall keep a complete record of all tobacco products handled in each transaction, separately, and shall show the transportation of such tobacco products, both interstate and intrastate.
    2. (2) Every common carrier in this state shall give and permit the commissioner free access to such books and records, and furnish such information and reports as the commissioner may require.
    3. (3) Any person violating this subsection (c) commits a Class A misdemeanor.
  4. (d) A cigarette rolling machine operator must keep records both of tobacco sold for use in the operator's cigarette rolling machine and of any cigarettes made from such tobacco through use of the cigarette rolling machine.
History (9)
  • Acts 1937, ch. 133, §§ 9, 10
  • C. Supp. 1950, §§ 1238.6, 1238.7 (Williams, §§ 1213.9, 1213.10)
  • Acts 1968, ch. 623, § 3
  • 1970, ch. 407, § 3
  • 1977, ch. 352, § 2
  • T.C.A. (orig. ed.), §§ 67-3109, 67-3112
  • Acts 1988, ch. 526, § 36
  • 1989, ch. 591, §§ 1, 6
  • 2012, ch. 1066, § 4.
§ 67-4-1012. Distributors and dealers — Inspection of premises and records.
  1. (a) Every distributor or dealer shall permit the commissioner or the commissioner's authorized agent or representative to inspect at any time all tobacco products, invoices, books, papers and memoranda, including the general books, both operating and proprietary ledgers, and other records, as may be deemed necessary by the commissioner in ascertaining whether or not the tax levied under this part has been paid, or in determining the amount of such tax due. Every cigarette rolling machine operator shall permit the commissioner or the commissioner's authorized agent to inspect the operator's cigarette rolling machine at any time.
  2. (b) No licensed distributor or dealer shall be permitted to claim any part of the premises whereon the distributor or dealer is engaged in business, to be exempt from inspection, as being the distributor's or dealer's dwelling or home, the distributor's or dealer's application for license under this part being declared an express waiver of such claim.
  3. (c) All persons failing to permit the examination of tobacco products, invoices, books and other memoranda, including the general books, both operating and proprietary ledgers, and other records, or interfering with the orderly inspection or examination thereof, or failing to file such reports as may be required by the commissioner, commit a Class A misdemeanor.
History (7)
  • Acts 1937, ch. 133, § 9
  • C. Supp. 1950, § 1238.6 (Williams, § 1213.9)
  • Acts 1963, ch. 327, § 2
  • modified
  • T.C.A. (orig. ed.), § 67-3111
  • Acts 1989, ch. 591, §§ 1, 6
  • 2012, ch. 1066, § 5.
§ 67-4-1013. Search warrants.
  1. Any duly authorized representative, agent or employee of the department who has been designated by the commissioner to enforce this part is authorized and empowered to execute search warrants and do all acts incident to the search warrant, in the same manner as search warrants may be levied by sheriffs and other peace officers.
History (5)
  • Acts 1937, ch. 133, § 9
  • C. Supp. 1950, § 1238.6 (Williams, § 1213.9)
  • Acts 1963, ch. 327, § 2
  • modified
  • T.C.A. (orig. ed.), § 67-3111.
§ 67-4-1014. Enforcement officers.
  1. (a) Inspectors, agents, representatives or officers appointed by the commissioner shall be cloaked with and have the duty, power and authority as police officers to enforce this part and in the illegal traffic of unstamped tobacco products.
  2. (b) The highway patrol shall likewise have concurrent authority to assist in the enforcement of this part and in the illegal traffic of unstamped tobacco products.
  3. (c)
    1. (1) Any duly authorized representative or employee of the department who has been specifically designated by the commissioner to enforce §§ 67-4-1019 — 67-4-1021, is authorized and empowered to go armed, or carry a pistol while on active duty engaged in enforcing §§ 67-4-1019 — 67-4-1021.
    2. (2) Any such duly authorized representative or employee of the department who has been designated by the commissioner to enforce this part is authorized and empowered to execute search warrants and do all acts incident to the search warrant, in the same manner as search warrants may be levied by sheriffs and other peace officers.
History (6)
  • Acts 1937, ch. 133, § 9
  • C. Supp. 1950, § 1238.6 (Williams, § 1213.9)
  • Acts 1963, ch. 327, § 2
  • modified
  • 1971, ch. 288, § 2
  • T.C.A. (orig. ed.), §§ 67-3111, 67-3126.
§ 67-4-1015. Licenses — Penalties for unlicensed operation.
  1. (a) Before engaging in the business of selling, distributing or handling tobacco products in this state, every person required to be licensed by this part shall obtain a license authorizing the person to engage in that business prior to the commencement of business. All persons currently engaged in the business of selling, distributing, or handling tobacco products in this state, and required to be licensed by this part, shall apply for a renewal of the license on or before May 31 of each year.
  2. (b) The application for license shall be made on blanks furnished by the commissioner. The application blanks shall show the following:
    1. (1) Name of applicant;
    2. (2) Street address and telephone number of applicant;
    3. (3) City or town in which the applicant's place of business is to be located;
    4. (4) Kind or nature of business to be conducted;
    5. (5) Sufficient information to demonstrate that the applicant has complied with all pertinent registration and tax statutes, as provided by law, including, but not limited to, the sales and use, business, franchise and excise taxes. The form and content of the information required by this subdivision (b)(5) shall be specified by the commissioner;
    6. (6) Such other and further information as the commissioner may require;
    7. (7) Name, address and telephone number of the resident agent, as defined by § 67-4-1001; and
    8. (8) Name, address and telephone number of a registered agent.
  3. (c)
    1. (1) Application for licenses shall be accompanied by the following fees:
      1. (A) Manufacturing distributor—Two hundred dollars ($200) for each plant or processing location;
      2. (B) Tobacco manufacturer's warehouse—Two hundred dollars ($200) for each storage warehouse;
      3. (C) Wholesale dealer and jobber—Two hundred dollars ($200) for each separate sale warehouse;
      4. (D) Tobacco distributor—One hundred dollars ($100) for each secondary wholesale location where tobacco products are received or ordered for delivery to other than the ultimate consumer; and
      5. (E) Cigarette rolling machine operator — Five hundred dollars ($500) for each cigarette rolling machine purchased or leased for use, or controlled, possessed or maintained by the cigarette machine operator.
      Backlinks (1)
    2. (2)
      1. (A) Upon receipt of the application referenced in subsection (b), together with the fee imposed by this subsection (c), the commissioner, upon the commissioner's approval of the application, shall issue within a reasonable time to the applicant the necessary licenses to engage in the business named in the application.
      2. (B) The licenses shall expire on May 31 of each year.
      3. (C) If the license is mutilated, lost, or destroyed, a duplicate will be issued upon application, accompanied by a fee of twenty-five dollars ($25.00).
      4. (D) Applications for renewal of a license may be denied for failure of the licensee to pay the tax or taxes imposed by this part or for the violation of any provision of this part or any rule or regulation promulgated by the commissioner under the authority vested in the commissioner.
  4. (d) Any person who engages in any business or activity for which a license is required under this part without obtaining a license to do so, or who fails to file an application for renewal of a license before expiration of the current license, is subject to a specific penalty in the amount of the license fee for each month or part of a month during which the activity or failure continues. In addition to this specific penalty, the commissioner may impose a penalty of no more than two hundred fifty dollars ($250) a day for each day during which the activity or failure occurs or continues. This discretionary penalty may also be imposed upon a person to whom a license has been issued, if the person continues to engage in the business or activity after receiving notice the license is revoked or suspended by the commissioner.
  5. (e) Persons duly and properly licensed to sell tobacco products in this state may not knowingly sell, lend, or exchange such products to, with or from any person required to be licensed who is not so licensed, or who is improperly licensed.
  6. (f)
    1. (1) Except as provided in subdivision (f)(2), the commissioner shall require all applicants for license, as required by subsections (a) and (b), including, but not limited to, persons licensed to engage in the business of a tobacco manufacturer's warehouse as defined by this part, to execute a bond with a surety company qualified to do business in this state as surety on the bond, payable to the state of Tennessee and conditioned upon the licensee paying the tax and affixing tax stamps to all packages or parcels of tobacco products used, sold, distributed or handled by such licensee and/or accounting for the distribution of such foreign stamped or other unstamped products authorized to be possessed under this part.
    2. (2) In lieu of a corporate surety on the bond required by this subsection (f), the commissioner may allow the wholesale dealer and jobber to secure such bond by depositing collateral in the form of a certificate of deposit as accepted and authorized by the banking laws of this state that has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner. Interest on any deposited certificate of deposit shall be payable to such wholesaler and jobber who has deposited it as collateral, or to such person as the wholesaler and jobber or the certificate may direct.
  7. (g) No license so issued shall be transferable and a separate license shall be required for each separate place of business and shall be prominently displayed in the place of business operated by the person to whom such license is issued.
  8. (h) Nonresidents selling and/or delivering tobacco products in Tennessee shall be privileged to obtain licenses, purchase and affix tobacco stamps, pay tax, obtain statutory discounts and perform all other acts relating to selling and/or delivering tobacco products in a like manner and under the same conditions as Tennessee resident licensees; provided, that similar privileges are afforded to residents of this state in the applicant's state of domicile.
  9. (i) Every person making application for license pursuant to this section shall designate, in writing, on forms provided by the commissioner, a resident agent. The resident agent shall be the dealer's agent for any of the acts authorized pursuant to § 67-4-1006. The designated resident agent shall be required, whether or not the dealer maintains a warehouse or other place of business in this state.
  10. (j) All information provided by licensees pursuant to subsection (b) shall remain current. Licensees shall notify the commissioner, in writing, within ten (10) days of any change in the information.
Backlinks (6)
History (17)
  • Acts 1937, ch. 133, § 2
  • 1939, ch. 201, § 1
  • 1941, ch. 78, § 1
  • C. Supp. 1950, § 1233.3 (Williams, § 1213.2)
  • Acts 1965, ch. 118, § 6
  • 1968, ch. 623, § 4
  • 1971, ch. 91, § 1
  • 1972, ch. 457, § 4
  • 1973, ch. 236, §§ 2, 3
  • 1976, ch. 440, § 3
  • 1977, ch. 352, § 3
  • T.C.A. (orig. ed.), §§ 67-3113 — 67-3116
  • Acts 1984, ch. 536, § 2
  • 1985, ch. 314, § 1
  • 1988, ch. 676, § 1
  • 2008, ch. 1090, §§ 1-9
  • 2012, ch. 1066, § 6.
§ 67-4-1016. License revocation or suspension.
  1. (a)
    1. (1) The commissioner may revoke any license issued under this part upon the failure of the licensee to pay the tax or taxes imposed by this part, or for the violation of any provision of this part or any rule or regulation promulgated by the commissioner under the authority vested in the commissioner.
    2. (2) The commissioner shall, before revoking any license, notify the licensee, by letter addressed and mailed to the last known address of the licensee, and shall afford the licensee an opportunity to be heard in person or by counsel in reference to the license. This notice shall be mailed at least ten (10) days prior to a date set for hearing.
    3. (3) Pending final determination of the notice or hearing, the licensee may continue to buy, sell and distribute tobacco products. The commissioner may require bond with good and solvent surety in such amount as may be deemed necessary to protect the state's interest.
    4. (4) The commissioner has the power to issue subpoenas as provided in § 67-4-1017.
    5. (5) The hearing authorized under this subsection (a) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021.
  2. (b)
    1. (1) At such time and place of the hearing so designated, or at any time and/or place to which the commissioner, or the commissioner's duly authorized agent, representative or employee, may adjourn such hearing, the matters under consideration shall be gone into, and, after a full hearing the commissioner, or the commissioner's duly authorized agent, representative and/or employee, shall make such finding as, in the commissioner's opinion, the facts may warrant, and if the commissioner determines that the licensee has failed to pay the tax or taxes imposed by the terms of this part when due, or has violated any rule or regulation promulgated by the commissioner under the authority vested in the commissioner by the terms of this part, or has been guilty of a violation of any of this part, as charged, the license of such licensee shall be revoked; otherwise, the charges shall be dismissed, and the license shall continue in force unimpaired. If the commissioner finds that the licensee is guilty of the delinquency charged, but further finds that such violation by the licensee was unintentional or inadvertent, the commissioner, or the commissioner's duly authorized agent, representative or employee, may suspend the license of the licensee for a period not exceeding thirty (30) days; or may, if the licensee shall not previously have been found guilty of any delinquency by the commissioner under this part, or the dereliction charged be remedied by the licensee at or prior to the time of the hearing, dismiss the proceeding and charges against the licensee upon the payment by the licensee of all costs and fees incurred in holding and having the hearing.
    2. (2) The hearing authorized under this subsection (b) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021.
  3. (c) The ruling or order issued by the commissioner with reference to the revocation or suspension of any tobacco license may only be reviewed in the manner and in accordance with the procedure authorized under § 67-4-1021.
Backlinks (3)
History (9)
  • Acts 1929 (Ex. Sess.), ch. 22, § 1
  • Code 1932, § 1236
  • Acts 1937, ch. 133, § 3
  • C. Supp. 1950, § 1233.4 (Williams, § 1213.3)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 327, §§ 3-5
  • 1968, ch. 623, § 5
  • T.C.A. (orig. ed.), §§ 67-3117, 67-3119, 67-3121.
§ 67-4-1017. License proceedings — Witnesses.
  1. (a) The commissioner has the power to issue subpoenas in the name of the state of Tennessee requiring the attendance of such witnesses as may be designated in the subpoena at the place or places, at either the office of the commissioner at Nashville, or at any place in the county in which the licensee has the licensee's place of business, and at such time or times as may be designated in such subpoena.
  2. (b) The licensee has the right to require the commissioner to issue any such subpoena requiring the attendance of any such witnesses as may be desired by the licensee.
  3. (c) All such subpoenas shall be served by the sheriff or any deputy of the county where the subpoena is directed, and such sheriff or deputy shall be entitled to the same fees for serving such subpoenas as in the case of serving subpoenas in civil cases from any court of record.
  4. (d) The commissioner, or any authorized agent, representative or employee, is empowered to administer oaths to any person so summoned or to any person giving evidence at the hearing.
  5. (e) Any person so summoned shall give all such evidence relevant to the matter under investigation as may be required by the commissioner or the commissioner's authorized agent, representative or employee, or as may be required by the licensee.
  6. (f) The usual fees and mileage expenses allowed witnesses in cases in a court of record shall be allowed any witnesses so summoned.
Backlinks (2)
History (3)
  • Acts 1929 (Ex. Sess.), ch. 22, § 1
  • Code 1932, §§ 1234-1236
  • T.C.A. (orig. ed.), § 67-3118.
§ 67-4-1018. License proceedings — Costs.
  1. (a) All witness fees, mileage expenses and all fees of sheriffs for serving any notices or subpoenas shall be taxed as costs by the commissioner, the commissioner's authorized agent, representative or employee.
  2. (b) All costs and fees for witnesses and/or sheriffs shall be advanced or collected as provided in the case of witnesses attending upon cases in courts of record, and the service of subpoenas requiring their attendance and testimony.
  3. (c) If, upon the hearing, the licensee shall be found by the commissioner, or the commissioner's authorized agent, representative or employee, to be guilty of the delinquency charged, all of the costs in this section shall be taxed and charged against the licensee, but if the charge against such licensee shall be dismissed, then such costs shall be paid by the commissioner out of the funds in the commissioner's hands collected under this part, after approval by the commissioner, and shall be and constitute lawful expenditures under this section.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 22, § 1
  • Code 1932, §§ 1237, 1238
  • impl. am. Acts 1937, ch. 133, § 3
  • T.C.A. (orig. ed.), § 67-3120.
§ 67-4-1019. Unstamped tobacco products — Confiscation — Exceptions.
  1. (a)
    1. (1) Except as otherwise provided in this part, any tobacco products that are required to have Tennessee revenue stamps affixed to the products, and that are found any place in this state without the proper stamps affixed to the tobacco products, or without applicable Tennessee tobacco tax having been paid, as required by this part, unless such products shall be in the possession of a person or firm currently licensed, qualified and authorized to possess such tobacco products, or unless they shall be in course of transit from and consigned to a person or firm currently licensed, qualified and authorized to possess such tobacco products, or in the possession of a common carrier complying with this part, are declared to be contraband goods, and may be seized by the commissioner, the commissioner's agents or employees, or by any peace officer of this state authorized by the commissioner to do so.
    2. (2) Duly licensed wholesale dealers and jobbers not appointed affixing agents who in their normal course of business receive from out of state untaxed tobacco products may, upon written authorization from the commissioner, have such untaxed tobacco products in their possession for a period not to exceed twenty-four (24) hours, exclusive of Saturdays, Sundays and legal holidays, before being required to have proper stamps affixed to those tobacco products, or applicable Tennessee tobacco tax paid on those tobacco products by an authorized tobacco tax affixing agent.
    3. (3) Under no condition may such tobacco products be sold, used or otherwise disposed of before having tax stamps affixed on those tobacco products or applicable tobacco tax paid on those tobacco products by an authorized tobacco tax affixing agent.
    4. (4) All such tobacco products requiring tax to be paid on the tobacco products and found in the possession of any person shall be presumed to have been held by the person for more than twenty-four (24) hours, unless proof can be shown to the contrary.
    5. (5) This section shall not apply to persons possessing no more than twenty (20) packages of twenty (20) cigarettes each, or cigars in an amount not exceeding fifty (50) cigars, or other tobacco products with retail value of not more than two dollars ($2.00) that have been brought into the state by the person; and in all instances of possession in excess of the limited quantities enumerated, the foregoing provision for exception of any cigarettes, cigars or other tobacco products shall not be applicable and any and all such products, including those quantities excepted on which the applicable Tennessee tobacco tax has not been paid, shall be deemed to be contraband and may be seized as provided in this section.
  2. (b)
    1. (1) Every person who transports within this state cigarettes not bearing Tennessee revenue stamps or any other tobacco products upon which the Tennessee tax imposed by this part has not been paid shall be presumed to be transporting such products in violation of this part, and such products and any vehicles used to transport them shall be deemed contraband. Such products shall be confiscated and disposed of as provided for in this part. Such vehicles may likewise, in the discretion of the commissioner, be confiscated and disposed of as provided for in this part.
    2. (2) This presumption may be rebutted by the person transporting the tobacco products; provided, that the person has in the person's actual possession invoices or delivery tickets for such products that shall show the true name and exact address of the consignor or seller, the true name and exact address of the consignee or purchaser, and the quantity and brands of such products so transported.
    3. (3) If the tobacco products are consigned to or purchased by any person in Tennessee, such purchaser or consignee must be a person who is authorized by this part to possess such tobacco products in this state; and if the invoice or delivery ticket specifies that the tobacco products are to be delivered to any person in any other state or jurisdiction, such person must be authorized by the laws of such other state or jurisdiction to receive or possess tobacco products on which the taxes imposed by such other state or jurisdiction have not been paid.
    4. (4) The presumption provided for in this subsection (b) may not be overcome if the invoice or delivery ticket is false, or if the purchaser, as indicated by the name and/or address shown on the invoice or delivery ticket, is not authorized by the laws of the receiving state to possess such tobacco products.
    5. (5) The commissioner or the commissioner's duly authorized agent is authorized to take custody and retain any such products and any vehicle being used to transport them until the correctness of any invoices or delivery tickets provided for in this subsection (b) can be determined by the commissioner, either before or at a hearing, as provided for in this part.
  3. (c) In addition to any other penalties provided for in this part, any person unlawfully transporting or unlawfully in possession of cigarettes or other tobacco products shall, in the discretion of the commissioner, be liable for a penalty of not more than twenty-five dollars ($25.00) for each individual carton of cigarettes and not more than fifty dollars ($50.00) for each individual box or carton of other tobacco products so transported or possessed by the person, the penalty to be collected as other tax and penalties.
  4. (d)
    1. (1) After qualifying with and receiving authorization from the commissioner, wholesale dealers and jobbers and manufacturing distributors licensed under this part may have in their possession tobacco products on which the Tennessee tax has not been paid to fulfill ordinary export requirements and to provide for their sale to armed forces installations, and veterans administration hospitals, where such products are sold only to patients registered and admitted to veterans administration hospitals.
    2. (2) To provide for its ordinary export requirements, and after qualifying and receiving authorization from the commissioner, a Tennessee licensed wholesaler dealer and jobber or tobacco distributor servicing stores, vending machines or other retail businesses located in another state may possess, in storage warehouses in this state or in vehicles in the process of transporting, foreign stamped or other such tobacco products in an amount authorized by the commissioner, if acquired from a Tennessee appointed and bonded affixing agent and that bear, if required by the commissioner, the tax stamps of the state in which the product is to be sold.
    3. (3) The commissioner is empowered, if the commissioner deems it necessary, to limit such authorizations by designating only a state or specified states from which these licensees may possess such foreign stamped or other unstamped products, and in what maximum quantity.
    4. (4) Also, upon qualifying and receiving permission from the commissioner, any tobacco dealer licensed and domiciled in another state may obtain from a Tennessee appointed affixing agent foreign stamped or other unstamped tobacco products and transport them to the dealer's business location in the foreign state, but such dealer must have in the dealer's possession an invoice showing the true name and exact address of the consignor or seller, the true name and exact address of the consignee or purchaser, the quantity and brands of the cigars or cigarettes transported, and any other information that the commissioner may require.
    5. (5) A person licensed to engage in the business of a tobacco manufacturer's warehouse, as defined by this part, is authorized to have in the person's possession foreign stamped or other unstamped tobacco products for the purpose of supplying properly licensed Tennessee wholesale dealers and jobbers or for export purposes.
  5. (e)
    1. (1) Every person, as defined by this part, specifically including, but not limited to, persons licensed to engage in the business of a tobacco manufacturer's warehouse as defined by this part, authorized by this part to possess foreign stamped or other unstamped tobacco products, may be required to account for the distribution of such foreign or other unstamped products, and shall be unconditionally liable for the tax imposed by this part for each and every foreign or other unstamped tobacco product removed from inventory and not sold as above defined or exported from this state.
    2. (2) Every person authorized by this part to possess foreign stamped or other unstamped tobacco products may, however, be permitted to reduce the person's inventory by the amount of any unstamped tobacco product loss due to theft occurring in connection with a breaking and entering upon the person's premises without being subjected to tax on such amount, if acceptable proof is supplied to the department, as soon as possible after the loss occurs reflecting that the theft was promptly reported to the proper law enforcement agency.
    3. (3) The amount of inventory reduction acknowledged by the department as being supported by proof of loss satisfactory to the commissioner shall be evidenced by a certificate furnished to such person following receipt of required proof, and such certificate shall be retained by the person as authorization for the inventory reduction.
Backlinks (1)
History (15)
  • Acts 1937, ch. 133, § 6
  • C. Supp. 1950, § 1238.3 (Williams, § 1213.6)
  • Acts 1963, ch. 327, § 1
  • 1965, ch. 118, § 4
  • 1967, ch. 98, § 4
  • 1968, ch. 623, § 2
  • 1970, ch. 407, § 1
  • 1972, ch. 447, §§ 2, 3
  • 1972, ch. 457, § 3
  • 1973, ch. 236, § 1
  • 1977, ch. 352, § 1
  • T.C.A. (orig. ed.), § 67-3105
  • Acts 1985, ch. 314, § 2
  • 1986, ch. 598, § 1
  • 1990, ch. 962, § 1.
§ 67-4-1020. Property deemed contraband — Seizure.
  1. (a)
    1. (1) All manufactured tobacco products upon which all applicable tobacco taxes have not been paid and that are or shall be owned or possessed by any person in avoidance, evasion or violation of any of the provisions of this part, are declared to be contraband goods and may be seized by the commissioner, or any duly authorized representative, agent or employee of the department, without a warrant, and such goods shall be delivered to the department for sale at public auction to the highest bidder after due advertisement.
    2. (2) The department, before delivering any of such goods so seized, shall require the purchaser to affix the proper amount of stamps to any cigarettes and pay the applicable tax on any other tobacco products so seized.
    3. (3) Proceeds of all such seizures shall be paid by the commissioner into the state treasury, and ten percent (10%) of such proceeds shall be set aside as expenses for the administration of this section.
  2. (b) Any vehicle that may be used for transporting, for the purposes of distribution, gift or sale, any unstamped tobacco products shall likewise be subject to confiscation and sale in the same manner as provided in subsection (a), unless such vehicle is being used to transport such products in a manner deemed lawful as otherwise provided in this part. Any unstamped tobacco products found in any vehicle, except vehicles lawfully engaged in transporting such unstamped products, shall be prima facie evidence that such were intended to be used for gift, sale or distribution.
  3. (c) This section shall likewise apply to any coin-operated vending machine in which any tobacco products are found, stored or possessed with the tobacco products bearing a counterfeit or bogus tobacco tax stamp or any unstamped tobacco products, such vending machine and tobacco products are declared to be contraband property and shall be subject to confiscation and sale as provided for in this part. Any such vending machine found containing such tobacco products with counterfeit or bogus stamps or containing any unstamped tobacco in such vending machine shall be prima facie evidence that it was there for gift, sale or distribution.
  4. (d)
    1. (1) Any tobacco products found, owned, stored or possessed by any person bearing a counterfeit or bogus tobacco tax stamp are likewise declared to be contraband property, and shall be subject to confiscation and sale as provided by this section. Any such tobacco products shall be prima facie evidence that they were owned, stored or possessed for gift, sale or distribution.
    2. (2) Likewise, any unstamped tobacco products found, owned, stored or possessed at the same place or at the same time with any other tobacco products bearing counterfeit or bogus tax stamps are likewise declared to be contraband property and shall be subject to confiscation and sale as provided by this section. Such unstamped tobacco products shall be prima facie evidence that they were owned, stored or possessed for gift, sale or distribution.
  5. (e)
    1. (1) The possession of any counterfeit or bogus stamps, including any article, device, meter, mechanical or otherwise, that is used for the purpose of or in connection with the counterfeiting of tobacco tax stamps on tobacco products, or the unauthorized possession of a tobacco or cigarette stamp tax machine, meter, or ink that has been approved by the department for the use with the lawful tobacco tax stamps, is declared to be contraband property.
    2. (2) The unstamped tobacco products shall be subject to seizure and confiscation, and sale in the manner as other property provided by this section.
    3. (3) Any person violating this subsection (e) shall, upon conviction, be punished in accordance with the penalty prescribed under § 67-4-1007.
  6. (f) Any money or coins found or recovered in any cigarette or tobacco vending machine, which machine has been ordered forfeited to the state of Tennessee under this part, shall likewise be forfeited to the state of Tennessee and the money paid into the state treasury by the commissioner.
  7. (g) If, incidental to a confiscation of contraband as defined by this section, there is discovered any intoxicating liquor deemed to be held or transported illegally within the purview of § 57-3-411, § 57-9-201 or § 57-9-202, the confiscating officer is empowered and required to seize such liquor, notwithstanding the fact that such officer may not otherwise be empowered to take such action under § 57-3-411, § 57-9-201 or § 57-9-202. Any intoxicating liquor seized pursuant to this subsection (g) shall be delivered promptly as provided by § 57-3-411, § 57-9-201 or § 57-9-202, as may be appropriate, to the alcoholic beverage commission for sale or disposition as contraband in accordance with title 57.
Backlinks (7)
History (9)
  • Acts 1937, ch. 133, § 7
  • 1937, ch. 311, §§ 1, 2
  • mod. C. Supp. 1950, § 1238.4 (Williams, § 1213.7)
  • Acts 1963, ch. 327, § 6
  • 1970, ch. 407, § 5
  • 1972, ch. 457, § 5
  • 1973, ch. 68, § 4
  • 1973, ch. 84, § 4
  • T.C.A. (orig. ed.), § 67-3123.
§ 67-4-1021. Contraband — Procedure after seizure.
  1. (a) In all cases of seizure of any tobacco products or other property subject to forfeiture under this part, the officer or other person making the seizure shall proceed as follows:
    1. (1)
      1. (A) Upon confiscation, or as soon thereafter as practicable, written notice shall be given by the department to the person from whom the confiscation was made, and to all others with a legal interest in the property confiscated who are either made known to the department or who, by a reasonable examination of public records of titles and liens, should have been discovered;
      2. (B) The notice shall state a description of the property confiscated, the reason for confiscation, the method for seeking recovery, the time limit for seeking recovery, and the result of failure to seek or obtain recovery by the designated method;
      3. (C) Such notice may be by personal delivery or by mail, either of which may be made to the last known address of the interested party;
    2. (2) All such property seized and confiscated under this part shall be sold at public sale by the department of general services, when the property has been turned over to it by the commissioner of revenue, as authorized by law under title 12, chapter 2, part 2;
    3. (3) In the case of any contraband property seized by any law enforcement officer of any incorporated municipality or of any county and turned over to the department of revenue for confiscation, there shall be paid to the municipality or to the county served by such officer fifty percent (50%) of the net proceeds thereof; and
    4. (4)
      1. (A) Any person claiming any property so seized as contraband goods may, within ten (10) days from the date of seizure, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250), made payable to the state of Tennessee, or upon executing a pauper's oath as required by law, file with the commissioner at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized;
      2. (B) The commissioner shall set a date for a hearing within ten (10) days from the day the claim is filed;
      3. (C) The commissioner is empowered to subpoena witnesses and compel their attendance at hearings authorized under this subdivision (a)(4);
      4. (D) All parties to the proceeding, including the person claiming such property, shall have the right to have subpoenas issued by the commissioner to compel the attendance of all witnesses deemed by such parties to be necessary for a full and complete hearing;
      5. (E) All witnesses shall be entitled to the witness fees and mileage provided by law for legal witnesses, which fees and mileage shall be paid as a part of the costs of such proceeding.
  2. (b) In any hearing convened upon proper petition of an interested party, the initial burden shall be upon the state to show by a preponderance of the evidence that the property in question was of such nature or was used in such manner as to be declared as contraband. Upon meeting this burden, the property shall be forfeited as provided by law, unless the claimant shall prove that the claimant is nevertheless qualified under this part, or otherwise, to recover the property in question.
  3. (c)
    1. (1) In the event the ruling of the commissioner is favorable to the claimant, the commissioner shall deliver to the claimant the tobacco products or property so seized.
    2. (2) If the ruling of the commissioner is adverse to the claimant, the sale of such contraband goods shall be by the department of general services as provided by subsection (a).
    3. (3) The expenses of storage, transportation, and other costs shall be adjudged as a part of the cost of the proceeding in such manner as the commissioner shall fix.
  4. (d) Pending any proceeding to recover any tobacco product, vending machine, vehicle, aircraft or boat seized under this part, the commissioner may order delivery of such item to any claimant who shall establish the claimant's right to immediate possession of the tobacco product, vending machine, vehicle, aircraft or boat, and who shall execute, with one (1) or more sureties approved by the commissioner, and deliver to the commissioner, a bond in favor of the state of Tennessee for the payment of a sum double the appraised value of the tobacco product, vending machine, vehicle, aircraft or boat as of the time of the hearing; and conditioned further, that if the tobacco product, vending machine, vehicle, aircraft or boat is not returned at the time of hearing, the bond shall stand in lieu of and be forfeited in the same manner as such tobacco product, vending machine, vehicle, aircraft or boat.
  5. (e)
    1. (1) The commissioner may personally hold such hearings as the commissioner may deem proper.
    2. (2) In addition to a personally held hearing, the commissioner is authorized to designate a hearing officer who may hold such hearings in the place of and in the absence of the commissioner.
    3. (3) Such hearing officer shall make findings of fact, conclusions of law and proposed order based on the hearing. If the commissioner concurs, the commissioner shall issue the order; or the commissioner may, upon review of the record, make such findings, conclusions and issue such order as in the commissioner's discretion the record justifies.
    4. (4) At all hearings provided for in this section, the commissioner shall provide a stenographer or court reporter to take a stenographic record of the evidence adduced at such hearing. The claimant or protestant shall be entitled to a copy of the stenographic record, upon application for the record, and upon paying the reasonable cost of the record to be fixed by the commissioner.
  6. (f) The action of the commissioner may be reviewed by petition for common law writ of certiorari, addressed to the chancery or circuit court of Davidson County, which petition shall be filed within ten (10) days from the date the order of the commissioner is made.
  7. (g)
    1. (1) Immediately upon the grant of the writ of certiorari, the commissioner shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause, which shall contain all the proof submitted before the commissioner.
    2. (2) All defendants named in the petition desiring to make defense shall answer or otherwise plead to the petition within ten (10) days from the date of the filing of the transcript, unless the time be extended by the court.
  8. (h)
    1. (1) The decision of the commissioner shall be reviewed by the circuit court solely upon the pleadings and the transcript of the proceedings before the commissioner, and neither party shall be entitled to introduce any additional evidence in the circuit court.
    2. (2) The confiscated goods shall not be sold pending such review, but shall be stored by the department until the final disposition of the case, unless bond has been posted as elsewhere provided in subsection (a).
  9. (i)
    1. (1) Within the discretion of the commissioner, the claimant may be awarded possession of the confiscated goods pending the decision of the circuit court under the petition of certiorari; provided, that the claimant shall be required to execute a bond payable to the state of Tennessee in an amount double the value of the property seized, the sureties to be approved by the commissioner.
    2. (2) The condition of the bond shall be that the obligors shall pay to the state, through the department, the full value of the goods or property seized, unless upon certiorari the decision of the commissioner shall be reversed and the property awarded to the claimant.
  10. (j)
    1. (1) Either party dissatisfied with the judgment or decree of the circuit court may, upon giving bond as required in other suits, appeal and have a reexamination, in the appellate court, of the whole matter of law and fact appearing in the record.
    2. (2) When any such appeal is made, the clerk of the circuit court in which such suit was pending shall include as a part of the record the original certified transcript of the proceedings had before the commissioner when identified by the trial judge instead of a bill of exceptions, which need not be made and filed.
    3. (3) The appeal shall be advanced upon the docket of the appellate court as one of such precedence, and heard as promptly as practicable.
  11. (k) If no claim is interposed, such tobacco products or other property shall be forfeited without further proceedings and the property shall be sold as provided in this section.
  12. (l) The procedure in subsection (j) is the sole remedy of any claimant, and no court shall have jurisdiction to interfere with the remedy by replevin, injunction, supersedeas or in any other manner.
  13. (m)
    1. (1) Whenever, in any proceeding under this section, a claim is filed for any vending machine, vehicle, aircraft or boat seized, as provided in this section, by an owner or other person asserting the interest of the owner, the commissioner shall not allow the claim, unless and until the claimant proves that:
      1. (A) The claimant has an interest in such property that the claimant acquired in good faith; and
      2. (B) The claimant had at no time any knowledge or reason to believe that the seized item was being or would be used in the violation of the laws of the United States or of this state relating to tobacco products.
    2. (2) Whenever, in any proceeding under this section, a claim is filed for any property seized, as provided in this section, by a person who is the holder of a security interest or other claim arising out of a contract or agreement, the commissioner shall not allow the claim, unless and until the claimant proves that the claimant has an interest in such property that the claimant acquired in good faith. An interest that is acquired in the ordinary course of business shall be presumed to be in good faith, unless the commissioner receives evidence that the holder of the security interest had knowledge, at the time the interest attached, of the intended illegal use of the vehicle or was a co-conspirator in furtherance of the illegal activity. A holder of a security interest that is other than a natural person shall be considered a co-conspirator for purposes of this section, if evidence shows that an officer, employee or agent of the holder acting within the scope of employment is a co-conspirator, and the holder either:
      1. (A) Has actual knowledge of the illegal activities of the officer, employee or agent from an individual other than the officer, employee or agent and fails to take appropriate action; or
      2. (B) Has failed to reasonably supervise or monitor the activities of the holder's officer, employee or agent.
    3. (3) In the event the interest of the owner is forfeited as provided in subdivision (m)(1) and the interest of the holder of a security interest is not forfeited as provided in subdivision (m)(2), the commissioner may, at the request of the holder of such interest, return the property to the holder for disposition in accordance with the applicable security agreement or other contract. If the commissioner does not return the property to the holder, the forfeiture shall be subject to the holder's interest.
    4. (4) An owner whose interest is forfeited after being arrested for or charged with any felony shall be ineligible to purchase the property from, or to bid at any sale of the property by, the commissioner or any seizing agency. The owner whose interest is forfeited after being arrested for or charged with any felony shall also be ineligible to redeem the property from, or to bid at any sale of the property by, any holder of a security interest acting pursuant to the agreement contract or title 47, chapter 9.
Backlinks (7)
History (12)
  • Acts 1937, ch. 133, § 7
  • 1937, ch. 311, §§ 1, 2
  • mod. C. Supp. 1950, § 1238.4 (Williams, § 1213.7)
  • Acts 1963, ch. 327, § 6
  • 1970, ch. 407, § 5
  • 1972, ch. 457, § 5
  • 1973, ch. 68, § 4
  • 1973, ch. 84, § 4
  • T.C.A. (orig. ed.), § 67-3123
  • Acts 1989, ch. 147, § 7
  • 1990, ch. 1037, § 3
  • 1998, ch. 594, § 1.
§ 67-4-1022. Drop shipments — Procedure.
  1. Every person engaged in the activity within this state of billing, collecting for, distributing or selling tobacco products through the device, plan, scheme, or artifice commonly known as the “drop shipment plan or system” shall make a complete and itemized report, giving the name and address of the purchaser within twenty-four (24) hours of the receipt or taking of the order, and shall pay the tax and affix the stamps on the tobacco products before delivery.
History (3)
  • Acts 1937, ch. 133, § 8
  • C. Supp. 1950, § 1238.5 (Williams, § 1213.8)
  • T.C.A. (orig. ed.), § 67-3110.
§ 67-4-1023. Liability for undelivered goods.
  1. Any common carrier transporting tobacco products to a point within this state who, for whatever reason, does not deliver to the consignee all of the tobacco products indicated on the bill of lading shall be liable for the tax imposed under this part on all nondelivered products, unless proof deemed satisfactory to the commissioner is furnished showing that the products were not sold or consumed in this state.
History (3)
  • Acts 1971, ch. 150, § 1
  • 1976, ch. 440, § 4
  • T.C.A., § 67-3127.
§ 67-4-1024. Violations — Criminal penalties.
  1. (a)
    1. (1) It is unlawful for any person to engage in the business of selling, distributing or handling tobacco products without the license required by this part, or after the license required by this part has been revoked, or for any person to violate any rule or regulation promulgated or prescribed by the commissioner under the authority vested in the commissioner by this part.
    2. (2) A violation of subdivision (a)(1) is a Class B misdemeanor.
  2. (b)
    1. (1) It is unlawful for any person to sell or to possess for the purpose of sale, gift, use or consumption, or to transport in violation of this part, any tobacco products to which the tax stamps are not affixed, where such stamps are required to be affixed under this part, and any other tobacco products upon which tax has not been paid in a manner other than through the affixation of tax stamps where, under this part, it is provided that it shall be paid in such other manner.
    2. (2) A violation of subdivision (b)(1) is a Class B misdemeanor.
    3. (3) Any person unlawfully having in such person's possession over twenty-five (25) cartons of unstamped cigarettes or over ten (10) boxes of cigars of fifty (50) cigars each in violation of any provisions of this part commits a Class E felony.
History (5)
  • Acts 1937, ch. 133, § 11
  • mod. C. Supp. 1950, § 1238.8 (Williams, § 1213.11)
  • Acts 1970, ch. 407, § 4
  • T.C.A. (orig. ed.), § 67-3122
  • Acts 1989, ch. 591, §§ 97, 112.
§ 67-4-1025. Distribution of revenue.
  1. (a) All of the taxes on tobacco products collected under this part shall be applied in the following manner:
    1. (1) Four percent (4%) of the amount so collected shall be allowed as the expense for carrying out this part;
    2. (2) The amount of eighty-two thousand five hundred dollars ($82,500) shall be used annually to provide the special sinking fund to pay the principal and interest on the Tennessee rural public school building and repair bonds;
    3. (3) The amount of two hundred twenty-five thousand dollars ($225,000) shall be used annually to provide the special sinking fund for the payment of the principal and interest of the University of Tennessee building bonds; and
    4. (4) The remainder shall be applied to and become a part of the general state school fund created by title 49, chapter 3.
  2. (b) The revenue from the tax on cigarettes shall be used exclusively for public education, grades one through twelve (1-12), subsection (a) to the contrary notwithstanding. All revenue collected under this part shall be distributed to the respective public school systems of the state for use in grades one through twelve (1-12) in accordance with the distribution formula governing public school systems, grades one through twelve (1-12).
  3. (c) The revenues collected from the fee levied in § 67-4-1004(b) shall be allocated to the department for the enforcement and administration of the “Unfair Retailer's Cigarette Sales Law,” compiled in title 47, chapter 25, part 3.
  4. (d) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the increase in the tax rate from ten (10) mills to three cents (3¢) on each cigarette shall be deposited in the education trust fund created by title 49, chapter 3; provided, that an amount of twenty-one million dollars ($21,000,000) of that cigarette tax revenue shall be allocated to the department of agriculture's Tennessee agriculture enhancement program; provided, however, that in the fiscal year beginning July 1, 2009, the amount of sixteen million three hundred thousand dollars ($16,300,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act; and provided, further, that in the fiscal year beginning July 1, 2010, the amount of ten million dollars ($10,000,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act.
  5. (e) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the additional tax rate of one-tenth of one cent (0.1¢) on each cigarette imposed by § 67-4-1004(d) shall be deposited in the trauma system fund created by the Tennessee Trauma Center Funding Law of 2007, compiled in title 68, chapter 59. Those funds shall be distributed as required by title 68, chapter 59.
Backlinks (2)
History (23)
  • Acts 1937, ch. 133, §§ 4, 13
  • 1937, ch. 201, § 1
  • 1937, ch. 295, § 1
  • 1937 (3rd Ex. Sess.), ch. 7, § 1
  • 1939, ch. 63, § 1
  • 1939, ch. 202, § 1
  • mod. C. Supp. 1950, §§ 1238.1, 1238.10 (Williams, §§ 1213.4, 1213.13)
  • Acts 1951, ch. 60, §§ 1, 2 (Williams, § 1213.4b)
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 34, § 1
  • 1965, ch. 118, § 2
  • 1967, ch. 98, § 2
  • 1969, ch. 250, §§ 1, 2, 5
  • 1971, ch. 58, § 1
  • 1972, ch. 457, § 1
  • 1976, ch. 440, § 2
  • T.C.A. (orig. ed.), §§ 67-3102, 67-3124
  • Acts 1984, ch. 832, § 16
  • 1985, ch. 179, § 8
  • 2007, ch. 368, §§ 3, 5
  • 2009, ch. 531, § 11
  • 2010, ch. 1134, § 64.
§ 67-4-1026. Packaging to comply with federal laws and regulations.
  1. (a) For the purposes of this section, “package” means a pack, carton, or container of any kind in which cigarettes are offered for sale, sold, or otherwise distributed, or intended for distribution, to consumers.
  2. (b) No stamp may be affixed to, or made upon, any package of cigarettes, if:
    1. (1) The package differs in any respect with the requirements of the Federal Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.), for the placement of labels, warnings, or any other information upon a package of cigarettes that is to be sold within the United States;
    2. (2) The package is labeled “For Export Only,” “U.S. Tax Exempt,” “For Use Outside U.S.,” or similar wording indicating that the manufacturer did not intend that the product be sold in the United States;
    3. (3) The package, or a package containing individually stamped packages, has been altered by adding or deleting the wording, labels, or warnings described in subdivision (b)(1) or (b)(2);
    4. (4) The package has been imported into the United States after January 1, 2000, in violation of 26 U.S.C. § 5754; or
    5. (5) The package in any way violates federal trademark or copyright laws.
  3. (c) Any person who sells or possesses for the purpose of sale a cigarette package to which is affixed a tax stamp in violation of subsection (b) commits a Class E felony.
  4. (d) Notwithstanding any other law, the commissioner shall revoke any license issued under this part to any person who sells or holds for sale a cigarette package to which is affixed a tax stamp in violation of subsection (b).
  5. (e) Notwithstanding any other law, the commissioner shall seize and destroy, or sell to the manufacturer, only for export, packages that do not comply with subsection (b).
  6. (f) A violation of subsection (b) is an unfair and deceptive act or practice under the Consumer Protection Act, § 47-18-104.
History (1)
  • Acts 1999, ch. 280, § 1.
§ 67-4-1027. Request for information about cigarette units — Penalty for noncompliance.
  1. (a)
    1. (1) The commissioner of revenue may issue to any tobacco distributor or wholesaler licensed pursuant to § 67-4-1015 a request for information about cigarette units sold in Tennessee.
    2. (2) Any tobacco distributor or wholesaler licensed pursuant to § 67-4-1015 shall comply with a request for information issued by the commissioner of revenue pursuant to subdivision (a)(1) within thirty (30) days of receipt.
    3. (3) “Cigarette” has the same meaning as ascribed in § 47-31-102.
    4. (4) “Units sold” has the same meaning as ascribed in § 47-31-102.
  2. (b) The commissioner of revenue may, after providing notice and an opportunity for a hearing under § 67-1-105, suspend or revoke the license of any tobacco distributor or wholesaler or impose a civil penalty or other sanctions for failure to comply with this section. The commissioner may attempt to resolve proposed sanctions through an informal conference before a hearing is held under § 67-1-105.
  3. (c) The commissioner of revenue may from time to time make, promulgate, amend and rescind such rules as are necessary to carry out this section. All rules provided for in this part shall be adopted, promulgated and contested as provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
History (1)
  • Acts 2001, ch. 113, § 1.
§ 67-4-1028. Disclosure of information relevant to enforcement of Tobacco Manufacturer's Escrow Fund Act.
  1. (a) Notwithstanding any law to the contrary, the commissioner shall, upon request, disclose to the attorney general and reporter, or any attorney working under the attorney general and reporter's supervision and control, information obtained by the commissioner that is relevant to the enforcement of the Tennessee Tobacco Manufacturers' Escrow Fund Act of 1999, compiled in title 47, chapter 31. The commissioner, the attorney general and reporter, or any attorney working under the attorney general and reporter's supervision and control, may disclose information provided under this section that may otherwise be confidential:
    1. (1) In discharge of the duty to enforce or defend this part or the Tennessee Tobacco Manufacturers' Escrow Fund Act of 1999;
    2. (2) In the course of any litigation, arbitration, or proceeding related to the Tennessee Tobacco Manufacturers' Escrow Fund Act of 1999, the Tobacco Master Settlement Agreement, or the NPM Adjustment Settlement Agreement; or
    3. (3) In complying with provisions in the NPM Adjustment Settlement Agreement related to a data clearinghouse.
    Backlinks (1)
  2. (b) Any tobacco sales data provided by another state, a tobacco product manufacturer, or other person or entity to a data clearinghouse pursuant to the NPM Adjustment Settlement Agreement that is also provided to the commissioner pursuant to that agreement, shall be treated as confidential tax information as defined in § 67-1-1701. This subsection (b) only applies to information received by the commissioner solely as a result of the NPM Adjustment Settlement Agreement.
History (3)
  • Acts 2002, ch. 551, § 1
  • 2008, ch. 763, § 1
  • 2014, ch. 749, § 5.
§ 67-4-1029. Delivery sales of cigarettes — Enforcement.
  1. (a) As used in this section:
    1. (1) “Cigarette” has the same meaning as in § 47-31-102; and
    2. (2) “Person” means and includes every individual, partnership, firm, association, corporation, limited liability company, joint-stock company, state, political subdivision, Native American tribe, tribal government or subdivision, or any other entity, group, or syndicate.
  2. (b) Except for sales to licensed wholesale dealers and jobbers, it is unlawful for any person to cause cigarettes either ordered by or through or purchased by or through the mail, a delivery service, the internet, telephone, or some other electronic method to be shipped or transported to any person in this state without such products having the appropriate Tennessee tax paid by a licensed wholesale dealer and jobber pursuant to the rates set forth in §§ 67-4-1004 and 67-4-1005.
  3. (c) After becoming a licensed wholesale dealer and jobber pursuant to § 67-4-1015, the wholesale dealer and jobber may sell cigarettes to state retail dealers after applying the appropriate tax stamp to all packs of cigarettes sold, and after paying the appropriate tobacco tax on roll your own tobacco products.
  4. (d) It is unlawful for a wholesale dealer and jobber or a distributor to sell cigarettes directly to a consumer located within the state.
  5. (e) Retail dealers may receive and sell directly to state consumers cigarettes, including roll your own tobacco products, provided that a wholesale dealer and jobber has paid the Tennessee tobacco tax on the products.
  6. (f) In addition to any act that may be taken by the commissioner to enforce this section, the attorney general and reporter may bring an action to prevent or restrain violations of this section by any person, or any person controlling such person. Such action may be brought in Davidson County circuit or chancery court or any competent jurisdiction in the county where the alleged violation of this part took place or is about to take place, or in a county in which such person resides, conducts, transacts or has transacted business, or in the county in which such person can be found.
  7. (g) In addition to other remedies available pursuant to law, regulation, or rule, the attorney general and reporter may also seek the following:
    1. (1) Orders and statutory injunctions to prevent violations of this section. Such orders and injunctions shall be issued without bond being given by the state, and shall be statutory injunctions requiring a substantial showing that the nonmoving party is violating or has violated this section. In seeking such orders and injunctions, the attorney general and reporter is not required to show a likelihood of irreparable harm;
    2. (2) An order temporarily or permanently revoking a license or certificate authorizing the person to engage in business in this state;
    3. (3) A civil penalty of up to five thousand dollars ($5,000) for each violation of this section. For purposes of this subdivision (g)(3), each shipment or transport of cigarettes constitutes a separate violation; or
    4. (4) A civil penalty of up to ten thousand dollars ($10,000) for each and every knowing violation of the terms of an injunction or order issued under this section.
  8. (h) When considering the amount of civil penalties to be awarded under this section, the court should give weight and consideration to the following factors:
    1. (1) Whether the violation is intentional;
    2. (2) The good or bad faith of the violator;
    3. (3) Whether the person engaged in the prohibited act has violated any laws, regulations or rules relating to tobacco;
    4. (4) The violator's ability to pay;
    5. (5) The amount, number, volume, weight, cost, or other measure of cigarettes involved in the violation;
    6. (6) The number of packages or mailings involved in the violation;
    7. (7) Whether the violation is an isolated act or part of a sequence or series of violations;
    8. (8) The potential injury to the public;
    9. (9) The public's interest in eliminating the benefits derived by the violators from the violations; and
    10. (10) The need to deter future violations.
  9. (i) In any successful action initiated by the attorney general and reporter, the court shall order reimbursement to the attorney general and reporter for the reasonable costs and expenses of investigation and prosecution of actions under this section, including attorneys' fees.
  10. (j) Nothing in this section shall be construed to directly or indirectly modify or amend any aspect of any provisions of the Tennessee Tobacco Manufacturers Escrow Fund Act of 1999, compiled in title 47, chapter 31, the related provisions regarding the tobacco settlement funds, compiled in part 26 of this chapter, or any provisions related to civil penalties not contained in this section.
  11. (k) Unless otherwise expressly provided herein, the remedies and penalties provided by this section are cumulative and supplemental to each other and to the remedies and penalties available under any other laws, regulations or rules.
History (2)
  • Acts 2005, ch. 388, §§ 2-4
  • 2014, ch. 749, § 6.
§ 67-4-1030. Refund of eligible bad debt credit.
  1. (a) The commissioner is empowered and directed to refund the amount of any eligible bad debt credit incurred by a manufacturing distributor or wholesale dealer and jobber of tobacco products. No amount shall be refunded unless the debt has been found to be worthless and actually charged off for federal income tax purposes. If the taxpayer receives a refund pursuant to this section arising from any bad debt so charged off that is thereafter in whole or in part paid to the manufacturing distributor or wholesale dealer and jobber, the amount so paid shall be included in the first return filed after the collection and the tax paid accordingly.
  2. (b) For purposes of this section, “eligible bad debt credit” means the taxes attributable to any portion of a debt arising from a sale of tobacco products subject to tax under this part that is not otherwise deductible or excludable, that has become worthless or uncollectible, and that has been actually charged off for federal income tax purposes. A bad debt shall not include any interest on the wholesale price of a tobacco product, uncollectible amounts of property that remain in the possession of the manufacturing distributor or the wholesale dealer and jobber until the full purchase price is paid, expenses incurred in attempting to collect any account receivable or any portion of the debt recovered, accounts receivable that have been sold to a third party, or repossessed property.
  3. (c) Any claim for an eligible bad debt credit under this section shall be submitted as a claim for refund supported by the following:
    1. (1) A copy of the original invoice;
    2. (2) Evidence that the tobacco products described in the invoice were delivered to the person who ordered them;
    3. (3) Evidence that the person who ordered and received the tobacco products did not pay the manufacturing distributor or the wholesale dealer and jobber for the tobacco products and that the manufacturing distributor or the wholesale dealer and jobber used reasonable collection practices in attempting to collect the debt; and
    4. (4) Evidence that the debt was written off for federal tax purposes.
History (1)
  • Acts 2006, ch. 1019, § 48.
§ 67-4-1031. Reconciliation of tax on cigarettes produced by cigarette rolling machines.
  1. A tax shall be levied on the consumer of cigarettes produced through the use of a cigarette rolling machine at the rate imposed by § 67-4-1004, except that § 67-4-1004(b) shall not apply to such cigarettes. Such tax shall be reduced by the amount of state excise tax paid by the cigarette rolling machine operator pursuant to § 67-4-1005 for the purchase of tobacco products used to produce such cigarettes. A cigarette rolling machine operator shall calculate the amount of tax applicable to the cigarettes produced through the use of a cigarette rolling machine and shall remit such amount to the department with the requisite tax forms.
Backlinks (1)
History (1)
  • Acts 2012, ch. 1066, § 7.
§ 67-4-1032. Cigarette rolling machine operators.
  1. (a) On and after October 1, 2013, no cigarette rolling machine operator shall:
    1. (1) Use, offer for use, or allow to be used in its cigarette rolling machines any tobacco other than roll-your-own tobacco that is currently listed on the directory maintained by the commissioner pursuant to § 67-4-2602;
    2. (2) Possess any loose tobacco other than roll-your-own tobacco that is currently listed on the directory maintained by the commissioner pursuant to § 67-4-2602;
    3. (3) Possess more than sixteen ounces (16 oz.) per cigarette rolling machine of loose tobacco of any brand within a directory-approved roll-your-own brand family at any given time; or
    4. (4) Accept or allow the operator's cigarette rolling machine to be used to process cigarettes with tobacco that was not first purchased or obtained from the cigarette rolling machine operator.
  2. (b)
    1. (1) Any cigarette rolling machine purchased or leased for use, or controlled, possessed or maintained by a cigarette rolling machine operator must contain a secure meter that:
      1. (A) Counts the number of cigarettes made, manufactured, or fabricated by the machine; and
      2. (B) Cannot be altered by the cigarette rolling machine operator.
    2. (2) Upon request by the commissioner, a cigarette rolling machine operator shall provide the information contained on the secure meter. The cigarette rolling machine operator shall maintain the information contained on the secure meter for a period of seven (7) years from the date of each transaction.
  3. (c) In addition to or in lieu of any other civil or criminal remedy provided by law:
    1. (1) The commissioner may revoke or suspend a license issued to a cigarette rolling machine operator under this part if the cigarette rolling machine operator has violated this section, or any rule adopted pursuant to this section, as provided by § 67-4-1016 and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; and
    2. (2) For each violation of this section, or any rule adopted pursuant to this section, the commissioner may impose a civil penalty in an amount not to exceed the greater of five hundred percent (500%) of the retail value of the tobacco that is sold, offered for sale, or possessed for sale in violation of this section or five thousand dollars ($5,000). Such penalty shall be imposed in the manner provided by § 67-4-1015 and in accordance with the Uniform Administrative Procedures Act.
  4. (d) Any tobacco that has been sold, offered for sale, or possessed for sale by the cigarette rolling machine operator in violation of this section shall be deemed contraband and is subject to seizure and forfeiture by the commissioner as provided in §§ 67-4-1020 and 67-4-1021.
  5. (e) In lieu of the reporting requirements contained in § 67-4-2604(a), the commissioner may require, upon request, a cigarette rolling machine operator to submit any additional information as is necessary to enable the commissioner to determine whether a cigarette rolling machine operator is in compliance with this part.
History (1)
  • Acts 2012, ch. 1066, § 8.
§ 67-4-1033. Required notice to prospective purchaser, lessor or user of cigarette rolling machine.
  1. (a) Prior to October 1, 2013, it is an offense for any person selling, leasing, or otherwise providing for use a cigarette rolling machine to fail to provide notice prior to the sale of the machine to the prospective purchaser, lessor, or user of such machine on a separate, written disclosure form the current status of the federal excise tax rate on tobacco products, including, but not limited to, pipe tobacco, and that, on and after October 1, 2013, pursuant to chapter 1066 of the Public Acts of 2012:
    1. (1) The products produced by the machine:
      1. (A) Will be cigarettes for the purposes of this part; and
      2. (B) Will be taxed as provided in chapter 1066 of the Public Acts of 2012; and
    2. (2) Only tobacco included on the directory established pursuant to § 67-4-2602 will be permitted to be used in such machine.
  2. (b) The department shall require an applicant for a cigarette rolling machine operator license under § 67-4-1015(c)(1) to disclose whether the applicant received the notice required by subsection (a).
  3. (c) A violation of subsection (a) is a Class A misdemeanor punishable by a fine only. Each failure to provide notice shall constitute a separate violation.
History (1)
  • Acts 2012, ch. 1066, § 8.
Part 11 Production of Special Nuclear Material
§ 67-4-1101. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commissioner” means the commissioner of revenue;
    2. (2) “Department” means the department of revenue;
    3. (3) “Person” includes:
      1. (A) Any private individual, corporation, partnership, firm, association, trust, estate, or other entity, but does not include any foreign, federal, state, or local government, or political subdivision, or any agent or agency of government; and
      2. (B) Any legal successor, representative, agent, or agency of the entities included within the definition of “person” in subdivision (3)(A);
    4. (4) “Produce” means to:
      1. (A) Manufacture, make, produce, or refine special nuclear material;
      2. (B) Separate special nuclear material from other substances in which such material may be contained; or
      3. (C) Make or to produce new special nuclear material;
    5. (5) “Separative work units” means the measure of effort expended to separate a given quantity of uranium, feed material, into two (2) fractions, one a product fraction containing a higher concentration of U-235 than the feed material, and the other a tails fraction, containing a lower concentration of U-235; and
    6. (6) “Special nuclear material” means:
      1. (A) Plutonium, uranium enriched in the isotope 233 or 235, and any other material that is now or subsequently determined to be special nuclear material by the atomic energy commission or any successor agency of the United States government pursuant to the Atomic Energy Act of 1954 (42 U.S.C. § 2011 et seq.) but does not include “source material,” as defined in that act; or
      2. (B) Any material artificially enriched by any of the isotopes in subdivision (6)(A), but does not include “source material,” as defined in the Atomic Energy Act of 1954.
History (2)
  • Acts 1981, ch. 206, § 2
  • T.C.A., § 67-6201.
§ 67-4-1102. Taxable privilege.
  1. (a) The production by any person in connection with any business for profit, regardless of the form of such profit, of special nuclear material is declared to be a taxable privilege upon which each county and/or municipality in which the special nuclear material is produced may levy such privilege tax by resolution or ordinance of the legislative body in accordance with this part.
  2. (b) Every person exercising such privilege shall be liable for the tax, whether such person's possession of such special nuclear material for purposes of production is by virtue of such person's ownership of the material or is pursuant to a lease, contract, license, loan or otherwise.
Backlinks (1)
History (2)
  • Acts 1981, ch. 206, § 3
  • T.C.A., § 67-6202.
§ 67-4-1103. Tax supplementary.
  1. The tax levied by this part shall be in addition to all other taxes, whether levied in the form of excise, license, or privilege taxes, and shall be in addition to all other fees and taxes levied.
History (2)
  • Acts 1981, ch. 206, § 8
  • T.C.A., § 67-6207.
§ 67-4-1104. Administration by department of revenue.
  1. (a) Administration and collection of the tax shall be by the department in the same manner as other taxes are collected by the state for and on behalf of municipal and county governments.
  2. (b) The commissioner may promulgate rules and regulations necessary and reasonable for the administration of this part.
History (2)
  • Acts 1981, ch. 206, § 5
  • T.C.A., § 67-6204.
§ 67-4-1105. Tax rate.
  1. The rate of the tax levied pursuant to § 67-4-1102 shall be as follows:
    1. (1) The production of special nuclear material shall be taxed in the amount of thirty cents (30¢) for every separative work unit expended within a county of this state;
      Backlinks (1)
    2. (2) In addition to the amount of tax computed in subdivision (1), the production of special nuclear material shall be taxed in the amount of one dollar ($1.00) for every separative work unit expended within a municipality of this state.
History (2)
  • Acts 1981, ch. 206, § 4
  • T.C.A., § 67-6203.
§ 67-4-1106. Tax return and payment.
  1. (a) The tax imposed by this part shall be due and payable monthly on the first day of the month next succeeding the month in which the tax accrues.
  2. (b)
    1. (1) For the purpose of ascertaining the amount of tax payable, it shall be the duty of each person liable for the tax to transmit to the commissioner a return or returns, as applicable, upon forms provided by the commissioner.
    2. (2) Such return or returns shall be transmitted so that they are received by the commissioner on or before the fifteenth day of the month next succeeding the month in which the tax accrues.
    3. (3) A separate return shall be filed for each county and, additionally, for each municipality within such county in which special nuclear materials are produced during the reporting period.
    4. (4) Each return shall indicate whether it is being filed with respect to the tax computation under § 67-4-1105(1) or (2), and shall designate the county or municipality with respect to which such computation is made.
    5. (5) Each return shall show the month covered by that return, the county and municipality in which the special nuclear material with respect to which the return is filed was produced, the number of separative work units expended within such county or municipality, the amount of tax owed under this part, and such other information as the commissioner may require.
    6. (6) The return shall be accompanied by a remittance covering the amount of tax due as computed by the taxpayer.
Backlinks (1)
History (2)
  • Acts 1981, ch. 206, § 5
  • T.C.A., § 67-6204.
§ 67-4-1107. Delinquency or other violations — Penalties.
  1. (a) The tax shall become delinquent on the sixteenth day of the month next succeeding the month in which the tax accrues.
  2. (b)
    1. (1) Any person liable for the tax who, before the delinquency date, fails to make any return required by this part and pay the full amount of the tax due and payable under this part, shall be liable for a specific penalty in the amount of ten percent (10%) of the tax due, which penalty shall be in addition to other penalties provided in this section.
    2. (2) A further penalty of fifty percent (50%) of the amount of the tax remaining due and unpaid on such delinquency date may be added, if, in the opinion of the commissioner based on reasonable evidence, the nonpayment of the tax or any portion of the tax is due to an intent to evade payment of the tax.
  3. (c) If the nonpayment of the tax is due to an intent to evade payment of the tax, the person liable for the tax under this part may be restrained and enjoined by any court of competent jurisdiction from producing and distributing special nuclear materials in the county or municipality in which the production or distribution with respect to which the tax liability or use took place. Such proceeding shall be instituted in the name of the state by the attorney general and reporter upon the request of the commissioner.
  4. (d) There shall be added to the amounts of tax and penalty due under this part interest in accordance with § 67-1-801.
  5. (e) All such penalties and interest imposed under this part shall be payable to and collectible by the commissioner in the same manner as if they were a part of the tax imposed under this part.
  6. (f) Any person required by this part to make a return, pay a tax, keep records, or furnish information deemed necessary by the commissioner for the computation, assessment, or collection of the tax imposed under this part, and who fails to make the return, pay the tax, keep the records, or furnish the information at the time required by this part, or rules and regulations promulgated by the commissioner under this part, commits a Class B misdemeanor, in addition to other penalties provided by law.
  7. (g) Any person, or any officer, employee, or, in the case of a partnership, member of a partnership, who willfully and fraudulently makes and signs a return that such person, officer, employee or member does not reasonably believe to be true and correct as to every material fact commits a felony and is subject to the penalties prescribed for perjury under the laws of this state.
History (3)
  • Acts 1981, ch. 206, § 6
  • T.C.A., § 67-6205
  • Acts 1989, ch. 591, § 112.
§ 67-4-1108. Distribution of revenue.
  1. All revenues collected from each taxpayer under this part shall be allocated in the following manner:
    1. (1) Two percent (2%) of the tax collected from each taxpayer shall be retained by the department and credited to its current service revenue to cover the expenses of administration and collection of the tax and penalties and interest on the tax; and
    2. (2) The remainder shall be remitted to the county and municipality designated on the return filed together with the tax payment, pursuant to § 67-4-1106, or, if the taxpayer fails to follow this part, the county or municipality that would have been so designated had the taxpayer acted according to this part.
History (2)
  • Acts 1981, ch. 206, § 7
  • T.C.A., § 67-6206.
Part 12 Adult Entertainment
§ 67-4-1201. Part definitions.
  1. As used in this part:
    1. (1) “Adult performance business” means a business that:
      1. (A) Is an adult cabaret or other adult-oriented establishment, as defined in § 7-51-1102 or § 7-51-1401;
      2. (B) Provides live nude entertainment or live nude performances for an audience of two (2) or more individuals; and
      3. (C) Permits the consumption of beer, wine, liquor, or other alcoholic beverages on the premises;
    2. (2) “Department” means the department of revenue; and
    3. (3) “Nude” means:
      1. (A) Entirely unclothed; or
      2. (B) Clothed in a manner that exposes to public view, at any time, the bare female breast below a point immediately above the top of the areola, human genitals, pubic region, or buttocks, even if partially covered by opaque material or completely covered by translucent material, including swim suits, lingerie, or latex covering.
History (1)
  • Acts 2018, ch. 764, § 1.
§ 67-4-1202. [Repealed]
History (1)
  • Acts 2018, ch. 764, § 1, repealed by its own terms effective July 1, 2021.
Part 14 Accommodations for Transients — Hotel Occupancy
§ 67-4-1401. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Consideration” means the consideration charged, whether or not received, for the occupancy in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, property and services of any kind or nature without any deduction therefrom whatsoever. Nothing in this definition shall be construed to imply that consideration is charged when the space provided to the person is complimentary from the operator and no consideration is charged to or received from any person;
    2. (2) “Hotel” means any structure or space, or any portion thereof, that is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes privately, publicly, or government-owned hotels, inns, tourist camps, tourist courts, tourist cabins, motels, short-term rental units, primitive and recreational vehicle campsites and campgrounds, or any place in which rooms, lodgings, or accommodations are furnished to transients for consideration;
    3. (3) “Municipality” means an incorporated city or town or a county, but does not include a county with a metropolitan form of government;
    4. (4) “Occupancy” means the use or possession, or the right to the use or possession, of any room, lodgings or accommodations in any hotel;
    5. (5) “Operator” means the person operating the hotel, whether as owner, lessee or otherwise;
    6. (6) “Person” means any individual, or group of individuals, that occupies the same room;
    7. (7) “Residential dwelling” means a cabin, house, or structure used or designed to be used as an abode or home of a person, family, or household, and includes a single-family dwelling, a portion of a single-family dwelling, or an individual residential dwelling in a multi-dwelling building, such as an apartment building, condominium, cooperative, or timeshare;
    8. (8) “Short-term rental unit” means a residential dwelling that is rented wholly or partially for a fee for a period of less than thirty (30) continuous days and does not include a hotel as defined in § 68-14-302 or a bed and breakfast establishment or a bed and breakfast homestay as those terms are defined in § 68-14-502;
    9. (9) “Short-term rental unit marketplace” means a person or entity, excluding a vacation lodging service, that provides a platform for compensation, through which a third party offers to rent a short-term rental unit to an occupant;
    10. (10) “Tourism” means attracting nonresidents to visit a particular municipality and encouraging those nonresidents to spend money in the municipality, which includes travel related to both leisure and business activities;
    11. (11) “Tourism development” means the acquisition and construction of, and financing and retirement of debt for, facilities related to tourism;
    12. (12) “Transient” means any person who exercises occupancy or is entitled to occupancy of any rooms, lodgings or accommodations in a hotel for a period of less than thirty (30) continuous days; and
    13. (13) “Vacation lodging service” means a person or entity that is engaged in the business of providing the services of management, marketing, booking, and rental of short-term rental units.
History (6)
  • Acts 1988, ch. 982, § 2
  • 2015, ch. 395, § 1
  • 2020, ch. 787, §§ 6, 7
  • 2021, ch. 264, §§ 3, 4
  • 2021, ch. 334, § 1
  • 2021, ch. 496, §§ 1, 2.
§ 67-4-1402. Levy of tax authorized — Delinquent notice by publication.
  1. (a)
    1. (1) A municipality may levy, modify, or repeal a privilege tax upon the privilege of occupancy in a hotel by ordinance or resolution subject to the restrictions of this part.
    2. (2) Except as otherwise provided in subdivision (a)(3), the tax levied by a municipality upon the privilege of occupancy in a hotel must not exceed four percent (4%) of the consideration charged to a transient by the hotel operator.
    3. (3) Subject to § 67-4-1414, a tax upon the privilege of occupancy in a hotel levied or authorized before July 1, 2021 by a municipality that exceeds the limit set in subdivision (a)(2) remains in full force and effect.
  2. (b) This section does not void or modify a private act, ordinance, or resolution levying or authorizing the levy of a tax upon the privilege of occupancy in a hotel that existed on or before July 1, 2021, except as provided in § 67-4-1414.
  3. (c)
    1. (1) Except as provided in subdivision (c)(5), as a preliminary step toward pursuing any remedy available to the authorized collector by law to collect any taxes due or delinquent under an ordinance imposing a tax on the privilege of occupancy in a hotel, the authorized collector may publish a notice in accordance with subdivision (c)(2) that lists the name of each operator who has failed to collect or remit the tax due or delinquent and the amount of the tax due or delinquent, if:
      1. (A) The amount of the tax due or delinquent exceeds ten thousand dollars ($10,000) and has been due or delinquent for one hundred twenty (120) days or more; or
      2. (B) The amount of the tax due or delinquent exceeds fifty thousand dollars ($50,000).
    2. (2) Any municipality that elects to publish a notice as authorized by subdivision (c)(1) shall cause the notice to be inserted, once a week for two (2) consecutive weeks in the month of January, in a newspaper of general circulation as defined in § 2-1-104 or one (1) or more newspapers published or widely distributed in the municipality; provided, that if no newspaper is published in the municipality, the notice shall be posted on the courthouse door.
    3. (3) The cost of publication shall be paid by the municipality.
    4. (4) To the extent there is a conflict between this subsection (c) and any ordinance that imposes a tax on the privilege of occupancy in a hotel, this subsection (c) shall govern. The legislative body of any municipality, by ordinance, is authorized to modify the provisions of any ordinance enacted prior to April 14, 2016, that conflict with this subsection (c).
    5. (5) An operator's name and amount of tax due or delinquent shall not be listed on any notice published pursuant to subdivision (c)(1) if all or any portion of the tax is at issue in a suit filed by the operator challenging the collection or assessment of the tax.
History (4)
  • Acts 1988, ch. 982, § 3
  • 2016, ch. 796, § 2
  • 2017, ch. 291, § 1
  • 2021, ch. 496, § 3.
§ 67-4-1403. Disposition of proceeds.
  1. (a) Except as otherwise provided in subsection (b), the revenue received by a municipality from the tax must be designated and used for the promotion of tourism and tourism development.
  2. (b) Subject to § 67-4-1414, a municipality levying a tax upon the privilege of occupancy before July 1, 2021 may continue to use the revenue in the manner prescribed in the private act, resolution, or ordinance levying the tax.
  3. (c)
    1. (1) Not less than thirty (30) days after the end of a municipality's fiscal year, each municipality that receives revenue from a tax levied pursuant to this part shall provide an annual written report to the comptroller of the treasury, the commissioner of the department of tourist development, the chair of the state and local government committee of the senate, and the chair of the local government committee of the house of representatives. The report must detail the amount of revenue spent by the municipality, and its subordinate contractors, and how those expenditures have been designated and used for tourism and tourism development pursuant to this part.
    2. (2) If an audit by the comptroller, in consultation with the department of tourist development, or by contractors employed by a local municipality with the approval of the comptroller, finds that a municipality has spent funds derived from a tax levied pursuant to this part for purposes not related to the promotion of tourism and tourism development as required by subsection (a), the municipality shall, using general funds, appropriate an amount equal to the amount spent improperly to be used to support tourism and tourism development purposes within the immediately following fiscal year.
  4. (d) Except as provided in subsection (b), a municipality shall not use revenue from the tax levied pursuant to this part for general government spending or on items that were previously funded by the municipality's general appropriations.
Backlinks (1)
History (3)
  • Acts 1988, ch. 982, § 4
  • 2021, ch. 496, § 4
  • 2024, ch. 1016, § 1.
§ 67-4-1404. Collection — Refund.
  1. (a)
    1. (1) The tax shall be added by each operator to each invoice that the operator prepares and gives directly, or transmits, to the transient for the occupancy of the operator's hotel.
    2. (2) The tax so invoiced shall be collected from the transient by the operator and remitted to the municipality.
  2. (b) When a person has maintained occupancy for thirty (30) continuous days, that person shall receive from the operator a refund or credit for the tax previously collected from or charged to that person, and the operator shall receive credit for the amount of such tax if previously paid or reported to the municipality.
History (1)
  • Acts 1988, ch. 982, § 5.
§ 67-4-1405. Remittance of tax.
  1. (a) The tax levied shall be remitted by all operators who lease, rent or charge for rooms or spaces in hotels within the municipality, to such officer as may by the ordinance be charged with the duty of collection of that tax, the tax to be remitted to such officer not later than the twentieth day of each month for the preceding month. The operator is required to collect the tax from the transient at the time of the presentation of the invoice for occupancy as may be the custom of the operator, and if credit is granted by the operator to the transient, then the obligation to the municipality entitled to such tax shall be that of the operator.
  2. (b) For the purpose of compensating the operator in accounting for remitting the tax levied pursuant to this part, the operator shall be allowed two percent (2%) of the amount of the tax due and accounted for and remitted to the officer in the form of a deduction in submitting the operator's report and paying the amount due by such operator; provided, that the amount due was not delinquent at the time of payment.
  3. (c) Notwithstanding this part to the contrary, on or after January 1, 2021, the tax levied pursuant to this part, when levied upon the occupancy of a short-term rental unit secured through a short-term rental unit marketplace, must be collected and remitted in accordance with chapter 4, part 15 of this title.
History (2)
  • Acts 1988, ch. 982, § 6
  • 2020, ch. 787, § 8.
§ 67-4-1406. Monthly tax return — Annual audit.
  1. (a)
    1. (1) The authorized collector of the tax shall be responsible for the collection of such tax and shall place the proceeds of such tax in accounts for the purposes stated in this part.
    2. (2) A monthly tax return shall be filed under oath with the authorized collector by the operator with such number of copies of the return as such collector may reasonably require for the collection of such tax.
    3. (3) The report of the operator shall include such facts and information as may be deemed reasonable for the verification of the tax due. The form of such report shall be developed by the authorized collector and approved by the municipal legislative body prior to use.
    4. (4) The collector shall audit each operator in the municipality at least once per year and shall report on the audits made on a quarterly basis to the municipal legislative body.
  2. (b) The municipal legislative body is authorized to adopt reasonable rules and regulations for the implementation of this part, including the form for such reports.
History (1)
  • Acts 1988, ch. 982, § 7.
§ 67-4-1407. No advertising of rebates.
  1. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part of the tax will be assumed or absorbed by the operator or that it will not be added to the rent, or that if added, any part will be refunded.
History (1)
  • Acts 1988, ch. 982, § 8.
§ 67-4-1408. Delinquent taxes — Interest and penalty.
  1. (a) Taxes collected by an operator that are not remitted to the authorized collector on or before the due dates shall be delinquent.
  2. (b) An operator shall be liable for interest on such delinquent taxes from the due date at the rate of twelve percent (12%) per annum, and in addition, for the penalty of one percent (1%) for each month or fraction thereof such taxes are delinquent. Such interest and penalty shall become a part of the tax required to be remitted under this part.
  3. (c) Each occurrence of knowing refusal of an operator to collect or remit the tax or knowing refusal of a transient to pay the tax imposed is a Class A misdemeanor, punishable upon conviction by a fine to be imposed separately for each offense, not in excess of fifty dollars ($50.00). Each occurrence shall constitute a separate offense. As used in this subsection (c), “each occurrence” means each day.
  4. (d) Nothing in this section shall be construed to prevent the authorized collector of the tax from pursuing any civil remedy available to the collector by law, including issuing distress warrants and the seizure of assets, to collect any taxes due or delinquent under this part.
Backlinks (1)
History (3)
  • Acts 1988, ch. 982, § 9
  • 1989, ch. 591, §§ 1, 6
  • 2003, ch. 322, §§ 1, 2.
§ 67-4-1409. Records — Inspection.
  1. It is the duty of every operator liable for the collection of and payment to the municipality of any tax imposed by this part to keep and preserve for a period of three (3) years all records as may be necessary to determine the amount of such tax for which the operator may have been liable for the collection of and payment to the municipality, which records the authorized collector shall have the right to inspect at all reasonable times.
History (1)
  • Acts 1988, ch. 982, § 10.
§ 67-4-1410. Administration and enforcement — Remedies of taxpayers.
  1. (a) The authorized collector, in administering and enforcing this part, has, as additional powers, those powers and duties with respect to collecting taxes as provided in this title or otherwise provided by law for the county clerks; provided, that chapter 1, part 17 of this title does not apply to any record, document, or other information pertaining to a tax on the privilege of occupancy in a hotel imposed by a municipality pursuant to this part.
  2. (b) Upon any claim of illegal assessment and collection, the taxpayer shall have the remedies provided in this title, it being the intent of this part that the provisions of law that apply to the recovery of state taxes illegally assessed and collected also apply to taxes illegally assessed and collected under the authority of this part; provided, that the authorized collector shall possess those powers and duties as provided in § 67-1-707 for the county clerks.
  3. (c) With respect to the adjustment and settlement with taxpayers, all errors of taxes collected by the authorized collector under the authority of this part shall be refunded by the authorized collector.
  4. (d) Notice of any tax paid under protest shall be given to the authorized collector and the ordinance authorizing levy of the tax shall designate a municipal officer against whom suit may be brought for recovery.
History (2)
  • Acts 1988, ch. 982, § 11
  • 2016, ch. 796, § 3.
§ 67-4-1411. Deposit of funds.
  1. The proceeds of the tax authorized by this part shall be allocated to and placed in the general fund or other fund of the municipality to be used for the purposes stated in § 67-4-1403.
History (1)
  • Acts 1988, ch. 982, § 12.
§ 67-4-1412. Delinquent tax notice by publication.
  1. (a) This section applies to any city, town, or county in this state, including any county having a metropolitan form of government.
  2. (b) Except as provided in subsection (f), as a preliminary step toward pursuing any remedy available to a city, town, or county by law to collect any taxes due or delinquent under an ordinance, resolution, or private act imposing a tax on the privilege of occupancy in a hotel, the tax collector for the city, town, or county may publish a notice in accordance with subsection (c) that lists the name of each operator who has failed to collect or remit the tax due or delinquent and the amount of the tax due or delinquent, if:
    1. (1) The amount of the tax due or delinquent exceeds ten thousand dollars ($10,000) and has been due or delinquent for one hundred twenty (120) days or more; or
    2. (2) The amount of the tax due or delinquent exceeds fifty thousand dollars ($50,000).
  3. (c) Any city, town, or county that elects to publish a notice as authorized by subsection (b) shall cause the notice to be inserted, once a week for two (2) consecutive weeks in the month of January, in a newspaper of general circulation as defined in § 2-1-104 or one (1) or more newspapers published or widely distributed in the city, town, or county; provided, that if no newspaper is published in the city, town, or county, the notice shall be posted on the courthouse door.
  4. (d) The cost of publication shall be paid by the city, town, or county.
  5. (e) To the extent there is a conflict between this section and any private act, resolution, or ordinance that imposes a tax on the privilege of occupancy in a hotel, this section shall govern. The legislative body of any city or town, by ordinance, or county, by resolution, is authorized to modify the provisions of any ordinance or resolution enacted prior to April 14, 2016, that conflict with this section.
  6. (f) An operator's name and amount of tax due or delinquent shall not be listed on any notice published pursuant to subsection (b) if all or any portion of the tax is at issue in a suit filed by the operator challenging the collection or assessment of the tax.
History (1)
  • Acts 2016, ch. 796, § 1.
§ 67-4-1413. Collection and remittance of tax on short-term rental unit.
  1. Notwithstanding any law to the contrary, on or after January 1, 2021, tax levied upon the privilege of occupancy of a short-term rental unit secured through a short-term rental unit marketplace, pursuant to any private act, must be collected and remitted in accordance with title 67, chapter 4, part 15.
History (1)
  • Acts 2020, ch. 787, § 9.
§ 67-4-1414. Privilege tax in existence before July 1, 2021.
  1. (a)
    1. (1) A privilege tax upon the privilege of occupancy in a hotel in effect, or any authorization to levy such privilege tax granted, under a private act, resolution of a county, ordinance of a city, or this part as it existed before July 1, 2021, remains in full force and effect on and after July 1, 2021. However, a municipality with a preexisting privilege tax or authority shall not change the use of the revenue except in accordance with this part and subject to the restrictions of this part.
    2. (2) Notwithstanding subdivision (a)(1), a municipality, having a population of greater than six hundred thousand (600,000), according to the 2020 or a subsequent federal census, with a preexisting privilege tax or authority shall not change the designated use, but may otherwise change the allocations of the revenue, except in accordance with this part and subject to any other restrictions of this part.
  2. (b) A municipality with an authorized tax upon the privilege of occupancy on or before July 1, 2021, shall not adopt a tax under this part unless the municipality repeals the preexisting authorization.
Backlinks (3)
History (2)
  • Acts 2021, ch. 496, § 6
  • 2024, ch. 1001, § 1.
§ 67-4-1415. Additional privilege tax.
  1. (a) Notwithstanding another law to the contrary, in a county with a metropolitan government that has imposed a privilege tax upon the privilege of occupancy in a hotel of each transient, such metropolitan government may, upon approval by ordinance of the metropolitan council, impose an additional privilege tax upon the privilege of occupancy in a hotel of each transient in an amount up to one percent (1%) of the consideration charged by the operator. The proceeds from the privilege tax provided for in this subsection (a) must be retained by the metropolitan government for the exclusive use of the sports authority for the payment of debt service for the construction of an enclosed stadium with at least fifty thousand (50,000) seats and for future capital improvements to the enclosed stadium.
  2. (b) The privilege tax provided for in subsection (a) must be added by each operator to each invoice prepared by the operator for the occupancy of the operator's hotel, such invoice to be given directly or transmitted to the transient, and the tax must be collected by the operator from the transient and remitted to the tax collection official.
  3. (c) The privilege tax provided for in subsection (a) must be remitted by all operators who lease, rent, or charge for rooms to the tax collection official not later than the twentieth of each month next following collection from the transient. The operator shall collect the tax from the transient at the time of the presentation of the invoice for the occupancy whether prior to occupancy or not, as may be the custom of the operator. The obligation to the metropolitan government entitled to the tax is that of the operator.
  4. (d) For the purpose of compensating the operator in accounting for and remitting the privilege tax provided for in subsection (a), the operator is allowed two percent (2%) of the amount of tax due and accounted for and remitted to the tax collection official in the form of a deduction in submitting the operator's report and paying the amount due by the operator; provided, that the amount due was not delinquent at the time of payment.
  5. (e) Notwithstanding this part to the contrary, on or after May 25, 2022, the tax levied pursuant to subsection (a), when levied upon the occupancy of a short-term rental unit secured through a short-term rental unit marketplace, must be collected and remitted in accordance with chapter 4, part 15 of this title.
  6. (f) An operator of a hotel shall not advertise or state in any manner, whether directly or indirectly, that the privilege tax provided for in subsection (a) or any part of the tax will be assumed or absorbed by the operator, or that it will be added to the rent, or that, if added, any part will be refunded.
  7. (g)
    1. (1) Privilege taxes provided for in subsection (a) that are collected by an operator and not remitted to the tax collection official on or before the due dates are delinquent.
    2. (2) An operator is liable for interest on such delinquent taxes from the due date at the rate of eight percent (8%) per annum, and in addition for penalty of one percent (1%) for each month or fraction of a month that such taxes are delinquent. Such interest and penalty must become a part of the tax required in this section to be remitted.
    3. (3) On and after July 1, 2022, willful refusal of an operator to collect or remit the tax or willful refusal of a transient to pay the tax imposed is a Class C misdemeanor. A fine levied pursuant to this subdivision (g)(3) applies to each individual transaction involving lodging services paid by a customer to the operator in those cases when the operator refuses to collect or remit the tax or the transient refuses to pay the tax payable.
  8. (h) In administering and collecting the privilege tax provided for in subsection (a), the tax collection official has, as additional powers, those powers and duties with respect to collection of taxes provided in this title or otherwise provided by law; provided, that chapter 1, part 17 of this title, does not apply to a record, document, or other information pertaining to a tax on the privilege of occupancy in a hotel imposed pursuant to subsection (a).
  9. (i) Upon a claim of illegal assessment and collection, the taxpayer has the remedy provided in § 67-1-911, it being the intent of this subsection (i) that the provisions of law that apply to the recovery of state taxes illegally assessed and collected be conformed to apply to the recovery of taxes illegally assessed and collected under this section; provided, that the tax collection official possesses those powers and duties as provided in § 67-1-707, with respect to the adjustment and settlement with taxpayers of all errors of taxes collected by the tax collection official under this section and to direct the refunding of the adjustments and settlements. Notice of a tax paid under protest must be given to the tax collection official, and suit for recovery must be brought against the tax collection official.
History (1)
  • Acts 2022, ch. 1046, § 1.
§ 67-4-1425. [Repealed]
History (34)
  • Acts 1988, ch. 1000, §§ 1-3
  • 1991, ch. 413, § 3
  • 1996, ch. 1082, § 1
  • 1999, ch. 538, § 1
  • 2001, ch. 324, § 1
  • 2002, ch. 718, § 1
  • 2003, ch. 370, § 1
  • 2005, ch. 162, § 1
  • 2007, ch. 156, §§ 1, 2
  • 2011, ch. 303, § 1
  • 2012, ch. 975, § 1
  • 2015, ch. 384, § 1
  • 2015, ch. 400, § 1
  • 2015, ch. 412, § 1
  • 2015, ch. 432, § 1
  • 2016, ch. 890, § 1
  • 2016, ch. 933, § 1
  • 2017, ch. 14, § 1
  • 2017, ch. 165, § 1
  • 2017, ch. 250, § 1
  • 2017, ch. 436, § 1
  • 2018, ch. 700, § 1
  • 2018, ch. 776, § 1
  • 2018, ch. 781, § 1
  • 2018, ch. 796, § 1
  • 2018, ch. 814, § 1
  • 2018, ch. 1065, § 1
  • 2019, ch. 198, § 1
  • 2019, ch. 241, § 1
  • 2019, ch. 282, § 1
  • 2019, ch. 348, § 1
  • 2019, ch. 349, § 1
  • 2020, ch. 701, § 1
  • repealed by Acts 2021, ch. 496, §  5, effective July 1, 2021.
Part 15 Short-Term Rental Unit Marketplace Tax
§ 67-4-1501. Part definitions.
  1. As used in this part:
    1. (1) “Consideration” means the consideration charged, whether or not received, for the occupancy in a short-term rental unit valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, property, and services of any kind or nature without any deduction therefrom whatsoever. Nothing in this definition implies that consideration is charged when the space provided to the person is complimentary from the operator and no consideration is charged to or received from any person;
    2. (2) “Department” means the department of revenue;
    3. (3) “Occupancy” means the use or possession, or the right to the use or possession, of any room, lodgings, or accommodations in a short-term rental unit;
    4. (4) “Residential dwelling” means a cabin, house, or structure used or designed to be used as an abode or home of a person, family, or household, and includes a single-family dwelling, a portion of a single-family dwelling, or an individual residential dwelling in a multi-dwelling building, such as an apartment building, condominium, cooperative, or timeshare;
    5. (5) “Short-term rental unit” means a residential dwelling that is rented wholly or partially for a fee for a period of less than thirty (30) continuous days and does not include a hotel as defined in § 68-14-302 or a bed and breakfast establishment or a bed and breakfast homestay as those terms are defined in § 68-14-502;
    6. (6) “Short-term rental unit marketplace” means a person or entity, excluding a vacation lodging service, that provides a platform for compensation, through which a third party offers to rent a short-term rental unit to an occupant;
    7. (7) “Short-term rental unit provider” means any person or entity engaged in renting any short-term rental unit offered through a short-term rental unit marketplace;
    8. (8) “Short-term rental unit transaction” means any transaction in which there is a charge to an occupant by a short-term rental unit provider for the occupancy of a short-term rental unit;
    9. (9) “Transient” means any person who exercises occupancy or is entitled to occupancy of any short-term rental unit for a period of less than thirty (30) continuous days; and
    10. (10) “Vacation lodging service” means a person or entity that is engaged in the business of providing the services of management, marketing, booking, and rental of short-term rental units.
History (2)
  • Acts 2020, ch. 787, § 10
  • 2021, ch. 264, §§ 5, 6.
§ 67-4-1502. Registration of short-term rental unit marketplace — Collection and remittance of tax.
  1. (a) A short-term rental unit marketplace shall register with the department for the collection and remittance of all the following taxes with respect to the consideration charged for the occupancy of a short-term rental unit:
    1. (1) The privilege tax imposed pursuant to title 7, chapter 4, part 1;
      Backlinks (2)
    2. (2) The privilege tax imposed pursuant to title 7, chapter 4, part 2;
    3. (3) The privilege tax imposed pursuant to title 67, chapter 4, part 14; and
    4. (4) Any privilege tax on the occupancy of a room provided by any hotel, motel, or similar establishment to a transient for a consideration, where the tax is imposed pursuant to a private act.
    Backlinks (5)
  2. (b) Any tax collected pursuant to subsection (a) must be collected by the short-term rental unit marketplace and remitted to the department, in the same manner as provided by chapter 6 of this title with respect to sales and use tax. The tax collected pursuant to subsection (a) must be collected at the rate adopted by the city, county, or metropolitan government.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1503. Collection and remittance of tax — Monthly report and remittance — Audits — Confidentiality of information.
  1. For purposes of this part:
    1. (1) A short-term rental unit marketplace shall, with respect to each short-term rental unit transaction facilitated by the short-term rental unit marketplace, collect and remit the taxes set out in § 67-4-1502(a), even if the transaction is occasional or isolated as contemplated in § 67-6-102(8)(B);
    2. (2) A short-term rental unit marketplace shall report its taxes collected pursuant to § 67-4-1502(a) on a monthly basis and remit the aggregate total amounts for each respective jurisdiction for each month;
    3. (3) Taxes payable by a short-term rental unit marketplace in accordance with § 67-4-1502(a) are subject to audit only by the department at the commissioner's sole discretion. Audits of a short-term rental unit marketplace must be conducted solely on the basis of the tax identification number associated with each short-term rental unit marketplace and shall not be conducted directly or indirectly on any individual short-term rental unit provider or any transient to whom short-term rental units are furnished. An audit described in this subdivision (3) must be conducted on the basis of returns filed by the short-term rental unit marketplace with the department, and if requested by the short-term rental unit marketplace, must include all tax types for which the short-term rental unit marketplace is required to collect and remit pursuant to § 67-4-1502(a); and
    4. (4) If a short-term rental unit marketplace is required to disclose any personally identifiable information relating to any short-term rental unit provider or transient to whom a short-term rental unit is furnished, such information is confidential pursuant to § 67-1-1702.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1504. Prohibited advertising and statements relating to tax.
  1. A short-term rental unit marketplace shall not advertise or state in any manner, whether directly or indirectly, that any tax set out in § 67-4-1502(a)(1)-(4), in whole or in part, will be assumed or absorbed by the short-term rental unit provider, not be added to the occupancy, or be refunded.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1505. Applicable administrative and enforcements provisions.
  1. A short-term rental unit marketplace that collects the taxes set out in § 67-4-1502(a) is subject to the administration and enforcement provisions in chapter 6, parts 4 and 5 of this title.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1506. Monthly distribution of collected taxes — Deduction of administrative fee.
  1. The department shall distribute the taxes collected pursuant to this part on a monthly basis to the applicable local governing body in which the short-term rental unit was located and for which the tax was collected. The department may deduct an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the collected tax to cover its expenses of administering the collection and distribution of the tax.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1507. Promulgation of rules.
  1. The department may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, not inconsistent with this chapter, other laws, or the constitution of this state or the United States, for the enforcement of this chapter and the collection of revenues under this chapter.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1508. Inapplicability of part — Applicability of section.
  1. This part is not applicable when, upon January 1, 2021, a local governing body is a party to a valid contract that includes terms related to the collection and remittance of the taxes set out in § 67-4-1502(a), with a short-term rental unit marketplace. This section applies only while the contract, or any successor agreement, remains valid and effective. If the contract terminates and no successor agreement is executed, then the taxes must be collected and remitted in accordance with this part.
History (1)
  • Acts 2020, ch. 787, § 10.
§ 67-4-1509. Report on tax rate imposed by local government.
  1. Annually, on a date determined by the department and on a form created and provided by the department, every local government that imposes a tax set out in § 67-4-1502(a)(1)-(4) shall certify and report to the department the tax rate imposed by the local government. In the event of changes to the rate, the local government shall notify the department, in the manner prescribed by the department. The department shall collect the rate information and make the information accessible to the public.
History (1)
  • Acts 2020, ch. 787, § 10.
Part 16 Predisposal Fee
§ 67-4-1601. Administration and collection.
  1. The predisposal fee imposed by this part shall be in addition to all privilege taxes elsewhere imposed. The fee imposed by this part shall be administered and collected by the commissioner of revenue.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1602. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commissioner” means the commissioner of revenue;
    2. (2) “Dealer” means every person engaged in the sale of new tires in this state, including persons making sales by mail or common carrier into Tennessee and having a constitutional nexus with Tennessee for sales tax purposes;
    3. (3) “Department” means the department of revenue;
    4. (4) “Motor vehicle” means any vehicle used in the transportation of persons or property on streets or highways, including automobiles, motorcycles, trucks, trailers, semi-trailers and truck/semi-trailer combinations, and also including farm tractors, trailers and machinery, but not including vehicles propelled solely by human muscular power, such as bicycles;
    5. (5) “New tire” means a tire that has not previously been used in the regular operation of a motor vehicle and does not include a tire that has been recapped or retreaded;
    6. (6) “Retail sale” means every sale of new tires for any purpose other than resale;
    7. (7) “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 new tires, but does not include the sale of new tires as a component part of a new or used motor vehicle;
    8. (8) “Sale for resale” means every sale for the purpose of resale and not for use and consumption that is properly supported by a sales tax resale certificate; and
    9. (9) “Tire” means a continuous solid or pneumatic rubber covering encircling the wheel of a motor vehicle.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1603. Amount of fee — Tires sold for delivery outside of Tennessee.
  1. (a) A predisposal fee in the amount of one dollar and thirty-five cents ($1.35) per tire is imposed on each person exercising the privilege of making retail sales of new tires in this state.
  2. (b) A person who is subject to and pays this fee is not liable for the fee for tires sold for delivery outside of this state.
Backlinks (1)
History (2)
  • Acts 1991, ch. 451, § 88
  • 2007, ch. 602, § 23.
§ 67-4-1604. Special disposal fee or surcharge — Imposition by counties prohibited — Applicable fees and surcharges.
  1. Notwithstanding any provision of title 5, a county may not impose any special disposal fee or surcharge on tires in addition to the fee imposed by § 67-4-1603. Tires shall be subject to the same tipping fee and other surcharges authorized by § 68-211-835 as are imposed on other wastes.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1605. Retail sale of new tires — Registration.
  1. Every person desiring to engage in the retail sale of new tires shall register for each place of business with the commissioner upon forms prescribed and furnished by the commissioner.
History (2)
  • Acts 1991, ch. 451, § 88
  • 2007, ch. 602, § 24.
§ 67-4-1606. Fee payable for quarterly periods — Quarterly returns — Fee credits — Failure to file return and/or pay fee.
  1. (a) The fee imposed by this part shall be payable for quarterly periods as follows:
    1. (1) January 1 through March 31;
    2. (2) April 1 through June 30;
    3. (3) July 1 through September 30; and
    4. (4) October 1 through December 31.
  2. (b) It is the duty of all dealers, on or before the twenty-fifth day of the month immediately following the close of the periods set out in subdivisions (a)(1)-(4), to transmit to the commissioner, upon forms prescribed and furnished by the commissioner, returns showing the gross number of new tires sold at retail during the preceding quarter. A separate return shall be filed for each separate location or place of business.
  3. (c) The return shall be accompanied by payment of all fees due.
  4. (d) Failure to file the return or pay the fee, or both, due under this part prior to the date provided by this section shall cause the fee to become subject to interest as provided in § 67-1-801. When any dealer fails to timely file the return required by this section or fails to timely pay any amount shown to be due on the return, the penalty provided in § 67-1-804(a) shall apply. Notwithstanding § 67-1-804(b) or any other law to the contrary, when any dealer fails to report and pay the total amount of the fee determined to be due by the commissioner, there shall be imposed a penalty in the amount of fifty percent (50%) of the unpaid amount. If the failure is determined by the commissioner to be due to fraud, the penalty provided in § 67-1-804(c) shall apply. The penalty imposed by this subsection (d) shall be subject to the waiver provisions provided in § 67-1-803.
History (2)
  • Acts 1991, ch. 451, § 88
  • 2007, ch. 602, §§ 25, 26.
§ 67-4-1607. Fee credit for returned tires.
  1. Each dealer shall be allowed a credit against the fee for tires that are returned and the purchase price fully refunded; provided, that the fee imposed by this part was previously remitted on the sale.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1608. New tires for resale — Use and consumption by dealer.
  1. Any dealer purchasing new tires for resale without the payment of the fee, and subsequently withdrawing the tires from inventory for such dealer's own use and consumption, must remit the fee on the tires on such dealer's own return.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1609. Motor vehicle leasing companies.
  1. A motor vehicle leasing company, when purchasing new tires for resale in the form of a lease, must remit the fee on the tires when the tires are first put to use in this state.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1610. Fee deduction — Allocation of fee.
  1. (a) For the purpose of compensating the dealer in accounting for and remitting the fee, a dealer shall be allowed a deduction of the fee due, reported and paid to the department in the amount of ten cents (10¢) per tire reported on the return. No deduction from the fee shall be allowed if any such report or payment of the surcharge is delinquent.
  2. (b)
    1. (1) Notwithstanding chapter 994 of the Public Acts of 2000, or another law to the contrary, the commissioner of revenue shall send one dollar ($1.00) per tire sold in a county to that county to be used for beneficial end use in accordance with § 68-211-867, disposal of waste tires in accordance with § 68-211-867(d), or removal of illegally disposed waste tires from public or private property. Money received by a county in accordance with this subdivision (b)(1) must not be used for another purpose. The county shall include in its annual progress report to the department of environment and conservation, pursuant to § 68-211-814(a), data on how many waste tires the county manages, information on the final disposition of the waste tires, and documentation of how all funds received under this subdivision (b)(1) have been expended.
    2. (2) The remaining balance of the fee must be allocated to the solid waste management fund established by § 68-211-821.
History (5)
  • Acts 1991, ch. 451, § 88
  • 2007, ch. 602, § 27
  • 2013, ch. 457, §§ 1, 2
  • 2022, ch. 746, § 1
  • 2024, ch. 614, § 1.
§ 67-4-1611. Severability.
  1. If any provision of this part or the application of this part to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the part that can be given effect without the invalid provision or application, and to that end this part is declared to be severable.
History (1)
  • Acts 1991, ch. 451, § 88.
§ 67-4-1612. Rules.
  1. The commissioner is authorized to promulgate rules to administer the fee provided by this part. All such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
History (1)
  • Acts 1991, ch. 451, § 88.
Part 17 Occupation Tax
§ 67-4-1701. Privilege tax established — Collection.
  1. The engaging in any vocation, profession, business or occupation named in this part is declared to be a privilege taxable by the state alone. The privilege tax established in this part shall be collected by the commissioner of revenue and deposited into the state general fund, except as otherwise provided for in this part.
History (2)
  • Acts 1992, ch. 529, § 8
  • 2009, ch. 530, § 66.
§ 67-4-1702. Occupations subject to tax.
  1. There is levied a tax on the privilege of engaging in the following vocations, professions, businesses, or occupations:
    1. (1) Persons registered as lobbyists pursuant to § 3-6-302;
    2. (2) Persons licensed or registered under title 48, chapter 1 as:
      1. (A) Agents;
      2. (B) Broker-dealers; and
      3. (C) Investment advisers; and
    3. (3) Persons licensed as attorneys by the supreme court of Tennessee.
Backlinks (2)
History (7)
  • Acts 1992, ch. 529, § 8
  • 1996, ch. 999, § 2
  • 2001, ch. 342, §§ 2, 3
  • 2009, ch. 530, § 64
  • 2014, ch. 760, §§ 1, 3
  • 2019, ch. 478, § 1
  • 2022, ch. 1083, § 1.
§ 67-4-1703. Amount of tax — When due and payable.
  1. (a) The privilege tax established by this part is four hundred dollars ($400) annually. The privilege tax is due and payable on June 1 of each year. Taxes paid after June 1 are delinquent.
    Backlinks (1)
  2. (b) Any person who is licensed or registered for two (2) or more professions taxed pursuant to this part shall not be required to pay more than one (1) tax in the amount of four hundred dollars ($400).
  3. (c)
    1. (1) No tax owed under this part by a person in the armed forces of the United States, or called into active military service of the United States, as defined in § 58-1-102, from a reserve or national guard unit, shall be due until one hundred eighty (180) days following the conclusion of hostilities in which such person is actually engaged outside the United States or one hundred eighty (180) days after such person is transferred from the theater of operations of such hostilities, whichever is sooner.
    2. (2) A person claiming this delay shall present proof, satisfactory to the commissioner, of such person's deployment and stationing outside the United States during a period of hostilities and proof of such person's return from such deployment.
    3. (3) This subsection (c) shall expressly apply to personnel stationed outside the United States during Operation Enduring Freedom or other hostilities where the military personnel are entitled to combat compensation as determined by the United States department of defense.
    Backlinks (1)
  4. (d) Nothing in this section shall be construed as creating a payroll tax.
History (6)
  • Acts 1992, ch. 529, § 8
  • 2002, ch. 856, § 7a
  • 2003, ch. 87, § 3
  • 2004, ch. 800, § 2
  • 2009, ch. 530, § 65
  • 2014, ch. 760, §§  2, 4.
§ 67-4-1704. Penalties and interest.
  1. (a) Penalties and interest shall be assessed and collected by the commissioner of revenue on delinquent or deficient taxes in accordance with chapter 1 of this title.
  2. (b) At the time the department of revenue assesses the tax liability, including any applicable penalty and interest, the department shall notify the taxpayer in writing that the failure to cure the tax delinquency or deficiency prior to the renewal date of the license or registration may result in the appropriate licensing board or agency holding the taxpayer's application for renewal of the license or registration in abeyance.
  3. (c) For purposes of this section, “cure” means:
    1. (1) Payment in full of the tax delinquency or deficiency, including any accrued penalty and interest;
    2. (2) Entering into an agreement with the department to pay the tax liability in installments over an extended period, or other agreement acceptable to the department and the taxpayer; or
    3. (3) The abatement of the tax liability by the department as required by law.
  4. (d) The commissioner of revenue shall on a monthly basis compile and transmit to the appropriate licensing board or agency a list of taxpayers who are delinquent ninety (90) days or more from the due date of the tax and have either not pursued a remedy under § 67-1-1801 or remain liable for such tax at the conclusion of such remedy; provided, however, that such list shall not include any taxpayer who has made all installment payments due and payable under an agreement with the department to pay the tax liability in installments over an extended period. The appropriate licensing board or agency shall not process and shall hold in abeyance the application for renewal of the license or registration of any taxpayer appearing on the list.
  5. (e) Any taxpayer whose application for renewal of the license or registration is held in abeyance under subsection (d) may, upon curing the tax delinquency or deficiency as defined in subsection (c), obtain a tax clearance from the department. Upon receipt of the tax clearance, the appropriate licensing board or agency shall resume processing the taxpayer's application for the renewal of the license or registration in accordance with applicable rules and regulations.
  6. (f) The Supreme Court has established rules to suspend the license of an attorney who fails to pay the privilege tax. The Supreme Court is encouraged to establish additional rules, as the court may determine necessary, to further promote the timely payment of the tax by licensed attorneys.
History (3)
  • Acts 1992, ch. 529, § 8
  • 1999, ch. 267, § 1
  • 2014, ch. 763, § 1.
§ 67-4-1705. Tax not a regulatory fee.
  1. The taxes levied by this part shall not be construed to be a regulatory fee.
History (1)
  • Acts 1992, ch. 529, § 8.
§ 67-4-1706. Additional tax.
  1. The taxes levied by this part are in addition to all other taxes and fees levied by law.
History (1)
  • Acts 1992, ch. 529, § 8.
§ 67-4-1707. Rules and regulations.
  1. The commissioner of revenue is authorized to promulgate rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement, administer and enforce this part.
History (1)
  • Acts 1992, ch. 529, § 8.
§ 67-4-1708. Applicability.
  1. (a) The privilege tax levied by this part upon the privilege of engaging in certain occupations requiring registration or a license do not apply to a person so registered or licensed, if the person is inactive or retired pursuant to the regulations of the appropriate licensing board.
  2. (b) Notwithstanding any provisions of this part to the contrary, any professional fee levied by this part upon persons licensed as real estate brokers shall be levied only upon such licensees who act as principal brokers pursuant to § 62-13-309.
  3. (c) Notwithstanding any provision of this part or any other law to the contrary, the privilege tax levied by this part does not apply to any person who is in the armed forces of the United States, or is called into active military service of the United States, as defined in § 58-1-102, from a reserve or national guard unit, for more than one hundred eighty (180) days during the three hundred sixty five (365) days prior to the due date of the tax set forth in § 67-4-1703(a).
History (7)
  • Acts 1992, ch. 529, §§ 16, 17
  • 2002, ch. 856, § 7b
  • 2003, ch. 355, § 52
  • 2003, ch. 418, § 7
  • 2004, ch. 592, § 7
  • 2005, ch. 494, § 1
  • 2006, ch. 1019, § 49.
§ 67-4-1709. Liability for tax by certain individuals — Employer's option to remit.
  1. (a) Each individual licensed or registered to engage in a vocation, profession, business, or occupation listed in § 67-4-1702 shall be liable for the tax. Any employer, including any governmental entity, may choose to remit the tax imposed by this part on behalf of persons subject to the tax who are employed by such employer.
  2. (b) State agencies, including without limitation the University of Tennessee and the state university and community college system, are authorized to pay the privilege tax levied in this part on behalf of full-time state employees who are subject to the tax and who use the certification in their job duties, if an appropriation for such purpose is made in the general appropriations act. The payment by a state department or agency is subject to approval by the department or agency head and to this part.
History (5)
  • Acts 1993, ch. 485, §§ 1, 2
  • 2003, ch. 138, §§ 1, 2
  • 2003, ch. 355, § 53
  • 2003, ch. 418, § 8
  • 2013, ch. 454, § 18.
§ 67-4-1710. Exemption for medical practitioners issued a special volunteer license for practice at a free health clinic.
  1. A medical practitioner who has been issued a special volunteer license for practice at a free health clinic, as such terms are defined in title 63, chapter 1, part 2, shall be exempt from the tax imposed by this part.
History (1)
  • Acts 2004, ch. 579, § 10.
§ 67-4-1711. Implementation of professional privilege tax incentive for participation in college savings plans.
  1. (a) The department shall assist the board of trustees of the college savings trust fund program in the implementation a professional privilege tax incentive established under § 49-7-805(4) that shall include, but not be limited to, college savings plan inserts in the department's professional privilege tax notifications, providing college savings plan incentives information with any website tax payment form, sending other notifications about college savings incentives by electronic means, and providing information about college savings incentives through any other web-based means.
  2. (b) For any insert included in the mailing of renewal notices that causes the total postal weight to be over one ounce (1 oz.) as permitted by the United States postal service, the board of trustees of the college savings trust fund program shall pay the increased cost of mailing.
History (2)
  • Acts 2014, ch. 910, § 29
  • 2017, ch. 400, § 13.
§ 67-4-1712. Notification regarding annual privilege tax.
  1. On or before May 1 of each year, the department shall notify each person subject to the annual privilege tax levied by this part of the amount owed, the due date, and any requirement for electronic filing or payment. The notification shall be in writing and may be sent by e-mail or United States mail. The appropriate licensing board or agency shall not be required to provide this or any similar notification.
History (1)
  • Acts 2016, ch. 1010, § 1.
§ 67-4-1713. Paper form submission in lieu of electronic filing for persons sixty-five plus.
  1. If the commissioner imposes an electronic filing or payment requirement on persons subject to the privilege tax levied by this part, then persons who are sixty-five (65) years of age or older may file the applicable document and submit payment in paper form. The commissioner may require that the paper filing or payment be accompanied by a manual handling fee in accordance with § 67-1-115.
History (1)
  • Acts 2024, ch. 672, § 1.
Part 19 Rental Car Tax
§ 67-4-1901. Collection and remittance of surcharge or tax — Definition.
  1. (a) Businesses engaged in the rental of motor vehicles shall collect and remit a three percent (3%) surcharge or tax on charges for the retail rental of any private passenger motor vehicle or a vehicle with a maximum gross weight rating classification of Class Four (4) or under as defined by § 55-4-113 or trailers as defined in § 55-1-105 for periods of thirty-one (31) days or less when the vehicle is delivered to the renter in this state. The surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales taxes imposed by chapter 6 of this title. The surcharge or tax as applied in this subsection (a) does not apply to entities or shared vehicle owners engaged in peer-to-peer car sharing or to any gross proceeds from peer-to-peer car sharing.
  2. (b) Any charges related to the rental, including gas, insurance, and other related charges shall be included in the gross proceeds subject to the surcharge or tax, whether or not set out in a separate contract. The surcharge or tax shall not be included in the tax base for purposes of taxes imposed by chapter 6 of this title.
  3. (c) As used in this part:
    1. (1) “Commissioner” means the commissioner of revenue;
    2. (2) “Peer-to-peer car sharing” means the authorized use of a vehicle by an individual other than the vehicle's owner through a peer-to-peer car sharing program;
    3. (3) “Peer-to-peer car sharing program” means a business platform that connects motor vehicle owners with drivers to enable the sharing of motor vehicles for financial consideration; and
    4. (4) “Shared vehicle owner” has the same meaning as defined in § 55-12-301.
  4. (d) Notwithstanding Section 2 of chapter 325 of the Public Acts of 2001, on or after April 14, 2016, the department of revenue shall not be required to submit a report to the finance, ways and means committees of the house of representatives and the senate concerning the revenue effects of the amendments made to this section by chapter 325 of the Public Acts of 2001.
Backlinks (3)
History (5)
  • Acts 1993, ch. 437, § 1
  • 1998, ch. 967, § 1
  • 2001, ch. 325, § 1
  • 2016, ch. 797, § 14
  • 2020, ch. 796, §§ 1, 2.
§ 67-4-1902. Filing of quarterly returns and remittances.
  1. Quarterly returns and remittances shall be filed by each business with the commissioner on or before the fifteenth day of the month following the close of the quarter, upon forms prescribed, prepared and furnished by the commissioner.
History (1)
  • Acts 1993, ch. 437, § 1.
§ 67-4-1903. Credit against surcharge or tax.
  1. A credit shall be allowed against the surcharge or tax collected for county wheel taxes, municipal fees and fees for registration, title, data processing and transaction and clerk's fees for issuance of documents. The credit shall be calculated on an annual basis for all county wheel taxes, municipal fees and fees for registration, title, data processing and transaction and clerk's fees for issuance of documents paid for vehicles registered in Tennessee by the business.
Backlinks (2)
History (3)
  • Acts 1993, ch. 437, § 1
  • 1997, ch. 530, § 1
  • 1998, ch. 967, § 2.
§ 67-4-1904. Regulations.
  1. The commissioner shall promulgate those regulations necessary to implement this part.
History (1)
  • Acts 1993, ch. 437, § 1.
§ 67-4-1905. Disposition of revenues.
  1. (a) All revenue received by the commissioner from this surcharge or tax shall be deposited into the state general fund, except as provided in subsection (b).
  2. (b) In each fiscal year, one and one-half million dollars ($1,500,000) shall be allocated to the department of safety to be used exclusively to train, equip, and pay members of the Tennessee highway patrol.
History (2)
  • Acts 1993, ch. 437, § 1
  • 1997, ch. 530, § 2.
§ 67-4-1906. Exemptions.
  1. This part does not apply to the rental of motor vehicles to a church, or the rental of motor vehicles to a nonprofit religious organization that has received a determination of exemption from the internal revenue service under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)) and is currently operating under it; provided, that the church or nonprofit religious organization holds a current certificate of sales or use tax exemption from the department of revenue pursuant to § 67-6-322.
Backlinks (2)
History (1)
  • Acts 1994, ch. 835, § 1.
§ 67-4-1907. Local tax.
  1. (a) In addition to the state tax provided in § 67-4-1901, any county that meets the requirements of subsection (d) is authorized to levy a surcharge or tax of two percent (2%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck or trailer for periods of thirty-one (31) days or less; provided, that such surcharge or tax shall not apply to an automobile rented by an insurance company as a replacement vehicle for a policy holder or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is a party. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales taxes imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided in § 67-4-1906. The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue.
  2. (b) This tax or surcharge shall be in addition to any tax, fee or license imposed directly or indirectly.
  3. (c)
    1. (1) The tax shall be collected from the customer at the time of the presentation of the invoice for the rental, whether prior to delivery or after return of the vehicle.
    2. (2) Monthly returns and remittances shall be filed by each business with the county clerk not later than the twentieth day of each month for the preceding month upon forms prescribed, prepared and furnished by the county.
    3. (3) The county clerk in administering and enforcing the surcharge or tax shall additionally have those powers and duties with respect to collecting taxes as provided in this title, including, but not limited to, the collection of interest and penalties on businesses to the same extent and manner provided in § 67-4-1408 with respect to the hotel occupancy tax, or as otherwise provided by law.
  4. (d) All revenue received by the county from this surcharge or tax shall be deposited into a county fund entitled the NBA arena fund which shall be used for the purpose of paying the costs incurred in modification or construction of an arena facility for a National Basketball Association (NBA) member professional basketball team. In the event that a city within the county participates jointly with the county in the contribution of capital expenditures for construction of such an arena facility, the revenue from this surcharge or tax shall be applied and allocated as follows:
    1. (1) The revenue from such tax shall first be applied to payment of bonded indebtedness, principal and interest, including expenses of the bond sale or sales, incurred by both the county and the city, or by either of them, for construction of such facilities and such revenue shall be allocated between the county and the city in such amounts necessary to meet the fiscal debt service requirements each year of both if there are sufficient funds. Such allocation shall be based upon actual bonded indebtedness incurred for such purpose, without deduction or offset due to any grant, credit or benefit that either government entity may be entitled by law to receive in connection with, or as a result of, such capital expenditures, such as any grant, credit or benefit accruing under the federal housing and urban renewal statutes;
    2. (2) Beginning on June 30 of the first full year of collection of this tax and on the same date of each year thereafter, the county shall calculate and pay over to the city that amount due such city from the proceeds of this surcharge or tax during the fiscal year then ending. Revenue derived from the levy of this tax during the first year in which the tax is levied shall be carried over for use in the next ensuing fiscal year in the payment of the allocable amounts to the county and the city;
    3. (3) If, at the close of any fiscal year, the revenue from such tax shall not be sufficient to meet the total debt service of both the county and the city for bonded indebtedness incurred for construction of such arena facility, the available revenue from this tax shall be allocated between the county and the city in the same direct proportion as such bonded indebtedness of each bears to the total of such bonded indebtedness of both, calculated upon the basis of the total principal amount of all such bonds that have been issued by the county and the city at any time prior to the close of that fiscal year; provided, that the balance, if any, of such debt service of either the county or the city not paid by revenue of this tax at the end of each fiscal year shall be accumulated by each in a separate deficit account that shall bear simple interest at the same rate as the bonds issued by each such governmental entity for construction of such facilities;
    4. (4) If the revenue from such tax in any fiscal year exceeds the total of such debt service requirements for that year, such surplus revenue thus accruing may be retained by the county as a sinking fund for such future debt service requirements or such surplus may be applied to the reduction of the deficit accounts of the county and the city in the same proportion as provided in subdivision (d)(3);
    5. (5) In the event the total bonded indebtedness incurred for construction of such arena facility by either the county or the municipality shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, and some portion of such bonded indebtedness of one (1) governmental entity remains unpaid, then that governmental entity whose bonded indebtedness has been satisfied in full shall cease, for the time being, to share in the revenue of this tax, and the total revenue from this tax shall be applied toward payment of such outstanding bonded indebtedness of the other governmental entity. For purposes of this subdivision (d)(5) only, the bonded indebtedness of either the county or the city shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligations may have been paid in part from sources other than the revenue from this tax.
  5. (e) Upon the total of such bonded indebtedness of both the county and the city being paid in full, including principal and interest, and including expenses of the bond sale or sales, then the revenue from this surcharge or tax, together with any surplus revenue accumulated in accordance with subdivision (d)(4), shall next be applied to the county and the city's accumulated deficit accounts as provided in subdivision (d)(3). For purposes of this subsection (e) only, the revenue and surplus, if any, shall be allocated between the county and the city in the same direct proportion that such deficit account of each bears to the total of such deficit accounts of both governmental entities. Upon one (1) of such governmental entities being reimbursed in full, including principal and interest on such deficit account, with a balance of the deficit account of the other governmental entity remaining unreimbursed, then the total revenue from this surcharge or tax shall, for the time being, be applied to reimbursement of the deficit account of that governmental entity whose account remains unpaid.
  6. (f) When both the county and the municipality shall have been reimbursed in full for principal and interest for such deficit accounts, in accordance with subsection (e), then the revenue from this tax shall next be applied to reimburse both the county and the city for capital expenditures for construction of such facilities made from sources other than the proceeds of bonded indebtedness, including, but not limited to, capital expenditures made from general revenues, sinking funds for capital improvements, and contributions in-kind of real or personal property. For purposes of this subsection (f) only, the revenue from this tax or surcharge, together with and including any surplus in the NBA arena fund, shall be allocated fifty percent (50%) to the county and fifty percent (50%) to the city. When either of such governmental entities shall be reimbursed in full for all such capital expenditures for construction of such facilities, then the total revenue from this tax or surcharge shall be applied to reimbursement of the other governmental entity for such capital expenditures. Upon both the county and the municipality being reimbursed in full for capital expenditures for construction of such facilities, the county's taxing resolution shall be repealed and this surcharge or tax shall no longer be levied; provided, that any funds remaining in the NBA arena fund, after all obligations imposed under this section shall have been fulfilled, shall be paid over to any governmental board or agency responsible for operation of the arena facility for use by it in the promotion and advertisement of the auditorium convention center facilities.
  7. (g) Notwithstanding any other provision of this section to the contrary, in the event that the county and a city within the county shall create or have created a sports authority pursuant to title 7, chapter 67, and such sports authority issues bonds, including refunding bonds, for the purpose of paying the costs incurred in the modification or construction of an arena facility for an NBA member professional basketball team, then all revenues received by the county from the surcharge or tax deposited into the NBA arena fund shall be transferred no less than monthly to a fund of the sports authority to be applied to the punctual payment of the principal and interest on such bonds, required reserves, administrative costs, and capital repair or improvement costs payable by the sports authority in connection with the arena facilities. In the event the revenue from such tax deposited with the sports authority in any fiscal year exceeds the payment of principal and interest on such bonds, required reserves, administrative costs and capital repair or improvement costs payable by the sports authority in such year, then such surplus revenue shall be deposited with the sports authority to be held in a fund to be applied to such future costs of the sports authority. In the event the total bonded indebtedness incurred for the construction of such arena facility by the sports authority shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales and other remaining costs payable by the sports authority in connection with such arena facility, then the total revenue from this tax shall be applied in the manner set forth in subsection (d), and shall terminate at the time set forth in subsection (f). For purposes of this subsection (g) only, the bonded indebtedness of the sports authority shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligation may have been paid in part from sources other than the revenue of this tax.
  8. (h) Notwithstanding this section or another law to the contrary, the allocation of revenue from the surcharge or tax provided in subsections (d)-(g) must continue until June 30, 2059.
History (3)
  • Acts 2001, ch. 344, § 1
  • 2002, ch. 492, §§ 1, 2
  • 2023, ch. 272, § 1.
§ 67-4-1908. Local tax for the convention center fund.
  1. (a)
    1. (1) In addition to the state tax provided in § 67-4-1901, a metropolitan government having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, is authorized to levy a surcharge or tax of one percent (1%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck, or trailer for a period of five (5) days or less; provided, that the surcharge or tax shall not apply to any automobile rented as a replacement vehicle, the cost of which is covered by insurance or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter’s vehicle is being repaired, replaced, or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is the renter. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales tax imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided by § 67-4-1906. The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue and of the remainder of this chapter.
    2. (2) The surcharge or tax in subdivision (a)(1) shall only be effective upon the adoption of an ordinance by the metropolitan council to impose the surcharge or tax.
  2. (b) All revenue received by the metropolitan government from the surcharge or tax in subsection (a) shall be deposited into a metropolitan fund entitled “the convention center fund,” which shall be used for the purpose of paying costs incurred in modification or construction of a publicly owned convention center in excess of four hundred million dollars ($400,000,000) of cost within the territory of the metropolitan government. If the revenue from the surcharge or tax in any fiscal year exceeds the total of the debt service requirements for that year, the surplus revenue thus accruing shall be retained by the metropolitan government as a reserve fund for future debt service requirements.
  3. (c) In the event the total bonded indebtedness incurred for the construction of the convention center facility by the metropolitan government shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, the metropolitan government’s taxing resolution shall be repealed and this surcharge or tax shall no longer be levied; provided, however, that any funds remaining in the reserve fund after all obligations imposed under this section have been fulfilled, shall be used by the governmental board or agency responsible for operation of the convention center for use by it in the promotion and advertisement of the convention center facilities.
  4. (d) For the purposes of this section, “convention center” means any land, improvement, structure, building or part of a building comprised of facilities for conventions, public assemblies, conferences, trade exhibitions or other business, social, cultural, scientific and public interest events, along with any associated hotel accommodations; transportation infrastructure; tourism, theatre, retail business and commercial office space facilities; parking facilities or any other structure or facility constructed, leased, equipped, renovated or acquired for any of the purposes set forth in this chapter, and also includes, but is not limited to, parks, greenways, open spaces, roads, streets, highways, curbs, bridges, flood control facilities and utility services, such as water, sanitary sewer, electricity, gas and natural gas and telecommunications that are constructed, leased, equipped, renovated or acquired as a supporting system or facility for any of the purposes set forth in title 7, chapter 89; provided, that any such supporting system or facility is dedicated for public use.
History (2)
  • Acts 2007, ch. 422, § 5
  • 2009, ch. 474, § 8.
Part 20 Excise Tax Law of 1999
§ 67-4-2001. Short title.
  1. This part shall be known and may be cited as the “Excise Tax Law of 1999.”
History (1)
  • Acts 1999, ch. 406, § 3.
§ 67-4-2002. Tax for state purposes only.
  1. The tax imposed in this part is a state tax for state purposes only and no county, municipality or taxing district shall have power to levy any like tax.
History (1)
  • Acts 1999, ch. 406, § 3.
§ 67-4-2003. Administration by department of revenue — Forms and reports.
  1. (a) The supervision and collection of the tax imposed by this part is under the direction of the department of revenue, and such department has the authority and power to prescribe forms upon which entities liable for 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 entities.
  2. (b) The commissioner may, within the commissioner's discretion, require any taxpayer to file with its Tennessee excise tax return, a copy of the federal tax forms filed with the internal revenue service for the same tax year.
  3. (c) All persons subject to the tax imposed by this part shall register with the department of revenue by completing and filing a registration information form prescribed by the department. Such form shall be filed with the department within sixty (60) days after July 1, 1999, or within fifteen (15) days after the date the person becomes subject to the tax, whichever date occurs last; provided, that persons registered under prior law, or who have filed a return under prior law, are not required to register for the tax imposed by this part.
History (1)
  • Acts 1999, ch. 406, § 3.
§ 67-4-2004. Parts 20 and 21 definitions.
  1. As used in parts 20 and 21 of this chapter, unless the context otherwise requires:
    1. (1)
      1. (A) “Affiliate” means any entity:
        1. (i) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest;
        2. (ii) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or
        3. (iii) In which an entity described in subdivision (1)(A)(ii), directly or indirectly, has more than fifty percent (50%) ownership interest;
      2. (B) For purposes of this subdivision (1), a noncorporate entity is more than fifty percent (50%) 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;
      3. (C) For purposes of this subdivision (1), an entity described in subdivision (1)(A)(ii) can include a natural person, and for such purposes, indirect ownership by an individual includes ownership by any family member of the individual, which means, with respect to the individual:
        1. (i) An ancestor of the individual;
        2. (ii) The spouse or former spouse of the individual;
        3. (iii) A lineal descendant of the individual, of the individual's spouse or former spouse, or of a parent of the individual;
        4. (iv) The spouse or former spouse of any lineal descendant described in subdivision (1)(C)(iii); or
        5. (v) The estate or trust of a deceased individual who, while living, was as described in any of the subdivisions (1)(C)(i)-(iv);
    2. (2)
      1. (A) “Affiliated group” means:
        1. (i) A taxpayer that, standing alone, is subject to the Tennessee franchise tax;
        2. (ii) All other domestic persons in which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest;
        3. (iii) All other domestic persons that, directly or indirectly, have more than fifty percent (50%) ownership interest in the taxpayer; and
        4. (iv) All other domestic persons in which a person described in subdivision (2)(A)(iii), directly or indirectly, has more than fifty percent (50%) ownership interest, regardless of whether such persons do business in Tennessee;
      2. (B) For purposes of this subdivision (2), a noncorporate taxable entity is more than fifty percent (50%) owned, if, upon liquidation more than fifty percent (50%) of the assets of the noncorporate taxable entity, directly or indirectly, accrue to a member or members of the affiliated group;
    3. (3) “Average occupational wage” means the average wage for all industries as reported by the department of labor and workforce development in the most recent annual quarterly census of employment and wages super sector data for the state, aggregate of all ownerships;
    4. (4) “Business earnings” mean earnings arising from transactions and activity in the regular course of the taxpayer's trade or business or earnings from tangible and intangible property, if the acquisition, use, management or disposition of the property constitutes an integral part of the taxpayer's regular trade or business operations. In essence, earnings that arise from the conduct of the trade or trades or business operations of a taxpayer are “business earnings,” and the taxpayer must show by clear and cogent evidence that particular earnings are classifiable as nonbusiness earnings. A taxpayer may have more than one (1) regular trade or business in determining whether income is “business earnings.” This subdivision (4) expresses the legislative intent to implement and clarify the distinctions between business and nonbusiness earnings, as found in the Uniform Division of Income for Tax Purposes Act, as generally interpreted by states adopting the act;
    5. (5)
      1. (A) “Business of a financial institution” means:
        1. (i) The business that a regulated financial corporation may be authorized to do under state or federal law or the business that its subsidiary is authorized to do by the proper regulatory authorities;
        2. (ii) The business that any person organized under the authority of the United States or organized under the laws of any other taxing jurisdiction or country does or has authority to do that is substantially similar to the business that a corporation may be created to do under title 45, or any business that a corporation or its subsidiary is authorized to do by title 45;
        3. (iii) Otherwise making, acquiring, selling or servicing loans or extensions of credit, including, but not limited to, the following:
          1. (a) Secured or unsecured consumer loans;
          2. (b) Installment loans;
          3. (c) Mortgages or deeds of trust or other secured loans on real or tangible personal property;
          4. (d) Credit card loans;
          5. (e) Secured or unsecured commercial loans of any type;
          6. (f) Letters of credit and acceptance of drafts;
          7. (g) The holding of participation loans in which more than one (1) lender is a creditor to a common borrower;
          8. (h) Loans arising in factoring; and
          9. (i) Any other transactions of a comparable economic effect;
        4. (iv) Leasing or acting as an agent, broker or adviser in connection with leasing real and personal property that is the economic equivalent of an extension of credit; or
        5. (v) Operating a credit card business;
      2. (B) Notwithstanding subdivision (5)(A), if the business of a financial institution generates less than fifty percent (50%) of a person's gross income, the person shall not be considered to be a financial institution under subdivision (17). For purposes of this subdivision (5)(B), the computation of gross income of a person does not include income from nonrecurring, extraordinary transactions;
    6. (6) “Campus affiliate” means any person within the footprint of a project site, as determined by the commissioner of revenue, that directly or indirectly owns a material interest in a person that qualifies for, or controls, is owned or controlled by, or under common control with a person that qualifies for the credits provided in § 67-4-2109(b)(2)(B)(i) in connection with a required capital investment in excess of one billion dollars ($1,000,000,000) and the credits provided in § 67-4-2109(m)(3). For such purpose “material interest” means the direct or indirect beneficial ownership, as defined in Rule 13d-3, 17 CFR 240.13d-3, under the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.), of voting securities or other voting interests representing at least ten percent (10%) of the outstanding voting power or equity securities or other equity interests representing at least ten percent (10%) of the outstanding equity securities, or equity interests; and “control,” including “controlling”, “controlled by”, and “under common control with,” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract or otherwise, and shall be construed as “control” is used in the rules promulgated under the Securities Act of 1933 (15 U.S.C. § 77a et seq.);
    7. (7) “Captive real estate investment trust” or “captive REIT” means an entity with an election in effect under § 856(c)(1) of the Internal Revenue Code (26 U.S.C. § 856(c)(1)), in which any other entity or individual, directly or indirectly, has at least eighty percent (80%) ownership interest by value determined in accordance with generally accepted accounting principles and whose shares are not traded on a national stock exchange;
    8. (8) “Captive REIT affiliated group” means a captive REIT and any entity in which the captive REIT, directly or indirectly, has more than fifty percent (50%) ownership interest; provided, however, that a “captive REIT affiliated group” does not include a group in which the captive REIT is owned, directly or indirectly, by a bank, a bank holding company, or a public REIT;
    9. (9) “Certified green energy production facility” means:
      1. (A) A facility certified by the department of environment and conservation as producing or storing electricity using clean energy technology. For the purposes of this subdivision (9)(A), clean energy technology means technology used to generate energy from geothermal, hydrogen, solar, and wind sources;
      2. (B) A facility certified by the department of environment and conservation as an alternative motor vehicle fueling station that utilizes natural gas in compressed or liquid form for the purpose of fueling motor vehicles and that is projected to displace more than six thousand gallons (6,000 gals.) of petroleum annually; or
      3. (C) A facility which utilizes natural gas in a combined heat and power configuration (CHP) for production of heat and electricity for consumption onsite;
    10. (10) “Commercial domicile” means the principal place from which the trade or business of a business entity is directed or managed;
    11. (11) “Commissioner” means the commissioner of revenue;
    12. (12) “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services;
    13. (13) “Department” means the department of revenue;
    14. (14)
      1. (A) “Doing business in Tennessee” or “doing business within this state” means any activity purposefully engaged in within Tennessee, by a person with the object of gain, benefit, or advantage, consistent with the intent of the general assembly to subject such persons to the Tennessee franchise/excise tax to the extent permitted by the United States Constitution and the Constitution of Tennessee;
      2. (B) A financial institution shall be presumed, subject to rebuttal, to be doing business in this state, if the sum of its assets and the absolute value of its deposits attributable to sources within this state is five million dollars ($5,000,000) or more. For purposes of this part, tangible assets shall be attributable to this state, if they are located in this state. Intangible assets shall be attributable to this state if the income earned on those assets is attributable to this state pursuant to this part. Deposits shall be attributed to this state, if they are deposits made by this state or any of its agencies, instrumentalities or subdivisions or by any resident of this state, regardless of whether the deposits are accepted or maintained at locations in this state. Additionally, a financial institution shall be deemed to be doing business in this state, if the institution:
        1. (i) Maintains an office in this state;
        2. (ii) Has an employee, representative or independent contractor conducting business in this state;
        3. (iii) Regularly sells products or services of any kind or nature to customers in this state that receive the product or service in this state;
        4. (iv) Regularly solicits business from potential customers in this state;
        5. (v) Regularly performs services outside this state that are consumed in this state;
        6. (vi) Regularly engages in transactions with customers in this state that involve intangible property, including loans, and result in receipts flowing to the taxpayer from within this state;
        7. (vii) Owns or leases property located in this state; or
        8. (viii) Regularly solicits and receives deposits from customers in this state;
      3. (C) Notwithstanding any other law to the contrary, a financial institution is not considered to be conducting the business of a financial institution in this state, if the only activity of the financial institution in this state is the ownership of an interest in one (1) or more of the following types of property, including those activities within this state that are reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property or the income from it, the collection of income from the property, or the acquisition or liquidation of collateral relating to the property:
        1. (i) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company as those terms are defined by the Internal Revenue Code of 1986;
        2. (ii) An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates;
        3. (iii) An interest in a loan, lease, note or other assets attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner;
        4. (iv) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner;
        5. (v) An interest in demand deposit clearing accounts, federal funds, certificates of deposit and other similar wholesale banking instruments issued by other financial institutions;
        6. (vi) An interest in a security; or
        7. (vii) An interest of a financial institution in any intangible, tangible, real or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation that is in default, whether secured or unsecured, if the ownership of the interest would be exempt otherwise as provided in subdivisions (14)(C)(i)-(v);
      4. (D) For the purposes of subdivisions (14)(C)(iii) and (iv), an “independent person who is not acting on behalf of the owner” means:
        1. (i) At the time of the acquisition of the assets, the owner of the asset does not directly or indirectly own fifteen percent (15%) or more of the outstanding stock or, in the case of a partnership or limited liability company, fifteen percent (15%) or more of the capital or profits interest, of the entity from which the owner originally acquired the asset. In determining indirect ownership, an owner is deemed to own all of the stock, capital interest or profits interest owned by another person if the owner directly owns fifteen percent (15%) or more of the stock, capital interest or profits interest in that other person. Also, the owner is deemed to own all stock, capital interest and profits interest directly owned by any intermediary parties in the transaction, to the extent a fifteen percent (15%) or more chain of ownership of stock, capital interest or profits interest exists between the owner and any intermediary party;
        2. (ii) The entity from which the owner acquired the asset regularly sells, assigns or transfers interest in such assets to three (3) or more persons during the full twelve-month period immediately preceding the month of acquisition; and
        3. (iii) The entity from which the owner acquired the asset does not sell, assign or transfer ninety percent (90%) or more of its exempt assets to the owner during the full twelve-month period immediately preceding the month of acquisition;
      5. (E) A person shall not be considered to be “doing business in Tennessee” or “doing business within this state” for purposes of this part or part 21 of this chapter solely because of any one (1) of the following activities:
        1. (i) The presence of employees and/or product samples and/or other promotional materials at one (1) or more trade shows, exhibits, conventions, or similar events in this state for a total of not more than twenty (20) days per calendar year; provided, that the activities of the entity's employees while in Tennessee are limited to maintaining or facilitating the trade show or convention; the purchasing of goods on behalf of their employer; the solicitation of sales; and the gathering of samples, promotional material or other information offered at the event;
        2. (ii) Activities by publishers of magazines and books who contract with Tennessee printers for the printing of their magazines or books, when such activities in Tennessee are limited solely to activities having to do with the printing, storage, labeling and/or delivery to the United States mail or common carrier of such magazines or books; or the maintenance of raw materials with respect to such activities; or the maintenance of employees solely in connection with the production and quality control of such printing, storage, labeling and/or delivery; provided, that the publisher and printer are not affiliated with one another. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent;
        3. (iii) Physical presence in this state of an out-of-state person's equipment, tooling, inventory, and employees on a temporary basis, when:
          1. (a) The activity in which such items and employees are engaged is not the pursuit, creation or maintenance, by the out-of-state person or any person that is affiliated with it, of a market in this state;
          2. (b) The equipment and tooling are not used, worked on or held in this state by a person that is affiliated with the out-of-state person;
          3. (c) The out-of-state person's employees have no control over the use or work done in this state by the in-state person; and
          4. (d) The extent and value of such items, the number of such employees, and the number of days the employees work in this state, in light of all the facts and circumstances, are qualitatively and quantitatively de minimis. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; or
        4. (iv) The temporary presence in this state of employees solely for the purpose of purchasing goods from vendors in this state for use in the employer's business out-of-state; provided, that the total number of days the employer has one (1) or more employees present in this state does not exceed thirty (30) per calendar year; and provided, further, that the employer does not furnish, directly or indirectly, any office in this state for their use;
    15. (15) “Domestic person” means any person with more than twenty percent (20%) of the average of its property, payroll and receipts factors, as each factor is calculated for a separate entity under § 67-4-2111, in the United States;
    16. (16) “Final return status” means the status of any person or taxpayer that has commenced the process of effecting a surrender of charter, withdrawal of qualification to do business in this state, merger, consolidation, liquidation, complete sale, transfer or distribution of assets, conversion, dissolution, or any similar event that results in, or is intended to result in, the taxpayer ceasing to exist, or no longer being subject to the tax imposed by this part, or no longer having any substantial remaining business or financial activity;
    17. (17) “Financial institution” means a holding company, any regulated financial corporation, a subsidiary of a holding company or a regulated financial corporation, an investment entity that is indirectly more than fifty percent (50%) owned by a holding company or a regulated financial corporation, or any other person that is carrying on the business of a financial institution. However, “financial institution” does not include insurance companies subject to tax under §§ 56-4-201 — 56-4-208, [former] 56-4-209 [repealed], 56-4-210 — 56-4-214;
    18. (18) “Financial institution affiliated group” means any affiliated group in which more than fifty percent (50%) of the group's aggregate gross income, excluding dividends and receipts resulting from transactions between members, is derived from conducting the business of a financial institution as defined in subdivision (5)(A). For purposes of this subdivision (18), the computation of gross income of a member does not include income from nonrecurring, extraordinary transactions;
    19. (19) “General partnership” means a partnership in which all partners, as defined by state law, are fully liable for the debts of, or the claims against, the partnership. For purposes of this subdivision (19), partners may be “fully liable” even though one (1) or more persons or individuals dealing with the partnership have by contract agreed to limit their claims against one (1) or more partners or against the partnership as a whole;
    20. (20) “Gross receipts,” “total gross receipts,” “receipts,” and “total receipts” mean, within the context of the statute in which used, all receipts from whatever sources derived before any deductions, but not including actual sales returns and allowances;
    21. (21) “Holding company” means any corporation defined as a “bank holding company” under 12 U.S.C. § 1841(a) of the Bank Holding Company Act of 1956 (12 U.S.C. § 1841 et seq.) or any corporation defined as a “savings and loan holding company,” “multiple savings and loan holding company,” or “diversified savings and loan holding company,” under 12 U.S.C. § 1467a(a)(1);
    22. (22) “Hospital” has the definition provided at § 68-11-201; provided, that, as used in this part, a “hospital” must be licensed as a hospital by the board of licensing health care facilities pursuant to title 68, chapter 11, part 2; and provided, further, that “hospital” does not include a nursing home, ambulatory surgical treatment center or other health care facility enumerated and defined in title 68, chapter 11, unless operated as a part of and in connection with a “hospital”;
    23. (23) “Hospital company” means a corporation or other entity subject to the taxes imposed under this part and part 21 of this chapter and that qualified before January 1, 1999, with the department as a hospital company as defined under prior law;
    24. (24)
      1. (A) “Intangible expense” means an expense related to, or in connection with, the acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are allowed or allowable as deductions or costs in determining federal taxable income on a separate entity basis;
      2. (B) “Intangible expense” also means interest expenses directly or indirectly allowed as deductions or costs in determining federal taxable income on a separate entity basis to the extent such interest expenses are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property;
    25. (25) “Intangible income” means income related to, or in connection with, the acquisition, use, maintenance or management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are included or includable in determining federal taxable income;
    26. (26) “Intangible property” means patents, patent applications, trade names, trademarks, service marks, franchise rights, copyrights, licenses, research, formulas, designs, patterns, processes, formats, and similar types of intangible assets;
    27. (27) “Internal Revenue Code” means title 26 of the United States Code as effective during the year in which net earnings are determined under this part;
    28. (28) “Investment entity” means any person that receives more than fifty percent (50%) of its gross income from investment securities and from the business of a financial institution;
    29. (29) “Investment securities” means, for purposes of this section, any note, United States treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate debt securities, participations in securities backed by mortgages held by the United States or state government agencies, loan-backed securities, bonds, debentures, evidence of indebtedness, and other similar debt investments;
    30. (30) “Key tenant” means any tenant, located within a qualified medical trade center, that leases and occupies a significant portion of the facility and is determined, in the sole discretion of the commissioner of economic and community development and the commissioner of revenue, to be essential to the initial establishment and viability of the trade center;
    31. (31) “Nonbusiness earnings” means all earnings other than business earnings;
    32. (32) “Not-for-profit” means any person described in § 401, § 408, § 408A, § 409, § 501, § 526, § 527, § 528, § 529 or § 530 of the Internal Revenue Code (26 U.S.C. § 401, § 408, § 408A, § 409, § 501, § 526, § 527, § 528, § 529 or § 530);
    33. (33) “Obligated member” means a member or partner of an obligated member entity that is fully liable for the debts, obligations and liabilities of the entity, as provided in § 67-4-2008(b)-(d), and that has filed appropriate documentation to that effect with the secretary of state;
    34. (34) “Obligated member entity” means a limited liability company, limited partnership or limited liability partnership, all of whose members or partners are fully liable for the debts, obligations and liabilities of the entity, as provided in § 67-4-2008(b)-(d), and that have filed appropriate documentation to that effect with the secretary of state;
    35. (35) “Pass-through entity” means an S corporation, an entity treated as a partnership for federal income tax purposes, an entity treated as a trust for federal income tax purposes or a business entity that has a single owner and that is disregarded as an entity separate from its owner for federal income tax purposes, but not for purposes of this part and part 21 of this chapter;
    36. (36) “Person” or “taxpayer” means every corporation, subchapter S corporation, limited liability company, professional limited liability company, registered limited liability partnership, professional registered limited liability partnership, limited partnership, cooperative, joint-stock association, business trust, regulated investment company, REIT, state-chartered or national bank, or state-chartered or federally chartered savings and loan association;
    37. (37) “Publicly traded real estate investment trust” or “public REIT” means an entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code that files with the securities and exchange commission and whose shares are traded on a securities exchange that is either registered as a national securities exchange with the securities and exchange commission under § 6 of the Securities Exchange Act of 1934 (15 U.S.C. § 78f) or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority;
    38. (38) “Qualified commercial financing entity” means a person that qualified for the credit in § 67-6-224 that primarily finances wholesale and retail transactions related to the purchase or lease of industrial equipment, machinery, vehicles, or goods manufactured by its affiliates and is certified for that designation by the commissioner of revenue and the commissioner of economic and community development. Notwithstanding § 47-14-103, a qualified commercial financing entity shall be allowed to charge a rate of interest not to exceed twenty-four percent (24%) per annum;
    39. (39) “Qualified medical trade center” means any facility, located in a county with a metropolitan form of government, that is substantially composed of permanent and temporary show rooms for medical product suppliers as well as educational space and conference facilities for medical trade shows; provided, that such facility is constructed, expanded, or remodeled through an investment of more than two hundred fifty million dollars ($250,000,000) and contains more than one million square feet (1,000,000 sq. ft.) of space upon completion;
    40. (40) “Qualified medical trade center relocation expenses” means those expenses that both the commissioner of revenue and the commissioner of economic and community development determine, in their sole discretion, are necessary to the creation of a permanent show room within a qualified medical trade center in conjunction with the initial establishment of such facility;
    41. (41) “Qualified new or expanded warehouse or distribution facility” means a new or expanded facility for the storage or distribution of finished tangible personal property; provided, that the facility also meets all the qualifications necessary to allow the taxpayer to make purchases of material handling and racking systems exempt from sales and use tax under the definition of “industrial machinery” in § 67-6-102;
    42. (42) “Real estate investment trust (REIT)” means an entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code;
    43. (43) “Regulated financial corporation” means an institution, the deposits, shares, or accounts of which are insured under the Federal Deposit Insurance Act (12 U.S.C. § 1811 et seq.) or any institution that is a member of a federal home loan bank, any other bank or thrift institution incorporated or organized under the laws of any taxing jurisdiction, or any foreign country that is engaged in the business of receiving deposits, any corporation organized under 12 U.S.C. §§ 611-631, Edge Act corporations, and any agency of a foreign depository as defined in 12 U.S.C. § 3101;
    44. (44) “Sales” means all gross receipts of the taxpayer not allocated under this part;
    45. (45) “Securities” means United States treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate stock and other securities, participations in securities backed by mortgages held by the United States or state government agencies, loan-backed securities and similar investments;
    46. (46) “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof;
    47. (47)
      1. (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 and part 21 of this chapter. Such connection includes, but is not limited to, the following:
        1. (i) The taxpayer is organized or commercially domiciled in this state;
        2. (ii) The taxpayer owns or uses its capital in this state;
        3. (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state;
        4. (iv) The taxpayer licenses intangible property for use by another party in this state and derives income from that use of intangible property in this state; or
        5. (v) 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:
          1. (a) The taxpayer's total receipts in this state during the tax period, as determined under § 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;
          2. (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 under § 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
          3. (c) The total amount paid in this state during the tax period by the taxpayer for compensation, determined under § 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;
      2. (B) Notwithstanding subdivision (47)(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”;
      3. (C) To the extent a company that is treated as a foreign corporation under the Internal Revenue Code has income effectively connected with a United States trade or business, such company's net earnings and net worth for purposes of the taxes imposed by this part and part 21 of this chapter shall be its net earnings and net worth connected with its United States trade or business, and only property used in, payroll attributable to, and receipts effectively connected with such company's United States trade or business shall be considered for purposes of calculating such company's apportionment fraction;
      4. (D) For purposes of subdivisions (47)(B) and (C), whether a company has income effectively connected with a United States trade or business and the amount of its net earnings and net worth connected with its United States trade or business shall be determined in accordance with the Internal Revenue Code;
    48. (48) “Taxing jurisdiction” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico or a territory or possession of the United States;
    49. (49) “Tennessee historic property preservation or rehabilitation entity” means an entity that satisfies all of the following requirements:
      1. (A) The Tennessee historic property preservation or rehabilitation entity must be a corporation or limited liability company organized under the laws of Tennessee, that is directly or indirectly controlled by a not-for-profit entity, as defined in this part. Such not-for-profit entity must directly or indirectly hold not less than fifty-one percent (51%) of the Tennessee historic property preservation or rehabilitation entity's ownership interest and voting control;
      2. (B) The Tennessee historic property preservation or rehabilitation entity must be organized for the purpose of preserving or rehabilitating an historic property listed on the National Register of Historic Places;
      3. (C) The not-for-profit entity must receive approval of its historic certification application—Part 3 by the United States department of the interior national park service; and
      4. (D) The historic property must be used in the performance of the exempt activity or function of the controlling not-for-profit entity; and
    50. (50) “Unitary business” or “unitary group” means business activities or operations of financial institutions that are of mutual benefit, dependent upon, or contributory to one another, individually or as a group, in transacting the business of a financial institution. “Unitary business” may be applied within a single legal entity or between multiple entities. “Unitary business” or “unitary group” includes those entities that are engaged in a unitary business transacted wholly in, or in and out of the state of Tennessee, even if some of the entities would not be subject to tax in this state, if considered apart from their unitary group.
Backlinks (33)
History (18)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 982, §§ 1-7, 45
  • 2003, ch. 355, §§ 37, 39-41
  • 2003, ch. 418, §§ 10, 12-14
  • 2004, ch. 924, § 1
  • 2004, ch. 932, § 1
  • 2005, ch. 499, §§ 2, 29, 75, 86
  • 2006, ch. 1019, §§ 6, 11, 30, 31
  • 2007, ch. 602, § 7
  • 2008, ch. 1106, §§ 35, 45
  • 2009, ch. 530, §§ 26, 34, 105
  • 2010, ch. 1134, §§ 5, 6, 20, 24, 38
  • 2012, ch. 842, § 1
  • 2013, ch. 321, § 1
  • 2013, ch. 423, § 5
  • 2015, ch. 504, §§ 2, 3
  • 2015, ch. 514 § 6
  • 2022, ch. 1139, § 1.
§ 67-4-2005. Doing business in state is taxable privilege.
  1. Doing business in Tennessee by any person or taxpayer, and/or exercising the corporate franchise, is declared to be a taxable privilege. The tax is an accrued tax and is imposed for the exercise of the specified privilege during the period that coincides with the tax year covered by the return required.
History (1)
  • Acts 1999, ch. 406, § 3.
§ 67-4-2006. “Net earnings” and “net loss” defined.
  1. (a)
    1. (1) For a corporation or any other taxpayer treated as a corporation for federal tax purposes, including any limited liability company treated as a corporation for federal income tax purposes, or any other taxpayer required to file a federal income tax return on a federal form 1120 or any variation of that form, except for a corporation electing S corporation status under 26 U.S.C. §§ 1361-1363, and except for a unitary business as is defined in § 67-4-2004, “net earnings” or “net loss” is defined as federal taxable income or loss before the operating loss deduction and special deductions provided for in [former] 26 U.S.C. §§ 241, 242 [repealed], 243-247, and as adjusted by subsections (b) and (c).
    2. (2) For a corporation electing S corporation status under 26 U.S.C. §§ 1361-1363, “net earnings” means federal taxable income calculated as if the corporation had not elected S status, taken before the operating loss deduction and special deductions provided for in [former] 26 U.S.C. §§ 241, 242 [repealed], 243-247 and 249-250, and subject to the adjustments in subsections (b) and (c).
    3. (3) For financial institutions that form a unitary business, as defined in § 67-4-2004, “net earnings” or “net loss” is defined as the combined net earnings or net loss, as defined in subdivision (a)(1), for all members of the unitary group, with all dividends, receipts and expenses resulting from transactions between members of the unitary group excluded when computing combined net earnings, and subject to the adjustments in subsections (b) and (c) on a combined basis, even if some of the members would not be subject to taxation under this part, if considered apart from their unitary group.
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    4. (4) In the case of a person or taxpayer treated as a partnership for federal tax purposes, or any other person required to file a federal partnership return on a federal form 1065 or any variation of that form, including, but not limited to, limited liability companies, “net earnings” or “net loss” is defined as an amount equal to:
      1. (A) The amount of ordinary income or loss determined under the applicable provisions of the Internal Revenue Code, including, but not limited to, guaranteed payments to partners and capital gains, which additional items are not already included in ordinary income or loss; less
      2. (B) The amount subject to self-employment taxes, without regard to any cap, distributable or paid to each partner or member; provided, that this amount shall not create or increase any net loss; less
      3. (C) The amount contributed to qualified pension or benefit plans, including all plans described in 26 U.S.C. § 401, of any partner or member; provided, however, that this amount shall not create or increase any net loss; and
      4. (D) As adjusted by subsections (b) and (c).
    5. (5)
      1. (A) In the case of a person or taxpayer treated as a partnership for federal tax purposes that is directly or indirectly owned by a public REIT, “net earnings” or “net loss” is defined as an amount equal to the amount determined pursuant to subdivision (a)(4), less the amount distributed either directly or indirectly to a public REIT; and
      2. (B) As adjusted by subsections (b) and (c).
    6. (6) Any law to the contrary notwithstanding, a single member limited liability company whose single member is a general partnership and that is disregarded for federal income tax purposes shall be subject to the taxes imposed by this part and part 21 of this chapter. The single member limited liability company's “net earnings” or “net loss” for excise tax purposes shall be determined in the same manner as set forth in subdivision (a)(4).
    7. (7) In the case of a single member limited liability company that is treated as an individual taxpayer for federal income tax purposes, “net earnings” or “net loss” means an amount equal to:
      1. (A) The amount of net profit or loss from all businesses engaged in by the taxpayer, determined by applicable provisions of the Internal Revenue Code as is reported on federal form 1040 or any variation of that form, and appropriate schedules, including any amount subject to self employment tax, without regard to any cap, and including the amount of any gains or losses from the sale of assets held or used in the business; less
      2. (B) The amount subject to self-employment taxes; provided, that this amount shall not create or increase any net loss;
      3. (C) As adjusted by subsections (b) and (c).
    8. (8) In the case of a business trust, or any other person doing business in Tennessee and not covered in subdivisions (a)(1)-(4), “net earnings” or “net loss” is defined as taxable income or loss determined under applicable provisions of the Internal Revenue Code, excluding any net operating loss deduction or special deductions similar to those provided for in 26 U.S.C. §§ 241, 243-247 and 249, as adjusted by subsections (b) and (c).
    9. (9) In the case of a captive REIT affiliated group, “net earnings” or “net loss” is defined as the combined net earnings or net loss, as defined in subdivision (a)(1), for all members of the affiliated group, with all dividends, receipts, and expenses resulting from transactions between members of the affiliated group excluded when computing combined net earnings, and subject to the adjustments in subsections (b) and (c) on a combined basis, even if some of the members would not be subject to taxation under this part if considered apart from the affiliated group.
    10. (10) Effective for tax years beginning on or after January 1, 2020, for purposes of computing “net earnings” or “net loss” under this subsection (a), Section 163(j) of the Internal Revenue Code of 1986, as amended, shall be applied as it existed and applied immediately before the enactment of the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97.
    11. (11) Effective for tax years beginning on or after January 1, 2022, for purposes of computing “net earnings” or “net loss” under this subsection (a), Section 174 of the Internal Revenue Code of 1986 (26 U.S.C. § 174), as amended, shall be applied as it existed and was applied immediately before the enactment of the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97.
    12. (12) For assets purchased on or after January 1, 2023, for purposes of computing “net earnings” or “net loss” under this subsection (a), Section 168 of the Internal Revenue Code of 1986 (26 U.S.C. § 168), as amended, shall be applied as it exists and applies under the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97.
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  2. (b)
    1. (1) There shall be added to a taxpayer's net earnings or net losses:
      1. (A) Excise tax imposed by this state to the extent deducted in determining net earnings;
      2. (B) Interest income from obligations defined in 26 U.S.C. § 103(a), reduced by allowable amortization, including any interest expense disallowed for federal purposes pursuant to 26 U.S.C. §§ 265 and 291;
      3. (C) Any deduction made pursuant to [former] 26 U.S.C. §§ 611-614, 615 [repealed], 616 and 617, to the extent the deduction, when added with similar deductions in prior years, exceeds the cost of the property;
      4. (D) The charitable contributions deduction claimed under 26 U.S.C. § 170;
      5. (E) Any capital loss carrybacks or carryovers, arising in the course of a trade or business and deducted pursuant to 26 U.S.C. § 1212(a);
      6. (F) Any gross premiums tax deducted in determining net earnings, but taken as a credit against the excise tax under § 67-4-2009(1);
      7. (G) Any expense or depreciation, permitted as a deduction in computing federal taxable income solely as a result of lease characterizations permitted under § 168 of the Economic Recovery Tax Act of 1981 that would not have been permitted in the absence of such act; it being the legislative intent that excise tax revenue not be reduced due to lease characterizations made for the purpose of transferring investment tax credits and depreciation allowances from one business entity to another;
      8. (H) For assets purchased on or before December 31, 2022, any depreciation that the taxpayer deducted in computing its federal taxable income in excess of that which the taxpayer could have deducted in computing such income, if the taxpayer had computed its depreciation under § 168 of the Internal Revenue Code as it existed and applied immediately prior to the passage of title 1, § 101, of the Job Creation and Worker Assistance Act of 2002;
      9. (I) Any gain not already included in the taxpayer's net earnings or loss on the sale of an asset distributed by the taxpayer to an entity or individual not otherwise subject to the tax imposed by this part, when such asset is sold within twelve (12) months of the date of distribution. Thus, in such a case, the gain for excise tax purposes is recognized by the taxpayer making the asset distribution rather than the seller. However, if the taxpayer making the asset distribution ceases to exist prior to the sale, the gain shall be reported and tax paid by the seller in accordance with § 67-4-2007(f);
      10. (J) Any net loss or any item of expense or loss that meets all of the following criteria:
        1. (i) Is included in the determination of the taxpayer's net earnings or loss;
        2. (ii) Is from a pass-through entity that is subject to and files a return for the tax imposed by this part; and
        3. (iii) Is allocated to a partner, shareholder, beneficiary or other owner of such pass-through entity;
      11. (K) Any otherwise deductible intangible expense paid, accrued or incurred in connection with a transaction with one or more affiliates;
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      12. (L) Any deduction made pursuant to 26 U.S.C. § 199;
      13. (M) In the case of a corporation that has elected S corporation status under 26 U.S.C. §§ 1361-1363, any gain that is not included in net earnings or loss and that is attributable to an election under 26 U.S.C. § 338(h)(10);
      14. (N) Any amount in excess of reasonable rent that is paid, accrued or incurred for the rental, leasing or comparable use of industrial and commercial property owned by an affiliate, whether or not the affiliate is subject to the tax imposed by this part. For purposes of this subdivision (b)(1)(N), “industrial and commercial property” has the same meaning as in § 67-5-501 and “reasonable rent” means rent that does not exceed two percent (2%) per month of the appraised value of the property under chapter 5 of this title. When any person fails to make the adjustment to net earnings or net losses required by this subdivision (b)(1)(N) and the failure is determined by the commissioner to be due to negligence, there shall be imposed a penalty equal to fifty percent (50%) of the amount of the adjustment required by this subdivision (b)(1)(N). The commissioner is authorized to waive the penalty, in whole or in part, for good and reasonable cause under § 67-1-803. This subdivision (b)(1)(N) shall not apply to “commercial and industrial tangible personal property” as defined in § 67-5-501;
      15. (O) Any deduction by a captive REIT for dividends paid, as defined under 26 U.S.C. § 561, that is allowed and taken under 26 U.S.C. § 857(b)(2)(B); provided, however, that this subdivision (b)(1)(O) shall not apply to a captive REIT that is owned, directly or indirectly, by a bank, a bank holding company, or a public REIT;
      16. (P) Five percent (5%) of the amount included in federal taxable income under 26 U.S.C. § 951A before the deduction in 26 U.S.C. § 250;
      17. (Q) Five percent (5%) of the amount included in federal taxable income under 26 U.S.C. § 965(a) before the deduction in 26 U.S.C. § 965(c); and
      18. (R) For tax years ending on or after December 31, 2023, but before December 31, 2025, any amount deducted under subdivision (b)(2)(F) relating to the federal employer tax credit in Section 45S of the Internal Revenue Code of 1986 (26 U.S.C. § 45S) and earned as a credit against the excise tax under § 67-4-2009;
    2. (2) There shall be subtracted from the net earnings and losses:
      1. (A) Dividends earned by a taxpayer who owns eighty percent (80%) or more of the outstanding capital stock of a corporation;
      2. (B) Any amount included in federal taxable income but not taxable under the laws of this state;
      3. (C) A portion of the gain or loss of the sale or other disposition of property having a higher basis for state excise tax purposes than federal income tax purposes measured by the difference in the state basis and the federal basis; provided, however, that there shall be no adjustment under this subdivision (b)(2)(C) as a result of the taxpayer not having been subject to the tax imposed by this part during any portion of the period during which the taxpayer took depreciation expense on the property for federal income tax purposes;
      4. (D) The actual charitable contributions made during the tax year by a taxpayer;
      5. (E) Any capital losses incurred during the fiscal year, arising in the course of a trade or business, and not deductible under 26 U.S.C. § 1211(a);
      6. (F) Any expense, other than income taxes, not deducted in determining federal taxable income for which a credit against the federal income tax is allowable;
      7. (G) Any amount included in federal taxable income solely as a result of lease characterizations permitted under § 168 of the Economic Recovery Tax Act of 1981 (26 U.S.C. § 168) that would not have been permitted in the absence of such act;
      8. (H) Any amount of depreciation or other expense that the taxpayer could have deducted in computing federal taxable income had it not made the election to enter into a lease transaction permitted under § 168 of the Economic Recovery Tax Act of 1981 that would not have been permitted in the absence of such act;
      9. (I) For assets purchased on or before December 31, 2022, any depreciation in excess of that which the taxpayer deducted in computing its federal taxable income that could have been deducted in computing such income if the taxpayer had computed its depreciation under § 168 of the Internal Revenue Code as it existed and applied immediately prior to the passage of title 1, § 101, of the Job Creation and Worker Assistance Act of 2002;
      10. (J) An amount equal to the difference, if any, between the reserve for bad debts allowed under 26 U.S.C. §§ 585 and 593, as such sections existed on December 31, 1986, and such reserve as it may have been modified subsequently;
      11. (K) Any loss on the sale of an asset not already included in the taxpayer's net earnings or loss distributed by a taxpayer treated as a partnership for federal tax purposes, by an S corporation or by a business trust, to a member, partner, shareholder or certificate holder, when such asset is sold within twelve (12) months of the date of distribution. Thus, in such a case, the loss for excise tax purposes is recognized by the entity making the asset distribution rather than by the seller;
      12. (L) Any net gain or any item of income that meets all of the following criteria:
        1. (i) Is included in the determination of the taxpayer's net earnings or loss;
        2. (ii) Is from a pass-through entity that is subject to and files a return for the tax imposed by this part; and
        3. (iii) Is allocated to a partner, shareholder, beneficiary or other owner of such pass-through entity;
      13. (M)
        1. (i) Seventy-five percent (75%) of the value of charitable donations, including those otherwise deductible under any other provision of this part, that are made to a qualified public school support organization and meet all of the following requirements:
          1. (a) For purposes of this subdivision (b)(2)(M), “qualified public school support organization” means an entity, other than a natural person, that is registered with the department for sales and use tax purposes pursuant to chapter 6 of this title and whose sole purpose is to promote and enhance Tennessee public schools;
          2. (b) The deduction provided by this subdivision (b)(2)(M) shall apply only in the tax year in which the qualified public school support organization certifies to the taxpayer making the donation that it has spent the donation to purchase goods or services subject to the tax imposed by chapter 6 of this title and upon which such tax has actually been paid. The taxpayer making the donation must maintain a copy of such certification to establish entitlement to the deduction;
          3. (c) Donations pursuant to this subdivision (b)(2)(M) must be monetary donations and not donations of goods or services;
          4. (d) The taxpayer making the donation shall not designate a specific child as the beneficiary of the donation;
          5. (e) Qualified public school support organizations receiving such donations must maintain adequate records to prove that the requirements of this subdivision (b)(2)(M) have been met, including proof in the form of invoices or other documentation to establish that the donation was used to purchase goods or services subject to the tax imposed by chapter 6 of this title and that such tax was actually paid; and
          6. (f) If the qualified public school support organization falsely certifies to the taxpayer making the donation that the donation has been spent and tax paid in the manner required by this subdivision (b)(2)(M), the qualified public school support organization shall be liable for the tax imposed by chapter 6 of this title, including applicable penalties and interest, as if the donation had been spent on items subject to that tax;
        2. (ii) The department of revenue is authorized to share with the department of education information necessary to effectuate the purposes of subdivision (b)(2)(M)(i). The department of education shall be bound by restrictions on disclosure of such information otherwise applicable to the department of revenue;
        3. (iii) The commissioner of revenue and the commissioner of education are authorized to promulgate rules and regulations to effectuate the purposes of this subdivision (b)(2)(M). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5;
      14. (N) Any intangible expense paid, accrued, or incurred in connection with a transaction with one (1) or more affiliates, if the intangible expense has been disclosed in accordance with subdivision (d)(1) and either of the following conditions are met:
        1. (i) The affiliate to whom the expense has been paid, accrued, or incurred is registered for and paying the tax imposed by this part; or
        2. (ii) The expense was paid, accrued, or incurred to an affiliate in a foreign nation that is a signatory to a comprehensive income tax treaty with the United States or to an affiliate that is otherwise not required to be registered for or to pay the tax imposed by this part;
      15. (O) Any intangible income included in the computation of a taxpayer’s net earnings that is accrued or earned in connection with a transaction with one (1) or more affiliates to the extent that the corresponding intangible expense is included in the affiliate’s Tennessee net earnings or net losses and is not deducted by the affiliate under subdivision (b)(2)(N);
      16. (P)
        1. (i) Seventy-five percent (75%) of the value of charitable donations, including those otherwise deductible under any other provision of this part, that are made to nonprofit corporations, associations and organizations that are exempt from federal income taxation under § 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)), to not-for-profit civic leagues or organizations that are exempt from federal income taxation under § 501(c)(4) of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(4)), and to associations and organizations that are exempt from federal income taxation under § 501(c)(5) of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(5)), and meet all of the requirements of this subdivision (b)(2)(P);
        2. (ii) The deduction provided by this subdivision (b)(2)(P) shall apply only in the tax year in which the qualified nonprofit corporation, association or organization certifies to the taxpayer making the donation that it has spent the donation to purchase goods or services subject to the tax imposed by chapter 6 of this title and upon which such tax has actually been paid. The taxpayer making the donation must maintain a copy of such certification to establish entitlement to the deduction;
        3. (iii) Donations pursuant to this subdivision (b)(2)(P) must be monetary donations and not donations of goods and services;
        4. (iv) The taxpayer making the donation shall not designate a specific purpose for the donation;
        5. (v) Qualified nonprofit corporations, associations and organizations receiving such donations must maintain adequate records to prove that the requirements of this subdivision (b)(2)(P) have been met, including proof in the form of invoices or other documentation to establish that the donation was used to purchase goods or services subject to the tax imposed by chapter 6 of this title and that such tax was actually paid;
        6. (vi) If the qualified nonprofit corporation, association or organization falsely certifies to the taxpayer making the donation that the donation has been spent and tax paid in the manner required by this subdivision (b)(2)(P), the qualified nonprofit corporation, association or organization shall be liable for the tax imposed by chapter 6 of this title, including applicable penalties and interest, as if the donation had been spent on items subject to the tax;
      17. (Q) In the case of a corporation that has elected S corporation status under 26 U.S.C. §§ 1361-1363, any loss that is not included in net earnings or loss and that is attributable to an election under 26 U.S.C. § 338(h)(10);
      18. (R) Any amount in excess of reasonable rent that is received or accrued for the rental, leasing, or comparable use of industrial and commercial property rented, leased, or otherwise provided to an affiliate; provided, however, that this subdivision (b)(2)(R) shall only apply to the extent the corresponding expense has been added to the net earnings or net losses of the affiliate in accordance with subdivision (b)(1)(N). For purposes of this subdivision (b)(2)(R), “industrial and commercial property” and “reasonable rent” shall have the same meaning as in subdivision (b)(1)(N);
      19. (S) Any amount that the taxpayer would have excluded from federal taxable income as a result of applying § 118 of the Internal Revenue Code as it existed and applied immediately before enactment of the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97;
      20. (T) Any amount included in federal taxable income under 26 U.S.C. § 951A, relating to federal taxation of global intangible low-taxed income, to the extent it would otherwise be included in net earnings or losses as defined in subsection (a);
      21. (U) Any amount included in federal taxable income under 26 U.S.C. § 965(a), relating to federal taxation of deferred foreign income, to the extent it would otherwise be included in net earnings or losses as defined in subsection (a);
      22. (V) Any amount received between March 1, 2020, and December 31, 2021, through the following programs funded by the coronavirus relief fund under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (15 U.S.C. §§ 9001 et seq.), including any extension or modification thereof, or funded by appropriations under other federal law under Title VI of the Social Security Act (42 U.S.C. §§ 301 et seq.), to mitigate the fiscal effects of COVID-19, to the extent such amount would otherwise be included in net earnings or loss as defined in subsection (a):
        1. (i) The Tennessee business relief program or the supplemental employer recovery grant program administered by the department of revenue;
        2. (ii) The coronavirus agricultural and forestry business fund administered by the department of agriculture;
        3. (iii) The hospital staffing assistance program or the emergency medical services ambulance assistance program administered by the department of health; or
        4. (iv) The Tennessee small and rural hospital readiness grants program administered by the departments of economic and community development and finance and administration;
      23. (W) Any amount received between March 1, 2020, and December 31, 2021, out of the additional funds allocated to the payments to states for the child care and development block grant under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (15 U.S.C. §§ 9001 et seq.), including any extension or modification thereof and the Further Consolidated Appropriations Act, 2020, Pub. L. 116-94, or received between March 1, 2020, and December 31, 2021, out of additional funds allocated to the payments to states for the child care and development block grant under other federal law enacted to mitigate the fiscal effects of COVID-19, and administered by the department of human services, to the extent such amount would otherwise be included in net earnings or net loss as defined in subsection (a); and
      24. (X) An amount equal to the lesser of net earnings or fifty thousand dollars ($50,000); provided, that this amount must not create or increase a net loss.
  3. (c)
    1. (1) A taxpayer's net earnings, or net loss, shall be determined under subsections (a) and (b) and shall be subject to further adjustments provided by this subsection (c). Taxpayers doing business both in and outside of Tennessee so as to be entitled to apportionment shall apportion such net earnings or net loss using the appropriate apportionment formula provided in this part. The taxpayer shall then deduct any loss carryovers, computed in accordance with this subsection (c), from its net earnings so determined.
    2. (2) In the case of taxpayers that were subject to the excise tax under prior law, any net qualified operating loss incurred for fiscal years ending on or after January 15, 1984, may be deducted. In the case of all other taxpayers, any net operating loss incurred for fiscal years ending on or after July 1, 1999, may be deducted. For this purpose, “net operating loss” is defined as the excess of allowable deductions over total income allocable to this state for the year of the loss. Qualified net operating losses may be carried forward and deducted in the next succeeding tax year or years in which the taxpayer has net income until fully utilized, but in no case for more than fifteen (15) years after the taxable year in which the net operating loss occurs. For fiscal years ending on or after July 15, 1990, in the case of a unitary business, as defined in § 67-4-2004 the net operating loss incurred in the current year shall be determined on a combined basis as specified in subdivision (a)(3). For tax years ending prior to July 15, 1990, any net operating loss incurred by a member of the unitary group that has been apportioned to Tennessee in a year prior to filing a combined return shall be allowed to the unitary group in succeeding tax years until fully utilized, but in no case more than seven (7) years after the taxable year in which the net operating loss occurs.
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    3. (3) Except for unitary groups of financial institutions, each taxpayer is considered a separate entity; therefore, in the case of mergers, consolidations, and like transactions, no loss carryovers incurred by the predecessor taxpayer shall be allowed as a deduction from net earnings on the excise tax return filed by the successor taxpayer. With the exception set forth in subdivision (c)(4), a loss carryforward may be taken only by the taxpayer that generated it.
    4. (4) Notwithstanding the provisions contained in subdivision (c)(3), when a taxpayer merges out of existence and into a successor taxpayer that has no income, expenses, assets, liabilities, equity or net worth, any qualified Tennessee loss carryover of the predecessor that merged out of existence shall be available for carryover and deduction from the net earnings of the surviving successor in accordance with this subsection (c).
    5. (5) A unitary group of financial institutions may take any qualified Tennessee loss carryforward that was generated by any group member that is in existence as a member of the group at the end of the group's tax year; provided, that such loss carryover has not previously been taken by the member itself before it joined the group or by another unitary group of financial institutions at the time the financial institution generating the loss was a member of that group; and provided, that the loss carryover shall be subject to the limitations set forth in this subsection (c).
    6. (6) There shall be added to the net loss as determined for excise tax purposes, all nonbusiness earnings, interest and dividends, excluded from net earnings pursuant to this section, and any other income excluded from net earnings pursuant to this section.
    7. (7)
      1. (A) Notwithstanding subdivision (c)(2) to the contrary, a taxpayer that qualifies for the job tax credit provided in § 67-4-2109(b)(2)(B)(i) in connection with a required capital investment in excess of one billion dollars ($1,000,000,000) shall be allowed to carry forward and deduct any qualified net operating loss until the loss is fully utilized, and shall not be limited to a carryforward period of fifteen (15) years; provided, that the commissioner of revenue and the commissioner of economic and community development determine that extending the period during which the loss may be utilized is in the best interests of the state. For purposes of this subdivision (c)(7), “best interests of the state” includes, but is not limited to, a determination that the taxpayer made the required capital investment as a result of such action.
      2. (B) Subdivision (c)(7)(A) shall apply only to applications received and approved by the commissioner of revenue and the commissioner of economic and community development on or before January 1, 2011.
    8. (8)
      1. (A) Notwithstanding subdivision (c)(2) to the contrary, a taxpayer that qualifies for the job tax credit provided in § 67-4-2109(b)(2)(B)(ii), (b)(2)(B)(iii) or (b)(2)(B)(iv) in connection with a required capital investment in excess of one hundred million dollars ($100,000,000) shall be allowed to carry net operating losses forward beyond the initial fifteen-year period authorized under subdivision (c)(2), if the commissioner of revenue and the commissioner of economic and community development determine that extending the period during which the loss may be carried forward is in the best interest of the state. For purposes of this subdivision (c)(8), “best interests of the state” includes, but is not limited to, a determination that the taxpayer made the required capital investment as a result of such action. The commissioner of revenue and the commissioner of economic and community development shall determine the period during which net operating loss carryforward shall be allowed beyond the initial fifteen-year period.
      2. (B) Subdivision (c)(8)(A) shall apply only to applications received and approved by the commissioner of revenue and the commissioner of economic and community development on or before January 1, 2011.
    9. (9)
      1. (A)
        1. (i) There shall be added to the net loss as determined for excise tax purposes the amount excluded from federal gross income under 26 U.S.C. § 108(a)(1)(A), (B), or (C) for the taxable year of the discharge.
        2. (ii) There shall be added to any qualified net operating loss as determined for excise tax purposes and carried forward to the year of the discharge the amount excluded from federal gross income under 26 U.S.C. § 108(a)(1)(A), (B), or (C) allocable or apportionable to this state for the taxable year of the discharge.
      2. (B) The adjustments described in subdivision (c)(9)(A) shall be made first in the loss for the taxable year of the discharge and then in the carryforwards to such taxable year in the order of the taxable years from which each such carryforward arose.
  4. (d)
    1. (1) Any taxpayer that pays, accrues, or incurs intangible expenses as a result of a transaction with one (1) or more affiliates shall disclose the intangible expenses on the form as prescribed by the commissioner.
    2. (2) Any taxpayer that pays, accrues, or incurs intangible expenses as a result of a transaction with one (1) or more affiliates and either fails to disclose the intangible expenses or fails to add the expenses to net earnings or net losses in accordance with subdivision (b)(1)(K) shall be subject to a negligence penalty as set forth in § 67-1-804(b)(2).
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  5. (e)
    1. (1) Any financial institution that receives dividends, directly or indirectly, from one (1) or more captive REITs must disclose the dividends on a form prescribed by the commissioner. If a financial institution fails to make the required disclosure, the deduction allowed under subdivision (b)(2)(A) with respect to any direct or indirect dividends from the captive REIT or REITs shall be disallowed, the taxpayer's net earnings under this section shall be adjusted accordingly, and the taxpayer shall be subject to a negligence penalty as set forth in § 67-1-804(b)(2). If the taxpayer wishes to contest the adjustment, the taxpayer shall have the remedies set forth in chapter 1, part 18 of this title.
    2. (2) For purposes of this subsection (e), “captive REIT” means an entity with an election in effect under § 856(c)(1) of the Internal Revenue Code (26 U.S.C. § 856(c)(1)) in which the financial institution, directly or indirectly, has at least eighty percent (80%) ownership interest by value determined in accordance with generally accepted accounting principles and whose shares are not traded on a national stock exchange.
  6. (f) The amount computed under subsections (a)-(e) shall be the taxpayer's net earnings for purposes of the Tennessee excise tax base to which the tax rate is applied as provided in § 67-4-2007.
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History (25)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 982, §§ 8-14, 46, 47
  • 2002, ch. 856, §§ 3a, 3b
  • 2004, ch. 592, § 5
  • 2004, ch. 785, § 1
  • 2004, ch. 835, §§ 1, 2
  • 2004, ch. 924, §§ 2-4
  • 2005, ch. 98, § 1
  • 2005, ch. 499, §§ 30-34, 64, 76
  • 2006, ch. 1019, §§ 7, 13-18, 28
  • 2007, ch. 602, §§ 15-18
  • 2008, ch. 1106, §§ 36, 43, 61
  • 2009, ch. 530, §§ 3, 4, 30, 32
  • 2010, ch. 1134, §§ 7-9, 19
  • 2011, ch. 467, §§ 1, 11
  • 2011, ch. 508, §§ 22, 23
  • 2012, ch. 842, §§ 2-4
  • 2013, ch. 321 § 8
  • 2015, ch. 273, § 2
  • 2015, ch. 514, §§ 28, 29
  • 2018, ch. 1011, §§ 1, 2
  • 2019, ch. 306, §§ 1, 2
  • 2021, ch. 154, §§ 1, 2
  • 2022, ch. 743, § 1
  • 2023, ch. 377, §§ 13-17.
§ 67-4-2007. Tax imposed.
  1. (a) All persons, except those having not-for-profit status, doing business in this state and having a substantial nexus in this state shall, without exception other than as provided in this part, pay to the commissioner, annually, an excise tax, in addition to all other taxes, equal to six and one-half percent (6 ½%) of the net earnings for the next preceding fiscal year for business done in this state during that fiscal year. Notwithstanding the fact that a person is not-for-profit, such person shall be subject to excise tax on all of its Tennessee net earnings to the extent such earnings constitute unrelated business taxable income as defined in § 512 of the Internal Revenue Code (26 U.S.C. § 512) or are otherwise subject to income taxes under Subtitle A of such code. Notwithstanding the fact that a person is otherwise exempted from the excise tax, such person shall be subject to excise tax on all of its Tennessee net earnings that are attributable to any activities unrelated to and outside the scope of the activities that give it an exemption status.
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  2. (b) Every such person, now or hereafter doing business in this state, shall, as a recompense for the protection of its local activities and as compensation for the benefits it receives from doing business in Tennessee, pay the tax imposed by this part. A person doing business in Tennessee without incorporating, domesticating, qualifying or otherwise registering in Tennessee, or doing business in Tennessee while its charter, domestication, qualification or other registration is forfeited, revoked or suspended, is not relieved from filing a return and paying the excise tax levied by this part for each tax year that such person does business in Tennessee.
  3. (c) The tax imposed by this part shall apply to taxpayers whose business is being conducted by a receivership or trusteeship appointed by any court of competent jurisdiction, and shall continue to accrue until such time as the taxpayer has been actually and legally dissolved or withdrawn from this state.
  4. (d) For purposes of the excise tax levied by this part, a business entity shall be classified as a corporation, partnership, or other type business entity, consistent with the way the entity is classified for federal income tax purposes, and subject to tax in accordance with this part. Notwithstanding any law to the contrary, entities that are disregarded for federal income tax purposes, except for limited liability companies whose single member is a corporation, shall not be disregarded for Tennessee excise tax purposes.
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  5. (e)
    1. (1) Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file excise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2014, each taxpayer shall be considered a separate and single business entity for Tennessee excise tax purposes and shall file its Tennessee excise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group. The federal taxable income computed on a separate entity basis excise tax return and subject to adjustments set forth in § 67-4-2006 shall be the same federal taxable income that would have been computed on the taxpayer's federal return if it had been filed on a separate entity basis rather than a consolidated basis.
    2. (2)
      1. (A) Financial institutions subject to tax in this state, that are members of a unitary group, shall file a combined return and pay tax based on the apportioned combined net earnings of the entire unitary group, as defined in § 67-4-2006(a)(3). The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Except as provided in subdivision (e)(2)(B), each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the unitary business.
      2. (B) Joint and several liability for the tax imposed by this part with regard to the unitary business shall not apply to any member that is a limited liability company, limited liability partnership, or limited partnership and meets the criteria set forth either in subdivision (e)(2)(B)(i) or (e)(2)(B)(ii):
        1. (i)
          1. (a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and
          2. (b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or
        2. (ii) Substantially all of the member's assets consist of assets described in subdivision (e)(2)(B)(i)(a), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (e)(2)(B)(i).
      3. (C) For the purposes of subdivision (e)(2)(B), the following shall apply:
        1. (i) The requirements of subdivision (e)(2)(B)(i)(a) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (e)(2)(B)(i)(a), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (e)(2)(C)(i) and necessary or appropriate for the purposes in this subdivision (e)(2)(C)(i);
        2. (ii) “Substantially all” as set forth in subdivision (e)(2)(B) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value.
    3. (3) Persons subject to tax in this state that are members of a captive REIT affiliated group shall file a combined return and pay tax based on the apportioned combined net earnings of the entire captive REIT affiliated group, as defined in § 67-4-2006(a). The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the affiliated group.
  6. (f)
    1. (1) Any entity or individual not otherwise subject to the tax imposed by this part shall pay to the commissioner an excise tax equal to six and one-half percent (6.5%) of the gain from the sale of any asset if any of the following criteria is met:
      1. (A) The entity or individual received the asset through a distribution from a taxpayer within the twelve-month period immediately prior to the sale and the taxpayer making the asset distribution ceased to exist prior to the sale;
      2. (B) The entity or individual received the asset through a merger, liquidation, or any similar transaction involving a taxpayer subject to the tax imposed by this part during the twelve-month period immediately prior to the sale;
      3. (C) The entity or individual qualified for the exemption provided in § 67-4-2008(a)(9) during the twelve-month period immediately prior to the sale; or
      4. (D) The asset was owned, during the twelve-month period immediately prior to the sale, by an affiliate subject to the tax imposed by this part.
    2. (2) Tax on such gain shall be reported and paid in accordance with § 67-4-2015; provided, however, that such tax shall not apply to any person having not-for-profit status. In no event shall the gain from the sale of such asset be taxed twice as a result of the same transaction.
    3. (3) Any entity or individual who fails to report and pay the tax as required by this subsection (f) shall be subject to a penalty as set forth in § 67-1-804(b)(3).
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History (10)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 982, §§ 15-17
  • 2002, ch. 856, § 3c
  • 2004, ch. 592, § 6
  • 2005, ch. 499, § 77
  • 2006, ch. 1019, § 32
  • 2007, ch. 602, § 19
  • 2008, ch. 1106, § 37
  • 2010, ch. 1134, §§ 10, 11, 22
  • 2015, ch. 514, § 7.
§ 67-4-2008. Exemptions.
  1. (a) There shall be exempt from the payment of the excise tax levied under this part the following:
    1. (1) Any corporation organized under the laws of Tennessee whose sole expressed corporate purpose is for the furthering of industrial development in communities throughout the state, and doing matters related thereto, and whose stockholders receive no income other than interest or dividends on money invested in such corporation for constructing industrial buildings and whose officers receive no compensation;
    2. (2) Corporations organized for the purpose of erecting, owning or operating a common meeting place for more than one (1) Masonic lodge, more than one (1) Lodge of Odd Fellows, or similar lodges, and which corporations could obtain general welfare charters, and in which corporations all the stock is owned by lodges participating in the common temple or meeting place, regardless of the type of charter held by such operating corporations, except on income received by such corporations as rentals for use for commercial purposes;
    3. (3) Any regulated investment company or investment fund organized as a unit investment trust taxable as a grantor trust under 26 U.S.C. §§ 671-677; provided, that not less than seventy-five percent (75%) of the value of the investments of such regulated investment company or unit investment trust shall be in any combination of bonds of the United States, Tennessee, or any county or any municipality or political subdivision of the state, including any agency, board, authority or commission of the state or its subdivisions;
    4. (4) Federal credit unions, credit unions organized under the laws of other taxing jurisdictions, production credit associations organized under 12 U.S.C. § 2071 et seq., or merged associations under 12 U.S.C. § 2279c-1, production credit associations organized under title 56, chapter 4, part 4, or investment companies organized under title 56, chapter 4, part 3;
    5. (5) Venture capital funds; provided, that, for purposes of this part, a venture capital fund is a limited liability company, limited liability partnership, limited partnership, or business trust, formed and operated for the exclusive purpose of buying, holding, and/or selling securities, including debt securities, primarily in nonpublicly traded companies on its own behalf and not as a broker, and the capital of which fund is primarily derived from investments by entities and/or individuals that are not affiliated with the fund or investments by one (1) or more affiliates, if the affiliates also qualify as venture capital funds under this subdivision (a)(5). For purposes of this subdivision (a)(5), the following provisions shall apply:
      1. (A) “Affiliated” means entities that are affiliates or part of an affiliated group;
      2. (B) “Nonpublicly traded companies” means any business entity that is not a publicly traded company;
      3. (C) “Primarily” means over fifty percent (50%); and
      4. (D) “Publicly traded company” is any company that is traded on:
        1. (i) A national securities exchange registered under § 6 of the Securities Exchange Act of 1934 or exempted from registration under such act by 15 U.S.C. § 78f because of the limited volume of transactions;
        2. (ii) A foreign securities exchange operating under principles analogous to a national securities exchange;
        3. (iii) A regional or local exchange;
        4. (iv) An interdealer quotation system that regularly disseminates firm buy or sell quotations by identified brokers or dealers by electronic means or otherwise; or
        5. (v) On a secondary market or the substantial equivalent of a secondary market, if taking into account all of the facts and circumstances, the owners are readily able to buy, sell or exchange their ownership interest in a manner that is comparable, economically, to trading on an exchange;
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    6. (6) Limited liability companies, limited partnerships, and limited liability partnerships, if all of the following criteria are met:
      1. (A) At least sixty-six and sixty-seven hundredths percent (66.67%) of the activity of the entity is either farming or the holding of one (1) or more personal residences where one (1) or more of the members or partners reside. For purposes of this subdivision (a)(6)(A), the following provisions shall apply:
        1. (i) “Farming” is the growing of crops, nursery products, timber or fibers, such as cotton, for human or animal use or consumption; the keeping of horses, cattle, sheep, goats, chickens or other animals for human or animal use or consumption; the keeping of animals that produce products, such as milk, eggs, wool or hides for human or animal use or consumption; or the leasing of the land to be used for the purposes described in this subdivision (a)(6)(A);
        2. (ii) For this purpose, the activity of the entity shall be considered farming only if at least sixty-six and sixty-seven hundredths percent (66.67%) of its income, including capital gains from the sale of land and other assets used in farming, is derived from farming and at least sixty-six and sixty-seven hundredths percent (66.67%) of its assets, valued at original cost to the entity, are used by the owner or by the owner's lessee or sharecropper for farming. In the event that an asset's original cost to the entity cannot be determined, or there is no original cost to the entity, for purposes of this subdivision (a)(6)(A), the property shall be valued at its fair market value at the time of acquisition by the entity;
        3. (iii) A “personal residence” or “personal residences,” as used in subdivision (a)(6)(A), includes acreage contiguous to the dwelling;
        4. (iv) Any entity that qualifies for franchise tax exemption under this subdivision (a)(6), because of farming activity or because the property has been used as a personal residence for at least five (5) years, shall remain exempt for one (1) year from the end of the calendar year in which it ceases to qualify for the exemption, but only with regard to property and transactions related to property that it held at the time that it last qualified for the exemption. Net worth resulting from sales and other transactions involving real, tangible, or intangible property acquired by the entity after it ceased to qualify for the exemption (after-acquired property) shall be subject to the franchise tax. After-acquired property shall be included in the entity's franchise tax minimum measure. If the entity computes an apportionment formula, any after-acquired property and any compensation or gross receipts related to such property shall be included in the appropriate factors of such formula; and
        5. (v) In order to qualify as a personal residence, the dwelling unit must be occupied for personal use by partners or members of the entity for more days than it is rented to others who are not partners or members of the entity. For purposes of this subdivision (a)(6), Internal Revenue Code § 280A(d)(2) (26 U.S.C. § 280A(d)(2) shall be used to define ‘‘personal use”;
      2. (B) At least ninety-five percent (95%) of the voting rights, capital interest or profits of the entity are owned either by natural persons who are relatives of one another or by trusts for their benefit. For this purpose, natural persons shall be considered relatives, if, by blood or adoption, they are descended from a common ancestor and their relationship with each other is that of a first cousin or closer than that of a first cousin, or if they are spouses of one another;
    7. (7) Limited liability companies, limited liability partnerships, limited partnerships, or business trusts existing on May 1, 1999, on which date and at all times thereafter met all of the following criteria:
      1. (A) Were at least ninety-eight percent (98%) owned by corporate members of an affiliated group as defined in 26 U.S.C. § 1504(a);
      2. (B) Were formed and operated for the exclusive purpose of acquiring notes from members of such affiliated group, accounts receivable, installment sale contracts, and similar evidence of indebtedness obtained in the ordinary course of business by one (1) or more members of such affiliated group;
      3. (C) The assets of which directly or indirectly serve as security for third party borrowings or securitized indebtedness acquired by third parties;
      4. (D) At least eighty percent (80%) of the income therefrom is included in the income of a corporation doing business in Tennessee; and
      5. (E) Such income is subject to the applicable allocation and apportionment rules as found in this part;
    8. (8) Any limited partnership or limited liability company organized exclusively for the purpose of providing affordable housing that meets the following criteria:
      1. (A) The entity must have received an allocation of low-income housing tax credits pursuant to § 42 of the Internal Revenue Code of 1986 (26 U.S.C. § 42); and
      2. (B) An “extended low-income housing commitment” as defined in § 42(h)(6)(B) of the Internal Revenue Code of 1986 (26 U.S.C. § 42(h)(6)(B)) must be in effect with respect to each residential building owned by the entity for the period covered by the return;
    9. (9) Obligated member entity; provided, that:
      1. (A) For tax years beginning before January 2, 2000, the appropriate documentation, as required in subsections (b)-(d), shall be filed on or before September 15, 2000, with the secretary of state;
      2. (B) For tax years beginning on or after July 2, 2004, but before August 1, 2005, the appropriate documentation, as required in subsections (b)-(d), shall be filed on or before August 1, 2005, with the secretary of state;
      3. (C) For tax years beginning on or after July 1, 2008, but before October 1, 2009, the appropriate documentation, as required in subsections (b)-(d), shall be filed on or before October 1, 2009, with the secretary of state. For all other tax years, the appropriate documentation, as required in subsections (b)-(d), shall be filed on or before the first day of the taxable year for which a return is filed;
      4. (D) To the extent that any obligated member, or any owner of an obligated member, provides limited liability protection, the obligated member entity shall owe the tax otherwise imposed by this part, and by part 21 of this chapter, on the portion of income and equity attributable to such obligated member. For purposes of this subdivision (a)(9)(D), ownership includes any form of ownership, whether in whole, in part, direct or indirect. Also, for purposes of this subdivision (a)(9)(D), estates, trusts that are not taxpayers, not-for-profit entities, or other entities exempt under this section, shall not be deemed to provide limited liability protection;
      5. (E) If an additional obligated member is admitted to the obligated member entity, such obligated member must file the appropriate documentation with the secretary of state within sixty (60) days of such member's admission; and
      6. (F) For purposes of this subdivision (a)(9), obligated members may be fully liable, even though one (1) or more persons or individuals dealing with the obligated member entity have, by contract, agreed to limit their claims against one (1) or more obligated members or against the obligated member entity;
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    10. (10) An entity that satisfies both of the following requirements:
      1. (A) It:
        1. (i) Is classified as a partnership or trust in accordance with 26 U.S.C. § 7701, and the federal regulations and rulings promulgated under 26 U.S.C. § 7701;
        2. (ii) Has elected to be treated as a real estate mortgage investment conduit (REMIC) under 26 U.S.C. § 860D;
        3. (iii) Has elected to be treated as a financial asset securitization investment trust (FASIT) under 26 U.S.C. § 860L; or
        4. (iv) Is a business trust, as defined in § 48-101-202(a), or is classified as a trust under the laws of the state in which it is created and is disregarded for federal income tax under 26 U.S.C. § 7701, and the federal regulations and rulings promulgated under 26 U.S.C. § 7701, when the commercial domicile of the trustee is not in this state; and
      2. (B)
        1. (i) The sole purpose of the entity, except for foreclosures and dispositions of the assets of foreclosures, is the asset-backed securitization of debt obligations, such as first or second mortgages, including home equity loans, trade receivables, whether an open account or evidenced by a note or installment or conditional sales contract, obligations substituted for trade receivables, credit card receivables, personal property leases treated as debt for purposes of the Internal Revenue Code of 1986, home equity loans, automobile loans or similar debt obligations;
        2. (ii) “Trade receivables” as used in subdivision (a)(10)(B)(i) means obligations arising from the sale of inventory in the ordinary course of business;
    11. (11)
      1. (A) Any family-owned noncorporate entity, where substantially all the activity of the entity is either:
        1. (i) The production of passive investment income; or
        2. (ii) The combination of the production of passive investment income and farming as defined in (a)(6)(A)(i);
      2. (B) For purposes of this subdivision (a)(11):
        1. (i) “Family-owned” means that at least ninety-five percent (95%) of the ownership units of the entity are owned by members of the family, which means, with respect to an individual, only:
          1. (a) An ancestor of such individual;
          2. (b) The spouse or former spouse of such individual;
          3. (c) A lineal descendent of such individual, of such individual's spouse or former spouse, or of a parent of such individual;
          4. (d) The spouse or former spouse of any lineal descendent described in subdivision (a)(11)(B)(i)(c); or
          5. (e) The estate or trust of a deceased individual who, while living, was as described in any of subdivisions (a)(11)(B)(i)(a)-(d);
        2. (ii) A legally adopted child of an individual shall be treated as the child of such individual by blood;
        3. (iii) “Passive investment income” means gross receipts derived from royalties, rents from residential property or farm property, dividends, interest, annuities, and sales or exchanges of stock or securities to the extent of any gains therefrom;
        4. (iv) “Farm property” and “residential property” have the same meaning as in § 67-5-501, except that “residential property” includes any property leased or rented for residential purposes that includes not more than four (4) residential units and “farm property” does not include acreage used for recreational purposes by clubs including golf course playing hole improvements;
        5. (v) Ownership units that are held in trust shall not be treated as owned by members of the family, unless the ownership units are property of a trust described in subdivision (a)(11)(B)(i)(e);
    12. (12)
      1. (A) Diversified investing funds; provided, that, for purposes of this part, a diversified investing fund is a limited liability company, limited liability partnership, limited partnership or business trust that meets all of the following requirements:
        1. (i) No less than ninety percent (90%) of the diversified investing fund's cost of its total assets consist of qualifying investment securities, deposits at banks or other financial institutions, and office space and equipment reasonably necessary to carry on its activities as a diversified investing fund;
        2. (ii) No less than ninety percent (90%) of its gross income consists of interest, dividends, and gains from the sale or exchange of qualifying investment securities; and
        3. (iii) Is formed and operated for the primary purpose of buying, holding, or selling qualifying investment securities, on its own behalf and not as a broker, and the capital of which fund is primarily derived from investments by entities or individuals who are not affiliated with the fund;
      2. (B) For purposes of this subdivision (a)(12), the following provisions shall apply:
        1. (i) “Affiliated” means entities that are affiliates or part of an affiliated group. As applied to individuals, “affiliates” means any natural person who, directly or indirectly, has more than fifty percent (50%) ownership interest in the fund. For purposes of this subdivision (a)(12)(B)(i), indirect ownership by an individual includes ownership by any family member of the individual, which means, with respect to the individual:
          1. (a) An ancestor of the individual;
          2. (b) The spouse or former spouse of the individual;
          3. (c) A lineal descendant of the individual, of the individual's spouse or former spouse or of a parent of the individual;
          4. (d) The spouse or former spouse of any lineal descendant described in subdivision (a)(12)(B)(i)(c); or
          5. (e) The estate or trust of a deceased individual who, while living, was as described in any of the subdivisions (a)(12)(B)(i)(a)-(d);
        2. (ii) “Primary” and “primarily”, over fifty percent (50%); and
        3. (iii) “Qualifying investment securities” include all of the following:
          1. (a) Common stock, including preferred, or debt securities convertible into common stock, and preferred stock;
          2. (b) Bonds, debentures, and other debt securities;
          3. (c) Foreign and domestic currency deposits or equivalents and securities convertible into foreign securities;
          4. (d) Mortgage or asset-backed securities secured by federal, state, or local governmental agencies;
          5. (e) Repurchase agreements and loan participations;
          6. (f) Foreign currency exchange contracts and forward and futures contracts on foreign currencies;
          7. (g) Stock and bond index securities and futures contracts, and other similar financial securities and futures contracts on those securities;
          8. (h) Options for the purchase or sale of any of the securities, currencies, contracts, or financial instruments described in subdivisions (a)(12)(B)(iii)(a)-(g), inclusive;
          9. (i) Warrants to purchase stock or an ownership interest in an entity;
          10. (j) An ownership interest in a limited liability company, limited liability partnership, limited partnership, or business trust; and
          11. (k) An ownership interest in a general partnership that would otherwise qualify as a diversified investing partnership under this subdivision (a)(12) were it not for its legal status as a general partnership;
    13. (13) Tennessee historic property preservation or rehabilitation entities;
    14. (14) Insurance companies, as defined in § 56-1-102;
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    15. (15) Any qualified TNInvestco, as defined in § 4-28-102, that has received an allocation of investment tax credits under the Tennessee Small Business Investment Company Credit Act, compiled in title 4, chapter 28, and continues to participate in the program established by such act;
    16. (16) Any entity that:
      1. (A) Is owned, in whole or in part, directly by a branch of the armed forces of the United States; and
      2. (B) Derives more than fifty percent (50%) of its gross income from the operation of facilities that are located on property owned or leased by the federal government and operated primarily for the benefit of members of the armed forces of the United States; and
    17. (17)
      1. (A)
        1. (i) Any qualified low-income community historic structure owner;
        2. (ii) Any qualified low-income community historic structure lessee; or
        3. (iii) Any entity that directly or indirectly owns an interest in a qualified low-income community historic structure owner, a qualified low-income community historic structure lessee, or both, and that has no business operations or assets other than:
          1. (a) Its investment in the qualified low-income community historic structure owner, the qualified low-income community historic structure lessee, or both;
          2. (b) Business operations and assets incidental to its investment in the qualified low-income community historic structure owner, the qualified low-income community historic structure lessee, or both; and
          3. (c) De minimis other operations and assets;
      2. (B) For purposes of this subdivision (a)(17):
        1. (i) “Qualified low-income community historic structure” means a “certified historic structure,” as defined in § 47 of the Internal Revenue Code (26 U.S.C. § 47), together with any associated contiguous real estate, located in a “low-income community,” as defined in § 45D of the Internal Revenue Code (26 U.S.C. § 45D), and with respect to which more than one hundred million dollars ($100,000,000) of “qualified rehabilitation expenditures,” as defined in § 47 of the Internal Revenue Code (26 U.S.C. § 47), are incurred after January 1, 2015;
        2. (ii) “Qualified low-income community historic structure lessee” means a limited liability company that leases or subleases substantially all of a qualified low-income community historic structure and that has no business operations or assets other than:
          1. (a) Its lease or sublease of the qualified low-income community historic structure;
          2. (b) Operations and assets incidental to leasing and subleasing of the qualified low-income community historic structure; and
          3. (c) De minimis other operations and assets;
        3. (iii) “Qualified low-income community historic structure owner” means a limited liability company that owns a qualified low-income community historic structure and that has no business operations or assets other than:
          1. (a) Its investment in the qualified low-income community historic structure;
          2. (b) Business operations and assets incidental to the ownership, financing, and leasing of the qualified low-income community historic structure; and
          3. (c) De minimis other operations and assets; and
        4. (iv) Any references to the Internal Revenue Code in this subdivision (a)(17) means the Internal Revenue Code in effect on January 1, 2015.
  2. (b)
    1. (1) Notwithstanding any law to the contrary, the certificate of a limited partnership may provide that one (1) or more specifically identified limited partners, as named in the certificate of limited partnership, shall be personally liable for all of the debts, obligations and liabilities of the limited partnership to the same extent as a general partner, and if so, each such specifically identified limited partner shall be liable to the same extent as a general partner in a general partnership; provided, that:
      1. (A)
        1. (i) In order to be effective, each limited partner so identified must sign the certificate of limited partnership, or an amendment to the certificate of limited partnership containing this provision and such signature must be notarized. The certificate or amendment must contain the following two (2) sentences in all capitalized letters:
          1. “THE EXECUTION AND FILING OF THIS DOCUMENT WILL CAUSE SUCH LIMITED PARTNER TO BE PERSONALLY LIABLE FOR THE DEBTS AND OBLIGATIONS OF THE LIMITED PARTNERSHIP TO THE SAME EXTENT AS A GENERAL PARTNER. PLEASE CONSULT YOUR ATTORNEY.”
        2. (ii) The amendment or certificate may provide that it is only effective if all limited partners make and maintain such an election. In such case the certificate of limited partnership must affirmatively identify each general and limited partner of the limited partnership and state that such persons constitute all partners;
      2. (B) Each such limited partner shall continue to be personally liable for all of the debts, obligations and liabilities of the partnership to the same extent as a general partner would be until:
        1. (i) Such limited partner withdraws from the partnership and the withdrawal is recorded with the certificate of limited partnership at the secretary of state's office; or
        2. (ii) The certificate of limited partnership is amended to strike such limited partner's name as a limited partner electing joint and several liability or, if the certificate of limited partnership provides that all limited partners must elect joint and several personal liability for all of the debts, obligations and liabilities of the limited partnership if any limited partners are to be so liable, an amendment striking one (1) limited partner who continues to be a limited partner shall strike all limited partners. Such document must be executed by the limited partner desiring to cease being so liable and promptly delivered to the general partner or partners and all other partners who are identified in the certificate of limited partnership as being jointly and severally personally liable for the debts, obligations and liabilities of the limited partnership; and
      3. (C) Such limited partnership must have a written partnership agreement that sets forth in reasonable detail:
        1. (i) The purpose of the limited partnership;
        2. (ii) The identity of each general partner;
        3. (iii) The scope of authority within the limited partnership of one or more of the general partners to incur debt or other obligations in the absence of limited partner approval;
        4. (iv) The fact that each limited partner electing to have joint and several liability shall be liable for all the debts and obligations of the limited partnership whether arising by contract, tort, or otherwise or from the actions of the general partner or partners or other limited partners in furtherance of the limited partnership's business or other activity;
        5. (v) The fact that each limited partner may revoke such partner's election to have joint and several unlimited liability and remain a limited partner; and
        6. (vi) The terms and conditions under which one (1) or more general partners may be removed or the limited partnership dissolved and terminated.
    2. (2) A limited partner who is identified in the certificate of limited partnership as being personally liable always has the power, but not necessarily the right, to revoke the election for joint and several liability for the limited partnership's debts and obligations by filing an amendment to the certificate of limited partnership stating that such limited partner revokes such limited partner's election to be personally liable and shall not be liable for any future debts, obligations and liabilities of the limited partnership. Such amendment to the certificate shall be effective immediately except as provided in subdivision (b)(3).
    3. (3) An amendment to the certificate of limited partnership filed pursuant to subdivision (b)(2) is not effective against such parties reasonably relying upon such certificate until the passage of ninety (90) days from the filing of the amendment to the certificate of limited partnership. Nevertheless, such limited partner or former limited partner shall continue to be liable for all of the debts, obligations and liabilities of the limited partnership incurred by the limited partnership while such limited partner assumed such liability, including, if applicable, the ninety-day period.
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  3. (c)
    1. (1) Notwithstanding any law to the contrary, the application of registered limited liability partnership may provide that one (1) or more specifically identified partners, as named in the application, shall be personally liable for all of the debts, obligations and liabilities of the registered limited liability partnership to the same extent as a general partner of a general partnership; provided, that:
      1. (A)
        1. (i) In order to be effective, each partner so identified must sign the application of registered limited liability partnership, or an amendment to the application of registered limited liability partnership containing this provision and such signature must be notarized. The application or amendment must contain the following two (2) sentences in all capitalized letters:
          1. “THE EXECUTION AND FILING OF THIS DOCUMENT WILL CAUSE SUCH PARTNER TO BE PERSONALLY LIABLE FOR THE DEBTS AND OBLIGATIONS OF THE LIMITED LIABILITY PARTNERSHIP TO THE SAME EXTENT AS A GENERAL PARTNER OF A GENERAL PARTNERSHIP. PLEASE CONSULT YOUR ATTORNEY.”
        2. (ii) The amendment or application may provide that it is only effective if all partners make and maintain such an election. In such case the application of registered limited liability partnership must affirmatively identify each partner of the limited liability partnership and state that such persons constitute all partners; and
      2. (B) Each such partner shall continue to be personally liable for all of the debts, obligations and liabilities of the partnership to the same extent as a general partner of a general partnership until:
        1. (i) Such partner withdraws from the partnership and the withdrawal is recorded with the application at the secretary of state's office; or
        2. (ii) The application of registered limited liability partnership is amended to strike such partner's name as a partner electing joint and several liability or, if the application of limited liability partnership provides that all partners must elect joint and several personal liability for all of the debts, obligations and liabilities of the partnership if any are to be so liable, an amendment striking one (1) partner who has not withdrawn and continues to be a partner shall strike all partners. Such document must be executed by the partner desiring to cease being so liable and promptly delivered to all remaining partners who are identified in the application of registered limited liability partnership as being jointly and severally personally liable for the debts, obligations and liabilities of the partnership to the same extent as a general partner of a general partnership.
    2. (2) Such limited liability partnership must have a written partnership agreement that sets forth in reasonable detail:
      1. (A) The purpose of the partnership;
      2. (B) The identity of each partner;
      3. (C) The scope of authority within the partnership of one (1) or more of the partners to incur debt or other obligations in the absence of partner approval;
      4. (D) The fact that each partner electing to have joint and several liability shall be liable for the all debts and obligations of the partnership whether arising by contract, tort, or otherwise or from the actions of the other partners in connection with the partnership's business or other activity;
      5. (E) The fact that each partner has the power to revoke such partner's election to have joint and several unlimited liability and remain a partner; and
      6. (F) The terms and conditions under which one (1) or more partners may be removed or the partnership dissolved and terminated.
    3. (3) A partner, who is identified in the application of a limited liability partnership as being personally liable, always has the power, but not necessarily the right, to revoke the election for joint and several liability for the partnership's debts and obligations by filing an amendment to the application of limited liability partnership stating that such partner has revoked such partner's election to be liable for the debts and obligations of the partnership and shall not be liable for any future debts, obligations and liabilities of the partnership. Such amendment to the application shall be effective immediately except as provided in subdivision (c)(4).
    4. (4) An amendment to the application of a limited liability partnership filed pursuant to § 61-1-1001 is not effective against such parties reasonably relying upon such application until the passage of ninety (90) days from the filing of the amendment to the application of limited liability partnership. Notwithstanding the preceding, such partner or former partner will continue to be liable for all of the debts, obligations and liabilities of the partnership incurred by the partnership while such partner assumed such liability.
  4. (d) Notwithstanding any law to the contrary, the articles of a limited liability company may provide that one (1) or more specifically identified members, as named in the articles, will be personally liable for all of the debts, obligations and liabilities of the limited liability company and, if so, each such specifically identified member shall be liable to the same extent as a general partner in a general partnership; provided, that:
    1. (1) In order to be effective, each member so identified must sign the articles, or an amendment to the articles containing this provision. The amendment or articles may provide that it is only effective if all members make and maintain such an election. In such case, the articles must affirmatively identify each member and state that such persons constitute all of the members of the limited liability company; and
    2. (2) Each such member shall continue to be personally liable for all of the debts, obligations and liabilities of the limited liability company to the same extent as a general partner of a general partnership until:
      1. (A) The member withdraws from the limited liability company; or
      2. (B) The articles are amended to strike such member's name as a member electing joint and several liability or, if the articles provide that all members must elect joint and several personal liability for all of the debts, obligations and liabilities of the limited liability company if any are to be so liable, an amendment striking one (1) member who continues to be a member shall strike all members. The document must be executed by the member desiring to cease being so liable and promptly delivered to any remaining members who are identified in the articles as personally being jointly and severally liable for the debts, obligations and liabilities of the limited liability company.
  5. (e) Each person who, pursuant to subdivision (a)(11), enjoys exempt status from franchise and excise taxes shall periodically file such forms and report such information as the commissioner of revenue reasonably prescribes regarding the family-owned noncorporate entity and the family members participating in the family-owned noncorporate entity.
  6. (f)
    1. (1) Every person claiming exemption from taxation under this section shall file an application for exemption upon a form prescribed by the commissioner. The application shall be filed on or before the fifteenth day of the fourth month following the close of the first tax year for which the person claims the exemption.
    2. (2) Every person claiming exemption from taxation under this section that has previously filed an application for exemption in accordance with subdivision (f)(1) shall, on or before the fifteenth day of the fourth month following the close of the person's tax year, file an application for renewal of exemption upon a form prescribed by the commissioner.
    3. (3) No person shall be exempt from taxation under this section until the person has filed the application required by subdivision (f)(1) or (f)(2). The commissioner is authorized to accept an application that is filed after the time periods provided in subdivisions (f)(1) and (2). However, when any person fails to timely file the application, there shall be imposed a penalty in the amount of two hundred dollars ($200) per occurrence. The commissioner is authorized to waive the penalty, in whole or in part, for good and reasonable cause under § 67-1-803.
    4. (4) Any person who claims an exemption under this section but fails to meet the criteria for exemption shall be subject to all tax, penalty and interest otherwise applicable under the law.
    5. (5) Notwithstanding subdivisions (f)(1)-(4) to the contrary, the requirements in this subsection (f) shall not apply to any person that qualifies for exemption under subdivision (a)(1), (a)(2), (a)(3), (a)(4), (a)(13), (a)(14) or (a)(15).
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History (17)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 982, §§ 18, 59
  • 2001, ch. 275, § 1
  • 2004, ch. 580, § 1
  • 2004, ch. 592, § 15
  • 2004, ch. 812, § 1
  • 2004, ch. 924, § 6
  • 2005, ch. 499, §§ 3, 35-40, 87
  • 2006, ch. 1019, § 27
  • 2007, ch. 602, § 21
  • 2008, ch. 1106, §§ 38, 41, 55, 68
  • 2009, ch. 530, §§ 28, 29, 33
  • 2010, ch. 1134, §§ 35, 36
  • 2011, ch. 382, § 1
  • 2013, ch. 164, § 5
  • 2015, ch. 449, § 1
  • 2017, ch. 194, §§ 3, 4.
§ 67-4-2009. Credits. [Effective on July 1, 2025. See the version effective until July 1, 2025.]
  1. The tax imposed by this part shall be in addition to all other taxes and there shall be no credit allowed upon it except the following:
    1. (1) In accordance with § 56-4-217, there shall be credited upon the tax imposed by this part the net amount of gross premiums tax paid that is measured by a period that corresponds to the excise tax period on which the return is based, plus any amount used to offset payment to the Tennessee guaranty association that has not otherwise been recovered, but not including the gross premiums receipts tax paid by fire insurance companies for the purpose of executing the fire marshal law;
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    2. (2) When an audit of an excise tax return for any year not barred by the statute of limitations discloses a change in the amount of tax due, there may be applied upon it as a credit any amount that the taxpayer is otherwise entitled to receive either as a credit under part 4 or 5 of this chapter for excise taxes paid, or as a refund thereof under § 67-1-1802. This tax credit allowance may be applied notwithstanding the statute of limitations or the requirement for approval of certain refunds by the commissioner and the attorney general and reporter if such was made under § 67-1-1802, and also any statutory or regulatory requirement under various items of part 4 or 5 of this chapter that the excise tax be paid prior to the allowance of any credit;
    3. (3)
      1. (A) There shall be allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999, compiled in part 21 of this chapter, and by this part, a credit equal to one percent (1%) of the purchase price of industrial machinery purchased during the tax period covered by the return and located in this state. For purposes of this section, “industrial machinery” means:
        1. (i) “Industrial machinery” as defined by § 67-6-102; or
        2. (ii) “Computer,” “computer network,” “computer software,” or “computer system” as defined by § 39-14-601, and any peripheral devices, including, but not limited to, hardware, such as printers, plotters, external disc drives, modems, and telephone units, purchased by a taxpayer in the process of making the required capital investment in Tennessee described in § 67-4-2109(a), if as a result of making such purchase and meeting the other requirements set forth in § 67-4-2109(b), the taxpayer qualifies for the job tax credit provided therein;
      2. (B) The industrial machinery credit taken on any franchise and excise tax return, however, shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before the credit is taken;
      3. (C)
        1. (i) Any unused credit may be carried forward in any tax period until the credit is taken; however, the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
        2. (ii) If the taxpayer qualifies for the credit provided in subdivision (3)(I)(i), the fifteen-year limitation otherwise applicable to the carry-forward of unused credit shall not apply; provided, that the commissioner of economic and community development and the commissioner of revenue have determined that the allowance of the additional carry-forward is in the best interest of the state;
        3. (iii) Subdivision (3)(C)(ii) shall apply only to applications received and approved by the commissioner of revenue and the commissioner of economic and community development on or before January 1, 2011;
      4. (D) If the industrial machinery, for the purchase of which a tax credit has been allowed, is sold or removed from this state during its useful life according to the depreciation guidelines in effect for excise tax purposes, the department shall be entitled to recapture a portion of the credit allowed by increasing the franchise and/or excise tax liability of any taxpayer, for the taxable period during which the machinery was sold or removed, in an amount equal to the percentage of useful life remaining on the industrial machinery at the time of sale or removal times the total credit taken on the purchase of the machinery;
      5. (E) For purposes of the allowance of the credit against franchise and excise taxes under this section, any taxpayer who is a lessee of new industrial machinery and the original user of the industrial machinery, including a lessee from an industrial development corporation as defined by title 7, chapter 53, or other tax exempt entity, shall be treated as having purchased the machinery during the tax period in which it is placed in service by the lessee, at an amount equal to its purchase price;
      6. (F) If industrial machinery is leased for a period that constitutes less than eighty percent (80%) of its useful life, then the lessee shall be deemed to have purchased only a portion of the machinery, at an amount determined by multiplying the actual purchase price of the machinery by a fraction, the numerator of which is the lease term, and the denominator of which is the useful life of the leased machinery;
      7. (G)
        1. (i) Notwithstanding any law to the contrary, the industrial machinery franchise and excise tax credit provided in this subdivision (3) may be computed by a general partnership that operates a call center in this state that is placed in service by the general partnership on or after June 30, 2003, and that would otherwise qualify for the credit provided in § 67-4-2109(b)(3)(G). The industrial machinery franchise and excise tax credit shall be computed as if the general partnership were subject to franchise and excise tax. With respect to the general partnership tax year during which a credit is so computed, a partner in the general partnership that is subject to franchise and excise tax and that directly holds a first tier ownership interest in the general partnership may take a percentage of the credit that equals the total amount of the credit for the general partnership multiplied by the partner's percentage interest in the general partnership on the last day of the general partnership tax year against the partner's franchise and excise tax liability for the partner's tax year that includes the last day. The industrial machinery franchise and excise tax credit passed through from the general partnership to the first tier partner under this section shall, in the hands of the first tier partner, be subject to applicable provisions and limitations otherwise provided by this section, including carry forward provisions; provided, that in no case shall the credit or a carryover of a credit be taken by a business entity, unless it was a partner in the general partnership and subject to franchise and excise tax at the time the credit was earned by the general partnership;
        2. (ii) This subdivision (3)(G) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit;
      8. (H) Notwithstanding any provision to the contrary, a taxpayer that has established its international, national, or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224, or a taxpayer that has established an international, national, or regional warehousing or distribution hub in this state and has met the requirements to be a qualified new or expanded warehouse or distribution facility, shall be allowed to offset up to one hundred percent (100%) of its franchise and/or excise tax liability by the industrial machinery credit provided in this subdivision (3), or any carryforward of the industrial machinery credit, if the commissioner of revenue and the commissioner of economic and community development determine that increasing the percentage of offset above that allowed by subdivision (3)(B) is in the best interests of the state. For purposes of this subdivision (3)(H), “best interests of the state” means a determination that the taxpayer established its headquarters or a warehousing or distribution hub in this state, or converted a regional headquarters or regional warehousing or distribution hub in this state into its national or international headquarters or a national or international warehousing or distribution hub, as a result of such action. The commissioner of revenue and the commissioner of economic and community development shall determine the percentage of franchise and/or excise tax liability allowed to be offset, above that otherwise allowed by subdivision (3)(B), and the period during which the increased offset shall continue;
      9. (I)
        1. (i) If the taxpayer makes a required capital investment in excess of one billion dollars ($1,000,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to ten percent (10%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        2. (ii) If the taxpayer makes a required capital investment in excess of five hundred million dollars ($500,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to seven percent (7%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        3. (iii) If the taxpayer makes a required capital investment in excess of two hundred fifty million dollars ($250,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to five percent (5%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        4. (iv) If the taxpayer makes a capital investment in excess of one hundred million dollars ($100,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to three percent (3%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        5. (v) The taxpayer shall file a business plan with the commissioner of revenue in order to qualify for the credit provided in this subdivision (3)(I). The business plan shall be filed on or before the last day of the first fiscal year in which the investment is made and shall describe the investment. The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the findings contained within the business plan and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the credit in this subdivision (3)(I);
        6. (vi) The credit in this subdivision (3)(I) shall begin to apply in the first year of the investment period; however, if the required capital investment is not met during the investment period, the taxpayer shall be subject to an assessment equal to the amount of any credit taken under this subdivision (3)(I) for which the taxpayer failed to qualify, plus interest;
        7. (vii) For purposes of this subdivision (3)(I), unless the context otherwise requires:
          1. (a) “Good cause” means a determination by the commissioner of economic and community development that the capital investment is a result of the credit provided in this subdivision (3)(I);
          2. (b) “Investment period” means a period not to exceed three (3) years from the filing of the business plan related to the required capital investment, during which the required capital investment must be made. The three-year period for making the required capital investment may, for good cause shown, be extended by the commissioner of economic and community development for a reasonable period not to exceed four (4) years for a taxpayer that meets the requirements of subdivision (3)(I)(i) and not to exceed two (2) years for any other taxpayer; and
          3. (c) “Required capital investment” means an increase of a business investment in real property, tangible personal property or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for purchase or construction;
      10. (J) [Expired July 1, 2015; see (3)(J)(vi)]
        1. (i) In addition to the credit provided in subdivision (3)(A), the owner of a qualifying environmental project shall be entitled to a one-time credit in the amount of one and three-fourths percent (1.75%) of the investment in the qualifying environmental project, and such credit shall have the same carry-forward features, limitations and other attributes as are applicable to job tax credits under § 67-4-2109(b)(1). The owner of a qualifying environmental project shall also be provided six (6) annual credits in the amount of one and three-fourths percent (1.75%) of the investment in the qualifying project, and such credits shall have the same carry-forward features, limitations and other attributes as are applicable to enhanced job tax credits under § 67-4-2109(b)(2)(B)(iii), and the entire investment in the qualifying environmental project shall be treated as exempt required capital investment for purposes of § 67-4-2108(a)(6)(G);
        2. (ii) For purposes of this subdivision (3)(J), a “qualifying environmental project” means a project in which the taxpayer makes an investment in excess of one hundred million dollars ($100,000,000) to eliminate mercury from the manufacturing process and operations of one (1) or more existing chlor-alkali manufacturing and ancillary facilities and equipment in the state;
        3. (iii) The maximum investment in a qualifying environmental project that is eligible for the credits provided under this subdivision (3)(J) is one hundred million dollars ($100,000,000), inclusive of all capital investment and other direct and indirect costs of the project. To be eligible for the credits provided under this subdivision (3)(J), construction of the qualifying environmental project must have commenced on or after January 1, 2011, and construction of the qualifying environmental project must be substantially complete on or before January 1, 2014. The credits provided under this subdivision (3)(J) shall first be available in the later of the year in which the qualifying environmental project is substantially complete or July 1, 2013;
        4. (iv) As a condition to receiving credits under this subdivision (3)(J), the owner of a qualifying environmental project shall agree to maintain an annual average of at least three hundred fifty (350) jobs in the state that meet the requirements set forth in § 67-4-2109(a)(6)(A) for a period of six (6) years after substantial completion of the qualifying environmental project. In the event the owner does not maintain the required number of qualified jobs in a specific year, the annual credit provided under this subdivision (3)(J) for that year shall be reduced in proportion to the percentage of the shortfall;
        5. (v) As a further condition to receiving credits under this subdivision (3)(J), the owner of a qualifying environmental project shall agree to forego any and all claims for credits that may be available to the owner pursuant to § 67-4-2109(b)(1) and (2) in connection with the qualifying environmental project;
        6. (vi) This subdivision (3)(J) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit; and
      11. (K) Notwithstanding any law to the contrary, a taxpayer that has previously made a capital investment in excess of one billion dollars ($1,000,000,000) during a single investment period and has previously qualified for the credit provided in § 67-6-224 and that qualifies during the applicable tax year for, but chooses to not make, the election under § 67-4-2012(l), shall, upon written request submitted to the commissioner, be allowed to offset up to one hundred percent (100%) of its excise tax liability by the industrial machinery credit provided in this subdivision (3), or any carryforward of the industrial machinery credit, if the commissioners of revenue and economic and community development determine that increasing the percentage of offset above fifty percent (50%), as limited by subdivision (3)(B), will allow the taxpayer to maximize the use of its industrial machinery credits while resulting in an excise tax liability substantially equal to the amount otherwise due if the taxpayer had made the election under § 67-4-2012(l). The commissioners of revenue and the commissioner of economic and community development shall determine the percentage of excise tax liability allowed to be offset, above that otherwise allowed by subdivision (3)(B), and the period during which the increased offset shall continue;
    4. (4) A hospital company filing a franchise/excise tax return on a combined basis as required in § 67-4-2014(e), together with all other members of its combined group filing with it, shall be allowed as a credit against the combined annual franchise/excise tax imposed an amount equal to the lesser of the franchise tax or excise tax so that the combined annual franchise/excise tax of the combined group shall be limited to the greater of the two (2) of them; provided, that this credit shall not apply to tax years beginning on or after January 1, 2007;
    5. (5) A hospital company filing a franchise/excise tax return on a combined basis as described in § 67-4-2014(e), together with all members of its combined group filing with it, shall be allowed as a further credit against the combined annual franchise/excise tax imposed on the group remaining after application of the credit allowed under subdivision (4) an amount equal to four percent (4%) of the cost of medical supplies and medical equipment used by or placed in service by the members of the controlled group in this state during the tax year; provided, that the aggregate amount of the credit allowed to a taxpayer under subdivision (4), together with the credit allowed to a taxpayer under this subdivision (5), shall not exceed nine million dollars ($9,000,000) in any one (1) tax year; and provided, further, that the credit allowed under this subdivision (5) shall not apply to tax years beginning on or after January 1, 2007. A corporation or other entity shall be deemed to have used or placed in service medical supplies and medical equipment used or placed in service by a partnership or limited liability company of which it is a partner or member that would be a hospital company, as defined in § 67-4-2004, if it were a corporation or other entity upon which tax is imposed under this part and part 21 of this chapter, and would be a member of its same controlled group, as defined in § 267(f)(1) of the Internal Revenue Code of 1986 (26 U.S.C. § 267(f)(1)) if it were a corporation and its partners or members were shareholders. The amount of the cost of such medical supplies and medical equipment that is attributed to and deemed to have been used or placed in service by such corporation or other entity shall be equal to the pro rata portion of the cost of medical supplies and medical equipment used or placed in service by the partnership or limited liability company in the tax year. Such pro rata portion shall be determined based upon the corporation's or other entity's percentage of the profits and losses of such partnership or limited liability company during such tax year. As used in this subdivision (5), “medical equipment” has the same meaning as “major medical equipment” as set forth in [former] § 68-11-102(10) [repealed], but without the limitation therein as to the cost thereof; and “medical supplies” means all apparatus, consumable products, appliances, and other tangible personal property, except drugs and medicines, used in provision of patient health care services, including all recordkeeping and documentation in connection with such services;
    6. (6)
      1. (A) Except for unitary groups of financial institutions, each taxpayer is considered a separate entity; therefore, in the case of mergers, consolidations, and like transactions, no tax credit incurred by the predecessor taxpayer shall be allowed as a credit on the tax return filed by the successor taxpayer. With the exception set forth in subdivision (6)(B), a credit carryforward may be taken only by the taxpayer that generated it;
      2. (B) Notwithstanding the provisions contained in subdivision (6)(A), when a taxpayer merges out of existence and into a successor taxpayer that has no income, expenses, assets, liabilities, equity or net worth, any qualified Tennessee credit carryover of the predecessor that merged out of existence shall be available for carryover on the return of the surviving successor; provided, that the time limitations for the carryover have not expired;
      3. (C) A unitary group of financial institutions may take any qualified credit that was generated by any group member that is in existence as a member of the group at the end of the group's tax year; provided, that such credit has not previously been taken by the member itself before it joined the group or by another unitary group of financial institutions at the time the financial institution generating the credit was a member of that group; and provided, further, that the credit carryover shall be subject to the limitations set forth in this subdivision (6);
    7. (7) A credit shall be allowed against the tax imposed by this part in an amount equal to the tax imposed by chapter 2 of this title paid by the taxpayer;
    8. (8)
      1. (A) There shall be allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999, and by this part, a credit equal to fifty percent (50%) of the purchase price of brownfield property purchased in this state during the tax period covered by the return for the purpose of a qualified development project;
      2. (B) For the purposes of this subdivision (8), unless the context otherwise requires:
        1. (i) “Brownfield property” means real property that is the subject of an investigation, remediation, or mitigation as a brownfield project under a voluntary agreement or consent order pursuant to § 68-212-224;
        2. (ii) “Capital investment” means an investment in real property, tangible personal property or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for purchase or construction of the real or personal property;
        3. (iii) “Investment period” means a period not to exceed five (5) years from the filing of the business plan related to the required capital investment, during which the required capital investment must be made;
        4. (iv) “Qualified development project” means a project consisting of a capital investment of at least twenty-five million dollars ($25,000,000), located on a brownfield property, and having a business plan approved by the commissioner of revenue in accordance with the applicable provisions of subdivision (8)(D);
      3. (C) The credit allowed pursuant to this subdivision (8) shall apply against the excise tax imposed by this part and the Franchise Tax Law of 1999; provided, however, that such credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before any credit is taken. Any credit authorized under this subdivision (8)(C) that is unused may be carried forward in any tax period until the credit is taken; provided, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
      4. (D)
        1. (i) The taxpayer shall file a business plan for the development project with the commissioner of revenue in order to qualify for the credit provided in subdivision (8)(A). The plan must describe the capital investment to be made toward the qualified development project within the investment period and also include a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development pursuant to subdivision (8)(G) that the credit is in the best interest of the state;
        2. (ii) Qualifying plans shall be approved by the commissioner of revenue. At such time, an approval letter authorizing the credit, the value of the credit and the terms of the credit shall be issued. A copy of the approval letter shall be filed by the taxpayer with the department of revenue in any year in which the taxpayer utilizes the credit;
        3. (iii) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the findings contained within the business plan and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the credit in this subdivision (8);
      5. (E) In order to receive the credit, the taxpayer must submit a claim for the credit, along with documentation as required by the commissioner showing that the capital investment was made toward the qualified development project during the investment period. The taxpayer shall not be eligible to receive the credit until the minimum capital investment required by subdivision (8)(B)(v) has been met;
      6. (F) The commissioner shall review the claim for the credit and notify the taxpayer of the approved tax credit amount. The taxpayer may not take the credit until the commissioner has notified the taxpayer of the approved amount;
      7. (G) Notwithstanding any provision of this subdivision (8) to the contrary, no credit shall be allowed unless the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development determine, in their sole discretion, that the credit is in the best interest of the state. For purposes of this subdivision (8)(G), “best interest of the state” means a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development that the qualified development project is a result of the credit provided in subdivision (8)(A) and that the economic benefits to this state resulting from the qualified development project outweigh the anticipated amount of the credit; and
      8. (H) For a qualified development project in which the taxpayer receives the brownfield property from a county, municipality, or industrial development board as defined in § 7-53-101 for a sale price of less than one dollar ($1.00), the amount of any credit authorized under this subdivision (8) is fifty percent (50%) of the most recent purchase price of the brownfield property that was paid by the county, municipality, or industrial development board;
    9. (9)
      1. (A) Notwithstanding subdivision (8), there shall be allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999 and by this part, a credit equal to seventy-five percent (75%) of the purchase price of brownfield property purchased in a tier 3 or tier 4 enhancement county in this state during the tax period covered by the return for the purpose of a qualified development project;
      2. (B) For the purposes of this subdivision (9), unless the context otherwise requires:
        1. (i) “Brownfield property” means real property that is the subject of an investigation, remediation, or mitigation as a brownfield project under a voluntary agreement or consent order pursuant to § 68-212-224;
        2. (ii) “Capital investment” means an investment in real property, tangible personal property, or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the earlier of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for lease, purchase, or construction of the real or personal property;
        3. (iii) “Investment period” means a period not to exceed five (5) years from the filing of the business plan related to the required capital investment, during which the required capital investment must be made; and
        4. (iv) “Qualified development project” means a project consisting of a capital investment of at least five million dollars ($5,000,000), located on a brownfield property, and having a business plan approved by the commissioner of revenue in accordance with the applicable provisions of subdivision (9)(D);
      3. (C) The credit allowed pursuant to this subdivision (9) shall apply against the excise tax imposed by this part and the Franchise Tax Law of 1999; provided, however, that such credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed seventy-five percent (75%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any credit authorized under this subdivision (9)(C) that is unused may be carried forward in any tax period until the credit is taken; provided, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
      4. (D)
        1. (i) The taxpayer shall file a business plan for the qualified development project with the commissioner of revenue prior to the investment period in order to qualify for the credit provided in subdivision (9)(A). The plan shall describe the capital investment to be made toward the qualified development project within the investment period and shall also include a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development pursuant to subdivision (9)(G) that the credit is in the best interest of the state;
        2. (ii) Qualifying plans shall be approved by the commissioner of revenue. At such time, an approval letter authorizing the credit, the value of the credit, and the terms of the credit shall be issued. A copy of the approval letter must be filed by the taxpayer with the department of revenue in any year in which the taxpayer utilizes the credit; and
        3. (iii) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the information contained in the business plan and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the credit pursuant to this subdivision (9);
      5. (E) In order to receive the credit, the taxpayer must submit a claim for the credit, along with documentation as required by the commissioner showing that the capital investment was made toward the qualified development project during the investment period. The taxpayer shall not be eligible to receive the credit until the minimum capital investment required by subdivision (9)(B)(iv) has been met;
      6. (F) The commissioner shall review the claim for the credit and notify the taxpayer of the approved tax credit amount. The taxpayer may not take the credit until the commissioner has notified the taxpayer of the approved amount;
      7. (G) Notwithstanding any provision of this subdivision (9) to the contrary, no credit shall be allowed unless the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development determine, in their sole discretion, that the credit is in the best interest of the state. For purposes of this subdivision (9)(G), “best interest of the state” means a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development that the qualified development project is a result of the credit provided in subdivision (9)(A) and that the economic benefits to this state resulting from the qualified development project outweigh the anticipated amount of the credit; and
      8. (H) For a qualified development project in which the taxpayer receives the brownfield property from a county, municipality, or industrial development board as defined in § 7-53-101 for a sale price of less than one dollar ($1.00), the amount of any credit authorized under this subdivision (9) is seventy-five percent (75%) of the most recent purchase price of the brownfield property that was paid by the county, municipality, or industrial development board;
    10. (10)
      1. (A) For purposes of this subdivision (10):
        1. (i) “Capital investment” has the same meaning as defined in subdivision (9)(B)(ii);
        2. (ii) “Investment period” has the same meaning as defined in subdivision (9)(B)(iii);
        3. (iii) “Qualified development project” has the same meaning as defined in subdivision (9)(B)(iv); and
        4. (iv) “Remediation costs” means costs that are directly related to the investigation, remediation, or mitigation of a brownfield property as required by a voluntary agreement or consent order pursuant to § 68-212-224;
          Backlinks (1)
      2. (B) Notwithstanding subdivision (9), there is allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999 and by this part, a credit equal to the remediation costs for a brownfield property for a qualified development project in a tier 3 or tier 4 enhancement county in this state; provided, however, that the credit must not exceed five hundred thousand dollars ($500,000), and provided, further, that the credit, together with any carry forward thereof, taken on a franchise and excise tax return must not exceed one hundred percent (100%) of the combined franchise and excise tax liability shown on the return before a credit is taken. An unused credit may be carried forward in a tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
      3. (C) In order to receive the credit, the taxpayer must submit a claim for the credit, along with documentation as required by the commissioner showing that the capital investment was made toward the qualified development project during the investment period and that the costs claimed are remediation costs. The taxpayer is not eligible to receive the credit until the minimum capital investment has been met and the commissioner has approved the tax credit amount;
      4. (D) The commissioner shall review the claim for the credit in consultation with the commissioner of environment and conservation and notify the taxpayer of the approved tax credit amount;
    11. (11)
      1. (A) For tax years ending on or after December 31, 2023, but before December 31, 2025, there is allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999, compiled in part 21 of this chapter, and by this part, a credit equal to the federal employer tax credit in Section 45S of the Internal Revenue Code of 1986 (26 U.S.C. § 45S), as amended, as a result of compensation paid in this state during the tax period by the taxpayer as determined consistent with § 67-4-2012;
      2. (B) The credit allowed pursuant to this subdivision (11) taken on a franchise and excise tax return must not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before the credit is taken. A credit authorized under this subdivision (11) that is unused may be carried forward in a tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than twenty-five (25) years; and
    12. (12) A credit must be allowed against the tax imposed by this part in accordance with § 13-23-134.
Backlinks (4)
History (19)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 973, § 1
  • 2000, ch. 982, §§ 19, 54
  • 2003, ch. 202, § 2
  • 2006, ch. 1019, § 1
  • 2007, ch. 602, § 1
  • 2008, ch. 1106, §§ 56, 57
  • 2009, ch. 530, §§ 2, 5-7, 15, 23
  • 2010, ch. 1134, § 65
  • 2011, ch. 508, §§ 24, 28, 29
  • 2012, ch. 937, § 1
  • 2015, ch. 504, §§ 4, 5
  • 2017, ch. 228, § 15
  • 2019, ch. 501, § 2
  • 2020, ch. 606, §§ 1-15
  • 2021, ch. 517, § 1
  • 2023, ch. 86, §§ 7, 8
  • 2023, ch. 377, §§ 18, 40
  • 2024, ch. 971, § 3.
§ 67-4-2009. Credits. [Effective until July 1, 2025. See the version effective on July 1, 2025.]
  1. The tax imposed by this part shall be in addition to all other taxes and there shall be no credit allowed upon it except the following:
    1. (1) In accordance with § 56-4-217, there shall be credited upon the tax imposed by this part the net amount of gross premiums tax paid that is measured by a period that corresponds to the excise tax period on which the return is based, plus any amount used to offset payment to the Tennessee guaranty association that has not otherwise been recovered, but not including the gross premiums receipts tax paid by fire insurance companies for the purpose of executing the fire marshal law;
      Backlinks (2)
    2. (2) When an audit of an excise tax return for any year not barred by the statute of limitations discloses a change in the amount of tax due, there may be applied upon it as a credit any amount that the taxpayer is otherwise entitled to receive either as a credit under part 4 or 5 of this chapter for excise taxes paid, or as a refund thereof under § 67-1-1802. This tax credit allowance may be applied notwithstanding the statute of limitations or the requirement for approval of certain refunds by the commissioner and the attorney general and reporter if such was made under § 67-1-1802, and also any statutory or regulatory requirement under various items of part 4 or 5 of this chapter that the excise tax be paid prior to the allowance of any credit;
    3. (3)
      1. (A) There shall be allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999, compiled in part 21 of this chapter, and by this part, a credit equal to one percent (1%) of the purchase price of industrial machinery purchased during the tax period covered by the return and located in this state. For purposes of this section, “industrial machinery” means:
        1. (i) “Industrial machinery” as defined by § 67-6-102; or
        2. (ii) “Computer,” “computer network,” “computer software,” or “computer system” as defined by § 39-14-601, and any peripheral devices, including, but not limited to, hardware, such as printers, plotters, external disc drives, modems, and telephone units, purchased by a taxpayer in the process of making the required capital investment in Tennessee described in § 67-4-2109(a), if as a result of making such purchase and meeting the other requirements set forth in § 67-4-2109(b), the taxpayer qualifies for the job tax credit provided therein;
      2. (B) The industrial machinery credit taken on any franchise and excise tax return, however, shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before the credit is taken;
      3. (C)
        1. (i) Any unused credit may be carried forward in any tax period until the credit is taken; however, the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
        2. (ii) If the taxpayer qualifies for the credit provided in subdivision (3)(I)(i), the fifteen-year limitation otherwise applicable to the carry-forward of unused credit shall not apply; provided, that the commissioner of economic and community development and the commissioner of revenue have determined that the allowance of the additional carry-forward is in the best interest of the state;
        3. (iii) Subdivision (3)(C)(ii) shall apply only to applications received and approved by the commissioner of revenue and the commissioner of economic and community development on or before January 1, 2011;
      4. (D) If the industrial machinery, for the purchase of which a tax credit has been allowed, is sold or removed from this state during its useful life according to the depreciation guidelines in effect for excise tax purposes, the department shall be entitled to recapture a portion of the credit allowed by increasing the franchise and/or excise tax liability of any taxpayer, for the taxable period during which the machinery was sold or removed, in an amount equal to the percentage of useful life remaining on the industrial machinery at the time of sale or removal times the total credit taken on the purchase of the machinery;
      5. (E) For purposes of the allowance of the credit against franchise and excise taxes under this section, any taxpayer who is a lessee of new industrial machinery and the original user of the industrial machinery, including a lessee from an industrial development corporation as defined by title 7, chapter 53, or other tax exempt entity, shall be treated as having purchased the machinery during the tax period in which it is placed in service by the lessee, at an amount equal to its purchase price;
      6. (F) If industrial machinery is leased for a period that constitutes less than eighty percent (80%) of its useful life, then the lessee shall be deemed to have purchased only a portion of the machinery, at an amount determined by multiplying the actual purchase price of the machinery by a fraction, the numerator of which is the lease term, and the denominator of which is the useful life of the leased machinery;
      7. (G)
        1. (i) Notwithstanding any law to the contrary, the industrial machinery franchise and excise tax credit provided in this subdivision (3) may be computed by a general partnership that operates a call center in this state that is placed in service by the general partnership on or after June 30, 2003, and that would otherwise qualify for the credit provided in § 67-4-2109(b)(3)(G). The industrial machinery franchise and excise tax credit shall be computed as if the general partnership were subject to franchise and excise tax. With respect to the general partnership tax year during which a credit is so computed, a partner in the general partnership that is subject to franchise and excise tax and that directly holds a first tier ownership interest in the general partnership may take a percentage of the credit that equals the total amount of the credit for the general partnership multiplied by the partner's percentage interest in the general partnership on the last day of the general partnership tax year against the partner's franchise and excise tax liability for the partner's tax year that includes the last day. The industrial machinery franchise and excise tax credit passed through from the general partnership to the first tier partner under this section shall, in the hands of the first tier partner, be subject to applicable provisions and limitations otherwise provided by this section, including carry forward provisions; provided, that in no case shall the credit or a carryover of a credit be taken by a business entity, unless it was a partner in the general partnership and subject to franchise and excise tax at the time the credit was earned by the general partnership;
        2. (ii) This subdivision (3)(G) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit;
      8. (H) Notwithstanding any provision to the contrary, a taxpayer that has established its international, national, or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224, or a taxpayer that has established an international, national, or regional warehousing or distribution hub in this state and has met the requirements to be a qualified new or expanded warehouse or distribution facility, shall be allowed to offset up to one hundred percent (100%) of its franchise and/or excise tax liability by the industrial machinery credit provided in this subdivision (3), or any carryforward of the industrial machinery credit, if the commissioner of revenue and the commissioner of economic and community development determine that increasing the percentage of offset above that allowed by subdivision (3)(B) is in the best interests of the state. For purposes of this subdivision (3)(H), “best interests of the state” means a determination that the taxpayer established its headquarters or a warehousing or distribution hub in this state, or converted a regional headquarters or regional warehousing or distribution hub in this state into its national or international headquarters or a national or international warehousing or distribution hub, as a result of such action. The commissioner of revenue and the commissioner of economic and community development shall determine the percentage of franchise and/or excise tax liability allowed to be offset, above that otherwise allowed by subdivision (3)(B), and the period during which the increased offset shall continue;
      9. (I)
        1. (i) If the taxpayer makes a required capital investment in excess of one billion dollars ($1,000,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to ten percent (10%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        2. (ii) If the taxpayer makes a required capital investment in excess of five hundred million dollars ($500,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to seven percent (7%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        3. (iii) If the taxpayer makes a required capital investment in excess of two hundred fifty million dollars ($250,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to five percent (5%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        4. (iv) If the taxpayer makes a capital investment in excess of one hundred million dollars ($100,000,000) during the investment period, the credit allowed in subdivision (3)(A) shall be equal to three percent (3%) of the purchase price of industrial machinery located in this state and purchased in the process of making the required capital investment. The credit shall be subject to subdivisions (3)(A)-(H), except that a taxpayer making the required capital investment for purposes of this subdivision (3)(I) shall be entitled to the credit for the items listed in subdivision (3)(A)(ii) regardless of whether the taxpayer meets any of the requirements of, or qualifies for, the job tax credit provided in § 67-4-2109(b);
        5. (v) The taxpayer shall file a business plan with the commissioner of revenue in order to qualify for the credit provided in this subdivision (3)(I). The business plan shall be filed on or before the last day of the first fiscal year in which the investment is made and shall describe the investment. The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the findings contained within the business plan and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the credit in this subdivision (3)(I);
        6. (vi) The credit in this subdivision (3)(I) shall begin to apply in the first year of the investment period; however, if the required capital investment is not met during the investment period, the taxpayer shall be subject to an assessment equal to the amount of any credit taken under this subdivision (3)(I) for which the taxpayer failed to qualify, plus interest;
        7. (vii) For purposes of this subdivision (3)(I), unless the context otherwise requires:
          1. (a) “Good cause” means a determination by the commissioner of economic and community development that the capital investment is a result of the credit provided in this subdivision (3)(I);
          2. (b) “Investment period” means a period not to exceed three (3) years from the filing of the business plan related to the required capital investment, during which the required capital investment must be made. The three-year period for making the required capital investment may, for good cause shown, be extended by the commissioner of economic and community development for a reasonable period not to exceed four (4) years for a taxpayer that meets the requirements of subdivision (3)(I)(i) and not to exceed two (2) years for any other taxpayer; and
          3. (c) “Required capital investment” means an increase of a business investment in real property, tangible personal property or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for purchase or construction;
      10. (J) [Expired July 1, 2015; see (3)(J)(vi)]
        1. (i) In addition to the credit provided in subdivision (3)(A), the owner of a qualifying environmental project shall be entitled to a one-time credit in the amount of one and three-fourths percent (1.75%) of the investment in the qualifying environmental project, and such credit shall have the same carry-forward features, limitations and other attributes as are applicable to job tax credits under § 67-4-2109(b)(1). The owner of a qualifying environmental project shall also be provided six (6) annual credits in the amount of one and three-fourths percent (1.75%) of the investment in the qualifying project, and such credits shall have the same carry-forward features, limitations and other attributes as are applicable to enhanced job tax credits under § 67-4-2109(b)(2)(B)(iii), and the entire investment in the qualifying environmental project shall be treated as exempt required capital investment for purposes of § 67-4-2108(a)(6)(G);
        2. (ii) For purposes of this subdivision (3)(J), a “qualifying environmental project” means a project in which the taxpayer makes an investment in excess of one hundred million dollars ($100,000,000) to eliminate mercury from the manufacturing process and operations of one (1) or more existing chlor-alkali manufacturing and ancillary facilities and equipment in the state;
        3. (iii) The maximum investment in a qualifying environmental project that is eligible for the credits provided under this subdivision (3)(J) is one hundred million dollars ($100,000,000), inclusive of all capital investment and other direct and indirect costs of the project. To be eligible for the credits provided under this subdivision (3)(J), construction of the qualifying environmental project must have commenced on or after January 1, 2011, and construction of the qualifying environmental project must be substantially complete on or before January 1, 2014. The credits provided under this subdivision (3)(J) shall first be available in the later of the year in which the qualifying environmental project is substantially complete or July 1, 2013;
        4. (iv) As a condition to receiving credits under this subdivision (3)(J), the owner of a qualifying environmental project shall agree to maintain an annual average of at least three hundred fifty (350) jobs in the state that meet the requirements set forth in § 67-4-2109(a)(6)(A) for a period of six (6) years after substantial completion of the qualifying environmental project. In the event the owner does not maintain the required number of qualified jobs in a specific year, the annual credit provided under this subdivision (3)(J) for that year shall be reduced in proportion to the percentage of the shortfall;
        5. (v) As a further condition to receiving credits under this subdivision (3)(J), the owner of a qualifying environmental project shall agree to forego any and all claims for credits that may be available to the owner pursuant to § 67-4-2109(b)(1) and (2) in connection with the qualifying environmental project;
        6. (vi) This subdivision (3)(J) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit; and
      11. (K) Notwithstanding any law to the contrary, a taxpayer that has previously made a capital investment in excess of one billion dollars ($1,000,000,000) during a single investment period and has previously qualified for the credit provided in § 67-6-224 and that qualifies during the applicable tax year for, but chooses to not make, the election under § 67-4-2012(l), shall, upon written request submitted to the commissioner, be allowed to offset up to one hundred percent (100%) of its excise tax liability by the industrial machinery credit provided in this subdivision (3), or any carryforward of the industrial machinery credit, if the commissioners of revenue and economic and community development determine that increasing the percentage of offset above fifty percent (50%), as limited by subdivision (3)(B), will allow the taxpayer to maximize the use of its industrial machinery credits while resulting in an excise tax liability substantially equal to the amount otherwise due if the taxpayer had made the election under § 67-4-2012(l). The commissioners of revenue and the commissioner of economic and community development shall determine the percentage of excise tax liability allowed to be offset, above that otherwise allowed by subdivision (3)(B), and the period during which the increased offset shall continue;
    4. (4) A hospital company filing a franchise/excise tax return on a combined basis as required in § 67-4-2014(e), together with all other members of its combined group filing with it, shall be allowed as a credit against the combined annual franchise/excise tax imposed an amount equal to the lesser of the franchise tax or excise tax so that the combined annual franchise/excise tax of the combined group shall be limited to the greater of the two (2) of them; provided, that this credit shall not apply to tax years beginning on or after January 1, 2007;
    5. (5) A hospital company filing a franchise/excise tax return on a combined basis as described in § 67-4-2014(e), together with all members of its combined group filing with it, shall be allowed as a further credit against the combined annual franchise/excise tax imposed on the group remaining after application of the credit allowed under subdivision (4) an amount equal to four percent (4%) of the cost of medical supplies and medical equipment used by or placed in service by the members of the controlled group in this state during the tax year; provided, that the aggregate amount of the credit allowed to a taxpayer under subdivision (4), together with the credit allowed to a taxpayer under this subdivision (5), shall not exceed nine million dollars ($9,000,000) in any one (1) tax year; and provided, further, that the credit allowed under this subdivision (5) shall not apply to tax years beginning on or after January 1, 2007. A corporation or other entity shall be deemed to have used or placed in service medical supplies and medical equipment used or placed in service by a partnership or limited liability company of which it is a partner or member that would be a hospital company, as defined in § 67-4-2004, if it were a corporation or other entity upon which tax is imposed under this part and part 21 of this chapter, and would be a member of its same controlled group, as defined in § 267(f)(1) of the Internal Revenue Code of 1986 (26 U.S.C. § 267(f)(1)) if it were a corporation and its partners or members were shareholders. The amount of the cost of such medical supplies and medical equipment that is attributed to and deemed to have been used or placed in service by such corporation or other entity shall be equal to the pro rata portion of the cost of medical supplies and medical equipment used or placed in service by the partnership or limited liability company in the tax year. Such pro rata portion shall be determined based upon the corporation's or other entity's percentage of the profits and losses of such partnership or limited liability company during such tax year. As used in this subdivision (5), “medical equipment” has the same meaning as “major medical equipment” as set forth in [former] § 68-11-102(10) [repealed], but without the limitation therein as to the cost thereof; and “medical supplies” means all apparatus, consumable products, appliances, and other tangible personal property, except drugs and medicines, used in provision of patient health care services, including all recordkeeping and documentation in connection with such services;
    6. (6)
      1. (A) Except for unitary groups of financial institutions, each taxpayer is considered a separate entity; therefore, in the case of mergers, consolidations, and like transactions, no tax credit incurred by the predecessor taxpayer shall be allowed as a credit on the tax return filed by the successor taxpayer. With the exception set forth in subdivision (6)(B), a credit carryforward may be taken only by the taxpayer that generated it;
      2. (B) Notwithstanding the provisions contained in subdivision (6)(A), when a taxpayer merges out of existence and into a successor taxpayer that has no income, expenses, assets, liabilities, equity or net worth, any qualified Tennessee credit carryover of the predecessor that merged out of existence shall be available for carryover on the return of the surviving successor; provided, that the time limitations for the carryover have not expired;
      3. (C) A unitary group of financial institutions may take any qualified credit that was generated by any group member that is in existence as a member of the group at the end of the group's tax year; provided, that such credit has not previously been taken by the member itself before it joined the group or by another unitary group of financial institutions at the time the financial institution generating the credit was a member of that group; and provided, further, that the credit carryover shall be subject to the limitations set forth in this subdivision (6);
    7. (7) A credit shall be allowed against the tax imposed by this part in an amount equal to the tax imposed by chapter 2 of this title paid by the taxpayer;
    8. (8)
      1. (A) There shall be allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999, and by this part, a credit equal to fifty percent (50%) of the purchase price of brownfield property purchased in this state during the tax period covered by the return for the purpose of a qualified development project;
      2. (B) For the purposes of this subdivision (8), unless the context otherwise requires:
        1. (i) “Brownfield property” means real property that is the subject of an investigation, remediation, or mitigation as a brownfield project under a voluntary agreement or consent order pursuant to § 68-212-224;
        2. (ii) “Capital investment” means an investment in real property, tangible personal property or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for purchase or construction of the real or personal property;
        3. (iii) “Investment period” means a period not to exceed five (5) years from the filing of the business plan related to the required capital investment, during which the required capital investment must be made;
        4. (iv) “Qualified development project” means a project consisting of a capital investment of at least twenty-five million dollars ($25,000,000), located on a brownfield property, and having a business plan approved by the commissioner of revenue in accordance with the applicable provisions of subdivision (8)(D);
      3. (C) The credit allowed pursuant to this subdivision (8) shall apply against the excise tax imposed by this part and the Franchise Tax Law of 1999; provided, however, that such credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before any credit is taken. Any credit authorized under this subdivision (8)(C) that is unused may be carried forward in any tax period until the credit is taken; provided, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
      4. (D)
        1. (i) The taxpayer shall file a business plan for the development project with the commissioner of revenue in order to qualify for the credit provided in subdivision (8)(A). The plan must describe the capital investment to be made toward the qualified development project within the investment period and also include a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development pursuant to subdivision (8)(G) that the credit is in the best interest of the state;
        2. (ii) Qualifying plans shall be approved by the commissioner of revenue. At such time, an approval letter authorizing the credit, the value of the credit and the terms of the credit shall be issued. A copy of the approval letter shall be filed by the taxpayer with the department of revenue in any year in which the taxpayer utilizes the credit;
        3. (iii) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the findings contained within the business plan and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the credit in this subdivision (8);
      5. (E) In order to receive the credit, the taxpayer must submit a claim for the credit, along with documentation as required by the commissioner showing that the capital investment was made toward the qualified development project during the investment period. The taxpayer shall not be eligible to receive the credit until the minimum capital investment required by subdivision (8)(B)(v) has been met;
      6. (F) The commissioner shall review the claim for the credit and notify the taxpayer of the approved tax credit amount. The taxpayer may not take the credit until the commissioner has notified the taxpayer of the approved amount;
      7. (G) Notwithstanding any provision of this subdivision (8) to the contrary, no credit shall be allowed unless the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development determine, in their sole discretion, that the credit is in the best interest of the state. For purposes of this subdivision (8)(G), “best interest of the state” means a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development that the qualified development project is a result of the credit provided in subdivision (8)(A) and that the economic benefits to this state resulting from the qualified development project outweigh the anticipated amount of the credit; and
      8. (H) For a qualified development project in which the taxpayer receives the brownfield property from a county, municipality, or industrial development board as defined in § 7-53-101 for a sale price of less than one dollar ($1.00), the amount of any credit authorized under this subdivision (8) is fifty percent (50%) of the most recent purchase price of the brownfield property that was paid by the county, municipality, or industrial development board;
    9. (9)
      1. (A) Notwithstanding subdivision (8), there shall be allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999 and by this part, a credit equal to seventy-five percent (75%) of the purchase price of brownfield property purchased in a tier 3 or tier 4 enhancement county in this state during the tax period covered by the return for the purpose of a qualified development project;
      2. (B) For the purposes of this subdivision (9), unless the context otherwise requires:
        1. (i) “Brownfield property” means real property that is the subject of an investigation, remediation, or mitigation as a brownfield project under a voluntary agreement or consent order pursuant to § 68-212-224;
        2. (ii) “Capital investment” means an investment in real property, tangible personal property, or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the earlier of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for lease, purchase, or construction of the real or personal property;
        3. (iii) “Investment period” means a period not to exceed five (5) years from the filing of the business plan related to the required capital investment, during which the required capital investment must be made; and
        4. (iv) “Qualified development project” means a project consisting of a capital investment of at least five million dollars ($5,000,000), located on a brownfield property, and having a business plan approved by the commissioner of revenue in accordance with the applicable provisions of subdivision (9)(D);
      3. (C) The credit allowed pursuant to this subdivision (9) shall apply against the excise tax imposed by this part and the Franchise Tax Law of 1999; provided, however, that such credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed seventy-five percent (75%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any credit authorized under this subdivision (9)(C) that is unused may be carried forward in any tax period until the credit is taken; provided, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
      4. (D)
        1. (i) The taxpayer shall file a business plan for the qualified development project with the commissioner of revenue prior to the investment period in order to qualify for the credit provided in subdivision (9)(A). The plan shall describe the capital investment to be made toward the qualified development project within the investment period and shall also include a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development pursuant to subdivision (9)(G) that the credit is in the best interest of the state;
        2. (ii) Qualifying plans shall be approved by the commissioner of revenue. At such time, an approval letter authorizing the credit, the value of the credit, and the terms of the credit shall be issued. A copy of the approval letter must be filed by the taxpayer with the department of revenue in any year in which the taxpayer utilizes the credit; and
        3. (iii) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the information contained in the business plan and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the credit pursuant to this subdivision (9);
      5. (E) In order to receive the credit, the taxpayer must submit a claim for the credit, along with documentation as required by the commissioner showing that the capital investment was made toward the qualified development project during the investment period. The taxpayer shall not be eligible to receive the credit until the minimum capital investment required by subdivision (9)(B)(iv) has been met;
      6. (F) The commissioner shall review the claim for the credit and notify the taxpayer of the approved tax credit amount. The taxpayer may not take the credit until the commissioner has notified the taxpayer of the approved amount;
      7. (G) Notwithstanding any provision of this subdivision (9) to the contrary, no credit shall be allowed unless the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development determine, in their sole discretion, that the credit is in the best interest of the state. For purposes of this subdivision (9)(G), “best interest of the state” means a determination by the commissioner of finance and administration, the commissioner of revenue, and the commissioner of economic and community development that the qualified development project is a result of the credit provided in subdivision (9)(A) and that the economic benefits to this state resulting from the qualified development project outweigh the anticipated amount of the credit; and
      8. (H) For a qualified development project in which the taxpayer receives the brownfield property from a county, municipality, or industrial development board as defined in § 7-53-101 for a sale price of less than one dollar ($1.00), the amount of any credit authorized under this subdivision (9) is seventy-five percent (75%) of the most recent purchase price of the brownfield property that was paid by the county, municipality, or industrial development board;
    10. (10)
      1. (A) For purposes of this subdivision (10):
        1. (i) “Capital investment” has the same meaning as defined in subdivision (9)(B)(ii);
        2. (ii) “Investment period” has the same meaning as defined in subdivision (9)(B)(iii);
        3. (iii) “Qualified development project” has the same meaning as defined in subdivision (9)(B)(iv); and
        4. (iv) “Remediation costs” means costs that are directly related to the investigation, remediation, or mitigation of a brownfield property as required by a voluntary agreement or consent order pursuant to § 68-212-224;
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      2. (B) Notwithstanding subdivision (9), there is allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999 and by this part, a credit equal to the remediation costs for a brownfield property for a qualified development project in a tier 3 or tier 4 enhancement county in this state; provided, however, that the credit must not exceed five hundred thousand dollars ($500,000), and provided, further, that the credit, together with any carry forward thereof, taken on a franchise and excise tax return must not exceed one hundred percent (100%) of the combined franchise and excise tax liability shown on the return before a credit is taken. An unused credit may be carried forward in a tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years;
      3. (C) In order to receive the credit, the taxpayer must submit a claim for the credit, along with documentation as required by the commissioner showing that the capital investment was made toward the qualified development project during the investment period and that the costs claimed are remediation costs. The taxpayer is not eligible to receive the credit until the minimum capital investment has been met and the commissioner has approved the tax credit amount;
      4. (D) The commissioner shall review the claim for the credit in consultation with the commissioner of environment and conservation and notify the taxpayer of the approved tax credit amount; and
    11. (11)
      1. (A) For tax years ending on or after December 31, 2023, but before December 31, 2025, there is allowed against the sum total of the taxes imposed by the Franchise Tax Law of 1999, compiled in part 21 of this chapter, and by this part, a credit equal to the federal employer tax credit in Section 45S of the Internal Revenue Code of 1986 (26 U.S.C. § 45S), as amended, as a result of compensation paid in this state during the tax period by the taxpayer as determined consistent with § 67-4-2012;
      2. (B) The credit allowed pursuant to this subdivision (11) taken on a franchise and excise tax return must not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before the credit is taken. A credit authorized under this subdivision (11) that is unused may be carried forward in a tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than twenty-five (25) years.
Backlinks (4)
History (18)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 973, § 1
  • 2000, ch. 982, §§ 19, 54
  • 2003, ch. 202, § 2
  • 2006, ch. 1019, § 1
  • 2007, ch. 602, § 1
  • 2008, ch. 1106, §§ 56, 57
  • 2009, ch. 530, §§ 2, 5-7, 15, 23
  • 2010, ch. 1134, § 65
  • 2011, ch. 508, §§ 24, 28, 29
  • 2012, ch. 937, § 1
  • 2015, ch. 504, §§ 4, 5
  • 2017, ch. 228, § 15
  • 2019, ch. 501, § 2
  • 2020, ch. 606, §§ 1-15
  • 2021, ch. 517, § 1
  • 2023, ch. 86, §§ 7, 8
  • 2023, ch. 377, §§ 18, 40.
§ 67-4-2010. Taxation of persons doing business outside state.
  1. (a) Any taxpayer having business activities that are taxable both inside and outside this state shall allocate or apportion its net earnings or losses as provided in this part. A taxpayer is considered taxable in another state only if the taxpayer is conducting activities in that state that, if conducted in Tennessee, would constitute doing business in Tennessee and would subject the taxpayer to either Tennessee's franchise tax or excise tax.
  2. (b) Nonbusiness receipts shall not be included in the numerator or denominator of any apportionment formula.
History (2)
  • Acts 1999, ch. 406, § 3
  • 2006, ch. 1019, § 22.
§ 67-4-2011. Allocation of earnings.
  1. (a) To the extent that they constitute nonbusiness earnings, rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties shall be allocated as provided in this section.
  2. (b)
    1. (1) Net rents and royalties from real property located in this state are allocable to this state.
    2. (2) Net rents and royalties from tangible personal property are allocable to this state:
      1. (A) If and to the extent that the property is utilized in this state; or
      2. (B) In their entirety, if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
    3. (3) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year, and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
  3. (c)
    1. (1) Capital gains and losses from sales of real property located in this state are allocable to this state.
    2. (2) Capital gains and losses from sales of tangible personal property are allocable to this state, if:
      1. (A) The property had a situs in this state at the time of the sale; or
      2. (B) The taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
    3. (3) Capital gains and losses from sales of intangible personal property are allocable to this state, if the taxpayer's commercial domicile is in this state.
  4. (d) Interest and dividends are allocable to this state, if the taxpayer's commercial domicile is in this state.
  5. (e)
    1. (1) Patent and copyright royalties are allocable to this state, if and to the extent that the patent or copyright is utilized by the payer in:
      1. (A) This state; or
      2. (B) A state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
    2. (2) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states, or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
    3. (3) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states, or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
Backlinks (1)
History (1)
  • Acts 1999, ch. 406, § 3.
§ 67-4-2012. Apportionment formula.
  1. (a)
    1. (1) Except as otherwise provided in this part, for tax years beginning prior to July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus twice the receipts factor, and the denominator of the fraction shall be four (4).
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    2. (2) Except as otherwise provided in this part, for tax years beginning on or after July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction shall be five (5).
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    3. (3) Except as otherwise provided in this part, for tax years ending on or after December 31, 2023, but before December 31, 2024, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus five (5) times the receipts factor, and the denominator of the fraction is seven (7).
    4. (4) Except as otherwise provided in this part, for tax years ending on or after December 31, 2024, but before December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus eleven (11) times the receipts factor, and the denominator of the fraction is thirteen (13).
    5. (5) Except as otherwise provided in this part, for tax years ending on or after December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by the receipts factor only.
    6. (6) If the application of subdivision (a)(3), (a)(4), or (a)(5) to a tax year results in a lower apportionment ratio than under the application of the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023, then a taxpayer may annually elect to apply the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023; provided, however, the election must result in a higher apportionment ratio for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006.
    7. (7) Notwithstanding subdivisions (a)(3) - (a)(6), for tax years ending on or after December 31, 2023, net earnings for a “qualified member” of a “qualified group,” as those terms are defined in subsection (j), must be apportioned to this state by multiplying he earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction is five (5).
  2. (b) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period. For this purpose, “property” includes a taxpayer's ownership share of the real or tangible property owned or rented by any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its property factor only the real and tangible property owned or used by the limited liability company. “Property” also includes a taxpayer's ownership share of the real or tangible property owned or rented by any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and, therefore, is not subject to Tennessee excise tax. The cost value or rental value of such property shall be determined from the books and records of the entity in which the taxpayer has an interest and such property shall be valued in accordance with subsection (c).
  3. (c)
    1. (1) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. A lessee's payments to a lessor, or on such lessor's behalf, as part of rent, or in lieu of rent, shall be included as rent in the property factor of the apportionment formula provided by this section. Except with respect to tangible personal property, for purposes of this subsection (c), payments, such as interest, taxes, insurance, repairs or other items, shall be treated as rent paid by the lessee, if they would have been paid by the lessor if the lease contract or other agreement had not specifically provided that they be paid by the lessee.
    2. (2) For purposes of this section, the value of owned or leased mobile or movable property located both inside and outside of the state of Tennessee during a tax period shall be determined on the basis of the total percentage of time such property is inside the state during the tax period; provided, that the value of an automobile or truck assigned to a traveling employee shall be considered in Tennessee, if the employee's compensation is assigned to Tennessee for purposes of the taxpayer's apportionment formula payroll factor, or if such vehicle is licensed in Tennessee.
  4. (d) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period; but the commissioner may require the averaging of monthly values during the tax period, if reasonably required to reflect properly the average value of the taxpayer's property.
  5. (e) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period. For this purpose, “compensation” includes a taxpayer's ownership share of the compensation of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its payroll factor only the compensation attributed to the limited liability company. “Compensation” also includes a taxpayer's share of any specific compensation of any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and which is not doing business in Tennessee and thus is not subject to Tennessee excise tax.
  6. (f) Compensation is paid in this state, if:
    1. (1) The individual's service is performed entirely inside the state;
    2. (2) The individual's service is performed both inside and outside the state, but the service performed outside the state is incidental to the individual's service inside the state; or
    3. (3) Some of the service is performed in the state; and
      1. (A) The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or
      2. (B) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
  7. (g) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the tax period, and the denominator of which is the total receipts of the taxpayer everywhere during the tax period. For this purpose, “gross receipts” includes a taxpayer's ownership share of the gross receipts of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its receipts factor only the gross receipts attributed to the limited liability company. “Gross receipts” also includes a taxpayer's ownership share of gross receipts of any limited partnership, subchapter S corporation, limited liability company, or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and thus is not subject to Tennessee excise tax.
  8. (h) Sales of tangible personal property are in this state, if:
    1. (1) The property is delivered or shipped to a purchaser, other than the United States government, inside this state regardless of the F.O.B. point or other conditions of the sale; or
    2. (2) The property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government.
  9. (i)
    1. (1) Sales, other than sales of tangible personal property, are in this state if the taxpayer's market for the sale is in this state. The taxpayer's market for a sale is in this state:
      1. (A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
      2. (B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
      3. (C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state;
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      4. (D) In the case of intangible property:
        1. (i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and
        2. (ii) That is sold, if and to the extent the property is used in this state; provided, that:
          1. (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state;
          2. (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and
          3. (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
    2. (2) If the state or states of assignment under subdivision (i)(1) cannot be determined, the state or states of assignment shall be reasonably approximated.
    3. (3) If the state of assignment cannot be determined under subdivision (i)(1) or reasonably approximated under subdivision (i)(2), such sale shall be excluded from the numerator and denominator of the sales factor.
    4. (4) If the application of this subsection (i) to a tax year results in a lower apportionment factor than under the application of the apportionment method in subsection (i) as it was in effect prior to January 1, 2016, then a taxpayer may annually elect to apply the apportionment method in subsection (i) as in effect prior to January 1, 2016; provided, however, the election must result in a higher apportionment factor for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006.
  10. (j)
    1. (1) For any qualified member of a qualified group, total receipts in this state shall equal the receipts from all sales of tangible personal property that are in this state as determined under subsection (h), plus the arithmetical average of the receipts from all sales other than sales of tangible personal property that are in this state as determined under each of the following alternative methods:
      1. (A) All sales that are in this state as determined under subsection (i); and
      2. (B) All sales, other than sales of tangible personal property, where the earnings-producing activity is performed:
        1. (i) In this state; or
        2. (ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance.
    2. (2) For purposes of this subsection (j), the following definitions shall apply:
      1. (A) “Qualified expenditures” means expenditures incurred in transactions with persons who are not members of the qualified group for the following:
        1. (i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and
        2. (ii) Payroll for employees employed by a member of the qualified group at a facility in this state;
      2. (B) “Qualified group” means an affiliated group that meets both of the following criteria:
        1. (i) One (1) or more members of the group is a qualified member; and
        2. (ii) The members of the group, during the tax period, either:
          1. (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or
          2. (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000);
      3. (C) “Qualified member” means a person that is principally engaged in the sale of “telecommunications service,” “mobile telecommunications service,” “internet access service,” “video programming service,” “direct-to-home satellite television programming service,” or a combination of such services, as each such term is used or defined in chapter 6 of this title.
    3. (3) The method provided by this subsection (j) for determining the total receipts in this state of a qualified member shall be the only method for determining such receipts under this part.
  11. (k) Notwithstanding any provision of this section to the contrary, any gain on the sale of an asset that is designated as goodwill and is required to be included as Class VII assets pursuant to the reporting requirements of 26 U.S.C. §§ 338(b)(5) and 1060, and associated regulations, shall be excluded from both the numerator and the denominator of the apportionment formula receipts factor.
  12. (l) [Repealed effective December 31, 2025; see (l)(5).]
    1. (1) A taxpayer whose principal business in Tennessee is manufacturing may elect to apportion net earnings to this state by multiplying the earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year and the denominator of which is the total receipts of the taxpayer from any location within or outside of the state during the taxable year.
    2. (2) For purposes of this subsection (l), a taxpayer's principal business in Tennessee is manufacturing if more than fifty percent (50%) of the revenue derived from its activities in this state, excluding passive income, is from fabricating or processing tangible personal property for resale and consumption off the premises. For purposes of this subsection (l), “passive income” means dividend income, interest income, income derived from the sale of securities, and income derived from the licensing or sale of patents, trademarks, tradenames, copyrights, know-how, or other intellectual property.
    3. (3) To elect the method of apportionment provided in this subsection (l), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies.
    4. (4) Once a taxpayer elects the method of apportionment provided in this subsection (l), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (l) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election.
    5. (5) This subsection (l) is repealed for tax years ending on or after December 31, 2025.
  13. (m) [Repealed effective December 31, 2025; see (m)(5).]
    1. (1) Notwithstanding any other provision of this part, a financial asset management company may elect to apportion net earnings by multiplying such earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year as determined under this section and the denominator of which is the total receipts of the taxpayer everywhere during the taxable year.
    2. (2) For the purposes of this subsection (m):
      1. (A)
        1. (i) “Financial asset management company” means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either:
          1. (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. § 78l(g)) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. § 78m); or
            1. (b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and
        2. (ii) “Financial asset management company” does not include any type of real estate investment trust as defined in § 67-4-2004;
      2. (B) “Financial asset management services” means the following services when performed with respect to financial investments: managing portfolio assets of others on a fee or commission basis; rendering investment advice, including investment research and analysis; making determinations as to when sales and purchases of investments are to be made; and selling or purchasing of investments;
      3. (C) “Financial investments” means, without limitation, investments in stocks, stock options, bonds, and alternative asset classes (including, but not limited to, real estate, commodities, and other debt obligations); and
      4. (D) “Publicly traded partnership” means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that files with the securities and exchange commission and whose shares are regularly traded on a securities exchange that is either registered as a national securities exchange with the securities exchange commission under Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. § 78f), or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority.
    3. (3) To elect the method of apportionment provided in this subsection (m), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies.
    4. (4) Once a taxpayer elects the method of apportionment provided in this subsection (m), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (m) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election.
    5. (5) This subsection (m) is repealed for tax years ending on or after December 31, 2025.
Backlinks (10)
History (8)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 982, §§ 20-22, 48
  • 2006, ch. 1019, § 19
  • 2011, ch. 467, § 2
  • 2015, ch. 514, §§ 8, 9
  • 2017, ch. 181, § 28
  • 2018, ch. 656, § 1
  • 2023, ch. 377, §§ 19-21.
§ 67-4-2013. Apportionment — Special provisions.
  1. (a) If the principal business in this state is that of a common carrier of persons or property for hire, then the appropriate ratios shall be as follows:
    1. (1) Railroads. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The gross receipts from railway operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and
      2. (B) The mileage owned and operated inside Tennessee, plus mileage leased and operated inside Tennessee, as compared with the total of such mileage in and outside the state;
      Backlinks (2)
    2. (2) Motor Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The gross receipts from operations on business beginning and ending in this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and
      2. (B) The ratio of the total franchise miles, or odometer miles, if there are no franchise miles, to which it holds or uses under lease, contract or otherwise, certificates of convenience and necessity from the interstate commerce commission or the department of safety inside the state, to the total franchise or odometer miles to which it holds or uses certificates from such commission or department, and like commissions, departments or agencies of other states, in and outside the state, all as shown by the annual reports made by such motor carrier to the various commissions, departments or agencies from which it holds certificates;
    3. (3) Rail and Motor Carriers. Where the taxpayer is engaged in transporting passengers and property by both rail and motor, then the ratio of the sum of the miles in the state as computed under subdivisions (a)(1) and (2) to the sum of the miles under such subdivisions in and outside the state;
    4. (4) Pipelines. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The gross receipts from operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations inside and outside the state; and
      2. (B) The ratio of the pipeline miles owned, operated, or owned and operated inside the state to the miles of pipeline owned, operated or owned and operated inside and outside the state;
    5. (5) Air Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The originating revenue in the state as compared with the entire originating revenue in and outside the state; and
      2. (B) The ratio of the total air miles flown in the state to the total air miles flown in and outside the state. “Air miles flown in the state” only includes miles in the state from flights originating from or ending in the state, or both originating from and ending in the state;
    6. (6) Air Express Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The originating revenue inside the state as compared with the entire originating revenue in and outside the state; and
      2. (B) The ratio of the total air miles flown and ground miles traveled in the state to the total air miles flown and ground miles traveled in and outside the state. Air miles flown in the state shall only include miles in the state, from flights originating from or ending in the state, or both originating from and ending in the state. Ground miles traveled in the state or traveled in and outside the state shall only include miles traveled with respect to the actual common carriage of persons or property for hire; and
    7. (7) Barges. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The revenue from the transportation of cargo loaded in this state as compared with the entire revenue from the transportation of cargo loaded in and outside the state; and
      2. (B)
        1. (i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state;
        2. (ii) “Mile operated” means one (1) mile of movement of each barge.
    Backlinks (5)
  2. (b)
    1. (1) Notwithstanding any other provision of this part, net earnings of a financial institution that is not a member of a unitary group and therefore not filing a combined return, and that has business activities both in and outside this state, shall be apportioned by multiplying such earnings by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subdivision (b)(3), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subdivision (b)(3). “Receipts” means all gross income derived from transactions and activities in the regular course of business, except that receipts from the disposition of assets such as securities and money market transactions are included to the extent of the net taxable gain on such transactions.
    2. (2) A unitary group shall have earnings apportioned to Tennessee that consists of the apportioned net earnings of the unitary group, as determined under subdivision (b)(1), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group.
    3. (3) Receipts, as used in this section, shall be attributed to Tennessee as follows:
      1. (A) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee;
      2. (B)
        1. (i) Interest income and other receipts from assets in the nature of loans or installment sales contracts, that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property;
        2. (ii) “Value” means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security, or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted;
      3. (C) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, telephone or other electronic means;
      4. (D) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (b)(3)(D), “applied for” means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, “loan” does not include demand deposit clearing accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions;
      5. (E) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit, shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in subdivision (b)(3)(B), (b)(3)(C), or (b)(3)(D);
      6. (F) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed;
      7. (G) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this subsection (b);
      8. (H) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and such receipt is not otherwise attributed under subdivision (b)(3)(G). For purposes of this subdivision (b)(3)(H), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state;
      9. (I) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2012(i)(1)(C);
      10. (J) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased;
      11. (K) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (b). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and
      12. (L) Any other receipts not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (b) shall be attributed to Tennessee in the same proportion that the enumerated receipts are attributed to Tennessee under subdivisions (b)(3)(A)-(K).
  3. (c) Insurance companies shall apportion net earnings by a ratio of their premiums on policies, persons and property in and outside the state; however, foreign insurance companies, not domiciled in Tennessee, shall not consider nor include any annuity considerations as premiums for purposes of this section.
  4. (d)
    1. (1) For tax years beginning prior to July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and double weighted receipts as provided in § 67-4-2012(a)(1), including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(1).
    2. (2) For tax years beginning on or after July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and triple weighted receipts as provided in § 67-4-2012(a)(2), including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(2).
History (5)
  • Acts 1999, ch. 406, § 3
  • 2005, ch. 499, § 78
  • 2007, ch. 602, § 13
  • 2010, ch. 1134, § 12
  • 2015, ch. 514, §§ 10-13.
§ 67-4-2014. Variances from standard apportionment formula — Notice of discontinuation — Hospital companies.
  1. (a) If the tax computation, allocation or apportionment provisions of this part or chapter 2 of this title do not fairly represent the extent of the taxpayer's business activity in this state, or the taxpayer's net earnings, the taxpayer may petition for, or the department through its delegates may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
    1. (1) Separate accounting;
    2. (2) The exclusion of any one (1) or more of the formula factors;
    3. (3) The inclusion of one (1) or more additional apportionment formula factors that will fairly represent the taxpayer's business activity in this state;
    4. (4) The use of any other method to source receipts for purposes of the receipts factor or factors of the apportionment formula numerator or numerators; or
    5. (5) The employment of any other method to effectuate an equitable computation, allocation and apportionment of the taxpayer's net earnings or losses that fairly represents the extent of the business entity's activities in Tennessee.
  2. (b) If any factors are excluded from or added to the statutory apportionment formula, an appropriate change shall be made in the number used as the denominator of the fraction.
  3. (c)
    1. (1) In any case of two (2) or more persons, organizations, trades or businesses, whether or not incorporated and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the commissioner through delegates may distribute, apportion, or allocate income, deductions, credits, or allowances between or among such persons, organizations, trades or businesses, if the commissioner determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes, excessive use or abuse of exemptions, or to clearly reflect the income of such persons, organizations, trades or businesses. In addition, the commissioner through delegates may require combined reports utilizing a common apportionment formula covering members of an affiliated group. It is the intent of the general assembly that the federal regulations, rulings, and court implementations with respect to 26 U.S.C. § 482 be used as guidance in the administration of this subdivision (c)(1).
    2. (2) In the case of two (2) or more entities owned or controlled directly or indirectly by the same persons, including, but not limited to, affiliated groups, the commissioner, through the commissioner's delegates, may require combined reports and, if applicable, the utilization of a common apportionment formula covering such entities.
    3. (3) The commissioner may apply federal taxation concepts, including, but not limited to, “assignment of income,” “arms length,” and “fair market value” to dealings between and among affiliates.
    4. (4) The commissioner may disregard any entity created or transaction made that has no business purpose or is created or made with the primary purpose of evading either the federal income tax or the excise tax.
  4. (d) When another method of tax computation, allocation or apportionment as set out above has once been established, it shall continue in effect so long as the circumstances justifying the variation remain substantially unchanged, or until changed or discontinued by the department, whichever occurs first. In the event that the department changes or discontinues a variation from the statutory computation, allocation or apportionment provisions that has been granted to or required of a taxpayer, reasonable notice shall be given to the taxpayer affected, and any such change or discontinuation shall apply prospectively to the first and subsequent tax periods beginning on or after the date of such notice.
  5. (e) For tax years beginning on or before December 31, 2006, a hospital company, as defined in § 67-4-2004, shall file its franchise and excise tax return on a combined basis, together with all other corporations or other entities subject to the taxes imposed under this part and part 21 of this chapter that are members of its controlled group, as defined in 26 U.S.C. § 267(f)(1), and that are doing business in and taxable by this state, apportioned or allocated as to each member separately as provided in §§ 67-4-2011 and 67-4-2012, and then combined. Such combined franchise and excise tax returns shall be signed on behalf of one (1) member of the combined controlled group for itself and on behalf of the other members of the combined controlled group, and such signature shall constitute representation and evidence of authority to file on behalf of all members of the combined controlled group. The combined return shall contain all financial statements and schedules that would be required of each member filing a separate franchise and excise tax return. Each member's net earnings or losses subject to carryover, as the case may be, and each member's apportionment ratio, and applicable supporting schedules shall be computed separately as would be required by law if no combined return were required. The franchise and excise tax shall be computed for the combined group based on the combined net earnings or net losses of the members as combined and shown on the combined return filed for members of the controlled group of companies doing business in this state. The losses available to each member of the controlled group under current or prior law shall be available for offset against the net earnings of the combined group in the first year of filing on a combined basis, and any portion that is not used to offset net earnings of the combined group in the first combined year shall be carried forward on a combined basis to be available as an offset to future net earnings of the combined group in accordance with and subject to the time limitations set forth in § 67-4-2006(c)(2); provided, that such combination shall not extend the time limitation of any then existing net operating losses. No member of the combined group may file its franchise and excise tax return on a separate basis without the consent of the commissioner.
    Backlinks (2)
Backlinks (1)
History (3)
  • Acts 1999, ch. 406, § 3
  • 2005, ch. 499, §§ 41-43
  • 2006, ch. 1019, § 57.
§ 67-4-2015. Filing of returns — Payment of tax — Penalty.
  1. (a) The franchise and excise tax return shall be filed with the commissioner on or before the fifteenth day of the fourth month following the close of the taxpayer's taxable year. The return shall coincide with the accounting period covered by the federal return and the appropriate tax must be paid to the department at the time of filing the return. In the event the return covers a period of less than twelve (12) months, the excise tax shall not be prorated.
  2. (b) Every taxpayer, who has a combined franchise and excise tax liability of five thousand dollars ($5,000) or more, after application of all available franchise and excise tax credits, for both the immediately preceding tax year, annualized if the preceding tax year was for less than twelve (12) months, and the current tax year, shall make four (4) quarterly estimated franchise and excise tax payments for its current tax year. A taxpayer electing to compute its net worth on a consolidated basis shall compute its quarterly estimated franchise and excise tax payments taking into consideration that its net worth will be computed on a consolidated basis. Except as otherwise provided in this section, the minimum amount of each quarterly payment shall be the lesser of:
    1. (1) Twenty-five percent (25%) of the combined franchise and excise tax shown on the tax return for the preceding tax year, annualized if the preceding tax year was for less than twelve (12) months; or
    2. (2) Twenty-five percent (25%) of eighty percent (80%) of the combined franchise and excise tax liability for the current tax year.
    Backlinks (1)
  3. (c) The first quarterly payment shall be due on the fifteenth day of the fourth month of the current tax year; the second payment on the fifteenth day of the sixth month; the third payment on the fifteenth day of the ninth month; and the final payment on the fifteenth day of the first month of the next succeeding tax year.
  4. (d) If there is a deficiency or delinquency of any quarterly estimated tax payment required, a penalty in the amount of two percent (2%) for each month of underpayment or part thereof not to exceed a total of twenty-four percent (24%) and interest at the rate prescribed by § 67-1-801 shall be assessed.
  5. (e) The period of underpayment of any required quarterly estimated franchise and excise tax payment shall extend from the date the payment was required to be paid to the earlier of:
    1. (1) The fifteenth day of the fourth month following the close of the taxable year; or
    2. (2) With respect to all or any portion of the underpayment, the date on which all or any portion of the underpayment is paid.
  6. (f) A quarterly payment of estimated franchise and excise tax on any installment date shall be considered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment payable for that date.
  7. (g)
    1. (1) Notwithstanding this section to the contrary, with respect to the excise tax component of its quarterly estimated franchise and excise tax payments, a taxpayer may elect to calculate that excise tax component in the manner provided by Section 6655(e)(2) of the Internal Revenue Code. For those taxpayers that elect to calculate the excise tax component of their quarterly estimated franchise and excise tax payments in the manner provided by this subsection (g), the franchise tax component of each quarterly estimated payment shall be the lesser of:
      1. (A) Twenty-five percent (25%) of the franchise tax shown on the tax return for the preceding tax year, annualized if the preceding tax year was for less than twelve (12) months; or
      2. (B) Twenty-five percent (25%) of eighty percent (80%) of the franchise tax liability for the current tax year.
    2. (2) A taxpayer electing to calculate its quarterly estimated franchise and excise tax payments under this subsection (g) shall establish the amount of each estimated payment on a form prescribed by the commissioner.
  8. (h)
    1. (1)
      1. (A) An extension of time of seven (7) months in which to file the franchise and excise tax return shall be granted if, on or before the original due date of the return, the extension request is made as required in subdivision (h)(2) and the taxpayer has paid franchise and excise taxes equal to at least the lesser of:
        1. (i) Ninety percent (90%) of the liability for the tax year for which the extension is being requested; or
        2. (ii) One hundred percent (100%) of the tax shown due on the tax return for the preceding tax year, annualized if the preceding tax year was for less than twelve (12) months; provided, however, that, if there was no liability for the preceding tax year, the amount paid shall equal the minimum tax amount provided in § 67-4-2119.
      2. (B) A taxpayer electing to compute its net worth on a consolidated basis shall make its franchise, excise tax extension request and compute the payment thereon taking into consideration that its net worth will be computed on a consolidated basis.
      3. (C) Where the taxes paid on or before the original due date of the return do not equal the amount provided in subdivision (h)(1)(A), or if the return is not filed by the extended due date, penalty as provided by § 67-1-804 and interest as provided by § 67-1-801(a) shall attach as though no extension had been granted.
    2. (2) An extension request shall be made as follows:
      1. (A) If the taxpayer is not required to make a tax payment with its extension request, the taxpayer may use either a form prescribed by the commissioner or a copy of the taxpayer's request for an automatic extension of time to file its federal income tax return for the corresponding tax period. The form shall not be filed on the original due date of the return but, instead, shall be attached to the return filed on or before the extended due date;
      2. (B) If the taxpayer is required to make a tax payment with its extension request and the taxpayer does not file its federal income tax return as a member of a consolidated group, the taxpayer may use either a form prescribed by the commissioner or a copy of the taxpayer's request for an automatic extension of time to file its federal income tax return for the corresponding tax period. The form shall be filed with the tax payment on or before the original due date of the return; and
      3. (C) If the taxpayer is required to make a tax payment with its extension request and the taxpayer files its federal income tax return as a member of a consolidated group, the taxpayer must use a form prescribed by the commissioner. The form shall be filed with the tax payment on or before the original due date of the return.
  9. (i) Final return status shall apply to the first return that reflects any activity or event giving rise to such status, and shall apply to all subsequent returns filed by the taxpayer. The taxpayer shall file a return for each tax period during which the taxpayer is in final return status. This requirement shall include returns of taxpayers with any remaining assets, activity, equity, or proceeds; or with installment sales attributable to any Tennessee assets regardless of whether the entity has any remaining in-state activity.
  10. (j) The commissioner shall ensure that any new integrated tax system implemented by the department will support the annualization of quarterly estimated payments.
  11. (k)
    1. (1) As used in this subsection (k), “perfection period” means a period of ten (10) calendar days, beginning with the day after date of the first transmission of an electronic return that is subsequently rejected by the commissioner, for the taxpayer to either:
      1. (A) Correct any errors in the return that cause it to fail to meet any of the validation criteria set by the commissioner and retransmit it; provided, that the commissioner subsequently accepts the corrected return; or
      2. (B) File a paper return postmarked on or before the expiration of the ten (10) calendar days; provided, that the taxpayer is not required to electronically file or the commissioner grants the taxpayer permission to file the return on paper.
    2. (2) A taxpayer's electronically filed return shall be treated as filed on the date of the last transmission prior to the return being accepted by the commissioner, except as provided in subdivision (k)(3). A taxpayer's paper return shall be treated as filed when mailed and postmarked, except as provided in subdivision (k)(3).
    3. (3) A return that complies with the requirements of the perfection period shall be treated as filed on the date of the first electronic transmission.
Backlinks (5)
History (12)
  • Acts 1999, ch. 406, § 3
  • 2000, ch. 982, §§ 23-25
  • 2003, ch. 164, §§ 1, 2
  • 2004, ch. 786, § 2
  • 2004, ch. 932, §§ 2, 3
  • 2005, ch. 499, § 79
  • 2012, ch. 658, § 1
  • 2013, ch. 321, § 2
  • 2016, ch. 881, §§ 2-7
  • 2017, ch. 194, §§ 1, 2
  • 2018, ch. 1048, § 2
  • 2021, ch. 559, § 1.
§ 67-4-2016. Collection — Dissolved entities.
  1. (a) The commissioner is empowered and it is the commissioner's duty to collect the tax, together with penalty and interest, levied under this part from any officer, stockholder, partner, member, principal, or employee of a taxpayer that is out of business or has dissolved, liquidated, otherwise terminated at a time when it has refused or failed to pay the excise tax levied under this part, and any such officer, stockholder, partner, member, principal, or employee has received property belonging to the taxpayer, but such collection shall be limited to the value of the property received.
  2. (b) The commissioner is empowered to certify to the secretary of state the name of any taxpayer that fails or refuses to file any statement or return or to pay any fee or tax required by this part; however, no certification shall be issued until such statement, return, or tax has remained delinquent for a period of ninety (90) days.
  3. (c) At the time of such certification to the secretary of state, the commissioner shall give notice to the taxpayer of the action taken. Thereupon, the charter or certificate of such taxpayer or its domestication in Tennessee shall stand as automatically dissolved or revoked and the secretary of state shall note such revocation or dissolution upon the secretary of state's records.
  4. (d) At any time after the date of revocation or dissolution, such charter or certificate or domestication may be reinstated upon the filing of all reports and the payment of all fees, taxes, penalty and interest due the state; provided, that the title has not been taken by another taxpayer.
History (1)
  • Acts 1999, ch. 406, § 3.
§ 67-4-2017. Taxation of banks and financial institution unitary businesses.
  1. (a) All the taxes collected under this part shall be applied as follows:
    1. (1) To cities and counties, an amount for each bank with a deposit facility in this state and each “financial institution unitary business” as defined in this section:
      1. (A) Three percent (3%) of the net earnings of the bank and the net earnings of a financial institution unitary business determined on a combined basis for the second fiscal year preceding the year in which the distribution under this section is made, less seven percent (7%) of the ad valorem taxes paid by the bank or financial institution unitary business on its real property and tangible personal property for the second fiscal year preceding the year in which the distribution is made. For the purposes of this subdivision (a)(1), “net earnings,” as applicable to either a bank or financial institution unitary business, does not include amounts attributable to interest earned on bonds and other obligations of the state of Tennessee. As used in this section, “financial institution unitary business” includes only those financial institutions that form a unitary business as defined in § 67-4-2004, that file a combined franchise, excise tax return in Tennessee and that have at least one (1) member with a deposit facility in Tennessee. The total amount thus determined shall be allocated between the county and municipal governments where the office of the bank or financial institution unitary business is located in the same proportion as the property tax rate of each such taxing jurisdiction shall bear to the sum of the property tax rates;
      2. (B) In circumstances where a bank or financial institution unitary business has more than one (1) branch or office, the total allocation attributable to such bank or financial institution unitary business as determined in subdivision (a)(1)(A) shall be further allocated between such counties and cities where its branches or offices are located as follows:
        1. (i) The proportionate percentage that is produced by the ratio of the deposits of each branch or office of the bank or financial institution unitary business to the total deposits of the bank or financial institution unitary business shall be determined as of January 1 of each year, and the percentage so determined shall then be applied to the total allocation to determine the portion of the total attributable to each branch or office;
        2. (ii) The branches or offices shall then be grouped each to a common location so as to determine the aggregate allocation of all branches or offices located in each individual county and municipality; and
        3. (iii) The percentage of the total allocation allowable to each county and municipality shall be divided between the county and municipality where the branch or office is maintained in the same proportion as the property tax rates of each for the second year preceding the year in which the distribution under this section is made shall bear to the total of the property tax rates;
      3. (C) The director of the division of property assessments shall provide to the commissioner, periodically on a timely basis, the ad valorem property tax rates for each taxing jurisdiction. The commissioner shall report the amount of such allocations made to each county and municipality to the comptroller of the treasury for audit purposes on an annual basis;
      4. (D) The status of each bank or financial institution unitary business as of January 1 of the fiscal year for which the allocation is calculated shall be the determining status;
      5. (E) If the net earnings of any bank or financial institution unitary business shall be redetermined for any period in accordance with this part, the commissioner shall recalculate the allocation attributable to such bank or financial institution unitary business, and any indicated increase or decrease in allocation shall be effected in the next succeeding general allocation to the respective county and municipal governments, as appropriate; and
      6. (F) The commissioner has the authority and power to prescribe forms upon which all banks or financial institution unitary businesses shall report such facts and information as will enable the department to ascertain the correctness of the allocation. The department has the full power to summon witnesses, to inspect or require the production of books and papers, and to obtain and consider any evidence and records other than the reports submitted by such banks or financial institution unitary businesses that it may deem proper or necessary to carry out its responsibilities under subdivision (a)(1). If any bank or financial institution unitary business subject to this part fails, refuses or neglects to collect and file such form with the department as provided by this section, the department shall determine the amount of the allocation in regard to such bank or financial institution unitary business on the basis of the best information available; and
    2. (2) After allocations to counties and municipalities as provided in subdivision (a)(1), the remainder of the taxes collected under this part shall be applied to and become a part of the general fund of the state.
  2. (b) The general assembly is exercising its discretion granted in Constitution of Tennessee, Article II, § 28 to establish the manner in which banks shall be taxed. The allocation of taxes to local governments provided in subdivision (a)(1) shall be in lieu of the taxation of the subclassification of intangible personal property designated as “shares of banks and banking associations,” and all taxes on the redeemable or cash value of all their outstanding shares of capital stock, certificates of deposit and certificates of investment, by whatever name called, of such bank or banking association; provided, that such bank or banking association shall nonetheless continue to be subject to ad valorem taxes on its real property, tangible personal property and all other taxes to which it is currently subject.
History (4)
  • Acts 1999, ch. 406, § 3
  • 2003, ch. 355, § 42
  • 2005, ch. 500, § 5
  • 2006, ch. 989, § 10.
§ 67-4-2018. Criteria for job tax credit.
  1. (a) This section shall apply to any person who meets all of the following criteria, notwithstanding any other law to the contrary:
    1. (1) The person was formed as a business entity after December 31, 1995;
    2. (2) The person was not subject to Tennessee franchise or excise taxes prior to the date chapter 406 of the Public Acts of 1999 became applicable to it; and
    3. (3) Had the person been subject to franchise taxes, it could have, under former § 67-4-908(c) prior to its repeal by chapter 406, qualified for the job tax credit and any carryover thereof for the calendar tax years 1997 and 1998.
  2. (b) Any person who meets the criteria set forth in subdivisions (a)(1)-(3) shall be entitled to:
    1. (1) In accordance with the provisions and limitations of former § 67-4-908(c) prior to its repeal, compute any job tax credit that it would have been entitled to for the calendar tax years 1997 and 1998, had it been subject to the Tennessee franchise tax for those tax years;
    2. (2) Apply the job tax credit computed under subdivision (b)(1) to the franchise tax that it would have had in that tax year, had it been subject to such tax, and apply any remaining unused carryover thereof to the franchise tax that it had, or would have had, if it had been subject to the franchise tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated;
    3. (3) In accordance with the provisions and limitations of former § 67-4-808(5) prior to its repeal, compute any industrial machinery excise tax credit that it would have had for the calendar tax years 1997 and 1998, had it been subject to the Tennessee excise tax for those tax years;
    4. (4) Apply the industrial machinery excise tax credit computed under subdivision (3) to the excise tax that it would have had, if it had been subject to the excise tax in that tax year, and apply any remaining unused carryover thereof to the excise tax that it had, or that it would have had, if it had it been subject to such tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated. The recapture provisions of former § 67-4-808(4)(D) prior to its repeal shall apply, if any of the industrial machinery purchased in 1997 or 1998 is sold or removed from Tennessee before the expiration of its useful life as established according to the depreciation guidelines in effect for excise tax purposes;
    5. (5) In accordance with the provisions and limitations of former § 67-4-805(b)(2)(C) prior to its repeal, compute any net operating loss carryover that it would have had for the calendar tax years 1997 and 1998 had it been subject to Tennessee excise tax for those tax years; and
    6. (6) Apply any net operating loss carryover computed under subdivision (b)(5) to any Tennessee net earnings subject to Tennessee excise tax, or that would have been subject to excise tax had the person been liable to pay such a tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the loss originated.
History (1)
  • Acts 2000, ch. 982, § 26.
§ 67-4-2019. Exemption for distributions to publicly traded real estate investment trust (public REIT).
  1. There shall be exempt from the payment of the excise tax levied under this part any person treated as a partnership for federal tax purposes that directly or indirectly distributes one hundred percent (100%) of its net earnings or net losses to a public REIT.
History (1)
  • Acts 2006, ch. 1019, § 12.
§ 67-4-2020. Taxes collected from loan and related companies.
  1. This section does not create or impose a new tax, but shall govern allocation of taxes already collected under this part from financial institutions, including loan or trust companies regulated by the department of financial institutions, which do not have deposit facilities. These taxes shall be allocated as follows:
    1. (1)
      1. (A) To cities and counties, an amount for each institution with a branch in this state and each “financial institution unitary business” as defined in this section;
      2. (B) Three percent (3%) of the net earnings of the institution and the net earnings of a financial institution unitary business determined on a combined basis for the second fiscal year preceding the year in which the distribution under this section is made, less seven percent (7%) of the ad valorem taxes paid by the financial institution or financial institution unitary business on its real and tangible personal property for the second fiscal year preceding the year in which the distribution is made. For purposes of this subdivision (1), “net earnings” does not include amounts attributable to interest earned on bonds and other obligations of this state. As used in this section, “financial institution unitary business” includes only those financial institutions that form a unitary business as defined in § 67-4-2004, that file a combined franchise, excise tax return in this state and that have at least one (1) member with a branch in this state. The total amount thus determined shall be allocated between the county and municipal governments where the office of the financial institution or financial institution unitary business is located in the same proportion as the property tax rate of each such taxing jurisdiction shall bear to the sum of the property tax rates;
      3. (C) In circumstances where a financial institution or financial institution unitary business has more than one (1) branch or office, the total allocation attributable to such financial institution or financial institution unitary business as determined in subdivision (1)(B) shall be further allocated between such counties and cities where its branches or offices are located as follows:
        1. (i) The proportionate percentage that is produced by the ratio of outstanding loans and sales contracts receivable in each branch or office of the financial institution or financial institution unitary business to the total outstanding loans and sales contracts receivable of the financial institution or financial institution unitary business shall be determined as of January 1 for each year, and the percentage so determined shall then be applied to the total allocation to determine the portion of the total attributable to each branch or office;
        2. (ii) The branches or offices shall then be grouped each to a common location so as to determine the aggregate allocation of all branches or offices located in each individual county and municipality; and
        3. (iii) The percentage of the total allocation allowable to each county and municipality shall be divided between the county and municipality where the branch or office is maintained in the same proportion as the property tax rates of each for the second year preceding the year in which the distribution under this section is made shall bear to the total of the property tax rates;
      4. (D) The director of the division of property assessments shall provide to the commissioner, periodically on a timely basis, the ad valorem property tax rates for each taxing jurisdiction. The commissioner shall report the amount of such allocations made to each county and municipality to the comptroller of the treasury for audit purposes on an annual basis;
      5. (E) The status of each financial institution or financial institution unitary business as of January 1 of the fiscal year for which the allocation is calculated shall be the determining basis;
      6. (F) If the net earnings of any financial institution or financial institution unitary business shall be redetermined for any period in accordance with this part, the commissioner shall recalculate the allocation attributable to such financial institution or financial institution unitary business, and any indicated increase or decrease in allocation shall be effected in the next succeeding general allocation to the respective county and municipal governments, as appropriate;
      7. (G) The commissioner has the authority and power to prescribe forms upon which all financial institutions or financial institution unitary businesses shall report such facts and information as will enable the department to ascertain the correctness of the allocation. The department has the full power to summon witnesses, to inspect or require the production of books and papers, and to obtain and consider any evidence and records other than the reports submitted by such financial institutions or financial institution unitary businesses that it may deem proper or necessary to carry out its responsibilities under this section. If any financial institution or financial institution unitary business subject to this part fails, refuses or neglects to collect and file such form with the department as provided by this section, the department shall determine the amount of the allocation in regard to such institution on the basis of the best information available;
    2. (2) After allocation to counties and municipalities as provided in subdivision (1), the remainder of the taxes collected under this part shall be applied to and become a part of the general fund of the state.
History (1)
  • Acts 2011, ch. 438, § 3.
§ 67-4-2021. Taxes collected from investment companies.
  1. This section does not create or impose a new tax, but shall govern allocation of taxes already collected under this part from regulated investment companies that are not part of a financial institution unitary business. These taxes shall be allocated as follows:
    1. (1)
      1. (A) To cities and counties, an amount for each institution with a branch in this state as determined in this subdivision (1);
      2. (B) Three percent (3%) of the net earnings of the company less seven percent (7%) of the ad valorem taxes paid by the company on its real and tangible personal property for the second fiscal year preceding the year in which the distribution is made. For purposes of this subdivision (1), “net earnings” does not include amounts attributable to interest earned on bonds and other obligations of this state. The total amount thus determined shall be allocated between the county and municipal governments where the office of the investment company is located in the same proportion as the property tax rate of each such taxing jurisdiction shall bear to the sum of the property tax rates;
      3. (C) In circumstances where an investment company has more than one (1) branch or office, the total allocation attributable to such company as determined in subdivision (1)(B) shall be further allocated between such counties and cities where its branches or offices are located as follows:
        1. (i) The proportionate percentage that is produced by the ratio of account balances attributed to each branch or office of the company to the total account balances of the company shall be determined as of January 1 of each year, and the percentage so determined shall then be applied to the total allocation to determine the portion of the total attributable to each branch or office;
        2. (ii) The branches or offices shall then be grouped each to a common location so as to determine the aggregate allocation of all branches or offices located in each individual county and municipality; and
        3. (iii) The percentage of the total allocation allowable to each county and municipality shall be divided between the county and municipality where the branch or office is maintained in the same proportion as the property tax rates of each for the second year preceding the year in which the distribution under this section is made shall bear to the total of the property tax rates;
      4. (D) The director of the division of property assessments shall provide to the commissioner, periodically on a timely basis, the ad valorem property tax rates for each taxing jurisdiction. The commissioner shall report the amount of such allocations made to each county and municipality to the comptroller of the treasury for audit purposes on an annual basis;
      5. (E) The status of each investment company as of January 1 of the fiscal year for which the allocation is calculated shall be the determining basis;
      6. (F) If the net earnings of any investment company shall be redetermined for any period in accordance with this part, the commissioner shall recalculate the allocation attributable to the company, and any indicated increase or decrease in allocation shall be effected in the next succeeding general allocation to the respective county and municipal governments, as appropriate;
      7. (G) The commissioner has the authority and power to prescribe forms upon which all investment companies shall report such facts and information as will enable the department to ascertain the correctness of the allocation. The department has the full power to summon witnesses, to inspect or require the production of books and papers, and to obtain and consider any evidence and records other than the reports submitted by such companies that it may deem proper or necessary to carry out its responsibilities under this section. If any investment company subject to this part fails, refuses or neglects to collect and file such form with the department as provided by this section, the department shall determine the amount of the allocation in regard to such company on the basis of the best information available;
    2. (2) After allocation to counties and municipalities as provided in subdivision (1), the remainder of the taxes collected under this part shall be applied to and become a part of the general fund of the state.
History (1)
  • Acts 2011, ch. 438, § 4.
§ 67-4-2022. Taxes collected from cemetery companies.
  1. This section does not create or impose a new tax, but shall govern allocation of taxes already collected under this part from cemetery companies as defined in § 46-1-102. These taxes shall be allocated as follows:
    1. (1)
      1. (A) To cities and counties, an amount for each company with an office in this state as determined in this subdivision (1);
      2. (B) Three percent (3%) of the net earnings of the company less seven percent (7%) of the ad valorem taxes paid by the company on its real and tangible personal property for the second fiscal year preceding the year in which the distribution is made. For purposes of this subdivision (1), “net earnings” does not include amounts attributable to interest earned on bonds and other obligations of this state. The total amount thus determined shall be allocated between the county and municipal governments where the office of the company is located in the same proportion as the property tax rate of each such taxing jurisdiction shall bear to the sum of the property tax rates;
      3. (C) In circumstances where a company has more than one (1) office, the total allocation attributable to such company as determined in subdivision (1)(B) shall be further allocated between such counties and cities where its offices are located as follows:
        1. (i) The proportionate percentage that is produced by the ratio of assessed value for ad valorem tax of real and tangible personal property associated with each office of the company, to the total assessed value for all offices of the company shall be determined as of January 1 of each year, and the percentage so determined shall then be applied to the total allocation to determine the portion of the total attributable to each office;
        2. (ii) The offices shall then be grouped each to a common location so as to determine the aggregate allocation of all offices located in each individual county and municipality; and
        3. (iii) The percentage of the total allocation allowable to each county and municipality shall be divided between the county and municipality where the office is maintained in the same proportion as the property tax rates of each for the second year preceding the year in which the distribution under this section is made shall bear to the total of the property tax rates;
      4. (D) The director of the division of property assessments shall provide to the commissioner, periodically on a timely basis, the ad valorem property tax rates for each taxing jurisdiction. The commissioner shall report the amount of such allocations made to each county and municipality to the comptroller of the treasury for audit purposes on an annual basis;
      5. (E) The status of each cemetery company as of January 1 of the fiscal year for which the allocation is calculated shall be the determining basis;
      6. (F) If the net earnings of any cemetery company shall be redetermined for any period in accordance with this part, the commissioner shall recalculate the allocation attributable to the company, and any indicated increase or decrease in allocation shall be effected in the next succeeding general allocation to the respective county and municipal governments, as appropriate;
      7. (G) The commissioner and the county assessors of property shall exchange such information as will enable the department to ascertain the correctness of the allocation;
    2. (2) After allocation to counties and municipalities as provided in subdivision (1), the remainder of the taxes collected under this part shall be applied to and become a part of the general fund of the state.
History (1)
  • Acts 2011, ch. 438, § 5.
§ 67-4-2023. Election for application of section by taxpayer meeting gross sales threshold and receipts factor threshold — Total amount derived from certified distribution sales to be excluded from numerator of receipts factor — Payment of excise tax on amount excluded from numerator. [Effective until January 1, 2025. See the versions on January 1, 2025.]
  1. (a) Notwithstanding any law to the contrary, a taxpayer that meets the gross sales threshold and the receipts factor threshold during the tax period and any taxpayers that are affiliates of such taxpayer shall each qualify for the application of this section and may elect the application of this section by filing an election form with the department and providing such information as may be required by the commissioner on or before the due date of the tax return for the period for which such election is to take effect. Such election shall remain in effect until revoked by the taxpayer or until the taxpayer no longer qualifies for the election.
  2. (b) For purposes of this section, the following shall apply:
    1. (1) A taxpayer meets the gross sales threshold if the taxpayer's sales of tangible personal property made in this state during the tax period to all distributors exceed one billion dollars ($1,000,000,000), as determined under § 67-4-2012 without regard to this section, or if a taxpayer's sales of alcoholic beverages, as defined in § 57-3-101, made in this state to an affiliate that continues the manufacturing process exceed one billion dollars ($1,000,000,000), as determined under § 67-4-2012 without regard to this section;
    2. (2) A taxpayer meets the receipts factor threshold if the taxpayer's receipts factor, as determined under § 67-4-2012 without regard to this section, exceeds ten percent (10%); and
    3. (3)
      1. (A) “Certified distribution sales” means sales of tangible personal property made in this state by the taxpayer to any distributor, whether or not affiliated with the taxpayer, that is resold for ultimate use or consumption outside the state; provided, that the distributor has certified that such property has been resold for ultimate use or consumption outside this state. Such certification shall be made in the manner prescribed by the commissioner.
      2. (B) “Certified distribution sales” also includes sales of alcoholic beverages, as defined in § 57-3-101, when such sales are made in this state by the taxpayer to an affiliate that continues the manufacturing process, prior to the manufactured beverage being sold for ultimate use or consumption outside this state; provided, that the affiliate has certified that such property has been sold for ultimate use or consumption outside this state. Such certification must be made in the manner prescribed by the commissioner.
  3. (c)
    1. (1) A taxpayer that has made the election described in subsection (a) shall, so long as such election is in effect, apportion net earnings and net worth in the manner prescribed elsewhere in this part and the Franchise Tax Law, compiled in part 21 of this chapter; provided, however, that the total amount derived from certified distribution sales shall be excluded from the numerator of the receipts factor, as that term is defined elsewhere in this part and the Franchise Tax Law.
    2. (2) A taxpayer that has made the election described in subsection (a) shall, so long as such election is in effect, pay to the commissioner, annually, a gross receipts tax on the total amount of certified distribution sales excluded from the numerator of the taxpayer's receipts factor for purposes of this part and part 21 of this chapter. The amount of such tax shall be computed in the following manner:
      1. (A) In the case of taxpayers excluding no more than two billion dollars ($2,000,000,000) of certified distribution sales for the tax period, the amount of such tax shall be five-tenths of one percent (0.5%) of the total amount of certified distribution sales;
      2. (B) In the case of taxpayers excluding more than two billion dollars ($2,000,000,000) but no more than three billion dollars ($3,000,000,000) of certified distribution sales for the tax period, the amount of such tax shall be:
        1. (i) Three-eighths of one percent (0.375%) of certified distribution sales in excess of two billion dollars ($2,000,000,000); plus
        2. (ii) Ten million dollars ($10,000,000);
      3. (C) In the case of taxpayers excluding more than three billion dollars ($3,000,000,000) but no more than four billion dollars ($4,000,000,000) of certified distribution sales for the tax period, the amount of such tax shall be:
        1. (i) One-fourth of one percent (0.25%) of certified distribution sales in excess of three billion dollars ($3,000,000,000); plus
        2. (ii) Thirteen million, seven hundred fifty thousand dollars ($13,750,000); and
      4. (D) In the case of taxpayers excluding more than four billion dollars ($4,000,000,000) of certified distribution sales for the tax period, the amount of such tax shall be:
        1. (i) One-eighth of one percent (0.125%) of certified distribution sales in excess of four billion dollars ($4,000,000,000); plus
        2. (ii) Sixteen million, two hundred fifty thousand dollars ($16,250,000).
    3. (3) The tax due under subdivision (c)(2) shall be in addition to all other taxes, including the tax imposed by § 67-4-2007(a) and the tax imposed by § 67-4-2105(a).
History (2)
  • Acts 2015, ch. 514, § 14
  • 2023, ch. 377, §§ 33, 34, 36, 38, 39.
Part 21 Franchise Tax Law of 1999
§ 67-4-2101. Short title.
  1. This part shall be known and may be cited as the “Franchise Tax Law of 1999.”
History (1)
  • Acts 1999, ch. 406, § 4.
§ 67-4-2102. Tax for state purposes only.
  1. The tax imposed in 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 (1)
  • Acts 1999, ch. 406, § 4.
§ 67-4-2103. Corporations subject to tax — Exemptions.
  1. (a) The supervision and collection of the tax imposed by this part is under the direction of the department of revenue, and the department has the authority and power to prescribe forms upon which entities liable for 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 entities.
  2. (b) The commissioner may, within the commissioner's discretion, require any taxpayer to file with its Tennessee franchise tax return, a copy of the federal tax forms filed with the internal revenue service for the same tax year.
  3. (c) All persons subject to the tax imposed by this part shall register with the department of revenue by completing and filing a registration information form prescribed by the department. Such form shall be filed with the department within sixty (60) days after July 1, 1999, or within fifteen (15) days after the date the person becomes subject to the tax, whichever date occurs last; provided, that persons registered under prior law, or who have filed a return under prior law, are not required to register for the tax imposed by this part.
  4. (d) Notwithstanding any law to the contrary, except as otherwise provided in this subsection (d), for tax years beginning on or after January 1, 2004, a taxpayer that is a member of an affiliated group or a financial institution affiliated group may elect to compute its net worth on a consolidated basis; provided, that, upon such election, each member of the group shall be required to compute its net worth on a consolidated basis. However, such election shall not be allowed, unless each member of the group closes its taxable year on the same date, except that the election shall be allowed when a member exits the group during the taxable year due to a change in ownership, merger, or liquidation of the member, in which case the member exiting the group shall be excluded from the group and shall compute its net worth as otherwise provided in this part.
  5. (e) If a taxpayer joins an affiliated group or financial institution affiliated group and the group has elected to compute its net worth on a consolidated basis, the taxpayer joining the group shall be bound by the group's election.
  6. (f) If an affiliated group does not qualify as a financial institution affiliated group but contains a member that is classified as a financial institution based solely on the fact that the member generates more than fifty percent (50%) of its gross income from conducting the business of a financial institution, then any such member shall calculate its net worth base using the apportionment methodology applicable to the entire group.
  7. (g) A taxpayer electing to compute its net worth on a consolidated basis shall make such election by filing a group registration form with the department and providing such information as may be reasonably required by the commissioner on or before the due date of the tax return for the period for which such election is to take effect. If a member of an affiliated group or a financial institution affiliated group enters or leaves the group at any time during the tax year, the department shall be advised by filing an amended group registration form and providing such information as the commissioner may reasonably require on or before the due date of the tax return for the period during which such event occurs. The election of an affiliated group to compute its net worth on a consolidated basis shall not be terminated solely as a result of the taxpayer's failure to advise the department of members entering or leaving the group.
  8. (h) Once a taxpayer elects to compute its net worth on a consolidated basis, such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The affiliated group may revoke such election after the minimum period by filing a group registration revocation form with the department and providing such information as the commissioner may reasonably require on or before the due date of the tax return for the period during which such election is to be revoked.
  9. (i) The commissioner is authorized to accept a late election, a late revocation of an election, or to permit an early revocation of an election to compute net worth on a consolidated basis, if the commissioner determines that there is a good and reasonable cause for such action. For tax returns filed for periods beginning January 1, 2004, and ending on or before December 31, 2006, an affiliated group shall be allowed to compute its net worth on a consolidated basis by filing an amended return along with a group registration form and such information as may be reasonably required by the commissioner.
  10. (j)
    1. (1) Upon written request by the taxpayer making the election under subsection (d), the commissioner is authorized, in the commissioner’s discretion, to allow the exclusion of one (1) or more persons that would otherwise be members of the taxpayer’s affiliated group, if the commissioner determines that:
      1. (A)
        1. (i) Such persons are included in the taxpayer's affiliated group solely by virtue of a direct or indirect interest and are so operationally remote from the taxpayer that the taxpayer would be unable to obtain the information necessary to calculate the net worth of the group if such persons were included as members; or
        2. (ii) Such person has a direct or indirect interest in both the taxpayer and one or more persons described in subdivision (j)(1)(A)(i) and is so operationally remote from the taxpayer that the taxpayer would be unable to obtain the information necessary to calculate the net worth of the group if such person was included as a member; and
      2. (B) The exclusion of such persons from the affiliated group would result in a fair representation of the affiliated group's consolidated net worth.
    2. (2) Such written request shall provide such information as may be reasonably required by the commissioner and shall be submitted on or before the due date of the tax return for the period for which such exclusion is to take effect. The commissioner is authorized to accept a late request if the commissioner determines that there is a good and reasonable cause for such action. If the commissioner allows the exclusion of persons from the taxpayer's affiliated group under subdivision (j)(1), all members of the taxpayer's affiliated group shall be bound by such exclusion.
History (4)
  • Acts 1999, ch. 406, § 4
  • 2004, ch. 932, § 4
  • 2005, ch. 499, § 80
  • 2012, ch. 842, § 6.
§ 67-4-2104. Doing business in Tennessee a taxable privilege.
  1. Doing business in Tennessee by any person or taxpayer, and/or exercising the corporate franchise, are declared to be taxable privileges. The tax is an accrued tax and is imposed for the exercise of the specified privilege during the period that coincides with the tax year covered by the return required.
History (1)
  • Acts 1999, ch. 406, § 4.
§ 67-4-2105. Persons doing business in state and having substantial nexus in state subject to tax.
  1. (a) All persons doing business in this state and having a substantial nexus in this state, including any limited liability company regardless of how it is treated for federal income tax purposes, or any person exercising the corporate franchise, except for those having not-for-profit status or otherwise exempt under § 67-4-2008, shall pay to the commissioner of revenue annually a privilege tax in addition to all other taxes, the rate and measure of which are hereinafter set forth. The tax shall be paid for the privilege of doing business in Tennessee, and shall be in addition to all other taxes levied by any other statute. Notwithstanding any law to the contrary, a not-for-profit entity shall be subject to the franchise tax on all of its Tennessee net worth that is attributable to activities subject to income taxes under § 512 or any other provision of subtitle A of the Internal Revenue Code. Notwithstanding any law to the contrary, a taxpayer that is exempted from the franchise tax shall be subject to such tax on all of its Tennessee net worth that is attributable to any activities that are unrelated to and outside the scope of the activities that gave the entity its exempt status.
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  2. (b) Every taxpayer as described in subsection (a) shall, as a recompense for the protection of its local activities and as compensation for the benefits it receives from doing business in Tennessee, pay the tax imposed by this part.
  3. (c) The tax imposed by this part shall apply to taxpayers whose business is being conducted by a receivership or trusteeship appointed by any court of competent jurisdiction, and shall continue to accrue until such time as the taxpayer has been actually and legally dissolved or withdrawn from this state. A person doing business in Tennessee without incorporating, domesticating, qualifying or otherwise registering in Tennessee or doing business in Tennessee while its charter, domestication, qualification or other registration is forfeited, revoked or suspended shall not be relieved from filing a return and paying the franchise tax levied by this part for each tax year that it does business in Tennessee.
  4. (d)
    1. (1) A financial institution shall be presumed, subject to rebuttal, to be doing business in this state, if the sum of its assets and the absolute value of its deposits attributable to sources within this state is five million dollars ($5,000,000) or more.
    2. (2) Additionally, a financial institution shall be deemed to be doing business in this state, if the institution:
      1. (A) Maintains an office in this state;
      2. (B) Has an employee, representative or independent contractor conducting business in this state;
      3. (C) Regularly sells products or services of any kind or nature to customers in this state that receive the product in this state;
      4. (D) Regularly solicits business from potential customers in this state;
      5. (E) Regularly performs services outside this state that are consumed in this state;
      6. (F) Regularly engages in transactions with customers in this state that involve intangible property, including loans, and result in receipts flowing to the taxpayer from within this state;
      7. (G) Owns or leases property located in this state; or
      8. (H) Regularly solicits and receives deposits from customers in this state.
  5. (e) Notwithstanding any other provision to the contrary, a financial institution is not considered to be conducting the business of a financial institution in this state, if the only activity of the financial institution in this state is the ownership of an interest in one (1) or more of the following types of property, including those activities within this state that are reasonably required to evaluate and complete the acquisition or disposition of the property, or the servicing of the property, or the income from it, the collection of income from the property, or the acquisition or liquidation of the collateral relating to the property:
    1. (1) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company as those terms are defined by the Internal Revenue Code of 1986;
    2. (2) An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates;
    3. (3) An interest in a loan, lease, note or other assets attributed to this state and in which the payment obligations were solicited and entered into by an independent person that is not acting on behalf of the owner;
    4. (4) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed to this state and in which the payment obligations were solicited and entered into by an independent person that is not acting on behalf of the owner;
    5. (5) An interest in demand deposit clearing accounts, federal funds, certificates of deposit and other similar wholesale banking instruments issued by other financial institutions;
    6. (6) An interest in a security;
    7. (7) An interest of a financial institution in any intangible, tangible, real or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation that is in default, whether secured or unsecured, if the ownership of the interest would be exempt otherwise as provided in subdivisions (e)(1)-(4);
    8. (8) For the purposes of subdivisions (e)(3) and (4), an “independent person who is not acting on behalf of the owner” is defined as follows:
      1. (A) At the time of the acquisition of the assets, the owner of the assets shall not directly or indirectly own fifteen percent (15%) or more of the outstanding stock or, in the case of a partnership, fifteen percent (15%) or more of the capital or profits interest of the entity from which the owner originally acquired the assets. In determining indirect ownership, an owner is deemed to own all of the stock, capital interest or profits interest owned by another person, if the owner directly owns fifteen percent (15%) or more of the stock, capital interest or profits interest in that other person. Also, the owner is deemed to own all stock, capital interest and profits interest directly owned by any intermediary parties in the transaction, to the extent a fifteen percent (15%) or more chain of ownership of stock, capital interest or profits interest exists between the owner and any intermediary party;
      2. (B) The entity from which the owner acquired the assets shall regularly sell, assign or transfer interest in such assets to three (3) or more persons during the full twelve-month period immediately preceding the month of acquisition; and
      3. (C) The entity from which the owner acquired the assets shall not sell, assign or transfer ninety percent (90%) or more of its exempt assets to the owner during the full twelve-month period immediately preceding the month of acquisition.
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History (8)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 982, §§ 27, 28, 49, 50
  • 2003, ch. 355, § 38
  • 2003, ch. 418, § 11
  • 2006, ch. 1019, § 9
  • 2013, ch. 321, § 3
  • 2015, ch. 514, § 15
  • 2024, ch. 950, § 1.
§ 67-4-2106. Rate of tax.
  1. (a) The privilege tax imposed on all taxpayers shall be a tax of twenty-five cents (25¢) per one hundred dollars ($100), or major fraction thereof, of a taxpayer's net worth, determined in accordance with subsection (b), at the close of the tax year covered by the required return.
  2. (b) For purposes of this section, for taxpayer's filing on a separate entity basis, “net worth” is defined as the difference between a taxpayer's total assets less its total liabilities computed in accordance with generally accepted accounting principles. However, if the taxpayer does not maintain its books and records in accordance with generally accepted accounting principles, net worth shall be computed in accordance with the accounting method used by the taxpayer for federal tax purposes, so long as the method fairly reflects the taxpayer's net worth for purposes of the tax levied by this part. For taxpayers required by this part to file as a unitary group on a combined basis, “net worth” is defined as the difference between each unitary groups' taxpayers' total assets less its total liabilities computed in accordance with generally accepted accounting principles. For a taxpayer electing to compute its net worth on a consolidated basis, net worth is defined as the difference between the total assets less the total liabilities of the affiliated group at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet including all members of the group. The pro forma consolidated balance sheet shall be prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated. For a captive REIT affiliated group, “net worth” is defined as the difference between the total assets less the total liabilities of the affiliated group at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet including all members of the group. The pro forma consolidated balance sheet shall be prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
  3. (c) For purposes of the franchise tax levied by this part, a business entity shall be classified as a corporation, partnership, or other type business entity, consistent with the way the entity is classified for federal income tax purposes, and subject to tax in accordance with this part 21. Notwithstanding any law to the contrary, entities that are disregarded for federal income tax purposes, except for limited liability companies whose single member is a corporation, shall not be disregarded for Tennessee franchise tax purposes. Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file franchise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2112, each taxpayer shall be considered a separate and single business entity for Tennessee franchise tax purposes and shall file its Tennessee franchise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group.
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History (4)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 982, §§ 29-31
  • 2004, ch. 932, § 5
  • 2010, ch. 1134, §§ 13, 14.
§ 67-4-2107. Tax diminished by operating deficits or business losses deemed impairment of capital.
  1. (a) Where a corporation doing business without surplus or undivided profits has had the value of its capital stock impaired by operating deficits or other business losses, such as fire, flood, tornado, or other natural disasters, and where such deficit or loss is carried upon the books and records of the corporation as an impairment of capital, the measure of the tax shall be diminished by such loss or deficit.
  2. (b) If the capital stock of a corporation that is a subsidiary of another corporation or closely affiliated with another corporation by stock ownership is inadequate for its business needs apart from credit extended or indebtedness guaranteed by the parent or an affiliated corporation, in determining the amount of capital, surplus and undivided profit of such corporation with respect to its liability for the tax imposed by this part, there shall be included in the measure of the tax the indebtedness owed to or guaranteed by the parent or an affiliated corporation. If necessary to apportion such indebtedness, the methods of allocation set forth in this part shall be used.
History (5)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 982, § 32
  • 2002, ch. 729, § 1
  • 2004, ch. 932, § 6
  • 2013, ch. 321, §§ 4, 5.
§ 67-4-2108. [Repealed]
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History (10)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 982, §§ 33, 51, 57
  • 2000, ch. 983, § 12
  • 2004, ch. 924, §§ 5, 18
  • 2006, ch. 1019, § 10
  • 2009, ch. 530, § 14
  • 2010, ch. 1134, § 39
  • 2022, ch. 1139, § 2
  • 2023, ch. 377, § 22
  • repealed by Acts 2024, ch. 950, §  2, effective May 10, 2024.
§ 67-4-2109. Credit for gross premiums tax and job tax. [Effective on July 1, 2025. See the version effective until July 1, 2025.]
  1. (a) As used in subsection (b):
    1. (1) “Best interests of the state” means a determination by the commissioner of revenue and the commissioner of economic and community development that the capital investment or jobs are a result of the credit provided in this section. In addition to its use in subsection (b), the definition in this subdivision (a)(1) shall apply to this section in its entirety unless otherwise specifically provided;
    2. (2)
      1. (A) “Enhancement county” means a county that meets one (1) of the following criteria for any month during the twenty-four (24) months immediately prior to the creation of any qualified job for which a job tax credit is sought pursuant to subsection (b), based on monthly statistics from the department of labor and workforce development:
        1. (i) The average number of dislocated workers in the county exceeds the average number of dislocated workers in this state; or
        2. (ii) The per capita income of the county is less than Tennessee's average per capita income;
      2. (B) Notwithstanding subdivision (a)(2)(A), based on an annual evaluation as of July 1 of each year, the commissioner of economic and community development may determine that a county qualifies as an enhancement county if the county experiences substantial characteristics of economic distress, including, but not limited to, major loss of employment, recent high unemployment rates, traditionally low levels of family incomes, high levels of poverty and high concentrations of employment in declining industries;
      3. (C) Upon determining that a county qualifies as an enhancement county under subdivision (a)(2)(A) or (a)(2)(B), the department of economic and community development shall designate the county as a tier 1, tier 2, tier 3, or tier 4 enhancement county based on unemployment, per capita income, and poverty levels of all Tennessee counties using statistical data prepared by any agency of the state or federal government no later than July 1 of each year. A list of all tier 1, tier 2, tier 3, and tier 4 enhancement counties shall be published annually by the department of economic and community development;
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    3. (3) “Industrial wage job” means a qualified job with wages equal to or greater than the state's average occupational wage, as defined in § 67-4-2004, for the month of January of the year during which the job was created;
    4. (4) “Investment period” means the period during which qualified jobs are created as a result of the required capital investment; provided, however, that the period shall not exceed three (3) years from the effective date of the business plan;
    5. (5) “Qualified business enterprise” means an enterprise:
      1. (A) In which the business has made the required capital investment necessary to permit the creation or expansion of manufacturing, warehousing and distribution, processing tangible personal property, research and development, computer services, call centers, headquarters facilities, as defined in § 67-6-224(b), back office operations, convention or trade show facilities, or tourism-related businesses, including, but not limited to, restaurants, lodging establishments, or other tourism-related attractions;
      2. (B) In which the business has made the required capital investment necessary to permit the creation or expansion of a repair service facility primarily engaged in providing repairs for aircraft owned by unrelated commercial, governmental or foreign persons; or
      3. (C) That promotes high-skill, high-wage jobs in high-technology areas, emerging occupations or skilled manufacturing jobs in which the business has made the required capital investment necessary to permit an increase in the number of qualified jobs in that county and that receives an approval from the commissioner of revenue and the commissioner of economic and community development in a manner prescribed by the department of revenue;
    6. (6) “Qualified job” means a job that meets all of the following criteria:
      1. (A)
        1. (i) Except as provided in subdivision (a)(6)(A)(ii), the job position is a permanent, rather than seasonal or part-time, employment position providing employment in a qualified business enterprise for at least twelve (12) consecutive months to a person for at least thirty-seven and one-half (37½) hours per week with minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act, compiled in title 56, chapter 7, part 22; or
        2. (ii) A majority of the duties that the job position entails involve adventure tourism, as defined in § 11-11-203; the qualified business enterprise that created the job position is located in an area designated as an adventure tourism district pursuant to § 11-11-204(c); and the job position is:
          1. (a) A permanent employment position created on or after July 1, 2017, providing employment in a qualified business enterprise for at least twelve (12) consecutive months to a person for at least thirty-seven and one-half (37½) hours per week with or without minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act;
          2. (b) A position providing seasonal employment, as defined in § 50-7-306 for at least twenty-six (26) consecutive weeks, created on or after July 1, 2017, with or without minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act; provided, that, for the purpose of calculating the number of jobs that a qualified business has created under subdivision (b)(1)(C) in order to qualify for the job tax credit, a position of seasonal employment shall be counted as one-half (½) of one (1) job; or
          3. (c) A position providing part-time employment for at least twenty (20) hours per week for twelve (12) consecutive months, created on or after July 1, 2017, with or without minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act; provided, that, for the purpose of calculating the number of jobs that a qualified business has created under subdivision (b)(1)(C) in order to qualify for the job tax credit, a position of part-time employment shall be counted as one-half (½) of one (1) job;
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      2. (B) The job position is newly created in this state, and:
        1. (i) For a permanent position under subdivision (a)(6)(A)(i), for at least ninety (90) days prior to being filled by the taxpayer, the job position did not exist in this state as a job position of the taxpayer or of another business entity; or
        2. (ii) For a permanent, part-time, or seasonal position under subdivision (a)(6)(A)(ii), for at least thirty-six (36) months prior to being filled by the taxpayer, the job position did not exist in this state as a job position of the taxpayer or of another business entity;
      3. (C) The job position is filled; provided, however, that a position will be deemed filled if it subsequently becomes vacant but is refilled within a period of not more than ninety (90) days; and
      4. (D) In the case of back office operations job positions under subdivision (a)(5)(A), the job position must meet the definition of industrial wage job under subdivision (a)(3); and
    7. (7) “Required capital investment”, except for convention or trade show enterprises, means an investment of five hundred thousand dollars ($500,000) in real property, tangible personal property or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. For businesses engaged in convention or trade show enterprises, “required capital investment” means an investment of ten million dollars ($10,000,000) in such property in the same manner described for other enterprises. A capital investment shall be deemed to have been made as of the date of payment or the date the business enterprise enters into a legally binding commitment or contract for purchase or construction.
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  2. (b)
    1. (1) Job Tax Credit; General Provisions.
      1. (A) Subject to the requirements set forth in this subsection (b), there shall be allowed to any qualified business enterprise that makes the required capital investment a credit equal to four thousand five hundred dollars ($4,500) for each qualified job created during the investment period.
      2. (B) The qualified business enterprise shall file a business plan with the commissioner in order to qualify for the credit provided by this subsection (b). The business plan shall be filed in a manner prescribed by the commissioner and shall describe the investment to be made, the number of jobs the investment will create, the expected dates the jobs will be filled and the effective date of the plan.
      3. (C) In order to qualify for the credit, the qualified business enterprise must, within the investment period, make the required capital investment and create at least twenty-five (25) qualified jobs; provided, that if the qualified business enterprise is located in a tier 3 enhancement county, the qualified business enterprise must, within the investment period, make the required capital investment and create at least twenty (20) qualified jobs; provided further, that if the qualified business enterprise is located in a tier 4 enhancement county, the qualified business enterprise must, within the investment period, make the required capital investment and create at least ten (10) qualified jobs. The credit provided in subdivision (b)(1)(A) shall first apply in the tax year in which the qualified business enterprise first satisfies the capital investment and job creation requirements and in subsequent tax years within the investment period in which further net increases occur above the level of employment established when the credit was last taken.
      4. (D) The credit shall apply against the franchise tax imposed by this part and the excise tax imposed by part 20 of this chapter; provided, however, that the credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any unused credit may be carried forward in any tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years.
      5. (E) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the findings contained within the business plan and to determine that the business enterprise has complied with all statutory requirements so as to be entitled to the credit.
      6. (F) Nothing in this subsection (b) shall require that the taxpayer establish its commercial domicile in this state in order to receive the credit provided in this subsection (b).
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    2. (2) Job Tax Credit; Additional Annual Credit. In addition to the credit allowed in subdivision (b)(1), the following tax credit shall be allowed in the circumstances described; provided, that the taxpayer otherwise meets all of the requirements of subdivision (b)(1):
      1. (A) If the qualified business enterprise is located in a tier 2, tier 3, or tier 4 enhancement county, an annual credit shall be allowed as follows:
        1. (i) If the qualified business enterprise is located in a tier 2 enhancement county, the additional annual credit shall be allowed for a period of three (3) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        2. (ii) If the qualified business enterprise is located in a tier 3 enhancement county, the additional annual credit shall be allowed for a period of five (5) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        3. (iii) If the qualified business enterprise is located in a tier 4 enhancement county, the additional annual credit shall be allowed for a period of five (5) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D); and
        4. (iv) The additional annual credit shall equal four thousand five hundred dollars ($4,500) for each qualified job; provided, that the job remains filled by employees during the year in which the credit is taken. This annual credit may be used to offset up to one hundred percent (100%) of the taxpayer's franchise and excise tax liability for that year. Any unused annual credit, however, shall not be carried forward beyond the year in which the credit originated;
      2. (B) If the qualified business enterprise involves a higher level of investment and job creation, as specifically described in subdivisions (b)(2)(B)(i)-(v), an annual credit shall be allowed as follows:
        1. (i) If the investment exceeds one billion dollars ($1,000,000,000) and at least five hundred (500) industrial wage jobs are created, the additional annual credit shall be allowed for a period of twenty (20) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
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        2. (ii) If the investment exceeds five hundred million dollars ($500,000,000) and at least five hundred (500) industrial wage jobs are created, the additional annual credit shall be allowed for a period of twelve (12) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
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        3. (iii) If the investment exceeds two hundred fifty million dollars ($250,000,000) and at least two hundred fifty (250) industrial wage jobs are created, the additional annual credit shall be allowed for a period of six (6) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
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        4. (iv) If the investment exceeds one hundred million dollars ($100,000,000) and at least one hundred (100) industrial wage jobs are created, the additional annual credit shall be allowed for a period of three (3) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        5. (v) If the investment exceeds ten million dollars ($10,000,000) and at least one hundred (100) qualified jobs are created that also meet the definition of headquarters staff employees under § 67-6-224 and pay at least one hundred fifty percent (150%) of the state's average occupational wage for the month of January of the year in which the jobs are created, the additional annual credit shall be allowed for a period of three (3) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        6. (vi) The additional annual credit shall equal five thousand dollars ($5,000) for each job specifically described in subdivisions (b)(2)(B)(i)-(v); provided, that the jobs remain filled during the year in which the credit is being taken. This annual credit may be used to offset up to one hundred percent (100%) of the taxpayer's franchise and excise tax liability for that year. Any unused annual credit, however, shall not be carried forward beyond the year in which the credit originated;
        7. (vii) The taxpayer shall be allowed a period not to exceed three (3) years from the effective date of the business plan in order to make the required capital investment necessary to qualify for the additional annual credit allowed under this subdivision (b)(2)(B). If determined to be in the best interests of the state, the three-year period for making the required investment may be extended by the commissioner of economic and community development for a reasonable period not to exceed two (2) additional years, or four (4) additional years if the investment exceeds one billion dollars ($1,000,000,000);
      3. (C) If the qualified business enterprise is located in an area designated as an adventure tourism district pursuant to § 11-11-204(c), an annual credit shall be allowed as follows:
        1. (i) If the qualified business enterprise is located in a tier 1 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least twenty-five (25) qualified jobs;
        2. (ii) If the qualified business enterprise is located in a tier 2 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least nineteen (19) qualified jobs;
        3. (iii) If the qualified business enterprise is located in a tier 3 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least thirteen (13) qualified jobs;
        4. (iv) If the qualified business enterprise is located in a tier 4 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least ten (10) qualified jobs;
        5. (v) The additional annual credit shall be allowed for a period of three (3) years for a qualified business enterprise located in a tier 1 or tier 2 enhancement county, beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        6. (vi) The additional annual credit shall be allowed for a period of five (5) years for a qualified business enterprise located in a tier 3 or tier 4 enhancement county, beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D); and
        7. (vii) The additional annual credit shall equal four thousand five hundred dollars ($4,500) for each qualified job; provided, that the job remains filled by employees during the year in which the credit is being taken. This annual credit may be used to offset up to one hundred percent (100%) of the taxpayer's franchise and excise tax liability for that year. Any unused annual credit, however, shall not be carried forward beyond the year in which the credit originated;
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      4. (D) The qualified business enterprise may first apply the credit provided in this subdivision (b)(2) in any tax year after the qualified business enterprise has met all of the requirements of subdivisions (b)(1) and (b)(2); provided, however, that the qualified business enterprise must begin to apply the credit no later than the first tax year following the end of the investment period;
      5. (E) Notwithstanding any provision to the contrary, the circumstances described in subdivisions (b)(2)(A)(i)-(ii) and (b)(2)(B)(i)-(v) shall be deemed to be mutually exclusive and a taxpayer shall not receive a credit under more than one (1) such subdivision for jobs created during a single investment period.
    3. (3) Job Tax Credit; Special provisions. This subdivision (b)(3) shall serve as exceptions to subdivisions (b)(1) and (2). To the extent a conflict exists between this subdivision (b)(3) and subdivision (b)(1) or (b)(2), this subdivision (b)(3) shall control. Otherwise, subdivisions (b)(1) and (2) shall apply to any credits provided under this subsection (b):
      1. (A) The job tax credit allowed in subdivision (b)(1) shall be increased from four thousand five hundred dollars ($4,500) to five thousand dollars ($5,000) if the qualified business enterprise qualifies for the additional annual credit allowed in subdivision (b)(2)(B);
      2. (B) If the qualified business enterprise is located in a tier 2 enhancement county, the taxpayer shall have three (3) years in order to create the minimum number of qualified jobs necessary to receive the credit. If the qualified business enterprise is located in a tier 3 or tier 4 enhancement county, the taxpayer shall have five (5) years to create the minimum number of qualified jobs necessary to receive the credit;
      3. (C)
        1. (i) If the required capital investment exceeds one billion dollars ($1,000,000,000), the time limitations otherwise applicable to the carry-forward of unused job tax credits under subdivision (b)(1)(D) and subdivision (b)(2)(B)(vi) shall not apply, and any unused credit may be carried forward until fully utilized, if the commissioner of revenue and the commissioner of economic and community development have determined that the allowance of the additional carry-forward is in the best interests of the state;
        2. (ii) Subdivision (b)(3)(C)(i) shall apply only to applications received and approved by the commissioner of revenue and the commissioner of economic and community development on or before January 1, 2011;
      4. (D) The commissioner of revenue, with the approval of the commissioner of economic and community development, is authorized to approve job tax credit in cases where the newly created position existed in this state as a job position of the taxpayer or of another business entity less than ninety (90) days prior to being filled by the taxpayer; provided, that all other requirements to obtain the credit have been satisfied by the taxpayer; and provided, further, that the commissioner of revenue and the commissioner of economic and community development have determined that allowance of the credit is in the best interests of the state;
      5. (E) A taxpayer that has established its international, national or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224, or a taxpayer that has established an international, national or regional warehousing or distribution hub in this state and has met the requirements to be a qualified new or expanded warehouse or distribution facility, shall be allowed to offset up to one hundred percent (100%) of its franchise or excise, or both, tax liability by job tax credits, or any carry-forward of the job tax credits, if the commissioner of revenue and the commissioner of economic and community development determine that increasing the percentage of offset permitted to the taxpayer is in the best interests of the state. The commissioner of revenue and the commissioner of economic and community development shall determine the percentage of franchise or excise, or both, tax liability allowed to be offset by this subdivision (b)(3)(E) that otherwise allowed by subdivision (b)(1) and the period during which the increased offset shall continue;
      6. (F) The credits otherwise provided in this subsection (b) shall be allowed for new high-skill, high-wage, qualified jobs in high-technology areas, emerging occupations or skilled manufacturing, regardless of whether net employment is increased; provided, however, that this subdivision (b)(3)(F) shall apply only to new jobs created by a taxpayer who failed to meet the net increase requirement due to worker layoffs or reductions, where such workers have been certified by the federal department of labor's division of trade adjustment assistance as having been adversely affected by foreign trade, so as to be eligible for assistance in accordance with the federal Trade Adjustment Assistance Reform Act of 2002 (U.S.C. title 19). A taxpayer seeking qualification for jobs tax credits under this subsection (b) shall be required to satisfy all other requirements of this subsection (b), and shall be required to provide evidence to the commissioner of revenue of the department of labor's certification of eligibility for assistance for the taxpayer's adversely affected worker group;
      7. (G)
        1. (i) The credits provided by this subsection (b) may be computed by a general partnership that establishes and operates a call center in Tennessee that is placed in service by the general partnership on or after June 30, 2003, and that would otherwise qualify for the job tax credit provided in this subsection (b); provided, that the credit shall first apply in the tax year in which the qualified business enterprise increases net full-time employment by four hundred (400) or more jobs, and shall then apply in those subsequent fiscal years in which further net increases occur above the level of employment established when the credit was last taken. The credit provided in this subsection (b) may also be computed by a general partnership that has established an international, national or regional headquarters in this state that meets the definition of a qualified headquarters facility under § 67-6-224 and would otherwise qualify for the job tax credits provided in this subsection (b). The amount of the credit shall be computed under this subsection (b) as if the general partnership were subject to franchise and excise tax under part 20 of this chapter and this part. With respect to the general partnership tax year during which a credit is so computed, a partner in the general partnership that is subject to Tennessee franchise and excise tax and that directly holds a first tier ownership interest in the general partnership may take a percentage of the credit that equals the total amount of the credit for the general partnership multiplied by the partner's percentage interest in the general partnership on the last day of the general partnership tax year against the partner's franchise and excise tax liability for the partner's tax year that includes the last day. The job tax credit passed through from the general partnership to the first tier partner under this subsection (b) shall, in the hands of the first tier partner, be subject to applicable provisions and limitations otherwise provided by this subsection (b), including carry-forward provisions; provided, that in no case shall the credit or a carryover thereof be taken by a business entity, unless it was a partner in the general partnership and subject to franchise and excise tax at the time the credit was earned by the general partnership;
        2. (ii) This subdivision (b)(3)(G) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit;
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      8. (H) [Expired July 1, 2015; see (b)(3)(H)(ii).]
        1. (i) Any airline company that has established its international, national or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224 may elect to convert any available and unused job tax credit created under subdivision (b)(1) and any available and unused additional annual credit created under subdivision (b)(2) into a refundable credit which shall be discounted to net present value using the interest rate in effect pursuant to § 67-1-801 on the date of such election; provided, however, that the election shall be available only if the commissioner of revenue and the commissioner of economic and community development determine that allowance of the election is in the best interests of the state;
        2. (ii) This subdivision (b)(3)(H) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
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  3. (c) In accordance with § 56-4-217, there shall be credited upon the tax imposed by this part the net amount of gross premiums tax paid that is measured by a period that corresponds to the franchise tax period on which the return is based, plus any amount used to offset payment to the Tennessee guaranty association that has not otherwise been recovered, but not including the gross premiums receipts tax paid by fire insurance companies for the purpose of executing the fire marshal law.
  4. (d) When an audit of a tax return for any year not barred by the statute of limitations discloses a change in the amount of tax due, there may be applied upon it as a credit any amount that the taxpayer is otherwise entitled to receive either as a credit under parts 4-6 of this chapter for franchise taxes paid, or as a refund thereof under § 67-1-707. This tax credit allowance may be applied, notwithstanding the statute of limitations or the requirement for approval of certain refunds by the commissioner and the attorney general and reporter, if such was made under § 67-1-707, and also any statutory or regulatory requirement under various sections of parts 4-6 of this chapter that the franchise tax be paid prior to the allowance of any credit.
  5. (e)
    1. (1) Each taxpayer is considered a separate entity; therefore, in the case of mergers, consolidations, and like transactions, no tax credit incurred by the predecessor taxpayer shall be allowed as a deduction on the tax return filed by the successor taxpayer. With the exception set forth in subdivision (e)(2), a credit carryforward may be taken only by the taxpayer that generated it.
    2. (2) Notwithstanding the provisions contained in subdivision (e)(1), when a taxpayer merges out of existence and into a successor taxpayer that has no income, expenses, assets, liabilities, equity or net worth, any qualified Tennessee credit carryover of the predecessor that merged out of existence shall be available for carryover on the return of the surviving successor; provided, that the time limitations for the carryover have not expired.
    3. (3) A unitary group of financial institutions may take any qualified credit that was generated by any group member that is in existence as a member of the group at the end of the group's tax year; provided, that such credit has not previously been taken by the member itself before it joined the group or by another unitary group of financial institutions at the time the financial institution generating the credit was a member of that group; and provided, further, that the credit carryover shall be subject to the limitations set forth in this subsection (e).
  6. (f)
    1. (1) As used in this subsection (f), unless the context otherwise requires:
      1. (A) “Full-time employee job” means a permanent, rather than seasonal or part-time, employment position, providing employment for at least twelve (12) consecutive months, to a person for at least thirty-seven and one-half (37.5) hours per week, if that person is enrolled in minimal health care benefits, as described in title 56, chapter 7, part 22; and
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      2. (B) “Part-time employee job” means a part-time employment position, providing employment for at least twelve (12) consecutive months, to a person for at least ten (10) hours per week.
    2. (2) A job tax credit of five thousand dollars ($5,000) for each net new full-time employee job, and two thousand dollars ($2,000) for each net new part-time employee job, for a person with disabilities who is receiving state services directly related to such disabilities, shall be allowed against a taxpayer's franchise and excise liability tax for that year; provided, that:
      1. (A) The employment of such individual creates a net increase in the number of persons with disabilities employed by the taxpayer within the ninety-day period immediately preceding the employment;
      2. (B) The taxpayer provides such employment for at least twelve (12) consecutive months and for no less than the minimal hours per week; and for employees enrolled in the minimal health care benefits described in subdivision (f)(1), for respective full-time employment jobs and part-time employment jobs;
      3. (C) The credit allowed by this subdivision (f)(2) for the employment of persons with disabilities shall first apply in the tax year in which the taxpayer increases net new employment of such persons by one (1) or more, and in those subsequent fiscal years in which further net increases occur above the level of such employment established when the credit was last taken;
      4. (D) The taxpayer is not required to make a capital investment in a qualified business enterprise in order to receive the credit allowed by this subdivision (f)(2) for the employment of persons with disabilities; and
      5. (E) The credit provided by this subdivision (f)(2) may be granted only to taxpayers who participate in an existing employment incentive program, pursuant to which persons with disabilities are being served by the department of mental health and substance abuse services, the department of disability and aging, the division of rehabilitation services of the department of human services, council on developmental disabilities, or any other similar state employment incentive program. Such employment incentive programs shall annually provide to the commissioner of revenue for approval, on or before July 1, a list of their existing employment incentive programs promoting the hiring of disabled individuals.
    3. (3) The taxpayer shall file a plan with the commissioner of revenue, on a form prescribed by the commissioner, in order to qualify for the credit. The form shall be filed on or before the last day of the fiscal year in which the employment begins, and shall state the number of persons with disabilities newly employed. The commissioner of revenue shall certify a taxpayer's participation in one (1) of these programs and the number of persons employed by the taxpayer meeting the criteria established by this subsection (f).
    4. (4) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the amount of credit allowed by this subsection (f), and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the job tax credit.
    5. (5) Subdivision (b)(1)(D), relating to the carryforward of any unused job tax credit, shall apply to the credit allowed by this subsection (f).
  7. (g) [Expired July 1, 2015; see (g)(11)]
    1. (1) For purposes of this subsection (g), “headquarters facility,” “headquarters staff employees,” “investment period,” “new full-time employee job,” “qualified headquarters facility,” and “qualified headquarters facility relocation expenses” shall have the same meanings as defined in § 67-6-224.
    2. (2) In addition to the job tax credit provided in subsection (b), there is allowed a credit against a taxpayer's franchise and excise tax liability equal to any qualified headquarters facility relocation expenses incurred by the taxpayer during the investment period; provided, that the taxpayer meets one (1) of the following criteria:
      1. (A) The taxpayer creates at least one hundred (100) but less than two hundred fifty (250) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage;
      2. (B) The taxpayer creates at least two hundred fifty (250) but less than five hundred (500) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage;
      3. (C) The taxpayer creates at least five hundred (500) but less than seven hundred fifty (750) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage;
      4. (D) The taxpayer creates at least seven hundred fifty (750) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage; or
      5. (E) The taxpayer creates at least five hundred (500) net new full-time employee jobs in connection with a capital investment in excess of one billion dollars ($1,000,000,000).
    3. (3) Notwithstanding any law to the contrary, the total credit allowed to a taxpayer under this subsection (g) shall not exceed the appropriate dollar amount listed in one (1) of the following subdivisions (g)(3)(A)-(E), multiplied by the number of headquarters staff employee positions relocated by the taxpayer to the qualified headquarters facility during the investment period:
      1. (A) For a taxpayer meeting the requirements in subdivision (g)(2)(A), ten thousand dollars ($10,000);
      2. (B) For a taxpayer meeting the requirements in subdivision (g)(2)(B), twenty thousand dollars ($20,000);
      3. (C) For a taxpayer meeting the requirements in subdivision (g)(2)(C), thirty thousand dollars ($30,000);
      4. (D) For a taxpayer meeting the requirements in subdivision (g)(2)(D), forty thousand dollars ($40,000); and
      5. (E) For a taxpayer meeting the requirement in subdivision (g)(2)(E), one hundred thousand dollars ($100,000).
    4. (4) To the extent any amount allowed as a credit under this subsection (g) exceeds the combined tax imposed by this part and by part 20 of this chapter, the amount of such excess shall be considered an overpayment and shall be refunded to the taxpayer. Such refund shall be subject to the procedures of § 67-1-1802; provided, however, notwithstanding any procedure of § 67-1-1802 to the contrary, that a claim for refund must be filed with the commissioner within three (3) years from December 31 of the year in which the qualified headquarters facility relocation expense was incurred.
    5. (5) If the qualified headquarters facility is not utilized as a headquarters facility for a period of at least ten (10) years from the end of the investment period, the taxpayer shall be subject to an assessment of tax, plus applicable interest, calculated in accordance with this subdivision (g)(5). The amount of tax assessed under this subdivision (g)(5) shall equal the total credit or refund, or both, taken pursuant to this subsection (g) multiplied by a fraction, the numerator of which is the number of years the facility is not utilized as a headquarters facility and the denominator of which is ten (10). The amount of interest shall be calculated in accordance with § 67-1-801 from the date the facility is no longer utilized as a headquarters facility until the date paid.
    6. (6)
      1. (A) If the headquarters staff employee position is not filled in Tennessee during the investment period, the taxpayer shall be subject to an assessment of the total amount of credit or refund taken relating to such employee position pursuant to this subsection (g) plus interest; and
      2. (B) If the headquarters staff employee position does not remain filled in Tennessee for a period of at least five (5) years, beginning from the date such employee position was initially filled in Tennessee, the taxpayer shall be subject to an assessment of the total amount of credit or refund taken relating to such employee position pursuant to this subsection (g), plus interest.
    7. (7) Nothing in this subsection (g) shall require that the taxpayer establish its commercial domicile in this state in order to receive the credit provided in this subsection (g).
    8. (8) The credit provided for by this subsection (g) may be computed by a general partnership that has established an international, national or regional headquarters in this state that meets the definition of a qualified headquarters facility under § 67-6-224 and has qualified for the job tax credit provided for in subsection (c). The amount of the credit shall be allowed under this section as if the general partnership were subject to franchise and excise tax under part 20 of this chapter and this part. With respect to the general partnership tax year during which a credit is so computed, a partner in the general partnership that is subject to this state's franchise and excise tax and that directly holds a first tier ownership interest in the general partnership may take a percentage of the credit that equals the total amount of the credit for the general partnership multiplied by the partner's percentage interest in the general partnership on the last day of the general partnership tax year against the partner's franchise and excise tax liability for the partner's tax year that includes the last day. The relocation expense credit passed through from the general partnership to the first tier partner under this section shall, in the hands of the first tier partner, be subject to applicable provisions and limitations otherwise provided by this section. In no case shall the credit be taken by a business entity unless it was a partner in the general partnership and subject to franchise and excise tax at the time the credit was earned by the general partnership.
    9. (9) If determined to be in the best interests of the state, the commissioner is further authorized to allow a relocation expense credit to any scrap metal processing facility relocating from a central business district or an area adjacent to the central business district and separated only by a waterway. Such credit shall be equal to the amount of relocation expenses incurred and paid by the facility but shall not exceed the amount of credit allowed under subdivision (g)(3)(E) for the relocation of staff employees of a headquarters facility.
    10. (10) Any insurance company, as defined in § 56-1-102, that otherwise meets all of the criteria contained in this subsection (g) and would be subject to the tax imposed by this part and part 20 of this chapter if not for the exemption provided in § 67-4-2008(a)(14), shall be granted the credit provided in this subsection (g) and shall be entitled to a refund as provided in subdivision (g)(4).
    11. (11) This subsection (g) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  8. (h)
    1. (1) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in this part, and by the Excise Tax Law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Five percent (5%) of a qualified loan or qualified long-term investment made to an eligible housing entity for any eligible activity; or
      2. (B) Three percent (3%) annually of the unpaid principal balance of a qualified loan made to an eligible housing entity for any eligible activity as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    2. (2) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in this part, and by the Excise Tax Law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Ten percent (10%) of a grant, contribution, or qualified low-rate loan made to an eligible housing entity for any eligible activity; or
      2. (B) Five percent (5%) annually of the unpaid principal balance of a qualified low-rate loan made to an eligible housing entity for any eligible activity as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    3. (3) For purposes of this subsection (h), the following definitions shall apply:
      1. (A) “Eligible activity” means an activity that creates or preserves affordable housing for low-income Tennesseans, an activity to help low-income Tennesseans obtain safe and affordable housing, an activity that builds the capacity of an eligible nonprofit to provide housing opportunities to low-income Tennesseans, including the construction or expansion of an office or other facility in which low-income housing related planning and educational opportunities will be provided, and any other activities approved by the executive director of the Tennessee housing development agency and the commissioner of revenue;
      2. (B) “Eligible housing entity” means:
        1. (i) A Tennessee nonprofit corporation with Internal Revenue Code § 501(c)(3) status (26 U.S.C. § 501(c)(3)), including an entity created and controlled by such corporation, or a wholly-owned subsidiary of such corporation, that engages in eligible activity on behalf of such corporation;
        2. (ii) The Tennessee housing development agency;
        3. (iii) A public housing authority, including an entity created and controlled by such authority, or a wholly-owned subsidiary of such authority, that engages in eligible activity on behalf of such authority; or
        4. (iv) A development district, including a development district that engages in eligible activity;
      3. (C) “Financial institution” has the definition as provided in § 67-4-2004;
      4. (D) “Low-income” means any individual or family at or below eighty percent (80%) of the applicable area median family income as determined by family size;
      5. (E) “Qualified loan” means a loan that is at least two percent (2%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved, that does not qualify as a qualified low-rate loan;
      6. (F) “Qualified long-term investment” means an equity investment made for a period of more than five (5) years to an eligible housing entity; and
      7. (G) “Qualified low-rate loan” means a loan that is at least four percent (4%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved.
    4. (4) In order to take the credit, the regulated financial institution must maintain a certification from the Tennessee housing development agency establishing entitlement to the credit.
    5. (5) The eligible housing entity receiving the funds must maintain such records as required by the Tennessee housing development agency, to ensure that affordable housing opportunities are being provided.
    6. (6) The department of revenue is authorized to share with the Tennessee housing development agency information necessary to effectuate the purposes of this subsection (h). The Tennessee housing development agency shall be bound by restrictions on disclosure of such information otherwise applicable to the department of revenue.
    7. (7) The commissioner of revenue and the executive director of the Tennessee housing development agency are authorized to promulgate rules and regulations to effectuate the purposes of this subsection (h). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
    8. (8) Any unused credit allowed under subdivision (h)(1)(A) or (h)(2)(A) may be carried forward for fifteen (15) years after the tax year in which the credit originated; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years. Any unused credit allowed under subdivision (h)(1)(B) or (h)(2)(B) shall not be carried forward beyond the tax year in which the credit originated.
  9. (i) [Expired July 1, 2015; see (i)(2)]
    1. (1) A taxpayer that has established its international, national, or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224 shall be allowed a credit against the franchise tax imposed under this part equal to the rate of tax imposed under § 67-4-2007 multiplied by any net operating loss incurred by the taxpayer during the tax year covered by the return, or properly carried over from a previous tax year, in accordance with § 67-4-2006; provided, that the credit allowed in this subsection (i) shall only be available if the taxpayer is unable to use the loss or loss carryover to offset net income during the current tax year for excise tax purposes. If a net operating loss or loss carryover is used to calculate a credit under this subsection (i), it shall no longer be available as a deduction for excise tax purposes, and under no circumstances shall the same net operating loss be used for both franchise and excise tax purposes. The credit in this subsection (i) shall only be available upon a determination by the commissioner of revenue and the commissioner of economic and community development that the utilization of net operating losses or loss carryovers against the taxpayer's franchise tax liability is in the best interests of the state. For purposes of this subsection (i), “best interests of the state” means a determination that the taxpayer established its headquarters in this state or converted a regional headquarters in this state into its national or international headquarters as a result of such action. The commissioner of revenue and the commissioner of economic and community development shall determine the period during which the credit provided by this subsection (i) shall be allowed to the taxpayer.
    2. (2) This subsection (i) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  10. (j)
    1. (1) For purposes of this subsection (j):
      1. (A) “Applicant” means a person applying for a credit under this subsection (j);
      2. (B) “Best interests of the state” means a determination by the commissioners of revenue and economic and community development that the qualified production is a result of the credit provided in this subsection (j) and the benefits to the state resulting from the production outweigh the anticipated costs. In making this determination, the commissioners may consider the investment made, jobs created, impact to the community, and any other matters deemed appropriate by the commissioners;
      3. (C) “Commission” means the Tennessee film, entertainment and music commission, created by § 4-3-5003;
      4. (D) “Esports” means leagues, competitive circuits, tournaments, or similar competitions where individuals or teams play video games, typically for spectators, either in-person or online, for the purpose of ranking, prizes, money, or entertainment;
      5. (E) “Qualified payroll expenses” means compensation paid in this state, as determined pursuant to § 67-4-2111(f), for qualified positions during the applicable tax period, subject to programmatic caps established by the commission;
      6. (F) “Qualified position” means services performed by an employee or an independent contractor determined by the commission to be necessary to and primarily for a qualified production; and
      7. (G) “Qualified production”:
        1. (i) Means any of the following activities, as determined by the commission:
          1. (a) The production of a film, pilot episode, series, esports event, or other episodic content in this state;
          2. (b) The creation of computer-generated imagery, video games, or interactive digital media in this state; or
          3. (c) Stand-alone audio or visual post-production scoring and editing in this state; and
        2. (ii) Includes activities by a third party that are necessary to and performed on behalf of a person engaging in the activities covered by subdivision (j)(1)(G)(i).
    2. (2)
      1. (A) If the commissioner of revenue and the commissioner of economic and community development determine under the process set forth in subdivision (j)(3), in their sole discretion and in writing, that it is in the best interests of the state, a credit for qualified payroll expenses in the amounts specified in subdivision (j)(2)(B) is allowed against an applicant's combined franchise and excise tax liability. The total credit taken on any franchise and excise tax return, including any credit carried forward from prior tax periods, shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any unused credit allowed under this subsection (j) may be carried forward in any tax period until the credit is taken; provided, however, that the credit shall not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years.
      2. (B) The amount of the credit for qualified payroll expenses allowed under subdivision (j)(2)(A) is forty percent (40%) of qualified payroll expenses, except in the case of qualified payroll expenses paid to individuals whose primary residence is in a tier 2, tier 3, or tier 4 enhancement county, for which the credit is fifty percent (50%) of qualified payroll expenses.
    3. (3) Eligibility for the credit set forth in this subsection is determined as follows:
      1. (A) An applicant must apply to the commission, on a form prescribed by the commission, describing the basis for seeking a credit under this subsection, including the nature of the production activities involved and number of employment positions that the applicant estimates to be deemed qualified positions;
      2. (B) If the commission determines that the applicant is engaging in a qualified production, then the commission shall notify the applicant and the department of revenue of that determination, and the applicant may apply to the department of revenue for the credit under this subsection on a form prescribed by the department of revenue;
      3. (C) The department of revenue shall not approve an application for the credit under this subsection unless the commissioner of revenue and the commissioner of economic and community development each determine, in their sole discretion and in writing, that approving the application is in the best interests of the state.
    4. (4) If the application is approved by the department of revenue in accordance with subdivision (3)(B), then the applicant shall claim the credit under this subsection in a manner prescribed by the department of revenue.
    5. (5)
      1. (A) Subject to the approval of the department of revenue, an applicant may file a combined return with one (1) or more affiliates or affiliated group members for purposes of fully utilizing this credit. The request to file a combined return must be included in the applicant's application for the credit under subdivision (3)(B) and is subject to the approval of the department of revenue.
      2. (B) Once an application to file a combined return is granted, an applicant may apply to add or change affiliates or affiliated group members included in the combined return prior to filing the first combined return on which the credit is claimed. If the addition or change is approved pursuant to subdivision (5)(C), then the members included on the combined return must remain unchanged for a minimum of three (3) years, beginning with the first tax year in which the credit is claimed on a combined return. Each member included on the combined return must close its taxable year on the same date, except that an affiliate included in the group may exit the group during the taxable year due to a change in ownership, merger, or liquidation of the member, in which case the member exiting the group must be excluded from the group and must compute its net earnings as otherwise provided in part 20 of this chapter and its net worth as otherwise provided in this part.
      3. (C) A request to file a combined return, or to add or change affiliates or affiliated group members included in a combined return, shall not be approved unless the commissioner of revenue and the commissioner of economic and community development each determine, in their sole discretion and in writing, that approving the request is in the best interests of the state.
    6. (6) This subsection (j) is subject to the reporting requirements of subsection (r) and § 67-1-118.
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  11. (k)
    1. (1) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax law, compiled in this part, and by the Excise Tax law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Five percent (5%) of a qualified loan or qualified long-term investment made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund; or
      2. (B) Three percent (3%) annually of the unpaid principal balance of a qualified loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    2. (2) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax law, compiled in this part, and by the Excise Tax law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Ten percent (10%) of a grant, contribution, or qualified low-rate loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund; or
      2. (B) Five percent (5%) annually of the unpaid principal balance of a qualified low-rate loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    3. (3) For purposes of this subsection (k):
      1. (A) “Financial institution” has the same meaning as defined in § 67-4-2004;
      2. (B) “Qualified loan” means a loan that is at least two percent (2%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved, that does not qualify as a qualified low-rate loan;
      3. (C) “Qualified long-term investment” means an equity investment made for a period of more than five (5) years; and
      4. (D) “Qualified low-rate loan” means a loan that is at least four percent (4%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved.
    4. (4) Any unused credit allowed under subdivision (k)(1)(A) or (k)(2)(A) may be carried forward for fifteen (15) years after the tax year in which the credit originated; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years. Any unused credit allowed under subdivision (k)(1)(B) or (k)(2)(B) shall not be carried forward beyond the tax year in which the credit originated.
    5. (5) Notwithstanding § 47-14-103 or any other provision to the contrary, a community development financial institution, as described in this subsection (k), shall be allowed to charge a rate of interest not to exceed twenty-four percent (24%) per annum.
  12. (l)
    1. (1) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in this part, and the Excise Tax Law, compiled in part 20 of this chapter, in an amount equal to ten percent (10%) of the financial institution's contribution to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund. The credit provided in this subsection (l) shall be allowed each year for a period of ten (10) years, beginning with the tax year in which the contribution is made. Any unused credit allowed under this subsection (l) shall not be carried forward beyond the tax year in which the credit originated.
    2. (2) For purposes of this subsection (l), the loaning of funds by the taxpayer to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund shall constitute a contribution by the taxpayer to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund. If, however, at the close of the tenth year of the period during which the credit is allowed, the taxpayer or its assignee has received repayment, or retains any right to repayment, of all or any portion of the amount contributed to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund or any interest accrued thereon, the department shall be entitled to recapture the credit allowed by increasing the franchise tax liability or the excise tax liability, or both, of the taxpayer by the credit recapture amount for the first tax year following the ten-year period during which the credit is allowed. The credit recapture amount shall be equal to the total amount of credit allowed, plus interest at the rate determined under § 67-1-801 from the date the credit was offset against the taxpayer's franchise tax liability or the excise tax liability, or both.
  13. (m) [Expired July 1, 2015; see (m)(6)]
    1. (1) As used in this subsection (m):
      1. (A) “Carbon charge” means a tax or fee imposed or levied by the federal or state government, the purpose of which is to reduce the emission of greenhouse gases. “Carbon charge” may include, but is not limited to, a tax, emission fee or charge, or required purchase of carbon or emission off-sets or credits, whether incurred by or imposed directly on the certified green energy supply chain manufacturer or campus affiliate or imposed on the Tennessee Valley authority or other applicable energy provider and billed to the certified green energy supply chain manufacturer or campus affiliate;
      2. (B) “Certified green energy supply chain manufacturer” means any manufacturer that has made, during the investment period, a required capital investment in excess of two hundred fifty million dollars ($250,000,000) in constructing, expanding or remodeling a facility that is certified by the commissioner of revenue, the commissioner of economic and community development and the commissioner of environment and conservation, in their sole discretion, to be a facility engaged in manufacturing a product that is necessary for the production of green energy;
      3. (C) “Charge for electricity sold” means the total delivered cost of electricity sold to the certified green energy supply chain manufacturer or campus affiliate at the point of delivery to the facility. The charge for electricity sold shall be the total amount due as shown on the customer's electricity bills over the applicable tax year. Any carbon charge shall be excluded from the charge for electricity sold to the extent the carbon charge is included in the credit allowed in subdivision (m)(4);
      4. (D) “Investment period” means a period not to exceed three (3) years from the filing of the business plan related to qualification as a certified green energy supply chain manufacturer, during which the required capital investment must be made; and
      5. (E) “Maximum certified rate” means a rate expressed as a price per kilowatt hour for calculating the green energy tax credit allowed in subdivision (m)(3) and shall be established through the issuance of a private letter ruling by the commissioner of revenue, which shall be subject to approval by the commissioner of economic and community development and the commissioner of finance and administration and any such maximum certified rate established for a green energy supply chain manufacturer shall apply to any campus affiliate.
    2. (2) The credits provided in this subsection (m) and any other applicable credits, net operating losses or carry-forwards thereof provided and in part 20 of this chapter and this part shall be applied in the following order:
      1. (A) Any credits, net operating losses or carry-forwards thereof available to the certified green energy supply chain manufacturer, campus affiliate, integrated customer or integrated supplier pursuant to this part or part 20 of this chapter, except for those contained in this subsection (m), shall be applied to the taxpayer's tax liability first;
      2. (B) Any green energy tax credit available pursuant to subdivision (m)(3) shall be applied to the taxpayer's liability second and shall be refundable as provided in subdivision (m)(3) if the credit exceeds the taxpayer's remaining liability; and
      3. (C) Any carbon tax credit available pursuant to subdivision (m)(4) shall be applied to the taxpayer's liability third and shall be refundable as provided in subdivision (m)(4) if the credit exceeds the taxpayer's remaining liability.
    3. (3) A certified green energy supply chain manufacturer and campus affiliate, integrated customer or integrated supplier of a green energy supply chain manufacturer shall be allowed a green energy tax credit against the sum total of the taxes imposed by the Franchise Tax Law compiled in this part and the Excise Tax Law compiled in part 20 of this chapter, equal to the amount by which the charge for electricity sold to the certified green energy supply chain manufacturer, campus affiliate, integrated customer or integrated supplier exceeds the charge that would have been made for such total delivered electricity if the maximum certified rate had been applied during the applicable tax year. The Tennessee Valley authority, or the applicable energy provider, shall supply such information as deemed necessary by the commissioner of revenue to verify the amount of the credit. Consistent with subdivision (m)(2), to the extent that any amount allowed as a credit under this subdivision (m)(3), for any tax year, exceeds the combined tax imposed by part 20 of this chapter and this part after the application of all available credits other than the credit provided in subdivision (m)(4), the amount of the excess shall be considered an overpayment and shall be refunded to the taxpayer; provided, however, that the overpayment and the refund shall not exceed, for any one (1) tax year, an amount equal to one million five hundred thousand dollars ($1,500,000) for each two hundred fifty million dollars ($250,000,000) in capital investments made by the certified green energy supply chain manufacturer. The refund shall be subject to the procedures of § 67-1-1802; provided, however, that, notwithstanding any procedure of § 67-1-1802 to the contrary, a claim for refund must be filed with the commissioner within three (3) years from December 31 of the year in which the credit provided by this subdivision (m)(3) was incurred. To the extent any amount allowed as a credit under this subdivision (m)(3) is not applied to the taxpayer's liability and is not received by the taxpayer as a refund, the credit may be carried forward in perpetuity until it is claimed as a refund or utilized as a credit by the certified green energy supply chain manufacturer pursuant to this subdivision (m)(3). Except for the purpose of receiving a refund or otherwise utilizing credits that have been carried forward, the credit provided for in this subdivision (m)(3) shall cease to be effective on January 1, 2029, and no new credit shall be allowed for tax years ending on or after January 1, 2029.
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    4. (4) A certified green energy supply chain manufacturer and any campus affiliates shall be allowed a carbon charge credit against the sum total of the taxes imposed by the Franchise Tax Law compiled in this part and the Excise Tax Law compiled in part 20 of this chapter, equal to any carbon charges incurred by or imposed directly on the certified green energy supply chain manufacturer, campus affiliate or imposed on the Tennessee Valley authority or other applicable energy provider and billed to the certified green energy supply chain manufacturer or campus affiliate during the applicable tax year. The Tennessee Valley authority, or the applicable energy provider, shall supply such information as deemed necessary by the commissioner of revenue to verify the amount of the carbon charge credit. Consistent with subdivision (m)(2), to the extent any amount allowed as a carbon charge credit under this subdivision (m)(4) exceeds the combined tax imposed by this part and by part 20 of this chapter after the application of all other available credits, the amount of the excess shall be considered an overpayment and shall be refunded to the taxpayer. The refund shall be subject to the procedures of § 67-1-1802; provided, however, that, notwithstanding any procedure of § 67-1-1802 to the contrary, a claim for refund must be filed with the commissioner within three (3) years from December 31 of the year in which the credit provided by this subdivision (m)(4) was incurred.
    5. (5) The investment period for making the required capital investment may be extended by the commissioner of economic and community development for a reasonable period, not to exceed two (2) years, for good cause shown. For purposes of this subdivision (m)(5), “good cause” means a determination by the commissioner of economic and community development that the capital investment is a result of the credit provided in this subsection (m).
    6. (6) This subsection (m) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  14. (n) [Expired July 1, 2015; see (n)(2)]
    1. (1) There shall be allowed a credit against a key tenant's franchise and excise tax liability equal to any qualified medical trade center relocation expenses incurred by the key tenant; provided, however, that such credit shall not exceed an amount equal to ten dollars ($10.00) for each square foot of space within the facility that is leased and occupied by the key tenant. To the extent that any amount allowed as a credit under this subsection (n), for any tax year, exceeds the combined franchise and excise tax after the application of all available credits, the amount of such excess shall be considered an overpayment and shall be refunded to the key tenant. The refund shall be subject to the procedures of § 67-1-1802; provided, however, notwithstanding any procedure of § 67-1-1802 to the contrary, that a claim for refund shall be filed with the commissioner within three (3) years from December 31 of the year in which the qualified medical trade center relocation expenses were incurred.
    2. (2) This subsection (n) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  15. (o) [Expired July 1, 2015; see (o)(6)]
    1. (1) For purposes of this subsection (o), “qualified advertising expenses” means advertising expenses that are incurred for the purpose of co-promoting a qualified medical trade center and the State of Tennessee or the City of Nashville; provided, however, that the expenses shall not qualify under this subdivision (o)(1) unless both the commissioner of revenue and the commissioner of economic and community development determine, in their sole discretion, that the advertising and the allowance of the credit are in the best interests of this state. For purposes of this subdivision (o)(1), “best interests of the state” means a determination by the commissioner of revenue and the commissioner of economic and community development that the advertising is a result of the credit provided in this subsection (o).
    2. (2) A credit in an amount equal to fifteen percent (15%) of any qualified advertising expenses shall be allowed against the combined franchise and excise tax liability of any taxpayer that incurs and pays such qualified expenses.
    3. (3) In order for a taxpayer to become entitled to a credit under this subsection (o), the taxpayer shall submit documentation verifying that the qualified advertising expenses have been incurred and paid.
    4. (4) The commissioner shall review the documentation and notify the taxpayer of the approved credit.
    5. (5) Once the taxpayer has been notified of the approved credit, the taxpayer may submit a claim for the credit. To the extent that any amount allowed as a credit under this subsection (o), for any tax year, exceeds the combined franchise and excise tax after the application of all available credits, the amount of such excess shall be considered an overpayment and shall be refunded to the taxpayer. The refund shall be subject to the procedures of § 67-1-1802; provided, however, notwithstanding any procedure of § 67-1-1802 to the contrary, that a claim for refund shall be filed with the commissioner within three (3) years from December 31 of the year in which the qualified advertising expenses were incurred.
    6. (6) This subsection (o) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  16. (p) [Expired July 1, 2015; see (p)(2)]
    1. (1) The commissioner of revenue, the commissioner of economic and community development, and the commissioner of finance and administration are authorized, with the approval of the comptroller of the treasury, to jointly establish a program pursuant to which buildings, facilities, or other infrastructure may be developed utilizing a state funding mechanism and pursuant to which the value of tax credits that have been earned by the taxpayer but remain unutilized may be applied, in lieu of payments, toward the purchase or lease of such property pursuant to a contractual agreement between the taxpayer and the program. Such tax credits may include those to which the taxpayer is entitled under this section or under any other provision of this part, part 20 of this chapter, or chapter 6 of this title.
    2. (2) This subsection (p) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  17. (q)
    1. (1) As used in this subsection (q):
      1. (A) “Business plan” means a job creation plan submitted by a qualified business to the commissioner;
      2. (B) “Community resurgence job tax credit” means the credit provided to a qualified business located in a high-poverty area as provided in this subsection (q);
      3. (C) “Full-time job” means a permanent employment position providing employment for at least twelve (12) consecutive months, to a person for at least thirty-seven and one-half (37.5) hours per week;
      4. (D) “High-poverty area” means a census tract with a poverty level, all population, in excess of thirty percent (30%), according to the American community survey three-year estimates in 2013, and determined decennially thereafter, as compiled by the department of economic and community development in consultation with the comptroller of the treasury;
      5. (E) “Qualified business” means a new or existing business located in a high-poverty area according to the most recent decennial determination at the time a business plan is filed with the commissioner; and
      6. (F) “Qualifying job” means:
        1. (i) A full-time job with wages equal to, or greater than, the state's average occupational wage, as defined in § 67-4-2004, for the month of January of the year during which the job was created;
        2. (ii) The job is newly created in this state and, for at least ninety (90) days prior to being filled by the taxpayer, did not exist in this state as a job of the taxpayer or of another business entity; and
        3. (iii) The job is created within a three-year period from the effective date of the business plan.
    2. (2) In addition to any other credits allowed in this section, there shall be allowed to any qualified business a community resurgence job tax credit equal to two thousand five hundred dollars ($2,500) for each qualifying job created.
    3. (3) The qualified business shall file a business plan with the commissioner in order to qualify for the credit provided by this subsection (q). The business plan shall be filed in a manner prescribed by the commissioner and shall describe the type of business, the number of jobs to be created, the expected dates the jobs will be filled, and the effective date of the plan.
    4. (4) In order to qualify for the credit, the qualified business shall create at least ten (10) qualifying jobs. The credit provided in subdivision (q)(2) shall first apply in the tax year in which the qualified business first satisfies the job creation requirements and in subsequent tax years in which further net increases occur above the level of employment established when the credit was last taken.
    5. (5) The credit shall apply against the franchise tax imposed by this part and the excise tax imposed by the Excise Tax Law of 1999, compiled in part 20 of this chapter; provided, however, that the credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any unused credit may be carried forward in any tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years.
    6. (6) The commissioner has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the amount of credit allowed by this subsection (q), and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the community resurgence job tax credit. If it is determined that the taxpayer failed to comply, the taxpayer shall be subject to an assessment equal to the amount of any credit taken under this subsection (q) for which the taxpayer failed to qualify, plus interest.
    7. (7) The aggregate amount of the credits allowed to all taxpayers under this subsection (q) shall not exceed twelve million five hundred thousand dollars ($12,500,000) in any one (1) tax year.
  18. (r)
    1. (1) The commissioner shall, no later than January 1, 2018, and by January 1 of each subsequent year, report to the members of the finance, ways and means committees of the house of representatives and the senate with respect to the tax credits claimed under this section and § 67-4-2009 for tax periods ending during the previous fiscal year.
    2. (2) The report shall contain the following information:
      1. (A) The number of taxpayers claiming the credit;
      2. (B) The total amount of credit claimed;
      3. (C) The number of jobs created during the fiscal year as reported by the taxpayer, if the credit is awarded based on jobs created;
      4. (D) The total amount of credit carried forward from a prior tax year; and
      5. (E) The nature of business of the taxpayers claiming the credit, if the nature of the business is available.
    3. (3) Nothing in this subsection (r) authorizes the disclosure of returns, tax information, or tax administration information, as such terms are defined in § 67-1-1701.
  19. (s) A credit must be allowed against the tax imposed by this part in accordance with § 13-23-134.
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History (37)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 973, § 1
  • 2000, ch. 982, §§ 34, 54-56
  • 2000, ch. 983, §§ 10, 11
  • 2003, ch. 202, § 1
  • 2004, ch. 592, §§ 1-4, 13, 14
  • 2004, ch. 924, § 14
  • 2005, ch. 490, § 1
  • 2005, ch. 499, §§ 59, 62, 63, 85, 88, 90
  • 2006, ch. 779, §§ 1, 2
  • 2006, ch. 1019, §§ 2-5, 8, 24, 25, 26, 29
  • 2007, ch. 602, §§ 2, 8-12, 180-182
  • 2008, ch. 1106, §§ 42, 44, 46-50, 52, 58, 62
  • 2009, ch. 477, § 1
  • 2009, ch. 530, §§ 1, 16, 17, 27, 132
  • 2010, ch. 1100, § 102
  • 2010, ch. 1134, §§ 23, 25-32, 34, 37, 52, 53, 55, 56
  • 2011, ch. 72, § 16
  • 2011, ch. 383, §§ 4, 5
  • 2011, ch. 508, §§ 13-21, 25-27
  • 2012, ch. 575, § 1
  • 2012, ch. 576, §§ 1, 2
  • 2012, ch. 1026, § 10
  • 2013, ch. 378, § 2
  • 2015, ch. 504, §§ 6-16
  • 2015, ch. 521, § 2
  • 2016, ch. 759, §§ 1, 2
  • 2016, ch. 1019, §§ 4-8
  • 2017, ch. 251, § 1
  • 2017, ch. 417, § 1
  • 2019, ch. 401, §§ 1, 2
  • 2019, ch. 451, § 2
  • 2021, ch. 70, § 2
  • 2021, ch. 194, § 9
  • 2023, ch. 377, §§ 41-45
  • 2024, ch. 688, § 151
  • 2024, ch. 971, § 4.
§ 67-4-2109. Credit for gross premiums tax and job tax. [Effective until July 1, 2025. See the version effective on July 1, 2025.]
  1. (a) As used in subsection (b):
    1. (1) “Best interests of the state” means a determination by the commissioner of revenue and the commissioner of economic and community development that the capital investment or jobs are a result of the credit provided in this section. In addition to its use in subsection (b), the definition in this subdivision (a)(1) shall apply to this section in its entirety unless otherwise specifically provided;
    2. (2)
      1. (A) “Enhancement county” means a county that meets one (1) of the following criteria for any month during the twenty-four (24) months immediately prior to the creation of any qualified job for which a job tax credit is sought pursuant to subsection (b), based on monthly statistics from the department of labor and workforce development:
        1. (i) The average number of dislocated workers in the county exceeds the average number of dislocated workers in this state; or
        2. (ii) The per capita income of the county is less than Tennessee's average per capita income;
      2. (B) Notwithstanding subdivision (a)(2)(A), based on an annual evaluation as of July 1 of each year, the commissioner of economic and community development may determine that a county qualifies as an enhancement county if the county experiences substantial characteristics of economic distress, including, but not limited to, major loss of employment, recent high unemployment rates, traditionally low levels of family incomes, high levels of poverty and high concentrations of employment in declining industries;
      3. (C) Upon determining that a county qualifies as an enhancement county under subdivision (a)(2)(A) or (a)(2)(B), the department of economic and community development shall designate the county as a tier 1, tier 2, tier 3, or tier 4 enhancement county based on unemployment, per capita income, and poverty levels of all Tennessee counties using statistical data prepared by any agency of the state or federal government no later than July 1 of each year. A list of all tier 1, tier 2, tier 3, and tier 4 enhancement counties shall be published annually by the department of economic and community development;
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    3. (3) “Industrial wage job” means a qualified job with wages equal to or greater than the state's average occupational wage, as defined in § 67-4-2004, for the month of January of the year during which the job was created;
    4. (4) “Investment period” means the period during which qualified jobs are created as a result of the required capital investment; provided, however, that the period shall not exceed three (3) years from the effective date of the business plan;
    5. (5) “Qualified business enterprise” means an enterprise:
      1. (A) In which the business has made the required capital investment necessary to permit the creation or expansion of manufacturing, warehousing and distribution, processing tangible personal property, research and development, computer services, call centers, headquarters facilities, as defined in § 67-6-224(b), back office operations, convention or trade show facilities, or tourism-related businesses, including, but not limited to, restaurants, lodging establishments, or other tourism-related attractions;
      2. (B) In which the business has made the required capital investment necessary to permit the creation or expansion of a repair service facility primarily engaged in providing repairs for aircraft owned by unrelated commercial, governmental or foreign persons; or
      3. (C) That promotes high-skill, high-wage jobs in high-technology areas, emerging occupations or skilled manufacturing jobs in which the business has made the required capital investment necessary to permit an increase in the number of qualified jobs in that county and that receives an approval from the commissioner of revenue and the commissioner of economic and community development in a manner prescribed by the department of revenue;
    6. (6) “Qualified job” means a job that meets all of the following criteria:
      1. (A)
        1. (i) Except as provided in subdivision (a)(6)(A)(ii), the job position is a permanent, rather than seasonal or part-time, employment position providing employment in a qualified business enterprise for at least twelve (12) consecutive months to a person for at least thirty-seven and one-half (37½) hours per week with minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act, compiled in title 56, chapter 7, part 22; or
        2. (ii) A majority of the duties that the job position entails involve adventure tourism, as defined in § 11-11-203; the qualified business enterprise that created the job position is located in an area designated as an adventure tourism district pursuant to § 11-11-204(c); and the job position is:
          1. (a) A permanent employment position created on or after July 1, 2017, providing employment in a qualified business enterprise for at least twelve (12) consecutive months to a person for at least thirty-seven and one-half (37½) hours per week with or without minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act;
          2. (b) A position providing seasonal employment, as defined in § 50-7-306 for at least twenty-six (26) consecutive weeks, created on or after July 1, 2017, with or without minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act; provided, that, for the purpose of calculating the number of jobs that a qualified business has created under subdivision (b)(1)(C) in order to qualify for the job tax credit, a position of seasonal employment shall be counted as one-half (½) of one (1) job; or
          3. (c) A position providing part-time employment for at least twenty (20) hours per week for twelve (12) consecutive months, created on or after July 1, 2017, with or without minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act; provided, that, for the purpose of calculating the number of jobs that a qualified business has created under subdivision (b)(1)(C) in order to qualify for the job tax credit, a position of part-time employment shall be counted as one-half (½) of one (1) job;
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      2. (B) The job position is newly created in this state, and:
        1. (i) For a permanent position under subdivision (a)(6)(A)(i), for at least ninety (90) days prior to being filled by the taxpayer, the job position did not exist in this state as a job position of the taxpayer or of another business entity; or
        2. (ii) For a permanent, part-time, or seasonal position under subdivision (a)(6)(A)(ii), for at least thirty-six (36) months prior to being filled by the taxpayer, the job position did not exist in this state as a job position of the taxpayer or of another business entity;
      3. (C) The job position is filled; provided, however, that a position will be deemed filled if it subsequently becomes vacant but is refilled within a period of not more than ninety (90) days; and
      4. (D) In the case of back office operations job positions under subdivision (a)(5)(A), the job position must meet the definition of industrial wage job under subdivision (a)(3); and
    7. (7) “Required capital investment”, except for convention or trade show enterprises, means an investment of five hundred thousand dollars ($500,000) in real property, tangible personal property or computer software owned or leased in this state valued in accordance with generally accepted accounting principles. For businesses engaged in convention or trade show enterprises, “required capital investment” means an investment of ten million dollars ($10,000,000) in such property in the same manner described for other enterprises. A capital investment shall be deemed to have been made as of the date of payment or the date the business enterprise enters into a legally binding commitment or contract for purchase or construction.
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  2. (b)
    1. (1) Job Tax Credit; General Provisions.
      1. (A) Subject to the requirements set forth in this subsection (b), there shall be allowed to any qualified business enterprise that makes the required capital investment a credit equal to four thousand five hundred dollars ($4,500) for each qualified job created during the investment period.
      2. (B) The qualified business enterprise shall file a business plan with the commissioner in order to qualify for the credit provided by this subsection (b). The business plan shall be filed in a manner prescribed by the commissioner and shall describe the investment to be made, the number of jobs the investment will create, the expected dates the jobs will be filled and the effective date of the plan.
      3. (C) In order to qualify for the credit, the qualified business enterprise must, within the investment period, make the required capital investment and create at least twenty-five (25) qualified jobs; provided, that if the qualified business enterprise is located in a tier 3 enhancement county, the qualified business enterprise must, within the investment period, make the required capital investment and create at least twenty (20) qualified jobs; provided further, that if the qualified business enterprise is located in a tier 4 enhancement county, the qualified business enterprise must, within the investment period, make the required capital investment and create at least ten (10) qualified jobs. The credit provided in subdivision (b)(1)(A) shall first apply in the tax year in which the qualified business enterprise first satisfies the capital investment and job creation requirements and in subsequent tax years within the investment period in which further net increases occur above the level of employment established when the credit was last taken.
      4. (D) The credit shall apply against the franchise tax imposed by this part and the excise tax imposed by part 20 of this chapter; provided, however, that the credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any unused credit may be carried forward in any tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years.
      5. (E) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the findings contained within the business plan and to determine that the business enterprise has complied with all statutory requirements so as to be entitled to the credit.
      6. (F) Nothing in this subsection (b) shall require that the taxpayer establish its commercial domicile in this state in order to receive the credit provided in this subsection (b).
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    2. (2) Job Tax Credit; Additional Annual Credit. In addition to the credit allowed in subdivision (b)(1), the following tax credit shall be allowed in the circumstances described; provided, that the taxpayer otherwise meets all of the requirements of subdivision (b)(1):
      1. (A) If the qualified business enterprise is located in a tier 2, tier 3, or tier 4 enhancement county, an annual credit shall be allowed as follows:
        1. (i) If the qualified business enterprise is located in a tier 2 enhancement county, the additional annual credit shall be allowed for a period of three (3) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        2. (ii) If the qualified business enterprise is located in a tier 3 enhancement county, the additional annual credit shall be allowed for a period of five (5) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        3. (iii) If the qualified business enterprise is located in a tier 4 enhancement county, the additional annual credit shall be allowed for a period of five (5) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D); and
        4. (iv) The additional annual credit shall equal four thousand five hundred dollars ($4,500) for each qualified job; provided, that the job remains filled by employees during the year in which the credit is taken. This annual credit may be used to offset up to one hundred percent (100%) of the taxpayer's franchise and excise tax liability for that year. Any unused annual credit, however, shall not be carried forward beyond the year in which the credit originated;
      2. (B) If the qualified business enterprise involves a higher level of investment and job creation, as specifically described in subdivisions (b)(2)(B)(i)-(v), an annual credit shall be allowed as follows:
        1. (i) If the investment exceeds one billion dollars ($1,000,000,000) and at least five hundred (500) industrial wage jobs are created, the additional annual credit shall be allowed for a period of twenty (20) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
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        2. (ii) If the investment exceeds five hundred million dollars ($500,000,000) and at least five hundred (500) industrial wage jobs are created, the additional annual credit shall be allowed for a period of twelve (12) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
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        3. (iii) If the investment exceeds two hundred fifty million dollars ($250,000,000) and at least two hundred fifty (250) industrial wage jobs are created, the additional annual credit shall be allowed for a period of six (6) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
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        4. (iv) If the investment exceeds one hundred million dollars ($100,000,000) and at least one hundred (100) industrial wage jobs are created, the additional annual credit shall be allowed for a period of three (3) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        5. (v) If the investment exceeds ten million dollars ($10,000,000) and at least one hundred (100) qualified jobs are created that also meet the definition of headquarters staff employees under § 67-6-224 and pay at least one hundred fifty percent (150%) of the state's average occupational wage for the month of January of the year in which the jobs are created, the additional annual credit shall be allowed for a period of three (3) years beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        6. (vi) The additional annual credit shall equal five thousand dollars ($5,000) for each job specifically described in subdivisions (b)(2)(B)(i)-(v); provided, that the jobs remain filled during the year in which the credit is being taken. This annual credit may be used to offset up to one hundred percent (100%) of the taxpayer's franchise and excise tax liability for that year. Any unused annual credit, however, shall not be carried forward beyond the year in which the credit originated;
        7. (vii) The taxpayer shall be allowed a period not to exceed three (3) years from the effective date of the business plan in order to make the required capital investment necessary to qualify for the additional annual credit allowed under this subdivision (b)(2)(B). If determined to be in the best interests of the state, the three-year period for making the required investment may be extended by the commissioner of economic and community development for a reasonable period not to exceed two (2) additional years, or four (4) additional years if the investment exceeds one billion dollars ($1,000,000,000);
      3. (C) If the qualified business enterprise is located in an area designated as an adventure tourism district pursuant to § 11-11-204(c), an annual credit shall be allowed as follows:
        1. (i) If the qualified business enterprise is located in a tier 1 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least twenty-five (25) qualified jobs;
        2. (ii) If the qualified business enterprise is located in a tier 2 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least nineteen (19) qualified jobs;
        3. (iii) If the qualified business enterprise is located in a tier 3 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least thirteen (13) qualified jobs;
        4. (iv) If the qualified business enterprise is located in a tier 4 enhancement county, the additional annual credit shall be allowed if the qualified business enterprise creates at least ten (10) qualified jobs;
        5. (v) The additional annual credit shall be allowed for a period of three (3) years for a qualified business enterprise located in a tier 1 or tier 2 enhancement county, beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D);
        6. (vi) The additional annual credit shall be allowed for a period of five (5) years for a qualified business enterprise located in a tier 3 or tier 4 enhancement county, beginning with the first tax year in which the qualified business enterprise applies the credit in accordance with subdivision (b)(2)(D); and
        7. (vii) The additional annual credit shall equal four thousand five hundred dollars ($4,500) for each qualified job; provided, that the job remains filled by employees during the year in which the credit is being taken. This annual credit may be used to offset up to one hundred percent (100%) of the taxpayer's franchise and excise tax liability for that year. Any unused annual credit, however, shall not be carried forward beyond the year in which the credit originated;
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      4. (D) The qualified business enterprise may first apply the credit provided in this subdivision (b)(2) in any tax year after the qualified business enterprise has met all of the requirements of subdivisions (b)(1) and (b)(2); provided, however, that the qualified business enterprise must begin to apply the credit no later than the first tax year following the end of the investment period;
      5. (E) Notwithstanding any provision to the contrary, the circumstances described in subdivisions (b)(2)(A)(i)-(ii) and (b)(2)(B)(i)-(v) shall be deemed to be mutually exclusive and a taxpayer shall not receive a credit under more than one (1) such subdivision for jobs created during a single investment period.
    3. (3) Job Tax Credit; Special provisions. This subdivision (b)(3) shall serve as exceptions to subdivisions (b)(1) and (2). To the extent a conflict exists between this subdivision (b)(3) and subdivision (b)(1) or (b)(2), this subdivision (b)(3) shall control. Otherwise, subdivisions (b)(1) and (2) shall apply to any credits provided under this subsection (b):
      1. (A) The job tax credit allowed in subdivision (b)(1) shall be increased from four thousand five hundred dollars ($4,500) to five thousand dollars ($5,000) if the qualified business enterprise qualifies for the additional annual credit allowed in subdivision (b)(2)(B);
      2. (B) If the qualified business enterprise is located in a tier 2 enhancement county, the taxpayer shall have three (3) years in order to create the minimum number of qualified jobs necessary to receive the credit. If the qualified business enterprise is located in a tier 3 or tier 4 enhancement county, the taxpayer shall have five (5) years to create the minimum number of qualified jobs necessary to receive the credit;
      3. (C)
        1. (i) If the required capital investment exceeds one billion dollars ($1,000,000,000), the time limitations otherwise applicable to the carry-forward of unused job tax credits under subdivision (b)(1)(D) and subdivision (b)(2)(B)(vi) shall not apply, and any unused credit may be carried forward until fully utilized, if the commissioner of revenue and the commissioner of economic and community development have determined that the allowance of the additional carry-forward is in the best interests of the state;
        2. (ii) Subdivision (b)(3)(C)(i) shall apply only to applications received and approved by the commissioner of revenue and the commissioner of economic and community development on or before January 1, 2011;
      4. (D) The commissioner of revenue, with the approval of the commissioner of economic and community development, is authorized to approve job tax credit in cases where the newly created position existed in this state as a job position of the taxpayer or of another business entity less than ninety (90) days prior to being filled by the taxpayer; provided, that all other requirements to obtain the credit have been satisfied by the taxpayer; and provided, further, that the commissioner of revenue and the commissioner of economic and community development have determined that allowance of the credit is in the best interests of the state;
      5. (E) A taxpayer that has established its international, national or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224, or a taxpayer that has established an international, national or regional warehousing or distribution hub in this state and has met the requirements to be a qualified new or expanded warehouse or distribution facility, shall be allowed to offset up to one hundred percent (100%) of its franchise or excise, or both, tax liability by job tax credits, or any carry-forward of the job tax credits, if the commissioner of revenue and the commissioner of economic and community development determine that increasing the percentage of offset permitted to the taxpayer is in the best interests of the state. The commissioner of revenue and the commissioner of economic and community development shall determine the percentage of franchise or excise, or both, tax liability allowed to be offset by this subdivision (b)(3)(E) that otherwise allowed by subdivision (b)(1) and the period during which the increased offset shall continue;
      6. (F) The credits otherwise provided in this subsection (b) shall be allowed for new high-skill, high-wage, qualified jobs in high-technology areas, emerging occupations or skilled manufacturing, regardless of whether net employment is increased; provided, however, that this subdivision (b)(3)(F) shall apply only to new jobs created by a taxpayer who failed to meet the net increase requirement due to worker layoffs or reductions, where such workers have been certified by the federal department of labor's division of trade adjustment assistance as having been adversely affected by foreign trade, so as to be eligible for assistance in accordance with the federal Trade Adjustment Assistance Reform Act of 2002 (U.S.C. title 19). A taxpayer seeking qualification for jobs tax credits under this subsection (b) shall be required to satisfy all other requirements of this subsection (b), and shall be required to provide evidence to the commissioner of revenue of the department of labor's certification of eligibility for assistance for the taxpayer's adversely affected worker group;
      7. (G)
        1. (i) The credits provided by this subsection (b) may be computed by a general partnership that establishes and operates a call center in Tennessee that is placed in service by the general partnership on or after June 30, 2003, and that would otherwise qualify for the job tax credit provided in this subsection (b); provided, that the credit shall first apply in the tax year in which the qualified business enterprise increases net full-time employment by four hundred (400) or more jobs, and shall then apply in those subsequent fiscal years in which further net increases occur above the level of employment established when the credit was last taken. The credit provided in this subsection (b) may also be computed by a general partnership that has established an international, national or regional headquarters in this state that meets the definition of a qualified headquarters facility under § 67-6-224 and would otherwise qualify for the job tax credits provided in this subsection (b). The amount of the credit shall be computed under this subsection (b) as if the general partnership were subject to franchise and excise tax under part 20 of this chapter and this part. With respect to the general partnership tax year during which a credit is so computed, a partner in the general partnership that is subject to Tennessee franchise and excise tax and that directly holds a first tier ownership interest in the general partnership may take a percentage of the credit that equals the total amount of the credit for the general partnership multiplied by the partner's percentage interest in the general partnership on the last day of the general partnership tax year against the partner's franchise and excise tax liability for the partner's tax year that includes the last day. The job tax credit passed through from the general partnership to the first tier partner under this subsection (b) shall, in the hands of the first tier partner, be subject to applicable provisions and limitations otherwise provided by this subsection (b), including carry-forward provisions; provided, that in no case shall the credit or a carryover thereof be taken by a business entity, unless it was a partner in the general partnership and subject to franchise and excise tax at the time the credit was earned by the general partnership;
        2. (ii) This subdivision (b)(3)(G) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit;
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      8. (H) [Expired July 1, 2015; see (b)(3)(H)(ii).]
        1. (i) Any airline company that has established its international, national or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224 may elect to convert any available and unused job tax credit created under subdivision (b)(1) and any available and unused additional annual credit created under subdivision (b)(2) into a refundable credit which shall be discounted to net present value using the interest rate in effect pursuant to § 67-1-801 on the date of such election; provided, however, that the election shall be available only if the commissioner of revenue and the commissioner of economic and community development determine that allowance of the election is in the best interests of the state;
        2. (ii) This subdivision (b)(3)(H) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
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  3. (c) In accordance with § 56-4-217, there shall be credited upon the tax imposed by this part the net amount of gross premiums tax paid that is measured by a period that corresponds to the franchise tax period on which the return is based, plus any amount used to offset payment to the Tennessee guaranty association that has not otherwise been recovered, but not including the gross premiums receipts tax paid by fire insurance companies for the purpose of executing the fire marshal law.
  4. (d) When an audit of a tax return for any year not barred by the statute of limitations discloses a change in the amount of tax due, there may be applied upon it as a credit any amount that the taxpayer is otherwise entitled to receive either as a credit under parts 4-6 of this chapter for franchise taxes paid, or as a refund thereof under § 67-1-707. This tax credit allowance may be applied, notwithstanding the statute of limitations or the requirement for approval of certain refunds by the commissioner and the attorney general and reporter, if such was made under § 67-1-707, and also any statutory or regulatory requirement under various sections of parts 4-6 of this chapter that the franchise tax be paid prior to the allowance of any credit.
  5. (e)
    1. (1) Each taxpayer is considered a separate entity; therefore, in the case of mergers, consolidations, and like transactions, no tax credit incurred by the predecessor taxpayer shall be allowed as a deduction on the tax return filed by the successor taxpayer. With the exception set forth in subdivision (e)(2), a credit carryforward may be taken only by the taxpayer that generated it.
    2. (2) Notwithstanding the provisions contained in subdivision (e)(1), when a taxpayer merges out of existence and into a successor taxpayer that has no income, expenses, assets, liabilities, equity or net worth, any qualified Tennessee credit carryover of the predecessor that merged out of existence shall be available for carryover on the return of the surviving successor; provided, that the time limitations for the carryover have not expired.
    3. (3) A unitary group of financial institutions may take any qualified credit that was generated by any group member that is in existence as a member of the group at the end of the group's tax year; provided, that such credit has not previously been taken by the member itself before it joined the group or by another unitary group of financial institutions at the time the financial institution generating the credit was a member of that group; and provided, further, that the credit carryover shall be subject to the limitations set forth in this subsection (e).
  6. (f)
    1. (1) As used in this subsection (f), unless the context otherwise requires:
      1. (A) “Full-time employee job” means a permanent, rather than seasonal or part-time, employment position, providing employment for at least twelve (12) consecutive months, to a person for at least thirty-seven and one-half (37.5) hours per week, if that person is enrolled in minimal health care benefits, as described in title 56, chapter 7, part 22; and
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      2. (B) “Part-time employee job” means a part-time employment position, providing employment for at least twelve (12) consecutive months, to a person for at least ten (10) hours per week.
    2. (2) A job tax credit of five thousand dollars ($5,000) for each net new full-time employee job, and two thousand dollars ($2,000) for each net new part-time employee job, for a person with disabilities who is receiving state services directly related to such disabilities, shall be allowed against a taxpayer's franchise and excise liability tax for that year; provided, that:
      1. (A) The employment of such individual creates a net increase in the number of persons with disabilities employed by the taxpayer within the ninety-day period immediately preceding the employment;
      2. (B) The taxpayer provides such employment for at least twelve (12) consecutive months and for no less than the minimal hours per week; and for employees enrolled in the minimal health care benefits described in subdivision (f)(1), for respective full-time employment jobs and part-time employment jobs;
      3. (C) The credit allowed by this subdivision (f)(2) for the employment of persons with disabilities shall first apply in the tax year in which the taxpayer increases net new employment of such persons by one (1) or more, and in those subsequent fiscal years in which further net increases occur above the level of such employment established when the credit was last taken;
      4. (D) The taxpayer is not required to make a capital investment in a qualified business enterprise in order to receive the credit allowed by this subdivision (f)(2) for the employment of persons with disabilities; and
      5. (E) The credit provided by this subdivision (f)(2) may be granted only to taxpayers who participate in an existing employment incentive program, pursuant to which persons with disabilities are being served by the department of mental health and substance abuse services, the department of disability and aging, the division of rehabilitation services of the department of human services, council on developmental disabilities, or any other similar state employment incentive program. Such employment incentive programs shall annually provide to the commissioner of revenue for approval, on or before July 1, a list of their existing employment incentive programs promoting the hiring of disabled individuals.
    3. (3) The taxpayer shall file a plan with the commissioner of revenue, on a form prescribed by the commissioner, in order to qualify for the credit. The form shall be filed on or before the last day of the fiscal year in which the employment begins, and shall state the number of persons with disabilities newly employed. The commissioner of revenue shall certify a taxpayer's participation in one (1) of these programs and the number of persons employed by the taxpayer meeting the criteria established by this subsection (f).
    4. (4) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the amount of credit allowed by this subsection (f), and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the job tax credit.
    5. (5) Subdivision (b)(1)(D), relating to the carryforward of any unused job tax credit, shall apply to the credit allowed by this subsection (f).
  7. (g) [Expired July 1, 2015; see (g)(11)]
    1. (1) For purposes of this subsection (g), “headquarters facility,” “headquarters staff employees,” “investment period,” “new full-time employee job,” “qualified headquarters facility,” and “qualified headquarters facility relocation expenses” shall have the same meanings as defined in § 67-6-224.
    2. (2) In addition to the job tax credit provided in subsection (b), there is allowed a credit against a taxpayer's franchise and excise tax liability equal to any qualified headquarters facility relocation expenses incurred by the taxpayer during the investment period; provided, that the taxpayer meets one (1) of the following criteria:
      1. (A) The taxpayer creates at least one hundred (100) but less than two hundred fifty (250) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage;
      2. (B) The taxpayer creates at least two hundred fifty (250) but less than five hundred (500) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage;
      3. (C) The taxpayer creates at least five hundred (500) but less than seven hundred fifty (750) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage;
      4. (D) The taxpayer creates at least seven hundred fifty (750) net new full-time employee jobs that pay at least one hundred fifty percent (150%) of this state's average occupational wage; or
      5. (E) The taxpayer creates at least five hundred (500) net new full-time employee jobs in connection with a capital investment in excess of one billion dollars ($1,000,000,000).
    3. (3) Notwithstanding any law to the contrary, the total credit allowed to a taxpayer under this subsection (g) shall not exceed the appropriate dollar amount listed in one (1) of the following subdivisions (g)(3)(A)-(E), multiplied by the number of headquarters staff employee positions relocated by the taxpayer to the qualified headquarters facility during the investment period:
      1. (A) For a taxpayer meeting the requirements in subdivision (g)(2)(A), ten thousand dollars ($10,000);
      2. (B) For a taxpayer meeting the requirements in subdivision (g)(2)(B), twenty thousand dollars ($20,000);
      3. (C) For a taxpayer meeting the requirements in subdivision (g)(2)(C), thirty thousand dollars ($30,000);
      4. (D) For a taxpayer meeting the requirements in subdivision (g)(2)(D), forty thousand dollars ($40,000); and
      5. (E) For a taxpayer meeting the requirement in subdivision (g)(2)(E), one hundred thousand dollars ($100,000).
    4. (4) To the extent any amount allowed as a credit under this subsection (g) exceeds the combined tax imposed by this part and by part 20 of this chapter, the amount of such excess shall be considered an overpayment and shall be refunded to the taxpayer. Such refund shall be subject to the procedures of § 67-1-1802; provided, however, notwithstanding any procedure of § 67-1-1802 to the contrary, that a claim for refund must be filed with the commissioner within three (3) years from December 31 of the year in which the qualified headquarters facility relocation expense was incurred.
    5. (5) If the qualified headquarters facility is not utilized as a headquarters facility for a period of at least ten (10) years from the end of the investment period, the taxpayer shall be subject to an assessment of tax, plus applicable interest, calculated in accordance with this subdivision (g)(5). The amount of tax assessed under this subdivision (g)(5) shall equal the total credit or refund, or both, taken pursuant to this subsection (g) multiplied by a fraction, the numerator of which is the number of years the facility is not utilized as a headquarters facility and the denominator of which is ten (10). The amount of interest shall be calculated in accordance with § 67-1-801 from the date the facility is no longer utilized as a headquarters facility until the date paid.
    6. (6)
      1. (A) If the headquarters staff employee position is not filled in Tennessee during the investment period, the taxpayer shall be subject to an assessment of the total amount of credit or refund taken relating to such employee position pursuant to this subsection (g) plus interest; and
      2. (B) If the headquarters staff employee position does not remain filled in Tennessee for a period of at least five (5) years, beginning from the date such employee position was initially filled in Tennessee, the taxpayer shall be subject to an assessment of the total amount of credit or refund taken relating to such employee position pursuant to this subsection (g), plus interest.
    7. (7) Nothing in this subsection (g) shall require that the taxpayer establish its commercial domicile in this state in order to receive the credit provided in this subsection (g).
    8. (8) The credit provided for by this subsection (g) may be computed by a general partnership that has established an international, national or regional headquarters in this state that meets the definition of a qualified headquarters facility under § 67-6-224 and has qualified for the job tax credit provided for in subsection (c). The amount of the credit shall be allowed under this section as if the general partnership were subject to franchise and excise tax under part 20 of this chapter and this part. With respect to the general partnership tax year during which a credit is so computed, a partner in the general partnership that is subject to this state's franchise and excise tax and that directly holds a first tier ownership interest in the general partnership may take a percentage of the credit that equals the total amount of the credit for the general partnership multiplied by the partner's percentage interest in the general partnership on the last day of the general partnership tax year against the partner's franchise and excise tax liability for the partner's tax year that includes the last day. The relocation expense credit passed through from the general partnership to the first tier partner under this section shall, in the hands of the first tier partner, be subject to applicable provisions and limitations otherwise provided by this section. In no case shall the credit be taken by a business entity unless it was a partner in the general partnership and subject to franchise and excise tax at the time the credit was earned by the general partnership.
    9. (9) If determined to be in the best interests of the state, the commissioner is further authorized to allow a relocation expense credit to any scrap metal processing facility relocating from a central business district or an area adjacent to the central business district and separated only by a waterway. Such credit shall be equal to the amount of relocation expenses incurred and paid by the facility but shall not exceed the amount of credit allowed under subdivision (g)(3)(E) for the relocation of staff employees of a headquarters facility.
    10. (10) Any insurance company, as defined in § 56-1-102, that otherwise meets all of the criteria contained in this subsection (g) and would be subject to the tax imposed by this part and part 20 of this chapter if not for the exemption provided in § 67-4-2008(a)(14), shall be granted the credit provided in this subsection (g) and shall be entitled to a refund as provided in subdivision (g)(4).
    11. (11) This subsection (g) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  8. (h)
    1. (1) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in this part, and by the Excise Tax Law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Five percent (5%) of a qualified loan or qualified long-term investment made to an eligible housing entity for any eligible activity; or
      2. (B) Three percent (3%) annually of the unpaid principal balance of a qualified loan made to an eligible housing entity for any eligible activity as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    2. (2) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in this part, and by the Excise Tax Law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Ten percent (10%) of a grant, contribution, or qualified low-rate loan made to an eligible housing entity for any eligible activity; or
      2. (B) Five percent (5%) annually of the unpaid principal balance of a qualified low-rate loan made to an eligible housing entity for any eligible activity as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    3. (3) For purposes of this subsection (h), the following definitions shall apply:
      1. (A) “Eligible activity” means an activity that creates or preserves affordable housing for low-income Tennesseans, an activity to help low-income Tennesseans obtain safe and affordable housing, an activity that builds the capacity of an eligible nonprofit to provide housing opportunities to low-income Tennesseans, including the construction or expansion of an office or other facility in which low-income housing related planning and educational opportunities will be provided, and any other activities approved by the executive director of the Tennessee housing development agency and the commissioner of revenue;
      2. (B) “Eligible housing entity” means:
        1. (i) A Tennessee nonprofit corporation with Internal Revenue Code § 501(c)(3) status (26 U.S.C. § 501(c)(3)), including an entity created and controlled by such corporation, or a wholly-owned subsidiary of such corporation, that engages in eligible activity on behalf of such corporation;
        2. (ii) The Tennessee housing development agency;
        3. (iii) A public housing authority, including an entity created and controlled by such authority, or a wholly-owned subsidiary of such authority, that engages in eligible activity on behalf of such authority; or
        4. (iv) A development district, including a development district that engages in eligible activity;
      3. (C) “Financial institution” has the definition as provided in § 67-4-2004;
      4. (D) “Low-income” means any individual or family at or below eighty percent (80%) of the applicable area median family income as determined by family size;
      5. (E) “Qualified loan” means a loan that is at least two percent (2%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved, that does not qualify as a qualified low-rate loan;
      6. (F) “Qualified long-term investment” means an equity investment made for a period of more than five (5) years to an eligible housing entity; and
      7. (G) “Qualified low-rate loan” means a loan that is at least four percent (4%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved.
    4. (4) In order to take the credit, the regulated financial institution must maintain a certification from the Tennessee housing development agency establishing entitlement to the credit.
    5. (5) The eligible housing entity receiving the funds must maintain such records as required by the Tennessee housing development agency, to ensure that affordable housing opportunities are being provided.
    6. (6) The department of revenue is authorized to share with the Tennessee housing development agency information necessary to effectuate the purposes of this subsection (h). The Tennessee housing development agency shall be bound by restrictions on disclosure of such information otherwise applicable to the department of revenue.
    7. (7) The commissioner of revenue and the executive director of the Tennessee housing development agency are authorized to promulgate rules and regulations to effectuate the purposes of this subsection (h). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
    8. (8) Any unused credit allowed under subdivision (h)(1)(A) or (h)(2)(A) may be carried forward for fifteen (15) years after the tax year in which the credit originated; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years. Any unused credit allowed under subdivision (h)(1)(B) or (h)(2)(B) shall not be carried forward beyond the tax year in which the credit originated.
  9. (i) [Expired July 1, 2015; see (i)(2)]
    1. (1) A taxpayer that has established its international, national, or regional headquarters in this state and has met the requirements to qualify for the credit provided in § 67-6-224 shall be allowed a credit against the franchise tax imposed under this part equal to the rate of tax imposed under § 67-4-2007 multiplied by any net operating loss incurred by the taxpayer during the tax year covered by the return, or properly carried over from a previous tax year, in accordance with § 67-4-2006; provided, that the credit allowed in this subsection (i) shall only be available if the taxpayer is unable to use the loss or loss carryover to offset net income during the current tax year for excise tax purposes. If a net operating loss or loss carryover is used to calculate a credit under this subsection (i), it shall no longer be available as a deduction for excise tax purposes, and under no circumstances shall the same net operating loss be used for both franchise and excise tax purposes. The credit in this subsection (i) shall only be available upon a determination by the commissioner of revenue and the commissioner of economic and community development that the utilization of net operating losses or loss carryovers against the taxpayer's franchise tax liability is in the best interests of the state. For purposes of this subsection (i), “best interests of the state” means a determination that the taxpayer established its headquarters in this state or converted a regional headquarters in this state into its national or international headquarters as a result of such action. The commissioner of revenue and the commissioner of economic and community development shall determine the period during which the credit provided by this subsection (i) shall be allowed to the taxpayer.
    2. (2) This subsection (i) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  10. (j)
    1. (1) For purposes of this subsection (j):
      1. (A) “Applicant” means a person applying for a credit under this subsection (j);
      2. (B) “Best interests of the state” means a determination by the commissioners of revenue and economic and community development that the qualified production is a result of the credit provided in this subsection (j) and the benefits to the state resulting from the production outweigh the anticipated costs. In making this determination, the commissioners may consider the investment made, jobs created, impact to the community, and any other matters deemed appropriate by the commissioners;
      3. (C) “Commission” means the Tennessee film, entertainment and music commission, created by § 4-3-5003;
      4. (D) “Esports” means leagues, competitive circuits, tournaments, or similar competitions where individuals or teams play video games, typically for spectators, either in-person or online, for the purpose of ranking, prizes, money, or entertainment;
      5. (E) “Qualified payroll expenses” means compensation paid in this state, as determined pursuant to § 67-4-2111(f), for qualified positions during the applicable tax period, subject to programmatic caps established by the commission;
      6. (F) “Qualified position” means services performed by an employee or an independent contractor determined by the commission to be necessary to and primarily for a qualified production; and
      7. (G) “Qualified production”:
        1. (i) Means any of the following activities, as determined by the commission:
          1. (a) The production of a film, pilot episode, series, esports event, or other episodic content in this state;
          2. (b) The creation of computer-generated imagery, video games, or interactive digital media in this state; or
          3. (c) Stand-alone audio or visual post-production scoring and editing in this state; and
        2. (ii) Includes activities by a third party that are necessary to and performed on behalf of a person engaging in the activities covered by subdivision (j)(1)(G)(i).
    2. (2)
      1. (A) If the commissioner of revenue and the commissioner of economic and community development determine under the process set forth in subdivision (j)(3), in their sole discretion and in writing, that it is in the best interests of the state, a credit for qualified payroll expenses in the amounts specified in subdivision (j)(2)(B) is allowed against an applicant's combined franchise and excise tax liability. The total credit taken on any franchise and excise tax return, including any credit carried forward from prior tax periods, shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any unused credit allowed under this subsection (j) may be carried forward in any tax period until the credit is taken; provided, however, that the credit shall not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years.
      2. (B) The amount of the credit for qualified payroll expenses allowed under subdivision (j)(2)(A) is forty percent (40%) of qualified payroll expenses, except in the case of qualified payroll expenses paid to individuals whose primary residence is in a tier 2, tier 3, or tier 4 enhancement county, for which the credit is fifty percent (50%) of qualified payroll expenses.
    3. (3) Eligibility for the credit set forth in this subsection is determined as follows:
      1. (A) An applicant must apply to the commission, on a form prescribed by the commission, describing the basis for seeking a credit under this subsection, including the nature of the production activities involved and number of employment positions that the applicant estimates to be deemed qualified positions;
      2. (B) If the commission determines that the applicant is engaging in a qualified production, then the commission shall notify the applicant and the department of revenue of that determination, and the applicant may apply to the department of revenue for the credit under this subsection on a form prescribed by the department of revenue;
      3. (C) The department of revenue shall not approve an application for the credit under this subsection unless the commissioner of revenue and the commissioner of economic and community development each determine, in their sole discretion and in writing, that approving the application is in the best interests of the state.
    4. (4) If the application is approved by the department of revenue in accordance with subdivision (3)(B), then the applicant shall claim the credit under this subsection in a manner prescribed by the department of revenue.
    5. (5)
      1. (A) Subject to the approval of the department of revenue, an applicant may file a combined return with one (1) or more affiliates or affiliated group members for purposes of fully utilizing this credit. The request to file a combined return must be included in the applicant's application for the credit under subdivision (3)(B) and is subject to the approval of the department of revenue.
      2. (B) Once an application to file a combined return is granted, an applicant may apply to add or change affiliates or affiliated group members included in the combined return prior to filing the first combined return on which the credit is claimed. If the addition or change is approved pursuant to subdivision (5)(C), then the members included on the combined return must remain unchanged for a minimum of three (3) years, beginning with the first tax year in which the credit is claimed on a combined return. Each member included on the combined return must close its taxable year on the same date, except that an affiliate included in the group may exit the group during the taxable year due to a change in ownership, merger, or liquidation of the member, in which case the member exiting the group must be excluded from the group and must compute its net earnings as otherwise provided in part 20 of this chapter and its net worth as otherwise provided in this part.
      3. (C) A request to file a combined return, or to add or change affiliates or affiliated group members included in a combined return, shall not be approved unless the commissioner of revenue and the commissioner of economic and community development each determine, in their sole discretion and in writing, that approving the request is in the best interests of the state.
    6. (6) This subsection (j) is subject to the reporting requirements of subsection (r) and § 67-1-118.
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  11. (k)
    1. (1) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax law, compiled in this part, and by the Excise Tax law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Five percent (5%) of a qualified loan or qualified long-term investment made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund; or
      2. (B) Three percent (3%) annually of the unpaid principal balance of a qualified loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    2. (2) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax law, compiled in this part, and by the Excise Tax law, compiled in part 20 of this chapter, an amount equal to either:
      1. (A) Ten percent (10%) of a grant, contribution, or qualified low-rate loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund; or
      2. (B) Five percent (5%) annually of the unpaid principal balance of a qualified low-rate loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund as of December 31 of each year for the life of the loan or fifteen (15) years, whichever is earlier.
    3. (3) For purposes of this subsection (k):
      1. (A) “Financial institution” has the same meaning as defined in § 67-4-2004;
      2. (B) “Qualified loan” means a loan that is at least two percent (2%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved, that does not qualify as a qualified low-rate loan;
      3. (C) “Qualified long-term investment” means an equity investment made for a period of more than five (5) years; and
      4. (D) “Qualified low-rate loan” means a loan that is at least four percent (4%) below the prime rate, as published by the Wall Street Journal at the time the loan is approved.
    4. (4) Any unused credit allowed under subdivision (k)(1)(A) or (k)(2)(A) may be carried forward for fifteen (15) years after the tax year in which the credit originated; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years. Any unused credit allowed under subdivision (k)(1)(B) or (k)(2)(B) shall not be carried forward beyond the tax year in which the credit originated.
    5. (5) Notwithstanding § 47-14-103 or any other provision to the contrary, a community development financial institution, as described in this subsection (k), shall be allowed to charge a rate of interest not to exceed twenty-four percent (24%) per annum.
  12. (l)
    1. (1) There shall be allowed, for any financial institution, a credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in this part, and the Excise Tax Law, compiled in part 20 of this chapter, in an amount equal to ten percent (10%) of the financial institution's contribution to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund. The credit provided in this subsection (l) shall be allowed each year for a period of ten (10) years, beginning with the tax year in which the contribution is made. Any unused credit allowed under this subsection (l) shall not be carried forward beyond the tax year in which the credit originated.
    2. (2) For purposes of this subsection (l), the loaning of funds by the taxpayer to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund shall constitute a contribution by the taxpayer to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund. If, however, at the close of the tenth year of the period during which the credit is allowed, the taxpayer or its assignee has received repayment, or retains any right to repayment, of all or any portion of the amount contributed to the Tennessee rural opportunity fund or the Tennessee small business opportunity fund or any interest accrued thereon, the department shall be entitled to recapture the credit allowed by increasing the franchise tax liability or the excise tax liability, or both, of the taxpayer by the credit recapture amount for the first tax year following the ten-year period during which the credit is allowed. The credit recapture amount shall be equal to the total amount of credit allowed, plus interest at the rate determined under § 67-1-801 from the date the credit was offset against the taxpayer's franchise tax liability or the excise tax liability, or both.
  13. (m) [Expired July 1, 2015; see (m)(6)]
    1. (1) As used in this subsection (m):
      1. (A) “Carbon charge” means a tax or fee imposed or levied by the federal or state government, the purpose of which is to reduce the emission of greenhouse gases. “Carbon charge” may include, but is not limited to, a tax, emission fee or charge, or required purchase of carbon or emission off-sets or credits, whether incurred by or imposed directly on the certified green energy supply chain manufacturer or campus affiliate or imposed on the Tennessee Valley authority or other applicable energy provider and billed to the certified green energy supply chain manufacturer or campus affiliate;
      2. (B) “Certified green energy supply chain manufacturer” means any manufacturer that has made, during the investment period, a required capital investment in excess of two hundred fifty million dollars ($250,000,000) in constructing, expanding or remodeling a facility that is certified by the commissioner of revenue, the commissioner of economic and community development and the commissioner of environment and conservation, in their sole discretion, to be a facility engaged in manufacturing a product that is necessary for the production of green energy;
      3. (C) “Charge for electricity sold” means the total delivered cost of electricity sold to the certified green energy supply chain manufacturer or campus affiliate at the point of delivery to the facility. The charge for electricity sold shall be the total amount due as shown on the customer's electricity bills over the applicable tax year. Any carbon charge shall be excluded from the charge for electricity sold to the extent the carbon charge is included in the credit allowed in subdivision (m)(4);
      4. (D) “Investment period” means a period not to exceed three (3) years from the filing of the business plan related to qualification as a certified green energy supply chain manufacturer, during which the required capital investment must be made; and
      5. (E) “Maximum certified rate” means a rate expressed as a price per kilowatt hour for calculating the green energy tax credit allowed in subdivision (m)(3) and shall be established through the issuance of a private letter ruling by the commissioner of revenue, which shall be subject to approval by the commissioner of economic and community development and the commissioner of finance and administration and any such maximum certified rate established for a green energy supply chain manufacturer shall apply to any campus affiliate.
    2. (2) The credits provided in this subsection (m) and any other applicable credits, net operating losses or carry-forwards thereof provided and in part 20 of this chapter and this part shall be applied in the following order:
      1. (A) Any credits, net operating losses or carry-forwards thereof available to the certified green energy supply chain manufacturer, campus affiliate, integrated customer or integrated supplier pursuant to this part or part 20 of this chapter, except for those contained in this subsection (m), shall be applied to the taxpayer's tax liability first;
      2. (B) Any green energy tax credit available pursuant to subdivision (m)(3) shall be applied to the taxpayer's liability second and shall be refundable as provided in subdivision (m)(3) if the credit exceeds the taxpayer's remaining liability; and
      3. (C) Any carbon tax credit available pursuant to subdivision (m)(4) shall be applied to the taxpayer's liability third and shall be refundable as provided in subdivision (m)(4) if the credit exceeds the taxpayer's remaining liability.
    3. (3) A certified green energy supply chain manufacturer and campus affiliate, integrated customer or integrated supplier of a green energy supply chain manufacturer shall be allowed a green energy tax credit against the sum total of the taxes imposed by the Franchise Tax Law compiled in this part and the Excise Tax Law compiled in part 20 of this chapter, equal to the amount by which the charge for electricity sold to the certified green energy supply chain manufacturer, campus affiliate, integrated customer or integrated supplier exceeds the charge that would have been made for such total delivered electricity if the maximum certified rate had been applied during the applicable tax year. The Tennessee Valley authority, or the applicable energy provider, shall supply such information as deemed necessary by the commissioner of revenue to verify the amount of the credit. Consistent with subdivision (m)(2), to the extent that any amount allowed as a credit under this subdivision (m)(3), for any tax year, exceeds the combined tax imposed by part 20 of this chapter and this part after the application of all available credits other than the credit provided in subdivision (m)(4), the amount of the excess shall be considered an overpayment and shall be refunded to the taxpayer; provided, however, that the overpayment and the refund shall not exceed, for any one (1) tax year, an amount equal to one million five hundred thousand dollars ($1,500,000) for each two hundred fifty million dollars ($250,000,000) in capital investments made by the certified green energy supply chain manufacturer. The refund shall be subject to the procedures of § 67-1-1802; provided, however, that, notwithstanding any procedure of § 67-1-1802 to the contrary, a claim for refund must be filed with the commissioner within three (3) years from December 31 of the year in which the credit provided by this subdivision (m)(3) was incurred. To the extent any amount allowed as a credit under this subdivision (m)(3) is not applied to the taxpayer's liability and is not received by the taxpayer as a refund, the credit may be carried forward in perpetuity until it is claimed as a refund or utilized as a credit by the certified green energy supply chain manufacturer pursuant to this subdivision (m)(3). Except for the purpose of receiving a refund or otherwise utilizing credits that have been carried forward, the credit provided for in this subdivision (m)(3) shall cease to be effective on January 1, 2029, and no new credit shall be allowed for tax years ending on or after January 1, 2029.
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    4. (4) A certified green energy supply chain manufacturer and any campus affiliates shall be allowed a carbon charge credit against the sum total of the taxes imposed by the Franchise Tax Law compiled in this part and the Excise Tax Law compiled in part 20 of this chapter, equal to any carbon charges incurred by or imposed directly on the certified green energy supply chain manufacturer, campus affiliate or imposed on the Tennessee Valley authority or other applicable energy provider and billed to the certified green energy supply chain manufacturer or campus affiliate during the applicable tax year. The Tennessee Valley authority, or the applicable energy provider, shall supply such information as deemed necessary by the commissioner of revenue to verify the amount of the carbon charge credit. Consistent with subdivision (m)(2), to the extent any amount allowed as a carbon charge credit under this subdivision (m)(4) exceeds the combined tax imposed by this part and by part 20 of this chapter after the application of all other available credits, the amount of the excess shall be considered an overpayment and shall be refunded to the taxpayer. The refund shall be subject to the procedures of § 67-1-1802; provided, however, that, notwithstanding any procedure of § 67-1-1802 to the contrary, a claim for refund must be filed with the commissioner within three (3) years from December 31 of the year in which the credit provided by this subdivision (m)(4) was incurred.
    5. (5) The investment period for making the required capital investment may be extended by the commissioner of economic and community development for a reasonable period, not to exceed two (2) years, for good cause shown. For purposes of this subdivision (m)(5), “good cause” means a determination by the commissioner of economic and community development that the capital investment is a result of the credit provided in this subsection (m).
    6. (6) This subsection (m) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  14. (n) [Expired July 1, 2015; see (n)(2)]
    1. (1) There shall be allowed a credit against a key tenant's franchise and excise tax liability equal to any qualified medical trade center relocation expenses incurred by the key tenant; provided, however, that such credit shall not exceed an amount equal to ten dollars ($10.00) for each square foot of space within the facility that is leased and occupied by the key tenant. To the extent that any amount allowed as a credit under this subsection (n), for any tax year, exceeds the combined franchise and excise tax after the application of all available credits, the amount of such excess shall be considered an overpayment and shall be refunded to the key tenant. The refund shall be subject to the procedures of § 67-1-1802; provided, however, notwithstanding any procedure of § 67-1-1802 to the contrary, that a claim for refund shall be filed with the commissioner within three (3) years from December 31 of the year in which the qualified medical trade center relocation expenses were incurred.
    2. (2) This subsection (n) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  15. (o) [Expired July 1, 2015; see (o)(6)]
    1. (1) For purposes of this subsection (o), “qualified advertising expenses” means advertising expenses that are incurred for the purpose of co-promoting a qualified medical trade center and the State of Tennessee or the City of Nashville; provided, however, that the expenses shall not qualify under this subdivision (o)(1) unless both the commissioner of revenue and the commissioner of economic and community development determine, in their sole discretion, that the advertising and the allowance of the credit are in the best interests of this state. For purposes of this subdivision (o)(1), “best interests of the state” means a determination by the commissioner of revenue and the commissioner of economic and community development that the advertising is a result of the credit provided in this subsection (o).
    2. (2) A credit in an amount equal to fifteen percent (15%) of any qualified advertising expenses shall be allowed against the combined franchise and excise tax liability of any taxpayer that incurs and pays such qualified expenses.
    3. (3) In order for a taxpayer to become entitled to a credit under this subsection (o), the taxpayer shall submit documentation verifying that the qualified advertising expenses have been incurred and paid.
    4. (4) The commissioner shall review the documentation and notify the taxpayer of the approved credit.
    5. (5) Once the taxpayer has been notified of the approved credit, the taxpayer may submit a claim for the credit. To the extent that any amount allowed as a credit under this subsection (o), for any tax year, exceeds the combined franchise and excise tax after the application of all available credits, the amount of such excess shall be considered an overpayment and shall be refunded to the taxpayer. The refund shall be subject to the procedures of § 67-1-1802; provided, however, notwithstanding any procedure of § 67-1-1802 to the contrary, that a claim for refund shall be filed with the commissioner within three (3) years from December 31 of the year in which the qualified advertising expenses were incurred.
    6. (6) This subsection (o) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  16. (p) [Expired July 1, 2015; see (p)(2)]
    1. (1) The commissioner of revenue, the commissioner of economic and community development, and the commissioner of finance and administration are authorized, with the approval of the comptroller of the treasury, to jointly establish a program pursuant to which buildings, facilities, or other infrastructure may be developed utilizing a state funding mechanism and pursuant to which the value of tax credits that have been earned by the taxpayer but remain unutilized may be applied, in lieu of payments, toward the purchase or lease of such property pursuant to a contractual agreement between the taxpayer and the program. Such tax credits may include those to which the taxpayer is entitled under this section or under any other provision of this part, part 20 of this chapter, or chapter 6 of this title.
    2. (2) This subsection (p) shall expire on July 1, 2015; provided, that any taxpayer that has filed a business plan with the department prior to July 1, 2015, shall continue to be eligible for the credit.
  17. (q)
    1. (1) As used in this subsection (q):
      1. (A) “Business plan” means a job creation plan submitted by a qualified business to the commissioner;
      2. (B) “Community resurgence job tax credit” means the credit provided to a qualified business located in a high-poverty area as provided in this subsection (q);
      3. (C) “Full-time job” means a permanent employment position providing employment for at least twelve (12) consecutive months, to a person for at least thirty-seven and one-half (37.5) hours per week;
      4. (D) “High-poverty area” means a census tract with a poverty level, all population, in excess of thirty percent (30%), according to the American community survey three-year estimates in 2013, and determined decennially thereafter, as compiled by the department of economic and community development in consultation with the comptroller of the treasury;
      5. (E) “Qualified business” means a new or existing business located in a high-poverty area according to the most recent decennial determination at the time a business plan is filed with the commissioner; and
      6. (F) “Qualifying job” means:
        1. (i) A full-time job with wages equal to, or greater than, the state's average occupational wage, as defined in § 67-4-2004, for the month of January of the year during which the job was created;
        2. (ii) The job is newly created in this state and, for at least ninety (90) days prior to being filled by the taxpayer, did not exist in this state as a job of the taxpayer or of another business entity; and
        3. (iii) The job is created within a three-year period from the effective date of the business plan.
    2. (2) In addition to any other credits allowed in this section, there shall be allowed to any qualified business a community resurgence job tax credit equal to two thousand five hundred dollars ($2,500) for each qualifying job created.
    3. (3) The qualified business shall file a business plan with the commissioner in order to qualify for the credit provided by this subsection (q). The business plan shall be filed in a manner prescribed by the commissioner and shall describe the type of business, the number of jobs to be created, the expected dates the jobs will be filled, and the effective date of the plan.
    4. (4) In order to qualify for the credit, the qualified business shall create at least ten (10) qualifying jobs. The credit provided in subdivision (q)(2) shall first apply in the tax year in which the qualified business first satisfies the job creation requirements and in subsequent tax years in which further net increases occur above the level of employment established when the credit was last taken.
    5. (5) The credit shall apply against the franchise tax imposed by this part and the excise tax imposed by the Excise Tax Law of 1999, compiled in part 20 of this chapter; provided, however, that the credit, together with any carry-forward thereof, taken on any franchise and excise tax return shall not exceed fifty percent (50%) of the combined franchise and excise tax liability shown on the return before any credit is taken. Any unused credit may be carried forward in any tax period until the credit is taken; provided, however, that the credit may not be carried forward for more than fifteen (15) years; provided, however, that credits earned in tax years ending on or after December 31, 2008, may be carried forward for twenty-five (25) years.
    6. (6) The commissioner has the authority to conduct audits or require the filing of additional information necessary to substantiate or adjust the amount of credit allowed by this subsection (q), and to determine that the taxpayer has complied with all statutory requirements so as to be entitled to the community resurgence job tax credit. If it is determined that the taxpayer failed to comply, the taxpayer shall be subject to an assessment equal to the amount of any credit taken under this subsection (q) for which the taxpayer failed to qualify, plus interest.
    7. (7) The aggregate amount of the credits allowed to all taxpayers under this subsection (q) shall not exceed twelve million five hundred thousand dollars ($12,500,000) in any one (1) tax year.
  18. (r)
    1. (1) The commissioner shall, no later than January 1, 2018, and by January 1 of each subsequent year, report to the members of the finance, ways and means committees of the house of representatives and the senate with respect to the tax credits claimed under this section and § 67-4-2009 for tax periods ending during the previous fiscal year.
    2. (2) The report shall contain the following information:
      1. (A) The number of taxpayers claiming the credit;
      2. (B) The total amount of credit claimed;
      3. (C) The number of jobs created during the fiscal year as reported by the taxpayer, if the credit is awarded based on jobs created;
      4. (D) The total amount of credit carried forward from a prior tax year; and
      5. (E) The nature of business of the taxpayers claiming the credit, if the nature of the business is available.
    3. (3) Nothing in this subsection (r) authorizes the disclosure of returns, tax information, or tax administration information, as such terms are defined in § 67-1-1701.
Backlinks (4)
History (36)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 973, § 1
  • 2000, ch. 982, §§ 34, 54-56
  • 2000, ch. 983, §§ 10, 11
  • 2003, ch. 202, § 1
  • 2004, ch. 592, §§ 1-4, 13, 14
  • 2004, ch. 924, § 14
  • 2005, ch. 490, § 1
  • 2005, ch. 499, §§ 59, 62, 63, 85, 88, 90
  • 2006, ch. 779, §§ 1, 2
  • 2006, ch. 1019, §§ 2-5, 8, 24, 25, 26, 29
  • 2007, ch. 602, §§ 2, 8-12, 180-182
  • 2008, ch. 1106, §§ 42, 44, 46-50, 52, 58, 62
  • 2009, ch. 477, § 1
  • 2009, ch. 530, §§ 1, 16, 17, 27, 132
  • 2010, ch. 1100, § 102
  • 2010, ch. 1134, §§ 23, 25-32, 34, 37, 52, 53, 55, 56
  • 2011, ch. 72, § 16
  • 2011, ch. 383, §§ 4, 5
  • 2011, ch. 508, §§ 13-21, 25-27
  • 2012, ch. 575, § 1
  • 2012, ch. 576, §§ 1, 2
  • 2012, ch. 1026, § 10
  • 2013, ch. 378, § 2
  • 2015, ch. 504, §§ 6-16
  • 2015, ch. 521, § 2
  • 2016, ch. 759, §§ 1, 2
  • 2016, ch. 1019, §§ 4-8
  • 2017, ch. 251, § 1
  • 2017, ch. 417, § 1
  • 2019, ch. 401, §§ 1, 2
  • 2019, ch. 451, § 2
  • 2021, ch. 70, § 2
  • 2021, ch. 194, § 9
  • 2023, ch. 377, §§ 41-45
  • 2024, ch. 688, § 151.
§ 67-4-2110. Apportionment for persons doing business outside state.
  1. (a) Any taxpayer having business activities that are taxable both inside and outside the state of Tennessee shall allocate or apportion its net worth as provided in this part. A taxpayer is considered taxable in another state only if the taxpayer is conducting activities in that state that, if conducted in Tennessee, would constitute doing business in Tennessee and would subject the taxpayer to either Tennessee's franchise tax or excise tax.
  2. (b) Nonbusiness receipts shall not be included in the numerator or denominator of any apportionment formula.
Backlinks (1)
History (2)
  • Acts 1999, ch. 406, § 4
  • 2006, ch. 1019, § 23.
§ 67-4-2111. Apportionment of net worth.
  1. (a)
    1. (1) Except as otherwise provided in this part, for tax years beginning prior to July 1, 2016, the net worth of a taxpayer doing business both in and outside this state shall be apportioned to this state by multiplying such values by a fraction, the numerator of which shall be the property factor plus the payroll factor plus twice the receipts factor, and the denominator of the fraction shall be four (4).
    2. (2) Except as otherwise provided in this part, for tax years beginning on or after July 1, 2016, the net worth of a taxpayer doing business both in and outside this state shall be apportioned to this state by multiplying such values by a fraction, the numerator of which shall be the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction shall be five (5).
    3. (3) Except as otherwise provided in this part, for tax years ending on or after December 31, 2023, but before December 31, 2024, the net worth of a taxpayer doing business both inside and outside this state must be apportioned to this state by multiplying such values by a fraction, the numerator of which is the property factor plus the payroll factor plus five (5) times the receipts factor, and the denominator of the fraction is seven (7).
    4. (4) Except as otherwise provided in this part, for tax years ending on or after December 31, 2024, but before December 31, 2025, the net worth of a taxpayer doing business both inside and outside this state must be apportioned to this state by multiplying such values by a fraction, the numerator of which is the property factor plus the payroll factor plus eleven (11) times the receipts factor, and the denominator of the fraction is thirteen (13).
    5. (5) Except as otherwise provided in this part, for tax years ending on or after December 31, 2025, the net worth of a taxpayer doing business both inside and outside this state must be apportioned to this state by multiplying such values by the receipts factor only.
    6. (6) If the application of subdivision (a)(3), (a)(4), or (a)(5) to a tax year results in a lower apportionment ratio than under the application of the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023, then a taxpayer may annually elect to apply the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023; provided, however, the election must result in a higher apportionment ratio for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006.
    7. (7) Notwithstanding subdivisions (a)(3)-(a)(6), for tax years ending on or after December 31, 2023, the net worth for a “qualified member” of a “qualified group,” as those terms are defined in subsection (j), must be apportioned to this state by multiplying such values by a fraction, the numerator of which is the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction is five (5).
  2. (b)
    1. (1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property, excluding exempt inventory, owned or rented and used in this state during the tax period, and the denominator of which is the average value of all the taxpayer's real and tangible personal property, excluding exempt inventory, owned or rented and used during the tax period.
    2. (2)
      1. (A) For a taxpayer electing to compute its net worth on a consolidated basis, and for a member of a captive REIT affiliated group, the property factor is a fraction computed as follows:
        1. (i) The numerator of which is the average value of the taxpayer's real and tangible personal property, excluding exempt inventory, owned or rented and used in this state during the tax period; and
        2. (ii) The denominator of which is the average value of the group's real and tangible personal property, excluding exempt inventory, owned or rented and used during the tax period.
      2. (B) Exempt inventory shall be determined on a per member basis. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. The property factor shall be determined based on a pro forma consolidated balance sheet prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
    3. (3) If a member of an affiliated group apportions its income in accordance with § 67-4-2013(a), then for purposes of computing its net worth on a consolidated basis, the member shall compute the numerator of its property factor as follows:
      1. (A) The numerator shall include the average value of the taxpayer's real and tangible personal property, excluding exempt inventory, owned or rented and used in this state during the tax period;
      2. (B) In determining the average value of mobile property to be included in the numerator, the value of such property shall be multiplied by a fraction the numerator of which is the total in-state miles of similarly classified mobile property and the denominator of which is the total everywhere miles of similarly classified mobile property; and
      3. (C) For purpose of computing the fraction in subdivision (b)(3)(B), in-state miles and everywhere miles shall be calculated in accordance with the appropriate provisions of § 67-4-2013(a). For purposes of determining whether mobile property is similarly classified, the classification groupings enumerated in § 67-4-2013(a)(1)-(7) shall be used.
    4. (4) For purposes of this section, “property” includes a taxpayer's ownership share of the real or tangible property owned or rented by any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its property factor only the real and tangible property owned or used by the limited liability company. “Property” also includes a taxpayer's ownership share of the real or tangible property owned or rented by any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and, therefore, is not subject to Tennessee franchise tax. The cost value or rental value of such property shall be determined from the books and records of the entity in which the taxpayer has an interest and such property shall be valued in accordance with subsection (c).
  3. (c)
    1. (1) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer, less any annual rental rate received by the taxpayer from sub-rentals. A lessee's payments to a lessor, or on such lessor's behalf, as a part of rent, or in lieu of rent, shall be included as rent in the property factor of the apportionment formula provided by this section. Except with respect to tangible personal property, for purposes of this subsection (c), payments, such as interest, taxes, insurance, repairs or other items, shall be treated as rent paid by the lessee, if they would have been paid by the lessor if the lease contract or other agreement had not specifically provided that they be paid by the lessee.
    2. (2) For purposes of this section, the value of owned or leased mobile or movable property located both in and outside Tennessee during a tax period shall be determined on the basis of the total percentage of time such property is in the state during the tax period; provided, that the value of an automobile or truck assigned to a traveling employee shall be considered in Tennessee, if the employee's compensation is assigned to Tennessee for purposes of the taxpayer's apportionment formula payroll factor, or if such vehicle is licensed in Tennessee.
  4. (d) The average value of property shall be determined by averaging the values at the beginning and end of the tax period, but the commissioner may require the averaging of monthly values during the tax period, if reasonably required to reflect properly the average value of the taxpayer's property.
  5. (e)
    1. (1) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period.
    2. (2)
      1. (A) For a taxpayer electing to compute its net worth on a consolidated basis, and for a member of a captive REIT affiliated group, the payroll factor is a fraction computed as follows:
        1. (i) The numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation; and
        2. (ii) The denominator of which is the total compensation of the group paid everywhere during the tax period.
      2. (B) The payroll factor shall be determined at the close of business on the last day of the tax year as shown by a pro forma consolidated income statement prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
    3. (3) If a member of an affiliated group apportions its income in accordance with § 67-4-2013(a), then for purposes of computing its net worth on a consolidated basis, the member shall compute the numerator of its payroll factor as follows:
      1. (A) The numerator shall include the total amount paid in this state during the tax period by the taxpayer for compensation;
      2. (B) In determining the portion of compensation to be included in the numerator for personnel performing interstate services, the total compensation for such personnel shall be multiplied by a fraction the numerator of which is the total in-state miles traveled by personnel operating similarly classified mobile property and the denominator of which is the total everywhere miles traveled by personnel operating similarly classified mobile property; and
      3. (C) For purposes of computing the fraction in subdivision (e)(3)(B), in-state miles and everywhere miles shall be calculated in accordance with the appropriate provisions of § 67-4-2013(a). For purposes of determining whether mobile property is similarly classified, the classification groupings enumerated in § 67-4-2013(a)(1)-(7) shall be used.
    4. (4) For purposes of this part, “compensation” has the same meaning as set forth in the Excise Tax Law of 1999, compiled in part 20 of this chapter.
    5. (5) For purposes of this section, “compensation” includes a taxpayer's ownership share of the compensation of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its payroll factor only the compensation attributed to the limited liability company. “Compensation” also includes a taxpayer's ownership share of the real or tangible property owned or rented by any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and thus is not subject to Tennessee franchise tax.
  6. (f) Compensation is paid in this state, if:
    1. (1) The individual's service is performed entirely in the state;
    2. (2) The individual's service is performed both in and outside the state, but the service performed outside the state is incidental to the individual's service in the state; or
    3. (3) Some of the service is performed in the state; and:
      1. (A) The base of operations, or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or
      2. (B) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
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  7. (g)
    1. (1) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the tax period, and the denominator of which is the total receipts of the taxpayer everywhere during the tax period.
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    2. (2) For a taxpayer electing to compute its net worth on a consolidated basis, and for a member of a captive REIT affiliated group, the receipts factor is a fraction, the numerator of which is the taxpayer's total receipts in this state during the tax period, and the denominator of which is the group's total receipts during the tax period. The receipts factor shall be determined for the group at the close of business on the last day of the tax year as shown by a pro forma consolidated income statement prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
    3. (3) If a member of an affiliated group apportions its income in accordance with § 67-4-2013(a), then for purposes of computing its net worth on a consolidated basis, the member shall compute the numerator of the receipts factor in accordance with the appropriate provisions of § 67-4-2013(a).
    4. (4) For purposes of this section, “gross receipts” includes a taxpayer's ownership share of the gross receipts of any general partnership or entity treated as a general partnership for federal income tax purposes in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its receipts factor only the gross receipts attributed to the limited liability company. “Gross receipts” also includes a taxpayer's ownership share of gross receipts of any limited partnership, subchapter S corporation, limited liability company, or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly, through one (1) or more such entities, and that is not doing business in Tennessee and thus is not subject to Tennessee franchise tax.
  8. (h) Receipts from sales of tangible personal property are in this state, if the:
    1. (1) Property is delivered or shipped to a purchaser, other than the United States government, in this state regardless of the F.O.B. point or other conditions of the sale; or
    2. (2) Property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government.
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  9. (i)
    1. (1) Sales, other than sales of tangible personal property, are in this state if the taxpayer's market for the sales is in this state. The taxpayer's market for a sale is in this state:
      1. (A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
      2. (B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
      3. (C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state; and
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      4. (D) In the case of intangible property:
        1. (i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and
        2. (ii) That is sold, if and to the extent the property is used in this state; provided, that:
          1. (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state;
          2. (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and
          3. (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
    2. (2) If the state or states of assignment under subdivision (i)(1) cannot be determined, the state or states of assignment shall be reasonably approximated.
    3. (3) If the state of assignment cannot be determined under subdivision (i)(1) or reasonably approximated under subdivision (i)(2), such sale shall be excluded from the numerator and denominator of the sales factor.
    4. (4) If the application of this subsection (i) to a tax year results in a lower apportionment factor than under the application of the apportionment method in this subsection (i) as it was in effect prior to January 1, 2016, then a taxpayer may annually elect to apply the apportionment method in this subsection (i) as in effect prior to January 1, 2016; provided, however, the election must result in a higher apportionment factor for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006.
  10. (j)
    1. (1) For any qualified member of a qualified group, total receipts in this state shall equal the receipts from all sales of tangible personal property that are in this state as determined under subsection (h), plus the arithmetical average of the receipts from all sales other than sales of tangible personal property that are in this state as determined under each of the following alternative methods:
      1. (A) All sales that are in this state as determined under subsection (i); and
      2. (B) All sales, other than sales of tangible personal property, where the earnings-producing activity is performed:
        1. (i) In this state; or
        2. (ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance.
    2. (2) For purposes of this subsection (j), the following definitions shall apply:
      1. (A) “Qualified expenditures” means expenditures incurred in transactions with persons who are not members of the qualified group for the following:
        1. (i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and
        2. (ii) Payroll for employees employed by a member of the qualified group at a facility in this state;
      2. (B) “Qualified group” means an affiliated group that meets both of the following criteria:
        1. (i) One (1) or more members of the group is a qualified member; and
        2. (ii) The members of the group, during the tax period, either:
          1. (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or
          2. (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000);
      3. (C) “Qualified member” means a person that is principally engaged in the sale of “telecommunications service,” “mobile telecommunications service,” “internet access service,” “video programming service,” “direct-to-home satellite television programming service,” or a combination of such services, as each such term is used or defined in chapter 6 of this title.
    3. (3) The method provided by this subsection (j) for determining the total receipts in this state of a qualified member shall be the only method for determining such receipts under this part.
  11. (k) Notwithstanding any provision of this section to the contrary, any gain on the sale of an asset that is designated as goodwill and is required to be included as Class VII assets pursuant to the reporting requirements of 26 U.S.C. §§ 338(b)(5) and 1060, and associated regulations, shall be excluded from both the numerator and the denominator of the apportionment formula receipts factor.
  12. (l)
    1. (1) A taxpayer whose principal business in Tennessee is manufacturing may elect to apportion net worth to this state by multiplying such values by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year and the denominator of which is the total receipts of the taxpayer from any location within or outside of the state during the taxable year.
    2. (2) For purposes of this subsection (l), a taxpayer's principal business in Tennessee is manufacturing if more than fifty percent (50%) of the revenue derived from its activities in this state, excluding passive income, is from fabricating or processing tangible personal property for resale and consumption off the premises. For purposes of this subsection (l), “passive income” means dividend income, interest income, income derived from the sale of securities, and income derived from the licensing or sale of patents, trademarks, tradenames, copyrights, know-how, or other intellectual property.
    3. (3) To elect the method of apportionment provided in this subsection (l), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies.
    4. (4) Once a taxpayer elects the method of apportionment provided in this subsection (l), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (l) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election.
    5. (5) Notwithstanding any other provision of law, prior to July 1, 2033, or any earlier date on which no bonds issued pursuant to title 9, chapter 9, and outstanding as of July 1, 2013, shall remain outstanding, this subsection (l) shall become operative only for such fiscal years as to which the state funding board shall have certified as provided by § 9-9-104(b).
    6. (6) This subsection (l) is repealed for tax years ending on or after December 31, 2025.
  13. (m)
    1. (1) Notwithstanding any other provision of this part, a financial asset management company may elect to apportion net worth by multiplying such net worth by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year as determined under this section and the denominator of which is the total receipts of the taxpayer everywhere during the taxable year.
    2. (2) For the purposes of this subsection (m):
      1. (A)
        1. (i) “Financial asset management company” means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either:
          1. (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. § 78l(g)) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. § 78m); or
          2. (b) Is owned by a publicly traded partnership that owns at least twenty five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and
        2. (ii) “Financial asset management company” does not include any type of real estate investment trust as defined in § 67-4-2004;
      2. (B) “Financial asset management services” means the following services when performed with respect to financial investments: managing portfolio assets of others on a fee or commission basis; rendering investment advice, including investment research and analysis; making determinations as to when sales and purchases of investments are to be made; and selling or purchasing of investments;
      3. (C) “Financial investments” means, without limitation, investments in stocks, stock options, bonds, and alternative asset classes (including, but not limited to, real estate, commodities, and other debt obligations); and
      4. (D) “Publicly traded partnership” means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that files with the securities and exchange commission and whose shares are regularly traded on a securities exchange that is either registered as a national securities exchange with the securities exchange commission under Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. § 78f), or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority.
    3. (3) To elect the method of apportionment provided in this subsection (m), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies.
    4. (4) Once a taxpayer elects the method of apportionment provided in this subsection (m), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (m) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election.
    5. (5) This subsection (m) is repealed for tax years ending on or after December 31, 2025.
  14. (n) For purposes of this section:
    1. (1) “Exempt inventory” means that portion of a taxpayer's finished goods inventory in excess of fifty million dollars ($50,000,000) for fiscal years beginning on or after July 15, 1996; forty million dollars ($40,000,000) for fiscal years beginning on or after July 15, 1997; and thirty million dollars ($30,000,000) for fiscal years beginning on or after July 15, 1998; and
    2. (2) “Finished goods inventory” means tangible personal property that is:
      1. (A) Owned by the taxpayer;
      2. (B) Stored in a facility used primarily for manufacturing, warehousing, or distribution of such inventory;
      3. (C) Held for wholesale or retail sale by the taxpayer, but not sold over-the-counter to consumers at the location where stored;
      4. (D) Shown as inventory on the taxpayer's books and records kept in accordance with generally accepted accounting principles; and
      5. (E) In need of no further fabrication or processing by or for the taxpayer, except, in the case of configuring, testing, or packaging of computer products.
Backlinks (2)
History (12)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 982, §§ 35-37, 52
  • 2004, ch. 932, §§ 7-9
  • 2006, ch. 1019, § 20
  • 2010, ch. 1134, §§ 15-17
  • 2011, ch. 467, §§ 3, 4
  • 2013, ch. 321, § 6
  • 2015, ch. 514, §§ 16, 17
  • 2017, ch. 181, § 29
  • 2018, ch. 656, § 2
  • 2023, ch. 377, §§ 23-25
  • 2024, ch. 950, §§ 7-9.
§ 67-4-2112. Variances from standard apportionment formula — Notice of discontinuation — Hospital companies.
  1. (a) If the tax computation, allocation or apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this state, or the taxpayer's net worth, as adjusted, the taxpayer may petition for, or the department through its delegates may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
    1. (1) Separate accounting;
    2. (2) The exclusion of any one (1) or more of the formula factors;
    3. (3) The inclusion of one (1) or more additional apportionment formula factors that will fairly represent the taxpayer's business activity in this state;
    4. (4) The use of any other method to source receipts for purposes of the receipts factor or factors of the apportionment formula numerator or numerators; or
    5. (5) The employment of any other method to effectuate an equitable computation, allocation and apportionment of the taxpayer's net worth, as adjusted, that fairly represents the extent of the business entity's activities in Tennessee.
  2. (b) If any factors are excluded from or added to the statutory apportionment formula, an appropriate change shall be made in the number used as the denominator of the fraction.
  3. (c)
    1. (1) In any case of two (2) or more persons, organizations, trades or businesses, whether or not incorporated and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the commissioner through delegates may distribute, apportion, or allocate net worth, income, deductions, credits, or allowances between or among such persons, organizations, trades or businesses, if the commissioner determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes, excessive use or abuse of exemptions, or to clearly reflect the net worth or gross receipts of such persons, organizations, trades or businesses. In addition, the commissioner through delegates may require combined reports utilizing a common apportionment formula covering members of an affiliated group. It is the intent of the general assembly that the federal regulations, rulings and court interpretations with respect to 26 U.S.C. § 482 be used as guidance in the administration of this subdivision (c)(1).
    2. (2) In the case of two (2) or more entities owned or controlled directly or indirectly by the same persons, including but not limited to affiliated groups, the commissioner, through the commissioner's delegates, may require combined reports and, if applicable, the utilization of a common apportionment formula covering such entities.
    3. (3) The commissioner may apply federal taxation concepts, including, but not limited to, “assignment of income,” “arms length” and “fair market value” to dealings between and among affiliates.
    4. (4) The commissioner may disregard any entity created or transaction made that has no business purpose or is created or made with the primary purpose of evading either the federal income tax or the franchise tax.
  4. (d) When another method of tax computation, allocation or apportionment has once been established, it shall continue in effect so long as the circumstances justifying the variation remain substantially unchanged, or until changed or discontinued by the department, whichever occurs first. In the event that the department changes or discontinues a variation from the statutory computation, allocation or apportionment provisions that has been granted to or required of a taxpayer, reasonable notice shall be given to the taxpayer affected, and any such change or discontinuation shall apply prospectively to the first tax period and to the subsequent tax periods that begin on or after the date of such notice.
  5. (e) For tax years beginning on or before December 31, 2006, a hospital company, as defined in § 67-4-2004, shall file its franchise and excise tax return on a combined basis, together with all other corporations or other entities subject to the taxes imposed under parts 20 and 21 of this chapter that are members of its controlled group, as defined in § 267(f)(1) of the Internal Revenue Code (26 U.S.C. § 267(f)(1)) and that are doing business in and taxable by this state, apportioned or allocated as to each member separately as provided in §§ 67-4-2110 and 67-4-2111, and then combined. Such combined franchise and excise tax returns shall be signed on behalf of one (1) member of the combined controlled group for itself and on behalf of the other members of the combined controlled group, and such signature shall constitute representation and evidence of authority to file on behalf of all members of the combined controlled group. The combined return shall contain all financial statements and schedules that would be required of each member filing a separate franchise tax return. Each member's net earnings or losses subject to carryover, as the case may be, and each member's apportionment ratio, and applicable supporting schedules shall be computed separately as would be required by law if no combined return were required. The franchise and excise tax shall be computed for the combined group based on the combined net earnings or net losses of the members as combined and shown on the combined return filed for members of the controlled group of companies doing business in this state. The losses available to each member of the controlled group under current or prior law shall be available for offset against the net earnings of the combined group in the first year of filing on a combined basis, and any portion that is not used to offset net earnings of the combined group in the first combined year shall be carried forward on a combined basis to be available as an offset to future net earnings of the combined group in accordance with and subject to the time limitations set forth in § 67-4-2006(c)(2); provided, that such combination shall not extend the time limitation of any then existing net operating losses. No member of the combined group may file its franchise and excise tax return on a separate basis without the consent of the commissioner.
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History (2)
  • Acts 1999, ch. 406, § 4
  • 2005, ch. 499, §§ 44-46.
§ 67-4-2113. Where principal business of taxpayer is that of a common carrier of persons or property for hire or of an insurance company — Apportionment of net worth.
  1. If a taxpayer's principal business in this state is that of a common carrier of persons or property for hire, or of an insurance company, the taxpayer's net worth shall be apportioned to Tennessee on the basis of the following ratios:
    1. (1) Railroads. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The gross receipts from railway operations on business beginning and ending in this state without entering or passing through any other state as compared with its gross receipts from such operations in and outside the state; and
      2. (B) The mileage owned and operated in Tennessee plus mileage leased and operated in Tennessee as compared with the total of such mileage in and outside this state;
    2. (2) Motor Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The gross receipts from operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and
      2. (B) The ratio of the total franchise miles or odometer miles, if there are no franchise miles, to which it holds or uses under lease, contract or otherwise, certificates of convenience and necessity from the interstate commerce commission or the department of safety inside the state, to the total franchise, or odometer, miles that it holds or uses under such certificates from the commissions, and like commissions, departments or agencies of other states, in and outside the state, all as shown by the annual reports made by the corporation to the various commissions from which it holds certificates;
    3. (3) Rail and Motor Carriers. Where the taxpayer is engaged in transporting passengers and property by both rail and motor, then the ratio of the sum of the miles in the state as computed under subdivisions (1) and (2), to the sum of the miles under the subdivisions in and outside the state;
    4. (4) Pipelines. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The gross receipts from operations on business beginning and ending inside the state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and
      2. (B) The ratio of the pipeline miles owned or operated or owned and operated in the state to the miles of pipelines owned or operated or owned and operated in and outside the state;
    5. (5)
      1. (A) Insurance Companies Domiciled in Tennessee. The ratio of the premiums on policies, persons and property in this state to total premiums;
      2. (B) Insurance Companies Not Domiciled in Tennessee. The ratio of premiums on policies, persons and property in this state to total premiums, except that annuity considerations shall be excluded from the numerator and denominator of the ratio;
    6. (6) Air Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The originating revenue inside the state as compared with the entire originating revenue in and outside the state; and
      2. (B) The ratio of the total air miles flown in the state to the total air miles flown in and outside the state. Air miles flown in the state shall only include miles in the state from flights originating from or ending in the state, or both originating from and ending in the state;
    7. (7) Air Express Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The originating revenue in the state as compared with the entire originating revenue in and outside the state; and
      2. (B) The ratio of the total air miles flown and ground miles traveled in the state to the total air miles flown and ground miles traveled in and outside the state. Air miles flown in the state shall only include miles in the state from flights originating from or ending in the state, or both originating from and ending in the state. Ground miles traveled in the state or traveled in and outside the state shall only include miles traveled with respect to the actual common carriage of persons or property for hire; and
    8. (8) Barges. The ratio obtained by taking the arithmetical average of the following two (2) ratios:
      1. (A) The revenue from the transportation of cargo loaded in this state as compared with the entire revenue from the transportation of cargo loaded in and outside the state; and
      2. (B)
        1. (i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state;
        2. (ii) “Mile operated” means one (1) mile of movement of each barge.
History (2)
  • Acts 1999, ch. 406, § 4
  • 2007, ch. 602, § 14.
§ 67-4-2114. Annual return — Contents — Financial unitary businesses.
  1. (a) Every taxpayer liable for the tax imposed by this part shall file with the commissioner of revenue on such form as the commissioner may prescribe an accurate and complete return, signed by its president or other principal officer under penalty of perjury, which report shall contain the following data:
    1. (1) The name of the taxpayer, the state in which chartered or otherwise organized, the location of its principal place of business in this state and the location of its principal or home office;
    2. (2) If applicable, the amount of capital stock subscribed and paid in, the amount issued and outstanding, the amount of surplus and undivided profits or, if applicable, the amount or net worth, assets minus liabilities, together with the book value of each share of such stock as shown by the books and records of the corporation at the close of its last fiscal year;
    3. (3) A comparative balance sheet as of the beginning and close of the last fiscal year as shown by the books and records of the taxpayer; and
    4. (4) Such other and further information as may be required by the commissioner for the reasonable enforcement of this part.
  2. (b) By the enumeration of the specific data required in subsection (a), it is not intended to divest the commissioner of the commissioner's right to require all information that the commissioner may deem necessary for the enforcement of this part.
  3. (c)
    1. (1) Financial institutions subject to tax in this state that are members of a unitary group, as defined in § 67-4-2004, shall file a combined return, and pay the tax imposed by this part, after apportionment, based on all operations of the unitary business. This report shall include the information set out in subsections (a) and (b), for every member of the unitary group, even if some of the members would not otherwise be subject to taxation under this part. Dividends, receipts and expenses resulting from transactions between members of a unitary group shall be excluded from the return, for purposes of apportionment under § 67-4-2118. The members shall designate one (1) member that would otherwise be subject to tax on a separate entity basis to file the combined return. Except as provided in subdivision (c)(2), each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the unitary business.
    2. (2) Joint and several liability for the tax imposed by this part with regard to the unitary business shall not apply to any member that is a limited liability company, limited liability partnership, or limited partnership and meets the criteria set forth either in subdivision (c)(2)(A) or (c)(2)(B):
      1. (A)
        1. (i) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and
        2. (ii) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or
      2. (B) Substantially all of whose assets consist of assets described in subdivision (c)(2)(A)(i), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (c)(2)(A).
    3. (3) For the purposes of subdivision (c)(2), the following shall apply:
      1. (A) The requirements of subdivision (c)(2)(A)(i) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (c)(2)(A)(i), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (c)(3)(A) and necessary or appropriate for the purposes in this subdivision (c)(3)(A);
      2. (B) “Substantially all” as set forth in subdivision (c)(2) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value.
  4. (d) Persons subject to tax in this state that are members of a captive REIT affiliated group, as defined in § 67-4-2004, shall file a combined return and pay the tax imposed by this part, after apportionment, based on all operations of the entire captive REIT affiliated group. The return required by this section shall include the information set out in subsections (a) and (b) for every member of the affiliated group, even if some of the members would not otherwise be subject to taxation under this part. The members of the group shall designate one (1) member that would otherwise be subject to tax on a separate entity basis to file the combined return. Each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the affiliated group.
History (4)
  • Acts 1999, ch. 406, § 4
  • 2005, ch. 499, § 81
  • 2007, ch. 602, § 20
  • 2010, ch. 1134, § 18.
§ 67-4-2115. Filing of return.
  1. (a) The franchise tax return shall be filed as provided in § 67-4-2015. On any return covering less than a twelve-month period, including the return of a taxpayer in final return status, but excluding any return based on a fifty-two to fifty-three-week year, the franchise tax shall be prorated to cover the proportionate part of the year covered by the return. In the event the taxpayer's taxable year is closed within less than twelve (12) months of incorporation, formation, domestication, or commencing of business, the franchise tax of a domestic entity shall be prorated to cover the proportionate part of the year since the date of incorporation or formation, or the date of commencing business, whichever occurred first. The franchise tax of a taxpayer formed outside of Tennessee shall be prorated to cover the proportionate part of the year since beginning business in this state. Proration of the franchise tax shall be computed by a fraction based on a days method.
  2. (b) If a person or taxpayer in final return status effects a complete liquidation that is initiated and completed on the same date, then the franchise tax shall be computed utilizing net worth on the date immediately preceding the liquidating event; otherwise, on any return of a taxpayer in final return status, the franchise tax shall be computed by using the average monthly value of net worth. Such average monthly value shall be determined by totaling the value of net worth as of the final day of each month of the tax period and then dividing that total by the number of months in the tax period. In the event the taxpayer is part of an affiliated group that has elected to compute its net worth on a consolidated basis, such election shall not apply to the taxpayer while it is in final return status unless the entire affiliated group is in final return status during the same tax period, in which case the election shall continue to apply to the taxpayer.
History (4)
  • Acts 1999, ch. 406, § 4
  • 2005, ch. 499, § 82
  • 2013, ch. 321, § 7
  • 2024, ch. 950, §§ 10-14.
§ 67-4-2116. Failure to file tax return — Revocation of charter or certificate — Reinstatement.
  1. (a) The commissioner is empowered to certify to the secretary of state the name of any taxpayer that fails or refuses to file any statement or franchise and excise tax return required by parts 20 or 21 of this chapter, or to pay any fee or tax required by this chapter; however, no certification shall be issued until such statement, return, or tax has remained delinquent for a period of ninety (90) days.
  2. (b) At the time of such certification to the secretary of state, the commissioner shall give notice to the taxpayer of the action taken. Thereupon, the charter, certificate of such taxpayer or its domestication in Tennessee shall stand as automatically dissolved or revoked, and the secretary of state shall note such revocation or dissolution upon the secretary of state's records.
  3. (c) At any time after the date of revocation or dissolution, such charter, or certificate or domestication may be reinstated upon the filing of all reports and the payment of all fees, taxes, penalty and interest due the state; provided, that the title has not been taken by another taxpayer.
Backlinks (2)
History (1)
  • Acts 1999, ch. 406, § 4.
§ 67-4-2117. Collection — Dissolved entities.
  1. The commissioner is empowered and it is the commissioner's duty to collect the tax, together with penalty and interest, levied under this part from any officer, stockholder, partner, member, principal, or employee of a taxpayer that has dissolved or has been liquidated, at a time such taxpayer has refused or failed to pay the franchise tax levied under this part, and such individual has received property belonging to the taxpayer, but such collection shall be limited to the value of the property received.
History (1)
  • Acts 1999, ch. 406, § 4.
§ 67-4-2118. Apportionment — Financial institutions.
  1. (a) Notwithstanding any other provision of this part, a financial institution that is not filing a combined report and that has business activity both in and outside Tennessee, and that is paying tax based on its net worth, shall apportion its tax base to Tennessee by multiplying net worth by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subsection (c), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subsection (c). “Receipts” includes all gross income derived from transactions and activities in the regular course of business, except that the receipts from the disposition of assets, such as securities and money market transactions, are included to the extent of the net taxable gain on such transactions.
  2. (b) A unitary group shall have net worth apportioned to Tennessee based on the apportioned net worth of the unitary group, as determined under subsection (a), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group.
  3. (c) “Receipts,” as used in this section, shall be attributed to Tennessee as follows:
    1. (1) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee;
    2. (2)
      1. (A) Interest income and other receipts from assets, in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property;
      2. (B) “Value” means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted;
    3. (3) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, by telephone or by other electronic means;
    4. (4) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (c)(4), “applied for” means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, “loan” does not include demand deposit accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions;
    5. (5) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in either subdivision (c)(2), (c)(3) or (c)(4);
    6. (6) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed;
    7. (7) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this section;
    8. (8) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and the receipt is not otherwise attributed under subdivision (c)(7). For purposes of this subdivision (c)(8), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state;
    9. (9) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2111(i)(1)(C);
    10. (10) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased;
    11. (11) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (c). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and
    12. (12) Any other receipts of gross income not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (c) shall be attributed to Tennessee in the same proportion that aggregate receipts are attributed to Tennessee under subdivisions (c)(1)-(11).
  4. (d)
    1. (1) The financial institution affiliated group shall prepare a pro forma consolidated balance sheet, in accordance with generally accepted accounting principles, in which transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
    2. (2)
      1. (A) For tax years beginning on or after January 1, 2008, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twenty percent (20%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet.
      2. (B) For tax years beginning on or after January 1, 2009, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twelve and one-half percent (12.5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet.
      3. (C) For tax years beginning on or after January 1, 2010, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and five percent (5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet.
      4. (D) For tax years beginning on or after January 1, 2011, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1).
    3. (3) Each member of the group shall apportion its net worth to Tennessee by multiplying the net worth of the entire financial institution affiliated group, as computed under subdivision (d)(2), by a fraction, the numerator of which is the total gross receipts of the member attributable to Tennessee during the tax period, and the denominator of which is the aggregate gross receipts of all members of the group during the tax period. For purposes of this subdivision (d)(3), receipts shall be determined as follows:
      1. (A) Dividends and receipts resulting from transactions between members of the group shall be excluded from both the numerator and denominator;
      2. (B) If the member is a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with subsection (c);
      3. (C) If a member is not a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with § 67-4-2111(h)-(j); and
      4. (D) The denominator shall consist of the total gross receipts of all members of the group during the tax period, and shall be determined by adding the total gross receipts derived from the activities enumerated in subdivisions (c)(1)-(11) by the group's financial institution members, and the total gross receipts of the group's nonfinancial institution members, as determined in accordance with § 67-4-2111(g)(1) and (4) during the tax period.
    4. (4) The unitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a combined return. As such, the unitary group shall pay franchise tax on its combined apportioned equity. The nonunitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a separate entity basis. As such, the nonunitary members shall pay franchise tax on the apportioned net worth, as calculated on a consolidated basis.
Backlinks (1)
History (6)
  • Acts 1999, ch. 406, § 4
  • 2004, ch. 932, § 10
  • 2005, ch. 499, § 83
  • 2008, ch. 1106, § 53
  • 2015, ch. 514, §§ 18-20
  • 2024, ch. 950, § 15.
§ 67-4-2119. Minimum franchise tax.
  1. The minimum franchise tax payable under this part shall be one hundred dollars ($100). A taxable entity that is incorporated, domesticated, qualified or otherwise registered to do business in Tennessee but is, or has become, inactive in Tennessee, 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 franchise tax, which shall be no less than the one-hundred-dollar minimum, levied by this part for each tax year.
Backlinks (1)
History (2)
  • Acts 1999, ch. 406, § 4
  • 2000, ch. 982, § 38.
§ 67-4-2120. Distribution of tax revenues.
  1. All taxes collected under this part shall be distributed to the general fund.
History (1)
  • Acts 1999, ch. 406, § 4.
§ 67-4-2121. Tax imposed on manufacturer.
  1. (a) Notwithstanding any provision of this part to the contrary, the tax imposed by this part on any manufacturer shall be levied only on the first two billion dollars ($2,000,000,000) of apportioned net worth.
  2. (b) For purposes of this section, “manufacturer” means any person whose principal business is fabricating or processing tangible personal property for resale and ultimate use or consumption off the premises of the person engaging in such fabricating or processing.
History (2)
  • Acts 2005, ch. 499, § 61
  • 2024, ch. 950, § 16.
§ 67-4-2122. Refund of levied taxes — Funds to be used for refunds — Procedure for refund approvals — Report of refund claims.
  1. (a) If a taxpayer paid the tax levied by this part as a result of the minimum tax base in § 67-4-2108, as that section existed prior to the effective date of this act, then the commissioner shall issue a refund equal to the amount of tax actually paid minus the amount of tax otherwise due pursuant to this part without regard to § 67-4-2108, as that section existed prior to such date; provided, however, that the refund is subject to the following provisions:
    1. (1) The tax subject to refund must have been reported to the department on a return filed on or after January 1, 2021, covering a tax period that ended on or after March 31, 2020, and the refund claim must be filed pursuant to this section between May 15, 2024, and November 30, 2024;
    2. (2) The claim for refund, including information necessary to determine the proper amount due, must be filed on a form prescribed by the commissioner exclusively for the purpose of seeking a refund pursuant to this section and must not include a claim for refund on any other basis. The form must include a statement that upon acceptance of a refund issued pursuant to this section, the taxpayer knowingly waives any claim by the taxpayer or the right to file suit alleging that the franchise tax in this part, or any provision of this part, including § 67-4-2108 as that section existed prior to the effective date of this act, is unconstitutional by failing the internal consistency test. A claim on any other basis must be filed separately under § 67-1-1802. The commissioner is also authorized to refund, in accordance with this section, a claim timely filed under § 67-1-1802 and filed prior to January 1, 2024, that alleges that the franchise tax in this part, or any provision of this part, is unconstitutional by failing the internal consistency test. The commissioner is not authorized to make a refund under this section unless a claim is filed;
    3. (3) As used in this section, “tax actually paid” includes any credits applied on the return. Credits must be reinstated but not paid as a refund;
    4. (4) This section does not prevent the commissioner from auditing the refund claim, appropriately adjusting or denying the claim, or auditing the amount of tax otherwise due under this part within the applicable statute of limitations;
    5. (5) A refund due under this section must first be used to offset any outstanding tax liabilities and is subject to the report of debts requirements in § 67-1-1802(a)(1)(B);
    6. (6) A denial of a refund claimed under this section is subject to the remedies provided in §§ 67-1-1802(b) and 67-1-1802(c);
    7. (7) Interest at the rate established by 26 U.S.C. § 6621(a)(1) for a large corporate overpayment in the amount of the federal short-term rate plus five-tenths (0.5) of a percentage point must be added to the amount refunded under this section beginning ninety (90) days from the date the commissioner receives the refund claim and proper proof to verify that the refund or credit is due and payable;
    8. (8) Notwithstanding § 67-1-1702 or another law to the contrary, for purposes of administering the franchise tax refund, the department shall publish on the department's website, only for the period from May 31, 2025, through June 30, 2025:
      1. (A) The name of each taxpayer issued a refund and the applicable range corresponding to the total amount refunded to the taxpayer. The applicable ranges are: seven hundred fifty dollars ($750) or less; more than seven hundred fifty dollars ($750) but less than or equal to ten thousand dollars ($10,000); and more than ten thousand dollars ($10,000); or
      2. (B) If a taxpayer has filed a refund claim but has not been issued a refund by May 31, 2025, the name of the taxpayer as required by this subdivision (a)(8) with the range omitted and designated as “pending”; and
    9. (9) Attorneys' fees must not be added to the amount of refund due.
  2. (b) All refunds paid pursuant to this section must be paid from an appropriately designated fund established by the commissioner of finance and administration. Except as otherwise provided in this subsection (b), any unexpended balance at the end of a fiscal year shall not revert to the general fund but must be carried forward to be expended in the subsequent fiscal year. On or before June 30, 2025, the commissioner of finance and administration and the commissioner of revenue must jointly certify to the chairs of the finance, ways and means committees of the senate and the house of representatives the amount claimed pursuant to subsection (a). On July 1, 2025, any funds in excess of the certified amount shall revert to the general fund. The fund specified in this subsection (b) expires upon final payment of all refunds due pursuant to this section, and any remaining balance shall revert to the general fund. It is the legislative intent that the beginning balance in the fund must be from funds appropriated by the general assembly in the general appropriations act for the purposes of this section.
  3. (c) The office of the attorney general and reporter must review and approve the department's process for reviewing refund claims under this section before the department is authorized to review and approve such claims.
  4. (d) On or before December 31, 2024, the department of revenue shall report in writing to the chairs of the finance, ways and means committees of the senate and the house of representatives, and to the directors of the office of legislative budget analysis, the total number of refund claims filed and the total amount paid pursuant to this section.
Backlinks (2)
History (1)
  • Acts 2024, ch. 950, § 3.
§ 67-4-2123. Annual election of minimum tax base pursuant to § 67-4-2108 — Requirements for election.
  1. If the application of this part to a tax period results in a lower tax base than the minimum tax base under § 67-4-2108, as that section existed prior to May 10, 2024, and as it applied to tax periods ending before December 31, 2023, then a taxpayer may annually elect to use the minimum tax base in § 67-4-2108 as it applied to tax periods ending before December 31, 2023; provided, however, the election must result in a higher tax levied for the tax period under § 67-4-2106, and the taxpayer waives any claim that the minimum tax base under § 67-4-2108 is unconstitutional by failing the internal consistency test.
History (1)
  • Acts 2024, ch. 950, § 17.
Part 22 Coin-operated Amusement Machine Tax Act
§ 67-4-2201. Short title.
  1. This part shall be known and may be cited as the “Coin-operated Amusement Machine Tax Act.”
History (1)
  • Acts 2002, ch. 856, § 2b.
§ 67-4-2202. Tax imposed — Supervision and collection — Rules and regulations.
  1. (a) The state tax imposed by this part shall be the exclusive tax levied on bona fide coin-operated amusement machines. No local government may impose any additional tax, fee, or assessment of any kind on such machines. Nothing contained in this part shall affect any person's liability for state or local sales or use tax that is imposed pursuant to chapter 6 of this title for the privilege of selling or using such devices. The receipts from bona fide coin-operated amusement machines shall not be the basis of tax under chapter 6 of this title.
  2. (b) The supervision and collection of the taxes imposed by this part are under the direction of the department of revenue. The commissioner of revenue is authorized to promulgate rules and regulations to effectuate the purposes of this part. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
  3. (c) The taxes imposed by this part shall be administered and collected on an annual basis for the privilege of owning bona fide coin-operated amusement machines used commercially for public play for tax years beginning on July 1 and ending on the following June 30.
History (1)
  • Acts 2002, ch. 856, § 2b.
§ 67-4-2203. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Applicant” or “licensee” means an owner as defined in this section, who is licensed to do business in this state, including an owner's officers, directors, shareholders, individuals, members of any association or other entity not specified, and, when applicable in context, the business entity itself;
    2. (2) “Bona fide coin-operated amusement machine” means any coin or token operated game, machine or device that, as a result of depositing a coin, token or other object, automatically or by or through some mechanical or electronic operation involving skill, chance, or a combination thereof, affords music, amusement, or entertainment of some character without vending any merchandise. “Bona fide coin-operated amusement machine” does not include any bona fide merchandise vending machines as defined in rules promulgated by the department of revenue, or any device operated for the purpose of unlawful gambling;
    3. (3) “Business owner or business operator” means an owner or operator of a business where one (1) or more bona fide coin-operated amusement machines are available for commercial use and play by the public;
    4. (4) “Commissioner” means the commissioner of revenue;
    5. (5) “Machine tax” means the annual per machine tax that every owner of a bona fide coin-operated amusement machine in commercial use must pay;
    6. (6) “Master license” means the certificate that every owner of a bona fide coin-operated amusement machine must obtain and display in the business owner's or business operator's place of business where the machine is located for commercial use by the public for play, in order to operate the machine in this state legally;
    7. (7) “Owner” means any person, individual, firm, company, association, or other business entity owning any bona fide coin-operated amusement machine. “Owner” does not include an individual who owns a bona fide coin-operated amusement machine solely for personal use and who does not make the machine available for play by others at a charge, either directly or indirectly; and
    8. (8) “Sticker” means the decal issued for each bona fide coin-operated amusement machine to show proof of payment of the machine tax.
History (1)
  • Acts 2002, ch. 856, § 2b.
§ 67-4-2204. Levy of annual license tax — Issuance of certificate — Six-month license — Display of license — Refund or credit — Duplicate license — Nontransferable — Application for renewal — Denial — Penalties.
  1. (a) There is levied an annual license tax on the privilege of owning bona fide coin-operated amusement machines for commercial use by the public. Prior to exercising such privilege, every owner who offers others the opportunity to play for a charge, whether directly or indirectly, any bona fide coin-operated amusement machine shall pay to the commissioner the annual license tax as follows:
    1. (1) Level one license. An owner owning fifty (50) or fewer machines shall pay a master license tax of five hundred dollars ($500). If after an owner obtains a level one license for a tax year, the owner acquires additional machines, so that the owner owns more than fifty (50) but no more than two hundred (200) machines, such owner shall pay an additional master license tax of five hundred dollars ($500);
    2. (2) Level two license. An owner owning more than fifty (50) machines but no more than two hundred (200) machines shall pay a master license tax of one thousand dollars ($1000). If after an owner obtains a level two license for a tax year, the owner acquires additional machines, so that the owner owns more than two hundred (200) machines, such owner shall pay an additional master license tax of one thousand dollars ($1,000); and
    3. (3) Level three license. An owner owning more than two hundred (200) machines shall pay a master license tax of two thousand dollars ($2,000).
  2. (b) Upon payment of the annual master license tax, the commissioner shall issue the appropriate master license certificate to the owner. Each master license certificate shall contain the name and address of the owner.
  3. (c) An owner may obtain a six-month master license on or after January 1 of a tax year by paying a tax of two hundred fifty dollars ($250) for a level one license; five hundred dollars ($500) for a level two license; and one thousand dollars ($1,000) for a level three license. Such license shall expire on June 30, of the tax year.
  4. (d) A copy of an owner's master license certificate shall be prominently displayed at each location where the owner has a bona fide coin-operated amusement machine available for commercial use and for play by the public.
  5. (e) No refund or credit of the master license tax levied in this section may be made to any owner who ceases to own bona fide coin-operated amusement machines prior to the end of any tax year.
  6. (f) The commissioner may issue a duplicate original master license certificate, if an original master license certificate has been lost, stolen, or destroyed. If an original master license certificate is lost, stolen, or destroyed, a sworn, written statement must be submitted explaining the circumstances by which the master license was lost, stolen, or destroyed, and a replacement fee of one hundred dollars ($100) paid, before a duplicate original master license certificate may be issued.
  7. (g) A master license is effective for a single business entity.
  8. (h) A master license is nontransferable.
  9. (i) Application for renewal of a master license must be made to the commissioner by June 1 of each year. An owner, who properly completes a renewal application, timely files the renewal application with the commissioner, and remits all taxes and fees with the renewal application, may continue to offer bona fide coin-operated amusement machines for play by the public after June 30 if the renewal license and new stickers have not been issued; provided, however, that the owner displays with the expired master license in each location, where bona fide coin-operated amusement machines are offered for play by the public, a copy of a receipt showing that the application for the renewal license was timely filed.
  10. (j) An original application for a master license, an application for a six-month license, or a renewal application must be accompanied by the appropriate taxes and fees.
  11. (k) The commissioner shall give written notice to an applicant or licensee of any denial of an application or renewal application or revocation of a master license.
  12. (l) The commissioner shall not renew a master license and shall suspend or revoke a master license, if the commissioner finds that the applicant or licensee owes to the state any taxes, fees, delinquent taxes or fees, or penalties resulting from delinquent taxes, or that an owner has failed to display the master license at any location where a bona fide coin-operated amusement machine is available for commercial use and for play by the public, or that an owner has made a machine available for commercial use and for play by the public without a valid sticker attached.
  13. (m) Acceptance and display of a master license certificate issued under this part constitutes consent by the owner and by the business owner or business operator of the business where a bona fide coin-operated amusement machine is available for commercial use and for play by the public that the commissioner and the commissioner's agents may freely enter the business premises during normal business hours for the purpose of ensuring compliance with this part.
  14. (n) An owner shall attach identification to each bona fide coin-operated amusement machine showing the owner's name, address, and phone number.
History (1)
  • Acts 2002, ch. 856, § 2b.
§ 67-4-2205. Machine tax — Sticker.
  1. (a) For the privilege of owning a bona fide coin-operated amusement machine offered for commercial use and for play by the public, there is additionally levied a machine tax of ten dollars ($10.00) for each bona fide coin-operated amusement machine. The owner shall pay the machine tax to the commissioner prior to making a machine available for commercial use and for play by the public. If, after payment of the master license tax and machine taxes, an owner obtains additional bona fide coin-operated amusement machines, the owner shall pay to the commissioner a ten-dollar machine tax for each machine, prior to making a machine available for commercial use and for play by the public. No refund or credit of a machine tax levied in this section shall be made.
  2. (b) The commissioner shall issue a sticker to evidence the payment of the machine tax. The owner shall securely affix a sticker to each machine available for commercial use and for play by the public. Owners may transfer stickers from one (1) machine to another and from location to location so long as all machines in commercial use available for play by the public have a sticker and the owner uses the stickers only for machines that the owner owns.
    Backlinks (1)
History (1)
  • Acts 2002, ch. 856, § 2b.
§ 67-4-2206. Penalties.
  1. (a) A penalty of fifty dollars ($50.00) shall be assessed by the commissioner for every machine that is available for commercial use and for play by the public without a sticker or that is located in a business where the master license of the owner is not displayed.
  2. (b)
    1. (1) An owner who knowingly makes a bona fide coin-operated amusement machine available for commercial use and for play by the public without a current master license or without a sticker affixed to the machine commits a Class A misdemeanor.
    2. (2) A business owner or business operator who knowingly permits bona fide coin-operated amusement machines to be operated by the public on the business' premises without display of a copy of the owner's master license or without a sticker affixed to each machine commits a Class A misdemeanor.
  3. (c) Intentional removal of a machine tax sticker from a bona fide coin-operated amusement machine by the owner, except as permitted in § 67-4-2205(b), or by a person other than the owner is a Class C misdemeanor.
  4. (d) Any bona fide coin-operated amusement machine available for commercial use and play by the public in a location that does not have a copy of the owner's master license displayed or any bona fide coin-operated amusement machine available for commercial use and play by the public without a valid sticker affixed is subject to confiscation as contraband. Prior to confiscation, the owner shall have thirty (30) days in which to remedy any noncompliance with this part, including payment of any penalties.
History (1)
  • Acts 2002, ch. 856, § 2b.
§ 67-4-2207. Construction.
  1. Nothing in this part, including payment of the taxes or fees provided for in this part, shall be construed to make legal an otherwise illegal device, or to authorize or permit gambling on any device whatsoever.
History (1)
  • Acts 2002, ch. 856, § 2b.
Part 23 Special User Privilege Tax Law [Repealed]
§ 67-4-2301 — 67-4-2307. [Repealed]
History (11)
  • Acts 2003, ch. 357, § 75
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 129
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2013, ch. 480, § 1
  • 2015, ch. 273, §  3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1
  • repealed by Acts 2021, ch. 285, §  1, effective April 30, 2021.
Part 24 Cable and Satellite Television Service [Repealed]
§ 67-4-2401 — 67-4-2410. [Repealed]
History (11)
  • Acts 2003, ch. 357, § 76
  • 2004, ch. 959, §§ 43, 44, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 130
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2013, ch. 480, § 1
  • 2015, ch. 273, §  3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1
  • repealed by Acts 2021, ch. 285, §  1, effective April 30, 2021.
Part 25 Dyed Diesel Fuel [Repealed]
§ 67-4-2501 — 67-4-2508. [Repealed]
History (11)
  • Acts 2003, ch. 357, § 77
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 131
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2013, ch. 480, § 1
  • 2015, ch. 273, §  3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1
  • repealed by Acts 2021, ch. 285, §  1, effective April 30, 2021.
Part 26 Tobacco Settlement Funds
§ 67-4-2601. Part definitions.
  1. As used in this part:
    1. (1) “Brand family” means all styles of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers or descriptors, including, but not limited to, “menthol,” “lights,” “kings,” and “100s,” and includes any brand name, alone or in conjunction with any other word, trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product identification identical or similar to, or identifiable with, a previously known brand of cigarettes;
    2. (2) “Cigarette” has the same meaning as in § 47-31-102;
    3. (3) “Cigarette rolling machine operator” has the same meaning as in § 67-4-1001;
    4. (4) “Commissioner” means the commissioner of revenue;
    5. (5) “Delivery sale” has the same meaning as in § 67-4-1001;
    6. (6) “Importer” means any person in the United States to whom cigarettes manufactured in a foreign country are shipped or consigned or any person who removes cigarettes for sale or consumption in the United States from a customs bonded warehouse;
    7. (7) “Licensed agent” means a person who is authorized to affix tax stamps to packages or other containers of cigarettes under § 67-4-1006 or any person who is required to pay the tobacco tax imposed pursuant to § 67-4-1002;
    8. (8) “Master settlement agreement” has the same meaning as in § 47-31-102;
    9. (9) “Nonparticipating manufacturer” means any tobacco product manufacturer that is not a participating manufacturer;
    10. (10) “Participating manufacturer” has the meaning given that term in Section II(jj) of the master settlement agreement and all amendments thereto;
    11. (11) “Qualified escrow fund” has the same meaning as that term is defined in § 47-31-102;
    12. (12) “Retail dealer” has the same meaning as in § 67-4-1001;
    13. (13) “Tobacco distributor” has the same meaning as in § 67-4-1001;
    14. (14) “Tobacco product manufacturer” has the same meaning as that term is defined in § 47-31-102;
    15. (15) “Units sold” has the same meaning as that term is defined in § 47-31-102; and
    16. (16) “Wholesale dealer and jobber” has the same meaning as in § 67-4-1001.
History (2)
  • Acts 2003, ch. 294, § 2
  • 2014, ch. 749, § 7.
§ 67-4-2602. Certification by tobacco product manufacturer as to compliance — Directory listing certified manufacturers and brand families — Unlawful practices.
  1. (a)
    1. (1) Every tobacco product manufacturer whose cigarettes are sold in this state, whether directly or through a distributor, retailer or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the commissioner a certification to the commissioner and attorney general and reporter, no later than the thirtieth day of April each year, certifying under penalty of perjury that, as of the date of such certification, such tobacco product manufacturer either is a participating manufacturer, or is in full compliance with § 47-31-103.
    2. (2) A participating manufacturer shall include in its certification a list of its brand families. The participating manufacturer shall update such list thirty (30) calendar days prior to any addition to or modification of its brand families by executing and delivering a supplemental certification to the attorney general and reporter and commissioner.
    3. (3)
      1. (A) A nonparticipating manufacturer shall include in its certification:
        1. (i) A list of all of its brand families and the number of units sold for each brand family that were sold in the state during the preceding calendar year;
        2. (ii) A list of all of its brand families that have been sold in the state at any time during the current calendar year;
        3. (iii) Indication, by an asterisk, of any brand family sold in the state during the preceding calendar year that is no longer being sold in the state as of the date of such certification; and
        4. (iv) Identification by name and address of any other manufacturer of such brand families in the preceding or current calendar year.
      2. (B) The nonparticipating manufacturer shall update such list thirty (30) calendar days prior to any addition to or modification of its brand families by executing and delivering a supplemental certification to the attorney general and reporter and commissioner.
    4. (4) In the case of a nonparticipating manufacturer, such certification shall further certify:
      1. (A) That such nonparticipating manufacturer is registered to do business in the state or has appointed a resident agent for service of process and provided notice thereof as required by § 67-4-2603;
      2. (B) That such nonparticipating manufacturer:
        1. (i) Has established and continues to maintain a qualified escrow fund; and
        2. (ii) Has executed a qualified escrow agreement that has been reviewed and approved by the attorney general and reporter and that governs the qualified escrow fund;
      3. (C) That such nonparticipating manufacturer is in full compliance with title 47, chapter 31 and this part, and any regulations promulgated pursuant thereto;
      4. (D)
        1. (i) The name, address and telephone number of the financial institution where the nonparticipating manufacturer has established such qualified escrow fund required pursuant to § 47-31-103 and all regulations promulgated thereto;
        2. (ii) The account number of such qualified escrow fund and any sub-account number for Tennessee;
        3. (iii) The amount such nonparticipating manufacturer placed in such fund for cigarettes sold in the state during the preceding calendar year, the date and amount of each such deposit, and such evidence or verification as may be deemed necessary by the attorney general and reporter to confirm the foregoing; and
        4. (iv) The amount and date of any withdrawal or transfer of funds the nonparticipating manufacturer made at any time from such fund or from any other qualified escrow fund into which it ever made escrow payments pursuant to § 47-31-103 and all regulations promulgated thereto; and
      5. (E) That the nonparticipating manufacturer has certified in writing on a form approved by the commissioner that it consents to be sued in the circuit or chancery courts in the state for purposes of enforcing this statute or for an action to enforce § 47-31-103.
    5. (5) In the case of a nonparticipating manufacturer located outside of the United States, the certification shall further certify that the nonparticipating manufacturer has provided a declaration from each of its importers into the United States of any of its brand families to be sold in this state. The declaration shall be on a form prescribed by the attorney general and reporter and shall state the following:
      1. (A) The importer accepts joint and several liability with the nonparticipating manufacturer for all obligations to place funds into a qualified escrow fund, for payment of all civil penalties and for payment of all reasonable costs and expenses of investigation and prosecution, including attorneys' fees, authorized in accordance with the Tennessee Tobacco Manufacturers' Escrow Fund Act of 1999, compiled in title 47, chapter 31;
      2. (B) The importer consents to personal jurisdiction in Tennessee for the purpose of claims by the state for any obligation to place funds into a qualified escrow fund, for payment of any civil penalties and for payment of any reasonable costs and expenses of investigation or prosecution, including attorneys' fees, authorized in accordance with the Tennessee Tobacco Manufacturers' Escrow Fund Act of 1999; and
      3. (C) The importer has appointed a registered agent for service of process in this state according to the same requirements as established in this part for any nonresident or foreign nonparticipating manufacturer that has not registered to do business in this state as a foreign corporation or business entity.
    6. (6) A tobacco product manufacturer may not include a brand family in its certification unless:
      1. (A) In the case of a participating manufacturer, said participating manufacturer affirms that the brand family is deemed to be its cigarettes for purposes of calculating its payments under the master settlement agreement for the relevant year, in the volume and shares determined pursuant to the master settlement agreement; and
      2. (B) In the case of a nonparticipating manufacturer, said nonparticipating manufacturer affirms that the brand family is deemed to be its cigarettes for purposes of § 47-31-103. Nothing in this section shall be construed as limiting or otherwise affecting the state's right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the master settlement agreement or for purposes of § 47-31-103.
    7. (7) Tobacco product manufacturers shall maintain all invoices and documentation of sales and other such information relied upon for such certification for a period of five (5) years, unless otherwise required by law to maintain them for a greater period of time.
    Backlinks (1)
  2. (b) Not later than May 31, 2003, the commissioner shall develop and make available for public inspection a directory listing all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of subsection (a) and all brand families that are listed in such certifications (the “directory”), except that:
    1. (1) The commissioner shall not include or retain in such directory the name or brand families of any nonparticipating manufacturer that has failed to provide the required certification or whose certification the commissioner determines is not in compliance with subdivisions (a)(2) and (3), unless the commissioner has determined that such violation has been cured to the satisfaction of the commissioner;
    2. (2) Neither a tobacco product manufacturer nor brand family shall be included or retained in the directory, if the commissioner concludes, in the case of a nonparticipating manufacturer, that:
      1. (A) Any escrow payment required pursuant to § 47-31-103 for any period for any brand family, whether or not listed by such nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the attorney general and reporter;
      2. (B) Any outstanding final judgment, including interest on the judgment, for a violation of § 47-31-103 has not been fully satisfied for such brand family or such manufacturer; or
      3. (C) Such nonparticipating manufacturer has underpaid escrow obligations in this state or any state unless such underpayment is cured within sixty (60) days of entry of a final order establishing the required escrow payment amount; however, such cure shall have no such effect if such underpayment is the result of fraud or deceit;
    3. (3) A nonparticipating tobacco product manufacturer may be removed from the state's directory of approved tobacco product manufacturers, if the commissioner determines such action is in the best interest of the state and the operation of the directory, if the tobacco product manufacturer or any of its affiliates, officers, directors, or owners has:
      1. (A) Been removed from any state's directory of approved tobacco product manufacturers based on any acts or omissions that would, if done in this state, be grounds for removal from the directory, except that if the basis for removal is a good faith dispute regarding the amount of escrow required for units sold in other states, the nonparticipating manufacturer shall have the opportunity to cure the underpayment of escrow within sixty (60) days of entry of a final order establishing the required escrow payment amount;
      2. (B) Plead guilty or nolo contendere to or has been found guilty of a crime relating to the reporting, distribution, sale or taxation of cigarettes or tobacco products; or
      3. (C) Failed to cooperate with any request for information from the commissioner made pursuant to § 67-4-2604(d) to the satisfaction of the commissioner;
    4. (4) The commissioner shall update the directory as necessary in order to correct mistakes and to add or remove a tobacco product manufacturer or brand family to keep the directory in conformity with the requirements of this part; and
    5. (5) Every licensed agent shall provide and update as necessary an electronic mail address to the commissioner for the purpose of receiving any notifications as may be required by this part.
    Backlinks (1)
  3. (c) It shall be unlawful for any person to:
    1. (1) Affix a stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family not included in the directory; or
    2. (2) Sell, offer, or possess for sale, in this state, or import for personal consumption in this state, cigarettes of a tobacco product manufacturer or brand family not included in the directory.
    Backlinks (5)
  4. (d)
    1. (1) A nonparticipating manufacturer shall not be included or retained in the directory of approved tobacco product manufacturers until it has posted a bond in accordance with this subsection (d), in addition to any other requirements for inclusion in the directory contained in this part.
    2. (2) The bond required by this subsection (d) shall be posted by corporate surety located within the United States. The amount of the bond shall be the greater of one hundred thousand dollars ($100,000) or the greatest required escrow amount due from the nonparticipating manufacturer or its predecessor for any of the twelve (12) preceding calendar quarters. The bond shall be posted at least ten (10) days in advance of each calendar quarter.
    3. (3) The bond shall be written in favor of the state of Tennessee and shall be conditioned on the performance by the nonparticipating manufacturer of all of its escrow deposit and other financial obligations under this part and § 47-31-103.
    4. (4) If the nonparticipating manufacturer has failed to make or have made on its behalf escrow deposits equal to the full amount owed for a quarter within fifteen (15) days following the due date for the quarter, the state may execute upon the bond in the amount equal to any remaining amount of escrow due. The amount collected may be deposited into the state treasury and shall reduce the amount of escrow due from that nonparticipating manufacturer by the dollar amount collected.
    5. (5) If the state obtains a judgment against the nonparticipating manufacturer for the nonparticipating manufacturer's failure to make an escrow deposit, the state may also execute on the bond to recover the amount of civil penalties and attorneys' fees obtained in that judgment. Funds collected from such bonds shall be counted first toward the amount of escrow due but not deposited into escrow by the nonparticipating manufacturer.
  5. (e) For each nonparticipating manufacturer located outside of the United States, each importer into the United States of any such nonparticipating manufacturer's brand families that are sold in this state shall bear joint and several liability with such nonparticipating manufacturer for all obligations to place funds into a qualified escrow fund, for payment of all civil penalties and for payment of all reasonable costs and expenses of investigation and prosecution, including attorneys' fees, authorized in accordance with the Tennessee Tobacco Manufacturers' Escrow Fund Act of 1999.
  6. (f) Service of process on the importer's appointed registered agent for service of process may be served in any manner authorized by law and shall constitute legal and valid service of process on the importer. The importer is subject to the same requirements in this part as nonparticipating manufacturers regarding notice of termination of the agency appointment. Any importer that has not appointed and engaged an agent as required in this section shall be deemed to have appointed the secretary of state as such agent and may be proceeded against in courts of this state by service of process on the secretary of state.
Backlinks (5)
History (4)
  • Acts 2003, ch. 294, § 3
  • 2009, ch. 381, § 1
  • 2012, ch. 669, §§ 1-5
  • 2014, ch. 749, § 10.
§ 67-4-2603. Registered agent necessary for listing of nonresident or nonparticipating manufacturer.
  1. (a) Any nonresident or foreign nonparticipating manufacturer that has not registered to do business in the state as a foreign corporation or business entity shall, as a condition precedent to having its brand families included or retained in the directory, appoint and continually engage without interruption the services of an agent in this state to act as an agent for the service of process on whom all process, and any action or proceeding against it concerning or arising out of the enforcement of this part and title 47, chapter 31, may be served in any manner authorized by law. Such service shall constitute legal and valid service of process on the nonparticipating manufacturer. The nonparticipating manufacturer shall provide the name, address, phone number and proof of the appointment and availability of such agent to and to the satisfaction of the commissioner and attorney general and reporter.
  2. (b) The nonparticipating manufacturer shall provide notice to the commissioner and attorney general and reporter thirty (30) calendar days prior to termination of the authority of an agent and shall further provide proof to the satisfaction of the attorney general and reporter of the appointment of a new agent no less than five (5) calendar days prior to the termination of an existing agent appointment. In the event an agent terminates an agency appointment, the nonparticipating manufacturer shall notify the commissioner and attorney general and reporter of said termination within five (5) calendar days and shall include proof to the satisfaction of the attorney general and reporter of the appointment of a new agent.
  3. (c) Any nonparticipating manufacturer whose cigarettes are sold in this state, who has not appointed and engaged an agent as required in this section, shall be deemed to have appointed the secretary of state as such agent and may be proceeded against in courts of this state by service of process upon the secretary of state; provided, however, that the appointment of the secretary of state as such agent shall not satisfy the condition precedent for having the brand families of the nonparticipating manufacturer included or retained in the directory.
Backlinks (1)
History (1)
  • Acts 2003, ch. 294, § 4.
§ 67-4-2604. Submission of information.
  1. (a) Not later than fifteen (15) calendar days after the end of each calendar month, each licensed agent shall submit information that the commissioner requires to facilitate compliance with this part, including, but not limited to, a list by brand family of the total number of cigarettes, or, in the case of roll your own, the equivalent stick count, for which the licensed agent affixed stamps during the previous calendar month or otherwise paid the tax due for the cigarettes. The report shall further include all cigarettes received and sold during the prior month, even if cigarettes were previously stamped by another licensed agent. The licensed agent shall maintain, and make available to the commissioner, all invoices and documentation of sales of all cigarettes and any other information relied upon in reporting to the commissioner for a period of seven (7) years.
    Backlinks (4)
  2. (b) The commissioner is authorized to disclose to the attorney general and reporter any information received under this part and requested by the attorney general and reporter for purposes of determining compliance with and enforcing this part. The commissioner and attorney general and reporter shall share with each other the information received under this part, and may share such information with other federal, state or local agencies only for purposes of enforcement of this part, title 47, chapter 31, or corresponding laws of other states. Additionally, the commissioner and attorney general and reporter may share information pursuant to § 67-4-1028(a). The attorney general and reporter is authorized to disclose to a cigarette or roll your own manufacturer any information that has been provided by a licensed agent as required by this section regarding the purchases from that manufacturer on which tax stamps have been applied or the tax otherwise paid, so long as the recipient agrees to execute a document satisfactory to the attorney general and reporter that protects the confidential nature of such information.
  3. (c) The attorney general and reporter may require at any time from the nonparticipating manufacturer proof, from the financial institution in which such manufacturer has established a qualified escrow fund for the purpose of compliance with § 47-31-103, of the amount of money in such fund, exclusive of interest, the amount and date of each deposit to such fund, and the amount and date of each withdrawal from such fund.
  4. (d) In addition to the information required to be submitted pursuant to § 67-4-2602 or this section, the commissioner may require a licensed agent or tobacco product manufacturer to submit any additional information including, but not limited to, samples of the packaging or labeling of each brand family, as is necessary to enable the commissioner to determine whether a tobacco product manufacturer is in compliance with this part.
    Backlinks (1)
  5. (e) The commissioner may, in addition to any other law, impose and collect a monetary penalty not to exceed one hundred dollars ($100) per day for the failure of a distributor or wholesaler to timely or accurately comply with this section. Any monetary penalty collected pursuant to this section shall be deposited in the general fund. The submission in a report of a false statement under this chapter by a licensed agent is an offense punishable as a Class E felony.
  6. (f) The commissioner may, in accordance with the procedure set forth in § 67-4-1016, and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, suspend or revoke the license of an agent for knowingly filing false licensed distributor reports.
History (5)
  • Acts 2003, ch. 294, § 5
  • 2007, ch. 602, § 179
  • 2009, ch. 340, §§ 1, 2
  • 2010, ch. 707, § 1
  • 2014, ch. 749, §§ 8, 11.
§ 67-4-2605. Additional penalties.
  1. (a) In addition to or in lieu of any other civil or criminal remedy provided by law, if the commissioner has reasonable grounds to believe that a licensed agent or any other person has violated § 67-4-2602(c) or any regulation adopted pursuant to this part, the commissioner may revoke or suspend the license of the licensed agent in the manner provided by § 67-4-1016 and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Each stamp affixed and each sale or offer to sell cigarettes in violation of § 67-4-2602(c) shall constitute a separate violation. For each violation of this part, the commissioner may also impose a civil penalty in an amount not to exceed the greater of five hundred percent (500%) of the retail value of the cigarettes or five thousand dollars ($5,000), if the commissioner has reasonable grounds to believe that a violation of § 67-4-2602(c) or any regulations adopted pursuant thereto has occurred. Such penalty shall be imposed in the manner provided by § 67-4-1015 and in accordance with the Uniform Administrative Procedures Act. In the event of a conflict between § 67-4-1015 or § 67-4-1016 and the Uniform Administrative Procedures Act, the Uniform Administrative Procedures Act shall govern.
  2. (b) Any cigarettes that have been sold, offered for sale, or possessed for sale, in this state, or imported for personal consumption in this state, in violation of § 67-4-2602(c) shall be deemed contraband under § 67-4-1020 and such cigarettes shall be subject to seizure and forfeiture as provided in such section, and all such cigarettes so seized and forfeited shall be destroyed and not resold.
  3. (c) The attorney general and reporter, on behalf of the commissioner, may seek an injunction to restrain a threatened or actual violation of § 67-4-2602(c) or § 67-4-2604(a) or (d) by a licensed agent and to compel the licensed agent to comply with such subsections. In any action brought pursuant to this section, the state shall be entitled to recover the costs of investigation, costs of the action and reasonable attorney fees.
  4. (d) It shall be unlawful for a person to:
    1. (1) Sell or distribute cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of § 67-4-2602(c), or
    2. (2) Acquire, hold, own, possess, transport, import, or cause to be imported cigarettes, that the person knows or should know are intended for distribution or sale in the state in violation of § 67-4-2602(c).
  5. (e) A violation of this section shall be a Class B misdemeanor.
History (1)
  • Acts 2003, ch. 294, § 6.
§ 67-4-2606. Determination to list or to remove from list — Compliance — Promulgation of regulations — Enforcement — Violation — Conflicts of laws.
  1. (a) If the commissioner elects not to include a brand family or tobacco product manufacturer on the directory, or if the commissioner removes a brand family or tobacco product manufacturer from the directory, that action is subject to review in the manner provided by § 67-1-105 and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In the event of a conflict between § 67-1-105 and the Uniform Administrative Procedures Act, the Uniform Administrative Procedures Act shall govern. At least fifteen (15) days prior to the removal of a tobacco product manufacturer or brand family from the directory, the commissioner shall post notification of the removal in the directory and transmit notification of the removal to any person who has provided an electronic mail address to the commissioner for the purpose of receiving electronic mail notifications of directory updates. Any person interested in receiving the notifications shall be allowed to register on the official website maintained by the department of revenue.
  2. (b) No person shall be issued a license or granted a renewal of a license to act as a licensed agent unless such person has certified in writing, under penalty of perjury, that such person will comply fully with this part.
  3. (c) For the year 2003, the first report of licensed agents required by § 67-4-2604(a) shall be due July 6, 2003; the certifications by a tobacco product manufacturer described in § 67-4-2602(a) shall be due July 21, 2003; and the directory described in § 67-4-2602(b) shall be published or made available by September 4, 2003.
  4. (d) The commissioner may promulgate regulations necessary to effect the purposes of this part.
  5. (e) In any action brought by the state to enforce this part, the state shall be entitled to recover the costs of investigation, expert witness fees, costs of the action and reasonable attorney fees.
  6. (f) If a court determines that a person has violated this part, the court shall order and enjoin any profits, gain, gross receipts or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the state's general fund. Unless otherwise expressly provided the remedies or penalties provided by this part are cumulative to each other and to the remedies or penalties available under all other laws of this state.
  7. (g) If a court of competent jurisdiction finds that this part and title 47, chapter 31 conflict and cannot be harmonized, then such provisions of title 47, chapter 31 shall control. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this part causes title 47, chapter 31 to no longer constitute a qualifying or model statute, as those terms are defined in the master settlement agreement, then that portion of this part shall not be valid. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this part is for any reason held to be invalid, unlawful or unconstitutional, such decision shall not affect the validity of the remaining portions of this part or any part of it.
History (2)
  • Acts 2003, ch. 294, § 7
  • 2009, ch. 343, § 1.
§ 67-4-2607. Admissibility into evidence of licensed cigarette distributor reports filed with the department of revenue.
  1. Notwithstanding any other law or rule of evidence to the contrary, a copy of a licensed distributor report filed with the commissioner pursuant to § 67-4-2604(a) shall be admitted into evidence for the purpose of proving the total number of cigarettes by brand family, or, in case of roll your own, the equivalent stick count, for which the licensed agent affixed Tennessee tax stamps during the previous calendar month or otherwise paid the tax due for cigarettes, as a nonhearsay document in all judicial and administrative proceedings.
History (1)
  • Acts 2011, ch. 264, § 1.
§ 67-4-2608. Inspections, audits and investigations.
  1. (a) For the purpose of determining compliance with § 47-31-103 and this part, the department is authorized to conduct inspections, audits, and investigations of:
    1. (1) Nonparticipating manufacturers and their importers;
    2. (2) Licensed agents;
    3. (3) Tobacco distributors;
    4. (4) Wholesale dealers and jobbers;
    5. (5) Retail dealers;
    6. (6) Persons or entities engaged in delivery sales; and
    7. (7) Cigarette rolling machine operators.
  2. (b) The commissioner, or a designee, and the attorney general and reporter, or a designee, are authorized to administer all necessary oaths, issue subpoenas, compel the attendance of witnesses, take depositions within and without the state, and compel the production of pertinent books, payrolls, accounts, papers, records, documents, and testimony relevant to such investigation.
  3. (c) Every nonparticipating manufacturer, nonparticipating manufacturer importer, licensed agent, tobacco distributor, wholesaler dealer and jobber, retailer dealer, person engaged in delivery sales, and cigarette rolling machine operator shall permit the commissioner or the commissioner's authorized agent or representative to inspect at any time all tobacco products, invoices, books, papers and memoranda, including the general books, both operating and proprietary ledgers, and other records, as may be deemed necessary by the commissioner in ascertaining compliance with § 47-31-103 and this part. Every cigarette rolling machine operator shall permit the commissioner or the commissioner's authorized agent to inspect the operator's cigarette rolling machine at any time.
  4. (d) No nonparticipating manufacturer, nonparticipating manufacturer importer, licensed agent, tobacco distributor, wholesaler dealer and jobber, retailer dealer, person engaged in delivery sales, or cigarette rolling machine operator shall be permitted to claim any part of the premises whereon the nonparticipating manufacturer, nonparticipating manufacturer importer, licensed agent, tobacco distributor, wholesale dealer and jobber, retailer dealer, person engaged in delivery sales, or cigarette rolling machine operator is engaged in business, to be exempt from inspection, as being the dwelling or home of the nonparticipating manufacturer, nonparticipating manufacturer importer, licensed agent, tobacco distributor, wholesale dealer and jobber, retailer dealer, person engaged in delivery sales, or cigarette rolling machine operator. An application for license under part 10 of this chapter shall be an express waiver of such claim.
  5. (e) All nonparticipating manufacturers, nonparticipating manufacturer importers, licensed agents, tobacco distributors, wholesaler dealer and jobbers, retailer dealers, persons engaged in delivery sales, or cigarette rolling machine operators failing to permit the examination of tobacco products, invoices, books and other memoranda, including the general books, both operating and proprietary ledgers, and other records, or interfering with the orderly inspection or examination thereof, or failing to file such reports as may be required by the commissioner, commit a Class A misdemeanor.
History (1)
  • Acts 2014, ch. 749, § 9.
§ 67-4-2609. Authority to execute search warrants for purposes of enforcing part.
  1. Any duly authorized representative, agent or employee of the department who has been designated by the commissioner to enforce this part is authorized and empowered to execute search warrants and do all acts incident to the search warrant, in the same manner as search warrants may be levied by sheriffs and other peace officers.
History (1)
  • Acts 2014, ch. 749, § 9.
§ 67-4-2610. Persons enforcing part have power and authority of police officers — Concurrent authority of highway patrol — Authority to be armed.
  1. (a) Inspectors, agents, representatives or officers appointed by the commissioner shall be cloaked with and have the duty, power and authority as police officers to enforce this part.
  2. (b) The highway patrol shall likewise have concurrent authority to assist in the enforcement of this part.
  3. (c) Any duly authorized representative or employee of the department who has been specifically designated by the commissioner to enforce this part, is authorized and empowered to go armed, or carry a pistol while on active duty engaged in enforcing this part.
  4. (d) Nothing in this part shall be construed to limit the authority of the department of revenue or the attorney general's office as otherwise provided by law.
History (1)
  • Acts 2014, ch. 749, § 9.
Part 27 Aviation Fuel [Repealed]
§ 67-4-2701 — 67-4-2712. [Repealed]
History (10)
  • Acts 2004, ch. 959, § 56
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 132
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2013, ch. 480, § 1
  • 2015, ch. 273, §  3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1
  • repealed by Acts 2021, ch. 285, §  1, effective April 30, 2021.
Part 28 Taxation of Unauthorized Substances
§ 67-4-2801. Purpose.
  1. The purpose of this part is to levy a tax on every merchant of unauthorized substances to generate revenue for state and local law enforcement agencies for use by those agencies to investigate, combat, prevent and reduce drug crimes, and for the general fund. Such tax shall be measured by the quantity of unauthorized substances sold, bartered, traded, or distributed to another for consideration or the quantity of unauthorized substances possessed with intent to sell, barter, trade, or distribute to another for consideration. This is not a criminal statute. It is a civil taxing measure contributing to the general revenue fund and a civil remedial measure designed to mitigate against the enormous costs of law enforcement related to drug control for state and local government. Nothing in this part may in any manner provide immunity from criminal prosecution for a person who possesses an illegal substance.
History (2)
  • Acts 2004, ch. 803, § 2
  • 2010, ch. 962, § 1.
§ 67-4-2802. Part definitions.
  1. As used in this part, unless the context clearly requires otherwise:
    1. (1) “Commissioner” means the commissioner of revenue;
    2. (2) “Controlled substance” means a controlled substance as defined in § 39-17-402, and not included in “low-street-value drugs”;
    3. (3) “Controlled substance analogue” means a controlled substance analogue as defined in § 39-17-454;
    4. (4) “Illicit alcoholic beverage” means an alcoholic beverage, as defined in § 57-3-101, not authorized by the Tennessee alcoholic beverage commission. “Illicit alcoholic beverage” includes, but is not limited to, the products known as “bootleg liquor,” “moonshine,” “non-tax-paid liquor,” and “white liquor”;
    5. (5) “Local law enforcement agency” means a municipal police department, a metropolitan police department, or a sheriff's office;
    6. (6) “Low-street-value drug” means any of the following controlled substances:
      1. (A) An anabolic steroid as defined in § 39-17-410(f);
      2. (B) A depressant described in § 39-17-412(c);
      3. (C) A hallucinogenic substance described in § 39-17-406(d);
      4. (D) A stimulant described in § 39-17-412(f); or
      5. (E) A controlled substance described in § 39-17-414;
    7. (7) “Marijuana” means all parts of the plant of the genus cannabis, whether growing or not; the seeds of this plant; the resin extracted from any part of this plant; and every compound, salt, derivative, mixture, or preparation of this plant, its seeds, or its resin. “Marijuana” does not include hemp, as defined in § 43-27-101;
    8. (8) “Merchant” means a merchant or peddler within the scope of Constitution of Tennessee, Article II, § 28 and includes any person who is actually engaged in the act of selling, bartering, trading, or distributing to another for consideration any unauthorized substances regardless of the quantity under § 67-4-2803(a), and such person shall be subject to the tax imposed under this part. Any person who actually or constructively possesses, at a particular time, any unauthorized substances in a quantity sufficient to create a principal tax liability of at least ten thousand dollars ($10,000) under § 67-4-2803(a) is presumed to be possessing the unauthorized substances for the purpose of sale, barter, trade, or distribution to another for consideration and is presumed to be a merchant within the meaning of this subdivision (8); such presumption may be rebutted only by clear and convincing evidence that the person did not sell, barter, trade, or distribute for consideration such substances or intend to do so; except, however, that if the person sells, barters, trades, or distributes to another for consideration any unauthorized substances in any quantity under § 67-4-2803(a), the presumption shall not apply and the person shall be considered a merchant and subject to the tax imposed by this part regardless of the quantity involved in the transaction;
    9. (9) “Person” means person as defined in § 39-17-402;
    10. (10) “State law enforcement agency” means any state agency, force, department, or unit responsible for enforcing criminal laws; and
    11. (11) “Unauthorized substance” means a controlled substance, a controlled substance analogue, a low-street-value drug or an illicit alcoholic beverage.
History (7)
  • Acts 2004, ch. 803, § 3
  • 2006, ch. 1019, § 50
  • 2010, ch. 962, § 1
  • 2011, ch. 103, § 1
  • 2012, ch. 848, §§ 86, 87
  • 2014, ch. 916, § 7
  • 2019, ch. 87, § 11.
§ 67-4-2803. Excise tax rates — Methods of measuring quantities.
  1. (a) A tax, as follows, is levied on and payable by any merchant of unauthorized substances:
    1. (1) Forty cents (40¢) for each gram, or fraction thereof, of harvested marijuana stems and stalks that have been separated from and are not mixed with any other parts of the marijuana plant;
    2. (2) Three dollars and fifty cents ($3.50) for each gram, or fraction thereof, of marijuana, other than separated stems and stalks taxed under subdivision (a)(1) or plants with foliation taxed under subdivision (a)(3);
    3. (3) Three hundred fifty dollars ($350) per plant, whether growing or detached from the soil, on each marijuana plant with foliation;
    4. (4) Fifty dollars ($50.00) for each gram, or fraction thereof, of cocaine;
    5. (5) Two hundred dollars ($200) for each gram, or fraction thereof, of any other controlled substance, controlled substance analogue or low-street-value drug that is sold by weight;
    6. (6) Fifty dollars ($50.00) for each ten (10) dosage units, or fraction thereof, of any low-street-value drug that is not sold by weight;
    7. (7) Two hundred dollars ($200) for each ten (10) dosage units, or fraction thereof, of any other controlled substance or controlled substance analogue that is not sold by weight;
    8. (8) Thirty-one dollars and seventy cents ($31.70) for each gallon, or fraction thereof, of illicit alcoholic beverages sold by the drink; or
    9. (9) Twelve dollars and eighty cents ($12.80) for each gallon, or fraction thereof, of illicit alcoholic beverages not sold by the drink.
    Backlinks (1)
  2. (b) A quantity of marijuana or other unauthorized substance is measured by the weight of the substance whether pure, impure or dilute, or by the number of dosage units in the merchant's possession when the substance is not sold by weight. A quantity of an unauthorized substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
  3. (c) For purposes of this part, a person constructively possesses an unauthorized substance when the person has:
    1. (1) Knowledge of the unauthorized substance; and
    2. (2) The ability and intention to exercise control over the unauthorized substance.
Backlinks (1)
History (4)
  • Acts 2004, ch. 803, § 4
  • 2006, ch. 1019, §§ 51, 52
  • 2010, ch. 962, § 1
  • 2012, ch. 848, §§ 88, 89.
§ 67-4-2804. Exemptions.
  1. (a) The tax levied in this part does not apply to an unauthorized substance in the possession of a merchant who is authorized by law to possess the substance. This exemption applies only during the time the merchant's possession of the unauthorized substance is authorized by law.
  2. (b) The tax levied in this part does not apply to the following marijuana:
    1. (1) Harvested mature marijuana stalks when separated from and not mixed with any other parts of the marijuana plant;
    2. (2) Fiber or any other product of marijuana stalks described in subdivision (b)(1), except resin extracted from the stalks;
    3. (3) Marijuana seeds that have been sterilized and are incapable of germination; or
    4. (4) Roots of the marijuana plant.
History (2)
  • Acts 2004, ch. 803, § 5
  • 2010, ch. 962, § 1.
§ 67-4-2805. Issuance of stamps to indicate payment of tax — Report of seizure of unauthorized substances.
  1. (a) The commissioner shall issue stamps to affix to unauthorized substances to indicate payment of the tax by the merchant required by this part. A merchant shall report the taxes payable under this part at the time and on the form prescribed by the commissioner. The merchant is not required to give the merchant's name, address, social security number, or any other identifying information on the form. Upon payment of the tax, the commissioner shall issue stamps in an amount equal to the amount of the tax paid. Taxes may be paid and stamps may be issued either by mail or in person.
  2. (b) Every local law enforcement agency and every state law enforcement agency must report to the department of revenue within forty-eight (48) hours after seizing an unauthorized substance from or making an arrest of a merchant under this part when the appropriate stamps as required by this part have not been affixed to the unauthorized substances. The report shall be in the manner prescribed by the commissioner and shall include the time and place of the arrest or seizure, the amount, location, and kind of substance, the identification of any merchant and such merchant's social security number, and any other information prescribed by the commissioner.
History (3)
  • Acts 2004, ch. 803, § 6
  • 2006, ch. 1019, § 53
  • 2010, ch. 962, § 1.
§ 67-4-2806. Payment of tax.
  1. (a) The tax imposed by this part pursuant to § 67-4-2803, evidenced by a stamp issued by the commissioner and permanently affixed to unauthorized substances pursuant to subsection (b), is payable by a merchant within forty-eight (48) hours after the merchant acquires actual or constructive possession of unauthorized substance on which a stamp has not been affixed, exclusive of Saturdays, Sundays, and legal holidays of this state, in which case the tax is payable on the next working day. If the tax is not paid within forty-eight (48) hours, the tax shall become delinquent and shall accrue penalty and interest pursuant to chapter 1, part 8 of this title.
  2. (b) Upon payment of the tax and receipt of the tax stamps, the merchant shall permanently affix the appropriate stamps to the unauthorized substance.
  3. (c) Once the tax due levied pursuant to this part has been paid, no additional tax is due and payable by a merchant in accordance with this part who may subsequently acquire or handle the unauthorized substance on which an appropriate stamp has been affixed.
  4. (d) If a merchant is found in possession of a substance taxable under this part on which an appropriate stamp has not been affixed, it shall be presumed the merchant has been in possession of such substance for longer than forty-eight (48) hours, exclusive of Saturdays, Sundays, and legal holidays of this state.
History (2)
  • Acts 2004, ch. 803, § 7
  • 2010, ch. 962, § 1.
§ 67-4-2807. Assessment of tax, penalties and interest — Notice — Collection.
  1. Notwithstanding any other law, an assessment against a merchant under this part on which a stamp has not been affixed as required by this part shall be made as provided in this section. The commissioner shall assess the tax, applicable penalty, and interest based on any information brought to the attention of the commissioner, or the commissioner's duly authorized assistants, that a merchant is liable for unpaid tax pursuant to this part. The tax shall be assessed in the same manner as any other tax assessment, except when this part specifies otherwise. The commissioner shall notify the merchant in writing of the amount of the tax, penalty, and interest due. The notice of assessment shall be either mailed to the merchant at the merchant's last known address or served on the merchant in person. If the merchant does not pay the tax, penalty, and interest upon receipt of the notice of assessment, the commissioner shall collect the assessment, including penalty and interest, pursuant to the procedures set forth in chapter 1, parts 14 and 18, of this title. The merchant may seek review of the assessment as provided in chapter 1, part 18, of this title. Section 67-1-1802 is applicable to the tax levied by this part.
History (3)
  • Acts 2004, ch. 803, § 8
  • 2007, ch. 602, § 28
  • 2010, ch. 962, § 1.
§ 67-4-2808. Confidentiality — Immunity — Statistics.
  1. (a) Notwithstanding any other law, information obtained as a result of a merchant's efforts to comply with this part is confidential and, unless obtained independently from any acts undertaken by a merchant to comply with the tax levied by this part, such acts, including the taxpayer's maintenance of a suit to determine liability under the tax levied by this part, may not be disclosed by the commissioner or used in a criminal prosecution other than a prosecution for a violation of this part.
  2. (b) Chapter 1, part 17, of this title, including the criminal penalties specified therein, shall apply to the tax levied under this part, except that no information shall be disclosed pursuant to chapter 1, part 17, of this title unless that information was obtained independently from any acts undertaken by a merchant to comply with the tax levied by this part, such acts including the taxpayer's maintenance of a suit to determine liability under the tax levied by this part.
  3. (c) This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of merchants or the contents of particular returns or reports.
History (3)
  • Acts 2004, ch. 803, § 9
  • 2007, ch. 602, § 29
  • 2010, ch. 962, § 1.
§ 67-4-2809. Unauthorized substances tax account — Remittance of tax once unencumbered — Application of proceeds of tax.
  1. (a) The commissioner shall credit the proceeds of the tax levied by this part to a special nonreverting account to be called the state unauthorized substances tax account, until the tax proceeds are unencumbered. The commissioner shall remit the unencumbered tax proceeds as provided in this section on a quarterly or more frequent basis.
  2. (b)
    1. (1) Tax proceeds are unencumbered when:
      1. (A) The tax has been paid and the collection process completed; and
      2. (B)
        1. (i) The taxpayer has no current right to file a refund claim, and the paid tax is not the subject of any pending lawsuit for the recovery of that tax; or
        2. (ii) The time for the taxpayer to file suit pursuant to § 67-1-1802(c) has expired.
    2. (2)
      1. (A) The commissioner shall first apply the unencumbered tax proceeds to the costs of storing and disposing of the assets seized in payment of the assessment under this part and then to the costs incurred by the commissioner due to implementation and enforcement of this part, which costs shall be added to and become part of the assessment.
      2. (B)
        1. (i) From the remaining proceeds, the commissioner shall remit seventy-five percent (75%) of the unencumbered tax proceeds that were collected by assessment to the state or local law enforcement agency that conducted the investigation of a merchant that led to the assessment. Such proceeds are to be used by the agency solely for the purpose of investigating, combating, preventing, and reducing drug crimes.
        2. (ii) If more than one (1) state or local law enforcement agency conducted the investigation, then the commissioner shall determine the equitable share for each agency based on the contribution each agency made to the investigation.
        3. (iii) The commissioner's determination of the equitable share for each agency shall be final and shall not be subject to review in an administrative or judicial proceeding.
      3. (C) The commissioner shall credit the remaining unencumbered tax proceeds to the general fund.
  3. (c) Notwithstanding any other provision of this section, in the event the tax levied by this part is voluntarily paid to the department of revenue, and not as a result of an investigation or arrest by a state or local law enforcement agency, such voluntarily paid tax shall be considered unencumbered upon payment, and the commissioner shall credit the entire tax proceeds to the general fund.
History (3)
  • Acts 2004, ch. 803, § 10
  • 2005, ch. 499, § 18
  • 2010, ch. 962, § 1.
§ 67-4-2810. Construction.
  1. This part shall not be construed to confer any immunity from criminal prosecution or conviction for a violation of title 39, chapter 17, part 4, upon any person who voluntarily pays the tax imposed by this part or who otherwise complies with this part.
History (2)
  • Acts 2004, ch. 803, § 11
  • 2010, ch. 962, § 1.
§ 67-4-2811. Rules and regulations.
  1. The commissioner shall have the authority to promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement, administer and enforce this part.
History (2)
  • Acts 2004, ch. 803, § 12
  • 2010, ch. 962, § 1.
Part 29 County Powers Relief Act
§ 67-4-2901. Short title.
  1. This part shall be known and may be cited as the “County Powers Relief Act.”
History (1)
  • Acts 2006, ch. 953, § 1.
§ 67-4-2902. Purpose of part.
  1. The purpose of this part is to authorize counties to levy a privilege tax on persons and entities engaged in the development of property, in order to provide a county with an additional source of funding to defray the cost of providing school facilities to meet the needs of the citizens of the county as a result of population growth.
History (2)
  • Acts 2006, ch. 953, § 1
  • 2024, ch. 990, § 1.
§ 67-4-2903. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Building” means any structure built for the support, shelter, or enclosure of persons, chattels, or movable property of any kind, including a mobile home. “Building” does not mean any structures used primarily for agricultural purposes;
    2. (2) “Building permit” means a permit for development issued in the county, whether by a county, metropolitan or municipal government;
    3. (3) “Capital improvement program” means a proposed schedule of future capital projects, listed in order of construction priority, together with cost estimates and the anticipated means of financing each project requiring the expenditure of public funds, over and above the annual local government operating expenses, for the purchase, construction, or replacement of physical assets;
    4. (4) “Commercial” means any property used for business activities, except any state-designated industrial megasite, as defined in § 64-6-102;
    5. (5) “County” means a county or metropolitan government;
    6. (6) “County school facilities privilege tax” means a tax on new development as defined in this part;
    7. (7) “Development” means the construction, building, erection, or improvement to land by providing a new building or structure that provides heated and cooled floor area for residential or commercial use;
    8. (8) “Dwelling unit” means a room, or rooms connected together, constituting a separate, independent housekeeping establishment for owner occupancy, rental, or lease on a daily, weekly, monthly, or longer basis, physically separated from any other room, rooms, or dwelling units that may be in the same building, and containing independent cooking and sleeping facilities;
    9. (9) “Floor area” for development means the total of the gross horizontal area of all floors, including basements, cellars, or attics, that is heated or air-conditioned space;
    10. (10) “Governing body” means the county legislative body or metropolitan council;
    11. (11) “Person” means any individual, firm, partnership, limited liability company, joint-venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit;
    12. (12) “Place of worship” means that portion of a building, owned by a religious institution that has property tax exempt status, that is used for worship services and related functions; provided, however, that a place of worship does not include buildings and portions of buildings that are used for purposes other than worship and related functions or that are intended to be leased, rented or used by persons who do not have a tax exempt status;
    13. (13) “Public building” means a building owned by the state of Tennessee or any agency or political subdivision of the state of Tennessee, including, but not limited to, counties, metropolitan governments, municipalities, school districts or special districts, or the federal government or any agency of the federal government; and
    14. (14) “Residential” means the development of any property for a dwelling unit or units.
History (2)
  • Acts 2006, ch. 953, § 1
  • 2024, ch. 990, §§ 2, 3.
§ 67-4-2904. New development declared to be a locally taxable privilege.
  1. (a) Engaging in the act of development within a county, except as excluded by this part, is declared to be a privilege upon which a county, by resolution or ordinance of its governing body, may levy a tax, subject to the conditions and limitations contained in this part.
  2. (b) The resolution or ordinance levying the tax must be adopted by a two-thirds (⅔) vote of the entire membership of the county legislative body at two (2) consecutive, regularly scheduled meetings. The resolution or ordinance adopted at the first meeting must be identical to the resolution or ordinance voted upon at the second meeting.
Backlinks (1)
History (2)
  • Acts 2006, ch. 953, § 1
  • 2024, ch. 990, § 4.
§ 67-4-2905. Adoption of administrative guidelines, procedures, regulations and forms.
  1. After levying the tax, the county governing body shall, by resolution or ordinance adopted by majority vote, adopt administrative guidelines, procedures, regulations and forms necessary to properly implement, administer and enforce this part.
History (1)
  • Acts 2006, ch. 953, § 1.
§ 67-4-2906. Application.
  1. This part shall not apply to development of:
    1. (1) Public buildings;
    2. (2) Places of worship;
    3. (3) Barns or other outbuildings used for agricultural purposes;
    4. (4) Replacement buildings or structures for previously existing buildings and structures destroyed by fire or other disaster;
    5. (5) A building or structure owned by a nonprofit corporation that is a qualified 501(c)(3) corporation under the federal Internal Revenue Code (26 U.S.C. § 501(c)(3)); or
    6. (6) A building or structure located in any census tract of the county that has been designated by the federal government as being eligible for federal incentives because of blight, economic distress or urban renewal, upon a proper finding by the county legislative body that the exemption is necessary to stimulate growth in these economically challenged areas.
History (1)
  • Acts 2006, ch. 953, § 1.
§ 67-4-2907. Criteria for levying tax.
  1. (a) A governing body shall not levy a tax pursuant to this part, unless the county experienced:
    1. (1) A twenty percent (20%) or more increase in population from the 2010 federal census to the 2020 federal census, or the county experiences growth of twenty percent (20%) or more between any subsequent federal decennial censuses; or
    2. (2) A nine percent (9%) or more increase in population over the immediately preceding consecutive four-year period, according to a special census conducted pursuant to subsection (c).
  2. (b) Prior to adopting a resolution or ordinance to levy this tax, the governing body shall file a statement with the comptroller of the treasury that provides the population growth for the county that qualifies the county to levy the tax under this part. The comptroller shall verify the accuracy of the statement provided and notify the county whether it meets the requirements of this part.
  3. (c) A county may, at the county's expense, conduct a special census for purposes of qualifying to levy the tax under this part.
  4. (d) To continue to levy this tax, a county must verify qualification with the comptroller every four (4) years, using federal census data estimates, if basing qualification on a nine percent (9%) growth rate under subdivision (a)(2), or at the end of the final year of every ten-year census period, if basing qualification on federal census data under subdivision (a)(1).
Backlinks (2)
History (2)
  • Acts 2006, ch. 953, § 1
  • 2024, ch. 990, § 5.
§ 67-4-2908. Tax based on the floor area of new development.
  1. (a) For the exercise of the privilege of development, a county may levy a tax based on the floor area of new development. A county initially levying a tax under the authority granted by this part may levy the tax at a rate not to exceed one dollar and fifty cents ($1.50) per square foot on residential property and one dollar and fifty cents ($1.50) per square foot on up to one hundred fifty thousand square feet (150,000 sq. ft.) of commercial property.
  2. (b) Whenever a county has levied a tax pursuant to this part or increased the rate of the tax, the county shall not increase the rate of the tax or levy an additional tax on the privilege of development for a period of four (4) years from the effective date of the tax or rate increase. After four (4) years from the date the county initially levies the tax or from the date of the last increase in the rate of the tax, the county legislative body may increase the rate of the tax by a percentage not to exceed ten percent (10%); provided, that the county follows the procedure outlined in § 67-4-2904.
History (2)
  • Acts 2006, ch. 953, § 1
  • 2024, ch. 990, § 6.
§ 67-4-2909. Adoption of capital improvement program required.
  1. A governing body shall not levy a tax pursuant to this part, unless it has adopted a capital improvement program. The adopted capital improvement program may be amended by the governing body.
History (1)
  • Acts 2006, ch. 953, § 1.
§ 67-4-2910. Collection of tax.
  1. (a) Any tax levied pursuant to this part shall be collected in the following manner:
    1. (1) At the time of application for a building permit for development, the municipal or county official issuing the permit shall compute the estimated tax liability for the county school facilities privilege tax, based upon the proposed square footage of the facility to be built and the current rate of the county's school facilities privilege tax. As a condition of receiving the permit, the applicant shall sign a form indicating that the applicant recognizes the liability for the tax. The official shall keep one (1) copy of the form for the official's records and shall provide a copy to the applicant. If the permit is issued by a municipal building official, the official shall also forward a copy of the form within thirty (30) days of the issuance of the building permit to the county official or employee who has been designated by the county legislative body to collect the tax. As an alternative, the county and any municipality within the county may provide by interlocal agreement for the municipal building official to be designated as a collector of the tax and provide for a commission to be paid to the municipality for such services;
    2. (2) [Deleted by 2024 amendment.]
    3. (3) [Deleted by 2024 amendment.]
    4. (4) Once it becomes due, the tax shall be paid to the official or officials designated by the county governing body to collect the tax. At the time of payment, the official shall review the tax liability to determine whether the square footage of the completed building or structure corresponds to the initial estimated square footage in the building permit. The tax shall be computed using the actual square footage of the completed building or structure, but the rate of the tax shall be based upon the rate applicable at the time the permit was issued;
    5. (5) The revenue from the tax shall be paid over to the county trustee within thirty (30) days for deposit, in accordance with § 67-4-2911.
  2. (b) The tax must be paid upon completion of the building or structure, but prior to the issuance of the certificate of occupancy.
History (3)
  • Acts 2006, ch. 953, § 1
  • 2021, ch. 273, § 1
  • 2024, ch. 990, §§ 7, 8.
§ 67-4-2911. Remittance of taxes collected.
  1. The taxes collected pursuant to this part shall be remitted by the collector to the county or metropolitan government trustee, who shall place the tax proceeds in the fund or funds designated by the governing body, but the tax proceeds shall be used exclusively for the purpose of funding capital expenditures for education, including the retirement of bonded indebtedness, the need for which is reasonably related to population growth.
Backlinks (1)
History (1)
  • Acts 2006, ch. 953, § 1.
§ 67-4-2912. Administrative procedure for review of tax decisions — Judicial review.
  1. Any county or metropolitan government levying a tax pursuant to this part shall provide, by resolution or ordinance, a procedure whereby any person aggrieved by the decision of any responsible official in administering this part may obtain review of the official's decision administratively. The result of the administrative decision shall be subject to judicial review in accordance with law.
History (1)
  • Acts 2006, ch. 953, § 1.
§ 67-4-2913. Preemption.
  1. (a) After June 20, 2006, no county shall be authorized to enact an impact fee on development or a local real estate transfer tax by private or public act. In addition, this part shall be the exclusive authority for local governments to adopt any new or additional adequate facilities taxes on development. However, this part shall not be construed to prevent a municipality or county from exercising any authority to levy or collect similar development taxes or impact fees granted by a private act that was in effect prior to June 20, 2006, or from revising the dedicated use and purpose of a tax on new development from public facilities to public school facilities. A county levying a development tax or impact fee by private act on June 20, 2006, shall be prohibited from using the authority provided in this part so long as the private act is in effect.
  2. (b) If, after May 21, 2024, a county that has exercised its right to levy a tax under this part prior to May 21, 2024 and in a new qualifying period does not satisfy the criteria under § 67-4-2907, then:
    1. (1) The county may resume exercising the authority to levy and collect such development taxes under a private act in existence before May 21, 2024, at the rate in effect at the time the county exercised its right to levy a tax under chapter 990 of the Public Acts of 2024; or
    2. (2) The county may resume exercising the authority to levy and collect a privilege tax under this part at the rate the privilege tax was levied by the county under this part on January 1, 2024. A county levying the privilege tax pursuant to this subdivision (b)(2) shall not increase the rate of the tax, unless the county is eligible under § 67-4-2907.
History (2)
  • Acts 2006, ch. 953, § 1
  • 2024, ch. 990, § 9.
Part 30 Local Tourism Development Zone Business Tax Act
§ 67-4-3001. Short title — Legislative intent.
  1. (a) This part shall be known and may be cited as the “Local Tourism Development Zone Business Tax Act.”
  2. (b) The taxes imposed by this part shall be in addition to all other privilege taxes.
  3. (c) It is the legislative intent, within the framework of this part, to recognize that there are limitations on 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 the constitutions and the words of imposition used in this part.
History (1)
  • Acts 2007, 500, § 1.
§ 67-4-3002. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “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;
    2. (2) “Cost,” as applied to any public use facility, has the same meaning as set forth in § 7-88-103;
    3. (3) “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;
    4. (4) “Municipality” means any incorporated city or county located in this state;
    5. (5) “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;
    6. (6) “Public authority” means any agency, authority or instrumentality described by § 7-88-103;
    7. (7) “Qualified public use facility” or “public use facility” means:
      1. (A) A building, complex, center, or facility described by § 7-88-103;
        Backlinks (2)
      2. (B) A full-service hotel with not less than two hundred fifty (250) rooms and related retail, commercial, and parking space that is located in a tourism development zone;
        Backlinks (2)
      3. (C) A mixed-use development, including a full-service hotel with not less than one hundred fifty (150) rooms and including any retail, office, apartment, condominium, or other commercial or residential uses, that is located in a tourism development zone; or
      4. (D) A mixed-use development initially including a sports facility containing ten (10) or more sports fields and including any retail, office, hotel, apartment, condominium, and other commercial or residential uses that is located in a tourism development zone and requiring a capital investment of five hundred million dollars ($500,000,000) or more;
        Backlinks (1)
    8. (8)
      1. (A) “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 the tangible personal property;
      2. (B) “Sale” includes a transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price;
      3. (C) “Sale” includes the furnishing of any of the things or services taxable under this part; and
      4. (D) “Sale” includes sales of tickets, fees or other charges made for admission to amusement or theme parks or other tourist attractions;
    9. (9)
      1. (A) “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 the additional consideration is known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it is 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; provided, further, that the “sales price” shall be reduced by the deductions set forth in § 67-4-711;
      2. (B) “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; and
      3. (C) “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 the payment is retained as profit by the auctioneer, and when the payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller;
    10. (10)
      1. (A) “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; and
      2. (B) “Services” does not include sales of tangible personal property;
    11. (11)
      1. (A) “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; and
      2. (B) “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 into or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; and
    12. (12) “Tourism development zone” means an area described by § 7-88-103.
Backlinks (1)
History (3)
  • Acts 2007, 500, § 1
  • 2020, ch. 752, § 1
  • 2024, ch. 912, § 1.
§ 67-4-3003. Privilege tax on sales in business activity in a qualified public use facility and in tourism development zones — Ordinance authorizing privilege tax — Petition by voters calling for election — Election — Duration of tax.
  1. (a)
    1. (1) The making of sales by engaging in any business or business activity, except for those businesses exempt under § 67-4-712, in a qualified public use facility or in a portion of a qualified public use facility that is designated by an ordinance of the municipality is declared to be a privilege upon which the municipality in which the business or business activity is carried on may levy a privilege tax in an amount not to exceed five percent (5%) of the sales price. A municipality may levy, modify, or repeal a privilege tax levied upon the privilege of engaging in any business or business activity in a qualified public use facility as described in § 67-4-3002(7)(D) by amending the ordinance authorizing the privilege tax. A municipality may designate by ordinance classes of businesses or business activities and levy the privilege tax at different rates for each class, so long as the tax does not exceed five percent (5%) for any class.
    2. (2) The municipality may also by ordinance levy the privilege tax imposed by this part on businesses in the tourism development zone that are outside the qualified public use facility, that are owned or operated either wholly, partly, or jointly by the owner or operator of the qualified public use facility. Only the municipality that obtained certification of the tourism development zone in which the qualified public use facility is located is authorized to levy the tax pursuant to this part.
    Backlinks (1)
  2. (b)
    1. (1) No ordinance authorizing the privilege tax, or an amendment or modification of the privilege tax permitted in subsection (a), shall take effect unless it is approved by a two-thirds (⅔) vote of the municipal legislative body at two (2) consecutive, regularly scheduled meetings, or unless it is approved by a majority of the number of qualified voters of the municipality voting in an election on the question of whether or not the tax should be levied.
    2. (2) If there is a petition of ten percent (10%) of the qualified voters who voted in the municipality in the last gubernatorial election that is filed with the county election commission within thirty (30) days of final approval of the ordinance by the municipal legislative body, then the county election commission shall call an election on the question of whether or not the tax should be levied in accordance with this section.
    3. (3) The municipal legislative body shall direct the county election commission to call the election, to be held in a regular election or in a special election for the purpose of approving or rejecting the tax levy. The municipality shall pay the cost of any special election.
    4. (4) The ballots used in the election shall have printed on them the substance of the ordinance and the voters shall vote for or against its approval.
    5. (5) The votes cast on the question shall be canvassed and the results proclaimed by the county election commission and certified by it to the municipal legislative body.
    6. (6) The qualifications of voters voting on the question shall be the same as those required for participation in general elections.
    7. (7) All laws applicable to general elections shall apply to the determination of the approval or rejection of this tax levy.
  3. (c)
    1. (1) Tax levied pursuant to this part shall continue until the earlier of:
      1. (A)
        1. (i) If such qualified public use facility is described in § 67-4-3002(7)(A), the date on which the cumulative amount, apportioned and distributed to the municipality under §§ 7-88-106(a) and 67-4-3005, equals either the cost of the qualified public use facility, plus any interest on indebtedness of the municipality or public authority related to the cost, or any lesser amount of the cost of the qualified public use facility and interest that may be established in authorizing the levy of the tax; or
        2. (ii) If such qualified public use facility is described in § 67-4-3002(7)(B) or (7)(C), the date on which the cumulative amount, apportioned and distributed to the municipality under § 67-4-3005, equals either the cost of the qualified public use facility, plus any interest on indebtedness of the municipality or public authority related to the cost, or any lesser amount of the cost of the qualified public use facility and interest that may be established in authorizing the levy of the tax;
      2. (B) The date on which the qualified public use facility ceases to be a qualified public use facility; or
      3. (C) Thirty (30) years from the date it is reasonably anticipated that the facility will commence operations as a public use facility, at which time the authority of the municipality to levy the tax shall expire and be terminated.
    2. (2) Tax levied pursuant to this part for a qualified public use facility approved pursuant to § 7-88-106(a)(2) shall continue until the earlier of:
      1. (A) Thirty (30) years from the date it is reasonably anticipated that the facility will commence operations as a public use facility; or
      2. (B) The date the cumulative amount apportioned and distributed to the municipality under § 67-4-3005 with respect to such public use facility equals the indebtedness of the municipality or public authority, plus interest thereon, related to the cost of the public use facility payable from such amount.
History (4)
  • Acts 2007, 500, § 1
  • 2018, ch. 1058, § 2
  • 2020, ch. 752, § 2
  • 2024, ch. 912, §§ 2, 3.
§ 67-4-3004. Tourism development zone business tax.
  1. The tourism development zone business tax is a privilege tax imposed upon persons engaged in various businesses and activities in a portion of a tourism development zone as designated pursuant to § 67-4-3003(a). A dealer may invoice the tax as a separate item and pass it on to the dealer's customers. If the dealer passes the tax on to the customer, the tax shall be added to the gross receipts and be used in determining the tax base for both the business tax and the sales and use tax.
History (1)
  • Acts 2007, 500, § 1.
§ 67-4-3005. Revenues — The qualified public use facility development fund — Deficit and surplus revenue.
  1. (a) The portion of the revenue received by the municipality from the tax, as is designated by the resolution of the municipality enacting the levy of tax set forth in this part, shall be deposited into a fund entitled the “qualified public use facility development fund,” which shall be used:
    1. (1) As set forth in § 7-88-106, if such qualified public use facility is described in § 67-4-3002(7)(A), for the purpose of paying the cost of the qualified public use facility and the costs of bonded indebtedness, principal and interest, including expenses of the bond sale or sales, incurred by the municipality or public authority in financing, acquiring, constructing, leasing, equipping, and renovating a qualified public use facility. The remaining revenue shall be deposited in the general fund of the municipality; or
    2. (2) As set forth in this section, if such qualified public use facility is described in § 67-4-3002(7)(B) or (7)(C), for the purpose of paying the cost of the qualified public use facility and the costs of bonded indebtedness, principal and interest, including expenses of the bond sale or sales, incurred by the municipality or public authority in financing, acquiring, constructing, leasing, equipping, and renovating a qualified public use facility. The remaining revenue shall be deposited in the general fund of the municipality.
  2. (b) If, at the close of any fiscal year, the revenue from the tax is not sufficient to meet the total debt service of the municipality or public authority for bonded indebtedness incurred for the qualified public use facility, the balance, if any, of the debt service not paid by revenue from the tax at the end of the fiscal year shall be accumulated in a separate deficit account that shall bear simple interest at the same rate as the bonds issued by each governmental entity for construction of the qualified public use facilities. If the municipality or public authority has not incurred bonded indebtedness for the qualified public use facility and at the close of any fiscal year, the revenue from the tax is not sufficient to meet the total cost of the qualified public use facility, then the balance, if any, of the cost not paid by revenue from the tax at the end of the fiscal year shall be accumulated in a separate deficit account.
  3. (c) If the revenue from the tax in any fiscal year exceeds the total of the debt service requirements or the total cost of the qualified public use facility for that year, the surplus revenue thus accruing shall be retained by the municipality as a sinking fund for any future debt service requirements or future cost of the qualified public use facility or, alternatively, the surplus may be applied to the reduction of the deficit accounts of the municipality.
Backlinks (3)
History (2)
  • Acts 2007, 500, § 1
  • 2020, ch. 752, § 3.
§ 67-4-3006. Registration with tax collector.
  1. Every person taxable under this part shall, prior to engaging in business, as defined in § 67-4-3002, register with the county clerk, in the case of taxes owed to the county, and with the city official designated as the collector of tax by city charter or ordinance in the case of taxes owed to a municipality.
History (1)
  • Acts 2007, 500, § 1.
§ 67-4-3007. Filing of monthly returns and remittances — Delinquency — Interest and penalties — Rules and regulations.
  1. (a) Monthly returns and remittances shall be filed by each business with the county clerk not later than the twentieth day of each month for the preceding month, on forms prescribed, prepared and furnished by the county.
  2. (b) In all cases, the payment of the tax shall accompany the return and failure to so remit the tax shall cause the tax to become delinquent.
  3. (c) The county clerk in administering and enforcing the surcharge or tax shall additionally have those powers and duties with respect to collecting taxes as provided in this title, including, but not limited to, the collection of interest and penalties on businesses.
  4. (d) The municipal legislative body is authorized to adopt reasonable rules and regulations for the implementation of this part, including the form for such returns.
History (1)
  • Acts 2007, 500, § 1.
§ 67-4-3008. Taxpayer license.
  1. (a) Upon receipt of the minimum tax prescribed by this part, together with penalties and interest prescribed in this part if the payment is delinquent, it shall be the duty of each collector to issue a license to the taxpayer.
  2. (b) It shall be the duty of each taxpayer to exhibit the license received pursuant to subsection (a).
History (1)
  • Acts 2007, 500, § 1.
§ 67-4-3009. Applicability.
  1. This part does not apply to a county having a metropolitan form of government with a population of more than five hundred thousand (500,000), according to the 2000 federal census or a subsequent federal census; provided, that this part applies to a privately owned or operated museum principally dedicated to the preservation of cultural heritage, achievements, and contributions of minority artists, musicians, composers, or other fine arts practitioners located within such county.
History (2)
  • Acts 2007, 500, § 1
  • 2022, ch. 1034, § 1.
Part 31 In Lieu of Tax Payments
§ 67-4-3101. Obligation to make in lieu of tax payments on certain wholesale electric current.
  1. (a) It is the intention of this part to establish an obligation to make in lieu of tax payments to help keep Tennessee and its local governments whole from any diminution in the in lieu of tax payments paid by the Tennessee Valley authority on account of the provision of wholesale electric current to municipal utilities, electric cooperatives and other similar entities for resale within the state by sources other than the Tennessee Valley authority. Accordingly, each person, including each governmental and cooperatively organized person, engaged in the business of making covered wholesale sales of electric current to a municipality, electric cooperative or other similar customer shall, for the privilege of doing such business, remit to the state for state purposes a payment in lieu of tax in an amount to be calculated in accordance with subsection (b).
  2. (b)
    1. (1) For purposes of this section:
      1. (A) “Covered wholesale sales of electric current” means wholesale sales of electric current for resale within any area where the Tennessee Valley authority is the primary source of wholesale power as of June 11, 2010;
      2. (B) “Gross receipts” means the total gross receipts derived from all covered wholesale sales of electric current; and
      3. (C) “Tennessee apportioned gross receipts” means gross receipts multiplied by a ratio obtained by taking the arithmetical average of the following two ratios:
        1. (i) The percentage by which the gross receipts derived from covered wholesale sales of electric current occurring within Tennessee bears to the total gross receipts derived from all covered wholesale sales of electric current; and
        2. (ii) The percentage by which the book value of the power property held in Tennessee by the seller of covered wholesale sales of electric current bears to the book value of all power property held by the seller of covered wholesale sales of electric current. The book value of power property shall include that portion of the investment allocated or estimated to be allocable to power.
    2. (2) The payment in lieu of tax required pursuant to subsection (a) shall equal five percent (5%) of the Tennessee apportioned gross receipts of the person making covered wholesale sales of electric current.
  3. (c) There shall be credited upon the in lieu of tax payments required by this section any taxes paid pursuant to part 3, 4, 20, or 21 of this chapter by or on behalf of the person engaged in a covered wholesale sale of electric current on account of the ownership or operation of electric generation facilities and other property used to generate, transmit or distribute such electric current. There shall be further credited upon the in lieu of tax payments required by this section any ad valorem taxes or payments in lieu of ad valorem taxes paid to the state of Tennessee or local governments within the state by or on behalf of the person engaged in a covered wholesale sale of electric current on account of the ownership or operation of electric generation facilities and other property used to generate, transmit or distribute such electric current.
  4. (d) If the person making covered wholesale sales of electric current does not make the required in lieu of tax payment calculated in accordance with subsections (b) and (c), then each municipality, electric cooperative or other similar customer engaged in making use of covered wholesale sales of electric current shall be responsible for making such payment in lieu of taxes applicable to the customer's use of such power and energy. Only one (1) in lieu of tax payment shall be required for a single sale and use of a covered wholesale sale of electric current.
  5. (e) This section and the required in lieu of tax payments do not apply to any wholesale sale of electric current to or by the Tennessee Valley authority or to any power property held by or attributed to the Tennessee Valley authority.
  6. (f) Any in lieu of tax payment collected pursuant to this section shall be added to the amounts received by the state from payments in lieu of taxes from the Tennessee Valley authority and the combined amount shall then be distributed according to § 67-9-101.
  7. (g) Except as otherwise specifically provided in this section, the in lieu of tax obligations required by this section shall be administered and collected in the same manner as privilege taxes are administered and collected under part 3 of this chapter.
History (1)
  • Acts 2010, ch. 1035, § 3.
Part 32 Local Tax Surcharge
§ 67-4-3201. Part definitions.
  1. As used in this part:
    1. (1) “Implementing agency” means any public transit agency, regional transportation authority created under title 64, chapter 8, or other local government department, agency, or designated entity that is responsible for planning or implementing a transit improvement program;
    2. (2) “Local government” means:
      1. (A) Any county in this state, including any county having a metropolitan or consolidated form of government, having a population in excess of one hundred twelve thousand (112,000), according to the 2010 federal census or any subsequent federal census; or
      2. (B) Any city in this state having a population in excess of one hundred sixty-five thousand (165,000), according to the 2010 federal census or any subsequent federal census;
    3. (3) “Public transit system” means any mass transit system intended for shared passenger transport services to the general public, together with any building, structure, appurtenance, utility, transport support facility, transport vehicles, service vehicles, parking facility, or any other facility, structure, vehicle, or property needed to operate the transportation facility or provide connectivity for the transportation facility to any other non-mass transit system transportation infrastructure, including, but not limited to, interstates, highways, roads, streets, alleys, and sidewalks;
    4. (4) “Surcharge” means a tax, or combination of taxes, levied by a local government pursuant to this part; and
    5. (5) “Transit improvement program” means a program consisting of specified public transit system projects and services.
Backlinks (1)
History (1)
  • Acts 2017, ch. 181, § 27.
§ 67-4-3202. Local option transit surcharge.
  1. (a) A local government is authorized to levy a surcharge, for use in accordance with § 67-4-3205, on the same privileges subject to the taxes listed in subdivisions (a)(1)-(6), if the underlying local tax on such privileges is being collected at the time a transit improvement program is adopted in accordance with § 67-4-3206. Any surcharge shall be a separate charge in addition to the local taxes provided in subdivisions (a)(1)-(6). Notwithstanding, and in addition to, any other law authorizing a local government to impose a local privilege tax, and subject to the maximum rates or amounts provided in subdivision (g)(2), any surcharge levied pursuant to this part shall be limited to the following local privilege taxes:
    1. (1) Local option sales and use tax, pursuant to chapter 6, part 7 of this title;
    2. (2) Business tax, pursuant to the Business Tax Act, compiled in part 7 of this chapter;
    3. (3) Motor vehicle tax, pursuant to title 5, chapter 8, part 1 or an applicable private act;
    4. (4) Local rental car tax, pursuant to part 19 of this chapter;
    5. (5) Tourist accommodation tax, pursuant to title 7, chapter 4, or hotel occupancy tax pursuant to part 14 of this chapter or an applicable private act; and
    6. (6) Residential development tax, pursuant to the County Powers Relief Act, compiled in part 29 of this chapter.
  2. (b) No surcharge under this part shall become effective unless approved by a majority of the number of registered voters of the local government voting in an election on the question of whether the surcharge shall be levied, pursuant to the procedures in this subsection (b). Upon the adoption of a transit improvement program in accordance with § 67-4-3206, and receipt of a certified copy of the adopted ordinance or resolution regarding the program, the county election commission is directed to call an election to be held in accordance with § 2-3-204 to approve or reject the levy of the surcharge. An election to approve or reject the levy of the surcharge may be considered a general election for purposes of § 2-3-204(c), which shall be conducted as follows:
    1. (1) The ballots used in the election shall have printed on them the surcharge and the brief summary of the transit improvement program from the ordinance or resolution adopted pursuant to § 67-4-3206, providing options to vote “FOR” or “AGAINST” the ordinance or resolution levying the surcharge, and the voters shall vote for or against approval of the ordinance or resolution;
      Backlinks (1)
    2. (2) The votes cast shall be canvassed and the results proclaimed and certified by the county election commission to the local government's legislative body;
    3. (3) The qualifications of voters shall be the same as those required for participation in general elections;
    4. (4) All laws applicable to general elections shall apply to the determination of the approval or rejection of the surcharge; and
    5. (5) If the majority of those voting in the election vote for the ordinance or resolution levying the surcharge, the ordinance or resolution shall be deemed to be approved on the date that the county election commission makes its official canvass of the election returns.
  3. (c) No surcharge shall be collected until the first day of a month occurring at least sixty (60) days after the date of approval of the levy of the surcharge; provided, however, that such surcharge shall apply only to tax periods beginning on or after October 1, 2017. The local government shall furnish a certified copy of the adopted ordinance or resolution to the department of revenue within ten (10) days of the approval of the levy of the surcharge.
  4. (d) Any surcharge levied pursuant to this part shall remain in effect until the occurrence of a specific date or condition of termination in the ordinance or resolution adopting the surcharge, or until the surcharge is repealed in the same manner as adopted under this part.
  5. (e) If an election held pursuant to this part results in the rejection of the levy of the surcharge, a subsequent election regarding a surcharge authorized by this part may not be held for at least twelve (12) months from the date of the election.
  6. (f) If a surcharge authorized by this part is ratified by a city that meets the definition of local government in § 67-4-3201 prior to adoption or ratification of a surcharge by the county in which the city or town is located, the effectiveness of the city's surcharge shall be suspended for a period of forty (40) days beyond the date on which it would otherwise be effective. If during this forty-day period, the county legislative body adopts a resolution in accordance with § 67-4-3206, the effectiveness of the surcharge shall be further suspended until the referendum is held in accordance with this section. If the county surcharge is ratified, the city's surcharge shall be null and void. A city that meets the definition of local government in § 67-4-3201 shall not adopt a surcharge pursuant to this part if a county has adopted and is collecting a surcharge pursuant to this part.
  7. (g)
    1. (1) The rate of a surcharge for the local taxes provided in subdivisions (a)(1)-(6) shall not exceed the maximum rate or amount established in subdivision (g)(2) for the applicable surcharge. The maximum rate or amount of a surcharge shall be applied to the aggregate of all transit improvement programs adopted by a local government in accordance with § 67-4-3206 and no surcharge may be levied which shall cause the rate or amount of any surcharge to exceed the maximum rate or amount. A local government shall levy any surcharge up to the maximum rate or amount as provided in subdivision (g)(2) without affecting the available taxing authority and rates or amounts of local taxes listed in subdivisions (a)(1)-(6).
    2. (2)
      1. (A) No local government may levy a surcharge on the local option sales and use tax under subdivision (a)(1) that separately exceeds the maximum rate established for the applicable underlying local option sales and use tax.
      2. (B) No local government may levy any combination of tourist accommodation taxes or fees pursuant to title 7, chapter 4, hotel occupancy taxes pursuant to part 14 of this chapter or an applicable private act, local tourism development zone business taxes pursuant to the Local Tourism Development Zone Business Tax Act, compiled in part 30 of this chapter, state sales and use taxes pursuant to chapter 6 of this title, local option sales and use taxes pursuant to chapter 6, part 7 of this title, or surcharges on any combination of tourist accommodation taxes or fees, hotel occupancy taxes, and local option sales and use taxes that under subdivisions (a)(1) and (a)(5) exceed a combined rate of twenty percent (20%) on hotels, motels, or other tourist accommodations subject to such taxes and surcharges.
      3. (C) No local government may levy a surcharge on a business tax under subdivision (a)(2), a surcharge on a local rental car tax under subdivision (a)(4), or a surcharge on a residential development tax under subdivision (a)(6) that separately exceeds the rate of twenty percent (20%) of the current applicable rate of the business tax, local rental car tax, or residential development tax.
      4. (D) No local government may levy a combination of a motor vehicle tax and a surcharge on a motor vehicle tax that under subdivision (a)(3) exceeds a combined amount of two hundred dollars ($200) on persons subject to such taxes and surcharges.
  8. (h) Nothing in this part requires revenue from a surcharge levied pursuant to this part to be expended or distributed for school purposes.
Backlinks (1)
History (1)
  • Acts 2017, ch. 181, § 27.
§ 67-4-3203. Collection and administration.
  1. (a) Any surcharge shall be levied, collected, and administered in the same manner as the applicable underlying local tax, and shall be subject to the same conditions, limitations, exemptions, credits, returns, and other requirements as are applicable to the underlying local tax.
    Backlinks (1)
  2. (b) The taxpayer shall have the remedies applicable to the underlying local tax.
  3. (c) Any penalty and interest applicable to the underlying local tax shall be applicable to the surcharge.
  4. (d) For any surcharge that the department of revenue administers and collects, the department of revenue shall administer and collect the surcharge as follows:
    1. (1) In collecting and administering a surcharge levied under this part, the commissioner of revenue shall have the same powers as the commissioner has in collecting and administering the underlying tax;
    2. (2) The department shall remit the proceeds of the surcharge to the local government levying the surcharge, less an administrative fee of one and one hundred twenty-five thousandths percent (1.125%) to cover its expenses of administering the collection and remittance of the surcharge; and
    3. (3) Upon any claim of illegal assessment or collection, the taxpayer shall have the remedies provided in § 67-1-1438, and chapter 1, part 18 of this title, it being the intention of the general assembly that the law which applies to the recovery of underlying taxes illegally assessed or collected be conformed to apply to the recovery of surcharges illegally assessed or collected under this part.
  5. (e) Any surcharge on the business tax shall be applied to all persons subject to the tax and shall be calculated based on their applicable rates and classifications pursuant to § 67-4-709.
History (1)
  • Acts 2017, ch. 181, § 27.
§ 67-4-3204. Local option sales and use tax.
  1. (a) Notwithstanding that a local government may levy a surcharge under this chapter on the local option sales and use tax pursuant to chapter 6, part 7 of this title for use in accordance with § 67-4-3205, and in addition to the exemptions authorized by § 67-4-3203(a), the following items shall be exempt from the surcharge:
    1. (1) Water sold to or used by manufacturers and taxed at the state rate of one percent (1%) as authorized in § 67-6-206;
    2. (2) Sales of tangible personal property to a common carrier for use outside the state;
    3. (3) Video programming services as defined in § 67-6-102;
    4. (4) Telecommunication services;
    5. (5) Specified digital products as defined in § 67-6-102; and
    6. (6) Sales of tangible personal property when obtained from any vending machine or device and taxed at the local rate of two and one quarter percent (2.25%) as authorized in § 67-6-702(g).
  2. (b) Any surcharge on the local option sales and use tax shall apply only to the first one thousand six hundred dollars ($1,600) on the sale or use of any single article of personal property as defined in § 67-6-702(d).
  3. (c) Except as otherwise provided in subsection (a), any surcharge on the local option sales and use tax shall apply equally and uniformly to all sales of tangible personal property, services, and other items subject to the tax, and shall be subject to the same exemptions provided in chapter 6 of this title as are applicable to the tax.
History (2)
  • Acts 2017, ch. 181, § 27
  • 2020, ch. 759, § 9.
§ 67-4-3205. Use of surcharge revenue.
  1. (a) Revenue from a surcharge must be used for costs associated with the planning, engineering, development, construction, implementation, administration, management, operation, and maintenance of public transit system projects that are part of a transit improvement program.
  2. (b) Revenue from the surcharge may be:
    1. (1) Combined with other funding generated by local, state, or federal governments from taxes, fees, or fares, and may be used to match state aid funds and federal grants;
    2. (2) Combined with private moneys where allowed by law and used as a public entity's share of costs associated with a public-private initiative entered into pursuant to chapter 975 of the Public Acts of 2016;
    3. (3) Pledged to the payment of bonds issued for the purposes of financing a transit improvement program in accordance with this part; and
    4. (4) Directed or transferred to implementing agencies to carry out a transit improvement program.
  3. (c) If either a transit improvement program or a public transit system project that is part of a transit improvement program becomes unfeasible, impossible, or not financially viable, the revenue from the surcharge for the transit improvement program may be directed to and utilized for a separate transit improvement program or public transit system project that:
    1. (1) Has been approved by:
      1. (A) The local government's legislative body, as required in § 67-4-3206(e)(1); and
      2. (B) A majority of the number of registered voters of the local government voting in an election pursuant to the procedures in § 67-4-3202; and
    2. (2) Otherwise meets the requirements of this part.
  4. (d) The proceeds of any bonds issued for the purposes of financing a transit improvement program shall not be used for operations of any public transit system projects or services that are part of the program, and in no event, shall the credit of any local government be given or loaned to or in aid of any person, company, association, or corporation, within the meaning of the Constitution of Tennessee, Article II, § 29.
Backlinks (2)
History (1)
  • Acts 2017, ch. 181, § 27.
§ 67-4-3206. Adoption of transit improvement programs.
  1. (a) Before a surcharge may be imposed, a transit improvement program shall be developed and adopted in accordance with this section.
  2. (b) A transit improvement program must indicate and describe in reasonable detail the public transit system projects and services to be funded and implemented under the program.
  3. (c) A transit improvement program must state:
    1. (1) The type and rate of a surcharge that will provide funding to the program;
    2. (2) When a surcharge will terminate or the date or conditions upon which the surcharge will be terminated or reduced;
    3. (3) Any other sources of funding for the program;
    4. (4) An estimate of the initial and recurring cost of the program;
    5. (5) The implementing agencies responsible for carrying out the program; and
    6. (6) The geographic location of the public transit system projects.
  4. (d) Prior to adoption of a transit improvement program in accordance with subsection (e), a local government must:
    1. (1) Solicit public comment regarding the transit improvement program;
    2. (2) Make reasonable efforts to notify or coordinate with other local governments surrounding the local government that is considering adopting the transit improvement program; and
    3. (3) Prepare a plan of financing that demonstrates a proposed transit improvement program's financial feasibility that includes the methodology and assumptions used in the financial forecasts and projections supporting the plan's analysis. The plan of financing shall include information on the amount of the transit improvement program's infrastructure to be financed through the issuance of bonds or other debt. The plan of financing's analysis will be based on forecasts and projections for at least a ten-year period after the planned inception date for the program. For the purposes of this section, “financial feasibility” means the transit improvement program is likely to be viable after taking into account the anticipated costs, risks, and liabilities of the transit improvement program, the anticipated revenue generated by the surcharge and transit improvement program, and the local government's financial position. A local government shall obtain a determination or opinion in accordance with the attestation standards from an independent certified public accounting firm that the assumptions in the local government's plan of financing provide a reasonable basis for the local government's forecast or projection given the hypothetical assumptions supporting its analysis that the proposed transit improvement program is financially feasible. Prior to obtaining the determination or opinion, the local government shall obtain approval from the comptroller of the treasury of the selection of the firm and the procedures to be used by the firm in making the determination or opinion. Upon approval of the firm and the procedures to be used by the firm by the comptroller of the treasury, the local government shall submit to the firm a plan of financing for any of the projects or services to be provided as part of the transit improvement program. Other relevant information may be considered in making the determination or opinion required by this subdivision (d)(3). The local government shall publish the completed financial feasibility determination or opinion in its entirety with the plan of financing on its website as soon as practicable after completion.
  5. (e)
    1. (1) A transit improvement program is adopted if it is passed by ordinance or resolution by majority vote of the local government's legislative body.
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    2. (2) A copy of such ordinance or resolution must be provided to the department of revenue prior to the election on the question of whether the surcharge shall be levied.
  6. (f) The ordinance or resolution must contain a brief summary of the transit improvement program for which revenue from the surcharge will be used, written in a clear and coherent manner using words with common everyday meanings, and not exceeding two hundred fifty (250) words in length, and must include the information listed in subsections (b) and (c). The brief summary shall be placed on the ballot pursuant to § 67-4-3202(b)(1).
  7. (g) The financing and operations of a transit improvement program shall be accounted for in a manner approved by the comptroller of the treasury and in compliance with generally accepted accounting principles (GAAP). Nothing in this part limits the authority of the comptroller of the treasury to audit the revenues and expenditures of a transit improvement program, the financing or operations of a transit improvement program, and to charge a reasonable fee for its services.
Backlinks (5)
History (1)
  • Acts 2017, ch. 181, § 27.
Chapter 5 Property Taxes
Part 1 Levy of Tax
§ 67-5-101. Property subject to tax generally.
  1. All property, real and personal, shall be assessed for taxation for state, county and municipal purposes, except such as is declared exempt in part 2 of this chapter, or unless otherwise provided.
History (2)
  • Acts 1973, ch. 226, § 5
  • T.C.A., § 67-401.
§ 67-5-102. Taxation by county.
  1. (a)
    1. (1) For county general purposes, the various counties are authorized to levy an ad valorem tax upon all property subject to this form of taxation.
    2. (2) The amount of such tax shall be fixed by the county legislative body of each county.
    3. (3) “County general purpose levy” means a levy for all county purposes, except roads, bridges, schools, debt service, sinking funds and levies pursuant to special tax laws not included in the above.
  2. (b) Taxes on property for county purposes shall be imposed on the value of the property, as defined and determined in this chapter and as otherwise provided by law.
  3. (c) All existing limitations and restrictions, whether restrictive as to total dollar amount or restrictive as to specific uses, or a combination of the two (2), whether imposed by general or private act, or home rule charter, upon the maximum rate or amount of any county, municipality or metropolitan government ad valorem tax levy, are repealed effective January 1, 1973.
Backlinks (1)
History (9)
  • Code 1858, § 490
  • Shan., § 650
  • Acts 1931 (1st Ex. Sess.), ch. 3, § 1
  • Code 1932, § 1049
  • C. Supp. 1950, § 1045.1
  • Acts 1957, ch. 328, § 1
  • 1973, ch. 226, § 6
  • T.C.A. (orig. ed.), §§ 67-643, 67-1001, 67-1007
  • Acts 2015, ch. 44, § 1.
§ 67-5-103. Taxation by municipality.
  1. (a) Taxes on property for municipal purposes shall be imposed on the value of the property, as defined and determined in this chapter and as otherwise provided by law, and shall be collected by the same officers at the time and in the manner prescribed for the collection of county taxes, except as otherwise provided by law.
  2. (b) All existing limitations and restrictions, whether restrictive as to total dollar amount or restrictive as to specific uses or a combination of the two (2), whether imposed by general or private act, or home rule charter, upon the maximum rate or amount of any county, municipality or metropolitan government ad valorem tax levy, are repealed effective January 1, 1973.
  3. (c) With respect to municipalities that fund all or part of the cost of waste disposal by special assessment to the property owner, as authorized in § 6-2-201(19), the special assessment may be billed in the same manner as municipal real property taxes and the special assessment may be billed on the real property tax notices, but shall not constitute a lien on any affected property or accrue any penalties or interest for late payment. Any municipality that exercises this method of waste disposal by special assessment shall bear all costs of system modifications necessary to prepare property tax notices.
  4. (d) A municipality that imposes a storm water user's fee, pursuant to § 68-221-1107, may bill such fee, upon passage of an ordinance by a two-thirds (⅔) majority of the legislative body, in the same manner as municipal real property taxes and add such fee to the real property tax notices. This subsection (d) applies in any municipality having a population of not less than fifty-one thousand (51,000) nor more than fifty-two thousand (52,000) and located in a county with a population of not less than one hundred sixty thousand six hundred (160,600) nor more than one hundred sixty thousand seven hundred (160,700), according to the 2010 federal census or any subsequent federal census.
Backlinks (1)
History (9)
  • Acts 1907, ch. 602, § 40
  • Shan., § 811a1
  • Code 1932, § 1483
  • Acts 1951, ch. 238, § 3
  • 1973, ch. 226, § 6
  • T.C.A. (orig. ed.), §§ 67-643, 67-1010
  • Acts 1996, ch. 974, § 1
  • 2015, ch. 44, § 2
  • 2018, ch. 922, § 1.
§ 67-5-104. Locality does not meet municipality requirements.
  1. (a) Notwithstanding any provisions of title 6 or any other law to the contrary:
    1. If, after July 1, 1998, a locality is deemed by the state to be a municipality for purposes of distributing grants or state-shared taxes; and
    2. If, thereafter the locality, acting in good faith and under color of law and for municipal purposes, collects and expends or obligates municipal property tax revenues; and
    3. If, thereafter it is judicially determined that the locality was not incorporated in accordance with the requirements of law and, therefore, is not a municipality; then
    4. neither the locality nor any person who acted on behalf of the locality is required to return or repay such municipal property tax revenues; however, any portion of such municipal property tax revenues, that remains unexpended and unobligated, shall be returned to the municipal property taxpayers on a pro rata basis.
  2. (b) As used in subsection (a), “the locality, acting in good faith and under color of law and for municipal purposes, collects and expends” includes, but is not limited to, reimbursement paid from municipal property tax revenues for documented, reasonable expenses of municipal incorporation that were paid out-of-pocket by one (1) or more residents acting on behalf of the locality and its incorporation.
  3. (c) Notwithstanding any law to the contrary:
    1. If, grants, state-shared taxes and municipal property tax revenues were co-mingled by the locality, then
    2. for purposes of subsection (a) and § 9-4-5306(a), there shall be a rebuttable presumption that the locality expended or obligated all such grants and state-shared taxes before it expended or obligated any such municipal property tax revenues.
    Backlinks (1)
History (1)
  • Acts 2000, ch. 898, § 2.
§ 67-5-105. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Actual notice” includes inquiry notice;
    2. (2) “Collector” means in the case of any tax entity, other than a county, that collects its own taxes, assessments, or other charges secured by property, the officer of such tax entity responsible for collecting such taxes, assessments, or charges;
    3. (3) “Inquiry notice” means knowledge of facts and circumstances sufficiently pertinent in character to enable reasonably cautious and prudent persons to investigate and ascertain as to the ultimate facts. Whatever is sufficient to put a person upon inquiry, is notice of all the facts to which that inquiry will lead when prosecuted with reasonable diligence and good faith;
    4. (4) “Tax entity” includes counties, cities, metropolitan governments, municipal corporations, quasi-municipal corporations, and political subdivisions having authority to levy a property tax; and
    5. (5) “Taxpayer” means any owner of property subject to taxation or any party liable for property taxes.
History (2)
  • Acts 2013, ch. 353, § 1
  • 2024, ch. 967, § 5.
Part 2 Exemptions
§ 67-5-201. Real property transferred between exempt and nonexempt persons.
  1. (a)
    1. (1) In the event real property heretofore exempt under §§ 67-5-203, 67-5-204, 67-5-206 — 67-5-208, 67-5-211 — 67-5-214, 67-5-218, and 67-5-219 is conveyed or transferred by sale, lease or otherwise to a person, firm or corporation, rendering the status of the property as nonexempt by reason of the transfer, the nonexempt grantee, lessor or other nonexempt taxpayer shall be liable for the real estate taxes thereon from the date of the transfer to the end of the taxable year; and the state, county or municipal collector of taxes shall collect the real estate taxes due from the date of the transfer, notwithstanding the status of the property as of the assessment date of January 1 of each year. A tax lien shall attach on the date of the transfer as otherwise provided by law, but the nonexempt grantee shall remain personally liable for taxes resulting from such transfer of property regardless of any subsequent transfer that may occur during that tax year.
    2. (2) The state, county and municipal tax collector shall collect the taxes on a pro rata basis for the current taxable year on and after the assessment date of January 1.
    3. (3)
      1. (A) The grantor or lessor of tax exempt property that is conveyed or transferred by sale, lease or otherwise to a person, firm or corporation, rendering the status of the property as nonexempt by reason of the transfer, shall promptly report to the assessor any change in the use or ownership of the property that might affect its exempt status.
      2. (B) A grantor or lessor of tax exempt property includes a governmental entity; department, agency, board, commission, or instrumentality of the state or local government; industrial development corporation; or any other agency or authority created by a governmental entity or any other grantor or lessor of property exempt under this part.
      3. (C) The grantee or lessee of real property that, prior to the transfer to such grantee or lessee was tax exempt, shall promptly report to the assessor the change in the use or ownership of such property. Notwithstanding §§ 67-1-1005 and 67-5-1806, the grantee or lessee of such real property shall be personally liable for all taxes, and penalties and interest, from the date of the transfer to the date the assessor is notified of such change in the use or ownership of property, and the collection of taxes against such grantee or lessee with respect to such property shall not be barred; provided, however, that no tax lien shall arise against the real property conveyed to a bona fide purchaser who records the deed for such property or notifies the assessor of the change in the use or ownership of such property. The burden of proving a bona fide sale shall be upon the owner of the property at the time of such recording or notification.
  2. (b)
    1. (1) In the event the ownership of real property that has heretofore been subject to assessment and taxation is conveyed or transferred to a person, firm or corporation that is exempt from property assessment and taxation and the real property is used for purposes that would render the status of the property as exempt from assessment and taxation under §§ 67-5-203, 67-5-204, 67-5-207, 67-5-208, and 67-5-211 — 67-5-217, the new owner of the property shall not be liable for the real property taxes thereon, from the date of transfer and change of use from a nonexempt ownership and use to an exempt ownership and use to the end of the taxable year, notwithstanding the status of the property as of the assessment date of January 1 of that year.
    2. (2) The assessor of property shall make an assessment of such property on the basis of its value and use to which it is put following its transfer; provided, that for the year in which the transfer of property occurred, the assessment shall be prorated and the owner shall be liable only for the taxes for the portion of the year that the property was subject to assessment.
    3. (3) The state, county and municipal tax collector shall collect taxes on the basis of the assessment as prorated by the assessor of property.
    4. (4)
      1. (A) The grantor of nonexempt property that is conveyed or transferred by sale to a person, firm, or corporation, rendering the status of the property as exempt by reason of the transfer, shall promptly report to the assessor any change in the use or ownership of the property that might affect its nonexempt status.
      2. (B) A grantor of nonexempt property includes any person, firm, or corporation that is not otherwise exempt under this part. The grantor of real property that, prior to the transfer to such grantee was nonexempt, shall promptly report to the assessor the change in ownership or use of such property. The nonexempt grantor's notice of the change in ownership or use to the assessor shall be a prerequisite to the grantor seeking a refund of taxes paid related to exempt ownership or use of the property occurring after the date of transfer to the tax exempt grantee by sale.
History (5)
  • Acts 1973, ch. 226, § 5
  • T.C.A., § 67-403
  • Acts 1984, ch. 926, §§ 1, 2
  • 2004, ch. 531, §§ 1, 3
  • 2006, ch. 621, §§ 1, 2.
§ 67-5-202. Trust estates.
  1. Every trust estate shall be entitled to the same exemption as if owned by a single taxpayer.
History (2)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-618.
§ 67-5-203. Government property.
  1. (a)
    1. (1) All property of the United States, the state of Tennessee, any county, or any incorporated town, city or taxing district in the state that is used exclusively for public, county or municipal purposes shall be exempt from taxation; provided, that real property purchased for investment purposes by the Tennessee consolidated retirement system shall be subject to property taxation.
    2. (2) All property of any educational institution owned, operated or otherwise controlled by the state of Tennessee as trustee, or otherwise, shall be exempt from taxation.
  2. (b)
    1. (1) When all of the area that is assessed as a single unit by the assessor of property of any political subdivision is acquired in its entirety by the United States government, the state of Tennessee, or any agency or political subdivision thereof, any lien for property taxes assessed by the political subdivision for the year in which the property is so acquired shall be released on the approval of the assessor of property of the political subdivision assessing such taxes with respect to that portion of the taxes representing the remainder of the calendar year after the date of the instrument or conveyance by the property owner, or after the date of the entry of an order of possession, if the property is acquired by condemnation, and the property owner shall be relieved of all personal liability for that portion of the taxes.
    2. (2) Either the condemnor or the property owner may request the assessor to provide such proration, which shall be based on the last made assessment and rate fixed, according to law, and the trustee shall accept tender of the amount determined to be owing.
    3. (3) Where only a portion of the entire unit assessed for taxes by the assessor of property of a political subdivision is so acquired, the portion of the taxes for the entire year attributable to the part taken, where same is acquired by deed, shall be arrived at by dividing an amount equal to the assessed valuation of the portion taken, as agreed upon between the property owner and the assessor of property, by the present assessed valuation of the entire assessed unit and multiplying the resulting quotient against the amount of the whole tax assessed against the entire unit for the full year after which the portion of the property so acquired shall be relieved of the lien of the portion of the taxes for the remainder of the calendar year as provided in subdivision (b)(1), and the property owner shall be relieved of all personal liability as to the portion of the taxes as provided in subdivision (b)(1); provided, that, where the portion of the property is being acquired by condemnation, the court will determine the portion of the entire year's taxes attributable to the part taken after hearing proof on behalf of the property owner and the taxing authorities, with the burden being on the taxing authorities to assure their proper appearance before the court.
    4. (4) In the event of such an acquisition by deed, either the condemnor or the property owner may request the assessor to provide such proration, after the assessor has agreed with the property owner relative to the assessed valuation of the portion taken; and under either circumstances set forth in subdivision (b)(3), the proration shall be based on the last made assessment and rate fixed, according to law, and the trustee shall accept tender of the amount determined to be owing.
  3. (c)
    1. (1) If real property owned by the state or any political subdivision of the state is leased to a person, corporation, or other business entity for the purpose of operating a golf course or for the purpose of developing and operating a golf course, then the person, corporation, or business entity shall make payments in lieu of ad valorem taxes. Such payments shall be in an amount equal to the ad valorem taxes otherwise due and payable by a taxpaying entity upon the current fair market value of the leased real property.
    2. (2) Nothing contained in subdivision (c)(1) shall be construed or applied in any manner that violates Constitution of Tennessee, Article XI, § 2.
  4. (d) If real property owned by any political subdivision of the state is leased or conveyed in any manner to a person, corporation or other business entity which has the purpose or effect of reducing the real or personal property appraisal and tax collection of the county in which the real property is located, the lease, conveyance or other transfer arrangement may not be for a period in excess of thirty (30) years without approval from the county's legislative body of the county in which the real property is located, unless the agreement requires the lessee to pay all real and personal property taxes to the county in which the property is located for any year after the initial thirty-year occupancy period as if such property was not owned by any political subdivision of the state or other tax exempt entity. This subsection (d) shall not apply to the payment in lieu of tax programs jointly administered by the municipality and the county in which the real property is located, whether through a jointly authorized entity or a memorandum of understanding.
  5. (e)
    1. (1) Real property owned by any political subdivision of the state that is leased or conveyed in any manner to a person, corporation, or other business entity shall be assessed as if the lessee were the owner, if:
      1. (A) The lease or other transfer arrangement is for a period of fifty (50) years or more; or
      2. (B) The lease, other than a lease negotiated pursuant to title 7, chapter 53, the Housing Authorities Law, compiled in title 13, chapter 20, or title 48, chapter 101, part 3, permits the lessee to acquire the real property for a nominal sum at or before the completion of the term.
    2. (2)
      1. (A) Notwithstanding any law to the contrary, if a lease is for less than fifty (50) years and is either extended or amended to be greater than fifty (50) years, or if a new lease is executed that has a term greater than fifty (50) years, any potential tax liability pursuant to this subsection (e) shall begin in the fifty-first year of the extended, amended, or new lease.
      2. (B) Subdivision (e)(2)(A) shall only apply in any county having a population of over nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census.
      3. (C) This subdivision (e)(2) shall also apply to leases in effect as of May 18, 2015.
  6. (f)
    1. (1) Notwithstanding any law to the contrary, for the purposes of subsections (d) and (e), the term political subdivision of the state shall not include any airport authority or public entity created by or subject to title 42.
    2. (2) Subdivision (f)(1) shall only apply in any county having a population of over nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census.
    3. (3) This subsection (f) shall also apply to leases in effect as of May 18, 2015.
Backlinks (3)
History (11)
  • Acts 1973, ch. 226, § 5
  • 1976, ch. 449, §§ 1, 2
  • T.C.A., §§ 67-404, 67-501
  • Acts 1986, ch. 856, §§ 1, 2
  • 1987, ch. 48, § 1
  • 1987, ch. 54, § 18
  • 1990, ch. 926, §§ 1, 2
  • 1990, ch. 1016, § 9
  • 2014, ch. 933, § 1
  • 2015, ch. 455, §§ 1-3
  • 2016, ch. 642, § 1.
§ 67-5-204. Public ways.
  1. All roads, streets, alleys, and promenades where legally dedicated and thrown open for public travel or use free of charge shall be exempt from taxation.
Backlinks (2)
History (2)
  • Acts 1973, ch. 226, § 5
  • T.C.A., § 67-502.
§ 67-5-205. Government bonds and notes.
  1. (a)
    1. (1) Whenever the state of Tennessee, or any agency thereof, shall issue any bonds or notes for any public purpose, without regard to when issued, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality or taxing district of this state, except inheritance, transfer and estate taxes.
    2. (2) Whenever any county or any agency thereof shall issue any bonds or notes for any public purpose, without regard to when authorized, neither the principal nor the interest of such bonds or notes shall be taxed by the state or by any county or municipality in this state.
    3. (3) Whenever any incorporated town or city, or any agency thereof, shall issue any bonds or notes, without regard to when authorized, for any public purpose, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality of this state.
  2. (b) In the event the courts of this state shall hold that any of this section is invalid and that such bonds or notes are taxable, such holding shall not affect the validity of any bonds or notes so issued.
History (4)
  • Acts 1973, ch. 226, § 5
  • 1977, ch. 2, § 1
  • T.C.A., §§ 67-503 — 67-506
  • Acts 2001, ch. 28, § 1.
§ 67-5-206. Housing authorities.
  1. (a) The property of housing authorities shall be exempt from all taxes and special assessments of the state or any county, city, town, metropolitan government or political subdivision thereof; provided, that, in lieu of such taxes or special assessments, a housing authority shall agree to make payments to any county, city, town, metropolitan government or political subdivision of the state for services, improvements or facilities furnished by such county, city, town, metropolitan government or political subdivision for the benefit of a housing project owned by the housing authority, but in no event shall such payments exceed the estimated cost to such county, city, town, metropolitan government or political subdivision of the services, improvements or facilities to be so furnished.
  2. (b) The bonds or notes of a housing authority are declared to be issued for an essential public and government purpose and, together with interest thereon and income therefrom, shall be exempt from all taxes.
Backlinks (1)
History (2)
  • Acts 1973, ch. 226, § 5
  • T.C.A., §§ 67-507, 67-508.
§ 67-5-207. Religious, charitable, scientific, educational institutions.
  1. (a)
    1. (1) Property of Tennessee nonprofit corporations that is used for permanent housing of low income persons with disabilities, or low income elderly persons, is exempt in accordance with this section. The property must be financed by a grant under § 211 or § 811 of the National Affordable Housing Act (42 U.S.C. §§ 12741 and 8013, respectively), or the McKinney-Vento Homeless Assistance Act (42 U.S.C. § 11301 et seq.), or be financed or refinanced by a loan made, insured, or guaranteed by a branch, department or agency of the United States government under § 515(b) or § 521 of the Housing Act of 1949 (42 U.S.C. §§ 1485(b) and 1490a, respectively), § 202 of the Housing Act of 1959 (12 U.S.C. § 1701q, § 221, § 223, § 231) or § 236 of the National Housing Act (12 U.S.C. §§ 1715l, 1715n, 1715v and 1715z-1, respectively), or § 8 of the United States Housing Act of 1937, as amended by the Housing and Community Development Act of 1974 (42 U.S.C. § 1437f). For the purposes of this section, a loan is considered to be guaranteed if the federal housing agency has consented to assignment of a housing assistance program contract as security for the loan. In the case of a property financed or refinanced by a loan, eligibility for the exemption under these programs continues so long as there is an unpaid balance on the loan. Following payment of the loan in full, a property shall continue to be exempt from taxation so long as the project is restricted to use for elderly persons or persons with disabilities as defined in the programs. In the case of a property financed by a grant, eligibility for the exemption under these programs continues so long as the project is restricted to use for elderly persons or persons with disabilities as defined in the programs. The property must be used as below-cost housing for elderly persons or persons with disabilities within the program definitions, who have incomes not in excess of limits established for the enumerated program by the department of housing and urban development (HUD). If a property was approved by HUD for participation in the program without specific low income guidelines, the property may nevertheless qualify for exemption on a pro rata basis, if at least fifty percent (50%) of the low income residents have incomes that would qualify under HUD guidelines for any of the enumerated programs. In such cases the property shall be exempt in the same percentage that low income residents represent of the total occupancy of the property at full capacity, determined as of January 1 each year, on the basis of information supplied to the assessor on or before April 20.
    2. (2) The owners of projects exceeding twelve (12) units shall agree to make payments in lieu of taxes to the tax jurisdictions in which they are located, in an amount negotiated to cover the cost of improvements, facilities or services rendered by the tax jurisdiction, but if no amount is agreed the payments shall be not less than twenty-five percent (25%) of the amount of tax that would be due if the project were not exempt. In no event shall such payments be required of public housing authorities operating under the Housing Authorities Law, compiled in title 13, chapter 20.
  2. (b) To qualify for such exemption, any such not-for-profit corporation must first be exempt from federal income taxation by virtue of qualifying as an exempt charitable organization or as an exempt social welfare organization under the Internal Revenue Code (26 U.S.C.), and any amendments thereto. In addition, the not-for-profit corporation shall have charter provisions providing in substance that:
    1. (1) The directors and officers shall serve without compensation;
    2. (2) The corporation is irrevocably dedicated to and operated exclusively for not-for-profit purposes;
    3. (3) No part of the income or assets of the corporation shall be distributed to nor inure to the benefit of any individual;
    4. (4) In the event of dissolution of the corporation or other liquidation of its assets, the corporation's property shall not be conveyed to any individual for less than the fair-market value of such property; and
    5. (5) All assets remaining after payment of the corporation's debts shall be conveyed or distributed only to an organization or organizations created and operated for not-for-profit purposes similar to those of the corporation.
  3. (c) All claims for exemption under this section are subject to § 67-5-212(b).
  4. (d) Subject to the general requirements of this section for exemption of federally assisted housing, there shall also be exempted under this section those properties owned by not-for-profit organizations and funded under the HOME Investment Partnerships Program (42 U.S.C. § 12701 et seq.), or a housing trust fund established in accordance with title 7, chapter 8 or title 13, chapter 23, part 5. To qualify, the property must be used for permanent housing for low income or very low income persons who are elderly or have a disability.
  5. (e) Nothing in this section shall be construed to preclude the application of § 67-5-212 to transitional or temporary housing that qualifies as a charitable use of property under that section.
Backlinks (2)
History (19)
  • Acts 1973, ch. 226, § 5
  • 1975, ch. 168, § 1
  • 1975, ch. 323, § 1
  • 1983, ch. 122, §§ 1-3
  • T.C.A., § 67-509
  • Acts 1988, ch. 1002, §§ 1, 2
  • 1990, ch. 1009, §§ 1, 2
  • 1991, ch. 399, § 1
  • 1992, ch. 652, §§ 1, 2
  • 1993, ch. 454, §§ 1-3
  • 1994, ch. 617, § 1
  • 1994, ch. 645, § 1
  • 1997, ch. 347, § 1
  • 2002, ch. 704, §§ 1-4
  • 2008, ch. 1104, § 1
  • 2009, ch. 111, §§ 1, 2
  • 2011, ch. 47, §§ 74, 75
  • 2014, ch. 887, §§ 1, 2
  • 2019, ch. 355, § 1.
§ 67-5-208. Recycling waste products.
  1. (a) Property owned by a nonprofit corporation, that is operated for the purpose of recycling or disposing of waste products and converting same to heat or cooling for public buildings or facilities where the reversionary interest to such properties is in the state or any of its political subdivisions, shall be exempt from taxation.
  2. (b) Such purpose is defined as a public one, performed on behalf of such governmental entity, notwithstanding that some of the by-products of such undertaking may be furnished to private entities.
Backlinks (2)
History (2)
  • Acts 1973, ch. 226, § 5
  • T.C.A., § 67-510.
§ 67-5-209. Private act hospital authorities.
  1. In addition to all rights and powers granted to a private act hospital authority under title 7, chapter 57, part 6, such a private act hospital authority shall be exempt from the payment of any taxes or fees to the state or any subdivisions thereof, or to any officer or employee of the state or any subdivision thereof, except as hereinafter provided. This exemption does not include fees paid by private act hospital authorities as required by § 68-11-216. All property of an authority residing within the boundaries of its creating or participating governing authorities or entities shall be exempt from all county and municipal taxes; provided, that the authority shall pay all county and municipal fees. An authority may agree to the payment of tax equivalents to the creating or participating governing authority or entity. Authorities shall be required to apply to the state board of equalization for claims for exemption of property residing outside the boundaries of their creating or participating governing authorities or entities. The claims for exemption shall be determined by the state board of equalization, following application in the manner required by § 67-5-212, and exemptions shall be:
    1. (1) Limited to property of the authority which would be exempt if owned and operated by a charitable hospital under § 67-5-212; and
    2. (2) Granted in accordance with the same criteria used by the board of equalization in granting exemptions to property owned and operated by a charitable hospital under § 67-5-212.
History (2)
  • Acts 2001, ch. 385, § 1
  • 2013, ch. 417, § 1.
§ 67-5-210. Real property owned and used by nonprofit economic or charitable development organization — Requirements.
  1. (a) Subject to the general requirements of § 67-5-212, real property owned and used by a nonprofit economic or charitable development organization shall be eligible for property tax exemption as a charitable use of property when the provisions of this section are met. Real property owned by a nonprofit entity that is exempt from federal income taxation under § 501(a) of the Internal Revenue Code (25 U.S.C. § 501(a)) as an organization described in § 501(c)(3) (§ 26 U.S.C. § 501(c)(3)), and that is engaged in economic development, shall be eligible for property tax exemption to the extent the property is used:
    1. (1) To expand entrepreneurship in the community;
    2. (2) To commercialize technologies into scalable businesses;
    3. (3) To provide affordable office or lab space and shared meeting rooms;
    4. (4) To provide services, including accelerator programming and business training; and
    5. (5) To provide supporting facilities for parking, delivery, storage, and access, as well as expansion space for the facilities described in subdivisions (a)(1)-(4).
  2. (b) This section shall apply only to a nonprofit entity that has been in continual operation for not less than ten (10) years from May 18, 2015, and that has executed an economic development mission for not less than ten (10) years from May 18, 2015.
  3. (c) Any owner of real property claiming exemption under this section shall be required to file an application for exemption with the state board of equalization on the same form and in the same manner prescribed in § 67-5-212(b).
  4. (d) This section shall apply only in a county containing a research hospital, as defined by § 63-6-204(f)(7)(I).
History (1)
  • Acts 2015, ch. 456, § 1.
§ 67-5-211. Charter or contract exemptions.
  1. (a) All property protected by valid charter or contract exemption shall be exempt from taxation.
  2. (b) This title shall not be so construed, and shall not so operate, as to exonerate and release from taxation any company or corporation whose charter exempts stock and shares thereof from taxation; but it is enacted that in all cases where such stock is exempted, such company or corporation shall be assessed in such way as may be lawful; and in all cases in which, by the terms or legal effect of the charter, the shares of stock in any corporation are wholly or partially exempt from taxation, or in which a rate of taxation on the shares of the stock is fixed and prescribed, and declared to be in lieu of all other taxes for state, county, and municipal purposes, there shall be assessed and levied a tax, at a rate uniform with the rate levied upon other taxable property, upon the capital stock of such corporation, the value of which capital stock shall be fixed and returned to the assessor as being equal to the aggregate and not less than the actual cash value of all shares of stock in such corporation, including the net surplus; provided, that, where the state has provided in the charter of any such corporation or company that it shall pay a stated percent on each share of stock subscribed annually to the state, which shall be in lieu of all other taxes, it shall be entitled annually to a credit therefor, upon its assessment of its capital stock as provided in this section. This subsection (b) shall not apply so as to prescribe that the capital stock of any such company or corporation shall be assessed and taxes collected upon such assessment for municipal purposes, when the supreme court has, in a suit for the collection of such taxes, adjudged that the capital stock of a corporation was exempt from the payment of them by virtue of its charter.
Backlinks (2)
History (2)
  • Acts 1973, ch. 226, § 5
  • T.C.A., §§ 67-402, 67-512.
§ 67-5-212. Religious, charitable, scientific, educational institutions — Assessment Act.
  1. (a)
    1. (1) There shall be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by any religious, charitable, scientific, or nonprofit educational institution that is occupied and actually used by the institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the institution was created or exists. There shall further be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by an exempt institution, but occupied and actually used by:
      1. (A) Another religious, charitable, scientific, or nonprofit educational institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the occupying institution was created or exists;
      2. (B) An exempt institution that originated as part of a single exempt institution and that continues to use the property for the same religious, charitable, scientific, or nonprofit educational purposes, whether by charter, contract, or other agreement or arrangement; or
      3. (C) The United States government, the state of Tennessee, or any agency or political subdivision thereof.
    2. (2) In determining the exemption applicable to a post-secondary educational institution, there shall be a presumption that the entire original campus of an institution chartered before 1930 is an historical and integral entity, and is exempt so long as no particular portion of such campus is used for nonexempt purposes.
    3. (3)
      1. (A) The property of such institution shall not be exempt, if:
        1. (i) The owner, or any stockholder, officer, member, or employee of such institution shall receive or may be lawfully entitled to receive any pecuniary profit from the operations of that property in competition with like property owned by others that is not exempt, except reasonable compensation for services in effecting one (1) or more of such purposes, or as proper beneficiaries of its strictly religious, charitable, scientific, or educational purposes; or
        2. (ii) The organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such institution, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one (1) or more of these purposes.
      2. (B) The real property of any such institution not so used exclusively for carrying out thereupon one (1) or more of such purposes, but leased or otherwise used for other purposes, whether the income received therefrom be used for one (1) or more of such purposes or not, shall not be exempt; but, if a portion only of any lot or building of any such institution is used purely and exclusively for carrying out thereupon one (1) or more of such purposes of such institution, then such lot or building shall be so exempt only to the extent of the value of the portion so used, and the remaining or other portion shall be subject to taxation.
    4. (4) No church shall be granted an exemption on more than one (1) parsonage, and an exempt parsonage may not include within the exemption more than three (3) acres.
    5. (5) For property owned by a corporation organized for the exclusive purpose of holding title to property for use by any organization that itself qualifies for exemption under this section, only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this section if owned directly by such organization shall be exempt from property taxation.
  2. (b)
    1. (1) Any owner of real or personal property claiming exemption under this section or § 67-5-207, § 67-5-213, § 67-5-219, or as otherwise required by law, shall file an application for the exemption with the state board of equalization on a form prescribed by the board and supply such further information as the board may require to determine whether the property qualifies for exemption. No property that is subject to these application requirements shall be exempted from property taxes unless the application has been approved in writing by the board. An application shall be deemed filed on the date it is received by the board or, if mailed, on the postmark date. The applicant shall provide a copy of the application with any supporting materials to the assessor of property of the county in which the property is located. An application for exemption pursuant to this section or any other section referring to these procedures shall be treated as an appeal for purposes of § 67-5-1512.
    2. (2) The board shall make an initial determination granting or denying exemption through its staff designee, who shall send written notice of the initial determination to the applicant and the assessor of property. Written notice includes notification by electronic means and notice may be preserved in digital or electronic format. Either the assessor of property or the applicant may appeal the initial determination to the board and shall be entitled to a hearing prior to any final determination of exemption. The assessor shall retain copies of any approved exemptions in paper, electronic, or digital format. Upon approval of exemption, it is not necessary that the applicant reapply each year, but the exemption shall not be transferable or assignable and the applicant shall promptly report to the assessor any change in the use or ownership of the property that might affect its exempt status. The board may by rule impose a filing fee for processing applications for exemption. Such filing fee shall not exceed one hundred twenty dollars ($120) and shall be proportionate to the value of the property at issue. For purposes of this section, “filing” means one (1) submission that may include multiple parcels, including real and personal property, with a clear nexus to one (1) exemption determination.
    3. (3)
      1. (A) Any institution claiming an exemption under this section that has not previously filed an application for and been granted an exemption for a parcel must file an application for exemption with the state board of equalization by May 20 of the year for which exemption is sought. If the application is approved, the exemption will be effective as of January 1 of the year of application or as of the date the exempt use of such parcel began, whichever is later. If application is made after May 20 of the year for which exemption is sought, but prior to the end of the year, the application may be approved but will be effective for only a portion of the year determined as follows:
        1. (i) If application is filed within thirty (30) days after the exempt use of the property began, exemption will be effective as of the date the exempt use began; or
        2. (ii) If application is filed more than thirty (30) days after the exempt use began, the exemption will be effective as of the date of application.
      2. (B) If a religious institution acquires property that was duly exempt at the time of transfer from a transferor who had previously been approved for a religious use exemption of the property, or if a religious institution acquires property to replace its own exempt property, then the effective date of exemption shall be three (3) years prior to the date of application, or the date the acquiring institution began to use the property for religious purposes, whichever is later. The purpose of this subdivision (b)(3) is to provide continuity of exempt status for property transferred from one exempt religious institution to another in the specified circumstances. For purposes of this subdivision (b)(3), property transferred by a lender following foreclosure shall be deemed to have been transferred by the foreclosed debtor, whether or not the property was assessed in the name of the lender during the lender's possession.
      3. (C) In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, if a nonprofit educational institution which is a medical college acquires one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213, and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. This subdivision (b)(3)(C) shall apply to properties acquired before May 25, 2017, so that such properties are not subject to taxation under this chapter while owned by the exempt educational institution and used for one (1) or more of the exempt purposes for which the institution was created or exists; provided, however, that nothing in this subdivision (b)(3)(C) requires a county to refund any taxes that were collected prior to May 25, 2017.
      4. (D) In any county with a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four-hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census, or within a municipality located within such county, if a nonprofit children's hospital changes the use of one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213, and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying institution begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying institution or its officers purely and exclusively for the institution's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(D) applies to properties acquired before May 15, 2018, so that such properties are not subject to taxation under this chapter while owned by the qualifying institution and used for one (1) or more of the exempt purposes for which the institution was created or exists, and any property taxes paid on such property that were collected prior to May 15, 2018, shall be refunded.
      5. (E) In any county with a population of not less than four hundred seventy-eight thousand nine hundred (478,900) nor more than four-hundred seventy-nine thousand (479,000), according to the 2020 federal census or a subsequent federal census, or within a municipality located within the county, if a charitable nonprofit corporation acquires property for use as a licensed residential home for the aged to replace its own exempt property that was used as a licensed residential home for the aged, then the charitable nonprofit corporation may claim and file an application for exemption under this section, and the effective date of exemption is up to three (3) years prior to the date of application, or the date the corporation began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying corporation begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying corporation or its officers purely and exclusively for the corporation's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(E) applies to properties acquired before May 28, 2024, so that the properties are not subject to taxation under this chapter while owned by the qualifying corporation and used for one (1) or more of the exempt purposes for which the corporation was created or exists, and any property taxes, interest, fees, penalties, postage, expenses, and all other related costs paid on the property that were collected prior to May 28, 2024 must be refunded.
    4. (4) All questions of exemption under this section shall be subject to review and final determination by the board; provided, that any determination by the board is subject to judicial review by petition of certiorari to the appropriate chancery court. All other provisions of law notwithstanding, no property shall be entitled to judicial review of its status under this statute, except as provided by the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and only after the exhaustion of administrative remedies as provided in this section.
    5. (5) Revocation of tax-exempt status.
      1. (A) The state board of equalization may revoke any exemption approved under this section, either in whole or in part, if it determines the exemption was approved on the basis of fraud, misrepresentation, or erroneous information; the current owner of the property does not qualify for exemption; or the property is not actually being used for an exempt purpose. Property is not occupied and used for an exempt purpose if the property is not currently in use, has been abandoned, is not suitable for human habitation, or is being used for a nonexempt purpose.
      2. (B) The board may initiate proceedings for revocation of a property's tax-exempt status on its own motion or upon the written complaint of any person. Revocation is not retroactive unless the order of revocation incorporates a finding of fraud or misrepresentation on the part of the applicant or failure of the applicant to give notice of a change in the use or ownership of the property as required by this section.
      3. (C) The board, the executive secretary, or the executive secretary's designee may determine that property no longer qualifies for property tax exemption or may modify the tax-exempt status of a property. The board shall revoke a property's tax-exempt status through its staff designee. Written notice of the revocation must be sent to the property owner, the county assessor of property, and the county trustee, specifying the date the property's tax-exempt status ends. Written notice includes notification by electronic means, and the record of notice may be preserved in digital or electronic format. Either the county assessor of property or the property owner may appeal the initial determination to the board and is entitled to a hearing prior to any final determination.
      4. (D) A revocation is final ninety (90) days after the date the written notice is sent, absent an appeal filed pursuant to § 67-5-1501(c). An appeal of a revocation of a property's tax-exempt status must be treated as an appeal for purposes of § 67-5-1512.
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  3. (c) As used in this section, “charitable institution” includes any nonprofit organization or association devoting its efforts and property, or any portion thereof, exclusively to the improvement of human rights and/or conditions in the community.
  4. (d)
    1. (1) The property, or any part thereof, owned by any religious, charitable, scientific or educational membership nonprofit organization chartered by the United States congress shall not be denied exemption because administrative, social or recreational activities of such organization are conducted thereon, where the activities are:
      1. (A) Agencies for the advancement and enlargement of the purposes for which the organizations exist;
      2. (B) In furtherance of the general purposes of such organization; or
      3. (C) To promote the interest of its membership in such organizations.
    2. (2) When property is owned by corporations organized for the exclusive purpose of holding title to property for use of any organization that itself qualifies for such exemption from taxation under this subsection (d), only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this subsection (d) if owned directly by such organization shall not be denied exemptions.
    3. (3) The exemption of property or parts thereof under this subsection (d) shall be applicable only to such part of the property on which such organization conducts administrative, social or recreational activities, if it is less than the entire property.
  5. (e)
    1. (1) There shall be exempt from property taxation the property of labor organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code (26 U.S.C. § 501(c)(5)), when such property is not used for revenue producing profit, but is used by such organization for charitable or educational meetings; but, if part of the property is used for revenue producing profit, then the part so used shall not be exempt from property taxation; provided, that the real property on which the building is situated shall be exempt from property taxation.
    2. (2) No such organization that discriminates against any person based upon race, sex, religious beliefs or national origin shall be eligible for the property tax exemption authorized by subdivision (e)(1).
  6. (f) In the case of property that is owned by any religious, charitable, scientific, or educational institution and on which such institution constructs improvements to be occupied and used by such institution or its officers purely and exclusively for carrying out thereupon one (1) or more of the purposes for which the institution was created or exists, the property may be exempt as follows:
    1. (1) If construction of the improvements is completed within twelve (12) months of its commencement, the property, to the extent of the value of the land and the value of the improvements constructed thereon, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements. Land shall be considered occupied and used by the institution to the extent it is reasonably necessary to support structures or site improvements associated with structures;
    2. (2) If construction of the improvements is completed more than twelve (12) months after commencement, the property, to the extent of the value of the improvements constructed thereon for these purposes, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements and to the extent of such value shall be exempt from taxation;
    3. (3) If the improvements upon completion are not so occupied and used, then no part of the value of the property shall be exempt from taxation during the construction of the improvements;
    4. (4) If upon completion of the improvements a portion thereof is not so used and occupied, such portion shall not be exempt from taxation during construction of the improvements; and
    5. (5) If the improvements upon completion are not occupied and used by such institution or its officers for a period of ten (10) years, purely and exclusively for carrying out thereupon one (1) or more of the purposes for which such institution was created or exists, the institution shall be liable for the full amount of property taxes that would otherwise have been due and payable during the period of construction, plus penalties and interest as provided in this title.
  7. (g) There shall be exempt from property taxation the property or any part thereof of fraternal organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code (26 U.S.C. § 501(c)), to the extent that such property is used not for revenue-producing profit, but directly, physically and exclusively for religious, charitable, scientific and educational activities.
  8. (h) There shall be exempt from property taxation the property, or any part thereof, of nonprofit county fair associations.
  9. (i) There shall be exempt from property taxation the property or any portion thereof containing one (1) residential dwelling located in a community park that is open to entry by the general public, if such dwelling is owned by a nonprofit religious, charitable, educational or scientific organization that does not receive income from the resident thereof, if such resident does not occupy the dwelling in lieu of a salary, and if such resident, by such resident's presence, would discourage or prohibit damage or destruction by vandalism of the organization's property.
  10. (j) There shall be exempt from property taxation any property upon which a caretaker's dwelling is located, if:
    1. (1) The dwelling is located upon land owned by a nonprofit member organization chartered by the United States congress;
    2. (2) The land immediately surrounding the dwelling is used by such organization for nonprofit religious, charitable, educational or scientific purposes; and
    3. (3) The caretaker's presence is required for the physical security of the users of the property as well as to discourage or prohibit damage or destruction of the organization's property by vandalism.
  11. (k) The general assembly finds that public radio broadcasting serves a valid educational purpose so long as the broadcaster holds an educational broadcast license issued by the federal communications commission; and, therefore, that property, or any part thereof, owned by a public radio station that is an affiliate member of the public broadcasting network, and that is organized as a nonprofit charitable or educational institution, shall be exempt from property taxation to the extent the property is used in a manner consistent with the license.
  12. (l) The general assembly finds that public television broadcasting serves a valid educational purpose so long as the broadcaster holds a noncommercial educational broadcast license issued by the federal communications commission. Therefore, that property, or any part thereof, owned by a public television station that is an affiliate member of the public broadcasting network, and that is organized as a nonprofit charitable or educational institution, shall be exempt from property taxation to the extent the property is used in a manner consistent with the license.
  13. (m) There shall be exempt from property taxation the real and personal property, or any part thereof, that is owned by a religious or charitable institution and that is occupied and used by such institution for a thrift shop; provided, that:
    1. (1) The institution is exempt from payment of federal income taxes under Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3));
    2. (2)
      1. (A) The thrift shop is operated as a training venue for persons in need of occupational rehabilitation; or
      2. (B) The thrift shop is operated primarily by volunteers;
    3. (3) The inventory of the thrift shop is obtained by donation to the institution that owns and operates the shop;
    4. (4) Goods are priced at levels generally ascribed to used property;
    5. (5) Goods are given to persons whose financial situations preclude payment; and
    6. (6) The net proceeds of the thrift shop are used solely for the charitable purposes of the institution that owns and operates the shop.
  14. (n) Land not necessary to support exempt structures or site improvements associated with exempt structures, including land used for recreation, retreats or sanctuaries, shall not be eligible for exemption beyond a maximum of one hundred (100) acres per county for each religious, charitable, scientific or nonprofit educational institution qualified for exemption pursuant to this section. For purposes of applying this limit, land owned by an exempt institution shall be aggregated with land owned by related exempt institutions having common ownership or control. Qualifying land in excess of the limit shall be classified as forest land upon application submitted pursuant to § 67-5-1006, or as open space land upon application submitted pursuant to § 67-5-1007, and the effective date of the classification shall be the date the property might otherwise have qualified for exemption.
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History (50)
  • Acts 1973, ch. 226, § 5
  • 1974, ch. 771, §§ 5-7
  • 1974, ch. 774, §§ 1, 2
  • 1975, ch. 322, § 1
  • 1976, ch. 670, §§ 1, 2
  • 1976, ch. 849, § 1
  • 1977, ch. 255, §§ 1, 2
  • 1977, ch. 421, §§ 1-5
  • 1979, ch. 22, § 1
  • 1981, ch. 96, § 1
  • 1981, ch. 218, § 1
  • 1981, ch. 306, §§ 1, 2
  • 1982, ch. 713, § 1
  • 1983, ch. 460, § 1
  • T.C.A., § 67-513
  • Acts 1984, ch. 507, § 1
  • 1984, ch. 651, § 1
  • 1984, ch. 749, § 1
  • 1984, ch. 766, § 1
  • 1984, ch. 809, § 1
  • 1984, ch. 832, § 4
  • 1985, ch. 68, § 1
  • 1994, ch. 541, §§ 2-8
  • 1997, ch. 467, § 1
  • 2000, ch. 628, § 1
  • 2000, ch. 793, § 1
  • 2000, ch. 938, § 2
  • 2000, ch. 993, § 2
  • 2002, ch. 687, §§ 1, 2
  • 2003, ch. 251, § 1
  • 2004, ch. 531, § 2
  • 2004, ch. 635, § 1
  • 2004, ch. 732, §§ 1, 2
  • 2005, ch. 500, § 12(a)
  • 2006, ch. 740, § 1
  • 2006, ch. 861, § 1
  • 2007, ch. 292, § 2
  • 2008, ch. 1104, §§ 2-4
  • 2010, ch. 1036, § 2
  • 2010, ch. 1074, § 1
  • 2011, ch. 415, § 1
  • 2013, ch. 209, § 5
  • 2017, ch. 155, § 1
  • 2017, ch. 409, § 1
  • 2017, ch. 465, § 1
  • 2018, ch. 527, § 1
  • 2018, ch. 957, § 1
  • 2019, ch. 355, §§ 2-5
  • 2022, ch. 698, § 2
  • 2024, ch. 1028, § 1.
§ 67-5-213. Property of certain educational institutions.
  1. (a) Real estate owned by an educational institution and used primarily for dormitory purposes for its students, even though other student activities are incidentally conducted therein, and even though the student's spouse or children may reside therein, is exempt from taxation.
  2. (b) A residence and no more than three (3) acres of its surrounding grounds, owned by a college or university and used as the home of its chief executive officer, is exempt from taxation, whether or not located on the campus of the college or university, if the chief executive officer of the institution is required to reside there as a condition of employment.
  3. (c)
    1. (1) Residential units owned by a nonprofit college or university or nonprofit secondary school that boards all or some of its students and located on or immediately adjoining its campus are exempt from taxation, if such residential units meet all of the following criteria:
      1. (A) The unit is occupied by a member of the faculty or staff of the institution;
      2. (B) Such occupancy is required as a condition of that person's employment as a convenience for the institution or to attend to plant or equipment;
      3. (C) The institution that owns the unit receives no income from the unit except a reasonable service and maintenance fee;
      4. (D) The employee occupying the unit receives no equity of ownership or any other thing of permanent or transferable value from occupancy of the unit;
      5. (E) The right of the employee to occupy the unit ends with such employee's tenure on the faculty or staff of that institution; and
      6. (F) The unit is occupied wholly by the employee and the employee's immediate family.
    2. (2) The exemption from taxation provided by this section to a nonprofit college or university or nonprofit secondary school that boards all or some of its students applies only to a number of residential units equal to those owned by the college or university or private school as of July 1, 1981, plus five (5) residential units per institution in addition to those already owned by that institution. The limitation of exemption of this subdivision (c)(2) to the residential units owned by a nonprofit college or university or nonprofit secondary school in 1981, plus five (5) residential units shall not apply to an institution chartered before 1930, whose entire original campus is an historical and integral entity, so long as the residential units owned by such nonprofit college or university or nonprofit secondary school satisfy the criteria of subdivision (c)(1).
    3. (3) This subsection (c) does not apply to any institution in any county having a population of not less than two hundred fifty-four thousand (254,000) nor more than two hundred fifty-five thousand (255,000), according to the 1970 federal census or any subsequent federal census.
  4. (d)
    1. (1) A bookstore, owned by a college or university, located on the campus of the owning institution, and operated not-for-profit to furnish students at that institution with textbooks and other ancillary required materials is exempt from taxation, even though the bookstore may sell other items of a souvenir nature, such as wearing apparel, glassware, and china embossed with the name, seal or logo of the institution, or items such as toiletries or stationery supplies for the convenience of students.
    2. (2) This subsection (d) does not apply to any institution in any county having a population of not less than two hundred fifty-four thousand (254,000) nor more than two hundred fifty-five thousand (255,000), according to the 1970 federal census or any subsequent federal census.
  5. (e) This section applies only to nonprofit educational institutions.
Backlinks (3)
History (7)
  • Acts 1973, ch. 226, § 5
  • 1981, ch. 296, § 1
  • 1981, ch. 486, §§ 1-3
  • T.C.A., § 67-514
  • Acts 1984, ch. 809, § 2
  • 1993, ch. 168, §§ 1, 2
  • 1995, ch. 163, § 1.
§ 67-5-214. Cemeteries and monuments.
  1. (a) Places of burial used as such, monuments of the dead and all nonprofit cemeteries shall be exempt from taxation.
  2. (b)
    1. (1) There shall also be exempt from taxation any real property owned by cemeteries operated on a for-profit basis that has been prepared and is being held for burial purposes; provided, that the amount of such property shall not exceed the reasonable expectation of public needs.
    2. (2) Cemeteries shall be required to apply for exemption and obtain approval of exemption by the state board of equalization, if charges are imposed for use of burial plots.
Backlinks (1)
History (4)
  • Acts 1973, ch. 226, § 5
  • 1980, ch. 689, § 1
  • T.C.A., § 67-515
  • Acts 1994, ch. 541, § 9.
§ 67-5-215. Personal bank accounts and other personal property.
  1. (a) The entire amount of money deposited in an individual's personal or family checking or savings account and seven thousand five hundred dollars ($7,500) worth of personal household goods and furnishings, wearing apparel and other such tangible personal property in the hands of a taxpayer shall be exempt from taxation.
  2. (b) Where such property is owned jointly by a husband and wife, the exemption shall be fifteen thousand dollars ($15,000) and any exemption applying to any minor child of the family living at home and not used by the minor child personally may be applied to the total family household goods and furnishings, wearing apparel, and other such tangible personal property used by the family in common.
History (5)
  • Acts 1973, ch. 226, § 5
  • 1977, ch. 133, § 1
  • 1978, ch. 902, §§ 1-4
  • T.C.A., § 67-516
  • Acts 1984, ch. 793, § 1.
§ 67-5-216. Growing crops — Livestock and poultry — “Aged whiskey barrel” defined.
  1. (a) All growing crops of whatever kind, including, but not limited to, timber, nursery stock, shrubs, flowers, and ornamental trees, the direct product of the soil of this state or any other state of the union, in the hands of the producer or the producer's immediate vendee, and articles manufactured from the produce of this state, or any other state of the union, in the hands of the manufacturer, shall be exempt from taxation.
  2. (b)
    1. (1) All livestock and poultry of whatever kind in the hands of the producer or the producer's immediate vendee shall be exempt from taxation.
    2. (2) “Immediate vendee” is limited to farm use and does not include any person using such products in meat processing.
  3. (c)
    1. (1) “Articles manufactured from the produce of this state, or any other state of the union, in the hands of the manufacturer” include and have always included aged whiskey barrels during the time in which such barrels are owned or leased by a person that produces or manufactures whiskey in those barrels.
    2. (2) For purposes of this subsection (c), an “aged whiskey barrel” is defined as a barrel that:
      1. (A) Is comprised of the timber of this state, or any other state of the union;
      2. (B) Contains, or has contained, whiskey; and
      3. (C) Has changed, or will change, in form or appearance as a result of the unique process of aging whiskey.
    3. (3) For purposes of this subsection (c), “whiskey” has the same meaning as the term “whisky” as defined in 27 CFR 5.22(b) and includes all products identified as “whisky” in 27 CFR 5.22(b).
History (4)
  • Acts 1973, ch. 226, § 5
  • 1977, ch. 84, § 1
  • T.C.A., § 67-517
  • Acts 2018, ch. 971, § 1.
§ 67-5-217. Property in transit.
  1. (a) Tangible personal property that:
    1. (1) Is moving in interstate commerce through or over the territory of this state; or
    2. (2) Was consigned to a warehouse within this state from outside this state, for storage, in transit, to a final destination, whether specified when transportation begins or afterwards, that is also outside this state,
    3. shall be deemed not to have acquired a situs in this state for purposes of ad valorem taxation.
  2. (b)
    1. (1) Tangible personal property transported to a plant, warehouse or establishment within this state, from outside this state, for storage or repackaging, and held for eventual sale or other disposition, other than at retail, to a destination, whether specified when transportation begins or afterwards, that is outside this state, shall be deemed not to have acquired a situs within this state for purposes of ad valorem taxation.
    2. (2) In the event such tangible personal property mentioned in subdivision (b)(1) is held for sale or eventual disposition to destinations both within and without this state, then this exemption shall be applicable to that percentage of the value of such tangible personal property, in the same proportion that sales or other dispositions to final destinations outside of this state, during the preceding year, bears to the total sales or dispositions of such tangible personal property during such preceding year.
Backlinks (1)
History (2)
  • Acts 1973, ch. 226, § 5
  • T.C.A., § 67-518.
§ 67-5-218. Historic properties.
  1. (a)
    1. (1) There shall be exempt from property taxation the value of any improvement made to or restoration of any structure included within title 4, chapter 11, part 2, or that is certified by a historic properties review board, as provided for in subdivision (a)(2), when the improvement or restoration is necessitated by:
      1. (A) Any comprehensive plan for the development of a district or zone authorized in § 13-7-401;
      2. (B) The official preservation plan of the state of Tennessee as required by United States Public Law 89-665 (16 U.S.C. § 470);
      3. (C) Any other federal or state plan of development or redevelopment that includes the preservation and restoration of structures covered by this section; or
      4. (D) The agreement of the owner of an individual structure to restore such structure in accordance with guidelines specified by a historic properties review board, as provided for herein, and to refrain from significantly altering or demolishing such structure during the period of exemption.
    2. (2)
      1. (A) The chief administrative officer of each county shall appoint a historic properties review board for that jurisdiction, to be approved by a majority vote of the county governing body.
      2. (B) The review board shall consist of at least five (5) members of whom at least one (1) shall be an architect, if resident in the county, who is a member of the American Institute of Architects or meets the membership qualifications of that body, one (1) shall be a member of the local planning commission, and one (1) shall be the county historian, a member of the county historical commission, or a member of the county historical society.
      3. (C) The review board shall formulate criteria for certification of historic properties with the assistance of the Tennessee historical commission, and subject to review and comment by the state preservation officer.
    3. (3) All structures, except those on the Tennessee or National Register of Historic Places, whose owners seek to benefit from this section, shall be certified in accordance with these criteria. The exemption of any structure certified in accordance with this section, wherever located, shall also include any structure or residence used in the management or care of such historical structure. Any structure one hundred seventy-five (175) years of age or older shall be presumed to meet the criteria on the basis of age alone, any structure one hundred twenty-five (125) years of age or older shall be presumed to meet the criteria, unless established otherwise, and any structure seventy-five (75) years of age or older shall be assumed to meet the criteria subject to individual review.
    4. (4)
      1. (A) Such exemptions shall continue in effect for ten (10) years in the case of a partial or exterior restoration or improvement, as determined by the review board, and fifteen (15) years in the case of a total restoration, as determined by the review board.
      2. (B) At the end of the applicable period, the structure shall be assessed and taxed on the basis of its full market value.
      3. (C) If any structure receiving an exemption under this section is demolished or significantly altered, as determined by the review board, during the period of exemption, the exemption of the improved value will immediately end and the owner shall be liable at that time for any difference between the tax paid and the tax that would have been due on such improved value.
      4. (D) The exemptions and restrictions provided for in this section shall apply to the structure itself and pass with its title.
    5. (5) Exemptions may be made in all counties in accordance with subdivisions (a)(1)-(4) for property that would be exempt under § 67-5-212.
  2. (b) This section shall only apply to counties having a population of two hundred thousand (200,000) or more, according to the 1970 federal census, or any subsequent federal census, it being the finding of the general assembly that redevelopment pressures are greater on historic structures in heavily urbanized areas.
  3. (c)
    1. (1) This section shall apply only to those counties that, by a majority vote of the governing body of the county, choose to come under its provisions.
    2. (2) Any incorporated municipality that desires to come under the provisions of this section may do so separately by a majority vote of its governing body. In that event, however, only the territory within the corporate bounds of the municipality shall be affected by this section.
Backlinks (1)
History (4)
  • Acts 1976, ch. 826, §§ 2-4
  • 1978, ch. 621, § 1
  • 1980, ch. 697, §§ 1, 2
  • T.C.A., §§ 67-519 — 67-521.
§ 67-5-219. Airport runways and aprons.
  1. There is exempt from the property tax so much of the real property of private public use airports as is shown to be used for airport runways and aprons. For the purposes of this section, such runways and aprons shall be deemed to be property used exclusively for public or corporation purposes.
Backlinks (2)
History (3)
  • Acts 1978, ch. 680, § 1
  • T.C.A., § 67-522
  • Acts 1984, ch. 815, § 1.
§ 67-5-220. Property held in foreign trade zone.
  1. Tangible personal property imported from outside of the United States and held in a foreign trade zone or foreign trade subzone, as defined in title 7, chapter 85, for the purpose of sale, manufacture, processing, assembly, grading, cleaning, mixing or display shall be exempt from Tennessee ad valorem taxation while held in the foreign trade zone or subzone and thereafter, if the property is then exported from the foreign trade zone or subzone directly to a location outside of Tennessee.
History (2)
  • Acts 1983, ch. 223, § 1
  • T.C.A., § 67-523.
§ 67-5-221. Property owned by a charitable organization for low-income housing.
  1. (a) Subject to the application requirements of § 67-5-212, land, including buildings on the land, owned by a charitable institution and held for the purpose of constructing one (1) or more single family dwellings to be conveyed for use as the residence of a low-income household as defined in § 13-23-103, shall be exempt during the period of its ownership by the charitable institution until the date it is conveyed to the adult head of the low-income household, but not to exceed the periods established in subsections (b) and (c). The effective date of exemption shall be determined under § 67-5-212. If a dwelling is not constructed and conveyed as provided in this section within such periods, the property shall be encumbered by the full amount of taxes together with penalties and interest that would otherwise have been due.
  2. (b) If the property purchased is a single lot on which only a single family home may be constructed, the property is exempt for a period not to exceed eighteen (18) months.
  3. (c) If the property is planned for subdivision into multiple single family lots according to plans filed by the organization, the period of exemption shall be eighteen (18) months plus six (6) months for each additional lot planned beyond the first. If a lot is not developed as planned, a proportionate share of taxes that would have been due upon the lot, including delinquency penalties and interest, shall accrue from the date of acquisition of the property by the organization. Taxes shall accrue on individual lots within a multi-lot development at the time each lot is conveyed as provided in this section.
  4. (d) This section shall be implemented in any county upon the adoption of a resolution by two-thirds (⅔) vote of the county legislative body.
History (2)
  • Acts 1995, ch. 209, § 1
  • 2010, ch. 889, § 1.
§ 67-5-222. Historic properties owned by charitable institutions.
  1. (a) Subject to the application requirements of § 67-5-212, property owned by a charitable institution shall have a one hundred percent (100%) exemption from property taxation, if the property is:
    1. (1) On the National Register of Historical Places;
    2. (2) Used for occasional rentals that last for no more than two (2) days at a time per event;
    3. (3) Not rented out more than one hundred eighty (180) days per year, and the proceeds received from such rental periods must be used solely for the purposes of defraying the maintenance and upkeep of such property; and
    4. (4) Has been owned and maintained by the charitable institution for at least ten (10) years prior to application for the exemption.
  2. (b) The owner of such qualified property shall submit a comprehensive preservation and maintenance plan to the historic properties review board that demonstrates how the property tax savings will be applied to the preservation and maintenance of the property. Such plans shall meet the guidelines established by the historic properties review board.
  3. (c) The tax exemption shall be valid for a ten-year period; however, the owner of the property may apply for additional exemption periods; provided, that an updated preservation and maintenance plan is filed with the historic properties review board in accordance with its guidelines.
  4. (d)
    1. (1) This section shall apply only to those counties that, by a two-thirds (⅔) vote of the governing body of the county, choose to come under its provisions.
    2. (2) Any incorporated municipality that desires to come under the provisions of this section may do so separately by a two-thirds (⅔) vote of its governing body. In that event, however, only the territory within the corporate bounds of the municipality shall be affected by this section.
History (1)
  • Acts 1996, ch. 1027, §§ 2, 3.
§ 67-5-223. Community and performing arts.
  1. (a) Subject to the application requirements of § 67-5-212, property owned by nonprofit community and performing arts organizations and used by them or other nonprofit community and performing arts organizations is eligible for property tax exemption as a charitable or educational use of property upon compliance with this section. Real property owned by such organizations is eligible for exemption to the extent that it is used by nonprofit community and performing arts organizations for public museums, art galleries, performing arts auditoriums and theaters, and any uses necessary and incidental to the foregoing. Personal property owned by such organizations is eligible for exemption to the extent it is used by the organization to equip and operate real property pursuant to this subsection (a). Other personal property, regardless of its location, is eligible for exemption to the extent it is used for business or office operations of the organization or used in shows, exhibits or productions of the organization.
  2. (b) The organization seeking exemption shall meet the following requirements:
    1. (1) The property must be owned and used by a public benefit nonprofit organization established as either a nonprofit corporation or an unincorporated entity operating as an association, a trust or a foundation pursuant to written articles of governance;
    2. (2) The organization must be operated and governed by a board of directors of not less than ten (10) members, all of whom are natural persons, and all powers and affairs of the organization shall be exercised under the authority of the board of directors;
    3. (3) Not more than three (3) members of the organization or its board of directors may be employees of the organization;
    4. (4) Other than as an employee, no member, officer or director shall be compensated for service as such;
    5. (5) Other than for services as an employee, no member, director or officer of the organization, directly or indirectly, may sell or provide, for monetary remuneration, any goods or services to the organization. “Indirectly” means through a business organization of which the employee, member, director or officer of the organization or a spouse, child or parent owns more than a three percent (3%) interest in the business;
    6. (6) No member, director or officer of the organization may lend money to the organization, if the loan is secured by the organization's property;
    7. (7) Other than for services as an employee, no member, director or officer of the organization may profit from shows, exhibits or productions of the organization or have any monetary interest in shows, exhibits or productions of the organization;
    8. (8) In the event the organization sells any of its property that has been exempt from taxation, it must notify the attorney general and reporter of its intent to sell the property at least twenty-one (21) but not more than sixty (60) days before the date of sale;
    9. (9) The articles of governance of any unincorporated organization shall include the provisions set out in this subsection (b) or be specifically incorporated by reference;
    10. (10) The articles of governance of the organization, whether incorporated or not, and all amendments thereto shall be filed with the assessor of property in the county in which the organization owns exempt property. This requirement shall not be construed to override any other existing law as to filing of organizational documents; and
    11. (11) The organization shall annually supply the assessor of property with a report that includes a listing of activities and uses of the property, current statements of financial condition, and such further information as the assessor may require.
  3. (c) This section shall apply only to those counties that approve applicability by two-thirds (⅔) vote of the county governing body, which may impose a requirement of periodic local review or renewal of exemption. The assessor of property shall maintain with the records for the property an estimate of the market value of the property as of the date of the last county-wide reappraisal.
History (3)
  • Acts 1998, ch. 855, § 1
  • 2000, ch. 887, §§ 1, 2
  • 2007, ch. 66, § 1.
§ 67-5-224. Exemption for charitable or nonprofit organizations engaged in economic development.
  1. (a) Subject to the general requirements of § 67-5-212, real and tangible personal property owned and used by a nonprofit economic and/or charitable development organization shall be eligible for property tax exemption as a charitable use of property where the provisions of this section are met. Real and tangible personal property owned by a nonprofit entity, whether charitable or otherwise, which entity is recognized as tax exempt by the internal revenue service and is engaged in economic development, shall be eligible for property tax exemption to the extent such property is used to provide small business counseling and/or shared office and information systems infrastructure for small business development. Tangible personal property owned by a nonprofit charitable organization shall likewise be eligible for property tax exemption to the extent it is used to provide counseling, informational and technical assistance to other charitable organizations in applying for grants.
  2. (b) Any owner of real or personal property claiming exemption under this section shall be required to file an application for exemption with the state board of equalization on the same form and in the same manner prescribed in § 67-5-212(b).
  3. (c) This section shall only apply to counties containing a national laboratory facility or counties immediately adjacent to such counties.
History (1)
  • Acts 2000, ch. 938, § 1.
§ 67-5-225. Family wellness center exemption.
  1. (a) Real and personal property used as a nonprofit family wellness center shall be exempt from property taxes as a charitable use of property, if the center is owned and operated as provided in this section. “Family wellness center” means real and personal property used to provide physical exercise opportunities for children and adults. The property must be owned by a nonprofit corporation that is a charitable institution that:
    1. (1) Has as its historic sole purpose the provision of programs promoting physical, mental, and spiritual health, on a holistic basis without emphasizing one over another;
    2. (2) Provides at least five (5) of the following eight (8) programs dedicated to the improvement of conditions in the community and to support for families:
      1. (A) Day care programs for preschool and school-aged children;
      2. (B) Team sports opportunities for youth and teens;
      3. (C) Leadership development for youth, teens, and adults;
      4. (D) Services for at-risk youth and teens;
      5. (E) Summer programs for at-risk and non-at-risk youth and teens;
      6. (F) Outreach and exercise programs for seniors;
      7. (G) Aquatic programs for all ages and skill levels; and
      8. (H) Services for disabled children and adults; and
    3. (3) Provides all programs and services to those of all ages, incomes and abilities under a fee structure that reasonably accommodates persons of limited means and, therefore, ensures that ability to pay is not a consideration. The corporation must further meet the requirements of subsection (b).
  2. (b) To qualify for exemption, the nonprofit corporation must first be exempt from federal income taxation as an exempt charitable organization under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)), and any amendments thereto. In addition, the nonprofit corporation shall provide that:
    1. (1) The directors and officers shall serve without compensation beyond reasonable compensation for services performed;
    2. (2) The corporation is dedicated to and operated exclusively for nonprofit purposes;
    3. (3) No part of the income or the assets of the corporation shall be distributed to inure to the benefit of any individual; and
    4. (4) Upon liquidation or dissolution, all assets remaining after payment of the corporation's debts shall be conveyed or distributed only in accordance with the requirements applicable to a § 501(c)(3) corporation.
  3. (c) All claims for exemptions under this section are subject to § 67-5-212(b).
  4. (d) Nothing in this section shall prevent property of the corporation other than wellness centers from qualifying under other provisions of law.
History (2)
  • Acts 2000, ch. 982, § 58
  • 2000, ch. 993, § 1.
§ 67-5-226. Museum exemption.
  1. (a) Subject to the applicable requirements of § 67-5-212, real and tangible personal property owned and used by an organization as a museum shall have a one hundred percent (100%) exemption from property taxation, if:
    1. (1) The organization owns the real property for which the exemption is sought;
    2. (2) The organization owning the property is exempted from the payment of federal income taxes by § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3));
    3. (3) The property is located within the limits of an incorporated municipality;
    4. (4) The exempt organization actually operates the museum;
    5. (5) The museum displays local, regional and state crafts and items of historical interest; and
    6. (6) The board members of the organization receive no compensation for their services.
  2. (b) Any owner of real or personal property claiming exemption under this section shall be required to file an application for exemption with the state board of equalization on the same form and in the same manner prescribed in § 67-5-212(b).
  3. (c)
    1. (1) Notwithstanding § 67-5-212 or any other law to the contrary, real property and tangible personal property, owned or possessed by an organization and used exclusively by that organization for an educational museum, shall have a one-hundred-percent exemption from property taxation, if:
      1. (A) The educational museum is located upon land owned by state, county or municipal government, or an agency or entity thereof, including any municipal or regional airport authority;
      2. (B) The educational museum exhibits historic artifacts and other items of historical significance and instruction;
      3. (C) The educational museum is designated, by Tennessee law, as an official state repository and archive;
      4. (D) The organization is exempt from payment of federal income taxes pursuant to § 501(c)(3) of the Internal Revenue Code;
      5. (E) The organization's board members receive no compensation for serving on the board; and
      6. (F) The organization's employees and volunteers actually manage and perform the daily operations and programs of the educational museum.
    2. (2) Any organization claiming exemption under subdivision (c)(1) shall file an application for exemption with the state board of equalization, on the same form and in the same manner as prescribed in § 67-5-212(b).
History (2)
  • Acts 2002, ch. 877, § 1
  • 2005, ch. 500, § 13(c).
§ 67-5-227. Property used for educational programs.
  1. (a) Subject to the requirements of § 67-5-212, tangible personal property owned and used by a nonprofit organization pursuant to the requirements of this section shall be eligible for property tax exemption as an educational use of property. To qualify for the exemption, the property shall be owned by a nonprofit corporation that:
    1. (1) Is exempt from federal income taxation as an exempt organization under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3));
    2. (2) Has as its historic sole purpose the provision of programs that educate youth, teens, and adults about the Congressional Medal of Honor and its local and national recipients, including character development programs for youth in local schools and family development centers that are dedicated to teaching them about the six (6) character traits that the Medal of Honor recipients share, which are courage, commitment, sacrifice, patriotism, integrity, and citizenship;
    3. (3) Provides that the corporation's board members shall serve without compensation; and
    4. (4) Is dedicated to and operated exclusively for nonprofit purposes.
  2. (b) Any owner of tangible personal property claiming exemption under this section shall be required to file an application for exemption with the state board of equalization on the same form and in the same manner prescribed in § 67-5-212(b).
History (1)
  • Acts 2018, ch. 820, § 1.
Part 3 Assessors and Equalizers Generally
§ 67-5-301. Deputies authorized.
  1. Counties, cities and towns are authorized to employ deputy assessors of property, in their discretion, to serve as assistants and advisors to the assessor of property in the assessment of taxes.
Backlinks (2)
History (6)
  • Acts 1947, ch. 209, § 1
  • C. Supp. 1950, § 1446.1 (Williams, § 1418.1)
  • impl. am. Acts 1955, ch. 69, § 1
  • Acts 1963, ch. 286, § 8
  • T.C.A. (orig. ed.), § 67-1706
  • Acts 2008, ch. 971, § 1.
§ 67-5-302. Filing and preservation of oaths.
  1. The clerk of each county shall keep and preserve the oaths prescribed for assessors and deputies in paper, electronic, or digital format.
Backlinks (2)
History (6)
  • Acts 1907, ch. 602, § 36
  • Shan., § 972a6
  • Code 1932, § 1688
  • modified
  • T.C.A. (orig. ed.), § 67-1715
  • Acts 2019, ch. 63, § 1.
§ 67-5-303. Obtaining evidence.
  1. (a)
    1. (1) The assessor, in person or by a deputy, has the power and duty to examine any person believed to have any knowledge or information relating to the assessment of property of any taxpayer.
    2. (2) For such purpose, the assessor has the power to administer oaths and compel any witness to appear and to answer oral or written questions and the power to inspect or require the production of books and papers.
    3. (3) Assessors and their deputies have like powers and perform like duties when there is any reason to suspect any taxpayer has withheld or concealed information concerning any taxable property, or the classification or the value thereof, and such investigation may be performed by questions put to the taxpayer, the taxpayer's agent, attorney, or any other person.
    4. (4) All records held, maintained, or created by county and municipal public agencies must be made available to assessors of property for the purposes of property valuation and all other official duties.
  2. (b) Any witness refusing to appear or to take such oath or make such answers, when called upon by the assessor to do so, commits a Class C misdemeanor.
  3. (c) Any person falsely, corruptly, or knowingly misrepresenting any material statement made as a witness to such assessor or deputy assessor commits perjury and is subject to indictment for the same.
  4. (d)
    1. (1) The assessor or deputy assessor shall reduce to writing all statements made by the owner of any property interest or witness under this section, and such statement shall be filed and maintained in the office of the assessor for a period of not less than three (3) years or the end of the then current reappraisal cycle, whichever is greater.
    2. (2) Information obtained pursuant to this section shall be confidential and shall not be disclosed by state or local officials, agents or employees, except as authorized by this part. Violations of confidentiality as provided herein shall be punishable in the same manner as violations of § 67-5-401 regarding taxpayer records of the department of revenue. Nothing in this section shall be construed to make evidence introduced by a party in court or administrative proceedings confidential, unless otherwise provided in a protective order issued by the judge in the proceedings.
    3. (3) Pursuant to rules of the state board of equalization, information otherwise confidential may be disclosed to:
      1. (A) The taxpayer or the taxpayer's authorized designee, upon written request;
      2. (B) Individuals designated by a judge presiding in court or administrative proceedings, subject to protective orders issued in the proceedings;
      3. (C) Officials, and their agents or employees, responsible for the administration or collection of taxes due from the taxpayer, but only to the extent necessary for this purpose and subject otherwise to the confidentiality required by this section.
  5. (e) The assessor and agents or employees of the assessor have the authority to go upon land in order to obtain information for the assessment of property. If the landowner refuses or objects to entry upon the land, the assessor may petition the circuit or chancery court for an order allowing entry at a specified time for purposes of appraising the land and improvements for assessment purposes. The assessor and agents or employees of the assessor may enter a building that is under construction and not yet secured or occupied, for the purpose of making a correct assessment of the property, whether or not the owner has given specific consent to the entry. Once a building is occupied or secured, the assessor and agents or employees of the assessor may enter as an invitee or with the consent of the owner or occupant; provided, that, if unreasonably withheld, the assessor may gain entry on reasonable notice pursuant to an order of the circuit or chancery court.
History (8)
  • Acts 1973, ch. 226, § 6
  • T.C.A., §§ 67-622 — 67-625
  • Acts 1988, ch. 633, § 2
  • 1989, ch. 591, § 113
  • 1996, ch. 845, § 1
  • 2013, ch. 209, §§ 6, 7
  • 2015, ch. 136, § 1
  • 2023, ch. 259, § 2.
§ 67-5-304. Reports to local and state boards of equalization.
  1. (a) The assessor shall make a report of the assessor's assessments and shall make available to the local board of equalization all of the assessor's records pertaining to the area involved on or before the first day the board shall meet.
  2. (b) Each assessor, when making the report of assessments to the local board of equalization as provided in subsection (a), shall accompany the report with the following oath, which shall be taken and subscribed to before the county mayor, or in the county mayor's absence, before a notary public, viz.:
    1. I, , assessor of the county (city) of , state of Tennessee, do solemnly swear (or affirm) that I have assessed all taxable property, in the county (city) of , as far as ascertainable, to the true owners thereof, and that I have determined the classification and assessed valuation of all taxable property as prescribed by law; and that I have faithfully discharged all my duties without fear, favor, or affection to the best of my knowledge and ability, so help me God.
  3. (c) It is the duty of each assessor to compile a report listing the total of all assessments prepared by the assessor's office in such manner and on such forms as may be required by the state board of equalization.
Backlinks (1)
History (4)
  • Acts 1973, ch. 226, § 6
  • T.C.A., §§ 67-629, 67-630, 67-632
  • Acts 2003, ch. 90, § 2
  • 2019, ch. 63, § 3.
§ 67-5-305. Failure to perform — Proceedings against assessor.
  1. (a) It is unlawful for any assessor of property or deputy assessor to willfully fail, refuse or neglect to perform, obey and observe the duties or requirements of this chapter.
  2. (b) It is the duty of the county mayor to report promptly to the district attorney general or to a proper agent of the state any failure, neglect, or refusal of any assessor or deputy assessor to comply with any of the requirements of this chapter and duties as required by law.
  3. (c) If the director of property assessments has cause to believe any assessor of property or deputy assessor has willfully failed, refused or neglected to perform, obey and observe any duties or requirements of this chapter, the director shall notify, in writing, the assessor of property or deputy assessor of the specific instances wherein the director has cause to believe the assessor or deputy assessor has willfully failed to perform.
  4. (d)
    1. (1) After the expiration of at least fifteen (15) days from the date of such notice, if the director has reason to believe that such assessor of property or deputy assessor has not made a satisfactory effort to perform the duties or requirements of this chapter, the director shall request the state board of equalization to convene in the taxing jurisdiction of the assessor of property or deputy assessor for the purpose of conducting a hearing to determine whether or not the assessor of property or deputy assessor has willfully failed to perform, obey and observe the duties or requirements of this chapter.
    2. (2) If the state board of equalization consents to convene for a hearing of this matter, the assessor of property or deputy assessor shall be provided at least ten (10) days' written notice of the time and place for the hearing, which shall be within the county or taxing jurisdiction of the assessor of property or deputy assessor.
    3. (3) Further, the notice shall set forth the specific purpose for such hearing.
    4. (4) The burden of proof shall be upon the director of property assessments to show that the assessor of property or deputy assessor has willfully failed, refused or neglected to perform, obey and observe the duties or requirements of this chapter, and the rules of evidence applicable to proceedings before the chancery court in Tennessee shall be followed by the state board in such hearing.
    5. (5) The assessor of property or deputy assessor shall be entitled to be heard, either personally or by counsel, and shall have the privilege of introducing any competent evidence.
    6. (6) Any action of the state board of equalization shall be final and conclusive, subject to judicial review by petition of certiorari to the appropriate chancery court.
    7. (7) If the assessor of property or deputy assessor is found innocent of the charges against such assessor or deputy assessor in chancery court, the board shall be required to pay the costs of such proceeding.
  5. (e)
    1. (1) Upon a finding by the state board of equalization that any assessor of property or deputy assessor has willfully failed, refused or neglected to perform, obey and observe the duties or requirements of this chapter, the board shall notify the county mayor or such other county official as may be necessary of such failure to perform, obey and observe the duties or requirements of this chapter, and the issuance of any warrant for compensation to such assessor of property or deputy assessor shall be discontinued until a determination is made by the board that such assessor of property or deputy assessor has made a satisfactory effort to perform, obey and observe the duties or requirements of this chapter.
    2. (2) Further, such assessor of property or deputy assessor shall not be reimbursed for such period of time as is determined by the board that such person has willfully failed, refused or neglected to perform, obey and observe the duties and requirements of this chapter.
    3. (3) If the board causes the compensation of any assessor of property or deputy assessor to be discontinued and the assessor or deputy assessor is subsequently held to be innocent of the charges against the assessor or deputy assessor, the assessor or deputy assessor shall then be reimbursed for the full amount withheld from the assessor or deputy assessor, plus interest at the rate of seven percent (7%) a year.
  6. (f) If a finding is made by the board that any assessor or deputy assessor has willfully failed to perform the duties and requirements of this chapter, and such assessor or deputy assessor files a petition of certiorari to chancery court to review the action within thirty (30) days of the date the assessor or deputy assessor is notified of the action of the board, no compensation of such assessor or deputy assessor shall be withheld until the appropriate chancery court has rendered a final decision on the matter.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 6
  • T.C.A., §§ 67-633 — 67-638
  • Acts 2003, ch. 90, § 2.
§ 67-5-306. Fines and penalties.
  1. (a) It is unlawful for any assessor or deputy assessor willfully or knowingly to assess any property subject to taxation in the names of or in the initials of any other than the person to whom the property should be lawfully assessed. Each violation of this subsection (a) is a Class C misdemeanor.
  2. (b) It is unlawful for any assessor or deputy assessor willfully or knowingly to permit or allow any property subject to taxation to be or remain unassessed or omitted from assessment, or willfully or knowingly to assess any property at less than the percentage of value required by law. Each violation of this subsection (b) is a Class C misdemeanor.
  3. (c) Each assessor or deputy assessor or member of the county board of equalization who violates, neglects, or fails, or refuses to comply with any of this chapter or chapter 1 of this title, unless otherwise expressly made punishable as a misdemeanor, shall pay and forfeit to the state the sum of not less than fifty dollars ($50.00) nor more than one hundred dollars ($100) for each offense, which penalty shall be recovered of the offender and sureties on such person's bond, in the case of assessors and deputies, and of the members of the board of equalization personally, in any court of record in the county or before any general sessions court of the county, by motion on five (5) days' notice or by suit instituted for the purpose.
  4. (d) It is the duty of the district attorneys general, upon the information or at the request of any reputable citizen of the state, to investigate and prosecute, ex officio, all the offenses defined in subsection (c).
  5. (e) It is the duty of each district attorney general, county auditor, and county mayor, when such person learns, or has reasonable grounds to believe, that subsection (c) has been violated, to institute proceedings by motion or suit to recover the penalties prescribed.
  6. (f) It is unlawful for any assessor or deputy assessor or any member of any county board of equalization to draw or receive any compensation for services, or for any county mayor to issue any warrant for the same, until such assessor or deputy assessor or member of such board shall have fully kept and performed each and every one of the requirements of subsection (c), and the failure to keep and perform any of the same shall be held and deemed a waiver of any right to any compensation for services.
  7. (g) Any county mayor or county clerk, or district attorney general, or county auditor, who fails, neglects, or refuses to obey and observe the requirements imposed by subsection (c) commits a Class C misdemeanor.
Backlinks (3)
History (8)
  • Acts 1907, ch. 602, §§ 33-35, 37
  • Shan., §§ 972a2-972a5, 972a8
  • mod. Code 1932, §§ 1684-1687, 1689
  • modified
  • Acts 1973, ch. 226, § 6
  • T.C.A. (orig. ed.), §§ 67-641, 67-642, 67-1710 — 67-1714
  • Acts 1989, ch. 591, § 113
  • 2003, ch. 90, § 2.
§ 67-5-307. Informal review of assessments.
  1. Assessors may provide taxpayers with an informal review of assessments made pursuant to § 67-5-504 or made during a county reappraisal pursuant to § 67-5-1601 if the following requirements are met:
    1. (1) The informal review concludes at least ten (10) days prior to county board of equalization adjournment; and
    2. (2) The assessor informs the taxpayer in writing of the taxpayer's right to appeal to the county board of equalization if dissatisfied with the outcome of the informal review.
History (1)
  • Acts 2019, ch. 63, § 2.
Part 4 State Tax Records
§ 67-5-401. Availability for local use.
  1. (a) In order to facilitate and provide a more uniform method of obtaining information for the use and benefit of assessors of property of the various political subdivisions of the state in equalizing taxes and fixing assessments, the commissioner of revenue is empowered, authorized and directed to open for inspection at any time by any official, body or commission lawfully charged with the administration of the tax laws of any political subdivision of the state, all records, reports, returns and schedules, or excerpts therefrom, filed by taxpayers with the department of revenue pursuant to present laws or those hereafter enacted.
  2. (b) Any information thus secured by any official, body or commission of any political subdivision may be used only for the purpose of administration of the tax laws of such political subdivision.
  3. (c) The commissioner shall furnish, upon written request of any official, body or commission of any political subdivision, certified copies of such records, reports, returns or schedules, or excerpts therefrom, as may be requested by such official, body or commission.
  4. (d) The commissioner may promulgate such rules and regulations for the administration of this section and fix such reasonable fees to be charged for furnishing certified copies of any records, reports, returns and schedules, or excerpts therefrom, provided for herein as is deemed necessary in order that the administration of this section may not be an expense to the state.
  5. (e) Any officer, employee or agent of the state, or any political subdivision of the state, who divulges any information acquired through privileges granted under this section, except as authorized or required by this section, or other laws, or when called upon to testify in any judicial or administrative proceeding to which the state or any political subdivision of the state or such state or local official, body or commission, as such, is a party, commits a Class C misdemeanor.
Backlinks (2)
History (6)
  • Acts 1939, ch. 127, §§ 1-5
  • C. Supp. 1950, §§ 1689.1-1689.5
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), §§ 67-1701 — 67-1705
  • Acts 1989, ch. 591, § 113
  • 2008, ch. 971, § 1.
§ 67-5-402. Confidentiality of information.
  1. (a) Apart from a taxpayer's annual reporting schedule filed with the assessor, information required to be filed or submitted by a taxpayer with regard to an assessment of tangible personal property, or provided by a taxpayer in response to an audit or information request by assessing officials or their agents with regard to an assessment of tangible personal property, shall be confidential and shall not be disclosed by state or local officials, agents or employees, except as authorized by this part. Violations of this section shall be punishable in the same manner as violations of § 67-5-401 regarding taxpayer records of the department of revenue.
  2. (b) Pursuant to rules of the state board of equalization, schedules, returns and information otherwise confidential may be disclosed to:
    1. (1) The taxpayer or the taxpayer's authorized designee, upon written request;
    2. (2) Individuals designated by a judge presiding in court or administrative proceedings, subject to protective orders issued in the proceedings;
    3. (3) Officials, and their agents or employees, responsible for the administration or collection of taxes due from the taxpayer, but only to the extent necessary for this purpose and subject otherwise to the confidentiality required by this section; and
    4. (4) The department of human services or its contractors in the Title IV-D child support program pursuant to § 36-5-801.
Backlinks (3)
History (1)
  • Acts 1999, ch. 96, § 1.
Part 5 Classification and Assessment — Miscellaneous Provisions
§ 67-5-501. Definitions.
  1. For purposes of classification and assessment of property:
    1. (1) “All other tangible personal property” includes all tangible personal property, including that used in agriculture, except public utility tangible personal property and commercial and industrial tangible personal property;
    2. (2) “Commercial and industrial tangible personal property” includes personal property, such as goods, chattels and other articles of value that are capable of manual or physical possession, and machinery and equipment that are:
      1. (A) Used essentially and principally for the commercial or industrial purposes or processes for which they are intended; and
      2. (B) If affixed or attached to real property, can be detached without material injury to such real property;
    3. (3) “Farm property” includes all real property that is used, or held for use, in agriculture as defined in §§ 1-3-105 and 43-1-113, including, but not limited to, growing crops, pastures, orchards, nurseries, plants, trees, timber, raising livestock or poultry, or the production of raw dairy products, and acreage used for recreational purposes by clubs, including golf course playing hole improvements;
    4. (4) “Industrial and commercial property” includes all property of every kind used, directly or indirectly, or held for use, for any commercial, mining, industrial, manufacturing, trade, professional, club whether public or private, nonexempt lodge, business, or similar purpose, whether conducted for profit or not. All real property that is used, or held for use, for dwelling purposes that contains two (2) or more rental units is hereby defined and shall be classified as “industrial and commercial property”;
    5. (5) “Intangible personal property” includes personal property, such as money, any evidence of debt owed to a taxpayer, any evidence of ownership in a corporation or other business organization having multiple owners, and all other forms of property, the value of which is expressed in terms of what the property represents rather than its own intrinsic worth. “Intangible personal property” includes all personal property not defined as “tangible personal property”;
    6. (6) “Modern market telecommunications provider” means:
      1. (A) An incumbent local exchange telephone company that elects market regulation pursuant to § 65-5-109;
      2. (B) A telephone cooperative organized pursuant to § 65-29-102; or
      3. (C) A nongovernmental entity or separate operating division within the entity if the business activity of the entity or division is limited to providing:
        1. (i) Competitive local exchange telephone services; or
        2. (ii) Interconnected voice over internet protocol services;
    7. (7) “Movable structure” includes a mobile home or such other movable structure that is constructed as a trailer or semitrailer and designed to either be towed along the highways or to be parked off the highways, and that may be used, temporarily or permanently, as a residence, apartment, office, storehouse, warehouse, or for any other commercial or industrial purpose;
    8. (8) “Personal property” includes every species and character of property that is not classified as real property;
    9. (9) “Public utility property” includes all property of every kind, whether owned or leased, and used, or held for use, directly or indirectly in the operation of a public utility, which includes, but is not necessarily limited to, the following business entities, whether corporate or otherwise:
      1. (A) Railroad companies;
      2. (B) Telephone companies other than the following:
        1. (i) Companies providing cellular telephone service as defined in § 65-4-101(6)(A)(vi);
        2. (ii) Companies providing radio common carrier service as defined in § 65-30-103;
        3. (iii) Companies providing long distance telephone service; and
        4. (iv) Modern market telecommunications providers;
        Backlinks (1)
      3. (C) Freight and private car companies that are defined as any business, other than a railroad company, that owns, uses, furnishes, leases, rents or operates to, from, through, in or across this state or any part thereof any kind of railroad car, including, but not necessarily limited to, flat, tank, refrigerator, or similar type cars;
      4. (D) Street car companies;
      5. (E) Power companies, whether hydroelectric, steam, atomic, or other kinds for the transmission of power;
      6. (F) Express companies;
      7. (G) Pipeline companies;
      8. (H) Gas companies;
      9. (I) Electric light companies;
      10. (J) Water and/or sewerage companies;
      11. (K) Motor bus and/or truck companies holding a certificate of convenience and necessity or contract hauler's permit from the department of safety or the federal highway administration and domiciled in this state and/or owning or leasing real or personal property located in this state;
      12. (L) Taxicab, transit and limousine companies;
      13. (M) Commercial air carrier companies holding a certificate of convenience and necessity from the department of transportation, civil aeronautics board, federal aviation administration, or any other federal or state regulatory agency; excepting those companies whose operations are solely chartered operations; and
      14. (N) Water transportation carrier companies which operate boats and barges over the waterways of this state for hire, which are registered for these purposes with the United States army corps of engineers or any other federal or state agency and which are domiciled in this state or own or lease real or personal property located in this state; provided, that the portion of property of these companies used for water carriage that was exempt from regulation by the interstate commerce commission under federal law in effect on November 1, 1995, shall not be considered public utility property for classification and assessment purposes;
    10. (10)
      1. (A) “Real property” includes lands, tenements, hereditaments, structures, improvements, movable property assessable under § 67-5-802, or machinery and equipment affixed to realty, except as otherwise provided for in this section, and all rights thereto and interests therein, equitable as well as legal;
      2. (B) Real property includes, but is not limited to, the following:
        1. (i) Surface, underground or elevated railroads, and railroad structures, substructures and superstructures, tracks and the metal thereon, branches, switches and other improvements or structures permitted or authorized to be made in, upon, or under any public or private property;
        2. (ii) Telephone, broadcast, transmission and telegraph poles, supports, conduits, towers and enclosures for electrical conductors upon, above and underground and pipes and conduits used for wire, cables and lines buried underground, except for underground conduits and enclosures for wire, cables, lines and similar facilities owned, leased or used to provide services pursuant to the terms and authority of a franchise license issued by an appropriate franchising authority in accordance with § 7-59-102. This subdivision (10)(B) shall not operate to change the classification of any radio or television broadcast property that was assessed as tangible personal property for the tax year 2003;
        3. (iii) Mains, pipes, pipelines and tanks permitted or authorized to be built, laid or placed in, upon, or under any public or private street or place for conducting steam, heat, water, oil, electricity or any property, substance or product capable of transportation or conveyance therein or that is protected thereby, excluding propane tanks for residential use and above ground storage tanks that can be moved without disassembly and are not affixed to the land; and
        4. (iv) Bridges, wharves, piers, boat docks, boat houses, marinas and other similar structures that are attached to real property by anchors, cables, wires, ramps, pillars, poles, foundation, or connected with any one (1) utility service, such as electricity, natural gas, water or telephone; provided, that nothing in this subdivision (10)(B) shall be construed to include boats temporarily connected with any utility service, or floating dry-dock equipment or boat lifts;
    11. (11) “Residential property” includes all real property that is used, or held for use, for dwelling purposes and that contains not more than one (1) rental unit. All real property that is used, or held for use, for dwelling purposes, but that contains two (2) or more rental units, is defined and shall be classified as “industrial and commercial property”;
    12. (12) “Revised assessment” means the correction of an error or omission in the assessment roll so long as the trustee or the municipal collector retains control of the tax roll book; and
    13. (13) “Tangible personal property” includes personal property such as goods, chattels, and other articles of value that are capable of manual or physical possession, and certain machinery and equipment, separate and apart from any real property, and the value of which is intrinsic to the article itself.
Backlinks (6)
History (15)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 467, §§ 2, 3
  • 1982, ch. 774, §§ 1, 2
  • T.C.A., § 67-601
  • Acts 1984, ch. 832, § 5
  • 1989, ch. 312, § 3
  • 1995, ch. 305, § 121
  • 1997, ch. 109, § 1
  • 1999, ch. 198, § 1
  • 2000, ch. 571, § 2
  • 2004, ch. 719, § 1
  • 2006, ch. 521, § 1
  • 2017, ch. 351, § 1
  • 2017, ch. 490, §§ 1, 2
  • 2024, ch. 781, § 2.
§ 67-5-502. Place and function of assessment.
  1. (a) The function of assessment shall be to assess:
    1. (1) All property, except such property as shall be assessed by the comptroller of the treasury, to the person or persons owning or claiming to own the same on January 1 for the year for which the assessment is made, if known and, if not, to unknown owners; provided, that any temporary improvement, or movable structures that are assessable under § 67-5-802, regardless of ownership, shall be assessed as real property as an improvement to the land where located;
    2. (2) The property held by executors and administrators in the county, district or ward in which the decedent resided at the time of the death until such have been distributed; but, if the deceased lived in another state, then the property shall be assessed where the personal representative resides; and
    3. (3) Personal property held by trustees and guardians of minors and severely and persistently mentally ill persons to each guardian or trustee in the county, ward or district where such minor, or severely and persistently mentally ill person resides, if a resident of the state; and, if a nonresident, then in the county, ward or civil district in which the guardian or trustee resides; provided, that guardian held property shall be assessed in the county where the guardian having control thereof renders such guardian's annual settlement.
  2. (b) The property of all street railroad, gas, electric light companies, modern market telecommunications providers, and all public utility companies, including their franchises, used within any town, city, or taxing district where the office of the company is located outside of such incorporated city or town or taxing district, but with the main property within the city, shall be taxed in the city, town, or taxing district as if the office was situated within the city limits, and the property, including franchises of the corporations and joint stock companies that lie wholly or mainly within any incorporated city, taxing district, or town, or whose chief business is within any incorporated city, taxing district, or town, shall be assessed for taxation in such city, taxing district, or town; provided, that all real property and tangible personal property shall be taxed in the district where situated; and provided further, that public utility property of every kind, whether real property, tangible personal property, or intangible personal property, shall all be assessed for taxes at fifty-five percent (55%) of its value and that all property of modern market telecommunications providers shall be assessed at the rate applicable to commercial and industrial property of the same type.
  3. (c) Leased personal property used by a public utility company or modern market telecommunications provider shall be assessed to such company or provider, unless such property is the subject of a lawful agreement between the lessee and this state or a local government, or instrumentality thereof, for payments in lieu of taxes. Other leased personal property shall be classified according to the lessee's use and assessed to the lessee, unless such property is the subject of a lawful agreement between the lessee and this state or a local government, or instrumentality thereof, for payments in lieu of taxes. Personal property that is leased to and used by any religious, charitable, scientific, or nonprofit educational institution purely and exclusively for one (1) or more of the purposes for which the institution was previously determined to be exempt under § 67-5-212 shall not be deemed to be used in a business or profession, and shall not be classified as industrial or commercial property for property tax purposes.
  4. (d) All mineral interests and all other interests of whatever character, not defined as products of the soil, in real property, including the interest that the lessee may have in and to the improvements erected upon land where the fee, reversion, or remainder therein is exempt to the owner, and which interest or interests is or are owned separately from the general freehold, shall be assessed to the owner thereof, separately from the other interests in such real estate, which other interests shall be assessed to the owner thereof, all of which shall be assessed as real property, unless the lessee's or a sublessee's interest in any such real property, including any improvements erected upon the land, is the subject of a lawful agreement between a lessee and this state or a local government, or instrumentality thereof, for payments in lieu of taxes, entered into or amended on or after April 30, 2019, in which case such property shall be assessed solely to such governmental entity and shall be subject to all applicable exemptions.
    Backlinks (3)
  5. (e) Notwithstanding contrary provisions of law, the comptroller of the treasury may establish a pilot program for assessing leased tangible personal property to the owner/lessor rather than the lessee. Participation in the program shall be voluntary, at the election of owner/lessors who are selected by the comptroller of the treasury to participate based on criteria that optimize savings in the cost of assessment compliance and administration. The comptroller of the treasury may impose a fee to defray the cost of administration. Participants shall be permitted to report leased property centrally in lieu of the schedules otherwise required under § 67-5-903 or § 67-5-904, and the comptroller of the treasury shall be responsible for distributing centrally reported assessments based on situs. Participants may be permitted to claim the business tax credit provided in § 67-4-713 for property taxes paid pursuant to a central assessment, and the credit may be taken at the participant's option either on the return due in the jurisdiction of situs or the jurisdiction from which the lease originated.
Backlinks (1)
History (11)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-602
  • Acts 1990, ch. 1075, § 6
  • 1992, ch. 660, § 1
  • 1995, ch. 305, § 122
  • 1998, ch. 894, § 2
  • 2004, ch. 571, § 1
  • 2004, ch. 667, § 1
  • 2017, ch. 490, § 3
  • 2019, ch. 265, §§ 1, 2
  • 2021 (2nd Ex. Sess.), ch. 1, §§ 7-9.
§ 67-5-503. Classification.
  1. (a) For purposes of taxation, all property shall be classified into three (3) classes, to wit: real property, tangible personal property and intangible personal property, and into such subclasses as may otherwise be established by law.
  2. (b) The ratio of assessment to value of property in each class or subclass shall be equal and uniform throughout the state, and each respective taxing authority shall apply the same tax rate to all property within its jurisdiction.
History (2)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-609.
§ 67-5-504. Assessment date.
  1. (a) All assessments of real property and of personal property shall be made annually and as of January 1 for the year to which the assessment applies, unless otherwise provided for, except that whenever under any plan or program of consolidation of governmental functions of county offices with comparable facilities under any municipal charter, in any county having a population in excess of seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census, it is expedient to fix different assessment dates than those established herein, in order to avoid the destruction of existing municipal fiscal policies, the county assessor in such county may establish assessment activity dates other than those set forth in this title, if approved by ordinance or resolution of the local governing body.
  2. (b) Not later than May 20 of each year, the assessment of all property in the county shall be made by the assessor of property; provided, that the assessment of all property within any municipality shall be completed by the assessor of property not less than forty (40) days prior to the beginning tax due date of the municipality.
  3. (c) Any annexing municipality that makes assessments of taxes shall only assess the tax on real property within the annexed territory if the annexation takes effect prior to January 1 of the year in which the assessment is made.
Backlinks (2)
History (4)
  • Acts 1973, ch. 226, § 6
  • 1983, ch. 430, § 3
  • T.C.A., §§ 67-603, 67-604
  • Acts 2013, ch. 462, § 2.
§ 67-5-505. Forms, schedules, rules.
  1. (a) The state division of property assessments, with the approval of the state board of equalization, shall prescribe the forms and schedules to be used and the records to be kept by each assessor relating to the assessment of property of every kind.
  2. (b)
    1. (1) In determining the ownership, valuation, classification, and assessment of all property of every kind, the assessor shall follow the assessment manuals, instructions, and the rules and regulations approved by the board.
    2. (2) Notwithstanding any provisions of this title to the contrary, no local assessor of property shall be in violation of any rules and regulations promulgated by the board under such provisions of such sections and chapters when the implementation of such rules and regulations cannot be accomplished without official action in some manner by the local governing body of the jurisdiction, and such body has refused to act on a request by the local assessor so as to permit the implementation of the rules and regulations by the local assessor.
  3. (c) Upon a finding by the division that the assessor of property or the county is unable or unwilling to comply with requirements under this part, including rules of the board or submission of any necessary plan of compliance required by the board, the director of the division shall report such finding to the board. The board shall notify the assessor of property and the county mayor of the nature of the noncompliance and shall indicate the action required to correct such noncompliance. If satisfactory action is not taken by the assessor or the county to correct the noncompliance within sixty (60) days from the date that notice of noncompliance is given, the board shall direct the division, and the division shall thereupon be authorized to take such steps as are necessary to ensure compliance with the requirements of this part, and the county found in noncompliance shall reimburse the state for all costs incurred by the state pursuant to this action. If such costs are not reimbursed to the state within forty-five (45) days of the date of an invoice for such costs, the state may recover its costs through the deduction of such costs from any state-shared taxes as identified in § 4-31-105, otherwise due the county.
Backlinks (1)
History (4)
  • Acts 1973, ch. 226, §§ 6, 13
  • T.C.A., §§ 67-605, 67-613
  • Acts 1999, ch. 147, § 1
  • 2003, ch. 90, § 2.
§ 67-5-506. Assistance of state officials.
  1. It is the duty of the chief mine inspector, the state geologist and other state officials, when called upon to do so by the director of property assessments or the state board of equalization, to render assistance to such director or state board, in ascertaining the valuation or classification of any property, or interest therein, to the end that such property may be accurately assessed.
History (2)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-610.
§ 67-5-507. Contracts for advice.
  1. (a)
    1. (1) The governing body of any county, or the governing body of any town or city, is authorized and empowered, in its discretion, to enter into contracts with individuals, firms or corporations to render advice or assistance to the local assessor of property and the local board of equalization in the assessment and equalization of taxes.
    2. (2) Such contracts may provide that such person, firm or corporation shall go over all the tax rolls of the county or city, as the case may be, and examine all taxable property in the county or city, and make recommendations to the assessor of property and to the board of equalization, to the end that all property may be assessed in the correct amount and name of its lawful owner, and that all errors and double assessments on the tax rolls may be eliminated; provided, that the function of the person, firm or corporation rendering such services shall be advisory only, and the final decision as to the amount of assessments and the equalization of assessments shall be made by the assessor of property and the board of equalization as provided by law. Nothing herein shall be construed to apply to assessments that are required to be made by the comptroller of the treasury.
    3. (3) Counties, cities and towns are authorized to enter into such contracts and to appropriate and expend such amounts as may be deemed necessary for such purposes in the discretion of the governing body of the county, city or town involved.
    4. (4) Counties, cities and towns may contract with the state board of equalization, under title 4, chapter 3, part 51, for advice and assistance in the preparation and awarding of the contracts and inspection and approval of services rendered thereunder.
  2. (b) The governing body of any county and the governing body of any city or town are authorized and empowered to enter into joint contracts for such purposes for the employment of corporations, firms or individuals to render the services provided for in this section jointly to the county and to cities or towns located therein. The cost as between the county and the cities and towns located therein shall be in such amounts as may be mutually agreed upon by the governing bodies of the counties, cities or towns.
  3. (c)
    1. (1) No contract entered into by authority of this section shall contain any provisions whereby the person, firm or corporation employed thereunder shall be paid upon a percentage basis, or on any basis whereby the compensation under the contract is in anywise dependent or conditioned upon increasing or reducing the aggregate assessment of property in the county, city or town involved.
    2. (2) Any contract containing a provision whereby the compensation is conditioned upon or measured directly or indirectly by an increase or a reduction in assessments shall be void and unenforceable.
  4. (d) This section shall not be construed to repeal or amend any existing statute with respect to the assessment and equalization of taxes, but shall be supplementary to existing statutes.
  5. (e)
    1. (1) Notwithstanding any of the foregoing, in the event that a county governing body contracts with a person, firm or corporation to examine the tax rolls of the county for personal property, and to give advice and assistance to the county assessor of property regarding personal property identification and valuation, all municipalities in the county that levy a property tax shall share in the cost of such contract and shall contribute their respective share to the county general fund within one (1) year of the execution of the contract. The share of the cost of the county contract for each municipality in the county that levies a property tax shall be a percentage of the cost of the contract based upon the following formula: the percentage that the total amount of the personal property values located within the municipality bear to the total personal property values of the entire county, located both within and outside of the municipal boundaries, times the percentage that the municipal property tax rate bears to the combined county and municipal property tax rate. The property valuation and tax rates used in this formula shall be the latest available at the time of the execution of the contract.
    2. (2) Subdivision (e)(1) does not apply in any county having a charter form of government and having a population in excess of eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census.
Backlinks (2)
History (9)
  • Acts 1947, ch. 209, §§ 1-4
  • C. Supp. 1950, §§ 1446.1, 1446.2 (Williams, §§ 1418.1-1418.4)
  • impl. am. Acts 1955, ch. 69, § 1
  • 1963, ch. 286, § 8
  • T.C.A. (orig. ed.), §§ 67-1706 — 67-1709
  • Acts 1984, ch. 832, § 8
  • 1995, ch. 305, § 123
  • 1998, ch. 949, §§ 1, 2
  • 2008, ch. 971, § 1.
§ 67-5-508. Records and notice of assessment.
  1. (a)
    1. (1) Prior to May 20 of each year, the assessor shall note upon the assessor's records the current classification and assessed valuation of all taxable property within the assessor's jurisdiction; provided, that, in regard to municipalities, the time requirements of § 67-5-504 shall control.
    2. (2) The assessor shall hold such records open to public inspection, at the assessor's office, during normal business hours; and shall, furthermore, cause to be published at least once in a newspaper of general circulation within the assessor's jurisdiction, a notice when and where such records may be inspected, such notice to be published not later than ten (10) calendar days before the local board of equalization begins its annual session. The notice shall be set forth in the publication within distinct and prominent borders, and shall have a width of not less than two (2) regular columns of such newspaper and a depth of at least four inches (4″). The notice shall state the day upon which the county board of equalization will convene, the last day appeals will be accepted, and a warning that failure to appeal the assessment to the county board of equalization may result in the assessment becoming final without further right of appeal.
    3. (3) In addition, at least ten (10) calendar days before the local board of equalization commences its annual session, the assessor or the assessor's deputy shall notify, or cause to be notified, each taxpayer of any change in the classification or assessed valuation of the taxpayer's property. Such notification shall be sent by United States mail, addressed to the last known address of the taxpayer, and shall be effective when mailed. The notification shall show the previous year's assessment and classification and the current year's assessment and classification.
    4. (4) A notation of the date of any notification of a change in classification or assessed valuation, or a dated copy of such notification, shall be included in the records of the assessor; and such records shall be preserved by the assessor for not less than two (2) years.
    5. (5) For the year in which a reappraisal program is completed and the values so determined are approved by the state division of property assessments to be used as the basis for making assessments in any county, any notice showing the appraised value of property and sent to a property owner by any company, which has been employed for the purpose of conducting such reappraisal program, shall be in lieu of the notice herein required to be sent by an assessor of property to a taxpayer whose classification or assessed valuation has been changed; provided, that the assessor of property uses the appraised value as set forth on the notice from the company as the basis for the assessor's assessment; and provided further, that the assessor of property does not change the classification of the property from its former classification.
    6. (6) Further, upon a consolidation of the municipal and other assessment offices within any county with the office of the county assessor of property, as provided in § 67-1-513, the county assessor of property shall not be required to notify each taxpayer within such municipality, unless a change has been made by the county assessor of property from the former classification and assessed valuation that existed on the county tax roll for the preceding year; provided, that the assessor of property shall hold the assessor's records open to public inspection at the assessor's office during normal business hours and shall cause to be published at least once, in a newspaper of general circulation within the assessor's jurisdiction, a notice where and when such records may be inspected. Such notice shall be published not later than ten (10) calendar days before the local board of equalization begins its annual session.
  2. (b)
    1. (1) Should an assessor fail to complete and note upon the assessor's records the assessment of a taxpayer's property prior to May 20, or should an assessor fail to notify a taxpayer, or the taxpayer's agent, of any change in the classification or assessed valuation of the taxpayer's property, such taxpayer shall have no legal basis for complaint; provided, that the assessment against the property is completed, and a notice of any new or changed classification or assessed valuation is sent by United States mail, to the last known address of the taxpayer, at least ten (10) calendar days before the local board of equalization ends its annual session.
    2. (2) In the event an assessor shall fail to complete any assessment, or notify any taxpayer of a change in the classification or assessed valuation of the taxpayer's property, at least ten (10) calendar days before the local board of equalization ends its annual session, such failure shall not affect, in any way, the validity of such assessment, classification or assessed valuation; but an aggrieved property owner shall have the right to appeal directly to the state board of equalization at its next regular session; and no proceedings shall be undertaken to collect any taxes based upon such assessment, or penalty added, until thirty (30) calendar days after the board shall have rendered a final decision on such appeal or complaint. Upon written request of any party, or upon its own motion, the state board of equalization may remand any such complaint or appeal to the local board of equalization.
  3. (c) As an alternative to notice by mail as provided in this section, notice may be sent by email using the email address provided to the assessor by the taxpayer.
  4. (d) An assessor of property may maintain any records as required under this part in an electronic format.
  5. (e) An assessor of property shall notify the register of deeds which records required under this part meet the definition of “permanent records” as defined in § 10-7-301(5).
Backlinks (3)
History (9)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 771, § 14
  • T.C.A., §§ 67-627, 67-628
  • Acts 1984, ch. 832, § 6
  • 1990, ch. 899, § 1
  • 1999, ch. 153, § 1
  • 2013, ch. 209, § 8
  • 2017, ch. 248, § 1
  • 2024, ch. 781, § 1.
§ 67-5-509. Errors — Correction of assessments.
  1. (a) If the tax computed on an erroneous basis of valuation or assessment has been paid prior to certification of the corrected assessment by the assessor, the trustee or municipal collector shall, within sixty (60) days after receipt of such certification from the assessor, refund to the taxpayer that portion of such tax paid that resulted from the erroneous assessment, such refund to be made without the necessity of payment under protest or such other requirements as usually pertain to refunds of taxes unjustly or illegally collected.
  2. (b)
    1. (1) The validity of any assessment or levy of taxes, or proceedings for the equalization, review, or collection of taxes, or for the enforcement of any tax lien, shall not be affected by any defect, error, irregularity or omission in such assessment, levy or proceedings, unless the defect, error, irregularity or omission shall result in a denial of minimum constitutional guarantees.
    2. (2) As used in this subsection (b), “assessment” includes a back assessment, reassessment, or correction of assessment error.
  3. (c)
    1. (1) Whenever the assessor shall discover, or it has been called to such assessor's attention, that there has been an error or omission in the listing, description, classification or assessed value of property or any other error or omission in the tax rolls held by the trustee or municipal collector, the assessor shall certify in writing the facts to the trustee or municipal collector, who shall receive the tax on the corrected assessment and report the difference in the trustee's or municipal collector's errors and releasement list, and shall make such other corrections as such certificate may show right and proper.
    2. (2) The assessor shall certify to the trustee or municipal collector the facts and the reasons for such a change in such assessment, and the tax shall be collected upon the revised assessment.
    3. (3) The state board of equalization may require that a copy of such certification be furnished by the assessor to the executive secretary to the state board of equalization.
  4. (d) Correction of assessments pursuant to this section must be requested by the taxpayer, or initiated by the assessor, prior to March 1, no more than the second year following the tax year for which the correction is to be made. Additional taxes due as the result of a corrected assessment shall not be deemed delinquent until sixty (60) days after the date notice of the corrected assessment is sent to the taxpayer. Once a suit has been filed for the collection of delinquent taxes pursuant to § 67-5-2405, the assessment and levy for all county, municipal and other property tax purposes are deemed to be valid and are not subject to correction under this section.
  5. (e) Should any assessor fail or refuse to correct any error as provided in this section within thirty (30) days after being requested to do so, or should the correction of any error result in an increase in an assessment, any person aggrieved thereby may appeal directly to the state board of equalization and may be assisted or represented in the appeal as provided in § 67-5-1514. Appeal to the board shall be filed within forty-five (45) days after the assessor's failure or refusal to correct the error, or within forty-five (45) days after the assessor sends notice of any assessment change resulting from the correction. If determined by the board that any such error exists, the board shall issue an order certifying the corrected assessment to the trustee or municipal collector.
  6. (f)
    1. (1) An assessor shall correct an error in coding, entry, or transcription of data, if documentation clearly establishes that an error occurred and that the error affected the property's value as of the assessment date. The assessor shall also correct errors in the ownership, location, or physical description of property. An assessor may not revisit, as a correction of error, matters requiring an application of the assessor's judgment, such as the quality of fit or finish in a structure, the degree to which location or depreciation affects property value, or the degree of comparability of a property to others in the relevant market.
    2. (2) On appeal, an owner aggrieved by the assessor's decision with regard to the correction of an error may argue the applicability of this section, including whether the error affected the recorded value, but the appeal may not reopen issues of value generally that should properly have been raised before the county board of equalization.
    3. (3) The assessor's conclusion that a residential duplex was fully available for rent as of the assessment date is not a correctable error absent a demonstrated mistake in coding, entry, or transcription of data. Errors or omissions correctable under this section do not include clerical mistakes in tax reports or schedules filed by a taxpayer with the assessor.
Backlinks (8)
History (10)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 771, § 8
  • 1976, ch. 782, § 13
  • 1977, ch. 262, § 1
  • T.C.A., §§ 67-606, 67-639, 67-640
  • Acts 1984, ch. 662, § 1
  • 1990, ch. 898, § 1
  • 1992, ch. 996, §§ 1, 2
  • 2013, ch. 209, § 9
  • 2015, ch. 193, § 1.
§ 67-5-510. Establishment of county tax rate.
  1. It is the duty of the county legislative bodies, on the first Monday in July, or as soon thereafter as practicable, to fix the tax rates on all properties within their respective jurisdictions for all county purposes, except that in any county having a population in excess of seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census, establishing tax due dates other than the first Monday in October each year, in accordance with § 67-1-701(a), shall have the authority to fix tax rates for all county purposes at dates prior to the first Monday in July.
History (5)
  • Acts 1921, ch. 113, § 19
  • Shan. Supp., § 809a26
  • Code 1932, § 1461
  • Acts 1983, ch. 430, § 1
  • T.C.A. (orig. ed.), § 67-1004.
§ 67-5-511. Fiduciaries' returns.
  1. (a) Persons acting as executors, administrators, guardians, agents, attorneys, clerks of any court, or in any fiduciary capacity whatever, shall make a return of the property, moneys, and effects held or controlled by them in any of such capacities, separate from the individual returns, showing the names of the person or persons for whose use and benefit such is held, and the same shall be listed separately for taxation.
  2. (b) In all cases where any person acting in a fiduciary capacity shall fail, or neglect, or refuse to return to the assessor the schedule of property for taxation as provided for in subsection (a), the assessor may report in writing the fact to the county mayor, who shall cite the person, agent, attorney, firm, officer, officers of the company or corporation before the county mayor, and shall demand of them to answer the questions provided in this chapter, under oath or affirmation, and shall have power to punish for contempt for failure to answer; and, if the refusal to answer is persisted in, the county mayor shall make such an assessment in such cases from the best information that the county mayor can obtain, and such assessment shall be prima facie evidence as to the value and ownership of the property, and the costs accrued under this section shall be paid by and be charged against the taxpayers and upon the property.
History (3)
  • Acts 1973, ch. 226, § 6
  • T.C.A., §§ 67-618, 67-619
  • Acts 2003, ch. 90, § 2.
§ 67-5-512. New counties.
  1. The assessments made by the county assessor or the district assessor, as the case may be, of the new county on the taxable property in the districts or parts of districts that formerly constituted a part of the old county, and which had outstanding indebtedness at the time of the formation of the new county, shall be and constitute the assessment for the old county for the purpose of taxation to pay the debt and the interest thereon; and it shall be the duty of the assessor in and for the new county to furnish the assessments to the assessor of the old county within twenty (20) days after same has been passed upon by the board of equalization of the new county; provided, that the assessment shall be copied by the assessor of the old county in the office of the assessor of the new county, and the copy of such assessment shall be a legal, valid, and binding assessment, when so made, in all respects and to all intents and purposes as is the assessment in the county or counties from which the same is copied.
History (2)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-644.
§ 67-5-513. Sale or termination of business.
  1. (a) If any taxpayer operating for the purpose of making a profit as a business or profession, partnership, joint venture, corporation, limited liability company, manufacturer or other legal entity having personal property, tangible or intangible, assessable by the county assessor or other authority, sells the business, relocates it outside the jurisdiction or terminates it, the taxpayer shall notify the assessor and trustee and make payment within fifteen (15) days after the date of selling, relocating or terminating the business, of any taxes, interest and penalties due and owing and the taxes of the current year in accordance with the assessment records, which shall be based on the last assessment and rate fixed, according to law. The assessor shall certify the assessment to the appropriate collecting officials and the collecting official shall then send a notice of taxes due based on the certification from the assessor and shall accept payment of the amount determined to be owing. Additional taxes due as the result of the certification assessment shall not be deemed delinquent until thirty (30) days after the date notice of the assessment is sent to the taxpayer. Upon the expiration of thirty (30) days the collecting official may pursue collection of such delinquent personal property taxes as provided in § 67-5-2003.
    Backlinks (1)
  2. (b)
    1. (1) The successor, successors or assigns shall be required to withhold a sufficient amount of the purchase money to cover the amount on the assessment records for the current year determined as set forth in subsection (a), and any amount of such taxes, interest and penalties due and unpaid, until such former owner produces a certificate from the assessor stating that such former owner does or does not appear on the assessor's assessment records for the current year and a receipt from the trustee and municipal collector showing that all taxes, interest and penalties have been paid, or a certificate stating that no taxes, interest or penalties are due.
    2. (2) If the purchaser of a business fails to withhold the purchase money as provided in subdivision (b)(1), the purchaser shall not be an innocent purchaser and shall be personally liable, together with the prior owner, for the payment of all personalty taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners or assigns, and for any assessment for the current year based on the last made assessment and the tax rate fixed according to law, and the trustee shall accept tender of the amount determined to be owing.
Backlinks (2)
History (4)
  • Acts 1981, ch. 463, § 1
  • T.C.A., § 67-1723
  • Acts 2013, ch. 353, § 32
  • 2014, ch. 883, § 3.
§ 67-5-514. Telecommunications tower properties.
  1. If owned by a public utility company, telecommunications tower properties used in whole or in part for telecommunications shall be assessable by the comptroller of the treasury. As used in this section, telecommunications tower properties includes the tower, site improvements, land and structures supporting it.
History (2)
  • Acts 2000, ch. 649, § 1
  • 2019, ch. 102, § 1.
§ 67-5-515. Assessment of operating property of municipal or similar provider of broadband services.
  1. Beginning on January 1, 2023, the operating property of a municipal or similar provider of broadband services that provides competitive local exchange telephone services or interconnected voice over internet protocol services through a dedicated telecommunications division and that makes in lieu of tax payments pursuant to title 7, chapter 52, part 4 or 6, or that makes similar in lieu of tax payments pursuant to a private act, and that is currently paying such in lieu of taxes based upon a rate of assessment of fifty-five percent (55%), shall be classified and assessed in the same manner as the operating property of a modern market telecommunications provider for purposes of calculating the in lieu of tax payments to be paid with respect to its operating property used to provide such competitive local exchange telephone services or interconnected voice over internet protocol services.
History (1)
  • Acts 2017, ch. 490, § 14.
§ 67-5-516. Collection procedures for C-PACER program.
  1. When a local government establishes a C-PACER program pursuant to § 68-205-105, the collection procedures must comply with this chapter and shall not otherwise infringe on a taxpayer's right to appeal.
History (1)
  • Acts 2021, ch. 138, § 2.
§ 67-5-517. Use of term “unlisted” in ownership field of online searchable database of property. [Effective January 1, 2023.]
  1. (a) An assessor of property may display “UNLISTED” for the first and last name in the ownership field of an online searchable database of property when the following conditions are met:
    1. (1) The residential property owner files a written request with the assessor to display the ownership field for their property as “UNLISTED”; and
    2. (2) The written request includes sufficient information to clearly demonstrate to the assessor that the subject property is the primary residence of the residential property owner making the request pursuant to subdivision (a)(1).
  2. (b) This section does not prohibit an assessor from responding to an open records request regarding the subject property or from providing other information otherwise available for public inspection through an open records request.
History (1)
  • Acts 2022, ch. 996, § 1.
Part 6 Classification and Assessment — Valuation
§ 67-5-601. General policy — Legislative findings.
  1. (a) The value of all property shall be ascertained from the evidence of its sound, intrinsic and immediate value, for purposes of sale between a willing seller and a willing buyer without consideration of speculative values, and when appropriate, subject to the Agricultural, Forest and Open Space Land Act of 1976, compiled in part 10 of this chapter.
  2. (b) It is the legislative intent that no appraisal under this part shall be influenced by inflated values resulting from speculative purchases in particular areas in anticipation of uncertain future real estate markets; but all property of every kind shall be appraised according to its sound, intrinsic and immediate economic value, which shall be ascertained in accordance with such official assessment manuals as may be promulgated and issued by the state division of property assessments and approved by the state board of equalization pursuant to law.
  3. (c)
    1. (1) The general assembly finds that the increased market value of certain residential property zoned for commercial use has caused an increase in taxes to the extent that citizens are faced with the necessity of selling dwelling houses in which they have lived for many years. The general assembly finds that present use valuation has been extended to others, and is warranted under certain circumstances to relieve the burden of increased taxation to residential owners.
    2. (2) It is the policy of this state that the owners of residential property who have lived on that property for a significant period of time should be allowed to continue to live on that property without a disproportionate increase in taxes due to the property being zoned for commercial use.
    3. (3) For the purposes of this subsection (c):
      1. (A) “Dwelling house” means a residence occupied by the owner of an estate in that property, with such residence being zoned for commercial use, used solely for residential purposes, and occupied by that owner or a person to whom the current owner is a lineal descendant for a period of twenty-five (25) years or more, together with the real estate upon which it is situated up to a maximum five (5) acres; and
      2. (B) “Owner” means a citizen and resident of Tennessee who occupies the citizen's or resident's dwelling house, as opposed to occupying any other residence, for at least nine (9) months out of each calendar year.
    4. (4) Any owner of a dwelling house may make application to the assessor of property of the county in which the property is located for its classification under this subsection (c). Property that has been determined by the assessor of property to qualify under this subsection (c) shall be valued for ad valorem tax purposes at its market value for residential purposes. The assessment on such property shall include the entire year in which the land is classified under this subsection (c). Any person who is denied such classification shall have the same rights and remedies for appeal and relief as are provided taxpayers for any action of assessors of property.
    5. (5) Should the use or ownership of the property change so that it no longer qualifies under this subsection (c), then the property owner shall have the duty of informing the assessor of property. Upon discovering that a property no longer qualifies for classification under this subsection (c), the assessor of property shall reclassify the property and shall value the property according to its current market value for subsequent tax years. In the event such change in use or ownership does not timely come to the attention of the assessor of property, and upon the assessor discovering that the property no longer qualifies, such reclassification shall affect each year that the property has failed to qualify, and the taxpayer shall be liable for the difference in taxes, including penalty and interest.
    6. (6) It is the legislative intent that the twenty-five-year time period is an integral part of this subsection (c). If this provision is held by a court of competent jurisdiction to be an unreasonable classification or otherwise declared unconstitutional, then this entire subsection (c) shall be null and void.
    7. (7) The unmarried spouse of a deceased owner, occupying the dwelling house as a surviving joint tenant or tenant by the entireties, may continue to reside in the dwelling house without disqualifying the property from the benefits of this subsection (c). The term of occupancy by that spouse shall not be deemed to interrupt the twenty-five-year time period required for continued eligibility of the property for the benefits of this subsection (c).
    Backlinks (1)
  4. (d) The general assembly finds that due to the abundance of limestone, sand and gravel in this state and the difficulty in valuing the contributory interest in limestone, sand and gravel that such contributory interest in limestone, sand and gravel shall be deemed to have no value for property tax purposes. This does not affect the commercial classification of real property used for quarry purposes.
  5. (e)
    1. (1) The general assembly finds that any property that generates electricity using green sources such as geothermal, hydrogen, solar or wind, is generally capable of producing less electricity than conventional sources due to uncertain or intermittent energy sources or other factors, that net operating income will be affected by unusual cost and market conditions, and that the commercially competitive disadvantage of these green energy source properties evidences that their sound, intrinsic and immediate value is significantly less than their total installed costs. The general assembly further finds that unless these circumstances are considered in the determination of value for tax purposes under this chapter, investment in property to generate electricity from green sources will be unreasonably discouraged, denying the citizens of Tennessee the environmental benefits associated with the greater use of these domestic renewable energy sources for power generation.
    2. (2) Based on the foregoing findings, the sound, intrinsic and immediate value of green energy source property should not initially exceed a percentage of total installed costs equal to the ratio of projected electricity output over a period of one (1) year to the maximum capacity of the property, as follows:
      1. (A) The sound, intrinsic and immediate value of wind source property should not initially exceed one-third (⅓) of total installed costs;
      2. (B) The sound, intrinsic and immediate value of solar source property should not initially exceed twelve and one-half percent (12.5%) of total installed costs; and
      3. (C) The sound, intrinsic and immediate value of other green source property should not initially exceed its appropriate capacity factor as determined by the state board of equalization in consultation with the department of environment and conservation.
    3. (3) The assessor of property, or the comptroller of the treasury, in the case of public utility property, shall take the foregoing findings into account in determining the sound, intrinsic and immediate value of green source property when the property is initially appraised and each time the property is reappraised. A copy of the green energy production facility certification issued by the department of environment and conservation, or filing of a schedule or statement pursuant to § 67-5-1303, effective as of January 1 of the year for which valuation under this subsection (e) is claimed, shall be required and shall be provided by the property owner to the comptroller's office by March 1 of the first year for which valuation under this subsection (e) is claimed. The department of environment and conservation shall report each month to the comptroller of the treasury a listing of certifications approved in the preceding month, and shall provide copies of certification records to the comptroller of the treasury on request. On or before the scheduled reappraisal in each county, the comptroller of the treasury shall advise the assessor of known locations of certified or other green energy property and whether the property is assessable locally or centrally.
  6. (f) The general assembly finds that any public utility property or commercial and industrial property that is used to engage in the fueling of natural gas vehicles and that is a certified alternative fueling site as described in the definition of “certified green energy production facility” in § 67-4-2004, is generally capable of fueling fewer types of vehicles due to limited availability from original equipment manufacturers, that use of such alternative, domestically produced transportation fuels should be encouraged to improve air quality and to enhance our nation's energy security, and immediate economic value for all purposes under this chapter should not initially exceed thirty percent (30%) of its total installed costs. The general assembly further finds that, unless the findings are considered in the determination of the sound, intrinsic, and immediate economic value of such property for all purposes under this chapter, investment in property for fueling alternative fuel vehicles will be unreasonably discouraged, denying the citizens of this state the environmental benefits and domestic energy security associated with the use of natural gas as a transportation fuel. The assessor of property, in assessing any such commercial and industrial property, or the comptroller of the treasury, in assessing any such public utility property, that engages in the fueling of motor vehicles with natural gas, shall take these findings by the general assembly into account in determining the sound, intrinsic, and immediate economic value of such property, when the property is initially appraised and each time the property is reappraised. A copy of the facility certification issued by the department of environment and conservation shall be required in order to qualify for such valuation. The valuation of personal property under this section shall also apply to machinery and equipment utilized in a natural gas vehicle fueling station. Such equipment shall include, but not be limited to, storage vessels, compressors, dryers, dispensers, piping, compressed or liquefied gas appliances, or any other item that is installed by a natural gas provider.
Backlinks (3)
History (12)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 771, § 8
  • 1976, ch. 782, § 13
  • 1977, ch. 262, § 1
  • T.C.A., § 67-606
  • Acts 1987, ch. 430, §§ 2-4
  • 1994, ch. 786, § 1
  • 1997, ch. 195, §§ 1, 2
  • 2003, ch. 377, § 1
  • 2013, ch. 297, § 1
  • 2013, ch. 423, § 4
  • 2015, ch. 471, § 1.
§ 67-5-602. Assessment guided by manuals — Factors for consideration.
  1. (a) Except as provided in § 67-5-601(c), in determining the value of all property of every kind, the assessor shall be guided by, and follow the instructions of, the appropriate assessment manuals issued by the division of property assessments and approved by the state board of equalization. In the preparation of the manual, the division of property assessments and the state board of equalization shall consult with the United States forest service and the state forester in establishing the guidelines to be used in determining the value of forestland.
  2. (b) For determining the value of real property, such manuals shall provide for consideration of the following factors:
    1. (1) Location;
    2. (2) Current use;
    3. (3) Whether income bearing or non-income bearing;
    4. (4) Zoning restrictions on use;
    5. (5) Legal restrictions on use;
    6. (6) Availability of water, electricity, gas, sewers, street lighting, and other municipal services;
    7. (7) Inundated wetlands;
    8. (8) Natural productivity of the soil, except that the value of growing crops shall not be added to the value of the land. As used in this subdivision (b)(8), “crops” includes trees; and
    9. (9) All other factors and evidence of value generally recognized by appraisers as bearing on the sound, intrinsic and immediate economic value at the time of assessment.
  3. (c)
    1. (1) For determining the value of industrial, commercial, farm machinery and other personal property, such manuals shall provide for consideration of the following factors:
      1. (A) Current use;
      2. (B) Depreciated value;
      3. (C) Actual value after allowance for obsolescence; and
      4. (D) All other factors and evidence of value generally recognized by appraisers as bearing on the sound, intrinsic and immediate economic value at the time of assessment.
    2. (2) Notwithstanding the foregoing, all farm personal property and also all household and kitchen furniture, tableware, musical instruments, wearing apparel, private passenger motor vehicles, jewelry and other personal property of similar character used in the taxpayer's own household, together with all intangible property, including bank accounts, of the taxpayer, may be assumed prima facie by the assessor of property to be of a value not in excess of seven thousand five hundred dollars ($7,500) per individual and fifteen thousand dollars ($15,000) for jointly owned property held by husband and wife in the absence of any tax return or schedule to the contrary.
Backlinks (3)
History (8)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 771, § 8
  • 1976, ch. 782, § 13
  • 1977, ch. 262, § 1
  • T.C.A., § 67-606
  • Acts 1987, ch. 430, § 1
  • 1988, ch. 831, § 1
  • 1995, ch. 362, § 1.
§ 67-5-603. Property damage — Improvements to property.
  1. (a)
    1. (1) If, after January 1 and before September 1 of any year, a building or improvement shall be moved, demolished or destroyed, or substantially damaged by fire, flood, wind or any other disaster, and is not restored and no other improvement is constructed in its place before September 1 of that year, the assessor of property shall make or correct the assessment of such property on the basis of the value of the property after such move, destruction or substantial damage of the improvements, notwithstanding the status of the property as of the assessment date of January 1; provided, that for the year in which such improvement is moved, demolished, destroyed, or so damaged, the assessment of the improvement shall be prorated for the portion of the year prior to the date of such move, destruction or damage. This section shall not apply to the movement of a mobile home or other movable structure as defined in § 67-5-501.
    2. (2) The state, county, or municipal tax collector shall collect taxes on the basis of the revised or corrected assessment as prorated by the assessor.
    3. (3) An improvement shall be deemed substantially damaged when as a consequence thereof it has been rendered unfit for use or occupancy, or when such damage has reduced the value of the improvement by more than fifty percent (50%).
  2. (b)
    1. (1) If, after January 1 and before September 1 of any year, an improvement or new building is completed and ready for use or occupancy, or the property has been sold or leased, the assessor of property shall make or correct the assessment of such property, on the basis of the value of the improvement at the time of its completion, notwithstanding the status of the property as of the assessment date of January 1; provided, that for the year in which such improvement or building is completed, the assessment, or increase in assessment, of the improvement shall be prorated for the portion of the year following the date of its completion.
    2. (2) The state, county or municipal tax collector shall collect taxes on the basis of the revised or corrected assessment as prorated by the assessor.
    3. (3) For the purpose of assessment, an improvement or new building shall be deemed completed and ready for use or occupancy when the structural portion of the building or improvement is substantially completed, even though the interior finish or certain appointments may be left to the choice of a prospective buyer or tenant after consummation of a sale or lease of the property.
    4. (4) Any improvement or new building shall be deemed completed and to have a value for assessment purposes when the real property upon which such improvement or new building is located shall have been conveyed to a bona fide purchaser, or when such new building or improvement has been occupied or used or shall be suitable for occupancy or use, whichever shall first occur. In no event shall any improvement or new building be considered incomplete for valuation or assessment purposes for more than one (1) calendar year immediately following the date on which such construction was commenced.
    5. (5) In the event an improvement or new building shall be considered incomplete for assessment purposes on January 1 of any year, the owner of such improvement or new building shall, not later than February 1 of that year, submit to the assessor of property, in writing, the total cost of all materials used in such incompleted structure as of January 1, and the assessor of property shall assess such incomplete structure as real property, based on the fair market value of the materials used therein. Actual cost of all materials shall be prima facie evidence of the value of such incompleted improvements.
  3. (c) In order to assist assessors of property in locating improvements to property, including new buildings and additions to existing buildings, in counties where building permits are not required, the state director of fire prevention shall each month provide to assessors of property of such counties the names of property owners and location of the property for which electrical inspections have been made. The location of the property shall be given with reference to the assessor's map and parcel identification number. In addition, in counties that do not require building permits, copies of permits for subsurface sewage disposal systems shall be furnished to the assessor of property of the county where such systems are located by the agency issuing such permits.
  4. (d) In the case of damage as a result of a disaster declared by the president of the United States, the annual assessment of an affected building or improvement in a county included in the presidential declaration must be prorated as otherwise provided in subsection (a), for the actual time the building or improvement is destroyed and not replaced, or the actual time the building or improvement is substantially damaged, notwithstanding the building or improvement is restored or replaced by September 1; provided, the total time the building or improvement is destroyed or damaged and not replaced or restored, exceeds thirty (30) days. The owner must apply for this relief to the assessor of property by September 1 using a form approved by the director of the state division of property assessments. This subsection (d) shall not take effect as to any particular county or municipality unless approved by a two-thirds (⅔) vote of its governing body following the disaster being declared by the president of the United States.
Backlinks (2)
History (8)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 555, § 1
  • T.C.A., §§ 67-607, 67-608
  • Acts 1986, ch. 507, § 1
  • 1991, ch. 15, § 1
  • 2010, ch. 1036, § 3
  • 2017, ch. 11, § 1
  • 2023, ch. 259, § 3.
§ 67-5-604. Pollution control facilities.
  1. (a) For purposes of this chapter, “pollution control facilities” means any system, method, improvement, structure, device or appliance appurtenant thereto used or intended for the primary purpose of eliminating, preventing or reducing air or water pollution or for the primary purpose of treating, pretreating, recycling or disposing of any hazardous or toxic waste, solid or liquid, when such pollutants or waste are created as a result of fabricating or processing by the owner, operator or lessee of the pollution control facilities, and that, if released without such treatment, pretreatment, modification or disposal, might be harmful, detrimental or offensive to the public and the public interest.
  2. (b)
    1. (1) The value of qualified pollution control facilities shall, for the purpose of ad valorem property taxation, be deemed to be its salvage value, that is, the estimated fair market value, if any, that could be realized upon the voluntary sale or other disposition of such property when it can no longer be used for the purpose for which it was designed. For purposes of this section, salvage value shall never exceed one-half percent (0.5%) of the acquisition value of such facilities. Facilities may qualify for the valuation provided in this subdivision (b)(1) by obtaining a certificate from the department of environment and conservation, or by such county boards of health as it may designate.
    2. (2) Such certificate shall be issued in the event that the property used for pollution control is in compliance with the applicable rules and regulations adopted pursuant to the various provisions of §§ 68-201-101 — 68-201-116, 68-221-101 — 68-221-206, title 68, chapter 212, part 1 and title 69, chapter 3, part 1.
  3. (c)
    1. (1) Application for a certificate shall be filed with the department or its designated representative, in such a manner and form as may be prescribed by regulations adopted by the department and shall contain specifications of such facilities.
    2. (2) The department shall determine whether such application should be allowed in whole or in part, within thirty (30) days of receipt, and shall approve or disapprove the issuance of the certificate. Upon failure of the department to issue such approval or disapproval within the thirty-day period, the application for certificate shall be considered to be approved.
    3. (3) For purposes of ad valorem taxation, the effective date of the valuation provided in this section shall be January 1, following the date of application.
Backlinks (2)
History (5)
  • Acts 1985, ch. 287, § 2
  • 1991, ch. 503, § 2
  • 1992, ch. 693, § 1
  • 2010, ch. 1134, § 41
  • 2013, ch. 297, § 2.
§ 67-5-605. Assessment of leasehold.
  1. Leasehold interests assessable under § 67-5-502 shall be valued by discounting to present value the excess, if any, of fair market rent over actual and imputed rent for the leased premises, for the projected term of the lease, including renewal options. As an alternative in valuing an interest in residential property, the interests assessable under § 67-5-502(d) may be valued by the sales comparison approach using sales or transfers of similar interests in residential property. By virtue of the speculative nature of valuation of options to purchase, any option that the lessee may be given to purchase the leased premises shall be deemed to have no value. The state board of equalization is authorized to promulgate rules governing the procedure for these valuations.
History (2)
  • Acts 1995, ch. 373, § 1
  • 2008, ch. 802, § 1.
§ 67-5-606. Proration of commercial and industrial property damaged by disaster.
  1. (a) If, after January 1 and before September 1 of any year, commercial and industrial tangible personal property is destroyed, demolished or substantially damaged by fire, flood, wind or any disaster certified by the federal emergency management agency (FEMA), and is not restored and no commercial and industrial tangible personal property is operated in its place before September 1 of that year, the assessor of property shall prorate the assessment of the commercial and industrial tangible personal property for the portion of the year prior to the date of such destruction, demolition or substantial damage.
  2. (b) The state, county, or municipal tax collector shall collect taxes on the basis of the revised or corrected assessment as prorated by the assessor.
  3. (c) In the case of damage as a result of a disaster declared by the president of the United States, the annual assessment of commercial and industrial tangible personal property that is destroyed, demolished, or substantially damaged as a result of being located in a county included in the presidential declaration shall be prorated as otherwise provided in subsection (a), for the actual time the qualifying personal property is not replaced or restored notwithstanding that such personal property is replaced or restored by September 1, if the total time the qualifying personal property is not replaced or restored exceeds thirty (30) days. The owner must apply for this relief to the assessor of property by September 1 of the following year using a form approved by the director of the state division of property assessments. The owner shall provide the assessor of property a listing of the destroyed, demolished, or substantially damaged personal property for which the proration is sought. This subsection (c) shall not take effect as to any particular county or municipality unless approved by a two-thirds (⅔) vote of its governing body following the disaster being declared by the president of the United States.
History (4)
  • Acts 1999, ch. 422, § 1
  • 2010, ch. 1134, § 58
  • 2017, ch. 11, § 2
  • 2023, ch. 259, § 4.
§ 67-5-607. Emergency response frameworks — Joint preliminary damage assessments — Rights of assessors of property.
  1. (a) Countywide emergency response frameworks must include assessors of property at the option of an assessor to monitor events related to disasters or emergencies that have affected or have the potential to affect the condition of real or tangible personal property within individual assessors' jurisdictions.
  2. (b) Assessors of property and county emergency management officials shall coordinate when their respective jurisdictions conduct joint preliminary damage assessments. Final copies of joint preliminary damage assessments must be made available to assessors upon request.
  3. (c) Assessors of property, through coordination with county emergency management officials, have unrestricted rights in the performance of official duties to enter and inspect property within disaster areas to include all property having been affected or potentially affected by disaster or other related events.
History (1)
  • Acts 2023, ch. 259, § 1.
Part 7 Classification and Assessment — Tax Relief
§ 67-5-701. Administrative provisions — Appropriations.
  1. (a) The state board of equalization, through the division of property assessments, shall be charged with the implementation of §§ 67-5-702 — 67-5-704, and shall promulgate all necessary rules, regulations and procedures for their implementation.
  2. (b) “Taxpayer” includes any owner of a mobile home whose mobile home is located on land owned by a taxpayer other than the owner of the mobile home. In the event a mobile home owned by a taxpayer is located on land owned by another individual, the assessor of property shall be required to certify to the division of property assessments the assessed value of such mobile home in order that the amount of taxes to be reimbursed to such taxpayer can be computed.
  3. (c) Property tax relief as provided in this part is obtainable by application submitted to the collecting official using a form approved by the state board of equalization. The collecting official shall make a preliminary determination of eligibility and forward the application to the state for final approval. The collecting official may allow the applicant a credit for the projected amount of property tax relief if the applicant appears from the application to be eligible and submits the balance of property taxes due at the time the credit is given. The collecting official may present evidence of the credit in an approved form to the director of the division of property assessments, who shall thereupon authorize payment to the tax jurisdiction of the amount for which the applicant was credited in taxes. If later processing of the application indicates the applicant was ineligible or the credit was otherwise issued in error, the state shall notify the applicant and the collecting official and may recover the erroneous payment from the tax jurisdiction. The amount represented by the erroneous payment shall thereupon become due and payable by the applicant as property taxes, but the taxes shall not accrue delinquency penalty or interest until sixty (60) days from the date of notification to the applicant.
  4. (d)
    1. (1) All taxpayers otherwise eligible for tax relief under §§ 67-5-702 — 67-5-704, but who fail to apply for a refund or present a credit voucher for credit on their taxes within thirty-five (35) days from the date taxes in the jurisdiction become delinquent for that year, shall be deemed ineligible for such relief for that tax year. Nothing in this subdivision (d)(1) shall be construed to require the payment of the full amount of taxes by the delinquency date as a condition of eligibility for tax relief.
    2. (2) All applications for refunds or presentments of credit vouchers shall be valid only if received in the office of the division of property assessments by May 5 following the last date such applications or presentments may be made or within thirty (30) days from the deadline established in subdivision (d)(1), whichever is later.
  5. (e)
    1. (1) The comptroller of the treasury shall annually estimate the cost of the tax relief program at the current income limit, and shall estimate the annual income limit for eligibility likely to maintain the property tax relief program at a constant level of expenditure, and shall provide these estimates to the department of finance and administration as part of the budget preparation process and, at the same time, provide these estimates to the members of the general assembly.
    2. (2) The comptroller of the treasury may provide the department and the general assembly such other information on program costs or limits as may be desirable or necessary.
    3. (3) If the comptroller determines that annual appropriations will be insufficient to permit full payment of claims reflecting the income and value standards established in this part or in the annual appropriations act, the comptroller shall calculate and apply a factor to uniformly adjust individual payments to permit all timely claims to be paid within the limits of the appropriation. Promptly upon making this determination and calculating the appropriate factor, the comptroller shall notify local collecting officials and the commissioner of finance and administration.
  6. (f)
    1. (1) Under no condition shall any taxpayer receive tax relief for property taxes paid on more than one (1) place of residence for any tax year.
    2. (2) Tax relief shall be provided to only one (1) recipient for a given property for any tax year, per taxing jurisdiction.
  7. (g)
    1. (1) Any taxpayer who willfully provides false information concerning the taxpayer's income or other information relative to eligibility for tax relief shall immediately repay to the state the full amount of any tax relief received as a result of such false information, plus an amount equal to the penalty and interest calculated according to the rates specified in [former] § 67-1-801(b) [repealed].
    2. (2) Any person who received tax relief payments in error for any tax year or years shall repay the state the amount received in error, but there shall be a bar against collection of such repayments, unless demand is made within two (2) years following the due date for the tax year to which the erroneous payments relate. Such person may reapply and may obtain tax relief for a subsequent tax year; provided, that eligibility is established and such person either pays the full amount of repayment due or applies one-half (½) of the tax relief amount for which the person may be eligible to repay the state for amounts received in error until such time as no further repayment is due. The limited liability and right to reapply afforded in this subdivision (g)(2) shall not be available to persons who willfully provide false information concerning eligibility. Repayment shall not be required of a person where the social security administration, the department of human services, the veterans' administration, the railroad retirement board, or some other similar governmental or private entity first determines a person to be eligible for property tax relief but later determines that the person was ineligible.
  8. (h) Other provisions of the law to the contrary notwithstanding, if a taxpayer eligible for tax relief pursuant to § 67-5-702 or § 67-5-703 dies after applying for tax relief or after receiving a voucher, the surviving spouse, and only the surviving spouse, shall be qualified to present to the collecting official the tax relief voucher selected for the deceased and to receive a final payment for the tax year for which the voucher was selected, unless the taxes were paid prior to the taxpayer's death. If the taxes were paid at the time application was made and prior to the taxpayer's death, either the surviving spouse or any duly appointed personal representative of the decedent may receive the payment.
  9. (i) If a governmental entity acquires an interest in real property that divides a contiguous parcel into two (2) or more noncontiguous parcels, then for tax relief purposes pursuant to §§ 67-5-702 — 67-5-704, such noncontiguous parcels shall be considered to be one (1) contiguous parcel. This section shall apply to any such acquisition creating two (2) or more noncontiguous parcels on or after January 1, 1981.
  10. (j)
    1. (1) The legislative bodies of counties, municipalities and metropolitan forms of government may, by act of the local legislative body, provide for the appropriation of funds for tax relief for elderly low-income homeowners as described in § 67-5-702, for disabled homeowners as described in § 67-5-703, and for disabled veterans as described in § 67-5-704; provided, that in no event shall the total relief allowed by the state and counties, municipalities or metropolitan forms of government exceed the total taxes actually paid.
    2. (2) The ordinance authorized by subdivision (j)(1) shall include provisions that only those taxpayers who qualify under §§ 67-5-702 — 67-5-704 are eligible for such additional tax relief, and that the eligible taxpayers shall have previously applied for and obtained the relief authorized by § 67-5-702, § 67-5-703 or § 67-5-704.
  11. (k) The director of the division of property assessments is authorized to waive application of any deadline imposed by this section upon determining that the failure to meet the deadline was excusable for good and reasonable cause as the phrase is used in § 67-1-803. No deadline may be extended hereunder beyond December 31 of the year following the tax year.
  12. (l) Any municipality within that county may, upon ordinance or resolution of the legislative body, enter into a contract with another collecting official within the same county for the purpose of outsourcing the processing of tax relief applications received from taxpayers. The collecting official shall submit such applications and supporting documents to the state for tax relief processing.
  13. (m) Financial records filed for purposes of income verification, including financial information reported on any application, shall be confidential and shall not be subject to inspection under the Tennessee public records law, compiled in title 10, chapter 7, but shall be available to local or state officials who administer, enforce, or audit the tax relief program or requirements under §§ 67-5-701 — 67-5-703.
Backlinks (1)
History (20)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 771, § 10
  • T.C.A., § 67-648
  • Acts 1980, ch. 787, §§ 1-3
  • 1981, ch. 400, § 1
  • 1983, ch. 127, §§ 3, 4, 6, 7
  • 1983, ch. 292, § 1
  • T.C.A., §§ 67-673, 67-675 — 67-678
  • Acts 1985, ch. 53, § 1
  • 1988, ch. 522, §§ 1-3
  • 1995, ch. 166, §§ 1, 2
  • 1997, ch. 115, § 1
  • 1999, ch. 110, §§ 1, 2
  • 2005, ch. 326, § 1
  • 2006, ch. 739, § 1
  • 2010, ch. 932, § 1
  • 2011, ch. 17, §§ 1, 2
  • 2013, ch. 63, § 1
  • 2014, ch. 860, § 1
  • 2015, ch. 226, § 1.
§ 67-5-702. Elderly low-income homeowners.
  1. (a)
    1. (1) There shall be paid from the general funds of the state to certain low-income taxpayers sixty-five (65) years of age or older the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given year on that property that the taxpayer owned and used as the taxpayer's residence as provided in this part.
    2. (2) For tax year 2007 and thereafter, the taxpayer's annual income from all sources shall not exceed twenty-four thousand dollars ($24,000), or such other amount as set forth in the general appropriations act. This annual income limit shall be adjusted each tax year to reflect the cost of living adjustment for social security recipients as determined by the social security administration and shall be rounded to the nearest ten dollars ($10.00). The income attributable to the applicant for tax relief shall be the income of all owners of the property, the income of applicant's spouse and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence at any time during the year for which tax relief is claimed. Any portion of social security income, social security equivalent railroad retirement benefits, and veterans entitlements required to be paid to a nursing home for nursing home care by federal regulations shall not be considered income to an owner who relocates to a nursing home.
    3. (3)
      1. (A) Such reimbursement shall be paid on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of the full market value of such property.
      2. (B) Beginning for tax year 2018, and each subsequent tax year, the amount on which reimbursement shall be paid under subdivision (a)(3)(A) shall be increased annually to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers and shall be rounded to the nearest one hundred dollars ($100). The comptroller of the treasury shall notify taxpayers of any change in dollar amounts made pursuant to this subdivision (a)(3)(B) and post the information in a readily identifiable location on the comptroller's website. The annual percentage changes used in this calculation shall be no less than zero percent (0%) and no more than three percent (3%).
  2. (b)
    1. (1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
    2. (2) The effective assessed value shall be determined by multiplying the full market value of the property up to twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), by twenty-five percent (25%).
    3. (3) The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
  3. (c) Taxpayers who become sixty-five (65) years of age on or before December 31 of the year for which application is made for property tax relief and are otherwise eligible shall be qualified as elderly low-income homeowners.
  4. (d) Elderly low-income homeowners shall continue to qualify for property tax relief while the taxpayer is temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility if the taxpayer indicates an intent to return to the residence when recovered sufficiently.
  5. (e) For purposes of this section, an elderly low-income homeowner's residence shall be determined in accordance with the principles set forth by § 2-2-122.
  6. (f) Elderly low-income homeowners who were temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility during the period beginning on or after October 3, 2017, and prior to April 12, 2018, and whose reimbursement under this section ceased during such period as a result of such temporary relocation, shall receive reimbursement retroactively for such period, and shall continue to receive such reimbursement in accordance with this section on or after April 12, 2018.
Backlinks (8)
History (22)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 771, § 9
  • 1978, ch. 936, § 1
  • 1979, ch. 388, §§ 1, 3
  • T.C.A., § 67-645
  • Acts 1983, ch. 127, § 1
  • T.C.A., § 67-670
  • Acts 1988, ch. 496, § 1
  • 1988, ch. 522, §§ 4-6
  • 1992, ch. 964, § 1
  • 1992, ch. 1021, § 1
  • 1993, ch. 500, § 1
  • 1996, ch. 967, § 2
  • 1998, ch. 726, § 1
  • 1998, ch. 1031, § 1
  • 2006, ch. 1019, §§ 61-63
  • 2007, ch. 539, § 1
  • 2009, ch. 68, § 1
  • 2015, ch. 481, § 2
  • 2016, ch. 1065, § 2
  • 2017, ch. 181, §§ 31, 32
  • 2018, ch. 710, § 1.
§ 67-5-703. Disabled homeowners.
  1. (a)
    1. (1) There shall be paid from the general funds of the state to certain taxpayers who are totally and permanently disabled, as may be determined by rules and regulations of the state board of equalization, the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given year on that property that the taxpayer owned and used as the taxpayer's residence as provided in this section.
    2. (2) For tax year 2007 and thereafter, the taxpayer's annual income from all sources shall not exceed twenty-four thousand dollars ($24,000), or such other amount as set in the general appropriations act. The annual income limit shall be adjusted each tax year to reflect the cost of living adjustment for social security recipients as determined by the social security administration and shall be rounded to the nearest ten dollars ($10.00). The income attributable to the applicant for tax relief shall be the income of all owners of the property, the income of applicant's spouse and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence at any time during the year for which tax relief is claimed. Any portion of social security income, social security equivalent railroad retirement benefits, and veterans entitlements required to be paid to a nursing home for nursing home care by federal regulations shall not be considered income to an owner who relocates to a nursing home.
    3. (3)
      1. (A) Such reimbursement shall be paid on the first twenty seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of the full market value of such property.
      2. (B) Beginning for tax year 2018, and each subsequent tax year, the amount on which reimbursement shall be paid shall be increased annually to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers and shall be rounded to the nearest one hundred dollars ($100). The comptroller of the treasury shall notify taxpayers of any change in dollar amounts made pursuant to this subdivision (a)(3)(B) and post the information in a readily identifiable location on the comptroller's website. The annual percentage changes used in this calculation shall be no less than zero percent (0%) and no more than three percent (3%).
  2. (b)
    1. (1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
    2. (2) The effective assessed value shall be determined by multiplying the full market value of the property up to twenty seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), by twenty-five percent (25%).
    3. (3) The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
  3. (c) Taxpayers who become totally and permanently disabled on or before December 31 of the year for which application is made for property tax relief and are otherwise eligible shall be qualified as disabled homeowners.
  4. (d) Any information concerning the disability status of a disabled homeowner shall be confidential and shall not be subject to inspection under Tennessee public records law, compiled in title 10, chapter 7, but shall be available to local or state officials who administer, enforce, or audit the tax relief program or requirements under this section.
  5. (e) Disabled homeowners shall continue to qualify for property tax relief while the taxpayer is temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility if the taxpayer indicates an intent to return to the residence when recovered sufficiently.
  6. (f) For purposes of this section, a disabled homeowner's residence shall be determined in accordance with the principles set forth by § 2-2-122.
  7. (g) Disabled homeowners who were temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility during the period beginning on or after October 3, 2017, and prior to April 12, 2018, and whose reimbursement under this section ceased during such period as a result of such temporary relocation, shall receive reimbursement retroactively for such period, and shall continue to receive such reimbursement in accordance with this section on or after April 12, 2018.
Backlinks (6)
History (22)
  • Acts 1973, ch. 226, § 6
  • 1978, ch. 936, § 2
  • 1979, ch. 388, §§ 2, 3
  • T.C.A., § 67-646
  • Acts 1983, ch. 127, § 2
  • T.C.A., § 67-671
  • Acts 1988, ch. 496, § 2
  • 1988, ch. 522, §§ 7-9
  • 1992, ch. 964, § 2
  • 1992, ch. 1021, § 2
  • 1993, ch. 500, § 2
  • 1996, ch. 967, § 3
  • 1998, ch. 726, § 2
  • 1998, ch. 1031, § 2
  • 2006, ch. 1019, §§ 64-66
  • 2008, ch. 806, § 1
  • 2009, ch. 68, § 2
  • 2013, ch. 63, § 2
  • 2015, ch. 481, § 3
  • 2016, ch. 1065, § 3
  • 2017, ch. 181, §§ 33, 34
  • 2018, ch. 710, § 2.
§ 67-5-704. Disabled veteran's residence.
  1. (a)
    1. (1) There shall be paid from the general funds of the state to certain disabled veterans the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given tax year on that property that the disabled veteran owned and used as the disabled veteran's residence as provided in this section.
    2. (2) Such reimbursement shall be paid on the first one hundred seventy-five thousand dollars ($175,000) of the full market value of such property.
    3. (3) In determining the amount of relief to a taxpayer, the effective assessed value on the first one hundred seventy-five thousand dollars ($175,000) of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
    4. (4) The effective assessed value shall be determined by multiplying the full market value of the property up to one hundred seventy-five thousand dollars ($175,000) by twenty-five percent (25%).
    5. (5) The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
  2. (b) For the purposes of this section, a “disabled veteran” means a person who has served in the armed forces of the United States, and who has:
    1. (1) Acquired in connection with such service a disability from paraplegia or permanent paralysis of both legs and lower part of the body resulting from traumatic injury or disease to the spinal cord or brain, or from legal blindness, or from loss or loss of use of two (2) or more limbs from any service-connected cause;
    2. (2) Acquired one hundred percent (100%) permanent total disability, as determined by the United States veterans' administration, and such disability resulting from having served as a prisoner of war; or
    3. (3) Acquired service-connected permanent and total disability or disabilities, as determined by the United States department of veterans' affairs.
  3. (c) Under no conditions shall property tax relief extend to any person who was dishonorably discharged from any of the armed services.
  4. (d) The determination of the United States veterans' administration concerning the disability status of a veteran shall be conclusive for purposes of this section.
  5. (e) Property tax relief shall also be extended to the surviving spouse of a disabled veteran who, at the time of the disabled veteran's death, was eligible for disabled veterans' property tax relief. If a subsequent amendment to the law concerning eligibility as a disabled veteran would have made the deceased veteran eligible for disabled veterans' property tax relief, then property tax relief shall also be extended to the surviving spouse. A surviving spouse shall continue to qualify for disabled veterans' property tax relief as long as the surviving spouse:
    1. (1) Does not remarry;
    2. (2) Solely or jointly owns the property for which tax relief is claimed; and
    3. (3) Uses the property for which tax relief is claimed exclusively as a home.
  6. (f) Property tax relief shall also be extended to the surviving spouse of a veteran whose death results from a service-connected, combat-related cause, as determined by the United States veterans' administration; provided, that:
    1. (1) The surviving spouse does not remarry; and
    2. (2) The property for which tax relief is claimed is owned by and used exclusively by the surviving spouse as a home.
  7. (g) Property tax relief shall also be extended to the surviving spouse of a soldier whose death results from being deployed, away from any home base of training and in support of combat or peace operations; provided, that the surviving spouse:
    1. (1) Does not remarry;
    2. (2) Solely or jointly owns the property for which tax relief is claimed; and
    3. (3) Uses the property for which tax relief is claimed exclusively as a home.
  8. (h) The refund provided by this section shall be in lieu of any payment under § 67-5-702 or § 67-5-703.
  9. (i) Any information concerning the disability status of a disabled veteran or the death of a soldier shall be confidential and shall not be subject to inspection under Tennessee public records law, compiled in title 10, chapter 7, but shall be available to local or state officials who administer, enforce, or audit the tax relief program or requirements under this section.
  10. (j) A disabled veteran shall continue to qualify for property tax relief while the disabled veteran is temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility if the disabled veteran indicates an intent to return to the residence when recovered sufficiently.
  11. (k) For purposes of this section, a disabled veteran's residence shall be determined in accordance with the principles set forth by § 2-2-122.
  12. (l) Disabled veterans who were temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility during the period beginning on or after October 3, 2017, and prior to April 12, 2018, and whose reimbursement under this section ceased during such period as a result of such temporary relocation, shall receive reimbursement retroactively for such period, and shall continue to receive such reimbursement in accordance with this section on or after April 12, 2018.
  13. (m) As used in this section, “disabled veteran” includes the veteran's otherwise qualified surviving spouse.
Backlinks (6)
History (29)
  • Acts 1973, ch. 226, § 6
  • 1976, ch. 829, § 1
  • 1979, ch. 281, § 1
  • T.C.A., § 67-647
  • Acts 1980, ch. 690, § 1
  • 1981, ch. 328, § 1
  • 1983, ch. 127, § 5
  • T.C.A., § 67-672
  • Acts 1984, ch. 802, § 1
  • 1984, ch. 983, § 1
  • 1985, ch. 113, § 1
  • 1988, ch. 522, §§ 10-13
  • 1996, ch. 967, § 1
  • 2002, ch. 699, §§ 1, 2
  • 2002, ch. 751, § 1
  • 2004, ch. 852, § 1
  • 2005, ch. 458, §§ 1-3
  • 2006, ch. 884, §§ 1-4
  • 2006, ch. 978, § 1
  • 2006, ch. 1019, §§ 67-69
  • 2007, ch. 553, § 1
  • 2011, ch. 262, § 1
  • 2011, ch. 418, § 1
  • 2012, ch. 1087, § 1
  • 2013, ch. 63, § 3
  • 2015, ch. 481, §§ 4-6
  • 2016, ch. 1065, § 1
  • 2017, ch. 181, § 37
  • 2018, ch. 710, § 3.
§ 67-5-705. Property Tax Freeze Act.
  1. (a) This section shall be known and may be cited as the “Property Tax Freeze Act.”
  2. (b) The purpose of this section is to provide for uniform and orderly administration of the property tax freeze program for eligible taxpayers in those jurisdictions adopting it. This section is not intended to displace other forms of property tax relief available at the time of its passage except as expressly provided in this section.
  3. (c) As used in this section, unless the context otherwise requires:
    1. (1) “Base tax” means the property tax due on the principal residence of a qualifying taxpayer at the time the jurisdiction levying the tax adopts a resolution or ordinance approving the property tax freeze under this section. If the taxpayer did not qualify or did not own an eligible residence when the freeze was adopted, “base tax” means the maximum property tax due on the taxpayer's eligible residence for the year in which the taxpayer became eligible on the basis of an approved application. If a taxpayer reapplies after acquiring a new residence or after a period of ineligibility, the base tax shall be recalculated for the year of reapplication and reestablishment of eligibility;
    2. (2) “Collecting official” means the county trustee or, in the case of taxes due a municipality, the county trustee or other official responsible for collection of property taxes;
    3. (3) “Improvement” means any change to a dwelling or dwelling lot that would properly warrant a change by the assessor in the assessed value of the property for the year or portion of the year in which the improvement is made; and
    4. (4) “Principal residence” means the dwelling owned by the taxpayer and eligible as the taxpayer's legal residence for voting purposes. Program rules shall establish the maximum size limits for land that may qualify as a taxpayer's principal residence. The rules shall take into consideration lot size requirements under applicable zoning, as well as property actually used to support residential structures; provided, however, that the size limit shall not exceed five (5) acres. The tax freeze granted by this section shall only apply to the residence and no more than the maximum limit for land established by the rules.
  4. (d)
    1. (1) The legislative body of a county or municipality may by resolution or ordinance adopt the property tax freeze program provided in this section. The county or municipality may thereafter terminate the freeze program by resolution or ordinance; provided, however, that the resolution or ordinance terminating the program must not have the effect of terminating the program until the following tax year.
    2. (2) A municipality that is located in a county that has already adopted the tax freeze program must use the same income limit adopted by the county if the municipality also adopts the tax freeze program and the county has adopted the income limit as set forth in subdivision (f)(3)(A)(iii).
    3. (3) A municipality that adopts or has adopted the tax freeze program must use the income limit adopted by the county if the county trustee is accepting tax freeze applications on behalf of the municipality, or is acting as the collecting official on behalf of the municipality, and the county has adopted the income limit as set forth in subdivision (f)(3)(A)(iii).
  5. (e)
    1. (1) Taxpayers seeking the property tax freeze shall apply annually to the collecting official by the deadline established in program rules, and applicants must qualify on the basis of age, income and ownership of eligible property. The collecting official shall determine whether requirements for eligibility have been met, and the collecting official's determination shall be final, subject to audit and recovery of taxes, including interest at the rates otherwise provided for delinquent taxes under § 67-5-2010, if the applicant is later determined to have not been eligible. Any taxpayer who knowingly provides false information concerning the taxpayer's income or other information relative to eligibility for the program, commits a Class A misdemeanor.
    2. (2) If the collecting official approves the application, property taxes due on the applicant's principal residence shall be the lesser of:
      1. (A) The actual tax due; or
      2. (B) The base tax; provided, that the base tax shall be adjusted to reflect any percentage increase in the value of the property determined by the assessor to be attributed to improvements made or discovered after the time the base tax was established. The base tax shall be recalculated in any year in which the actual tax due is less than the previously established base tax for the property, and the recalculated base tax shall apply until further recalculated pursuant to this part.
  6. (f)
    1. (1) To qualify for the property tax freeze, the applicant shall be sixty-five (65) years of age by the end of the year in which the application is filed. The applicant shall further own and use the property as the applicant's principal residence for which the freeze is sought in the year of application or reapplication and through the deadline date for application or reapplication.
    2. (2) In addition to the qualifications stated in subdivision (f)(1), the applicant's income, combined with the income of any other owners of the property, the income of applicant's spouse and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence at any time during the year, may not exceed the limit stated in subdivision (f)(3). Income for purposes of qualification means income from all sources as defined by program rules.
    3. (3)
      1. (A) Subject to subdivision (f)(3)(B), the income limit for the property tax freeze program is the greater of:
        1. (i) The weighted average of the median household income for age groups sixty-five (65) years of age to seventy-four (74) years of age and seventy-five (75) years of age or over who resided within the county as determined in the most recent federal decennial census;
        2. (ii) The applicable state tax relief income limit established under § 67-5-702; or
        3. (iii) Sixty thousand dollars ($60,000) if approved by the local legislative body in accordance with subsection (d). Such income limit, if adopted by the local legislative body, shall not take effect until the tax year following adoption by the local legislative body.
      2. (B) The income limits in subdivision (f)(3)(A)(i)-(iii) must be adjusted by the comptroller of the treasury to reflect the cost-of-living adjustment for social security recipients as determined by the social security administration and must be rounded to the nearest ten dollars ($10.00). The adjusted weighted average median household income level for each county must be published annually by the comptroller of the treasury.
  7. (g)
    1. (1) The comptroller of the treasury is authorized to perform income verification or other related services or assistance at the request of a county or municipality, if the county or municipality agrees to pay fees sufficient to reimburse the actual costs to the comptroller of the treasury in providing such services or assistance, unless or to the extent not appropriated by the general assembly.
    2. (2) Financial records filed for purposes of income verification shall be confidential and shall not be subject to inspection under the Tennessee public records law, compiled in title 10, chapter 7, but shall be available to local or state officials who administer, enforce, or audit the tax freeze program or requirements imposed under this section.
  8. (h) The property tax freeze program shall conform to any uniform definitions, application forms and requirements, income verification procedures and other necessary or desirable rules, regulations, policies and procedures not in conflict with this section, as may be adopted by the state board of equalization through the division of property assessments.
History (8)
  • Acts 1979, ch. 407, §§ 1, 2
  • T.C.A., §§ 67-649, 67-674
  • Acts 2007, ch. 581, § 1
  • 2009, ch. 68, § 3
  • 2013, ch. 63, § 4
  • 2014, ch. 938, § 1
  • 2017, ch. 299, § 2
  • 2023, ch. 271, §§ 1, 2.
Part 8 Classification and Assessment — Real Property
§ 67-5-801. Classification and rate of assessment.
  1. (a) For the purposes of taxation, all real property, except vacant or unused property or property held for use, shall be classified according to use and assessed as provided in this section:
    1. (1) Public Utility Property. Public utility property shall be assessed at fifty-five percent (55%) of its value;
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    2. (2) Industrial and Commercial Property. Industrial and commercial property shall be assessed at forty percent (40%) of its value;
    3. (3) Residential Property. Residential property shall be assessed at twenty-five percent (25%) of its value; and
    4. (4) Farm Property. Farm property shall be assessed at twenty-five percent (25%) of its value.
  2. (b)
    1. (1) Where a parcel of real property is used for more than one (1) purpose, which would result in different subclassifications and different assessment percentages, then it shall be apportioned among the subclasses according to guidelines established by rules and regulations of the state board of equalization.
    2. (2) Notwithstanding subdivision (b)(1), when a parcel of real property is the principal residence of its owner, contains not more than one (1) rental unit, and is used as a short-term rental unit, as defined by § 13-7-602, the assessor of property should presume the classification of the property is residential.
    3. (3) When a parcel is classified as residential under subdivision (b)(2), the same owner of the property may request residential classification for a maximum of one (1) additional parcel in this state and the assessor of property should presume residential classification when the one (1) additional parcel meets the following conditions:
      1. (A) The parcel of real property contains not more than one (1) rental unit;
      2. (B) The property is used as a short-term rental unit, as defined by § 13-7-602;
      3. (C) The owner of the property lives on the property a minimum of fourteen (14) days each year or at least ten percent (10%) of the number of days the property is rented as a short-term rental unit, whichever is greater; and
      4. (D) The owner of the property annually files a written affidavit with the assessor of property by September 1 of the prior year verifying that the property meets all requirements and the owner has no more than one (1) additional parcel in addition to their principal residence under this section.
  3. (c)
    1. (1) All real property that is vacant, or unused, or held for use, shall be classified according to its immediate most suitable economic use, which shall be determined after consideration of:
      1. (A) Immediate prior use, if any;
      2. (B) Location;
      3. (C) Zoning classification; provided, that vacant subdivision lots in incorporated cities, towns, or urbanized areas shall be classified as zoned, unless upon consideration of all factors, it is determined that such zoning does not reflect the immediate most suitable economic use of the property;
      4. (D) Other legal restrictions on use;
      5. (E) Availability of water, electricity, gas, sewers, street lighting, and public services;
      6. (F) Size;
      7. (G) Access to public thoroughfares; and
      8. (H) Any other factors relevant to a determination of the immediate most suitable economic use of the property.
    2. (2)
      1. (A) If, after consideration of all such factors, any such real property does not fall within any of the definitions and classifications in this section, such property shall be classified and assessed as farm or residential property.
      2. (B) When a mobile home attached to real property as described in § 67-5-802 is used as a residence, the assessor of property may presume the classification is residential.
History (4)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-611
  • Acts 2017, ch. 297, § 1
  • 2020, ch. 787, § 11.
§ 67-5-802. Mobile homes.
  1. (a)
    1. (1) Any movable structure and appurtenance that is attached to real property by virtue of being on a foundation, or being underpinned, or connected with any one (1) utility service, such as electricity, natural gas, water, or telephone, shall be assessed for tax purposes as real property as an improvement to the land where located; however, in cases where the movable structures are attached to land occupied and used as trailer or mobile home parks where the owner of the land is renting spaces or lots for maintaining the movable structures, the owner of the movable structures shall be responsible for the additional tax imposed by reason of the improvement, and the owner of the land shall be granted a lien against the movable structure to secure the payment of the municipal and county taxes. Such lien shall constitute a first lien against the movable structure and shall be the only lien granted to the owner of the land without prior notification to any lienholder of record. If a moveable structure becomes vacant, the owner of the land shall be granted a lien against the moveable structure for rent due upon written notice delivered by certified mail to any lienholder of record, unless such lienholder is prevented by law from removing the moveable structure. Such lien shall be effective thirty (30) days after such notice, if the moveable structure remains vacant for thirty (30) days or more after the notice and is not removed within that time and shall be for rent accrued after notice to the lienholder. Prior to removal, a lienholder shall notify an owner of land by certified mail of its lien and intent to remove. All notices required to be given by certified mail shall be deemed to be effective upon mailing.
    2. (2) Any such tax shall be collectible by the owner of the mobile park on a fiscal year basis, or in the alternative, the owner of the mobile park shall have the right to collect the tax by the month on a pro rata share, together with any monthly rents due the owner.
  2. (b)
    1. (1) On or before March 1 of each year, the assessor of property shall furnish to each owner of land used as a mobile home park a schedule approved by the division of property assessments, requiring the owner to list all movable structures as defined in § 67-5-501, that were located on the owner's land as of the assessment date. For purposes of this subsection (b), “mobile home park” means a parcel or contiguous parcels under common ownership containing three (3) or more rental spaces or lots for movable structures.
    2. (2) It is the duty of each owner of land upon which a movable structure is located to list each such structure, its make, year, serial number, size, original cost and such other pertinent information as may be required by the division of property assessments, sign the list and return it to the assessor of property on or before April 1 of each year. The assessor of property shall furnish to each owner of land used as a mobile home park a schedule of the assessed value of each moveable structure on or before July 1 of each year.
  3. (c) This section shall not apply to a movable structure being used as a temporary office at a construction site, if such movable structure is otherwise assessed.
  4. (d) In order to assist assessors of property in locating mobile homes and other movable structures that are moved onto and attached to land, the state director of fire prevention shall each month provide to assessors of property in the respective counties the names of mobile home owners and the location of property for which electrical inspections have been made.
  5. (e) If the owner of land prevails in a suit for reimbursement of taxes against the owner of a mobile home or other movable structure located on the land, the owner of land shall be entitled to recover the costs of suit, including reasonable attorney's fees.
Backlinks (3)
History (7)
  • Acts 1973, ch. 226, § 6
  • 1974, ch. 555, § 2
  • 1976, ch. 673, § 1
  • T.C.A., § 67-612
  • Acts 1989, ch. 304, § 1
  • 1999, ch. 92, §§ 1, 2
  • 1999, ch. 513, § 1.
§ 67-5-803. Tract lying partly outside taxing district.
  1. When assessing for public taxes any tract of land lying partly within the limits of a drainage district, special school district or other special taxing district, and partly outside the limits of such district, an assessor shall assess that part of such tract lying within the limits of such district as one (1) independent tract, and that part of any such tract lying outside of the limits of such district as another independent tract, to the end that the amount of the taxes due to each taxing district may be definitely known.
History (2)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-615.
§ 67-5-804. Assessor's records for each taxable parcel — Identification and registration of mineral interests.
  1. (a) For purposes of assessment of real property, each assessor shall keep a record for each parcel of taxable real property in the assessor's taxing jurisdiction, which shall show the following:
    1. (1) The description of the property;
    2. (2) The name of the true owner or owners, if known;
    3. (3) The value of the land or lot, the value of the improvements, and also the separate value of any interests in real property or improvements thereon assessable as under § 67-5-502(d);
    4. (4) The classification or subclassification and the appropriate percentage rate for purposes of assessment;
    5. (5) The actual assessment that results from the multiplication of the value of the property by the appropriate percentage rate; and
    6. (6) Any other information as may be required by the state board of equalization.
  2. (b) All mineral owners shall be required to identify their mineral interests with the property assessor in the county in which the interest is located. The mineral owner shall provide a deed reference number for the mineral interest and shall specify where that mineral estate lies, citing tax maps and parcel numbers for the owner or owners of surface above the mineral estate. All property registered and identified sufficiently to the property assessor on July 1, 1987, and on which taxes have been paid through the current tax year on July 1, 1987, shall not be required to register again. Property shall be deemed to have been identified sufficiently, if and only if, it has been identified to the property assessor by the mineral owner in at least one (1) of these three (3) ways:
    1. (1) By map and parcel number of the surface owners above the mineral estate;
    2. (2) By providing to the property assessor reliable and accurate maps showing the location of the mineral interest in relation to the surface estates, which maps shall be kept on file in the property assessor's office. The property assessor shall use those maps to identify the surface owners above the mineral interest; or
    3. (3) By providing the names of the surface owners and enough additional information so that the property assessor can identify on the property assessor's maps the location of the mineral interest. The property assessor shall keep the names and information on file and shall use the information to identify on the property assessor's maps the location of the mineral interest in relation to the surface estate.
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  3. (c) The state board of equalization shall furnish to local property assessors a form for mineral owners to use.
    Backlinks (1)
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History (4)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-613
  • Acts 1987, ch. 282, §§ 4, 11
  • 1988, ch. 702, § 3.
§ 67-5-805. Rules for describing real property.
  1. (a) In describing real estate, the following rules shall be observed:
    1. (1) The number of town lots and blocks of the property as a whole or a part shall be given;
    2. (2) The name of the street, avenue, alley, or road on which it fronts, and the front feet thereof shall be given, unless the size, dimensions, and quantity can be more conveniently given in acres, then to be given in acres;
    3. (3) If the property is a part of any known subdivision, its size, dimensions, quantity, and front feet or acres shall be given;
    4. (4) In describing tracts of land, when it can be done, the surveyor's district, range, township, section, and sectional subdivision shall be designated and the number of acres;
    5. (5) The lands by which the described tract is bounded shall also be given in the assessment; and
    6. (6) When part of a known tract, subdivision, lot or block of land is assessed by a description that identifies it, or any part of it that is assessed but not so identified, such description shall be held to embrace all of such tract, subdivision, lot or block not included in the part identified.
  2. (b) A failure to assess according to this chapter shall not in any wise vitiate the assessment or sale of lands under this chapter, and parol testimony shall always be admissible to supply a description of land on the assessment roll or in conveyance for taxes, where such testimony will show what land was assessed and sold, and there is enough in the description on the roll or conveyance to be applied to a particular tract or parcel of land by aid of such testimony.
History (3)
  • Acts 1973, ch. 226, § 6
  • 1980, ch. 709, §§ 1, 2
  • T.C.A., § 67-614.
§ 67-5-806. Use of property maps — Revision of property maps.
  1. (a) Where any county or municipality other than metropolitan governments has prepared or has had prepared property maps, that identify parcels of land within the area of that local government, that assign a number or other identifying symbol to such parcels and that show names of streets and public ways, and where such maps have been made a matter of public record and have been filed in the office of the county registrar, the parcel number or other identifying symbol that a specific parcel has been assigned on the official property identification map or maps shall be a sufficient description and identification of such property for purposes of assessment. Property maps prepared for property tax and assessment purposes shall not be conclusive evidence of property ownership in any court of law.
  2. (b)
    1. (1) The state division of property assessment shall supervise the preparation, maintenance, revision and recording of all such property maps. It shall be the duty of the assessor to annually file a copy or reproduction of such property maps, as currently revised, with the county register of deeds, except in counties with a metropolitan form of government, who shall, without charge, accept, file, and preserve such copy or reproduction as a public record. Such copy or reproduction shall be filed on or before April 15 of each year, and shall reflect the status of property as of January 1. The copy or reproduction must use a format and storage medium approved by the director of the division of property assessments.
    2. (2) The state division of property assessment shall revise such property maps to indicate the proper boundary between adjoining counties upon receipt of a notice from the state board of equalization as provided in [former] § 5-2-115(d)(3) [repealed].
Backlinks (1)
History (9)
  • Acts 1973, ch. 226, § 6
  • 1980, ch. 709, §§ 1, 2
  • T.C.A., § 67-614
  • Acts 1986, ch. 703, § 3
  • 1987, ch. 46, §§ 1, 2
  • 1998, ch. 666, §§ 1, 2
  • 2000, ch. 622, § 2
  • 2013, ch. 209, § 10
  • 2019, ch. 59, § 1.
§ 67-5-807. Preparation and delivery of tax rolls or books.
  1. (a) Every assessor shall identify all taxable property on the assessor's assessment records in such manner that tax rolls can be provided for each taxing entity within the assessor's jurisdiction.
  2. (b) The county legislative body may impose upon the county clerk, or upon the assessor of property, the duty of making out from the assessment books, prepared by the county assessor of property for the latest year, either a bound or a loose-leaf tax book or books, or unit tax ledger cards, one (1) for each parcel of property, and the person so designated to perform this duty shall deliver the books or ledger cards to the trustee on or before the first Monday of October each and every year, respectively, and the person shall receive for such services such compensation as the county legislative body shall allow; provided, that the trustee shall have, at the date of the trustee's induction into office, entered into the several bonds in the amount of taxes as required by law.
  3. (c)
    1. (1) Tax books or unit of ledger cards shall be arranged by districts, or by convenient subdivision of districts, and shall be suitably ruled so as to show the names of the owners either in alphabetical order, or in the order in which the parcels of property identified by a parcel number, are geographically located within the district or subdivision of the district, the number of lots and blocks, number of acres, description of the property as contained in the assessment roll, the value of each lot, tract, or parcel of land, and the valuation of personal property under the appropriate head or items called for by this chapter.
    2. (2) On the valuation of the real and personal property of each taxpayer, taxes shall be calculated and extended in appropriate columns, according to and at the rate levied by the proper authorities.
    3. (3) Tax books, tax rolls, or unit of ledger cards may have attached thereto and made a part thereof a schedule of definitions, defining words, letters, signs, symbols and figures appearing in such tax rolls, and such schedule of definitions when so attached shall be regarded as a part of each assessment contained in such tax books, tax rolls, or unit of ledger cards; and such tax books, tax rolls and unit of ledger cards may by reference incorporate records on file in any public office in the county.
  4. (d)
    1. (1) It is the duty of the county clerk or assessor of property, in making out the tax books, to place all the property within the limits of any given municipality so that it will be separate from the other property, and, by footing up the assessed valuations on each page and recapitulating such footings, the county clerk or assessor of property shall show the aggregate valuation of all property within the limits of each incorporated town, city, or taxing district, and in the same manner the county clerk or assessor of property shall show the aggregate valuation of all property within the limits of the county.
    2. (2) The tax books for realty shall show the name of the owner, if known, the description of each lot, tract, or parcel of land, and the value thereof.
  5. (e)
    1. (1) The county clerk or assessor of property shall make out from the tax books an aggregate statement, showing the value of all town lots, the number of acres, and value of all tracts of land and the value of all personal property.
    2. (2) This statement shall be made and the tax shown by civil districts and wards, and shall show the aggregate for the whole county from the items named.
    3. (3) The clerk or assessor shall specify in such statement which of the districts are urban or country districts.
    4. (4) This statement shall be forwarded to the commissioner of revenue on or before the first Monday in November in each and every year.
    5. (5) The clerk or assessor shall also certify a like statement to the mayor of each municipality by that date.
  6. (f) Should any county clerk or assessor of property fail to comply with the requirements of subsection (e) or § 67-1-701(a), when within such county clerk's or assessor of property's power to do so, the county clerk or assessor of property shall forfeit all claims for compensation for labor and services for making out and preparing the tax books.
History (13)
  • Acts 1907, ch. 602, §§ 39, 40, 43, 44
  • Shan., §§ 811, 811a1, 812, 813
  • mod. Code 1932, §§ 1482-1485
  • impl. am. Acts 1937, ch. 33, § 50
  • Acts 1951, ch. 122, § 1
  • 1951, ch. 238, §§ 2-4
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 286, § 5
  • modified
  • 1973, ch. 226, § 6
  • T.C.A. (orig. ed.), §§ 67-626, 67-1008 — 67-1012
  • Acts 2008, ch. 971, § 1.
§ 67-5-808. Metropolitan governments — Tax rolls.
  1. (a) Assessors of property for metropolitan governments shall assess separately and keep separate records and make up separate assessment rolls for:
    1. (1) Property in the urban services district;
    2. (2) Property within the limits of each incorporated city; and
    3. (3) Other property, being all property in the general services district and not in the urban services district or in any incorporated city.
  2. (b) The aggregate of the enumerated assessment records and rolls shall be the assessment records and rolls for the general services district, and the assessor of property shall so certify to the trustee, without obligation or a need to compile any other record or roll for the general services district.
History (3)
  • Acts 1973, ch 226, § 6
  • T.C.A., § 67-626
  • Acts 2008, ch. 971, § 1.
§ 67-5-809. Mineral interests — Back assessments — Location.
  1. (a) The collector of taxes shall place a back assessment against the mineral interest pursuant to § 67-1-1005, if the tax collector determines that the mineral interest property has previously escaped taxation. If the collector of taxes has not previously provided notice to the owner of a dormant mineral interest of the assessment of taxes on such interest, then there shall be no back assessment of taxes, but the owner of the mineral interest shall be liable for taxes accruing after July 1, 1987, as otherwise provided by law.
  2. (b) Failure of the mineral interest owner to register a mineral interest with the property assessor within three (3) years of July 1, 1987, shall subject the property to back assessment or reassessment pursuant to chapter 1, part 1 of this title, and to a penalty of twenty-five percent (25%) of the assessment or back assessment of taxes.
  3. (c) Any mineral interest owner who, although currently paying taxes on a mineral interest assessment, fails to identify the location of that interest as required in § 67-5-804 shall be subject to penalty and interest. A penalty of ten percent (10%) shall be levied on the current assessment of that mineral interest.
  4. (d) Further, any mineral interest owner failing to identify the location of the mineral interest according to § 67-5-804 shall not claim payment of taxes as a use of mineral interest as provided in title 66, chapter 5.
Backlinks (1)
History (1)
  • Acts 1987, ch. 282, §§ 5, 10.
Part 9 Classification and Assessment — Tangible Personal Property
§ 67-5-901. Classification and rate of assessment — Leased property.
  1. (a) For purposes of taxation, all tangible personal property, except inventories of merchandise held by merchants and businesses for sale and exchange by persons taxable under chapter 4, part 7 of this title, and unused tangible personal property shall be classified according to its use and assessed as follows:
    1. (1) Public utility property shall be assessed at fifty-five percent (55%) of its value;
      Backlinks (1)
    2. (2) Industrial and commercial property shall be assessed at thirty percent (30%) of its value; and
    3. (3)
      1. (A) All other tangible personal property shall be assessed at five percent (5%) of its value, except that, for the purpose of taxation under this chapter, all other tangible personal property shall be deemed to have no value;
      2. (B) All tangible personal property that is not in use shall be classified according to its immediate most suitable economic use, which shall be determined after consideration of the following:
        1. (i) Immediate past use, if any;
        2. (ii) Nature of the property;
        3. (iii) Classification of the real property upon which it is located;
        4. (iv) Normal use of the property;
        5. (v) Ownership; and
        6. (vi) Any other factors relevant to a determination of the immediate most suitable economic use of the property.
  2. (b)
    1. (1) “Inventories of merchandise held by merchants and businesses for sale and exchange” includes tangible personal property held for lease or rental, but does not include such property in the possession of a lessee. Leased personal property in the possession of the lessee shall be classified and assessed according to the use of the lessee.
    2. (2) Prosthetic surgical kits, including reusable tools and containers, as well as prosthetics and supplies, shall be considered “inventories of merchandise held by merchants and businesses for sale and exchange” as to the typical stock on hand at the premises of the merchant or business owner, or when held for thirty (30) days or less by a customer for use in surgeries; provided, that proceeds of the transaction are subject to business tax. Kits leased or consigned to the same customer/user for longer than thirty (30) days, with or without a written lease or consignment agreement, shall be considered leased tangible personal property assessable to the customer/user. The typical stock on hand at the premises of the customer/user shall be considered leased tangible personal property unless otherwise documented. Leased or consigned kits otherwise assessable to the customer/user but withdrawn or relocated from the customer/user's premises by the lessor within thirty (30) days may be adjusted by filing of an amended tangible personal property schedule for the year assessed according to the applicable statute, if the basis for the adjustment is documented.
History (7)
  • Acts 1973, ch. 226, § 6
  • 1977, ch. 337, § 2
  • T.C.A., § 67-616
  • Acts 1988, ch. 941, §§ 2, 3
  • 1990, ch. 1075, § 7
  • 2001, ch. 448, § 1
  • 2009, ch. 530, § 131.
§ 67-5-902. Schedules generally.
  1. (a) Unless otherwise provided for, those owners and lessees of taxable tangible personal property who are required by rules and regulations of the state board of equalization to report to the assessor shall report on such schedule as the state board of equalization may require. The schedule adopted by the board shall provide that a value different from standard depreciated cost may be used where such value more closely approximates fair market value, and the assessor may request supportive information in such instances from the taxpayer.
  2. (b) If a taxpayer would be liable for additional tax due to back assessment of property omitted from a reporting schedule, or due to reassessment of property included in the schedule, the taxpayer may offset this liability by showing that other property listed on the schedule was over reported, or by providing information that the reassessed property or other property listed on the schedule should be valued using a nonstandard method that more closely approximates fair market value.
  3. (c) With approval of the director of property assessments, the assessor may require electronic filing for tangible personal property schedules and for any year in which electronic filing is required in the county, the filing deadline is extended to April 15, and tangible personal property assessments may be appealed directly to the state board of equalization until forty-five (45) days after the assessment change notice is sent.
Backlinks (1)
History (4)
  • Acts 1973, ch. 226, § 6, T.C.A., § 67-617
  • Acts 1990, ch. 1075, § 3
  • 2005, ch. 201, § 1
  • 2014, ch. 938, § 2.
§ 67-5-903. Schedules — Property used for business, professions, manufacturing.
  1. (a) All partnerships, corporations, other business associations not issuing stock and individuals operating for profit as a business or profession, including manufacturers, except those whose property is entirely assessable by the comptroller of the treasury, shall be furnished by the assessor not later than February 1 of each year, a schedule requiring the taxpayer to list in detail all tangible personal property owned by the taxpayer and used or held for use in such business or profession, including, but not limited to, furniture, fixtures, machinery and equipment, all raw materials, supplies, but excluding all finished goods in the hands of the manufacturer and the inventories of merchandise held for sale or exchange, such schedule to be approved by the director of property assessments. Failure of the assessor to send a schedule or failure of the taxpayer to receive a schedule shall not relieve or excuse any taxpayer from filing such schedule by March 1, nor shall it prevent the assessor from issuing a forced assessment against the taxpayer.
  2. (b) The taxpayer shall list fully the tangible personal property used, or held for use, in the taxpayer's business or profession on the schedule, including such other information relating to the property as may be required by the assessor, place its correct value on the schedule, sign the schedule, and return it to the assessor on or before March 1 of each year. In lieu of detailing acquisition cost on the reporting schedule, the taxpayer may certify that the depreciated value of tangible personal property otherwise reportable on the form is either two thousand dollars ($2,000) or less, or ten thousand dollars ($10,000) or less but greater than two thousand dollars ($2,000). If the taxpayer certifies that the depreciated value of tangible personal property otherwise reportable on the form is two thousand dollars ($2,000) or less, then the assessor shall accept the certification, subject to audit, and fix the value of tangible personal property assessable to the taxpayer at two thousand dollars ($2,000). If the taxpayer certifies that the depreciated value of tangible personal property otherwise reportable on the form is ten thousand dollars ($10,000) or less but greater than two thousand dollars ($2,000), then the assessor shall accept the certification, subject to audit, and fix the value of tangible personal property assessable to the taxpayer at ten thousand dollars ($10,000). This value is subject to equalization pursuant to § 67-5-1509. The certification stated on the schedule must warn the taxpayer that it is made subject to penalties for perjury, and subject to statutory penalty and costs, if proven false. The taxpayer shall designate on the schedule one (1) or more individuals as owner or owners of the business, or a responsible person or persons in the event of dissolution of a corporate or limited liability entity, for the purposes of § 67-5-513(a).
  3. (c) A taxpayer who fails, refuses or neglects to complete, sign and file the schedule with the assessor of property as provided in subsection (b) shall be deemed to have waived objections to the forced assessment determined by the assessor, subject only to the remedies provided in subsection (d). In determining a forced assessment, the assessor shall consider available evidence indicative of the fair market value of property assessable to the taxpayer under this section, and having determined the assessable value of the property, the assessor shall give the taxpayer notice of the assessment by United States mail, addressed to the last known address of the taxpayer or the taxpayer's agent at least five (5) calendar days before the local board of equalization commences its annual session.
  4. (d) The remedies of a taxpayer against whom a forced assessment is made are as follows:
    1. (1) The taxpayer may appeal to the county board of equalization pursuant to § 67-5-1407, but shall present a completed schedule as otherwise provided in this section;
    2. (2) If the deadline to appeal to the county board of equalization has expired, then the taxpayer may request the assessor to mitigate the forced assessment by reducing the forced assessment to the standard depreciated value of the taxpayer's assessable property plus twenty-five percent (25%), so long as the failure to file the schedule or failure to timely appeal to the county board of equalization was not the result of gross negligence or willful disregard of the law. Mitigation of the forced assessment shall follow the procedure, including appeal, prescribed for correction of error under § 67-5-509, but must be requested within the same deadline as provided for amendment of a schedule pursuant to subsection (e). Gross negligence shall be presumed if notice of the forced assessment, in a form approved by the state board of equalization, was sent certified mail, return receipt requested, to the taxpayer's last known address on file with the assessor;
    3. (3) Whether or not an assessor's error affected the original assessment, the assessor may correct a forced assessment using the procedure provided and subject to the deadlines provided in § 67-5-509, upon determining that the taxpayer was not in business as of the assessment date for the year at issue, and upon determining that the taxpayer did not own or lease tangible personal property used or held for use in a business as of the assessment date for the year at issue.
  5. (e) The taxpayer may amend a timely filed personal property schedule at any time on or before September 1 following the tax year. A personal property schedule may be amended for the following reasons only: adding or deleting of property to correctly reflect the status of the property as of the assessment date; correcting the reported cost or vintage year of property; correcting the name or address of the taxpayer; deleting property that has been reported more than once resulting in a duplicate assessment; reporting property in the appropriate group; and correcting other reporting clerical errors. However, under no circumstances shall a taxpayer be permitted to amend a personal property schedule to submit an original claim for nonstandard value for property that was not the subject of a properly documented claim of nonstandard value in the timely filed personal property schedule. If the assessor agrees with the amended schedule, the assessor shall thereupon revise the assessment and certify the revised assessment to the trustee. If the assessor believes the assessment should be otherwise than claimed in the amended schedule, the assessor shall adjust the assessment and give written notice to the taxpayer of the adjusted assessment. The taxpayer may appeal the assessor's adjustment of or refusal to accept an amended assessment schedule to the local and state boards of equalization in the manner otherwise provided by law. Additional taxes due as the result of an amended schedule shall not be deemed delinquent on or before sixty (60) days after the date notice of the amended assessment was sent to the taxpayer. Amendment of a personal property schedule shall not be permitted once suit has been filed to collect delinquent taxes related to the original assessment. The assessor shall, within sixty (60) days from receipt of the taxpayer's amended schedule, review and accept or reject the schedule. In any event, the taxpayer shall be notified in writing of the results of the review. If the assessor has not notified the taxpayer that the amended schedule has been accepted or rejected within sixty (60) days, the taxpayer's amended schedule shall be deemed not accepted by the assessor.
  6. (f) The schedule approved by the director of property assessments and supplied to taxpayers shall contain schedules reflecting the following rates of allowable depreciated cost for the listed categories of property, as well as spaces for general data on the particular taxpayer:
  7. (g)
    1. (1) Tangible personal property that the taxpayer treats as construction-in-process (CIP) for federal income tax purposes as of the assessment date may be reported in the taxpayer's schedule filed with the assessor at fifteen percent (15%) of its cost as reported for federal income tax purposes. Qualified pollution control property shall be valued as provided in § 67-5-604, notwithstanding its state of completion.
      Backlinks (1)
    2. (2) No back assessments of CIP, as the term is used in subdivision (g)(1), shall occur prior to January 1, 1994. If back assessments have occurred involving CIP, those assessments shall be voided and all taxes paid shall be refunded to those taxpayers who have an action or claim pending before an assessing authority or court on the CIP issue.
    Backlinks (1)
  8. (h) Property classified as computers under Group 2 shall include all operational computer software. For purposes of this section, “operational computer software” means embedded software so integral to the operation of a computer that the computer could not perform any valuable or useful function without the software. All other computer software, whether prepackaged or custom, is deemed intangible personal property for purposes of this part and is not subject to tax under this part. If computer software other than operational computer software is included in the sale or lease price of a computer without being separately stated, the cost of the software that is not operational computer software shall be included in the reported cost of the computer, unless an appropriate deduction is established by a claim of nonstandard value or by other means provided under rules of the state board of equalization. This subsection (h) shall not be construed to affect the value or taxable status of any other property subject to tax under this chapter. Nothing in this subsection (h) shall affect a taxpayer's right under § 67-5-902, to seek a value different from a standard depreciated cost, where the value more closely approximates fair market value.
Backlinks (4)
History (23)
  • Acts 1973, ch. 226, § 6
  • 1975, ch. 171, § 12
  • 1978, ch. 700, § 1
  • T.C.A., § 67-620
  • Acts 1990, ch. 898, §§ 3, 5
  • 1990, ch. 1075, § 2
  • 1993, ch. 323, §§ 1, 2
  • 1995, ch. 305, § 124
  • 1996, ch. 833, § 1
  • 1998, ch. 898, § 1
  • 2000, ch. 649, § 3
  • 2006, ch. 821, § 1
  • 2007, ch. 37, § 1
  • 2007, ch. 38, § 1
  • 2007, ch. 132, §§ 2, 3
  • 2007, ch. 179, § 1
  • 2007, ch. 292, § 1
  • 2009, ch. 163, § 1
  • 2011, ch. 93, §§ 1, 4
  • 2012, ch. 571, § 1
  • 2013, ch. 353, § 33
  • 2014, ch. 938, § 3
  • 2023, ch. 341, § 1.
§ 67-5-904. Schedules — Leased property.
  1. (a)
    1. (1) For the purpose of assessing leased property, it is the further duty of the taxpayer to list fully on a schedule provided by the assessor all tangible personal property that is leased by the taxpayer for the conduct of the taxpayer's business.
    2. (2) Leased property shall include equipment, machinery and all tangible personal property used in the conduct of, or as a part of, the taxpayer's business, including, but not limited to, the following:
      1. (A) Equipment that is leased only, not sold;
      2. (B) Equipment that is leased at nominal rent or loaned under certain circumstances;
      3. (C) Equipment that is leased and not permitted to be sold;
      4. (D) Leased coin-operated machines and devices;
      5. (E) Equipment that is placed on location;
      6. (F) Vehicles, automobiles, trucks;
      7. (G) Furniture; and
      8. (H) Electronic equipment.
  2. (b) The lessor, or owner of leased tangible personal property, shall provide such information as the assessor may request regarding the location, valuation or use of such property.
Backlinks (2)
History (3)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-621
  • Acts 1990, ch. 1075, §§ 8, 9.
§ 67-5-905. Schedules — Tangible personal property subject to § 67-5-904.
  1. Subject to § 67-5-904, each item of tangible personal property required to be listed on the schedule as provided by this part is subject to a first lien securing the property taxes, interest, and court costs as may be levied upon the total assessment of tangible personal property.
History (1)
  • Acts 2024, ch. 967, § 2.
Part 10 Classification and Assessment — Agricultural, Forest and Open Space Land Act of 1976
§ 67-5-1001. Short title.
  1. Sections 11-14-201, 11-15-107, 11-15-108, and this part shall be known and may be cited as the “Agricultural, Forest and Open Space Land Act of 1976.”
Backlinks (3)
History (2)
  • Acts 1976, ch. 782, § 1
  • T.C.A., § 67-650.
§ 67-5-1002. Legislative findings.
  1. The general assembly finds that:
    1. (1) The existence of much agricultural, forest and open space land is threatened by pressure from urbanization, scattered residential and commercial development, and the system of property taxation. This pressure is the result of urban sprawl around urban and metropolitan areas, which also brings about land use conflicts, creates high costs for public services, contributes to increased energy usage, and stimulates land speculation;
    2. (2) The preservation of open space in or near urban areas contributes to:
      1. (A) The use, enjoyment and economic value of surrounding residential, commercial, industrial or public use lands;
      2. (B) The conservation of natural resources, water, air, and wildlife;
      3. (C) The planning and preservation of land in an open condition for the general welfare;
      4. (D) A relief from the monotony of continued urban sprawl; and
      5. (E) An opportunity for the study and enjoyment of natural areas by urban and suburban residents who might not otherwise have access to such amenities;
    3. (3) Many prime agricultural and forest lands in this state, valuable for producing food and fiber for a hungry world, are being permanently lost for any agricultural purposes and that these lands constitute important economic, physical, social, and esthetic assets to the surrounding lands and to the people of this state;
    4. (4) Many landowners are being forced by economic pressures to sell such agricultural, forest, or open space land for premature development by the imposition of taxes based, not on the value of the land in its current use, but on its potential for conversion to another use; and
    5. (5) The findings of subdivisions (1)-(4) must be tempered by the fact that in rural counties an over-abundance of land held by a single landowner that is classified on the tax rolls by this part could have an adverse effect upon the ad valorem tax base of the county, and thereby disrupt needed services provided by the county. To this end, a limit must be placed upon the number of acres that any one (1) owner within a tax jurisdiction can bring within this part.
      Backlinks (2)
Backlinks (2)
History (3)
  • Acts 1976, ch. 782, § 2
  • T.C.A., § 67-651
  • Acts 1984, ch. 685, § 1.
§ 67-5-1003. Policy of state.
  1. The general assembly declares that it is the policy of this state that:
    1. (1) The owners of existing open space should have the opportunity for themselves, their heirs and assigns to preserve such land in its existing open condition, if it is their desire to do so, and if any or all of the benefits enumerated in § 67-5-1002 would accrue to the public thereby, and that the taxing or zoning powers of governmental entities in Tennessee should not be used to force unwise, unplanned or premature development of such land;
    2. (2) The preservation of open space is a public purpose necessary for sound, healthful, and well-planned urban development, that the economic development of urban and suburban areas can be enhanced by the preservation of such open space, and that public funds may be expended by the state or any municipality or county in the state for the purpose of preserving existing open space for one (1) or more of the reasons enumerated in this section; and
    3. (3) No person may place more than three thousand (3,000) acres of land within any one (1) taxing jurisdiction under this part. For purposes of this maximum limit, ownership shall be attributed among multiple owners as follows: a person shall be deemed to have placed under the provisions of this part that percentage of the total acreage of any parcel classified under this part that equals the percentage of such person's ownership interest in such parcel. If a parcel classified under this part is owned by a trust, partnership, corporation or other artificial entity, a person shall be deemed to have placed under this part that percentage of the total acreage of the parcel that equals the person's percentage interest in the ownership or net earnings of the entity. Further, a parcel owned by an artificial entity shall be aggregated with parcels owned by other artificial entities having fifty percent (50%) or more common ownership or control, and together the parcels may not exceed the maximum acreage provided in this section. To the extent that a parcel of property is owned by a person who is disqualified under this subdivision (3), such property or portion thereof in which such person owns an interest shall be ineligible for classification under this part. If property is disqualified for use value classification solely as the result of these ownership attribution provisions, any rollback assessment due shall be limited to tax savings accruing after April 14, 1992. This subdivision (3) shall not operate to apply the maximum acreage limitation to an agricultural classification that the owner obtained prior to July 1, 1984.
      Backlinks (3)
Backlinks (1)
History (6)
  • Acts 1976, ch. 782, § 3
  • T.C.A., § 67-652
  • Acts 1984, ch. 685, § 2
  • 1992, ch. 661, § 1
  • 2008, ch. 1161, § 1
  • 2024, ch. 978, § 1.
§ 67-5-1004. Definitions.
  1. As used in §§ 11-14-201, 11-15-107, 11-15-108, and this part, unless the context otherwise requires:
    1. (1)
      1. (A) “Agricultural land” means land that meets the minimum size requirements specified in subdivision (1)(B) and that either:
        1. (i) Constitutes a farm unit engaged in the production or growing of agricultural products; or
        2. (ii) Has been farmed by the owner or the owner's parent or spouse for at least twenty-five (25) years and is used as the residence of the owner and not used for any purpose inconsistent with an agricultural use;
      2. (B) To be eligible as agricultural land, property must meet one (1) of the following minimum size requirements by consisting of:
        1. (i) A single tract of at least fifteen (15) acres, including woodlands and wastelands;
        2. (ii) Two (2) noncontiguous tracts within the same county, including woodlands and wastelands, one (1) of which is at least fifteen (15) acres and the other being at least ten (10) acres and together constituting a farm unit; or
        3. (iii) Two (2) noncontiguous tracts within the same county totaling at least fifteen (15) acres, including woodlands and wastelands, that are separated only by a road, body of water, or public or private easement and together constituting a farm unit;
    2. (2) “Commissioner” means the commissioner of agriculture or the commissioner's designee;
    3. (3)
      1. (A) “Forest land” means land constituting a forest unit engaged in the growing of trees under a sound program of sustained yield management that has tree growth in such quantity and quality and is so managed as to constitute a forest;
      2. (B) To be eligible as forest land, property must meet one (1) of the following minimum size requirements by consisting of:
        1. (i) A single tract of at least fifteen (15) acres; or
        2. (ii) Two (2) noncontiguous tracts within the same county totaling at least fifteen (15) acres that are separated only by a road, body of water, or public or private easement and together constitute a forest unit;
    4. (4) “Gross agricultural income” means total income, exclusive of adjustments or deductions, derived from the production or growing of crops, plants, animals, aquaculture products, nursery, or floral products, including income from the rental of property for such purposes and income from federal set aside and related agricultural management programs;
    5. (5) “Local government advisory committee,” “Tennessee local government advisory committee,” or “Tennessee local government planning advisory committee” means the local government planning advisory committee created by § 4-3-727;
    6. (6) “Open space easement” means a perpetual right in land of less than fee simple that:
      1. (A) Obligates the grantor and the grantor's heirs and assigns to certain restrictions constituted to maintain and enhance the existing open or natural character of the land;
      2. (B) Is restricted to the area defined in the easement deed; and
      3. (C) Grants no right of physical access to the public, except as provided for in the easement;
    7. (7) “Open space land” means any area of land other than agricultural and forest land, of not less than three (3) acres, characterized principally by open or natural condition, and whose preservation would tend to provide the public with one (1) or more of the benefits enumerated in § 67-5-1002, and that is not currently in agricultural land or forest land use. “Open space land” includes greenbelt lands or lands primarily devoted to recreational use;
      Backlinks (2)
    8. (8) “Owner” means the person holding title to the land;
    9. (9) “Person” means any individual, partnership, corporation, organization, association, or other legal entity;
    10. (10) “Planning commission” means a commission created under § 13-3-101 or § 13-4-101;
    11. (11) “Present use value” means the value of land based on its current use as either agricultural, forest, or open space land and assuming that there is no possibility of the land being used for another purpose;
    12. (12) “Rollback taxes” means the amount of back tax differential payable under § 67-5-1008; and
    13. (13) “State forester” means the director of the division of forestry.
Backlinks (10)
History (13)
  • Acts 1976, ch. 782, § 4
  • 1977, ch. 256, § 1
  • 1978, ch. 613, §§ 1, 2
  • T.C.A., § 67-653
  • Acts 1984, ch. 685, § 3
  • 1992, ch. 661, §§ 2-5
  • 1992, ch. 693, § 18
  • 1998, ch. 1066, § 8
  • 1999, ch. 141, § 1
  • 2002, ch. 632, § 1
  • 2017, ch. 297, § 2
  • 2019, ch. 436, § 1
  • 2022, ch. 658, § 1.
§ 67-5-1005. Classification of agricultural land.
  1. (a)
    1. (1) Any owner of land may apply for its classification as agricultural by filing a written application with the assessor of property. The application must be filed by March 15. Reapplication thereafter is not required so long as the ownership as of the assessment date remains unchanged. Property that qualified as agricultural the year before under different ownership is disqualified if the new owner does not timely apply. The assessor shall send a notice of disqualification to these owners, but shall accept a late application if filed within thirty (30) days of the notice of disqualification and accompanied by a late application fee of fifty dollars ($50.00).
    2. (2) The assessor shall determine whether such land is agricultural land, and, if such a determination is made, the assessor shall classify and include it as such on the county tax roll.
    3. (3) In determining whether any land is agricultural land, the assessor of property shall take into account, among other things, the acreage of such land, the productivity of such land, and the portion thereof in actual use for farming or held for farming or agricultural operation. The assessor may presume that a tract of land is used as agricultural land, if the land produces gross agricultural income averaging at least one thousand five hundred dollars ($1,500) per year over any three-year period in which the land is so classified. The presumption may be rebutted, notwithstanding the level of agricultural income by evidence indicating whether the property is used as “agricultural land” as defined in this part.
    4. (4) In determining whether land is agricultural land, the assessor of property shall take into account whether the land is enrolled in a conservation program administered by the United States department of agriculture, whether the land is in a conservation easement as defined by § 66-9-303, or whether the land is restricted by § 68-212-225, if, at the time of its enrollment, the land was classified as agricultural land by the assessor of property.
  2. (b) An application for classification of land as agricultural land shall be made upon a form prescribed by the state board of equalization and shall set forth a description of the land, a general description of the use to which it is being put, and such other information as the assessor may require to aid the assessor in determining whether the land qualifies for classification as agricultural land.
  3. (c) The assessor shall verify actual agricultural uses claimed for the property during the on-site review provided under § 67-5-1601. The assessor may at any time require other proof of use or ownership necessary to verify compliance with this part.
  4. (d) Any person aggrieved by the denial of any application for the classification of land as agricultural land has the same rights and remedies for appeal and relief as are provided in the general statutes for taxpayers claiming to be aggrieved by the actions of assessors of property or boards of equalization.
Backlinks (1)
History (12)
  • Acts 1976, ch. 782, § 5
  • T.C.A., § 67-654
  • Acts 1989, ch. 56, § 1
  • 1992, ch. 661, §§ 6, 7
  • 1994, ch. 838, § 1
  • 1996, ch. 707, § 1
  • 1999, ch. 141, §§ 2, 3
  • 2001, ch. 152, § 1
  • 2008, ch. 971, § 1
  • 2008, ch. 1161, § 2
  • 2021, ch. 383, § 1
  • 2023, ch. 456, § 1.
§ 67-5-1006. Classification of forest land.
  1. (a)
    1. (1) Any owner of land may apply for its classification as forest land by filing a written application with the assessor of property. The application must be filed by March 15. Reapplication thereafter is not required so long as the ownership as of the assessment date remains unchanged. Property that qualified as forest land the year before under different ownership is disqualified if the new owner does not timely apply. The assessor shall send a notice of disqualification to these owners, but shall accept a late application if filed within thirty (30) days of the notice of disqualification and accompanied by a late application fee of fifty dollars ($50.00).
    2. (2) The assessor shall determine whether such land is forest land, and, if such a determination is made, the assessor shall classify and include it as such on the county tax roll.
  2. (b)
    1. (1) In determining whether any land is forest land, the assessor of property shall take into account, among other things, the acreage of such land, the amount and type of timber on the land, the actual and potential growth rate of the timber, and the management practices being applied to the land and to the timber on it.
    2. (2) The assessor of property may request the advice of the state forester in determining whether any land should be classified as forest land, and the state forester shall make such advice available.
    3. (3) In determining whether land is forest land, the assessor of property shall take into account whether the land is enrolled in a conservation program administered by the United States department of agriculture, whether the land is in a conservation easement as defined by § 66-9-303, or whether the land is restricted by § 68-212-225, if, at the time of its enrollment, the land was classified as forest land by the assessor of property.
  3. (c) An application for classification of land as forest land shall be made upon a form prescribed by the state board of equalization, in consultation with the state forester, and shall include a description of the land, a general description of the uses to which it is being put, aerial photographs, if available, and such other information as the assessor of property or state forester may require to aid the assessor of property in determining whether the land qualifies for designation as forest land.
  4. (d) Any person aggrieved by the denial of an application for the classification of land as forest land has the same rights and remedies for appeal and relief as are provided in the general statutes for taxpayers claiming to be aggrieved by the actions of assessors of property or boards of equalization.
Backlinks (2)
History (10)
  • Acts 1976, ch. 782, § 6
  • T.C.A., § 67-655
  • Acts 1989, ch. 56, § 2
  • 1999, ch. 141, § 4
  • 2000, ch. 599, § 1
  • 2001, ch. 152, § 2
  • 2008, ch. 971, § 1
  • 2008, ch. 1161, § 3. 2017, ch. 297, § 3
  • 2021, ch. 383, § 2
  • 2023, ch. 456, § 2.
§ 67-5-1007. Classification of open space.
  1. (a)
    1. (1) The planning commission, in preparing a land use or comprehensive plan for the municipality or county, may designate upon such plan areas that it recommends for preservation as areas of open space land, other than lands currently in agricultural and forestry uses.
    2. (2) Land included in any area so designated upon such plan as finally adopted may be classified as open space land for purposes of property taxation, if there has been no change in the use of such area that has adversely affected its essential character as an area of open space land between the date of the adoption of such plan and the date of such classification.
  2. (b)
    1. (1) Any owner of land may apply for its classification as open space land by filing a written application with the assessor of property. The application must be filed by March 15. Reapplication thereafter is not required so long as the ownership as of the assessment date remains unchanged. Property that qualified as open space land the year before under different ownership is disqualified if the new owner does not timely apply. The assessor shall send a notice of disqualification to these owners, but shall accept a late application if filed within thirty (30) days of the notice of disqualification and accompanied by a late application fee of fifty dollars ($50.00).
    2. (2) Such assessor shall determine whether there has been any change in the area designated as an area of open space land upon the plan of such municipality or county and, if the assessor determines that there has been no such change, the assessor shall classify such land as open space land and include it as such upon the tax rolls of the county.
    3. (3) An application for classification of land as open space land shall be made upon a form prescribed by the state board of equalization and shall set forth a description of the land, a general description of the use to which it is being put, and such other information as the assessor may require to aid the assessor in determining whether such land qualifies for such classification.
    Backlinks (1)
  3. (c) Any person aggrieved by the denial by an assessor of any application for the classification of land as open space land shall have the same rights and remedies for appeal and relief as are provided in the general statutes for taxpayers claiming to be aggrieved by the actions of assessors or boards of equalization.
Backlinks (1)
History (8)
  • Acts 1976, ch. 782, § 7
  • T.C.A., § 67-656
  • Acts 1989, ch. 56, § 3
  • 1999, ch. 141, § 5
  • 2000, ch. 599, § 2
  • 2001, ch. 152, § 3
  • 2008, ch. 1161, § 4
  • 2021, ch. 383, § 3.
§ 67-5-1008. Present use valuation — Capitalization of income method — Rollback taxes — Involuntary conversion of use.
  1. (a) When a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, it shall be subsequently considered that its current use for agricultural or timber purposes or as open space used for neither of these purposes is its immediate most suitable economic use, and assessment shall be based upon its value in that current use, rather than on value for some other use as may be determined in accordance with part 6 of this chapter. It is the responsibility of the applicant to promptly notify the assessor of any change in the use or ownership of the property that might affect its eligibility under this part.
  2. (b)
    1. (1) After a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, the assessor of property shall record it on a separate list for the classified property. The assessor may record with the register of deeds the application for the classification of the property. However, if the assessor does not record the application, then the property owner shall record with the register of deeds the application for the classification of the property. Any fees that may be required shall be paid by the property owner.
    2. (2) Henceforth, the assessor shall appraise the land and compute the taxes each year based upon both:
      1. (A) The twenty-five percent (25%) of appraised value applicable to property in the farm classification and present use value; and
      2. (B) Farm classification and value as determined under part 6 of this chapter, but taxes shall be assessed and paid only on the basis of farm classification and present use value under this part.
    3. (3) The taxes computed under part 6 of this chapter shall be used to compute the rollback taxes, as defined in § 67-5-1004 and as provided for in subsection (d).
    4. (4) The general assembly finds that value as determined under subdivision (b)(2)(B) should not be deemed the value of property for any purpose other than a future assessment of rollback taxes, because it does not determine the actual tax liability of a qualifying owner at the time of valuation. Accordingly, value as determined under subdivision (b)(2)(B) shall not be deemed determinative of fair market value for any purpose other than the administration of property taxes under this title.
  3. (c)
    1. (1) A parcel of land classified by the assessor as agricultural, forest or open space land under this part shall be valued by dividing three (3) into the sum of two (2) times the use value as defined in this subsection (c), plus the farm land value as defined in this subsection (c). The rate of increase in per acre present use values as determined under this subsection (c) shall not exceed a factor measured by the number of years since the last general reappraisal or updating of values in the county, times six percent (6%).
    2. (2)
      1. (A) Use value shall be determined by dividing:
        1. (i) The annual agricultural income estimate for such parcel as determined by the division of property tax assessment by;
        2. (ii) The capitalization rate as determined in subdivision (c)(2)(C).
      2. (B) For purposes of this part, “agricultural income estimate” means anticipated net return to land utilizing sound farming or forestry practices. In determining anticipated net return to land that is used for agricultural and forestry purposes, the division of property tax assessments shall consider farm income, or forestry income, soil productivity, topography, susceptibility to flooding, rental value and other factors that may serve to determine anticipated agricultural or forestry income. The annual agricultural income estimate for a parcel of open space land shall be the same as that for the least productive type of agricultural land.
      3. (C) The capitalization rate shall be the maximum allowable rate on loans for terms in excess of five (5) years guaranteed by the federal Farm Service Agency or its successor, as of the assessment date for the year in which the use value schedule is being developed. The rate may be adjusted by no more than one hundred (100) basis points to reflect differences in land classes within a jurisdiction.
    3. (3) Farm land value shall be determined by the division of property assessments based solely on farm-to-farm sales least influenced by commercial, industrial, residential, recreational or urban development, the potential for such development, or any other speculative factors.
    4. (4) The state board of equalization, upon petition by at least ten (10) owners of agricultural, forest or open space land, or upon petition of any organization representing ten (10) or more owners of agricultural, forest or open space land, shall convene a hearing to determine whether the capitalization rate has been properly determined by the division of property tax assessments, whether the agricultural income estimates determined by the division of property tax assessments are fair and reasonable, or if the farm land values have been determined in accordance with this section. Such hearing shall be held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3. The petition shall be filed at the office of the state board of equalization on or before twenty (20) days after the date the division of property assessments publishes notice of the availability of the proposed use value schedule in a newspaper of general circulation within the county.
  4. (d)
    1. (1) The appropriate assessor shall compute the amount of taxes saved by the difference in present use value assessment and value assessment under part 6 of this chapter, for each of the preceding three (3) years for agricultural and forest land, and for the preceding five (5) years for open space land, and the assessor shall notify the trustee that such amount is payable, if:
      1. (A) Such land ceases to qualify as agricultural land, forest land, or open space land as defined in § 67-5-1004;
      2. (B) The owner of such land requests in writing that the classification as agricultural land, forest land, or open space land be withdrawn;
      3. (C) The land is covered by a duly recorded subdivision plat or an unrecorded plan of development and any portion is being developed; except that, where a recorded plat or an unrecorded plan of development contains phases or sections, only the phases or sections being developed are disqualified;
      4. (D) An owner fails to file an application as required by this part;
      5. (E) The land exceeds the acreage limitations of § 67-5-1003(3); or
      6. (F) The land is conveyed or transferred and the conveyance or transfer would render the status of the land exempt.
    2. (2) When the tax rate for the most recent year of rollback taxes is not yet available, the assessor shall calculate the amount of taxes saved for the most recent year by using the last made assessment and rate fixed according to law, and the trustee shall accept tender of the amount determined to be owing.
    3. (3) The amount of tax savings calculated under this subsection (d) shall be the rollback taxes due as the result of disqualification or withdrawal of the land from classification under this part. Rollback taxes shall be payable from the date written notice is provided by the assessor, but shall not be delinquent until March 1 of the following year. When the assessor determines there is liability for rollback taxes, the assessor shall give written notice to the tax collecting official identifying the basis of the rollback taxes and the person the assessor finds to be responsible for payment, and the assessor shall provide a copy of the notice to the responsible person. Rollback taxes shall be a first lien on the disqualified property in the same manner as other property taxes, and shall also be a personal responsibility of the current owner or seller of the land as provided in this part. The assessor may void the rollback assessment, if it determined that the assessment was imposed in error. Liability for rollback taxes, but not property values, may be appealed to the state board of equalization by March 1 of the year following the notice by the assessor. However, property values fixing the amount of rollback taxes may only be appealed as otherwise provided by law.
    4. (4)
      1. (A) If, under subdivision (d)(1), only a portion of a parcel is subject to rollback taxes, the assessor of property shall apportion the assessment of such parcel on the first tax roll prepared after such taxes become payable, and enter the apportioned amount attributable to such portion as a separately assessed parcel on the tax roll.
      2. (B) Such apportionment shall be made for each of the years to which the rollback taxes apply.
  5. (e)
    1. (1) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is converted to a use other than those stipulated herein by virtue of a taking by eminent domain or other involuntary proceeding, except a tax sale, such land or any portion thereof involuntarily converted to such other use shall not be subject to rollback taxes by the landowner, and the agency or body doing the taking shall be liable for the rollback taxes. Property transferred and converted to an exempt or nonqualifying use shall be considered to have been converted involuntarily if the transferee or an agent for the transferee sought the transfer and had power of eminent domain.
    2. (2) In the event the land involuntarily converted to such other use constitutes only a portion of a parcel so classified on the assessment rolls, the assessor shall apportion the assessment and enter the portion involuntarily converted as a separately assessed parcel on the appropriate portion of the assessment roll. For as long as the landowner continues to own the remaining portion of such parcel and for as long as the landowner's lineal descendants collectively own at least fifty percent (50%) of the remaining portion of such parcel, the remaining portion so owned shall not be disqualified from use value classification under this part solely because it is made too small to qualify as the result of the involuntary proceeding.
    3. (3) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is acquired by a bank, as defined in § 45-2-107(a)(1)(A), by a savings and loan association, as defined in § 45-3-104(a), or by a holder of a deed of trust or mortgage in satisfaction or partial satisfaction of a debt previously contracted in good faith, such land or any portion thereof so acquired shall not be subject to rollback taxes assessed against or payable by the bank or savings and loan association, and shall be subject to rollback taxes, only if the land is used for a non-green belt purpose or after such land is sold by the bank, savings and loan association or a holder of a deed of trust or mortgage and then only as provided in subsection (d). This subdivision (e)(3) shall likewise apply to the temporary transfer of property classified under this part to a trustee in bankruptcy.
    4. (4)
      1. (A) If any property or any portion of the property classified under this part as agricultural, forest, or open space land is disqualified by a change in the law or as a result of an assessor's correction of a prior error of law or fact, then the property or any portion of the property that is disqualified shall not be assessable for rollback taxes. The property owner shall be liable for rollback taxes under these circumstances if the erroneous classification resulted from any fraud, deception, or intentional misrepresentation, misstatement, or omission of full statement by the property owner or the property owner's designee.
      2. (B) Nothing in this subdivision (e)(4) shall relieve a property owner of liability for rollback taxes if other disqualifying circumstances occur before the property has been assessed at market value for three (3) years.
  6. (f) If the sale of agricultural, forest or open space land will result in such property being disqualified as agricultural, forest or open space land due to conversion to an ineligible use or otherwise, the seller shall be liable for rollback taxes, unless otherwise provided by written contract. If the buyer declares in writing at the time of sale an intention to continue the greenbelt classification but fails to file any form necessary to continue the classification within ninety (90) days from the sale date, the rollback taxes shall become solely the responsibility of the buyer.
  7. (g) For purposes of valuation pursuant to this section, the maximum acreage available for any one (1) owner classified as forest or open space land under this part shall be three thousand (3,000) acres. This subsection (g) shall operate to change the classification of any such land in excess of three thousand (3,000) acres that has been so classified under this part prior to July 1, 1984.
  8. (h) Property passing to a lineal descendant of a deceased greenbelt owner, by reason of the death of the greenbelt owner, shall not be subject to rollback solely because the total greenbelt acreage of the new owner exceeds the maximum under § 67-5-1003, or will exceed the maximum following the transfer. Property exceeding the limit in these circumstances shall be disqualified from greenbelt classification, but shall not be assessable for rollback unless other disqualifying circumstances occur before the property has been assessed at market value three (3) years.
Backlinks (1)
History (22)
  • Acts 1976, ch. 782, § 8
  • 1979, ch. 149, §§ 1, 2
  • 1982, ch. 818, § 1
  • 1983, ch. 267, § 1
  • T.C.A., § 67-657
  • Acts 1987, ch. 279, §§ 1, 2, 4
  • 1992, ch. 661, §§ 8-12
  • 1995, ch. 459, §§ 1, 2
  • 1997, ch. 160, § 1
  • 1998, ch. 683, § 1
  • 1999, ch. 141, § 6
  • 2001, ch. 152, §§ 4-7
  • 2002, ch. 632, §§ 2-5
  • 2006, ch. 861, § 2
  • 2008, ch. 971, § 1
  • 2008, ch. 1161, §§ 5, 6
  • 2010, ch. 928, § 1
  • 2014, ch. 589, § 1
  • 2016, ch. 685, § 1
  • 2019, ch. 322, § 1
  • 2021, ch. 383, § 4
  • 2024, ch. 978, § 2.
§ 67-5-1009. Assessment of open space easement — Basis of classification.
  1. (a) Where an open space easement as defined in § 67-5-1004 has been executed and recorded for the benefit of a local government or a qualified conservation organization as provided in this section or as provided in § 11-15-107, the assessor of property shall henceforth assess the value and classification of such land, and taxes shall be computed and recorded each year both on the basis of:
    1. (1) Farm classification and value in its existing use under this part, taking into consideration the limitation on future use as provided for in the easement; and
    2. (2) Such classification and value, under part 6 of this chapter, as if the easement did not exist; but taxes shall be assessed and paid only on the basis of farm classification and fair market value in its existing use, taking into consideration the limitation on future use as provided for in the easement.
  2. (b)
    1. (1) To serve as the basis of a classification as open space land pursuant to this part, an open space easement executed for the benefit of a local government shall be preceded by a consultation with a local planning commission and shall be subject to cancellation by the local governing body, only if all of the following conditions are met:
      1. (A) The easement has been in effect for a period of at least ten (10) years;
      2. (B) The local governing body determines that the open space is not needed in that location and that the public interest would be better served by cancellation of the easement;
      3. (C) The local planning commission finds that the open space is not needed in that location and that the public interest would be better served by the cancellation of the easement; and
      4. (D) The owner has paid to the county and municipality in which the land is situated an amount equal to the difference between the taxes actually paid during the ten (10) preceding years and the taxes computed during the ten (10) preceding years on the basis of fair market value and classification of the land as if the easement had not existed, as provided for in this section.
    2. (2) Nothing in this subsection (b) shall be deemed to prohibit the owner and the local government from agreeing to additional conditions that must be met before cancellation is allowed.
  3. (c)
    1. (1) Open space land, as defined in § 67-5-1004, that comprises at least fifteen (15) contiguous acres may also qualify for classification and assessment under this part, if the owner grants an open space easement to a qualified conservation organization and the grantee organization accepts the easement in writing.
    2. (2) Any portion of the land that is in actual use as a home site or any other non-open space use shall not qualify as open space land for purposes of this section.
    3. (3) If the owner of the land reserves a portion of the land for future development, construction of improvements for private use, or any other non-open space use, then that portion shall lose eligibility as open space land upon commencement of the non-open space use and the owner shall pay to the affected county and city the property taxes saved as a result of the open space classification of that portion of the land and an additional amount equal to ten percent (10%) of the taxes saved.
    4. (4) Any written agreement for easement entered into after July 1, 2007, shall contain a disclosure that rollback taxes may be due if the easement is cancelled.
    5. (5) A qualified conservation organization is a nonprofit organization that is approved by the Tennessee heritage conservation trust fund board of trustees and meets the eligibility criteria established by the trustees for recipients of trust fund grants or loans. For purposes of this section, a qualified conservation organization also includes any department or agency of the United States government which acquires an easement pursuant to law for the purpose of restoring or conserving land for natural resources, water, air and wildlife.
  4. (d) Any owner of open space easement land who seeks to have the land classified for assessment pursuant to this part shall apply to the assessor as provided in § 67-5-1007(b) and record a copy of the easement and the grantee's written acceptance with the register of deeds.
Backlinks (5)
History (5)
  • Acts 1976, ch. 782, § 10
  • T.C.A., § 67-658
  • Acts 1996, ch. 809, §§ 1, 2
  • 2007, ch. 514, §§ 1, 2
  • 2014, ch. 846, § 1.
§ 67-5-1010. Noncompliance by assessor.
  1. In the event that any assessor of property fails to properly carry out the assessor of property's duties in accordance with this part, all compensation to such assessor shall be discontinued pursuant to § 67-5-305.
History (3)
  • Acts 1982, ch. 818, § 2
  • T.C.A., § 67-659
  • Acts 2008, ch. 971, § 1.
§ 67-5-1011. Land classified prior to July 1, 1984 — Classification change in certain counties.
  1. In counties having a population according to the 1980 federal census or any subsequent federal census of not less than thirteen thousand nine hundred (13,900) nor more than fourteen thousand (14,000), §§ 67-5-1002(5), 67-5-1003(3), and 67-5-1004(7), concerning the maximum limit of acreage available for any one (1) owner under this part, shall operate to change the classification of any land which has been classified under this part prior to July 1, 1984.
History (1)
  • Acts 1987, ch. 207, § 1.
§ 67-5-1012. Change in classification of land — Referendum.
  1. (a) In counties having a population according to the 1980 federal census or any subsequent federal census of not less than fourteen thousand nine hundred (14,900) nor more than fourteen thousand nine hundred twenty-five (14,925), §§ 67-5-1002(5), 67-5-1003(3) and 67-5-1004(7), concerning the maximum limit of acreage available for any one (1) owner under this part, shall operate to change the classification of any land which has been classified under this part prior to July 1, 1984.
  2. (b) This section shall have no effect unless it is approved by a two-thirds (⅔) vote of the county legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the county legislative body and certified by the presiding officer to the secretary of state.
History (2)
  • Acts 1985, ch. 199, §§ 1, 3
  • T.C.A., § 67-5-1050.
Part 12 Classification and Assessment — Insurance Companies
§ 67-5-1201. Property and stock taxable.
  1. The corporate property and capital stock employed in Tennessee of every insurance company whose principal office is located in the state shall be taxed according to its value, that value to be ascertained as provided in this part.
Backlinks (1)
History (2)
  • Acts 1968, ch. 431, § 1
  • T.C.A., § 67-729.
§ 67-5-1202. Place of assessment.
  1. The corporate property and capital stock referred to in § 67-5-1201 shall be assessed at the following places:
    1. (1) The real property and tangible personal property shall be assessed and taxed where situated; and
    2. (2) The balance of such corporate property and capital stock shall be assessed and taxed in the county or civil district in which the principal office of such company is maintained.
      Backlinks (1)
History (2)
  • Acts 1968, ch. 431, § 2
  • T.C.A., § 67-730.
§ 67-5-1203. Determination of value.
  1. (a) The value of such real property and tangible personal property shall be ascertained in the same manner as the real property and tangible personal property of other taxpayers.
  2. (b) The value of the balance of the corporate property and capital stock employed in Tennessee by an insurance company with stockholders shall be ascertained in the following manner:
    1. (1) The assessor shall first determine the aggregate amount of the issued and outstanding capital stock and surplus of such company as shown on its annual statement and shall deduct therefrom:
      1. (A) One-fourth (¼) the sum of the value of the property held at the end of each calendar quarter by such company which is exempt from ad valorem property taxation under any law of this state or of the United States; and
      2. (B) The assessed value of all the real and tangible personal property of such company situated in and having a permanent situs in other states;
    2. (2) The assessor shall then apportion such remaining value to this state on the basis of the smaller of the following two (2) ratios:
      1. (A) The ratio which the direct premiums and annuity considerations received by such company from policies on persons residing in or property located in this state during the preceding calendar year bear to the total premiums, including premiums for reinsurance assumed, and annuity considerations received by such company during such year from all sources; or
      2. (B) The ratio which the aggregate direct premiums and annuity considerations received by all companies subject to this part from policies on persons residing in or property located in this state during the preceding calendar year bear to the aggregate total premiums, including premiums for reinsurance assumed, and annuity considerations received by all such companies during such year from all sources, which ratio shall be computed and published by the commissioner of commerce and insurance on or before April 15 of each year;
      Backlinks (1)
    3. (3) From such apportioned value, the assessor shall deduct:
      1. (A) The assessed value of all real property and tangible personal property of such company otherwise assessed or returned for taxation in Tennessee; and
      2. (B) The assessed value of all real property in Tennessee occupied by such company as its principal office under a lease which provides that all ad valorem taxes on such property shall be paid by such company, and which has been registered in the county where such principal office is located;
      3. and the remainder shall constitute the value of the balance of the corporate property and the capital stock employed in Tennessee by such company.
    Backlinks (2)
  3. (c)
    1. (1) In the case of an insurance company without stockholders, the value of the corporate property of such company for purposes of this section, excluding real property and tangible personal property, shall be equal to the total dividends paid to policyholders in the preceding calendar year.
    2. (2) For purposes of this subsection (c), “dividends” do not include returns or reductions of premiums or credits applied to premiums.
  4. (d) The assessor shall make the assessment on such value at the same percentage or ratio of assessment to value of property as was provided by law for the year 1972.
History (4)
  • Acts 1968, ch. 431, § 3
  • 1973, ch. 226, § 9
  • T.C.A., § 67-731
  • Acts 2013, ch. 328, §§ 1, 2.
§ 67-5-1204. New insurance companies — Application.
  1. (a) During the first fifteen (15) full years an insurance company is in business, its apportionment ratio, determined in accordance with § 67-5-1203(b)(2), shall be reduced proportionately at the rate of one-fifteenth (⁄) for each full year that fifteen (15) exceeds the number of full years it has been in business.
  2. (b) The period of fifteen (15) full years shall be measured from the earliest date the company, or any predecessor insurance company of which the company is the continuing corporation, was authorized and qualified to do insurance business subject to the maximum fifteen (15) years of reduced assessments as set forth in subsection (c).
  3. (c) This section shall not apply to any insurance company formed as a successor in interest to any insurance company that has already received a reduction in its apportionment ratio for the entirety of the fifteen (15) years permitted pursuant to subsection (a); provided, however, that any insurance company formed as a successor in interest in the year 2006 shall be entitled to receive the reduction to its apportionment ratio provided in subsection (a) during the first five (5) full years of its existence to the same extent as a new insurance company not formed as a successor in interest.
History (3)
  • Acts 1968, ch. 431, § 4
  • T.C.A., § 67-732
  • Acts 2009, ch. 361, §§ 1, 2.
§ 67-5-1205. Elements included in valuation of stock.
  1. (a) The value of the corporate property and capital stock of each company subject to this part shall be construed as including all the tangible and intangible value of such company.
  2. (b) The assessment and taxation of such corporate property and capital stock under this part shall be in lieu of the taxation of the income derived from such corporate property and capital stock and of the assessment and taxation of the shares of stock of such company as the personal property of its stockholders.
  3. (c) No person shall be taxed on the income derived from any stock which constitutes a part of the capital stock of any insurance company which is itself subject to this part or which has a wholly-owned subsidiary which is subject to this part.
History (2)
  • Acts 1968, ch. 431, § 5
  • T.C.A., § 67-733.
§ 67-5-1206. Assessment schedule — Reporting schedule — Forced assessment — Remedies.
  1. (a) The president or chief financial officer of each company subject to this part shall fill out and furnish under oath to the assessor of the county in which the principal office of such company is maintained an assessment schedule in writing, which schedule shall contain the following information:
    1. (1) The number of shares of each class of capital stock issued and outstanding and the par value per share;
    2. (2) The amount of surplus, including special surplus funds, paid-in and contributed surplus and unassigned surplus;
    3. (3) An itemized statement of the value of all property which is exempt from ad valorem taxation by any law of this state or of the United States, showing the appropriate code section granting the exemption for each item;
    4. (4) An itemized statement of the assessed value of all real property and tangible personal property having a situs outside Tennessee, showing the location of each item;
    5. (5) An itemized statement of the assessed value of all real property and tangible personal property having a situs in Tennessee, showing the location of each item;
    6. (6) A statement of the assessed value of all real property in Tennessee occupied by such company as its principal office under a lease, together with a copy of such lease;
    7. (7) A statement of the date such company was first authorized and qualified to do insurance business, or, if such company is the continuing corporation resulting from a merger or consolidation, a statement of the earliest date its predecessor corporations were authorized and qualified to do insurance business; and
    8. (8) Such other facts pertaining to the value of its corporate property and capital stock as may be deemed necessary or material by the assessor.
  2. (b) The assessment schedule filed pursuant to this section shall be derived from, and consistent with, the annual statement of such company as of the last day of the preceding calendar year as filed with the commissioner of commerce and insurance.
  3. (c) The assessor shall furnish by February 1 a reporting schedule in a form approved by the state board of equalization to each company subject to assessment under this part, and the schedule shall be completed and returned by the company by March 1 of the year for which the assessment is to be made. A taxpayer who fails, refuses or neglects to complete, sign, and file the schedule with the assessor of property, as provided in subsection (a), shall be deemed to have waived objections to the forced assessment determined by the assessor, subject only to the remedies provided in subsection (d). In determining a forced assessment, the assessor shall consider available evidence indicative of the assessable value of property assessable to the taxpayer under this section, and having determined the assessable value of property assessable to the taxpayer under this section, the assessor shall give the taxpayer notice of the assessment by United States mail, addressed to the last known address of the taxpayer, or the taxpayer's agent, at least ten (10) calendar days before the local board of equalization commences its annual session. Failure of the assessor to send a schedule or failure of the taxpayer to receive a schedule shall not relieve or excuse any taxpayer from filing such schedule by March 1, nor shall it prevent the assessor from issuing a forced assessment against the taxpayer.
  4. (d) If a forced assessment is shown to exceed the assessable value of the taxpayer's property, then the taxpayer shall have the following remedies:
    1. (1) The taxpayer may appeal to the county board of equalization pursuant to § 67-5-1407, but must present a completed schedule as otherwise provided in this section;
    2. (2) If the deadline to appeal to the county board of equalization has expired, then the taxpayer may request the assessor to mitigate the forced assessment by reducing the forced assessment to the assessable value of the taxpayer's assessable property plus twenty-five percent (25%), so long as the failure to file the schedule or failure to timely appeal to the county board of equalization was not the result of gross negligence or willful disregard of the law. Mitigation of the forced assessment shall follow the procedure provided and be subject to the deadlines provided in § 67-5-509. Gross negligence shall be presumed if notice of the forced assessment, in a form approved by the state board of equalization, was sent certified mail, return receipt requested, to the taxpayer's last known address on file with the assessor.
  5. (e) Whether or not an assessor's error affected the original assessment, the assessor may correct a forced assessment using the procedure provided and subject to the deadlines provided in § 67-5-509, upon determining that the taxpayer was not in business as of the assessment date for the year at issue, and upon determining that the taxpayer did not own property assessable pursuant to this part as of the assessment date for the year at issue.
  6. (f) The taxpayer may amend a schedule timely filed with the assessor in the same manner provided for tangible personal property returns.
History (5)
  • Acts 1968, ch. 431, § 6
  • T.C.A., § 67-734
  • Acts 2008, ch. 1069, § 2
  • 2011, ch. 93, § 3
  • 2012, ch. 571, § 2.
§ 67-5-1207. Minimum assessment.
  1. In no event shall the assessment of the balance of the corporate property and capital stock of any company under § 67-5-1203(b), in any year up to and including the year 1980, be less than the assessment of the shares of stock of such company for the year 1967, under this part, or, in the case of a corporation which is the continuing corporation resulting from a merger or consolidation, less than the aggregate assessment of the shares of stock of all its predecessor corporations for the year 1967, under this part.
History (2)
  • Acts 1968, ch. 431, § 7
  • T.C.A., § 67-735.
§ 67-5-1208. Nonseverability.
  1. If any provision of this part and the 1968 amendments to [former] § 67-5-1101 [repealed] and § 67-2-104 or the application thereof to any person or circumstance is held invalid, such provision shall not be severable from this part and the 1968 amendments to [former] § 67-5-1101 [repealed] and § 67-2-104 and the whole of such provisions shall fail and be inoperative.
History (2)
  • Acts 1968, ch. 431, § 9
  • T.C.A., § 67-736.
§ 67-5-1209. Application of part to pure captive insurance company.
  1. The tax levied by this part shall not apply to the balance of the corporate property and capital stock, otherwise subject to valuation and assessment under §§ 67-5-1202(2) and 67-5-1203(b), of any pure captive insurance company, as defined in § 56-13-102 or of any entity operating in a similar manner to a pure captive insurance company such that fifty-one percent (51%) or more of its direct written premium revenue is from an affiliated company, as defined in § 56-13-102, or an associated company, as defined in § 56-13-102.
History (1)
  • Acts 2008, ch. 1106, § 59.
Part 13 Classification and Assessment — Utilities and Carriers
§ 67-5-1301. Assessment by comptroller of the treasury.
  1. (a) The comptroller of the treasury is authorized and directed to assess for taxation, for state, county, and municipal purposes, all of the properties of every description, tangible and intangible, within the state, owned by and all personal property used and/or leased by the following named persons hereinafter referred to as companies, namely:
    1. (1) Railroad companies;
    2. (2) Telephone, radio common carrier, cellular or wireless telecommunications and telecommunications tower companies;
      Backlinks (1)
    3. (3) Freight and private car companies, hereby defined as any company, other than a railroad company, which owns, uses, furnishes, leases, rents, or operates to, from, through, in or across this state or any part thereof, any kind of railroad car including, but not necessarily limited to, flat, tank, refrigerator or similar type car;
    4. (4) Streetcar companies;
    5. (5) Power companies, whether hydroelectric, steam, atomic, or other kinds for the transmission of power;
    6. (6) Express companies;
    7. (7) Pipeline companies;
    8. (8) Gas companies;
    9. (9) Electric light companies;
    10. (10) Water and/or sewerage companies;
    11. (11) Motor bus and/or truck companies, excluding towing companies, operating commercial motor vehicles exclusively authorized for hire holding United States department of transportation registrations issued by this state through the performance and registration information systems management (PRISM) or the federal motor carrier safety administration (FMCSA) and domiciled in this state and/or owning or leasing real or personal property, including those owner operators who operate under such motor bus and/or truck company's motor carrier authority, located in this state;
    12. (12) Commercial air carrier companies holding a certificate of convenience and necessity from the department of transportation, civil aeronautics board, federal aviation administration or any other federal or state regulatory agency excepting those companies whose operations are solely chartered operations;
    13. (13) Water transportation carrier companies which operate boats and barges over the waterways of this state for hire, which are registered with the United States army corps of engineers or any other federal or state agency and/or domiciled in this state and/or owning or leasing real or personal property located in this state; and
    14. (14) Modern market telecommunications providers.
  2. (b) The comptroller of the treasury shall assess all of such property annually as of the same date as other properties are assessed by law; provided, that this part shall not apply to corporations organized under the laws of this state whose principal business is the manufacture of products of the soil of this state and who for the transportation alone of such products furnish their own cars.
  3. (c) Provisions generally applicable to post-certification revision of local assessments shall also apply to public utility property, including, without limitation, back assessment or reassessment under chapter 1, part 10 of this title, correction of assessment errors under § 67-5-509, proration of assessments under § 67-5-603, and relief from forced assessments and amendment of taxpayer filed schedules under § 67-5-903. Provisions for confidentiality of taxpayer information under § 67-5-402 shall likewise be applicable to information provided by public utility taxpayers. For purposes of applying these provisions to public utility property, the comptroller of the treasury shall act as assessing authority, and the actions of the comptroller of the treasury shall be subject to review directly by the state board of equalization.
Backlinks (1)
History (14)
  • Acts 1973, ch. 226, § 11
  • 1974, ch. 467, § 4
  • T.C.A., § 67-901
  • Acts 1984, ch. 832, § 7
  • 1995, ch. 305, § 125
  • 1996, ch. 662, § 1
  • 1998, ch. 911, § 1
  • 2000, ch. 571, § 3
  • 2000, ch. 649, § 2
  • 2006, ch. 672, § 1
  • 2007, ch. 132, § 5
  • 2010, ch. 942, § 1
  • 2010, ch. 1036, § 1
  • 2017, ch. 490, § 4.
§ 67-5-1302. Basis of value and level of assessment.
  1. (a)
    1. (1) The comptroller of the treasury shall, except as otherwise provided in this part, assess all operating property, real and personal, tangible and intangible, at fifty-five percent (55%) of its value. Such operating property which is used predominantly to provide cellular telephone service, radio common carrier service, or long distance telephone service, or which is used by a modern market telecommunications provider, shall be assessed at the rate applicable to commercial and industrial property of the same type. Property of water transportation carrier companies, or the portion thereof, which is used for water carriage which was exempt from regulation by the interstate commerce commission under federal law in effect on November 1, 1995, shall be assessed at the rate applicable to commercial and industrial property of the same type.
    2. (2) The value shall be determined by the unit rule of appraisal where applicable.
    3. (3) “Unit” means all operating property, tangible and intangible, owned and used and/or leased by the company as determined by the comptroller of the treasury.
    4. (4) “Unit rule of appraisal” means the appraisal of the property as a whole without geographical or functional division of the whole.
  2. (b)
    1. (1) The assessments of public utility property or property of modern market telecommunications providers, as set by the comptroller of the treasury in accordance with subsection (a), shall be adjusted, where necessary, on the basis of appropriate ratios, as are determined by the board of equalization for purposes of equalizing the values of such property to the prevailing level of value of property in each jurisdiction; provided, that no equalization factor for purposes of this section may exceed a factor of one (1.000).
    2. (2) In filing the assessments made by the comptroller of the treasury with the board of equalization as required in § 67-5-1327, the comptroller of the treasury shall set out the assessments as determined by the comptroller of the treasury in accordance with the constitutional level of assessments.
    3. (3) The comptroller of the treasury shall also furnish the board of equalization with the equalized assessments as soon as determined.
    Backlinks (1)
  3. (c)
    1. (1) The comptroller of the treasury shall assess all nonoperating property at its proper level according to the use and class of property into which it may fall.
    2. (2) Nonoperating property shall be appraised annually and valued as other locally assessed property.
    3. (3) “Nonoperating property” means that property not used in the operations of the company as determined by the comptroller of the treasury.
  4. (d)
    1. (1) The comptroller of the treasury shall recognize specific valuation for construction-in-process (CIP) tangible personal property in a manner consistent with that provided for locally assessed property under § 67-5-903(g)(1).
    2. (2) The state board of equalization is directed to prepare and adopt rules and regulations for the administration and taxation of CIP pursuant to this section and § 67-5-903, and communicate such rules and regulations to taxpayers to ensure accurate and timely compliance by taxpayers. No back assessments of CIP, as the term is used in § 67-5-903(g), shall occur prior to January 1, 1994. If back assessments have occurred involving CIP, those assessments shall be voided and all taxes paid shall be refunded to those taxpayers who have an action or claim pending before an assessing authority or court on the CIP issue.
History (9)
  • Acts 1973, ch. 226, § 11
  • 1980, ch. 827, § 4
  • T.C.A., § 67-902
  • Acts 1989, ch. 312, § 4
  • 1993, ch. 323, §§ 2, 3
  • 1995, ch. 305, § 125
  • 1999, ch. 198, § 2
  • 2013, ch. 209, § 11
  • 2017, ch. 490, §§ 5, 6.
§ 67-5-1303. Schedules generally.
  1. (a) It is the duty of the owners of property mentioned in § 67-5-1301, within the state, to annually file with the comptroller of the treasury on or before April 1, under oath, schedules and statements giving the following information concerning all properties owned or leased by such owners:
    1. (1) The name of the company, its nature, whether a person, association, copartnership, corporation, or syndicate, and the state or country under whose laws it is organized;
    2. (2) The location of its principal place of business, the post office address of the president, general manager, or executive officer or officers;
    3. (3) The name and post office address of the chief officer or managing agent of the company in Tennessee;
    4. (4) The gross revenue and net operating income of its business as a whole and of its business done within the state, and operating expenses for the preceding fiscal year;
    5. (5) The total capital stock, number of shares issued or outstanding, the par face value thereof, and in case no shares of stock are issued, in what manner its capital is divided and holdings evidenced;
    6. (6) The market value and average market value of the shares of stock on January 1 next preceding, or if the stock or capital have no market value, then the actual value;
    7. (7) The real estate, buildings, machinery, fixtures, appliances, and personal property owned or leased by the company which is actually located within this state, the actual cost and value thereof and the counties and municipalities in which the same are located;
    8. (8) Real estate, together with the permanent improvements thereon, situated inside of the state and not directly used in the conduct of the business within the state, the purpose for which it is used, its value and the sum at which it is assessed for taxation in the locality where situated;
    9. (9) The bonded indebtedness and the market value thereof, if it has such, otherwise its actual value; and
    10. (10) The class and use of all nonoperating property and the value thereof, and the counties and municipalities in which same is located.
  2. (b) In addition to the foregoing information to be given by each owner of property assessable under this chapter, the statement shall contain information as set out in §§ 67-5-1304 — 67-5-1315 and other information as determined by the comptroller of the treasury.
Backlinks (13)
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-903
  • Acts 1995, ch. 305, § 125.
§ 67-5-1304. Railroad companies.
  1. (a)
    1. (1) In addition to the information required by § 67-5-1303, the schedules and statements submitted by railroad companies shall include the length in miles of their entire roadbeds, switches and sidetracks, and the value of the whole, showing the number of miles and value thereof within the state, and within each county and each incorporated town thereof, the number of cars, their classes and value, the number of engines and their value, the location and description and value of all depot buildings, warehouses, and other real estate and where located, and all real and personal property belonging or leased to the company not above enumerated and its value.
    2. (2) Statements shall also contain information showing the names and places of business of all private car line companies which are operating cars or having cars hauled under lease or contract, over its tracks in this state, the nature and substance of the contract of the railroad companies with each of the private car line companies and, in each instance, the compensation annually received or paid under contract with such private car companies, the number of cars of such companies used during the calendar year, and the number of miles such cars made over its system during the calendar year, both in and outside of the state.
  2. (b)
    1. (1) In assessing the properties of railroad companies, the comptroller of the treasury shall require the company to itemize all of the properties within this state, tangible and intangible, distributable and localized, and set out the value of each item, including, but not limited to, the following:
      1. (A) Length, location, description, and value of main line track;
      2. (B) The number and description of locomotives and their value;
      3. (C) The number of cars, their classes and value, and all other rolling stock;
      4. (D) Description and value of franchises, intangible property, and personal property within the state;
      5. (E) Description, location, quality, and value of all land not used for roadbed; and
      6. (F) Description, location, and value of all depot buildings, warehouses, and other structures on real estate.
    2. (2) Nothing contained in this subsection (b) shall be construed as changing or affecting the classification of distributable and localized property as otherwise defined in this code.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., §§ 67-904, 67-929
  • Acts 1995, ch. 305, § 125.
§ 67-5-1305. Freight or private car companies.
  1. (a) In addition to the information required by § 67-5-1303, the schedules and statements submitted by freight or private car companies shall include:
    1. (1) The total length of main lines of all the railroads over which the cars are run;
    2. (2) The total length of so much of the main lines of the railroad over which the same are run as is outside of this state;
    3. (3) The length of lines of the railroad companies over which the cars are run within each of the counties and municipalities within the state;
    4. (4) The number and class and value thereof;
    5. (5) The mileage of all cars during the preceding year; and
    6. (6) Such other information as may be required by the comptroller of the treasury.
  2. (b) This part shall not apply to corporations, organized under the laws of this state whose principal business is the manufacture of products of the soil of this state and who for the transportation alone of such products furnish their own cars.
History (4)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-905
  • Acts 1984, ch. 832, § 7
  • 1995, ch. 305, § 125.
§ 67-5-1306. Express companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by express companies shall include:
    1. (1) The total length of lines or routes over which they transport merchandise, freight, or express;
    2. (2) The total length of such lines or routes as are outside of this state;
    3. (3) The length of such lines or routes within each of the counties or incorporated towns in this state;
    4. (4) The names of the railroad companies and mileage of each over which such express is transported;
    5. (5) The gross receipts, including all sums earned and charged for business done within the state, in connection with other companies; and
    6. (6) The amount actually paid by such express companies within the year mentioned to the railroad companies of the state for the transportation of its freight and express, within and without the state, showing the amount paid to each railroad.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-906.
§ 67-5-1307. Streetcar and interurban companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by streetcar and interurban railroad companies shall include the length in miles of the entire roadbeds, switches, and sidetracks, number of miles in each county and each incorporated town, the value of the whole, number of cars, their classes and value, the location and description and value of all car sheds, transfer stations, power houses, and other real estate, showing the county or incorporated town within which such real estate or other property is located, together with its value.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-907.
§ 67-5-1308. Motor bus and truck companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by motor bus and/or truck companies domiciled in this state and/or owning or leasing real or personal property, including those owner operators who operate under such motor bus and/or truck company's motor carrier authority, located in this state, shall include:
    1. (1) The number of vehicles, their class and/or kind, the cost and value of each vehicle owned and/or operated by, including those owner operators who operate under such motor bus and/or truck company's motor carrier authority, any such motor carrier;
    2. (2) The total number of vehicle miles operated by any such motor carrier, together with the total number of vehicle miles and route miles operated within this state during the prior calendar year; and
    3. (3) The location and description of all buildings, land, materials and supplies, tools and equipment, furniture, motor vehicles operated exclusively within any one (1) county or incorporated municipality, and other personal property, showing the cost and value of all such property, separately set forth to show same within and outside this state.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-908
  • Acts 2010, ch. 942, §§ 2, 3.
§ 67-5-1309. Pipeline companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by pipeline companies, which means companies owning a pipeline or pipelines, whether such pipelines be used for the transmission of oil, gas, or whatever, shall include the length, size, and value of lines, the number and capacity of tanks, showing the county and incorporated towns within which the same are located; and the location, value, and description of all other property, real and personal, in this state.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-909.
§ 67-5-1310. Telephone, radio common carrier, telephone cooperative, and cellular or wireless telecommunication and telecommunications tower companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by telephone, radio common carrier, telephone cooperative, cellular or wireless telecommunication and telecommunication tower companies shall include:
    1. (1) The number of single conductor miles of wire, aerial cable, underground and buried cable, other cable in the company's entire system, and the number of single conductor miles of the same within this state and in each county and incorporated town;
    2. (2) The total number of stations in the company's entire system and the number in this state;
    3. (3) The total number of poles in the company's entire system, and the number in this state;
    4. (4) The gross investment in each of the above types of property in the system and the gross investment in each in this state; and
    5. (5) The location, description and value of all other property, real and personal, in this state.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-910
  • Acts 2000, ch. 649, § 4.
§ 67-5-1311. Gas, water, and sewerage companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by gas, water, and sewerage companies shall include all its property, real and personal, setting forth therein the length in miles of the entire system of mains, conduits, number of services, governors, meters, and transformers in each incorporated town and county, together with the value of the whole, the capital stock, gross receipts from business in this state, during the preceding fiscal year, and the gross receipts from all sources, and the location, value, and description of all other property, real and personal, in this state.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-911.
§ 67-5-1312. Power companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by power companies shall include all its property, real and personal, setting forth also the length in miles of the entire lines of wires of its entire property; and showing how many miles there are in this state, and in each incorporated town and county, together with the value of the whole, the location, description of all towers, and all other property, real and personal, in this state.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-912.
§ 67-5-1313. Electric light companies and electric cooperatives.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by electric light companies and electric cooperatives, not municipally owned, shall include:
    1. (1) The number of miles of poles and wires of its entire system, the nature of its wire system and the number of miles inside and outside the corporate limits of the city or town in which its property is located;
    2. (2) The total number of transformers owned by the company, their location and their value;
    3. (3) The description and location of all of its property, real and personal; and
    4. (4) The gross income of the company from its operation and from all other sources and its operating expenses, which operating expenses are to be set out in detail.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-913.
§ 67-5-1314. Commercial air carrier companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by commercial air carrier companies which are assessed by the comptroller of the treasury shall include:
    1. (1) The number, type, kind, and cost of all aircraft owned and/or used by the company;
    2. (2) All machinery, tools, equipment, and all real and personal property owned and/or used by the company; and
    3. (3) The gross revenue, passengers, takeoffs, landings, franchised routes, and ground hours in the system and the state.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-914
  • Acts 1995, ch. 305, § 125.
§ 67-5-1315. Water transportation carrier companies.
  1. In addition to the information required by § 67-5-1303, the schedules and statements submitted by water transportation carrier companies which are assessed by the comptroller of the treasury shall include:
    1. (1) The number, type, kind, and cost of all barges, tugs and other equipment used by the company;
    2. (2) The gross revenue, tons originated and terminated, and tons hauled in the system and the state; and
    3. (3) The location, cost and value, and the description of all property, real and personal, operating within, from, or through this state.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-915
  • Acts 1995, ch. 305, § 125.
§ 67-5-1316. Filing of return.
  1. Every taxpayer liable for the assessment imposed by this part shall file with the comptroller of the treasury on such form as the comptroller of the treasury may prescribe an accurate and complete return, signed by the taxpayer, or the taxpayer's president or other company official under penalty of perjury. The comptroller of the treasury shall have the authority to require additional information to be filed. The comptroller of the treasury, in the comptroller's discretion, may establish a program which will allow for the required information to be filed electronically.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-916
  • Acts 2004, ch. 656, § 4.
§ 67-5-1317. Failure to file schedules.
  1. The owner of any property refusing or failing to file any schedule or statement required by this part shall be deemed to have waived the mode and manner of ascertaining the value of such property, and of the distribution or allocation by the comptroller of the treasury of such valuation or assessment to the various counties and municipalities of this state for the purposes of county and municipal taxation, and shall not be permitted to be heard in opposition to the valuation fixed upon such property by the comptroller of the treasury, nor in opposition to the distribution or allocation of same by the comptroller of the treasury to the various counties and municipalities for the purposes aforementioned; and may, at the discretion of the comptroller of the treasury, in addition, be liable to a penalty of one hundred dollars ($100) for each and every day which such owner is delinquent in filing such statement or schedule.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-917
  • Acts 1995, ch. 305, § 125.
§ 67-5-1318. Collection of penalty.
  1. It is the duty of the attorney general and reporter, upon the request of the comptroller of the treasury, to sue for and collect the penalty provided for in § 67-5-1317 before any court of competent jurisdiction in the same manner as any other debt, penalty, or forfeiture is now collected by law.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-918
  • Acts 1995, ch. 305, § 125.
§ 67-5-1319. Additional information required by comptroller of the treasury — Access to records.
  1. (a) The comptroller of the treasury shall require, in addition to the schedules and statements above referred to, such additional information and take such additional evidence as to the value of any property to be assessed by the comptroller of the treasury as may be deemed proper. The additional information and evidence as it pertains to the assessment of personal property shall be confidential pursuant to § 67-5-402.
  2. (b) Such additional evidence shall be reduced to writing, and the opportunity shall be afforded, if desired, to the owner to submit additional evidence or counterevidence to that required by the comptroller of the treasury. The records of the comptroller of the treasury shall at all times be open to inspection of the owner or owners of any property assessable under this part.
History (4)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-919
  • Acts 1995, ch. 305, § 125
  • 2007, ch. 132, § 6.
§ 67-5-1320. Power of comptroller of the treasury to obtain evidence.
  1. To ascertain any of the foregoing facts, the comptroller of the treasury is hereby vested with the power to summon any person, call for any books, administer oaths, examine any such person or books touching any matters deemed necessary to enable comptroller of the treasury to arrive at the correct value of such property, and may issue summons to any county to be executed by the sheriff of such county.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-920
  • Acts 1995, ch. 305, § 125.
§ 67-5-1321. False testimony — Disobedience of summons.
  1. (a) Any person called on to testify commits perjury if that person testifies falsely.
  2. (b) Any person failing to attend when summoned commits a Class C misdemeanor.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-921
  • Acts 1989, ch. 591, § 113.
§ 67-5-1322. Determination of value and allocation to state.
  1. (a) Upon examination of every such schedule and statement and all other evidence taken by it, the comptroller of the treasury shall proceed to ascertain and determine the value of such property within the state for taxation in accordance with the unit rule of appraisal where applicable, as determined by the comptroller of the treasury, taking into consideration the following factors where appropriate: the capital stock, corporate property, franchises, income, and the market value of the shares of stock and bonded indebtedness.
  2. (b) The comptroller of the treasury may use any other evidence as is afforded by the statements and schedules or other evidence taken to enable the comptroller of the treasury to determine the value of the properties of such persons.
  3. (c) In applying the unit rule of appraisal, the comptroller of the treasury shall allocate for taxation to this state its share of the unit or system value, taking into consideration the following factors where appropriate:
    1. (1) The ratio of route and/or over-the-road miles traveled in this state to the route and/or over-the-road miles traveled in the system;
    2. (2) The ratio of original cost of the property in this state to the original cost of the property in the system;
    3. (3) The ratio of scheduled ground hours, gross revenue, and passenger miles in this state to the scheduled ground hours, gross revenue and passenger miles in the system; and
    4. (4) The ratio of gross revenue, all track miles, ton miles, and tons originated and terminated in this state to the gross revenue, all track miles, ton miles, and tons originated and terminated in the system.
  4. (d) The comptroller of the treasury may also consider any other factors that will help determine the state's share of the unit or system value.
Backlinks (1)
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-922
  • Acts 1995, ch. 305, § 125.
§ 67-5-1323. Distribution and apportionment to county, municipality, and taxing district.
  1. Having allocated to this state its share of the unit or system value in accordance with § 67-5-1322, the comptroller of the treasury shall then determine the assessment and the portion of the property which is distributable and the portion that is localized in accordance with § 67-5-1325.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-923
  • Acts 1995, ch. 305, § 125.
§ 67-5-1324. Situs of intangibles apportioned to state.
  1. The proportionate share of the value of the intangible property of such companies as do business in this and other states, growing out of the use of their tangible property in this state under their franchises, privileges, and contracts, shall have its situs in this state and in the several counties and municipalities thereof in which they exercise their rights; provided, that property of any such owner located outside of the state which is not directly used in the business to which the property in the state is devoted shall not enter into the value of the property within the state to be assessed.
History (2)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-924.
§ 67-5-1325. Distributable and localized property.
  1. (a) The franchises, intangible property, and personal property, within the state, but having no actual situs therein, of each company to be assessed under this part, and, in addition thereto:
    1. (1) The roadbed and rolling stock of railroad companies;
    2. (2) Poles and lines of telephone, radio common carrier, telephone cooperative, and telegraph companies;
    3. (3) Rolling stock and movable property of express, street car, freight, and private car companies;
    4. (4) Motor vehicles, buses, trucks, tractors, trailers and movable property of motor bus and/or truck companies;
    5. (5) The pipeline or lines of pipeline companies;
    6. (6) The aircraft of commercial certificated air carrier companies assessed by the comptroller of the treasury; and
    7. (7) The barges, boats, and tugs of water transportation carrier companies assessed by the comptroller of the treasury;
    8. shall be known as distributable property.
  2. (b)
    1. (1) Distributable property shall be apportioned to the counties, municipalities, and other taxing districts by the comptroller of the treasury after having considered the following factors where appropriate:
      1. (A) The ratio of route and/or over-the-road miles traveled in the taxing district to the route and/or over-the-road miles traveled in the state;
      2. (B) The ratio of original cost of the property in the taxing district to the original cost of the property in the state;
      3. (C) The ratio of main line miles of track in the taxing district to the main line miles of track in the state;
      4. (D) The ratio of traffic density in the taxing district to the traffic density in the state; and
      5. (E) The ratio of ground hours and gross revenue in the taxing district to the ground hours and gross revenue in the state.
    2. (2) The comptroller of the treasury may also consider any other factors that will help determine the apportionment of the distributable property to the counties, municipalities, and taxing districts.
  3. (c)
    1. (1) Real, personal, and other property, operating and nonoperating, such as depots, buildings, and terminals, having an actual situs, shall be known as localized property of such companies, and shall be apportioned to the counties, municipalities, and taxing districts where located.
    2. (2) The apportionment shall be based on the value of the property in the taxing district as determined by the comptroller of the treasury.
  4. (d) Subsections (a)-(c) shall not apply to gas, water, sewerage, power transmission, electric cooperative, and electric light companies, but, in such cases, all the property of such companies shall be deemed localized property, and shall be apportioned to the taxing district where located.
  5. (e)
    1. (1) The main line miles of any railroad property shall include all side tracks, switches, bridges, trestles, ties, rails, and super-structures of every kind.
    2. (2) The line of any telegraph and telephone company shall include all wires, cables, poles, and instruments.
Backlinks (1)
History (4)
  • Acts 1973, ch. 226, § 11
  • T.C.A., §§ 67-925 — 67-928
  • Acts 1984, ch. 832, § 7
  • 1995, ch. 305, § 125.
§ 67-5-1326. Preservation of records.
  1. It is the duty of the comptroller of the treasury to preserve and maintain the records used by the comptroller of the treasury in these assessments for a period of not less than seven (7) years. These records shall be public records, subject to inspection by the taxpayer under reasonable regulations; provided, that information required to be kept confidential pursuant to § 67-5-402 shall not be a public record.
History (5)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-930
  • Acts 1995, ch. 305, § 125
  • 2000, ch. 571, § 1
  • 2007, ch. 132, § 7.
§ 67-5-1327. Date of completion of assessments — Hearing of exceptions — Filing with state board.
  1. (a) On or before the first Monday in August, assessments shall be completed and the comptroller of the treasury shall send a notice of assessment to each company assessable under this part.
  2. (b) Within ten (10) days from the first Monday in August, any owner, or user, the state or any county, municipality, or incorporated town may appear and file exceptions to such assessment, together with such evidence as the owner, user, state, county, municipality or incorporated town may desire to submit as to the value of the property assessed, and at the expiration of the ten (10) days, the comptroller of the treasury shall convene an informal hearing and examine such additional evidence and exceptions as may have been filed, and act thereon, either changing or affirming its valuation. All persons or entities authorized to file an exception under this section but failing to file an exception within the time permitted shall be deemed to have waived any objection to the assessments.
  3. (c) On or before the first Monday in September, the comptroller of the treasury shall file with the board of equalization the assessments made by the comptroller, together with such records as may be deemed necessary. The comptroller of the treasury shall send notice to any person or entity filing an exception to the action taken on the exception, and persons or entities affected by the comptroller of the treasury's action on the exceptions may file further exceptions with the state board of equalization, for review pursuant to § 67-5-1328. All persons or entities authorized to file an exception under this section but failing to do so on or before twenty (20) days from the first Monday in September shall be deemed to have waived any objection they may otherwise have raised with regard to the assessments.
Backlinks (1)
History (5)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-931
  • Acts 1995, ch. 305, § 125
  • 1996, ch. 662, § 2
  • 1997, ch. 160, §§ 2-4.
§ 67-5-1328. Review of assessments by state board.
  1. (a)
    1. (1) The state board of equalization shall proceed to examine such assessments as made by the comptroller of the treasury, and is authorized to increase or diminish the valuation placed upon any property valued by the comptroller of the treasury, and is further authorized to require of the comptroller of the treasury any additional evidence touching one (1) or more of the properties assessed, and shall consider such additional evidence so furnished in fixing the correct value of any property so assessed, and the assessments shall not be deemed complete until corrected and approved by the board; the board is authorized to call the comptroller of the treasury at any time to perform the duties imposed upon it; provided, that if the board so desires, it shall have the power, without referring any assessment to the comptroller of the treasury, to employ experts, accountants, and to call witnesses to testify upon any assessment certified to it by the comptroller of the treasury. The board shall have the same powers to compel attendance of witnesses, production of books, papers, and documentary evidence as is by this chapter given to the comptroller of the treasury.
    2. (2) The board has the right to call upon the federal highway administration for any valuations of property in the office of the administration and evidence in possession of such administration in support of such valuations.
  2. (b) All of the evidence thus acquired by the board shall be considered by it in addition to the evidence transmitted to it by the comptroller of the treasury in support of the assessment so fixed by the comptroller of the treasury.
  3. (c) Any expense incurred by the board in calling for the additional proof as to the value of any property certified to it by the comptroller of the treasury shall be by the board certified to the commissioner of finance and administration and paid by the commissioner out of any moneys in the state treasury not otherwise appropriated.
Backlinks (1)
History (4)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-932
  • Acts 1995, ch. 305, § 125
  • 2000, ch. 571, § 4.
§ 67-5-1329. Certification of valuation to comptroller of the treasury.
  1. (a) On or before the third Monday in October, the state board of equalization shall certify to the comptroller of the treasury the valuation fixed by it upon each property assessed under this part. The action of the board in fixing the valuation upon such property shall be conclusive and final, and the valuation so fixed shall be assessed against such property and the taxes due thereunder be paid. If the board fails to certify assessments to the comptroller of the treasury on or before the third Monday in October, the validity of the certification thus delayed shall be unaffected, but the taxpayer shall be afforded a minimum of thirty (30) days from the date the comptroller of the treasury distributes the assessments to local collecting officials, in which to pay taxes without delinquency penalty and interest.
  2. (b) If any railroad, public utility, or modern market telecommunications provider has been or is hereafter aggrieved at the assessment so fixed and certified by the board, such taxpayer shall be required to pay the taxes due and owing the state, counties, and municipalities, upon the full value of the assessment, under protest. Upon termination of any proceedings that may be instituted in any of the courts of this state or in any of the courts of the United States by such taxpayer to review such assessment, the state, counties and municipalities, and any school district, road district, or other taxing district to which such taxes have been paid, shall refund in cash and with interest, such part of the taxes so paid to it as may be adjudged to be excessive or illegal by any final decree or order entered in any such proceeding, or in default of such refund, such taxpayer is authorized to take credit for the amount of such illegal or excessive tax, with interest, against any tax thereafter becoming due from and payable by such taxpayer, to the state, or any county, municipality, road district, school district, or any other taxing district authorized by law to levy taxes.
  3. (c)
    1. (1) If the state board of equalization has not completed its review of the assessment certified by the comptroller of the treasury within the time provided herein due to exceptions filed by the property owner with the board, the property owner shall be required to pay at least the undisputed portion of the property taxes, based upon the assessment certified by the comptroller of the treasury to the board, tentatively equalized according to the county appraisal ratios approved by the board pursuant to §§ 67-5-1302(b) and 67-5-1509(a), pending final disposition of the exceptions by the board. The partial payment provided herein shall be made within thirty (30) days of written demand therefor by the affected tax jurisdiction, and the board may dismiss the exceptions of any property owner who fails or refuses to make the payment as provided. The property owner may, in addition, pay the disputed portion of such taxes if the taxing authority to whom such taxes will be due agrees to accept the payment. Upon final disposition of the exceptions and certification of the final assessment to the comptroller of the treasury by the board, any overpayment of taxes shall be refunded to the property owner with interest, and any remainder of taxes due but unpaid shall be payable and collectable as otherwise provided by law. Interest shall be due upon unpaid or overpaid taxes under appeal in the same manner provided in § 67-5-1512, and the statutory interest otherwise accruing on delinquent taxes under § 67-5-2010 shall not accrue until the delinquency date or thirty (30) days after the final assessment is certified by the board, whichever is later. At the option of the jurisdiction, refund of overpaid taxes with any interest due may be made by lump sum payment or by crediting such payment against future taxes until paid in full. Payments made by the property owner pursuant to this subsection (c) shall not be construed to prejudice the property owner's appeal or right to a refund of payments determined not to be due, nor shall such payments be considered a voluntary payment. For purposes of this section, authority to bill or make written demand for payment of taxes is vested in the tax collecting official of the jurisdiction, and authority to act otherwise on behalf of the jurisdiction in electing options provided herein is vested in the chief executive officer of the jurisdiction, unless the jurisdiction votes by a majority of its chief legislative body to designate some other official as the person electing options.
    2. (2) This subsection (c) applies to assessments for the 1990 and later tax years.
Backlinks (1)
History (7)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-933
  • Acts 1992, ch. 527, §§ 1, 2
  • 1995, ch. 305, § 125
  • 1998, ch. 606, § 1
  • 2017, ch. 299, § 3
  • 2017, ch. 490, § 7.
§ 67-5-1330. Special assessment on notice by state board.
  1. (a) If at any time it shall appear to the satisfaction of the state board of equalization that any company, whose property is assessable under this part, is inadequately assessed, or that its property has been omitted from taxation, it shall be its duty to notify the comptroller of the treasury thereof in writing, whereby the comptroller of the treasury shall make the proper assessment, and the assessment shall go to the board as upon appeal upon the records, as it is provided in cases of assessments in the first instance.
  2. (b) The board shall examine and act upon such record as soon as practicable and certify its final action to the comptroller of the treasury, the collection of the taxes so assessed to be then proceeded with according to the regular course.
History (4)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-934
  • Acts 1995, ch. 305, § 125
  • 1996, ch. 662, § 3.
§ 67-5-1331. Certification of valuation to local officials — Collection of tax.
  1. As soon as the comptroller of the treasury has received the valuation from the board of equalization, the comptroller of the treasury shall certify to the trustee and county assessor of property of each county in which any of such property lies, the amount to be taxed in such counties, respectively, for county purposes; and likewise to the city recorder and/or city official whose responsibility it is to collect the tax of any incorporated city or town the amount to be taxed by such city or town.
History (4)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-935
  • Acts 1995, ch. 305, § 125
  • 2019, ch. 118, § 2.
§ 67-5-1332. Lien of taxes — Delinquency.
  1. The taxes so assessed in behalf of counties, towns, and cities shall be a first lien upon the property from January 1 of the year for which the taxes are assessed, and they shall become due and delinquent as all other ad valorem taxes.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-936
  • Acts 2019, ch. 118, § 3.
§ 67-5-1333. Collection of county and city taxes.
  1. The taxes due to any county or city shall be collected as any other county or city taxes may be collected by law and at the rate fixed by such county or city.
History (3)
  • Acts 1973, ch. 226, § 11
  • T.C.A., § 67-938
  • T.C.A., § 67-5-1334.
Part 14 Assessment Review — County Boards of Equalization
§ 67-5-1401. Failure of taxpayer to protest assessment before board — Effect.
  1. If the taxpayer fails, neglects or refuses to appear before the county board of equalization prior to its final adjournment, the assessment as determined by the assessor shall be conclusive against the taxpayer, and such taxpayer shall be required to pay the taxes on such amount; provided, that nothing herein shall be taken as conclusive against the state, county or municipality.
Backlinks (1)
History (2)
  • Acts 1973, ch. 226, § 6
  • T.C.A., § 67-631.
§ 67-5-1402. Duties of board.
  1. The county board of equalization has and shall perform the following duties:
    1. (1) Carefully examine, compare and equalize the county assessments;
    2. (2) Assure that all taxable properties are included on the assessment lists;
    3. (3) Eliminate from the assessment lists such property as is lawfully exempt from taxation; provided, that if an application for exemption of such property is required under part 2 of this chapter, the property shall not be eliminated from the assessment lists unless such exemption is approved by an authorized designee of the state board of equalization;
    4. (4) Hear complaints of taxpayers who feel aggrieved on account of excessive assessments of their property;
    5. (5) Decrease the assessments of such properties as the board determines have been excessively assessed;
    6. (6) Increase the assessments of such properties as the board determines are underassessed; provided, that owners of such properties are duly notified and given an opportunity to be heard;
    7. (7) Correct such errors arising from clerical mistakes or otherwise that may come or be brought to the attention of the board; and
    8. (8) Take whatever steps are necessary to assure that the assessments of all properties within its jurisdiction conform to laws of the state and rules and regulations of the state board of equalization.
History (3)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-801
  • Acts 1994, ch. 541, § 1.
§ 67-5-1403. Assessor — Assistance and recommendations to board.
  1. (a) It is the duty of the assessor of property or deputy assessor to meet with the county board of equalization on the first day of its session and to sit with such board in an advisory capacity during each and every day of the session of such board, and to render to such county board assistance in the performance of its official duties in equalizing assessments.
  2. (b) In addition to other assistance, the assessor of property or deputy assessor may recommend to the board that changes of assessment or classification be made from those certified in the report of assessments required under § 67-5-304, but such recommended changes shall not be so numerous as to amount to the general reappraisal of a class or type of property.
History (3)
  • Acts 1973, ch. 226, § 10
  • 1983, ch. 377, § 2
  • T.C.A., § 67-802.
§ 67-5-1404. Power of board to obtain evidence.
  1. (a) The board may examine any person as a witness, and hear any proof that may be offered by any taxpayer in or about any question touching the classification, value, or assessment of any property described in the assessment roll.
  2. (b) The board has the power and authority to send for persons and papers, to examine and enforce the attendance of witnesses, and obtain any evidence or information that may be deemed material in the performance of its duties.
  3. (c) Each member of the board has the power to administer an oath, and any person who willfully or corruptly swears falsely to any material fact before the board commits perjury and is indictable for such offense.
History (2)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-803.
§ 67-5-1405. Examination of assessors by board.
  1. It is the duty of the board to bring before it the assessor of property or deputy assessor of the county, and propound to the assessor or deputy assessor such questions as are, in the opinion of the board, proper to ascertain the manner in which the classification, value or assessment of the property was determined by the assessor or deputy assessor, and such other questions as will aid the board in the equalization of assessments.
History (2)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-804.
§ 67-5-1406. Hearing officers.
  1. (a) The county board of equalization may appoint one (1) or more hearing officers, with approval by simple majority vote of the county commission on a resolution, to conduct preliminary hearings and to make investigations regarding complaints before the board.
  2. (b) The hearing officers shall assist the county board and prepare proposed findings of fact and conclusions and recommend the same to the county board.
  3. (c) The county board may adopt any recommendation of such hearing officers as its final decision; provided, that any property owner who desires to be heard directly by the county board is given the opportunity to be heard by the board.
History (4)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-805
  • Acts 2014, ch. 691, § 2
  • 2015, ch. 471, § 2.
§ 67-5-1407. Complaints to county board of equalization.
  1. (a)
    1. (1) Any owner of property or taxpayer liable for taxation in the state has the right by personal appearance, or by the personal appearance of the duly authorized agent of the owner of the property, which agency shall be evidenced by a written authorization executed by the owner or taxpayer, or by representation by an attorney, to make complaint before the county board of equalization on one (1) or more of the following grounds:
      1. (A) Property under appeal or protest by the taxpayer has been erroneously classified or subclassified for purposes of taxation;
      2. (B) Property under appeal or protest by the taxpayer has been assessed on the basis of an appraised value that is more than the basis of value provided for in part 6 of this chapter; and
      3. (C) Property other than property under appeal or protest by the taxpayer has been assessed on the basis of appraised values which are less than the basis of value provided for in part 6 of this chapter.
    2. (2) Upon such complaint being made before the county board, it may hear any evidence or witness offered by the complainant, or may take such steps as it may deem material to the investigation of the complaint.
  2. (b)
    1. (1) Any local governmental entity has the right to make a complaint before the assessor of property and county board of equalization on the value of property within the local governmental entity on one (1) or more of the following grounds:
      1. (A) The property has been erroneously classified or subclassified for purposes of taxation;
      2. (B) The property has not been included on the assessment lists; and
      3. (C) The property has been assessed on the basis of appraised values which are less than the basis of value provided for in part 6 of this chapter.
    2. (2) Upon complaint by the local governmental entity, the county board of equalization shall give the property owner at least five (5) days' notice of a hearing to be held before the board. The notice shall be sent by United States mail to the last known address of the property owner.
  3. (c) The county board may hear any evidence or witnesses offered by the local governmental entity or owner or may take such steps as it may deem material to the investigation of the complaint.
  4. (d) When the assessor of property or the county board of equalization requests from the owner, or the owner's duly authorized agent, specific data regarding the property that is not readily available through public records and is necessary to make an accurate appraisal of the property in question, and such owner or duly authorized agent fails, refuses or neglects to supply this data in a timely manner for the assessor of property or county board of equalization to study and consider, the owner shall thereby forfeit the owner's right to introduce information concerning the property requested by the assessor of property or any local board of equalization, but denied by the lawful owner or the owner's duly authorized agent on appeal to the state board of equalization.
  5. (e)
    1. (1) Notwithstanding this section to the contrary, in any county having a population of not less than seven hundred seventy thousand (770,000) nor more than seven hundred eighty thousand (780,000), according to the 1980 federal census or any subsequent federal census, any taxpayer, or owner of property subject to taxation in the state, has the right to make complaint before the county board of equalization on one (1) or more of the following grounds:
      1. (A) The property under complaint has been erroneously classified or subclassified or erroneously assessed for purposes of taxation other than as provided in § 67-5-212;
      2. (B) The property under complaint has been assessed on the basis of an appraised value that is more than the basis of value provided for in part 6 of this chapter; and
      3. (C) Property other than the property under complaint has been assessed on the basis of appraised values that are less than the basis of value provided for in part 6 of this chapter.
    2. (2) Any taxpayer, or owner, has the right to appear in person before any county board of equalization, or by an agent having written authorization, by an attorney, by an agent who is registered with the state board of equalization, or by any member of the taxpayer's or owner's immediate family. Any county board may permit written appearance and in that event, any subsequent appeal to the state board of equalization shall be limited to those grounds made by written appearance before the county board.
    3. (3) In the event there may be duplicate appeals filed on any parcel or should the board have reason to believe that representation is not duly authorized, the board may require from any agent, or other representative, written authorization signed by the taxpayer.
    4. (4) No agent or other representative shall file an appeal before the county or state boards of equalization without first obtaining written authorization from the taxpayer.
  6. (f) Wherever in this section personal appearance at a hearing is required, in the discretion of the board all or part of the hearing may be conducted by telephone, television, software or other electronic means, if each participant in the hearing has an opportunity to participate in, to hear, and, if technically feasible, to see the entire proceedings while taking place.
Backlinks (7)
History (8)
  • Acts 1973, ch. 226, § 10
  • 1974, ch. 644, § 2
  • 1975, ch. 171, § 13
  • T.C.A., § 67-806
  • Acts 1986, ch. 585, §§ 1, 2
  • 1989, ch. 419, § 1
  • 1998, ch. 1066, §§ 1-3, 7
  • 2013, ch. 209, § 12.
§ 67-5-1408. Disposition of complaints.
  1. (a) Upon its consideration of any complaint or other information available, the county board of equalization may make such changes, by way of increase or decrease in assessments, appraised values, or changes in classifications or subclassifications, as in its judgment are proper, just and equitable; provided, that the property owner or owners shall be duly notified by the board of any increase of assessment or change in classification and given an opportunity to be heard.
  2. (b) Such notice shall be given at least five (5) days before the adjournment of the board, and such notice shall include the tax year for which any increase of assessment or change in classification is made.
  3. (c) Notice by United States mail to the last known address shall be deemed sufficient within the meaning of this section.
History (3)
  • Acts 1973, ch. 226, § 10
  • 1983, ch. 377, § 1
  • T.C.A., § 67-807(a).
§ 67-5-1409. Time for completion of board action.
  1. (a) Any action by the county board of equalization during its regular session, except upon consideration of a complaint as provided in § 67-5-1407, shall be completed and the notice of decision and appeal procedure sent no later than five (5) days prior to the date taxes are due, which in the case of counties, taxes are due on the first Monday of October of a tax year.
  2. (b) This shall not apply to special sessions or extraordinary actions under § 67-1-404, § 67-5-508, [former] § 67-5-1503 [repealed], or other applicable law; nor shall it apply for the year in which a county completes reappraisal pursuant to part 16 of this chapter.
  3. (c) In any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, when meeting in special session, except as otherwise determined by a two-thirds (⅔) vote of the county legislative body, the board may act only on an assessment for which an active and timely filed appeal is pending.
History (4)
  • Acts 1983, ch. 377, § 1
  • T.C.A., § 67-807(b)
  • Acts 1987, ch. 346, § 16
  • 2003, ch. 362, § 1.
§ 67-5-1410. Certification of assessments.
  1. Upon completion of its duties, the county board of equalization shall have prepared a certificate signed by each member and filed in the office of the county clerk, viz.:
    1. We, the undersigned members of the board of equalization of County, do hereby certify that we have examined the assessments and classifications of taxable property within the county; we have heard and considered all appeals of such taxpayers as have duly made complaint to the county board of equalization; we have made only such changes in assessments and classifications as in our judgment are proper, just and equitable and are prescribed by law; and we have faithfully discharged all our duties without fear, favor, or affection to the best of our knowledge and ability in accordance with the laws of the state of Tennessee.
History (2)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-808.
§ 67-5-1411. Board's action final — Notice.
  1. (a) When the county board of equalization shall have determined the matters before it, such action shall be final except insofar as the same may be revised or changed by the state board of equalization.
  2. (b) The county board of equalization shall give notice of its final decision and the procedure of appeal to the state board of equalization to each property owner heard, and the notice shall include the following:
    1. (1) The taxpayer's right to electronically file an appeal to the state board of equalization, including a link to the online appeal form;
    2. (2) The current address of the state board of equalization as indicated on its website;
    3. (3) All relevant statutory deadlines; and
    4. (4) Any other information required by the state board of equalization.
History (3)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-809
  • Acts 2017, ch. 103, § 1.
§ 67-5-1412. Appeal of county or other local board action to state board authorized.
  1. (a)
    1. (1) Any taxpayer, or any owner of property subject to taxation in the state, who is aggrieved by any action taken by the county board of equalization or other local board of equalization has the right to a hearing and determination by the state board of equalization of any complaint made on any of the grounds provided in § 67-5-1407. At any conference or hearing pursuant to part 15 of this chapter, and in the event there may be duplicate appeals filed on any parcel or should the state board of equalization have reason to believe that representation is not duly authorized, the board may require from any agent, or other representative, written authorization signed by the taxpayer.
    2. (2) No agent or other representative shall file an appeal before the county or state boards of equalization without first obtaining written authorization from the taxpayer.
  2. (b)
    1. (1) The taxpayer or owner must first make complaint and appeal to the local board of equalization unless the taxpayer or owner has not been duly notified by the assessor of property of an increase in the taxpayer's or owner's assessment or change in classification as provided for in § 67-5-508.
    2. (2) Notwithstanding subdivision (b)(1) or any other law to the contrary, a taxpayer or owner may, with the written consent of the assessor, appeal the valuation of industrial and commercial real and tangible personal property to the local board of equalization, or directly to the state board of equalization. A direct appeal to the state board of equalization must be filed before August 1 of the tax year. The taxpayer or owner shall request, in writing via certified mail, return receipt requested, such concurrence from the assessor within ten (10) days after the date the assessment notice for the property is sent, or by June 1 of the tax year, or such other date as may be prescribed by the assessor, but no later than the adjournment date for the regular annual session of the county board of equalization. The request shall state, at a minimum, the name in which the property is assessed, the parcel identification number, the value sought, the basis for the appeal and the name, address, telephone number and fax number of the person requesting the direct appeal. The assessor shall provide such concurrence at least ten (10) days before the adjournment of the county board. If the assessor does not concur with a direct appeal to the state board, and so states in writing at least ten (10) days before the adjournment of the county board of equalization, then the taxpayer or owner shall appeal first to the local board of equalization. If the assessor fails to act upon the taxpayer's or owner's request at least ten (10) days before the adjournment of the county board, then the state board of equalization shall accept the direct appeal of the taxpayer or owner. A taxpayer or owner filing a direct appeal shall attach a copy of the assessor's concurrence to the appeal form filed with the state board, or, if the assessor failed to act timely on a request for a direct appeal, a taxpayer or owner filing a direct appeal shall attach a copy of the written request for the concurrence and a statement that the assessor of property failed to provide a timely response to the request. All direct appeals to the state board under this subdivision (b)(2) shall be filed before August 1 of the tax year.
  3. (c) Complaints and appeals to the state board of equalization must be filed in such format as the board may require by rule, and the board may permit the use of electronic filing including electronic verification and signatures. The appellant has the right to withdraw any complaint and appeal at any time before a decision has been entered on the primary issue of the complaint and appeal.
  4. (d) The assessor of property or taxing jurisdiction also has the right to appeal from any action of the local board of equalization to the state board of equalization in the same manner as provided in subsections (a)-(c).
  5. (e) Appeals to the state board of equalization from action of a local board of equalization must be filed on or before August 1 of the tax year, or within forty-five (45) days of the date notice of the local board action was sent, whichever is later. If notice of an assessment or classification change pursuant to § 67-5-508 was sent to the taxpayer's last known address later than ten (10) days before the adjournment of the local board of equalization, the taxpayer may appeal directly to the state board at any time within forty-five (45) days after the notice was sent. If notice was not sent, the taxpayer may appeal directly to the state board at any time within forty-five (45) days after the tax billing date for the assessment. The taxpayer has the right to a hearing and determination to show reasonable cause for the taxpayer's failure to file an appeal as provided in this section and, upon demonstrating such reasonable cause, the board shall accept such appeal from the taxpayer up to March 1 of the year subsequent to the year in which the time for appeal to the state board began to run.
  6. (f) “Taxpayer” as used in this part or part 15 of this chapter, means the owner of the property under appeal or any lessee legally obligated to pay ad valorem taxes for which the property is liable. A lessee obligated to pay some but not all of the taxes for which the property is liable, may appeal the assessment only if the owner consents to the appeal in writing. A property manager, attorney, or other authorized agent may authorize an appeal if the taxpayer has authorized in writing the property manager, attorney, or other authorized agent to do so.
Backlinks (2)
History (19)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-810
  • Acts 1986, ch. 585, § 3
  • 1989, ch. 102, § 1
  • 1990, ch. 899, § 2
  • 1991, ch. 161, § 1
  • 1997, ch. 160, § 5
  • 1998, ch. 1066, §§ 4, 5
  • 2004, ch. 737, § 1
  • 2005, ch. 480, §§ 1-4
  • 2006, ch. 600, § 1
  • 2006, ch. 640, §§ 1, 2
  • 2007, ch. 51, § 1
  • 2007, ch. 98, § 1
  • 2007, ch. 111, § 1
  • 2007, ch. 132, § 4
  • 2007, ch. 133, § 1
  • 2011, ch. 32, § 1
  • 2020, ch. 521, §§ 1, 2.
§ 67-5-1414. Record of board's action preserved by assessor.
  1. (a) The individual property records maintained in the office of each assessor of property shall show all actions taken by the county board of equalization which change the classification, value or assessment of any parcel of property.
  2. (b) Further, upon the completion of the duties of the board, the records and papers of the board shall be turned over to the assessor of property for preservation for a period of at least ten (10) years.
History (2)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-812.
§ 67-5-1415. Proceedings by board against assessors.
  1. It is the duty of the members of the county board of equalization, when it is known to or reasonably suspected by any one (1) of them that any assessor of property or deputy assessor has knowingly or willfully classified, valued or assessed any property in violation of the requirements of law, to report the same to the district attorney general or proper officer of the state, whose duty it shall be, upon receiving such information, to institute proceedings against the assessor upon the assessor's bond to recover the penalty prescribed in § 67-5-306.
History (3)
  • Acts 1973, ch. 226, § 10
  • modified
  • T.C.A., § 67-813.
Part 15 Assessment Review — State Board of Equalization
§ 67-5-1501. Jurisdiction and duties — Filing of appeals.
  1. (a) The state board of equalization has jurisdiction over the valuation, classification and assessment of all properties in the state.
  2. (b) The board shall have and perform the following duties:
    1. (1) Receive, hear, consider and act upon complaints and appeals made to the board;
    2. (2) Hear and determine complaints and appeals made to the board concerning exemption of property from taxation;
    3. (3) Take whatever steps it deems are necessary to effect the equalization of assessments, in any taxing jurisdiction within the state in accordance with the laws of the state;
    4. (4) Carry out such other duties as are required by law; and
    5. (5) Provide assistance and information on request to members and committees of the general assembly relative to the taxation, classification and evaluation of property.
  3. (c) Appeals to the state board of equalization from initial determinations in exemption and tax relief cases must be filed within ninety (90) days from the date notice of the determination was sent. Appeals from initial decisions of administrative judges or hearing examiners for the state board of equalization must be filed within thirty (30) days from the date the initial decision is sent.
    Backlinks (1)
  4. (d) The board shall assess the cost of hearing or processing a taxpayer appeal in an amount not to exceed ten dollars ($10.00) per filing, pursuant to rules of the board. For purposes of this subsection (d), “filing” means one (1) submission that may include multiple parcels, including real and personal property, with a clear nexus to specific assessments or exemptions under appeal. The board shall not charge fees and costs on the appeal of the primary residence of the following persons:
    1. (1) Persons sixty-five (65) years of age or older, if the appraised value of the residence is one hundred fifty thousand dollars ($150,000) or less; and
    2. (2) Indigent persons who file a Uniform Civil Affidavit of Indigency with the board.
History (17)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 1
  • 1979, ch. 64, §§ 1, 2
  • 1980, ch. 467, § 1
  • 1983, ch. 237, § 1
  • T.C.A., § 67-831
  • Acts 1990, ch. 899, § 3
  • 1990, ch. 1075, § 1
  • 1992, ch. 1024, § 2
  • 1997, ch. 160, § 6
  • 2003, ch. 406, § 1
  • 2007, ch. 256, § 1
  • 2010, ch. 1074, § 2
  • 2011, ch. 415, § 2
  • 2013, ch. 209, § 13
  • 2016, ch. 938, § 1
  • 2019, ch. 63, § 4.
§ 67-5-1502. [Repealed]
History (13)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 1
  • 1979, ch. 64, §§ 1, 2
  • 1980, ch. 467, § 1
  • 1983, ch. 237, § 1
  • T.C.A., § 67-831
  • Acts 1986, ch. 749, § 19
  • 1995, ch. 305, § 126
  • 1997, ch. 160, § 7
  • 2007, ch. 482, § 1
  • 2016, ch. 938, § 2
  • 2019, ch. 63, § 5
  • repealed by Acts 2023, ch. 184, § 2, effective July 1, 2023.
§ 67-5-1504. Remand of complaints to county board.
  1. In the event the complaints filed with the state board of equalization from a county are sufficiently numerous to justify such action, it is the duty of the state board to reconvene the county board of equalization and remand the complaints to the county board, with directions that the county board reconvene on a certain date and hear and act upon the complaints and certify its action in each case to the state board of equalization.
History (4)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 3
  • T.C.A., § 67-833
  • Acts 2023, ch. 184, § 3.
§ 67-5-1505. Hearing examiners.
  1. (a) As used in this part, “hearing examiner” includes an administrative judge serving by appointment of the state board of equalization or an administrative judge serving on behalf of the board under appointment by the secretary of state.
  2. (b) The state board of equalization may appoint members of the staff of the division of property assessments or such other persons as it may employ, to serve in the capacity of hearing examiners to conduct preliminary hearings and to make investigations for the board regarding complaints and appeals from assessments and classifications, or regarding any other matter for which the board has responsibility by law.
  3. (c) The hearing examiners shall prepare proposed findings of fact and conclusions and recommend the same to the board.
  4. (d) Upon the evidence presented before the hearing examiner in a preliminary hearing or upon facts gained in the hearing examiner's investigation of any matter, the hearing examiner shall prepare proposed findings of fact and conclusions for the state board and shall notify each property owner who may be affected by the hearing examiner's recommendation.
  5. (e) Notwithstanding a contrary provision of law, and unless a party to the appeal objects in writing, the administrative judge or hearing examiner may render a proposed decision that is limited to words or figures, or both, reflecting conclusions as to the proper classification or valuation of the subject property.
  6. (f) The hearing examiner shall receive and consider all admissible evidence, as defined in § 4-5-313, presented in a hearing and shall conduct the hearing in an informal manner. All hearings conducted on behalf of, or before the state board of equalization, must be conducted in a manner that gives deference to the position of neither the taxpayer nor the assessor, but treats both parties in an objective manner. This subsection (f) does not affect the burden of proof in property tax appeals or other contested cases as otherwise provided by law.
History (9)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 4
  • T.C.A., § 67-834
  • Acts 1991, ch. 434, § 1
  • 1995, ch. 305, § 127
  • 1998, ch. 606, § 2
  • 2006, ch. 823, § 1
  • 2017, ch. 133, § 1
  • 2023, ch. 184, § 4.
§ 67-5-1506. Action on hearing examiner's report.
  1. (a) In the absence of an exception to the recommendation of the hearing examiner by either the property owner or the property owner's agent, or the county assessor of property or the taxing jurisdiction, the state board of equalization may adopt the recommendation of its hearing examiner as its final decision without the necessity of a hearing before the board.
  2. (b) If an exception to the recommendation of the hearing examiner is taken by either the property owner or the property owner's agent, or the county assessor of property or the taxing jurisdiction, or if the state board of equalization does not adopt the recommendation of the hearing examiner, the state board of equalization may determine to review all issues, to review some but not all issues, or not to exercise any review. If the state board of equalization does not exercise its discretion to review a matter, then the board shall issue a notice pursuant to § 67-5-1512(a)(3). The date of the notice or certificate commences the period for seeking judicial review pursuant to § 67-5-1511.
  3. (c) If the state board of equalization determines to exercise review, then a hearing may be scheduled before final action is taken. Unless the board shall otherwise direct, the review is confined to the record except that additional proof may be taken in cases involving alleged irregularities in procedure that are not shown in the record.
  4. (d) The state board of equalization may affirm the decision of the hearing examiner or remand the case for further proceedings. The state board of equalization may reverse or modify the decision if the rights of the petitioner have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:
    1. (1) In violation of constitutional or statutory provisions;
    2. (2) Made upon unlawful procedure;
    3. (3) Arbitrary and capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion; or
    4. (4) Unsupported by evidence that is both substantial and material in light of the entire record.
  5. (e) In determining the substantiality of evidence, the state board of equalization shall take into account whatever in the record fairly detracts from its weight, but shall not substitute its judgment for that of the hearing examiner as to the weight of evidence on questions of fact.
History (5)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 5
  • T.C.A., § 67-835
  • Acts 2017, ch. 133, § 2
  • 2023, ch. 184, § 5.
§ 67-5-1507. Evidence obtained by board members.
  1. The board may, at any time, send its members or such other person as it may designate to any portion of the state to obtain information and evidence deemed material to the duties of equalization, and to hear questions, and report to the board.
History (4)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 6
  • T.C.A., § 67-836
  • Acts 2023, ch. 184, § 6.
§ 67-5-1508. Information from property assessments division.
  1. The board may require the director of property assessments and any member of the director's staff to submit such facts and reports as may be deemed necessary to enable the board to equalize assessments of property of the various classes and in the different localities of the state, and otherwise prescribe their duties and powers.
History (4)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 7
  • T.C.A., § 67-837
  • 2023, ch. 184, § 7.
§ 67-5-1509. Equalization action by state board.
  1. (a) Upon its consideration of reports made to it, together with the evidence submitted with a report or other information available, the state board shall take whatever steps it deems are necessary to effect the assessment of property in accordance with the constitution and the laws of this state. The board shall by order or rule direct that commercial and industrial tangible personal property assessments be equalized using the appraisal ratios adopted by the board in each jurisdiction; provided, that an equalization factor for purposes of this section does not exceed a factor of one (1.000). The equalization described is available only to taxpayers who have timely filed the reporting schedule required by law.
    Backlinks (1)
  2. (b) Equalization may be made by the board by reducing or increasing the appraised values of properties within a taxing jurisdiction, or any part of the jurisdiction, in such manner as is determined by the state board of equalization will enable the board to justly and equitably equalize assessments in accordance with law.
  3. (c) If the state board of equalization deems it necessary to increase or decrease appraised values of properties of a taxing jurisdiction, or any part of the jurisdiction, in a manner that affects properties in general rather than individual properties, it is not necessary that the state board notify each individual property owner as provided in § 67-5-1510; provided, that the board shall cause to be published at least once, in a newspaper of general circulation within the taxing jurisdiction affected by the action of the board, a notice of the action of the state board.
Backlinks (1)
History (7)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 8
  • T.C.A., § 67-838
  • Acts 1990, ch. 1075, § 10
  • 2009, ch. 163, § 2
  • 2013, ch. 209, § 14
  • 2023, ch. 184, § 8.
§ 67-5-1510. Changes of individual classification or assessment by state board.
  1. (a) Whenever the state board, after a county or local board has acted, has reason to believe that an individual assessment of real property or personal property is inadequate, or the classification of such property is erroneous, it may cause ten (10) days' written notice to be served on the person to whom the property is assessed, commanding the person to appear before the board to show cause why the assessment should not be increased or the classification should not be changed.
  2. (b) The taxpayer may be heard either personally or by counsel and may introduce any competent evidence touching the question of adequacy of the assessment or change of the classification.
  3. (c) The board shall:
    1. (1)
      1. (A) Determine the amount, if any, the assessment must be increased; or
      2. (B) Determine the proper classification of the property; and
    2. (2) Reduce its judgment to writing and certify its findings to the proper county officials.
  4. (d) Actions pursuant to this section are commenced by issuance of the required notice on or before September 1 of the year following the year to which the notice relates.
Backlinks (1)
History (5)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 9
  • T.C.A., § 67-839
  • Acts 2015, ch. 215, § 1
  • 2023, ch. 184, § 9.
§ 67-5-1511. Finality of board action — Collection of taxes — Judicial review.
  1. (a) The action of the state board of equalization shall be final and conclusive as to all matters passed upon by the board, subject to judicial review, and taxes shall be collected upon the assessments determined and fixed by the board. Judicial review shall not be available as to exemptions requiring application to the state board of equalization under part 2 of this chapter, or as to the proper value, assessment or classification of property, unless the petitioner has first obtained a ruling on the merits from the board or an administrative judge sitting for the board concerning the exempt status, proper value, assessment or classification of the property.
  2. (b) Notwithstanding another law to the contrary, the judicial review provided in subsection (a) is a de novo appeal, with no presumption of correctness of the decisions of the lower tribunals in the case at hand, and must consist of a new hearing in the chancery court based upon the administrative record and any additional or supplemental evidence that either party wishes to adduce relevant to any issues. The petition for review may be filed in the chancery court of the county where the disputed assessment was made or in the chancery court of Davidson, Washington, Knox, Hamilton, Madison or Shelby County, whichever county is closest in mileage to the situs of such property. If the situs of the property is in Knox, Hamilton or Shelby County, then the petition for review may alternatively be filed in Davidson County at the election of the petitioner.
Backlinks (1)
History (7)
  • Acts 1973, ch. 226, § 10
  • T.C.A., § 67-840
  • Acts 1988, ch. 619, § 4
  • 1992, ch. 1024, § 7
  • 1998, ch. 940, § 1
  • 2008, ch. 680, § 1
  • 2023, ch. 184, § 10.
§ 67-5-1512. Certification of board action — Penalties and interest.
  1. (a)
    1. (1) Upon the hearing of an appeal and complaint, the state board of equalization having made its determination of the assessment of the property subject to the appeal and complaint, the board shall issue, upon request, an official certificate relative to the action of the state board.
    2. (2) The official certificate must show the description of the property and the assessment as determined by the state board of equalization.
    3. (3) The board shall provide written notice of its final actions on appeals and complaints to the parties and to others upon request. Written notice includes notification by electronic means, and the record of actions or notice may be preserved in digital or electronic format.
      Backlinks (1)
  2. (b)
    1. (1) Penalty and interest otherwise due on delinquent property taxes does not accrue while an appeal of the assessment is pending before the county or state boards of equalization if the taxpayer, before the delinquency date, pays the undisputed portion or pays the full tax due.
    2. (2) For purposes of this subsection (b), “undisputed portion” means the amount the taxpayer would owe based on the taxpayer's good faith claim for relief.
    3. (3) If the full tax due is paid, the city or county collecting official may decline to accept the disputed portion of tax.
    4. (4) Delinquency penalty and interest postponed under this subsection (b) begins to accrue thirty (30) days after issuance of the final assessment certificate of the state board of equalization and until the tax is paid.
    5. (5) On motion of the city or county to whom tax is owed, the state board of equalization shall dismiss the appeal of any taxpayer who fails to pay delinquent taxes that have accrued on property that is the subject of the appeal, or who fails to pay at least the undisputed tax related to a properly appealed assessment.
  3. (c) Any additional tax due following the appeal will accrue interest from the delinquency date at the composite prime rate published by the federal reserve board as of the delinquency date, minus two (2) points.
  4. (d)
    1. (1) Any tax found refundable following the appeal will accrue interest from the delinquency date at the composite prime rate published by the federal reserve board as of the delinquency date, minus two (2) points.
    2. (2) Sixty (60) days after issuance of the final assessment certificate of the state board of equalization, the interest rate on a deferred refund shall increase two (2) points until the refund is finally paid.
    3. (3) For purposes of this subsection (d), “deferred refund” means the amount owed to the taxpayer, excluding any penalties and interest.
Backlinks (4)
History (21)
  • Acts 1973, ch. 226, § 10
  • 1974, ch. 771, § 11
  • 1975, ch. 171, § 10
  • Acts 1980, ch. 533, §§ 1-5
  • T.C.A., § 67-841
  • Acts 1986, ch. 627, § 1
  • 1988, ch. 795, § 19
  • 1989, ch. 291, § 3
  • 1989, ch. 550, §§ 3, 22
  • 1990, ch. 1045, §§ 1, 2, 4
  • 1993, ch. 315, § 11
  • 1996, ch. 787, §§ 2, 9, 10
  • 1997, ch. 197, § 1
  • 2003, ch. 385, § 1
  • 2007, ch. 332, § 1
  • 2008, ch. 680, § 2
  • 2011, ch. 32, § 2
  • 2011, ch. 77, § 1
  • 2014, ch. 691, §§ 3, 4
  • 2020, ch. 521, §§ 3, 4
  • 2023, ch. 184, §§ 11, 12.
§ 67-5-1513. Record of board actions.
  1. (a) Records of all actions of the state board of equalization must be prepared and maintained in the office of the executive secretary of the board. Records may be maintained in the form of scanned images, digital recordings, or other data in electronic form.
  2. (b) The records are open to public inspection during regular business hours and must be preserved for at least ten (10) years.
  3. (c) A state citizen may request copies of public records or documents in the possession of the state board of equalization, and such records or documents must be sent without unreasonable delay by first class mail or, at the request of the citizen, by facsimile transmission to the citizen making such request, and such citizen shall pay to the board the reasonable costs of reproducing and transmitting such copies.
History (6)
  • Acts 1973, ch. 226, § 10
  • 1975, ch. 171, § 11
  • T.C.A., § 67-842
  • Acts 1992, ch. 1024, § 1
  • 2011, ch. 32, § 3
  • 2023, ch. 184, § 13.
§ 67-5-1514. Assistance of agents — Qualifications, registration, disciplinary action.
  1. (a) At, or in connection with, any conference or hearing held pursuant to this part, or pursuant to part 14 of this chapter, taxpayers and assessors of property shall be entitled to the assistance of a qualified agent and of such other persons as they may wish.
  2. (b) At any conference or hearing held pursuant to this part, or with respect to the filing of appeals pursuant to § 67-5-1412, taxpayers and assessors of property may appear in person, by qualified agent, or, in the case of taxpayers, by a member of the taxpayer's immediate family.
  3. (c)
    1. (1) The following persons are permitted to act, appear and participate as an agent for the taxpayer:
      1. (A) Attorneys;
      2. (B) With respect to a corporation or other artificial entity, its regular officers, directors or employees;
      3. (C) Where the only issue of an appeal is the valuation of tangible personal property, a certified public accountant; and
      4. (D) Where the primary issue of any complaint, protest or appeal pertains to those grounds as provided in § 67-5-1407, any person who holds a valid registration issued by the board of equalization.
    2. (2) The board of equalization shall, upon receipt of a registration fee of two hundred dollars ($200), register as an agent any person who presents satisfactory evidence that the person has:
      1. (A) Not less than four (4) years of experience in real property appraisal and/or assessment valuation; and
      2. (B)
        1. (i) Successfully completed not less than one hundred twenty (120) classroom hours of academic instruction in subjects of which the primary substance relates to property appraisal or assessment of property from a college or university, or from a nationally recognized appraisal or assessment organization approved by the board;
        2. (ii) Passed the examination for Tennessee certified assessor as administered by the board; and
        3. (iii) No person shall be required to meet the additional registration qualifications required by this section if such person has registered or applied for registration prior to June 30, 2002.
    3. (3) The board may, in lieu of the evidence required in subdivision (c)(2), recognize and accept certain professional designations which are awarded by appraisal and/or assessment organizations on the basis of qualifications at least equal to those set forth therein.
    4. (4) The board may charge a reasonable fee, not to exceed fifty dollars ($50.00), for administration of the examination for Tennessee certified assessor to an applicant for registration under this section.
    5. (5) A corporation engaged in the business of evaluation of property may be registered if its principal officer is registered, but only employees of the corporation who are registered shall be permitted to act as agents for taxpayers. The fee for registration and renewal of registration shall be the same as provided for agents in this subsection (c).
  4. (d) Where the primary issue of any complaint, protest or appeal pertains to those grounds as provided in § 67-5-1407, then all conferences or hearings shall be conducted in an informal manner.
  5. (e)
    1. (1) An assessor of property may delegate duties to be performed under this chapter to any of the assessor's deputies.
    2. (2) The following persons are permitted to represent the assessor of property in any contested case before the state board of equalization:
      1. (A) Attorneys, including attorneys with the division of property assessments;
      2. (B) With respect to the assessor's office, any person designated as deputy assessor;
      3. (C) Where the only issue of an appeal is the valuation of tangible personal property, a certified public accountant, any person that has contracted with that particular county or assessor of property, or both, to review financial information relative to the subject taxpayer's personal property and the tax on the personal property or any person with a personal property designation from any nationally accredited appraisal organization or assessment organization, or both;
      4. (D) Employees of the division of property assessments where the employees have attained any type of designation by the International Association of Assessing Officers or the Tennessee Certified Assessor's Program; and
      5. (E) Where the primary issue of any complaint, protest or appeal pertains to those grounds as provided in § 67-5-1407, any person who holds a valid registration issued by the board of equalization pursuant to subdivision (c)(2).
  6. (f)
    1. (1) The board may reprimand, revoke, or suspend from practice or place on probation or otherwise discipline any agent for any of the acts set forth below:
      1. (A) Procuring or attempting to procure registration pursuant to this part by knowingly making a false statement, submitting false information, or through any form of fraud;
      2. (B) Failing to meet the minimum qualifications established by this section;
      3. (C) Paying money or other valuable consideration, other than as provided for by this section, to any member or employee of the board to procure registration under this section; or
      4. (D) Any act or omission involving dishonesty or fraud that could substantially benefit the registrant or another person or with the intent to substantially injure another person.
    2. (2) The board may adopt additional standards of conduct, if any, regarding all agents when appearing at any conference or hearing pursuant to this section.
    3. (3) There is hereby created within the board a regulatory panel, to consist of six (6) members, each of whom shall serve a two-year term, the members to be selected by the board from among a list of individual agents who are registered with the board and who have been nominated to serve on the panel by individual agents who are registered with the board. The panel may adopt standards of conduct for all agents, which standards then shall be subject to approval by the board. The majority of the panel constitutes a quorum and the affirmative vote of two-thirds (⅔) majority of the panel, or two-thirds (⅔) majority vote of the board upon appeal, is necessary for disciplinary action against any agent.
    4. (4) Upon receipt of a written complaint made against any agent, the executive secretary, if the executive secretary determines that the complaint warrants an investigation, shall notify the agent, and the agent shall file an answer to the complaint with the executive secretary within forty-five (45) days from receipt of notice. Following receipt of the agent's answer to the complaint, the executive secretary shall appoint an administrative judge from the staff of the board who shall investigate the complaint. The administrative judge may dismiss the complaint or determine that a hearing is required. Any such hearing shall be conducted by the panel, and the panel may discipline any agent in any manner provided in this section. Within forty-five (45) days from the date of the panel's disciplinary decision, the disciplined agent may appeal the panel's decision to the board. In the event of such appeal, the members of the board shall conduct a hearing and may confirm or dismiss the panel's disciplinary decision.
    5. (5)
      1. (A) All agents' registrations issued by the board under this section shall expire on June 30 of each even-numbered year, and shall be invalid after that date unless renewed. Subject to subsection (h), such registrations may be renewed on or before the expiration date by remitting to the board the biennial registration fee of two hundred dollars ($200).
      2. (B) Subject to subsection (h), an agent's registration may be renewed:
        1. (i) On or before the expiration date, by remitting to the board the biennial registration fee of two hundred dollars ($200);
        2. (ii) Within a period of one (1) year after the expiration date, by remitting to the board the biennial registration fee of two hundred dollars ($200) plus a late renewal fee of fifty dollars ($50.00).
      3. (C) Any person whose registration has lapsed for a period of more than one (1) year must reapply for registration.
  7. (g) Any written solicitation of business, by letter, advertisement, or otherwise, by any person other than an attorney, who qualifies as an agent under this section shall contain, in type large enough to be easily readable, a disclaimer substantially as follows: “Taxpayer agents who are not lawyers may only appear on your behalf before the state board of equalization on matters of classification, assessment, and/or valuation, and may not represent you in a court of law.”
  8. (h) The agent regulatory panel may adopt and revise standards for continuing education to be imposed as a condition for renewal of an agent's registration under this section, which standards and revisions shall be subject to approval by the board. The board and panel may approve a continuing education program conducted by its staff, and the board may charge agents attending for credit a fee in an amount sufficient to defray the cost of the program.
  9. (i) All other provisions of this section notwithstanding, this section shall not apply in any manner to the representation of a taxpayer by an attorney.
  10. (j) No provision in this section is intended to require that any person must be an attorney, certified public accountant, agent registered with the board, or otherwise in order to act as an agent for a taxpayer before a county board of equalization.
  11. (k) Application for registration or renewal of registration by a person or a firm not a resident of this state shall constitute appointment of the secretary of state as the applicant's agent upon whom process may be served in any action or proceeding against the applicant arising out of any transaction or operation connected with or incidental to services performed by the applicant while a registrant within this state. Service of process on the secretary of state shall be made in the manner set forth in §§  20-2-215 and 20-2-216. The board may waive any registration requirement for an applicant who holds a valid registration certificate or license issued by another state that has requirements for licensing or registration of property taxpayer agents that are at least equal to the requirements of this state. An applicant for reciprocity shall apply in the same manner as any other applicant and shall furnish the board with documents and other evidence substantiating the applicant's qualifications as required by the board.
Backlinks (3)
History (9)
  • Acts 1988, ch. 619, §§ 1, 2
  • 1990, ch. 807, § 1
  • 1992, ch. 1024, §§ 3-6
  • 1998, ch. 697, §§ 1-4
  • 1998, ch. 1066, § 6
  • 2002, ch. 753, §§ 1-3
  • 2009, ch. 256, § 2
  • 2012, ch. 638, § 1
  • 2014, ch. 738, § 1.
§ 67-5-1515. Tax freezes for qualified senior citizens. [Enactment contingent on county approval. See the Compiler's Notes.]
  1. (a) As a matter of public function and for the purposes contained only in this section, the county trustee in any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, is authorized to own property, enter into leases, and declare any property owned by it exempt from local property taxes.
  2. (b)
    1. (1) In any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, any citizen who is a property owner and taxpayer, referred to as “applicant”, designated in this section may apply to the county trustee of such county for senior citizen assessment status:
      1. (A) If the applicant has reached the age of seventy (70) years and has been a property owner and taxpayer for at least twenty (20) of the immediate past thirty (30) years during which the applicant's major domicile was located within the state; or
      2. (B) If the applicant has reached the age of seventy (70) years and has a combined household annual income of less than twenty-five thousand dollars ($25,000).
    2. (2) Upon receipt of the appropriate application and verification of the facts contained therein, the applicant shall be granted senior citizen assessment status by the county trustee of such county. Such status shall entitle the applicant to the right to transfer title and ownership of the applicant's major domicile to the county trustee of such county for a consideration of one dollar ($1.00). A lease for the domicile at an annual rental of one dollar ($1.00) shall be granted to the applicant along with an option to repurchase the domicile for consideration of one dollar ($1.00). The lease and option period shall extend no longer than twenty (20) years and the option may be exercised at any time during this period. If the applicant does not exercise the option to repurchase and the property is held during the entire term of the lease, the property shall revert to the applicant or the applicant's heirs at the end of the lease term. During the lease and option period, the applicant shall pay to the respective county and, if applicable, the municipality an annual sum in lieu of property taxes in an amount equal to the last full tax year's property taxes due immediately prior to the transfer of ownership to the county trustee of such county.
  3. (c) The county trustee of any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, may charge an applicant a one-time fee to offset the administrative costs of this section, and such fee shall be proportionate to the value of the applicant's property as determined by the assessor of property, except that the fee shall not exceed two hundred fifty dollars ($250). No fees may be charged any applicant whose annual household income is less than twenty-five thousand dollars ($25,000).
History (3)
  • Acts 2004, ch. 797, § 1
  • 2005, ch. 342, §§ 1-3
  • 2006, ch. 572, § 1.
Part 16 Periodic Reappraisal and Equalization
§ 67-5-1601. General provisions — Administration — Costs — Penalty for failure to comply.
  1. (a)
    1. (1) Reappraisal shall be accomplished in each county by a continuous six-year cycle comprised of an on-site review or photo of each parcel of real property over a five-year period, or, upon approval of the state board of equalization, by a continuous four-year cycle comprised of an on-site review or photo of each parcel of real property over a three-year period, followed by revaluation of all such property in the year following completion of the review period. Alternatively, if approved by the assessor and adopted by a majority vote of the county legislative body, the reappraisal program may be completed by a continuous five-year cycle comprised of an on-site review or photo of each parcel of real property over a four-year period followed by revaluation of all such property in the year following completion of the review period. The board may consider a plan submitted by an assessor which would have the effect of maintaining real property values at full value as defined by law on a schedule at least as frequent as outlined in this section. In counties which have adopted a four-year or five-year reappraisal cycle, there shall be no updating or indexing of values as there is in counties with a six-year cycle.
    2. (2) In the third year of a six-year reappraisal cycle, there shall be an updating of all real property values if the overall level of appraisal for the jurisdiction is less than ninety percent (90%) of fair market value. If the overall level of appraisal for the jurisdiction is greater than or equal to ninety percent (90%) of fair market value, any subclass of property not having a level of appraisal within ten percent (10%) of the overall level of appraisal for the jurisdiction shall be updated to the overall level of appraisal. Further, any group of property within a subclass not having a level of appraisal within ten percent (10%) of the level of appraisal for that subclass shall be updated to the level of appraisal for that subclass. If land market values of farm property in the county are not updated, land use values for land classified as agricultural, forest and open space pursuant to chapter 5, part 10 of this title will not be updated. When values are updated, the factors or appraisal table changes used to effect the update shall be as determined by the state board of equalization.
    3. (3) The board may approve a reappraisal plan specifying a schedule for continuous on-site review or photo review that is different than the standard schedule provided in subdivision (a)(1), but that is no longer than four (4) years. The board shall consider a plan submitted by an assessor which would have the effect of maintaining real property values at full value as defined by law on a schedule at least as frequent as outlined in this subsection (a), and if the board finds the plan would achieve this effect, the plan shall be implemented in lieu of indexing. During the review cycle between revaluations, new improvements discovered by on-site review or photo or otherwise shall be valued on the same basis as similar improvements were valued during the last revaluation or otherwise as necessary to achieve equalization of such values, subject to application of periodic value indexes established by the board.
    4. (4) The assessor of property shall maintain a program of real property sales verification in accordance with procedures and rules established by the state board of equalization. The assessor of property shall maintain documentation of the reason for rejection of any sale rejected by the assessor for use in analyzing appraisals.
    5. (5) Photo review of parcels as part of reappraisal is permitted only in compliance with rules adopted by the state board of equalization.
  2. (b)
    1. (1)
      1. (A) Subject to funding, the state shall pay a per-parcel grant to local governments to assist in the cost of reappraisal. The grant shall be determined by the division of property assessments and approved by the board. Such funds shall be expended solely for the purpose for which the grant was made.
      2. (B) The state grant for any county in a four-year or five-year reappraisal program shall be limited to the amount, as determined by the division of property assessments, which would have been paid to the county had it remained on a six-year reappraisal program.
    2. (2) In the absence of any agreement between the county and the cities thereof imposing a property tax, local costs of reappraisal of properties within a city shall be paid one-half (½) by the county and one-half (½) by the city. Any city paying one-half (½) of local costs of reappraisal pursuant to this section shall pay those costs directly to the county government with jurisdiction over the property being reappraised, and shall pay those costs during the fiscal year in which the reappraisal is finalized.
    3. (3) The assessor of property shall submit such plans and reports for reappraisal as the board shall require. The board, with the assistance of the division of property assessments, has the power to approve, modify or disapprove any proposed plan submitted by the assessor of property, including the power to specify or approve any proposed computer assisted appraisal system pursuant to minimum standards which the board shall adopt in considering a proposed system. All work is subject to the supervision and approval of the director of property assessments. The division shall supervise and direct all reappraisals and revaluation programs, to the cost of which the state of Tennessee contributes.
    4. (4) Where the on-site review is undertaken by the county assessor of property and the county assessor's staff or a professional firm is employed to carry out this work, the division shall monitor the on-site review conducted by the county or the professional firm.
  3. (c)
    1. (1) The assessor of property of each county shall prepare a plan for carrying out the requirements of this section and §§ 67-5-1602 — 67-5-1604, in the assessor's taxing jurisdiction, such plan to be submitted to the county mayor and the county legislative body for review in such form, manner and time as shall be determined by the board.
    2. (2) At such time as shall be determined by the board, the assessor shall submit the plan and any pertinent resolution of the county legislative body stating its approval or disapproval to the board for the board's approval or other action.
    3. (3) Prior to the execution of any contract for reappraisal, the county legislative body shall make appropriate arrangements to finance such contract.
  4. (d) Whenever the classification or assessed value of property is changed as a result of reappraisal, the property owner shall be entitled to notice of such change as otherwise provided by law at least ten (10) calendar days before the local board of equalization commences its annual session and, in addition, shall be given the opportunity to appear at an informal hearing on a day or days scheduled for such hearings. Written notice of any action taken as a result of such hearings shall be sent at least ten (10) days prior to the county board adjournment.
  5. (e) Upon a finding by the division that the assessor of property or the county is unable or unwilling to comply with the requirements under this part, including submission of any necessary plan of compliance required by the board, the director of the division shall report such finding to the board. The board shall notify the assessor of property and the county mayor of the nature of the noncompliance and shall indicate the action required to correct such noncompliance. Failure on the part of the assessor or the county to comply within forty-five (45) days of such notification shall result in the withholding of any or all of the state grant for reappraisal scheduled to be received by the county according to this part until such deficiency is corrected. If satisfactory action is not taken by the assessor or the county to correct the noncompliance within forty-five (45) days from the date that funds are withheld, the board shall direct the division, and the division shall thereupon be authorized to take such steps as are necessary to ensure compliance with the requirements of this part, and the county found in noncompliance shall reimburse the state for all costs incurred by the state pursuant to this action. If such costs are not reimbursed to the state within ninety (90) days of the date of an invoice for such costs, the state may recover its costs through the deduction of such costs from any state-shared taxes as identified in § 4-31-105, otherwise due the county.
  6. (f) The initial schedule of review and revaluation under this section shall be as determined by the board. The board may specify a four-, five- or six-year cycle for the initial scheduling of review and revaluation under this section; provided, that approval of the county legislative body shall be required to move a mid-cycle updating of values from an existing reappraisal plan, and any revised plan longer than five (5) years shall include a mid-cycle updating of values pursuant to subsection (a).
  7. (g)
    1. (1) There shall also be an updating of the localized and nonoperating real property of public utilities and modern market telecommunications providers in each county, and such must be accomplished in the same year as other locally assessed properties.
    2. (2) All assessing and updating of operating properties of public utility companies and modern market telecommunications providers must be done by the comptroller of the treasury in accordance with part 13 of this chapter.
    3. (3) All expenses for assessing and updating of operating properties of public utilities and modern market telecommunications providers must be paid by the comptroller of the treasury.
  8. (h) As part of any reappraisal program conducted pursuant to this part, the assessor of property of each county shall identify all cemeteries having historic value as determined by the county historian and the cemetery advisory committee. Every cemetery having one (1) or more tombstones shall be indicated on the tax maps by an appropriate symbol prescribed by the state board of equalization. Any cemetery which is not less than one-fourth (¼) of an acre shall be identified as a separate parcel and contain the appropriate symbol.
Backlinks (3)
History (19)
  • Acts 1980, ch. 820, § 1
  • 1982, ch. 757, § 1
  • T.C.A., § 67-680
  • Acts 1984, ch. 764, § 3
  • 1986, ch. 714, §§ 1-4
  • 1988, ch. 883, §§ 1, 2
  • 1989, ch. 495, §§ 1, 2, 8
  • 1992, ch. 752, §§ 1-3
  • 1993, ch. 328, §§ 1, 2
  • 1994, ch. 701, § 1
  • 1995, ch. 305, § 128
  • 1997, ch. 318, §§ 1-8
  • 2003, ch. 7, § 1
  • 2003, ch. 90, § 2
  • 2013, ch. 209, §§ 15, 16
  • 2014, ch. 938, § 4
  • 2017, ch. 490, § 8
  • 2018, ch. 526, § 1
  • 2024, ch. 781, § 3.
§ 67-5-1602. Repayment of reappraisal loans.
  1. (a)
    1. (1) Upon request by any city or county having an unpaid balance on a loan previously made from state funds for a prior reappraisal program, the remaining unpaid balance on the prior reappraisal loan shall be added to any new loan made from state funds to a city or county to finance a new reappraisal program, and repayment will follow the repayment schedule of the new reappraisal program.
    2. (2) The remaining unpaid balance on the prior reappraisal loan shall be repaid at the same rate of interest as provided for in the original note.
  2. (b)
    1. (1) Any new loan to any county or city shall be repayable to the state in five (5) annual installments with interest at an annual rate of six percent (6%).
    2. (2) The first payment shall be due one (1) year from the date the reappraisal program is completed and approved by the director of the division of property assessments.
  3. (c) In the event of a default by a county or city in the repayment of loans provided by the state, the director of the division of property assessments shall notify the commissioner of finance and administration of the default and the amount thereof; whereupon, the commissioner shall pay over to the state out of any revenue due the general fund of the defaulting county sums to pay the amount in arrears.
Backlinks (1)
History (4)
  • Acts 1980, ch. 820, § 2
  • 1981, ch. 124, § 1
  • T.C.A., § 67-681
  • Acts 1989, ch. 495, § 3.
§ 67-5-1603. Equalization of assessments based on reappraisals.
  1. (a)
    1. (1) After a reappraisal program has been completed and approved by the director of property assessments, the value so determined shall be used as the basis of assessments and taxation for property that has been reappraised.
    2. (2) The local assessor of property and county boards of equalization may adjust individual assessments in accordance with other facts and information relevant to the proper assessment of the property.
    3. (3) No such changed assessments for individual taxpayers shall result in inequality or destroy the uniformity of assessment intended to be achieved by the reappraisal program.
  2. (b) In the event the assessor shall fail to equalize on the basis of the completed reappraisal program, together with other proper considerations in individual cases, it shall become the duty of the county board of equalization immediately to do so in order that equality and uniformity of assessment may be achieved.
  3. (c)
    1. (1) It is the duty of the state board of equalization to determine whether standards set by it have been met in each county reappraisal program, and whether such reappraisal program, when completed, has been adopted and used as the basis of the new assessments in such county.
    2. (2) In the event such reappraisals have not been made the basis of the new assessments in the county, in accordance with §§ 67-5-1601 — 67-5-1604, it is the duty of the state board to direct and order that there be an equalization in such county based upon such reappraisal program and other proper considerations brought to the attention of the board, and the state board in such cases shall make the necessary adjustments in the amount of individual assessments on the roll and issue other appropriate orders as may be necessary to accomplish the purpose and mandate of §§ 67-5-1601 — 67-5-1604.
  4. (d) In a year of reappraisal, if the number of foreclosures is of a significant number in any area or neighborhood, the assessor of property may recognize the effects of the foreclosures on the values of other properties located within the affected area or neighborhood.
History (3)
  • Acts 1980, ch. 820, § 3
  • T.C.A., § 67-682
  • Acts 2009, ch. 527, § 1.
§ 67-5-1604. Appraisal ratio studies.
  1. (a) The division of property assessments shall conduct appraisal ratio studies in all counties of the state in such manner and at such time as shall be determined by the state board of equalization.
  2. (b) The purpose of these studies shall be to assist the board through the division of property assessments to effect the assessment of all property throughout the state in accordance with the constitution and laws of Tennessee.
  3. (c) Based upon these studies and other pertinent information which may be available, the division of property assessments, with approval of the state board of equalization, shall develop a plan and proceed to carry out the reappraisal and equalization programs in each county of the state.
Backlinks (2)
History (2)
  • Acts 1980, ch. 820, § 4
  • T.C.A., § 67-683.
§ 67-5-1605. Periodic appraisal ratio studies required.
  1. (a) The state board of equalization has the responsibility to determine whether or not property within each county of the state has been valued and assessed in accordance with the constitution and laws of this state.
  2. (b)
    1. (1) In order to assist the board in its determination, the division of property assessments shall conduct appraisal ratio studies in all counties of the state at least every two (2) years unless otherwise determined by the board.
    2. (2) Such studies shall determine applicable ratios by dividing the appraised values of property as shown on the official assessment records by the qualified selling prices of such properties.
    3. (3) If a sufficient number of qualified sales do not exist for a subclass of property in a jurisdiction, appraisals of representative properties in that subclass may be used to supplement any existing sales in determining the ratios required by this section and § 67-5-1606.
    4. (4) These appraisal ratio studies and any other pertinent information which may be available shall be used by the board to determine whether or not the property in each county has been assessed by the assessor of property as required by the constitution and laws of the state.
    5. (5) Indexes to be used for revaluation shall be developed separately for each subclass of property based upon acceptable sales or appraisal data of representative properties in the subclass, or upon other relevant data. Multiple indexes within a subclass shall be developed as appropriate to recognize differential rates of change in values of property based on location, type of use, or other appropriate basis. A minimum sample size of one hundred (100) acceptable sales shall be used if available, otherwise all acceptable sales shall be used.
  3. (c) In the event that it is determined by the board that the property in any county has not been valued and assessed in accordance with the constitution and laws of Tennessee, it shall notify the assessor of property of such county regarding such steps as may be necessary to be taken by the assessor to bring the values and assessments of property in the assessor's taxing jurisdiction in compliance with the laws of the state.
History (4)
  • Acts 1980, ch. 827, § 1
  • 1983, ch. 235, § 1
  • T.C.A., § 67-684
  • Acts 1989, ch. 495, § 4.
§ 67-5-1606. Annual overall ratio of appraisal — Ratios for classifications — Public utility properties and operating properties of modern market telecommunications providers.
  1. (a) Based upon the appraisal ratio studies and other pertinent information, the state board of equalization shall annually determine the overall ratio of appraisal for property in each county of the state.
  2. (b) In addition, the board may also determine ratios for the respective classifications of property for each county.
  3. (c) The state board of equalization shall each year certify to the comptroller of the treasury appraisal levels, as are determined by the board for each county, to be used by the office of state assessed properties for purposes of computing the assessments of public utility properties and operating properties of modern market telecommunications providers.
Backlinks (1)
History (6)
  • Acts 1980, ch. 827, § 2
  • 1983, ch. 235, § 2
  • T.C.A., § 67-685
  • Acts 1995, ch. 305, § 129
  • 2017, ch. 490, § 9
  • 2019, ch. 10, § 1.
§ 67-5-1608. When penalty and interest attach.
  1. In the event that in the year a reappraisal program is completed, the values established in such reappraisal program are turned over to the county after October 1 of such year, no penalty and interest shall be added until five (5) months following the tax roll completion date as evidenced by written notification from the assessor of property to the trustee, specifically stating the date the tax roll was delivered to the trustee.
History (12)
  • Acts 1907, ch. 602, § 48
  • Shan., § 865a2
  • Acts 1923, ch. 77, § 1
  • mod. Code 1932, § 1547
  • Acts 1971, ch. 380, § 1
  • 1976, ch. 429, § 1
  • modified
  • Acts 1982, ch. 883, §§ 1-3
  • 1983, ch. 62, §§ 1, 2
  • 1983, ch. 430, § 2
  • T.C.A. (orig. ed.), § 67-1105(c)
  • Acts 1989, ch. 495, § 6.
§ 67-5-1609. Untimely completion of program — Notice — Extension of reappraisal.
  1. Upon a determination by the county mayor that a reappraisal program may not be completed timely whereby notices of reappraised values will be mailed to taxpayers prior to July 1 of the tax year scheduled for completion, the county mayor shall notify in writing the executive secretary to the state board of equalization of the possibility that the program may not be completed timely and the reasons therefor, no later than the preceding December 1. The state board of equalization shall then evaluate the program to determine whether an extension of time to complete the reappraisal program is justified, and shall notify the county mayor accordingly. Unless the board has given notice to the county mayor no later than February 1 of the tax year scheduled for completion that the program is to be completed and the reappraised values used for that tax year, the county governing body may act to extend the reappraisal until the next tax year; provided, that all values will be updated to January 1 next following, with all costs of such updating being borne directly and exclusively by the county and cities, if the reappraisal program is conducted by the county, the state of Tennessee, if the reappraisal program is conducted by the state, or in accordance with a binding agreement between the county and the private contractor, if the reappraisal program has been contracted to a nongovernment entity.
History (2)
  • Acts 1984, ch. 675, § 1
  • 2003, ch. 90, § 2.
Part 17 Certified Tax Rate
§ 67-5-1701. General provisions.
  1. (a)
    1. (1) Upon a general reappraisal of property as determined by the state board of equalization, the county assessor of property shall certify to the governing bodies of the county and of each municipality within the county the total assessed value of taxable property within the jurisdiction of each governing body.
    2. (2) The assessor shall also furnish each governing body an estimate of the total assessed value of all new construction and improvements not included on the previous assessment roll and the assessed value of deletions from the previous assessment roll.
    3. (3) Exclusive of such new construction, improvements and deletions, each governing body, in the event of a general reappraisal as determined by the state board, shall determine and certify a tax rate which will provide the same ad valorem revenue for that jurisdiction as was levied during the previous year.
    4. (4) For the purpose of calculating the certified rate, the governing body shall use the taxable value appearing on the roll exclusive of taxable value of properties appearing for the first time on the assessment roll. The governing body may also exclude from the taxable value appearing on the roll:
      1. (A) The taxable value of properties subject to tax increment financing provisions adopted by the governing body pursuant to title 13, chapter 20, part 2; and
      2. (B) The taxable value of properties within an area for which an economic impact plan has been approved by the governing body pursuant to § 7-53-312 or § 7-53-314.
    5. (5) In calculating the certified tax rate, the governing body of the county or municipality may adjust the calculation, according to a method approved by the state board of equalization, to reflect extraordinary assessment changes anticipated from appeals to the state or local boards of equalization. The state board of equalization shall order recapture of an excessive adjustment in the following year if the certified tax rate is found to have been overstated due to overestimation of the appeals adjustment, and in these cases the jurisdiction may exceed the recapture rate only after public hearing.
  2. (b)
    1. (1) The state board is authorized to establish policies providing a procedure or formula for calculating the certified tax rate.
    2. (2) Prior to final determination of the certified tax rate by the governing body, a proposed certified tax rate, including the calculations used to compute the proposed certified tax rate, shall be submitted to the executive secretary of the state board for review in accordance with policies established by the board.
    3. (3) The executive secretary shall immediately acknowledge receipt in writing of the proposed certified tax rate and supporting calculations.
    4. (4) The executive secretary may report to the governing body the results of such review.
    5. (5) After receiving the report of the executive secretary or after fifteen (15) days from the date the proposed certified tax rate and supporting calculations are received by the executive secretary, whichever occurs first, the governing body shall finally determine the proposed certified tax rate, which may be adjusted in accordance with the report, if any, of the executive secretary, as the certified tax rate.
    Backlinks (1)
  3. (c) This part shall be applicable upon the application of a current value index or other plan approved by the state board for general updating of real property values.
Backlinks (1)
History (6)
  • Acts 1979, ch. 253, § 1
  • 1982, ch. 593, § 1
  • T.C.A., § 67-1016
  • Acts 1989, ch. 495, § 7
  • 1997, ch. 218, § 1
  • 2018, ch. 911, § 1.
§ 67-5-1702. Levy in excess of certified rate.
  1. No tax rate in excess of the certified tax rate as provided for in § 67-5-1701 shall be levied by the governing body of any county or of any municipality until a resolution or ordinance has been approved by the governing body according to the following procedure:
    1. (1) The governing body shall advertise its intent to exceed the certified tax rate in a newspaper of general circulation in the county, and the chief executive officer of the county or municipality, as appropriate, shall within thirty (30) days after publication furnish to the state board of equalization an affidavit of publication; and
    2. (2) The governing body, after public hearing, may adopt a resolution or ordinance levying a tax rate in excess of the certified tax rate.
Backlinks (2)
History (2)
  • Acts 1979, ch. 253, § 2
  • T.C.A., § 67-1017.
§ 67-5-1703. Notification of change in assessment rolls — Adoption of increased tax rate due to reduction in assessment rolls.
  1. (a) The resolution or ordinance approved in the manner provided in § 67-5-1702 shall be forwarded to the county board of equalization and the state board of equalization.
  2. (b) The county board or the state board, as appropriate, shall notify each taxing authority of any change in the assessment roll which results from action by either board.
  3. (c) An increase in the tax rate above that certified or adopted by resolution or ordinance of the governing body, which is required solely by a reduction of the assessment roll by the state or county boards, may be adopted without further notice.
  4. (d) A levy of tax found to be based on an erroneous calculation may be revised prior to tax billing on certification of a revised calculation by the state board of equalization accepted by act or resolution of the governing body of the affected taxing authority without further notice. If the error is certified after tax billing, the revised rate will take effect as of the next general ad valorem levy by the governing body of the affected taxing authority.
History (3)
  • Acts 1979, ch. 253, § 3
  • T.C.A., § 67-1018
  • Acts 2014, ch. 937, § 1.
§ 67-5-1704. Special school districts.
  1. (a)
    1. (1) Notwithstanding the provisions of the general law or a private act to the contrary which creates a special school district, upon a general reappraisal of property as determined by the state board of equalization, the tax rate as established in any such general law or private act shall be adjusted to provide the same ad valorem revenue for such special school district as was levied during the previous year prior to such general reappraisal.
    2. (2) The county assessor of property shall certify to the appropriate county trustee the total assessed value of taxable property within the jurisdiction of the special school district.
    3. (3) The assessor shall also furnish such county trustee an estimate of the total assessed value of all new construction and improvements not included on the previous assessment roll and the assessed value of deletions from the previous assessment roll.
    4. (4) Exclusive of such new construction, improvements and deletions, the county trustee, in the event of a general reappraisal as determined by the state board of equalization, shall determine and certify the adjusted tax rate pursuant to this section.
    5. (5) For the purpose of calculating the adjusted rate, the county trustee shall use the taxable value appearing on the roll exclusive of taxable value of properties appearing for the first time on the assessment roll.
    6. (6) The procedure or formula for calculating the certified adjusted tax rate shall be in accordance with policies as established by the state board of equalization pursuant to § 67-5-1701(b). A levy of tax found to be based on an erroneous calculation may be revised prior to tax billing on certification of a revised calculation by the state board of equalization accepted by act or resolution of the board of education of the special school district without further notice. If the error is certified after tax billing, the revised rate shall take effect as of the next general ad valorem levy for the special school district.
  2. (b) The county trustee shall certify such adjusted tax rate to the school board of the special school district within a reasonable time following the general reappraisal, and in addition, shall post such adjusted tax rate at each school within the special school district, at the appropriate courthouse, and at one (1) other public building within the appropriate county.
  3. (c) If additional revenue is required in a special school district following such general reappraisal and the adjustment to the tax rate under this section, the general assembly shall by general law or private act set the tax rate for such special school district at a level to generate the ad valorem revenue necessary for such special school district. Before the board of education of the special school district requests legislation to exceed the certified rate as determined in this section, it shall first publish notice of its intent to exceed the certified rate in the manner required of cities and counties pursuant to § 67-5-1702.
History (4)
  • Acts 1983, ch. 303, §§ 1, 2
  • T.C.A., § 67-1019
  • Acts 2011, ch. 155, § 1
  • 2014, ch. 937, § 2.
§ 67-5-1705. Extended reappraisal programs — Applicability of part.
  1. In the event of extension of completion of a reappraisal program as provided in part 16 of this chapter, this part shall apply only for the year in which the approved program is completed.
History (1)
  • Acts 1984, ch. 675, § 2.
Part 18 Collection
§ 67-5-1801. Collector — Place of payment — Collection agent — Evidence of taxes — Deposits — Subrogation — Electronic funds transfers.
  1. (a) The county trustee shall act as collector of all county property taxes and of all municipal property taxes when the municipality does not collect its own taxes. A municipality that certifies its delinquent tax list to the trustee or the delinquent tax attorney selected pursuant to § 67-5-2404(a)(1), is deemed to have authorized, without further action of the municipality, county officers to do all things authorized under parts 18-28 of this chapter with respect to the collection of delinquent municipal taxes, including the ability to convey any and all interests of the municipality in the property sold, until such time as the municipality's legislative body determines otherwise and causes a document evidencing the determination to be recorded in the office of the register of deeds. This subsection (a) is procedural and remedial in its application and is made applicable retroactively to the extent allowed by law.
    Backlinks (1)
  2. (b) These taxes shall be paid to the trustee at the trustee's office at the county seat or at such other place or places as the trustee may designate. A trustee is authorized to adopt a policy of not accepting current county real property taxes due when delinquent real property taxes are owing; provided, that this prohibition shall not apply when the obligor of one (1) or more of the prior year's taxes is in bankruptcy or there is a dispute as to the responsibility for such taxes.
  3. (c)
    1. (1) The county trustee may designate a bank and/or the branches that are located within the county to act as a collection agent for the trustee and accept the deposit of county and municipal property taxes. The county trustee shall establish an account with the bank for such purpose, which shall be restricted to the deposit of county and municipal property taxes.
    2. (2) The taxpayer shall be required to furnish to the bank evidence of the property taxes that are due and payable and in no case shall such taxes be accepted by the bank when such taxes are delinquent. The bank shall use a deposit form for deposit of property taxes, which shall contain the following language: “In accepting deposits of taxpayers, the bank is acting as an agent for the trustee.” The taxpayer will be provided a copy of the deposit form at the time of the deposit. The bank shall provide to the trustee such evidence of the taxes deposited into the account and a copy of the deposit forms at least every three (3) business days.
    3. (3) The county trustee shall determine whether the correct amount of property taxes was deposited into the account and whether interest is due on such property before issuance of the tax receipt to the taxpayer.
    4. (4) The taxpayer making a payment of property taxes in such manner is not relieved of interest upon failure of the bank to provide evidence of the deposit of such taxes prior to the due date.
  4. (d) When any person pays property taxes that are the legal obligation of a third party by mistake, inadvertence or otherwise, the person making the payment is subrogated to the rights of the government to which the property taxes are paid, against the person whose property taxes were paid. However, at any judicial sale of such property, the clerk shall not enter a bid as provided in § 67-5-2506, or any other provision of law, on behalf of any government entity.
  5. (e)
    1. (1) Any county trustee may accept partial payments of property taxes.
    2. (2) Prior to any county trustee accepting partial payment of property taxes, the county trustee shall file a plan with the comptroller of the treasury. The plan shall indicate that the county trustee's office has the accounting system technology to implement a program for partial payment of property taxes. The plan shall also indicate whether such a program will be implemented within the existing operating resources of the office or indicate prior approval of the county legislative body if additional operating resources are needed. This subdivision (e)(2) does not apply to any county which has implemented a partial payment program prior to April 19, 1995.
    3. (3) A county trustee may accept taxes paid by electronic funds transfer, including, but not limited to, bank customer preauthorized payments, wire transfers or ACH credits. If the entire amount of taxes due is not paid prior to the delinquency date for such taxes, the entire property shall be subject to the tax lien and enforcement by a tax sale or other legally authorized procedures. Unless partial payment is made by electronic transfer of funds, if the county trustee accepts partial payment within ten (10) days of the delinquency date, or at any time following such delinquency date, then prior to accepting such payment the county trustee must inform the taxpayer of the delinquency date and must advise such taxpayer that the property may be subjected to tax lien and enforcement by tax sale or other legally authorized procedures.
    4. (4) Direct bank transfers and partial payments are subject to the following guidelines:
      1. (A) Vouchers issued pursuant to the tax relief program shall be used as all or a portion of the final payment;
      2. (B) A receipt shall be issued to the taxpayer for any partial payment of taxes. The receipt shall state that:
        1. (i) The payment is a partial payment of property taxes;
        2. (ii) The balance owing on such taxes that must be paid prior to the delinquency date; and
        3. (iii) A failure to pay the entire amount of the taxes prior to the delinquency date subjects any unpaid taxes to the interest applicable to delinquent taxes and subjects the entire property on which there is a lien for taxes to a tax sale. The final partial payment shall show that a zero (0) balance is owing or shall state that the taxes are paid in full. Receipts shall also be sent to the taxpayer for payments made by direct bank transfer of funds; and
      3. (C) In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census, the trustee may set a minimum requirement of no more than the lesser of fifteen percent (15%) or twenty-five dollars ($25.00) for any partial payment.
Backlinks (1)
History (16)
  • Acts 1875, ch. 91, § 1
  • 1907, ch. 602, § 47
  • integrated in Shan., § 865a1
  • Code 1932, § 1546
  • modified
  • T.C.A. (orig. ed.), § 67-1104
  • Acts 1987, ch. 346, § 4
  • 1993, ch. 78, § 1
  • 1993, ch. 315, § 23
  • 1994, ch. 812, § 1
  • 1995, ch. 111, §§ 1, 2
  • 1995, ch. 259, § 1
  • 1996, ch. 787, §§ 1, 5, 8
  • 1997, ch. 187, §§ 1-3
  • 2019, ch. 170, § 1
  • 2019, ch. 220, §§ 3-6.
§ 67-5-1803. Late billing in certain counties.
  1. (a) The county trustee of any county of this state where the billing could not be made on personalty tax prior to the delinquent date of tax is authorized and empowered to waive any delinquent interest and penalty on tax for a period of ninety (90) days from the billing date; provided, that, should this tax not be paid within the ninety-day grace period provided in this subsection (a), the tax reverts to a delinquent status and delinquent interest and penalty accrue as prescribed under [former] § 67-1-801(b) [repealed].
  2. (b) This section shall apply only to counties having a population of at least two hundred thousand (200,000) or more, according to the 1970 federal census or any subsequent federal census; provided, that this section does not apply to any county having a metropolitan form of government.
History (2)
  • Acts 1972, ch. 695, §§ 1, 3
  • T.C.A., § 67-1122.
§ 67-5-1804. Discount for early payment.
  1. (a) The governing body of any municipality or county may provide by appropriate ordinance or resolution enacted or adopted in connection with the levy of ad valorem real property taxes for any year for a discount of two percent (2%) of the ad valorem real property tax currently due, if such taxes are paid within thirty (30) days of the date on which such taxes are payable under § 67-1-701(a) and/or a discount of one percent (1%), if paid after more than thirty (30) but less than sixty (60) days after the date such taxes are payable under § 67-1-701(a); provided, that such discount shall apply only to the taxes paid by the taxpayer during the discount period for any taxpayer making a partial payment as authorized by law or for any taxpayer receiving tax relief under part 7 of this chapter.
  2. (b) Notwithstanding this section, in any county included in chapter 550, §§ 8 — 21 of the Public Acts of 1989, or in any county that by private act adopts similar provisions to those contained in such provisions of that act, if a county or municipality in such county has adopted a discount for early payment as provided in this section, pursuant to § 67-1-701, and the trustee accepts property taxes prior to the first Monday in October, the discount applicable to payments during October shall be applicable to tax payments made prior to the first Monday in October.
  3. (c) As an alternative to the discount provided for in subsection (a), in accordance with § 67-1-702, giving the county trustee the authority to collect taxes at any time after July 10, prior to the first Monday in October established by § 67-1-701, the governing body of any municipality or county may provide by appropriate ordinance or resolution for a discount of three percent (3%) of the ad valorem real property tax to become due the first Monday in October, if such taxes are paid by the end of July; two percent (2%), if paid by the end of August; and one percent (1%), if paid by the end of September. The trustee may accept such early payments, in the trustee's discretion, based upon the trustee's capacity to effectively account for such payments. Nothing herein shall prevent any governing body from rescinding the adoption of such discounts at any time.
  4. (d) Nothing in this section shall be deemed to require early payment by any mortgagee, mortgage servicer, or escrow account holder; nor shall any mortgagee, mortgage servicer, or escrow account holder be required to notify any mortgagor or other party with respect to the availability of any such discounts.
Backlinks (1)
History (14)
  • Acts 1907, ch. 602, § 41
  • 1909, ch. 542, § 1
  • Shan., § 865
  • mod. Code 1932, § 1545
  • Acts 1961, ch. 312, § 1
  • modified
  • 1982, ch. 819, § 1
  • T.C.A. (orig. ed.), § 67-1101(b)
  • Acts 1987, ch. 346, § 15
  • 1988, ch. 795, § 21
  • 1989, ch. 291, § 6
  • 1989, ch. 550, §§ 6, 24
  • 1992, ch. 889, §§ 1-3
  • 1995, ch. 126, § 1.
§ 67-5-1805. Payment by part owner.
  1. (a) Any person claiming or owning an undivided interest or part in any property or any specific portion of any property assessed to another shall receive a receipt in full for the person's taxes on paying such portion of the taxes as the person claims of the property or such proportion of the taxes as the person's quantity of the property bears to the whole quantity taxed.
  2. (b) Before issuing a receipt in full on any specific portion of such property, the trustee or other collecting official shall be personally satisfied that the value placed on each portion is a correct relative valuation, either by agreement of the parties in interest or the certificate of the assessor that the trustee or other collecting official has properly fixed the valuation of the portion. This subsection (b) shall apply to all taxes, interest, penalties, and costs that have or may become a lien on any property in the hands of the trustee or other collecting official or of the clerk of court for redemption from any tax sale.
  3. (c) This section shall apply to a secured party only for the purpose of determining the amount of its payment or liability pursuant to § 67-5-2003(h), which shall be as follows:
    1. (1) The personal property taxes to be withheld and paid by a secured party pursuant to § 67-5-2003(h) shall be determined by the valuation of only such personal property that the secured party has sold pursuant to title 47, chapter 9, and the tax rate or tax rates applicable to the owner of such personal property;
    2. (2) The assessor will determine valuation of such personal property based on its cost to the owner less applicable depreciation pursuant to § 67-5-903. In determining cost to the owner, the assessor shall consider relevant a statement tendered by the secured party that specifies the following: the manufacturer, model, and serial number of the personal property sold, the known or estimated purchase price and year of the owner's purchase of such property, and known or estimated taxes and installation charges. The assessor may also consider such additional information as may be available. A secured party may dispute whether valuation has been correctly determined pursuant to this section by direct appeal to the state board of equalization in the manner provided in § 67-1-1005;
    3. (3) The secured party's payment or liability under § 67-5-2003(h) shall be limited to no more than four (4) tax years, none of which shall be a tax year in which the owner did not own such property on January 1;
    4. (4) In regard to specific personal property and in regard to a specific tax year:
      1. (A) A satisfaction and release of the secured party of any and all liability pursuant to § 67-5-2003(h), and a release of all personal property tax liens, regardless of jurisdiction or taxing authority, shall automatically go into effect upon any of the following:
        1. (i) Payment of all outstanding county and municipal taxes, penalty, and interest pursuant to § 67-5-2003(h), as apportioned, in either the county of the owner's domicile or the county in which the personal property came into the possession of the secured party, for which payment the secured party shall also receive a receipt in full;
        2. (ii) The secured party's receipt of a writing stating or indicating that as of the calendar year of the sale referred to in § 67-5-2003(h), the owner appears on the tax rolls of either the county of the owner's domicile or the county in which the personal property came into the possession of the secured party and does not owe personal property taxes to such county or to a municipality located within such county; or
        3. (iii) The secured party's receipt of a writing stating or indicating that as of the calendar year of the sale referred to in § 67-5-2003(h), the owner does not appear on the personal property tax rolls in both the county of the owner's domicile and also the county in which the personal property came into the possession of the secured party;
      2. (B) In regard to any county or municipality, the “writing” described in this subdivision (c)(4) means one (1) or more recorded communications including, but not limited to, the following:
        1. (i) A communication from a collecting official or assessor of such county or municipality delivered either in tangible form such as via hand delivery, United States mail, or courier, or delivered electronically such as via e-mail or facsimile;
        2. (ii) The recorded results of a search of a publicly available database into which such county or municipality enters or submits outstanding personal property tax liability; or
        3. (iii) In the event a secured party sends a written request for information to a collecting official or assessor via U.S. certified mail return receipt requested, and such collecting official or assessor does not send the requested information within fifteen (15) days of the secured party's request, the signed return receipt from such collecting official or assessor, which shall be deemed to contain the content required by subdivision (c)(4)(A)(ii), in the case of an assessor, or subdivision (c)(4)(A)(iii), in the case of a trustee or other collecting official;
      3. (C) The comptroller of the treasury may prescribe a form for the use of a secured party in requesting a writing under this subdivision (c)(4);
      4. (D) A secured party may not request a writing from an assessor within a county without first receiving a writing from the trustee of such county;
      5. (E) No satisfaction or release as provided in this subdivision (c)(4) shall require payment to or a writing from a municipality located in a county in which the county trustee does not identify the owner as being on the personal property tax rolls of such county or in which the county assessor does not identify the owner as being on the personal property tax rolls of such municipality;
    5. (5) For purposes of this subsection (c), “owner” shall mean the “individual, partnership, joint venture, corporation or other legal entity” referred to in § 67-5-2003(h);
    6. (6) The application of this section to a secured party, and the mechanisms described in this section, shall be construed as remedial legislation designed to clarify and bring uniformity to existing law regarding the procedure of the apportionment and collection of taxes pursuant to § 67-5-2003(h).
Backlinks (1)
History (5)
  • Acts 1907, ch. 602, § 67
  • Shan., §§ 873a7-873a9
  • Code 1932, §§ 1560-1562
  • T.C.A. (orig. ed.), §§ 67-1117, 67-1118
  • Acts 2010, ch. 1007, § 1.
§ 67-5-1806. Bar to collection after ten years.
  1. (a) All taxes assessed against real and personal property in this state shall be barred, discharged and uncollectible after the lapse of ten (10) years from April 1 of the year following the year in which such taxes become delinquent, whether suit be brought within that time or not to collect the taxes, and whether this section be pleaded in bar of such collection or not, unless the property in question be struck off and sold within such period of ten (10) years.
  2. (b) The bar against collection provided in subsection (a) shall be tolled:
    1. (1) As to taxes at issue in an administrative appeal before the state board of equalization, from the date of filing the appeal through issuance of the final assessment certificate and during the pendency of any judicial review thereof;
    2. (2) During the pendency of any appeal of an action to collect or enforce a lien for unpaid taxes;
    3. (3) During the pendency of any recovery action under chapter 1, part 9 of this title;
    4. (4) During the pendency of any suit to invalidate a tax sale; or
    5. (5) During the pendency of any bankruptcy or receivership proceedings affecting the taxing entity's collection rights or the term of any payment plan ordered in such proceedings.
Backlinks (2)
History (7)
  • Acts 1957, ch. 402, §§ 1, 2
  • 1971, ch. 89, § 1
  • T.C.A., § 67-1326
  • Acts 1985, ch. 373, § 2
  • 1987, ch. 346, § 18
  • 2008, ch. 680, § 3
  • 2013, ch. 353, § 6.
§ 67-5-1807. Quarterly installments.
  1. (a)
    1. (1) Notwithstanding any provisions of the general law or any private act to the contrary, the county trustee is authorized and empowered to permit any retired person over sixty-five (65) years of age and living on a fixed income, to pay in quarterly installments any real estate tax assessed and levied on real estate situated within the county and used as a primary residence of such person. The county trustee shall prescribe the terms and conditions under which quarterly payments can be made, the date on which quarterly payments of such tax shall be due and payable, fix the manner of payment, the official receipt to be given to the taxpayer, and do all other things necessary to enable and expedite the payment of the tax in quarterly installments.
    2. (2) Subdivision (a)(1) applies to any county having a population of greater than seven hundred seventy thousand (770,000), according to the 1980 federal census or any subsequent federal census, and to any county having a population of not less than three hundred thirty-five thousand (335,000) nor more than three hundred thirty-six thousand (336,000), according to the 1990 federal census or any subsequent federal census.
  2. (b)
    1. (1) Notwithstanding any provision of general law or any private act to the contrary, in any county having a population of not less than nineteen thousand two hundred (19,200) nor more than nineteen thousand three hundred (19,300), according to the 1980 federal census or any subsequent federal census, the county trustee shall permit any person to pay in quarterly installments any real estate tax assessed and levied on real estate situated within the county and used as a primary residence of such person. The county trustee shall prescribe the terms and conditions under which quarterly payments can be made, the date on which quarterly payments of such tax shall be due and payable, fix the manner of payment, the official receipt to be given to the taxpayer, and do all other things necessary to enable and expedite the payment of the tax in quarterly installments.
    2. (2) This subsection (b) shall have no effect, unless approved by a two-thirds (⅔) vote of the county legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the county legislative body and certified by such officer to the secretary of state.
  3. (c) Notwithstanding any provisions of the general law or any private act to the contrary, the county trustee of any county having a population of not less than two hundred eighty-five thousand (285,000) nor more than two hundred eighty-six thousand (286,000), according to the 1990 federal census or any subsequent federal census, shall permit any retired person over sixty-five (65) years of age and living on a fixed income, to pay in quarterly installments any real estate tax assessed and levied on real estate situated within the county and used as a primary residence of such person. The county trustee shall prescribe the terms and conditions under which quarterly payments can be made, the date on which quarterly payments of such tax shall be due and payable, fix the manner of payment, the official receipt to be given to the taxpayer, and do all other things necessary to enable and expedite the payment of the tax in quarterly installments.
History (4)
  • Acts 1988, ch. 992, § 1
  • 1989, ch. 407, §§ 1, 2
  • 1992, ch. 569, § 1
  • 1995, ch. 210, § 1.
§ 67-5-1808. Prepayment and partial payment of property taxes.
  1. (a) Notwithstanding any general law or any private act to the contrary, the county trustee may accept prepayments and partial payments of property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers or ACH credits, for the current tax year prior to the date the tax rate is established for the current tax year. Any prepayment or partial payment of property taxes for the current tax year that is received before the later of July 1 or the date the property tax rate for the current year is established shall be held by the trustee in a designated revenue account established to hold undistributed taxes and then transferred to the revenue account established for the current year's taxes after the later of July 1 or the date the property tax rate for the current year is adopted by the county legislative body.
  2. (b) Prior to any county trustee accepting prepayment or partial payment of property taxes in accordance with this section, the county trustee shall file a plan with the comptroller of the treasury at least thirty (30) days prior to the acceptance of the payments. The comptroller of the treasury must acknowledge the receipt of the plan and provide written comments regarding the plan to the trustee prior to implementation. The plan should contain the following:
    1. (1) A description of the accounting system technology or manual processes to be used to record prepayments and partial payments of property taxes for the current tax year prior to the date the tax rate is established;
    2. (2) A statement indicating whether such a process of collecting property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and
    3. (3) Documentation of the internal controls that will ensure all property tax payments are being recorded and accounted for as required by law.
  3. (c)
    1. (1) The delinquent date for property taxes and interest applicable to delinquent property taxes is not affected by application of a prepayment or partial payment system established in such county.
    2. (2) Interest applies only to the amount of delinquent property taxes remaining due as of the date property taxes become delinquent.
  4. (d) If a prepayment or partial payment of property taxes is accepted, such prepayment or partial payment does not release the tax lien on the property upon which the taxes were assessed and such prepayment or partial payment is non-refundable.
  5. (e) This section is known and may be cited as the “Representative Mike Carter Preservation Act.”
History (5)
  • Acts 1990, ch. 922, § 1
  • 2008, ch. 698, § 1
  • 2009, ch. 71, § 1
  • 2019, ch. 220, § 7
  • 2022, ch. 848, §§ 1-4.
§ 67-5-1809. Refund of property taxes after final action.
  1. When a county has been ordered to make a refund of property taxes pursuant to final action of a court or the state board of equalization, a specific appropriation is not required to authorize the county trustee to make the refund. The trustee may make the ordered refund and any interest owing the taxpayer as otherwise provided from any taxes collected for the year or years to which the refund relates prior to the allocation to the various county funds. If the trustee does not have funds collected from the year to which the refund relates, the trustee may make the refund and pay any interest owing the taxpayer from current collections prior to the allocation of revenue to the various county funds. Where a refund plus accrued interest exceeds one percent (1%) of all property taxes levied for the year in which the refund is due, the trustee may defer the refund for a period of up to three (3) years in equal annual installments, and the deferred amounts must accrue interest in the manner otherwise provided by law.
History (3)
  • T.C.A. § 67-5-1512(c)
  • Acts 2003, ch. 385, § 2
  • 2023, ch. 184, § 14.
Part 19 Accounting and Settlement
§ 67-5-1901. Trustee's bond.
  1. (a) The trustee shall, before the county clerk or county mayor, at the time of executing bonds, take and subscribe the following oath, in addition to the oath now prescribed by law, viz.:
    1. I do solemnly swear that I will faithfully collect and account for all taxes for my county, or cause the same to be done, according to law, and that I will use all lawful means in my power to find out and assess such property as may not have been assessed for taxation in my county, and return a list of the same on settlement.
  2. (b) The trustee shall be bonded in accordance with § 8-11-103.
History (10)
  • Code 1858, § 600 (deriv. Acts 1839, 1840, ch. 160, § 6)
  • Code 1858, § 602
  • Acts 1875, ch. 91, § 2
  • Acts 1911, ch. 46, § 1
  • Shan., §§ 860-864
  • mod. Code 1932, §§ 1541-1544a
  • T.C.A. (orig. ed.), §§ 67-1401 — 67-1405
  • Acts 1989, ch. 591, § 112
  • 1993, ch. 315, § 4
  • 2003, ch. 90, § 2.
§ 67-5-1902. Monthly settlement and annual statement.
  1. (a) On or before the tenth day in each month, the trustee shall report to and make settlement for all taxes collected during the preceding month, with the county mayor and with the financial agent or treasurer of each municipality, and pay over to the same the amounts shown by the respective settlements to be due each.
    Backlinks (1)
  2. (b)
    1. (1) The trustee shall make a full and complete financial report on or before the first Monday in September, for the year ended June 30, of the condition of such trustee's office. This annual financial report shall be filed with the county mayor and with the county clerk who shall provide a copy of this report to each member of the county legislative body on or before the next meeting of the county legislative body. This shall be the same report as required pursuant to § 5-8-505.
    2. (2) The trustee shall not be allowed any commission when the trustee fails to make such filing, and in the event commissions are allowed when the filing is not made, any citizen and taxpayer of the county may bring suit against the trustee and the trustee's bondspersons and recover for the use of the state and county all commissions thus illegally paid or allowed. The trustee shall not forfeit and lose the trustee's commission, and commission shall not be recovered from the trustee when allowed or paid, unless it shall appear that the trustee failed or refused to make the filing, willfully with full knowledge of the purport of this part, for the purpose of defrauding the state, county or municipality.
    3. (3) It is the duty of the county mayor to submit a copy of this settlement, showing all debits and credits, to the county legislative body at the following term for inspection, which shall be entered upon the minutes of the county legislative body.
History (11)
  • Acts 1907, ch. 602, §§ 68, 70
  • 1913, ch. 34, § 1
  • Shan., §§ 914-916a1
  • Code 1932, §§ 1614-1620
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), §§ 67-1406 — 67-1411
  • Acts 1991, ch. 484, § 3
  • 1993, ch. 315, § 5
  • 2003, ch. 90, § 2
  • 2009, ch. 346, §§ 1, 2.
§ 67-5-1903. Annual report of delinquent taxes and double assessments.
  1. (a)
    1. (1) Annually, at the July meeting of the county legislative body, the trustee shall present a report to the county legislative body of all delinquent taxes and double assessments in the county. This report shall be verified by affidavit of the trustee and filed with the county clerk.
    2. (2) The report shall be spread upon the minutes of the county legislative body and municipality, respectively.
  2. (b)
    1. (1) The county legislative body shall proceed to examine the report, and shall allow the trustee a credit for such taxes so reported insolvent or delinquent and for double assessments, as it may be satisfied remain uncollected without the default of the trustee, and no more.
    2. (2) The county legislative body shall not allow the trustee a credit for any item on the report, even though duly sworn to by the trustee, if, after examining each credit, the county legislative body has knowledge or information showing the item to be inaccurate.
  3. (c) A list of such allowances shall be made out and certified by the county clerk and transmitted to the proper authorities of the state, county and municipality, respectively.
  4. (d) All of the items for which the county legislative body shall not allow a credit shall be charged against the trustee; and, notwithstanding the county legislative body may have allowed the trustee credits, such acts shall not operate as an estoppel in the event that it should afterwards appear that such credit was improperly allowed; provided, that no such items for which the county legislative body shall have allowed credit shall be charged against or collected from any surety on the bond of any such trustee.
  5. (e) The report referred to in this section must not include delinquent taxes that have been delivered by the trustee to the delinquent tax attorney for the filing of court actions to collect the taxes.
Backlinks (1)
History (8)
  • Acts 1907, ch. 602, § 69
  • Shan., §§ 922-922a5
  • mod. Code 1932, §§ 1627-1632
  • Acts 1933, ch. 95, § 1
  • C. Supp. 1950, § 1632
  • T.C.A. (orig. ed.), §§ 67-1413 — 67-1416
  • Acts 1987, ch. 346, §§ 12, 13
  • 2019, ch. 170, § 2.
§ 67-5-1904. Credits to trustee on settlement with county.
  1. The trustee, on settlement of the trustee's accounts with the county mayor, shall be entitled to the following credits:
    1. (1) For the trustee's commissions; and
    2. (2) For all legal disbursements.
History (7)
  • Code 1858, §§ 530-532
  • Shan., §§ 931-933
  • mod. Code 1932, §§ 1646-1648
  • T.C.A. (orig. ed.), §§ 67-1421 — 67-1423
  • impl. am. Acts 1978, ch. 934, § 24
  • 2003, ch. 90, § 2
  • T.C.A., § 67-5-1905.
Part 20 Delinquent Taxes
§ 67-5-2001. Deputies collect delinquent taxes. [Effective on January 1, 2026. See the version effective until January 1, 2026.]
  1. (a)
    1. (1) After taxes become delinquent, the county trustee shall have power to appoint such deputies as may be necessary for the collection of the taxes, and in such cases the county trustee shall furnish the deputy with a list of the delinquent taxpayers, with the description of the property assessed against each and the amount of taxes due from each.
    2. (2) In cases involving delinquent taxes assessed against real property, such list shall identify the current owner of such property and the owner's last known mailing address, if such owner can easily be identified and, in those cases, shall not identify any former owners.
    3. (3) Nothing in this subsection (a) shall be construed as in any manner affecting the liability of the current owner or any former owner.
    4. (4) The county trustee shall receive no compensation for making out the delinquent lists for the officers as provided.
  2. (b) The official bond of the county trustee shall be liable and be held to cover the official acts of such deputy trustees, constables and deputy sheriffs, to whom delinquent tax lists may be furnished by the county trustee, but the county trustee shall have the power and authority, before turning over to such officers such delinquent lists, to require of them bond in such sum as the county trustee may deem appropriate, conditioned upon the faithful performance of their duties and for full and complete settlement of all sums collected by them upon such delinquent tax lists, which bonds shall be payable to the county trustee and upon which the county trustee shall have a right of action for any default of such officers.
  3. (c) All lists shall be returned by such officer on or before January 1.
  4. (d)
    1. (1) This subsection (d) applies to a county trustee, municipal tax collector, or taxing entity qualifying to accept partial payments of delinquent property taxes.
    2. (2) Notwithstanding another law or private act to the contrary, a county trustee, municipal tax collector, or taxing entity to whom this subsection (d) applies may accept partial payments of delinquent property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers, or ACH credits. If the entire amount of delinquent taxes due is not paid prior to the date the trustee, tax collector, or taxing entity delivers the delinquent tax lists to the delinquent tax attorney, then the entire property is subject to the tax lien and enforcement by a tax sale or other legally authorized procedures.
    3. (3) At least thirty (30) days before the county trustee, municipal tax collector, or taxing entity seeks to begin accepting partial payments of delinquent property taxes, the county trustee, municipal tax collector, or taxing entity shall file a plan with the comptroller of the treasury. The comptroller must acknowledge the receipt of the plan prior to its implementation. The plan must contain the following:
      1. (A) A description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes;
      2. (B) A statement indicating that funds received as partial payments on delinquent property taxes reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on the pro-rata basis as described in subdivision (d)(4);
      3. (C) A statement indicating whether such a process of collecting delinquent property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and
      4. (D) Documentation of the internal controls that ensure all delinquent property tax payments are being recorded and accounted for as required by law.
    4. (4) For purposes of this section, partial payments of delinquent property taxes must be applied on a pro-rata basis to the delinquent property tax, interest, statutory fees, and court costs due, as follows:
      1. (A) The delinquent property taxes due prior to the partial payment must be reduced by the amount of the partial payment multiplied by the quotient of delinquent property taxes due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment;
      2. (B) The application of payment of interest on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the interest due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment;
      3. (C) The application of payment of statutory fees on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the fees due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment;
      4. (D) The application of payment of court costs on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the court costs due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; and
      5. (E) A rounding difference between the total of the individual applications of amounts due and the partial payment amount may be applied to any of the amounts due to make the total of the individual applications equal to the partial payment amount.
    5. (5) The comptroller, in consultation with the Tennessee county trustee's association, shall develop guidelines for the implementation of plans for the acceptance of partial payments of delinquent property taxes.
    6. (6) The delinquent date for property taxes and interest applicable to delinquent property taxes is not affected by application of a partial payment system established in the county.
    7. (7) After a partial payment is applied to delinquent property taxes and interest in accordance with subdivision (d)(4), interest applies only to the amount of delinquent property taxes remaining due.
    8. (8) If a partial payment of delinquent property taxes is accepted, then the partial payment does not release the tax lien on the property upon which the taxes were assessed.
    9. (9) This subsection (d) does not authorize a clerk of a court in which a proceeding is pending, to accept a partial payment of delinquent taxes, interest, or court costs, except pursuant to part 28 of this chapter, § 67-5-2003(g)(5), or a payment distribution plan approved in a bankruptcy proceeding. As used in this subdivision (d)(9), “proceeding” has the same meaning as defined in § 67-5-2502(c)(1)(D).
Backlinks (2)
History (12)
  • Acts 1907, ch. 602, § 49
  • Shan., §§ 880, 881, 883, 884
  • Acts 1923, ch. 77, § 4
  • Shan. Supp., § 913b7
  • mod. Code 1932, §§ 1565, 1567, 1568, 1581
  • Acts 1939, ch. 198, §§ 1, 2
  • C. Supp. 1950, §§ 1567, 1568
  • Acts 1978, ch. 673, § 1
  • T.C.A. (orig. ed.), §§ 67-1302, 67-1303, 67-1312
  • Acts 1984, ch. 675, § 3
  • 2011, ch. 160, § 1
  • 2024, ch. 913, § 1.
§ 67-5-2001. Deputies collect delinquent taxes. [Effective until January 1, 2026. See the version effective on January 1, 2026.]
  1. (a)
    1. (1) After taxes become delinquent, the county trustee shall have power to appoint such deputies as may be necessary for the collection of the taxes, and in such cases the county trustee shall furnish the deputy with a list of the delinquent taxpayers, with the description of the property assessed against each and the amount of taxes due from each.
    2. (2) In cases involving delinquent taxes assessed against real property, such list shall identify the current owner of such property and the owner's last known mailing address, if such owner can easily be identified and, in those cases, shall not identify any former owners.
    3. (3) Nothing in this subsection (a) shall be construed as in any manner affecting the liability of the current owner or any former owner.
    4. (4) The county trustee shall receive no compensation for making out the delinquent lists for the officers as provided.
  2. (b) The official bond of the county trustee shall be liable and be held to cover the official acts of such deputy trustees, constables and deputy sheriffs, to whom delinquent tax lists may be furnished by the county trustee, but the county trustee shall have the power and authority, before turning over to such officers such delinquent lists, to require of them bond in such sum as the county trustee may deem appropriate, conditioned upon the faithful performance of their duties and for full and complete settlement of all sums collected by them upon such delinquent tax lists, which bonds shall be payable to the county trustee and upon which the county trustee shall have a right of action for any default of such officers.
  3. (c) All lists shall be returned by such officer on or before January 1.
  4. (d)
    1. (1) Notwithstanding any general law or any private act to the contrary, the county trustee may accept partial payments of delinquent property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers or ACH credits. If the entire amount of delinquent taxes due is not paid prior to the date the trustee delivers the delinquent tax lists to the delinquent tax attorney, the entire property shall be subject to the tax lien and enforcement by a tax sale or other legally-authorized procedures.
    2. (2) Prior to any county trustee accepting partial payment of delinquent property taxes, the county trustee shall file a plan with the comptroller of the treasury at least thirty (30) days prior to the acceptance of the payments. The plan shall indicate that the county trustee's office has the accounting system technology to implement a program for partial payment of delinquent property taxes. The plan shall also indicate whether the program will be implemented within the existing operating resources of the office or indicate prior approval of the county legislative body if additional operating resources are needed.
    3. (3) The delinquent date for property taxes and penalties and interest applicable to delinquent property taxes shall not be affected by application of a partial payment system established in the county.
    4. (4) Penalties and interest shall apply only to the amount of delinquent property taxes remaining due.
    5. (5) If a partial payment of delinquent property taxes is accepted, the partial payment does not release the tax lien on the property upon which the taxes were assessed.
Backlinks (2)
History (11)
  • Acts 1907, ch. 602, § 49
  • Shan., §§ 880, 881, 883, 884
  • Acts 1923, ch. 77, § 4
  • Shan. Supp., § 913b7
  • mod. Code 1932, §§ 1565, 1567, 1568, 1581
  • Acts 1939, ch. 198, §§ 1, 2
  • C. Supp. 1950, §§ 1567, 1568
  • Acts 1978, ch. 673, § 1
  • T.C.A. (orig. ed.), §§ 67-1302, 67-1303, 67-1312
  • Acts 1984, ch. 675, § 3
  • 2011, ch. 160, § 1.
§ 67-5-2002. Publication of delinquent tax lists.
  1. (a) The county trustee may cause advertisement to be made annually of the delinquent tax lists in one (1) or more newspapers of general circulation, published in the county, listing the name of the delinquent taxpayer and the amount of the taxpayer's delinquency on each item of taxable property, the costs for which shall be borne by the county, not to exceed the usual and customary legal advertising rate.
  2. (b) The trustee publishing the delinquent tax lists shall give the lists to papers at least twenty (20) days before being turned over to the tax attorney. Failure of any taxpayer's name to appear on a delinquent tax list publication or incorrect information shall not be a defense to any suit for tax collection.
History (15)
  • Acts 1947, ch. 214, §§ 1, 2, 4
  • 1949, ch. 104, § 1
  • mod. C. Supp. 1950, § 1574
  • Acts 1951, ch. 14, § 1
  • 1951, ch. 59, § 1
  • 1951, ch. 64, § 1
  • 1959, ch. 184, § 1
  • 1976, ch. 725, § 1
  • Private Acts 1977, ch. 130, § 1
  • Acts 1982, ch. 716, § 1
  • 1983, ch. 42, § 1
  • T.C.A., § 67-1304
  • Acts 1984, ch. 587, § 1
  • 1987, ch. 346, §§ 9-11
  • 1993, ch. 315, § 21.
§ 67-5-2003. Collection by distraint and sale of personalty — Actions at law or garnishment.
  1. (a) All delinquent personal property taxes, including but not limited to, public utility personal property taxes, may be immediately collected by the county trustee or collector, with the assistance of the delinquent tax attorney selected pursuant to § 67-5-2404 or § 67-5-2001, if such delinquent tax attorney's assistance is requested by the trustee or collector. The tax books in the hands of the trustee or collector and the delinquent lists furnished to deputy trustees or the collector's deputies, or the sheriff or constables in any county where the taxpayer or any property liable for the taxes may be found, or the delinquent tax attorney, shall have the force and effect of a judgment and execution from a court of record, and shall be ample authority for the officers or delinquent tax attorney having such taxes for collection to distrain and sell a sufficient amount of the personal property to satisfy the delinquent taxes, interest, penalties, costs and attorneys' fees. However, leased personal property assessed to a lessee shall not be distrained and sold pursuant to this section.
  2. (b) These delinquent personal property taxes may be immediately collected by distraint (distress warrant) and sale of any personal property liable therefor, by suit at law against the taxpayer, and/or by garnishment.
  3. (c) Prior to distraint (seizure) of any personal property, the trustee, deputy trustee or delinquent tax attorney shall give not less than ten (10) days' written notice of the intended distraint (seizure) by either:
    1. (1) Delivering such notice in person;
    2. (2) Leaving such notice at the dwelling place or usual place of business of the taxpayer; or
    3. (3) By mailing such notice to the taxpayer's last known address.
  4. (d) Ten (10) days' notice of the time and place of any sale of personalty shall be given by advertisement posted in three (3) public places in the county, one (1) of which shall be at the courthouse door. In addition, at least ten (10) days' written notice of the sale shall be given to the taxpayer by any of the methods outlined in subsection (c).
  5. (e) The officers shall in all cases have the personal property present when sold and shall be allowed to retain in addition to the taxes, interest, penalties, costs, and attorney's fees, all commissions, costs and necessary expenses of removing and keeping the property distrained (expenses of seizure, preservation and storage of the property).
  6. (f) Any delinquent tax attorney assisting the trustee shall be allowed attorney's fees, computed as are attorney's fees for collection of real property taxes in § 67-5-2410.
  7. (g)
    1. (1) The trustee or collector may turn over the delinquent list thirty (30) days after such taxes become delinquent to the delinquent tax attorney, selected pursuant to § 67-5-2404 or § 67-5-2001, to file suit to collect delinquent personal property taxes, as part of any pending suit to collect real property taxes, as part of a separate mass lawsuit pursuant to the procedures set forth in this chapter, or as a separate lawsuit. Such can be done without having first issued a distress warrant.
    2. (2) In the event the trustee or collector turns over the delinquent list prior to the mailing of the notice pursuant to § 67-5-2402, the trustee or collector shall be required to forward written notice by first class mail to the last known property owner at least ten (10) days before the delinquent list is turned over to the delinquent tax attorney.
    3. (3) If the procedure in this subsection (g) is used, the trustee or collector is also authorized, as with real property tax records, to turn over records to the clerk of court.
    4. (4) A judgment of personal liability for unpaid personal property taxes may be enforced as any other judgment, through garnishment, execution, or otherwise, and may also be recorded as a lien in one (1) or more offices of registers of deeds. Any judgment recorded pursuant to this subdivision (g)(4) shall be subject to the same requirements and attributes of judgment liens, including durability, priority, and renewal, and shall thereafter no longer be subject to the statute of limitation established by this chapter for unpaid property taxes. However, the rates of penalty and interest shall continue as established by this chapter, and upon recording of such judgment, the tax entity shall retain the alternative of enforcing its tax lien against the assessed personal property according to the priority and procedures set forth in this chapter.
    5. (5) Following entry of a personal judgment for delinquent personal property taxes, a tax entity may enter into a written agreement for the payment of such judgment in installments, pursuant to § 26-2-218, on such terms as the tax entity may deem appropriate; provided, that such agreement must provide for payment of all taxes, interest, penalties, fees, and costs in full, including any interest and penalties that accrue during the term of the installment payments.
      Backlinks (1)
    6. (6) Any tax entity may file suit to collect any other taxes it is authorized by law to collect thirty (30) days after such taxes become delinquent, as part of any pending suit to collect property taxes, or as a separate mass lawsuit pursuant to the procedures set forth in this chapter.
  8. (h) If any individual, partnership, joint venture, corporation or other legal entity has personal property, tangible or intangible, assessable by the county assessor or other authority, that is sold pursuant to title 47, chapter 9, the party possessing the security interest shall withhold and pay from the proceeds of the sale an amount sufficient to satisfy the personal property taxes assessed under § 67-5-2101 and subject to § 67-5-1805. A secured party selling the property who fails to withhold and pay such amount shall be held to be personally liable for such amount to the trustee or other collecting official to which these personal property taxes are due, and any action to enforce this subsection (h) must commence against the secured party as a named defendant within four (4) years of the assessment date. Any amount paid by or collected from a secured party pursuant to this subsection (h) shall reduce by that same amount the balance due by the taxpayer to the trustee or other collecting official who has been paid, and such amount shall also become a new obligation of payment by the delinquent taxpayer to the secured party, regardless of contractual limitations to the contrary. The application of § 67-5-1805 to a secured party, and the mechanisms described in this subsection (h), shall be construed as remedial legislation designed to clarify and bring uniformity to existing law regarding the procedure of the apportionment and collection of taxes pursuant to this subsection (h).
    Backlinks (9)
  9. (i) Delinquent public utility taxes and taxes owed by modern market telecommunications providers shall not be immediately collected under this section if the local assessment includes any real property. The trustee or collector shall confirm with the comptroller of the treasury whether such taxpayer's local assessment includes any real property.
Backlinks (1)
History (13)
  • Acts 1907, ch. 602, § 49
  • Shan., §§ 877a1, 877a2
  • Acts 1923, ch. 77, § 3
  • Shan. Supp., § 913b2
  • mod. Code 1932, §§ 1574-1576
  • C. Supp. 1950, § 1574
  • T.C.A. (orig. ed.), §§ 67-1305 — 67-1307
  • Acts 1987, ch. 346, §§ 6, 17
  • 1990, ch. 1075, § 11
  • 2010, ch. 1007, § 2
  • 2013, ch. 353, §§ 9-11
  • 2015, ch. 414, § 4
  • 2017, ch. 490, § 10.
§ 67-5-2004. Collection by garnishment — Retention of collection agent.
  1. (a) The officers to whom the delinquent lists are so delivered may proceed against the delinquent taxpayers by garnishment proceedings, returnable before any general sessions court in the district where the delinquent resides, or to any court, which garnishment shall run in the name of the state for its own behalf and for the use and benefit of the county.
  2. (b)
    1. (1)
      1. (A) The county trustee may proceed against a taxpayer who is delinquent in the payment of tangible personal property taxes by retaining an agent to collect such delinquent tangible personal property taxes, plus interest authorized by law, reasonable costs, and legal fees, provided that the collection activities are in compliance with this subsection (b).
      2. (B) If a collection agent is retained, the county trustee shall utilize the bidding procedures applicable to the county to select and retain the agent and shall notify the county legislative body of such action. The agent's collection fee shall not exceed thirty percent (30%) of tangible personal property taxes due, and the fee must be added to the total amount of delinquent tangible personal property taxes owed, plus interest authorized by law, reasonable costs, and legal fees.
      3. (C) A contract or other arrangement entered into to retain a collection agent under this subsection (b) shall not provide that the compensation paid to the agent is conditioned on increasing tangible personal property tax collections in the county involved. A contract found to contain such language is void and unenforceable.
      4. (D) An agent shall not communicate with the delinquent taxpayer or proceed upon the delinquent taxpayer's property unless authorization to take such action is provided in the contract. The agent shall not institute or undertake a collection or related activity in violation of the Tennessee Collection Service Act, compiled in title 62, chapter 20.
      5. (E) An agent retained pursuant to this subsection (b) must be licensed and in good standing with the Tennessee collection service board.
      6. (F) All foreclosures, seizures, litigation, or other judicial or non-judicial proceedings to enforce a tax lien or any similar rights to collect delinquent tangible personal property taxes, plus interest authorized by law, reasonable costs, and legal fees, must be in the name of the taxing jurisdiction as the plaintiff or claimant.
      7. (G) An agent who also performs audit procedures shall not be retained to collect delinquent tangible personal property taxes under this section.
      8. (H) This subsection (b) and the contract authorized in this subsection (b) does not repeal or modify a provision of this chapter.
    2. (2) [Deleted by 2024 amendment.]
History (7)
  • Acts 1923, ch. 77, § 4
  • Shan. Supp., § 913b3
  • Code 1932, § 1577
  • T.C.A., § 67-1308
  • Acts 2021, ch. 522, § 1
  • 2024, ch. 654, § 1
  • 2024, ch. 967, § 24.
§ 67-5-2005. Delinquent municipal real property taxes — Tax sale.
  1. (a) When a municipal corporation uses the county trustee or the delinquent tax attorney to collect delinquent real property taxes of the corporation, the proper officers of the corporation shall certify the delinquent taxes to the county trustee by April 1 of the second calendar year after the taxes become due.
  2. (b) The property so certified to the county trustee on which the municipal taxes are delinquent shall be advertised and sold by the county trustee at the same time and in the same manner and as a part of the county trustee's other sales of property for state and county taxes.
    Backlinks (1)
  3. (c) The proceeds of such sale shall be disposed of and the property may be redeemed as elsewhere provided in this title with reference to property sold for the collection of state and county taxes.
  4. (d) The power of each municipal corporation under its charter to collect its own taxes and delinquent taxes is preserved. If a municipal corporation has the power under its charter to collect its own taxes, but the charter makes no provision for the collection of delinquent taxes, the municipal corporation may provide by ordinance for the collection of its delinquent taxes. Nothing in this subsection (d) may be construed as limiting the authority of the county trustee to collect both current and delinquent county and municipal property taxes under this title.
Backlinks (1)
History (7)
  • Acts 1907, ch. 602, § 41
  • 1909, ch. 542, § 1
  • Shan., § 865
  • mod. Code 1932, § 1545
  • T.C.A., § 67-1319
  • Acts 1997, ch. 367, §§ 1, 2
  • 1998, ch. 827, § 1.
§ 67-5-2006. Return of delinquent tax list — Settlement.
  1. (a)
    1. (1) The sheriff, constable and deputy trustee having delinquent lists for collection shall make partial settlement with the trustee whenever required by the trustee, and shall, on or before January 1 following the receipt of the delinquent tax lists, make final settlement with the trustee and return the lists showing in the return what disposition was made of each item of taxes therein set out, and the reason for not collecting items remaining unpaid, and sign the return in the sheriff's, constable's or deputy trustee's official capacity.
    2. (2) The officer making the return shall receive no additional compensation for making it.
  2. (b) On January 1, the constable or deputy trustee shall make a final settlement of the taxes in the constable's or deputy trustee's hands for collection, and in the settlement shall be charged with the aggregate amount of taxes in the constable's or deputy trustee's hands for collection, and be credited with the amount collected and accounted for, with errors, double and illegal assessments, and with such insolvent or other taxes as such officer shall show could not have been collected by law after diligent effort on such officer's part.
  3. (c) It is the duty of the collecting officers to make return of the delinquent lists to the county trustee, on or before January 1 of each year, and the officer failing to make such a return on or before January 1, as provided in this subsection (c), shall be presumed to have collected all the taxes on the lists delivered to such officer, and shall account for and pay the taxes to the trustee.
  4. (d) Any balance found due on such settlements may be recovered of the constable or deputy trustee and such person's sureties on such person's bond, by suit or motion, on five (5) days' notice, in any court of record, instituted by the county trustee or any agent or district attorney general of the state.
  5. (e)
    1. (1) No credit shall be allowed the county trustee, by way of releases, until the delinquent lists have been returned to the county trustee's office by the collecting officer.
    2. (2) After the return of such lists by the officer to the county trustee's office, the county legislative body may allow the trustee credit for erroneous assessments and double taxation, but no credit shall be allowed for any item due from insolvent delinquent land taxpayers, and such taxes shall remain a charge upon the books of the county trustee until the county trustee complies with the requirements of § 67-5-2406.
Backlinks (1)
History (8)
  • Acts 1907, ch. 602, § 49
  • Shan., §§ 885a3, 885a4
  • 1923, ch. 77, §§ 4, 5
  • Shan. Supp., §§ 913b8, 913b9
  • mod. Code 1932, §§ 1569, 1570, 1582-1584
  • Acts 1939, ch. 198, § 3
  • C. Supp. 1950, § 1569
  • T.C.A. (orig. ed.), §§ 67-1311, 67-1313, 67-1314, 67-1318, 67-1321.
§ 67-5-2007. Collection fees and costs.
  1. (a)
    1. (1) The officer making such collection shall receive no additional fees for making delinquent collections.
    2. (2) The only compensation shall be salaries paid to deputies in accordance with title 8, chapter 20, or to trustees in accordance with §§ 8-24-102, 8-24-106, and 8-24-107.
    3. (3) Postage and other office expenses incurred by the trustee or the trustee's deputies incidental to the collection of delinquent taxes shall be paid from the fees of the trustee.
  2. (b) In case of a levy or garnishment proceeding, officers shall receive, in addition to the compensation provided in subdivision (a)(2), the fees allowed by law in such cases, the fees to be taxed as a part of the costs of collection and to be paid by the delinquent.
  3. (c) Neither the state nor county shall be liable for costs where no collection is made by the officer.
Backlinks (1)
History (5)
  • Acts 1923, ch. 77, § 4
  • Shan. Supp., §§ 913b4-913b6
  • Code 1932, §§ 1578-1580
  • Acts 1953, ch. 150, § 1
  • T.C.A. (orig. ed.), §§ 67-1315 — 67-1317.
§ 67-5-2008. Payment of tax after return of delinquent tax list.
  1. From January 1 until February 1, and until the bill is filed to collect delinquent taxes, delinquent taxes may be received at the office of the county trustee who shall, at the same time, collect the penalties and interest.
History (4)
  • Acts 1923, ch. 77, § 6
  • Shan. Supp., § 913b11
  • mod. Code 1932, § 1585
  • T.C.A. (orig. ed.), § 67-1320.
§ 67-5-2009. Record of levies.
  1. The trustee shall keep a record of all levies made by the trustee or deputies and of proceedings under such levies.
History (4)
  • Acts 1907, ch. 602, § 49
  • Shan., § 881a1
  • Code 1932, § 1566
  • T.C.A. (orig. ed.), § 67-1309.
§ 67-5-2010. Interest — Delinquent taxes.
  1. (a)
    1. (1) To the amount of tax due and payable, interest of one and one-half percent (1.5%) shall be added on March 1, following the tax due date and on the first day of each succeeding month, except as otherwise provided in regard to municipal taxes. Any county having a population in excess of eight hundred thousand (800,000), according to the 1980 federal census or any subsequent federal census establishing tax due dates other than the first Monday in October in each year, in accordance with § 67-1-701(a), shall have the authority to establish the date that interest shall begin to accrue as the date of delinquency in lieu of March 1.
      Backlinks (1)
    2. (2) The rate of interest as provided in this section may be reduced to an amount of not less than twelve percent (12%) per annum in the aggregate, upon approval by a two-thirds (⅔) vote of the appropriate local governing body that levied such taxes, in any county having a population of not less than twenty-four thousand six hundred (24,600) nor more than twenty-four thousand seven hundred (24,700), according to the 1980 federal census or any subsequent federal census.
  2. (b) In all instances in which current municipal taxes are collected by the county trustee, the following provisions and rules for the collection of delinquent taxes that may be due to the municipalities and none other shall prevail and obtain, anything in this chapter to the contrary notwithstanding:
    1. (1) The taxes levied and assessed by such municipalities shall become due and delinquent on the date as now provided by existing laws; and
    2. (2) If such municipal taxes are not paid on or before the date fixed for the delinquencies thereof, to the amount of tax due and payable, interest of one and one-half percent (1.5%) shall be added on March 1, following the tax due date and on the first day of each succeeding month.
Backlinks (5)
History (5)
  • Acts 1988, ch. 526, § 6
  • 2013, ch. 370, § 1
  • 2014, ch. 883, § 4
  • 2017, ch. 299, § 4
  • 2022, ch. 900, § 13.
§ 67-5-2011. Military personnel — Due date of taxes.
  1. (a) No property tax owed by a person in the armed forces of the United States, or called into active military service of the United States, as defined in § 58-1-102, from a reserve or national guard unit, shall be due until one hundred eighty (180) days following the conclusion of hostilities in which such person is actually engaged outside the United States or one hundred eighty (180) days after such person is transferred from the theater of operations of such hostilities, whichever is sooner.
  2. (b) A person claiming this delay shall apply to the county trustee on or before the day the tax becomes delinquent, and present copies of official orders or other satisfactory proof of such person's deployment and stationing outside the United States during a period of hostilities.
  3. (c) The trustee shall give notice of approved applications to city collecting officials and to the clerk and master of the chancery court.
  4. (d) This section shall expressly apply to personnel stationed outside the United States during Operation Enduring Freedom or other hostilities where the military personnel are entitled to combat compensation as determined by the United States department of defense.
Backlinks (1)
History (3)
  • Acts 2002, ch. 664, § 1
  • 2003, ch. 87, § 1
  • 2004, ch. 800, §§ 3, 4.
§ 67-5-2012. Election to sell tax receivables.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1) “Tax collector” means, in the case a taxing agency that is a county or for which a county acts as its tax collector, the county trustee; and, in the case of a taxing agency that is a governmental entity that, under existing laws, collects its own taxes, assessments, or other charges secured by real property, the officer of the taxing agency responsible for collecting the taxes or charges;
    2. (2) “Tax receivable” means the right to receive revenue from a tax, assessment, or other charge secured by a lien on real property that has become delinquent in whole or in part, including all penalties and interest on the taxes, assessments, or other charges accrued pursuant to law; and
    3. (3) “Taxing agency” means:
      1. (A) Any county having a population of not less than three hundred eighty thousand (380,000), according to the 2000 federal census or any subsequent federal census; or
      2. (B) Any city, town, taxing district, municipal corporation, political subdivision or any other state or local governmental entity that is authorized to assess taxes on real property that is wholly or partially within a county described in subdivision (a)(3)(A).
  2. (b) Any taxing agency, by resolution of its governing body, may elect to sell its tax receivables to public or private parties. In the case of a taxing agency that is a county or for which a county acts as its tax collector, prior to the governing body electing to sell its tax receivables, the county trustee must certify to the governing body the trustee's consent to administer the program; provided, however, that upon a two-thirds (⅔) vote of the legislative body of the taxing agency, this certification shall not be necessary. All interest and penalties imposed by law shall continue to accrue on the unpaid original amount of the tax in the same manner as if the tax receivables had not been sold. Sales of tax receivables may be by individual parcel or in bulk. The taxing agency may establish such criteria for eligible purchasers of tax receivables and may make such sales pursuant to negotiated sale for such prices as the taxing agency determines to be in the best interest of the taxing agency.
  3. (c) A taxing agency may enter into purchase and sale agreements for the sale of tax receivables, which purchase and sale agreements may, consistent with this section, contain such terms, covenants, representations and warranties as, in the judgment of the taxing agency, shall be necessary or desirable. The agreement may require the taxing agency to repurchase a tax receivable, or to substitute another tax receivable of equivalent value, for prices and under conditions specified in the agreement. In the case of a taxing agency for which the applicable county trustee acts as tax collector, upon the execution of a purchase and sale agreement for the sale of tax receivables by the appropriate officer of the taxing agency, a taxing agency may enter into an agreement with the county trustee to act as the taxing agency's agent in connection with the administration of the purchase and sale agreements and of the related tax receivables.
  4. (d) The order of priority of the application of collections of tax receivables with respect to a particular property shall not be changed by reason of the sale of all or a portion of the tax receivables. All amounts collected on account of the tax receivables shall be promptly paid by the taxing agency to the holder of the tax receivable; provided, however, that the taxing agency shall have the right to retain all amounts that are charged and collected as trustee's fees, attorney's fees and costs of collection or that are otherwise collected in excess of the amount due on the tax receivables sold.
  5. (e) Unless provided otherwise in the purchase and sale agreement with respect to tax receivables sold:
    1. (1) The amount bid in a tax sale on behalf of the governmental entities for which the taxes are owing shall include the amount of all tax receivables sold, including the costs incident to the collection thereof;
    2. (2) In the event that the property is acquired by a governmental entity in a tax sale and is not redeemed by the end of the redemption period, then the governmental entity shall promptly offer the property for sale to private purchasers by appropriate means and shall make diligent efforts to sell the property at its reasonable market value, unless the governmental entity pays to the purchasers of the tax receivables the full amount of the tax receivables then due and unpaid;
    3. (3) After a tax sale to a governmental entity, interest pursuant to § 67-5-2010(a)(1) shall continue to accrue on any tax receivables sold until paid in full; however, under no circumstances shall the cost of redemption be greater than if the receivable had not been sold; and
    4. (4) If a governmental entity chooses to discharge, reduce, delay or otherwise compromise the payment of any tax receivables that have been sold, then the discharge, reduction, delay or compromise shall not be effective unless the government entity first pays to the purchaser of the tax receivables the amount of the tax receivable payments that have been discharged, reduced, delayed or otherwise compromised.
  6. (f) Tax receivables and the penalties and interest accrued on the tax receivables shall be exempt from taxation by any governmental entity. The real property affected by any tax receivable shall not be exempt from taxation by reason of this section.
  7. (g) It shall be the duty of the tax collector and all other state, county and municipal officers to continue to enforce the collection of tax receivables that have been sold pursuant to this section, in the same manner as if the tax receivables had not been sold. Nothing in this subsection (g) shall be construed to require of the tax collector or its officers, employees, agents or attorneys a standard of performance of their statutory or contractual duties in the collection of a tax receivable that is different from the standard of performance otherwise required of those persons.
History (3)
  • Acts 2006, ch. 881, § 1
  • 2007, ch. 58, §§ 1, 2
  • 2017, ch. 299, § 5.
§ 67-5-2013. De minimus property tax.
  1. (a) With respect to a de minimus property tax totaling less than five dollars ($5.00) as calculated for a duly assessed parcel of real property, if authorized by a private act, resolution, or ordinance levying the tax, the county trustee or other property tax collecting official may:
    1. (1) Decline to bill the tax;
    2. (2) Decline to refer the tax for further collection; or
    3. (3) Abate any penalty or interest otherwise due for late payment of the tax.
  2. (b) The tax collecting official shall maintain a list of de minimus taxes by parcel and by year, and the tax may be collected when a tax related to the same parcel is tendered for a later year; provided, that such collection is not barred by any applicable statute of limitations.
History (1)
  • Acts 2017, ch. 312, § 1.
Part 21 Tax Lien — Generally
§ 67-5-2101. Taxes on which lien based.
  1. (a) The taxes assessed by the state of Tennessee, a county, or municipality, taxing district, or other local governmental entity, upon any property of whatever kind, and all penalties, interest, and costs accruing thereon, shall become and remain a first lien upon such property from January 1 of the year for which such taxes are assessed.
    Backlinks (1)
  2. (b) In addition to the lien on property, property taxes shall become and remain a personal debt of the property owner or property owners as of January 1 of the tax year, and, when delinquent, may be collected by suit as any other personal debt. In any lawsuit for collection of property taxes, the same penalties and attorney fees shall apply as set forth in § 67-5-2410 for suits to enforce liens for property taxes. The claim for the debt and the claim for enforcement of the lien may be joined in the same complaint.
  3. (c) Each person owning an interest in a corporate entity or similar organization, including, but not limited to, limited liability companies, limited partnerships, and other entities for which the owners of the entity are accorded limited liability for debts of the entity and that is, or is stated in the records of the office of secretary of state to be, an inactive, dissolved, revoked, or otherwise terminated entity, is jointly and severally liable with the entity, each other, and such other persons as may be liable, for all unpaid property taxes levied against parcels assessed to the entity, and such interest, attorney fees, and other court costs as may accrue on the same.
Backlinks (3)
History (9)
  • Acts 1907, ch. 602, § 31
  • Shan., § 757
  • mod. Code 1932, § 1329
  • Acts 1974, ch. 644, § 1
  • 1974, ch. 771, § 13
  • T.C.A., § 67-1801
  • Acts 1993, ch. 315, § 22
  • 2015, ch. 414, § 5
  • 2024, ch. 967, § 18.
§ 67-5-2102. Property subject to lien.
  1. (a) This lien shall extend to each and every part of all tracts or lots of land, and to every species of taxable property, notwithstanding any division or alienation thereof, or assessing or advertising the same in the name of persons not actually owners thereof at the time of the sale, or though the owner be unknown. However, there shall be no lien against leased personal property assessed to a lessee.
  2. (b) Such taxes shall be a lien upon the fee in the property, and not merely upon the interest of the person to whom the property is or ought to be assessed, but to any and all other interests in the property, whether in reversion or remainder, or of lienors, or of any nature whatever. Notwithstanding this subsection (b), the lien does not attach to an easement appurtenant upon property that is a servient estate or to an easement in gross that was assessed separately from the property by either the county assessor of property or the office of state assessed properties in the office of the comptroller of the treasury.
  3. (c) Where there is assessable under the law a leasehold interest in real estate or any improvements on real estate, under which such real estate is exempt from taxation in the hands of and to the owner thereof, the taxes assessed against such leasehold interest or interest in improvements on such exempt real estate shall be a lien only upon such leasehold interest or interest in improvements, and not upon the interest of the owner of the fee or the remainder or reversion of the fee.
  4. (d) In all cases where a penalty is incurred for exercising a privilege without license, the interest that the person thus exercising the privilege without license has in the building shall be liable for the penalty, superior to all other claims; but the interest of the owner of the building shall not be liable, unless the owner is privy to the violation of law.
  5. (e) The distress warrant authorized by law to be issued in such cases, if proceeded with to sale, shall operate as a writ of possession against the party exercising the privilege, without license.
History (9)
  • Code 1858, § 555 (deriv. Acts 1803, ch. 3, § 3
  • 1813, ch. 98, § 3)
  • Acts 1870, ch. 96, §§ 2, 3
  • 1907, ch. 602, §§ 1, 31
  • Shan., §§ 758, 758a1, 758a3, 759, 760
  • Code 1932, §§ 1330, 1331, 1333-1335
  • T.C.A., (orig. ed.), §§ 67-1802, 67-1803, 67-1805 — 67-1807
  • Acts 1990, ch. 1075, § 12
  • 2018, ch. 863, § 1.
§ 67-5-2103. Nature of proceedings.
  1. (a) The whole proceeding for the enforcement of property tax liens, from the assessment to sale for delinquency, shall be a proceeding in rem, and shall not be invalid on account of such land having been listed or assessed for taxation to anyone as owner or owners or to any person or persons not the owner or owners or to unknown owner or owners.
  2. (b) All interested persons shall be deemed to have constructive notice of the proceedings by virtue of the seizure of the parcel occurring upon the filing of a complaint for the purpose of enforcement of the first lien. However, interested persons who do not have an obligation to pay the taxes on the parcel, such as lienholders, need not be joined as parties nor served with process so long as a diligent effort to give actual notice of the proceedings, as defined in § 67-5-2502(c)(1), is made to such persons.
  3. (c) The filing of a complaint for the purpose of enforcement of the first lien provided for in § 67-5-2101, shall create a lien lis pendens as to each parcel which is included in the proceeding, during the pendency of the proceeding, affecting all subsequent owners, without the recording of any copy or abstract thereof in the office of the register of deeds.
  4. (d) The general assembly finds and determines that:
    1. (1) The collection of property taxes is an essential and necessary function of counties and municipal corporations in the state;
    2. (2) This chapter provides for a specific and comprehensive scheme for the collection of delinquent property taxes;
    3. (3) This chapter is intended to be procedural and remedial in application and, unless a contrary intent is expressed in an act amending this chapter, such amendments are also intended to be procedural and remedial in application;
    4. (4) The economy of the state has evolved from one primarily based upon the agrarian use of real property to an economy based more upon the improvement of real property by the construction of residential, commercial, and industrial structures thereon. Such improvements require the investments of significant funds and resources;
    5. (5) A purpose of this chapter is to promote and encourage the development of improvements upon real estate that have been conveyed pursuant to this chapter through the enforcement of tax liens;
    6. (6) The certainty and finality of the titles to real estate that have been conveyed pursuant to this chapter through the enforcement of tax liens is a necessary prerequisite to the development of improvements thereon; and
    7. (7) Statutes that are not consistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter should not be applicable to tax proceedings, tax liens, or the enforcement of such tax liens.
  5. (e) This chapter shall be construed liberally in favor of the certainty and finality of property titles transferred pursuant to this chapter.
  6. (f) Title 21, chapter 1, part 4, is not applicable to tax proceedings, tax liens, or the enforcement of such tax liens.
  7. (g) Sections 29-6-161 — 29-6-165 are not applicable to tax proceedings, tax liens, or the enforcement of such tax liens.
  8. (h) Chapter 1, part 18 of this title is not applicable to property tax proceedings, property tax liens, or the enforcement of such property tax liens.
  9. (i) Other statutes that are not consistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter shall not be applicable to tax proceedings, tax liens, or the enforcement of such tax liens.
  10. (j) All interested persons, as defined in this chapter, are charged with the knowledge that the parcel is subject to property taxes, which are required to be paid to the trustee or collector on an annual basis, and which taxes become a first lien on the parcel from January 1 of each year. All interested persons have an affirmative duty to inquire as to the amounts of such taxes and their payment status. Under no circumstances shall a claim that the interested party did not receive a tax bill or any prelawsuit notice constitute a valid defense to the enforcement of the lien, the personal debt for the taxes, or the amount of taxes owed, including penalty, interest, cost, and fees.
  11. (k) Section 67-1-707 does not apply to property taxes.
  12. (l) Title 35, chapter 5 does not apply to property tax proceedings, tax liens, or the enforcement of such tax liens.
  13. (m) An interested person shall not file as a defense, a counterclaim, a cross claim or for another purpose, a defense or cause of action not directly related to the tax proceeding, or a claim of a set off.
  14. (n) The failure of a defendant or interested person in a tax proceeding to have exhausted all administrative remedies bars the defendant from contesting an issue in the tax proceeding that could have been decided in such manner.
Backlinks (1)
History (8)
  • Acts 1907, ch. 602, § 31
  • Shan., § 758a2
  • Code 1932, § 1332
  • T.C.A. (orig. ed.), § 67-1804
  • Acts 2013, ch. 353, § 13
  • 2014, ch. 883, § 5
  • 2015, ch. 414, §§ 6, 7
  • 2024, ch. 967, § 23.
Part 22 Tax Lien — Receivership
§ 67-5-2201. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Delinquent tax” means a tax as defined in this section that has been due and payable for at least two (2) years or a tax that has been due and payable for at least one (1) year on real property that is vacant and abandoned pursuant to § 67-5-2701(a)(3)(D);
    2. (2) “Governmental body” means the state of Tennessee, or any county, municipality or other governmental subdivision of the state;
    3. (3) “Property” means any and all real property and all improvements thereon or used in connection therewith;
    4. (4) “Tax” means any obligation due a governmental body, which obligation is secured by a lien on real property;
    5. (5) “Tax lien” means the lien securing a tax as defined in this section; and
    6. (6) “Tax suit” means any suit brought to enforce a tax lien as defined in this section.
History (4)
  • Acts 1941, ch. 19, § 1
  • C. Supp. 1950, § 1789.7 (Williams, § 1789.1)
  • T.C.A. (orig. ed.), § 67-1901
  • Acts 2016, ch. 853, § 3.
§ 67-5-2202. Right to appointment of receiver.
  1. (a)
    1. (1) When a suit is brought or has been brought to enforce a tax lien and when such tax lien secures a delinquent tax, any governmental body having an interest in such tax lien shall have the right to have the court in which the tax suit is pending appoint a receiver to collect rents on the property subject to such tax lien.
    2. (2) This right shall exist whether or not such property is being misused, wasted, or neglected, and whether the security for such tax is adequate or not.
  2. (b) The right and matter of the appointment of receivers and of receiverships shall, in all cases, however, be within the sound discretion of the court to which application therefor may be made.
History (3)
  • Acts 1941, ch. 19, § 2
  • C. Supp. 1950, § 1789.8 (Williams, § 1789.2)
  • T.C.A. (orig. ed.), § 67-1902.
§ 67-5-2203. Residence not subject to receivership.
  1. This part does not apply to any property that is occupied by the owner as the owner's residence, including any farm connected with such residence and cultivated by the owner.
History (3)
  • Acts 1941, ch. 19, § 9
  • C. Supp. 1950, § 1789.15 (Williams, § 1789.9)
  • T.C.A. (orig. ed.), § 67-1903.
§ 67-5-2204. Intervention by governmental body not an original party.
  1. (a) Where any receivership property is subject to a tax lien securing a tax owed to a governmental body that is not a party to the receivership suit, such governmental body shall be allowed to intervene in the receivership suit.
  2. (b) Such intervention shall not affect distributions made by the receiver before such intervention, but subsequent distributions shall be made on the same basis as if the intervening party had been an original party to the receivership suit.
History (3)
  • Acts 1941, ch. 19, § 8
  • C. Supp. 1950, § 1789.14 (Williams, § 1789.8)
  • T.C.A. (orig. ed.), § 67-1904.
§ 67-5-2205. Leases by receiver — Maintenance and operating expenses.
  1. (a)
    1. (1) The receiver is authorized to rent or lease the receivership property upon such terms as may be approved by the court in which the receivership is pending.
    2. (2) Any lease thus made by the receiver shall terminate upon the termination of the receivership.
  2. (b) From any assets of the receivership, the court may authorize the payment of a reasonable premium on any surety bond required of the receiver and reasonable expenses for the maintenance, repair or improvement of the receivership property.
History (3)
  • Acts 1941, ch. 19, § 3
  • C. Supp. 1950, § 1789.9 (Williams, § 1789.3)
  • T.C.A. (orig. ed.), § 67-1905.
§ 67-5-2206. Compensation of receiver.
  1. The receiver's compensation shall be fixed by the court in which the receivership is pending, but such compensation shall not be fixed at more than five percent (5%) of the gross amount of the receipts of the receivership.
History (3)
  • Acts 1941, ch. 19, § 4
  • C. Supp. 1950, § 1789.10 (Williams, § 1789.4)
  • T.C.A. (orig. ed.), § 67-1906.
§ 67-5-2207. Attorney for receiver.
  1. (a) If the receiver should require the services of an attorney, the court shall appoint as attorney for the receiver one (1) or more of the attorneys representing any governmental body that is a party to the receivership suit.
  2. (b) Such attorney for the receiver shall serve without any compensation other than that received from the governmental body that such person represents as attorney.
History (3)
  • Acts 1941, ch. 19, § 5
  • C. Supp. 1950, § 1789.11 (Williams, § 1789.5)
  • T.C.A. (orig. ed.), § 67-1907.
§ 67-5-2208. Termination of receivership.
  1. (a) The receivership may be discontinued at any time by order of the court in which the receivership is pending, and the receivership shall be terminated when all taxes due parties to the tax suit have been paid by the receiver, by the owner of the receivership property, or in any other manner.
  2. (b) Where a receivership is secured for a number of parcels of land belonging to the same owner, the receivership of all parcels may be continued until the taxes on all such parcels have been paid.
History (3)
  • Acts 1941, ch. 19, § 6
  • C. Supp. 1950, § 1789.12 (Williams, § 1789.6)
  • T.C.A. (orig. ed.), § 67-1908.
§ 67-5-2209. Distribution of receivership assets.
  1. The assets of the receivership shall be distributed for the following purposes, preference being given to the purposes in the order named:
    1. (1) Court costs and all necessary or desirable expenses of the receivership, including the cost of maintenance, repair and improvement of receivership property;
    2. (2) Taxes due parties to the tax suit in which the receiver is appointed, the same preference being given on such distribution that would be given in the distribution of funds resulting from a tax sale of the receivership property; and
    3. (3) Any residue remaining after the termination of the receivership shall be paid to the owner of the receivership property.
History (3)
  • Acts 1941, ch. 19, § 7
  • C. Supp. 1950, § 1789.13 (Williams, § 1789.7)
  • T.C.A. (orig. ed.), § 67-1909.
§ 67-5-2210. Remedies additional.
  1. The remedies provided for in this part shall be in addition to all existing remedies for the collection of delinquent taxes, including any existing right concerning the appointment of a receiver in tax suits.
History (3)
  • Acts 1941, ch. 19, § 10
  • C. Supp. 1950, § 1789.16 (Williams, § 1789.10)
  • T.C.A. (orig. ed.), § 67-1910.
Part 23 Tax Lien — Protection of Timber
§ 67-5-2301. Timbering on land subject to lien prohibited.
  1. (a) In order to ensure the collection of delinquent taxes on land, the chief value of which lies in the timber growing thereon, and to prevent persons from destroying the principal value of such land and the value of the lien resting against the land for delinquent taxes by removal of the timber from the land without paying the delinquent taxes that have accrued thereon, it is unlawful for any person, group of persons or corporation to cut, sever, haul or carry away from or saw any timber from land on which rests liens to secure the payment of delinquent taxes.
  2. (b)
    1. (1) This section is intended to apply only to timbering that will result in the production of marketable timber, and does not apply to farm wood lots of no more than ten (10) acres where the farm has a greater acreage in cultivation and is improved by a dwelling house and out-buildings.
    2. (2) Nothing in this part applies to governmental agencies or subdivisions thereof, corporations or persons having the power of eminent domain when such governmental agencies or subdivisions thereof, corporations or persons are engaged in right-of-way work in the cutting, clearing, trimming and maintaining of rights-of-way for highways, railroads, communication and power lines.
Backlinks (3)
History (3)
  • Acts 1945, ch. 76, § 1
  • C. Supp. 1950, § 1593.1 (Williams, § 1789.12)
  • T.C.A. (orig. ed.), § 67-1911.
§ 67-5-2302. Timber cutters liable for delinquent tax.
  1. (a) All persons, groups of persons or corporations violating § 67-5-2301 shall become personally and primarily liable for the total delinquent taxes, together with accrued interest and any penalties thereon.
  2. (b) No others liable for the payment of such taxes shall be released from such liability nor will any lien for delinquent taxes against such land be extinguished until full payment of such taxes, together with interest and penalty.
Backlinks (1)
History (3)
  • Acts 1945, ch. 76, § 2
  • C. Supp. 1950, § 1593.2 (Williams, § 1789.13)
  • T.C.A. (orig. ed.), § 67-1912.
§ 67-5-2303. Equipment subject to lien.
  1. Any machinery or equipment used by those in lawful possession thereof in cutting, severing, hauling or carrying away or sawing timber on or from land subject to any lien for delinquent taxes, interest or penalty thereon is subject to a lien for the enforcement of the liabilities established in this part and is subject to attachment for the enforcement of such lien in any suit brought under the several provisions of this part.
History (3)
  • Acts 1945, ch. 76, § 5
  • C. Supp. 1950, § 1593.5 (Williams, § 1789.16)
  • T.C.A. (orig. ed.), § 67-1913.
§ 67-5-2304. Enforcement of liability.
  1. It is the duty of the county mayor, the trustee, the back-tax collector and the back-tax attorney in each county, individually and/or collectively, to see that the liabilities established in §§ 67-5-2301 and 67-5-2302 are enforced either at law or in equity against all who become liable thereunder.
Backlinks (1)
History (4)
  • Acts 1945, ch. 76, § 3
  • C. Supp. 1950, § 1593.3 (Williams, § 1789.14)
  • T.C.A. (orig. ed.), § 67-1914
  • Acts 2003, ch. 90, § 2.
§ 67-5-2305. Injunctions.
  1. The courts of law and equity in this state are expressly authorized and empowered to enjoin at the instance of the several officials enumerated in § 67-5-2304 the cutting, severing, hauling, carrying away or sawing of any timber on or taken from any lands subject to liens for delinquent taxes.
History (3)
  • Acts 1945, ch. 76, § 6
  • C. Supp. 1950, § 1593.6 (Williams, § 1789.17)
  • T.C.A. (orig. ed.), § 67-1915.
§ 67-5-2306. Certificate of nondelinquency.
  1. Any person cutting, severing, hauling or carrying away and sawing timber from any lands can be protected from liability hereunder by securing from the trustee or the delinquent tax collector in the county a certificate certifying that there are no delinquent taxes on the land from which it is proposed to cut or remove timber, such certificate to definitely and exactly describe the land referred to.
History (3)
  • Acts 1945, ch. 76, § 4
  • mod. C. Supp. 1950, § 1593.4 (Williams, § 1789.15)
  • T.C.A. (orig. ed.), § 67-1916.
§ 67-5-2307. Remedies cumulative.
  1. The remedies for the protection and collection of taxes on timber lands provided by this part are cumulative and in addition to all other remedies provided for the protection and collection of the revenues of this state and of its various subordinate taxing units.
History (3)
  • Acts 1945, ch. 76, § 7
  • C. Supp. 1950, § 1593.7 (Williams, § 1789.18)
  • T.C.A. (orig. ed.), § 67-1917.
§ 67-5-2308. Criminal liability — Farm lands exempt.
  1. (a) It is a Class C misdemeanor for any person, individually or associated with others, or any corporation, or for any agent of a corporation, to knowingly violate § 67-5-2301 by cutting, severing, hauling, carrying away or sawing timber on or from any land that is subject to any lien for delinquent taxes.
  2. (b) Knowledge of the fact that liens for delinquent taxes encumber the timber lands from which timber is being cut, severed, hauled or carried away or sawed, will be presumed, unless the defendant to any such criminal prosecution proves that such person investigated the tax records relating to the land to be timbered prior to the commencement of any timbering operations, and was informed by a county official charged with the collection of delinquent taxes that such tract to be timbered was not subject to any lien for delinquent taxes.
  3. (c) This part does not apply to any farm lands where as much as one-third (⅓) of the tract is in actual cultivation under contract with the owner or by the owner in person.
History (4)
  • Acts 1945, ch. 76, § 8
  • C. Supp. 1950, § 1593.8 (Williams, § 1789.19)
  • T.C.A. (orig. ed.), § 67-1918
  • Acts 1989, ch. 591, § 113.
§ 67-5-2309. Liberal construction.
  1. All of the provisions of this part are to be construed liberally in favor of their validity, and in favor of the validity of all official acts pursuant to this part.
History (3)
  • Acts 1943, ch. 18, § 4
  • C. Supp. 1950, § 1613.1 (Williams, § 1612.2)
  • T.C.A. (orig. ed.), § 67-1919.
Part 24 Tax Lien — Enforcement Generally
§ 67-5-2401. Notice of intent to file suit — Publication.
  1. (a) As a preliminary step toward enforcing the lien for uncollected property taxes, the trustee or collector shall cause to be inserted, once a week for two (2) consecutive weeks in the month of January, in a newspaper of general circulation as defined in § 2-1-104 or one (1) or more newspapers published or widely distributed in the county, a notice as follows:
    1. You are advised that after February 1, additional penalties and costs will be imposed in consequence of suits to be filed for enforcement of the lien for property taxes for prior tax years; until the filing of such suits, taxes may be paid in my office.
    3. County Trustee (or other Collector)
  2. (b) The cost of publication shall be paid by the tax entity, and, if no newspaper is published in the county, notice shall be posted on the courthouse door.
Backlinks (3)
History (8)
  • Acts 1923, ch. 77, § 6
  • Shan. Supp., §§ 913b12, 913b13
  • Code 1932, §§ 1586, 1587
  • Acts 1982, ch. 612, § 1
  • T.C.A. (orig. ed.), § 67-2001
  • Acts 1984, ch. 589, § 1
  • 2009, ch. 185, § 1
  • 2013, ch. 353, § 2.
§ 67-5-2402. Notice to property owner of delinquency.
  1. (a) The trustee or collector shall likewise prepare from the rolls held by the trustee's or the collector's office, a list of taxpayers and identification of property for which property taxes are delinquent, including unpaid rollback taxes as defined in § 67-5-1004, as of June 1 of the current calendar year, and include the following notice or equivalent language in the current tax bills sent to property owners appearing on either the trustee's or the collector's list or the list received from the clerk of court pursuant to § 67-5-2403:
    2. IN ADDITION TO THIS AMOUNT, YOU OWE BACK TAXES. CONTACT THIS OFFICE IMMEDIATELY OR YOUR PROPERTY MAY BE SOLD.
    4. County Trustee (or other Collector)
  2. (b) Subsection (a) does not apply to any county having a population of not less than seven thousand four hundred fifty (7,450) nor more than seven thousand five hundred (7,500), according to the 1980 federal census or any subsequent federal census.
Backlinks (1)
History (10)
  • Acts 1923, ch. 77, § 6
  • Shan. Supp., §§ 913b12, 913b13
  • Code 1932, §§ 1586, 1587
  • Acts 1982, ch. 612, § 1
  • T.C.A. (orig. ed.), § 67-2001
  • Acts 1984, ch. 584, §§ 2, 3
  • 1984, ch. 589, § 2
  • 1987, ch. 346, § 3
  • 2013, ch. 353, § 3
  • 2016, ch. 938, § 3.
§ 67-5-2403. List of property involved in suits.
  1. Additionally, it is the duty of the clerk of any court in which suits for the enforcement of property tax liens have been filed, if requested by the trustee, collector or by the attorney prosecuting the suit, to annually provide to such requesting party or parties, no earlier than June 1 nor later than July 1, a complete list of unpaid delinquent taxes pending in the court as of June 1 of the current calendar year, with identification of the property involved in such suits, and the years for which taxes are delinquent.
Backlinks (2)
History (9)
  • Acts 1923, ch. 77, § 6
  • Shan. Supp., §§ 913b12, 913b13
  • Code 1932, §§ 1586, 1587
  • Acts 1982, ch. 612, § 1
  • T.C.A. (orig. ed.), § 67-2001
  • Acts 1984, ch. 584, § 1
  • 1984, ch. 589, § 3
  • 2005, ch. 429, § 14
  • 2013, ch. 353, § 4.
§ 67-5-2404. Delivery of delinquent tax list to attorney — Appeals.
  1. (a)
    1. (1) After the publication of the notice in § 67-5-2401, and between the dates of February 1 and April 1, the trustee shall deliver the delinquent lists showing all unpaid property taxes to an attorney chosen by the trustee with the approval of the county mayor.
      Backlinks (1)
    2. (2) Compensation of the attorney shall be determined in advance through negotiations between the trustee and the attorney, subject to the approval of the county legislative body, but in no event shall such compensation exceed ten percent (10%) of all delinquent property taxes collected.
    3. (3) It is the duty of the county trustee and the county mayor to cause the attorney to prepare and file suits in the chancery or circuit court for the collection of all delinquent property taxes, and all arrears of taxes due the state, county and municipality.
    4. (4) In order that delinquent and municipal taxes may be collected at the same time as other taxes, it is the duty of the proper municipal officers to furnish the county trustee or the trustee's attorney certified lists of delinquent municipal taxes, unless otherwise provided.
    5. (5) This subsection (a) shall not apply to counties with a metropolitan form of government or to counties having the following populations according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  2. (b)
    1. (1) After the publication of the notice in § 67-5-2401, and between the dates of February 1 and April 1, the trustee shall deliver the delinquent lists showing all unpaid property taxes to an attorney chosen by the trustee with the approval of the county mayor, and it shall be the duty of the county trustee and the county mayor to cause the attorney to prepare and file suits in the chancery or circuit court for the collection of all delinquent property taxes, and all arrears of taxes due the state, county and municipality; and, so that delinquent and municipal taxes may be collected at the same time as other taxes, it shall be the duty of the proper municipal officers to furnish the county trustee or the trustee's attorney certified lists of delinquent municipal taxes, unless otherwise provided.
    2. (2) This subsection (b) shall apply only to counties with a metropolitan form of government and to counties having the following populations according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  3. (c)
    1. (1) Upon written agreement between the county trustee and the clerk of the court where suit has been filed for collection of delinquent taxes, the county trustee may continue to collect delinquent property taxes, including penalty and interest due, regarding any property included on the delinquent tax list delivered by the county trustee to an attorney for the filing of suits for collection until such property has been sold at a delinquent tax sale if the offices of the court clerk and the county trustee have computer systems that are sufficiently connected so as to enable the county trustee to collect the correct amount of taxes, penalties, and interest due. The county trustee shall pay over to the court clerk the entire amount so collected pursuant to such agreement and the court clerk shall allocate such amount as if the moneys were collected by the court clerk. This subsection (c) shall only apply to any county having a population of not less than one hundred thirty-four thousand seven hundred (134,700) nor more than one hundred thirty-four thousand eight hundred (134,800), according to the 2000 federal census or any subsequent federal census, upon adoption of a resolution by a two-thirds (⅔) vote of the county legislative body authorizing the county trustee to collect delinquent property taxes as provided in this subsection (c).
    2. (2) Upon written agreement between the county trustee and the clerk of the court where suit has been filed for collection of delinquent taxes, the county trustee may continue to collect delinquent property taxes, including penalty, interest, fees, and costs on all property included on the delinquent list delivered by the county trustee to the delinquent tax attorneys appointed for the filing of suits until the time such properties are sold in a delinquent tax sale. The county trustee shall pay over or allocate to the court clerk the entire amount so collected pursuant to such agreement and the court clerk, or the county trustee pursuant to such agreement, shall allocate such amount as if the moneys were collected by the court clerk. This subdivision (c)(2) shall apply to any county having over three hundred thousand (300,000) tax parcels, upon adoption of a resolution by a two-thirds (⅔) vote of the county legislative body authorizing the county trustee to collect delinquent taxes as provided in this subdivision (c)(2).
  4. (d) If a taxpayer or other adverse party to the tax entity appeals a judgment or other order in an action to collect or enforce a lien for unpaid taxes, or files suit for recovery pursuant to chapter 1, part 9 of this title, or to set aside a tax sale pursuant to § 67-5-2504, the court may, in its discretion, and upon the tax entity prevailing in such action, award reasonable attorneys' fees in addition to the compensation set forth in this section. Any request for such fees shall be supported by affidavit and such fees shall become additional expenses of the tax suit for the purposes of § 67-5-2410(d), and shall be secured by the lien in favor of the tax entity as costs accruing on the taxes pursuant to § 67-5-2101(a). Nothing in this subsection (d) shall be construed as authorizing an award of attorney's fees in favor of a taxpayer or other adverse party to the tax entity.
  5. (e) The maximum compensation provisions in this section and §§ 67-5-2410, 67-5-2501, and 67-5-2506 shall not be applicable to nor limit fees or expenses authorized by the court to be paid to the delinquent tax attorney pursuant to subsection (d), §§ 67-5-2410(d), 67-5-2502(c)(2), 67-5-2701(l), and 67-5-2702(g) or any other law. This subsection (e) is intended to be procedural and remedial in its application and is made applicable retroactively to the extent allowed by law.
Backlinks (3)
History (15)
  • Acts 1923, ch. 77, § 6
  • Shan. Supp., § 913b14
  • mod. Code 1932, § 1588
  • Acts 1975, ch. 32, § 1
  • 1978, ch. 869, §§ 1, 6-8
  • impl. am. Acts 1978, ch. 934, §§ 16, 36
  • T.C.A. (orig. ed.), § 67-2002
  • Acts 1987, ch. 392, § 1
  • 2003, ch. 90, § 2
  • 2004, ch. 591, § 1
  • 2013, ch. 353, § 12
  • 2014, ch. 708, § 1
  • 2015, ch. 93, § 1
  • 2019, ch. 170, § 3
  • 2024, ch. 967, § 30.
§ 67-5-2405. Filing and prosecution of suits.
  1. (a) The delinquent tax attorney shall, not later than the last business day of March following the publishing of a notice pursuant to § 67-5-2401, file judicial actions for the collection of delinquent real and personal property taxes due the county and municipality as well as the interest and costs attached to and a part of the taxes, which taxes, interest, and costs are declared a first lien upon the assessed parcels of real and personal property. The costs must include all expenses authorized by law or by the court, including attorney fees. The judicial actions must be brought in the names of the taxing entities that have certified a delinquent tax list with the delinquent tax attorney or the court.
  2. (b)
    1. (1) The complaint shall be in substance and form as other complaints for the enforcement of liens and may be filed against and contain the names of all the delinquent taxpayers in the county, and the fact that the complaint contains the names of more than one (1) defendant shall not be considered by the court multifarious, or a misjoinder of parties.
    2. (2) Additional defendants and delinquent taxes may be added to the suit as a matter of right upon the filing of a notice on behalf of the complainant to add additional defendants and without the necessity of amending the complaint. Upon the filing of such notice, the additional defendants shall be served with process pursuant to the Rules of Civil Procedure and § 67-5-2415.
      Backlinks (1)
  3. (c) Suits for the collection of delinquent taxes are to be prosecuted to a conclusion as soon as practicable, and for this purpose proceedings in respect thereto are to be accorded priority by the court.
  4. (d) At any time after suit has been filed pursuant to subsection (a), whether delinquent tax defendants have or have not been served with a copy of such suit, the court may amend this suit by adding delinquent taxes that became delinquent more recently than the taxes being enforced pursuant to subsection (a).
  5. (e)
    1. (1) If a plaintiff has reasonable cause to believe that an interested person owning an interest in a parcel is a minor or a person who is incompetent and that the person has no spouse, parent, child, guardian or best friend suitable to represent the person's interest, nor any appointed representative, the plaintiff shall make that fact known to the court. The court shall determine whether the interests of justice require the appointment of a guardian ad litem or attorney ad litem to represent the interests of the person. Otherwise, notice to such spouse, parent, child, guardian, best friend, or appointed representative, shall constitute notice to the interested person.
    2. (2) It is not necessary for unborn, unfound or unknown owners to have a guardian ad litem, attorney ad litem, or other representative, appointed to represent their interests in the proceedings except as provided in subdivision (e)(1).
Backlinks (1)
History (15)
  • Acts 1923, ch. 77, § 8
  • Shan. Supp., § 913b17
  • Code 1932, § 1591
  • C. Supp. 1950, § 1591
  • Acts 1973, ch. 296, § 1
  • 1975, ch. 32, § 2
  • 1982, ch. 612, § 2
  • 1983, ch. 95, § 1
  • T.C.A. (orig. ed.), § 67-2003
  • Acts 1993, ch. 47, § 1
  • 2001, ch. 104, § 1
  • 2003, ch. 90, § 2
  • 2013, ch. 353, § 7
  • 2014, ch. 883, § 6
  • 2024, ch. 967, § 3.
§ 67-5-2406. Failure to prosecute — Duties of district attorney general — Removal of attorney for nonprosecution.
  1. (a) Upon the failure of the county trustee and the county mayor to employ an attorney and institute suits for the collection of delinquent taxes, and within the time provided, the district attorney general has the power and the duty to:
    1. (1) Employ an attorney to institute and prosecute suits for the collection of such taxes; or
    2. (2) Maintain an action for a writ of mandamus to compel the county trustee and county mayor to employ an attorney to institute and prosecute suits for the collection of such taxes.
  2. (b) In the event a delinquent tax attorney has not prosecuted delinquent tax suits to a sale of the property within five (5) years of the filing of the suit, the court, on motion of the county mayor and county trustee or the district attorney general, may remove the attorney from all delinquent tax suits the attorney is prosecuting, unless satisfactory explanation of the delay is proven to the court. Upon the attorney's removal, the lien for attorney's fees on any remaining unpaid taxes shall be extinguished as to such attorney.
Backlinks (1)
History (14)
  • Acts 1923, ch. 77, §§ 8, 14
  • Shan. Supp., §§ 913b17, 913b23
  • Code 1932, §§ 1591, 1598
  • C. Supp. 1950, § 1591
  • Acts 1973, ch. 296, § 1
  • 1975, ch. 32, § 2
  • 1976, ch. 617, § 1
  • 1978, ch. 869, §§ 2, 6-8
  • impl. am. Acts 1978, ch. 934, §§ 16, 36
  • Acts 1982, ch. 612, § 2
  • 1983, ch. 95, § 1
  • T.C.A. (orig. ed.), §§ 67-2003, 67-2005
  • Acts 1985, ch. 373, §§ 4, 5
  • 2003, ch. 90, § 2.
§ 67-5-2407. Credit to trustee after suit filed.
  1. After the filing of such suits, the county trustee shall submit to the county legislative body a list of delinquent taxes reported uncollected, as the insolvent list, and the county legislative body shall allow credit for such uncollected taxes when the trustee has caused suits to be instituted for their collection as provided in this part, but not otherwise.
History (4)
  • Acts 1923, ch. 77, § 6
  • Shan. Supp., § 913b15
  • Code 1932, § 1589
  • T.C.A. (orig. ed.), § 67-2004.
§ 67-5-2408. Lists and records delivered to attorney.
  1. When suits have not been brought, the commissioner of revenue shall restore the delinquent tax lists of such counties to the county trustee, and the trustee and county mayor shall cause suits to be brought for the collection of such taxes under this part, and it shall also be the duty of the circuit court clerks of the several counties of the state to turn over to the attorney selected by the trustee and county mayor all records of uncollected taxes remaining in the office of the circuit court clerks, and to the end that the attorney, in preparing and filing such bills to enforce the tax lien as herein provided in this part, may include in such bill or bills all delinquent tax debtors.
History (7)
  • Acts 1923, ch. 77, § 15
  • Shan. Supp., § 913b24
  • Code 1932, § 1599
  • impl. am. Acts 1937, ch. 33, § 50
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-2006
  • Acts 2003, ch. 90, § 2.
§ 67-5-2409. Consolidation of suits — Amendment of suit.
  1. (a) If any other suits for delinquent taxes are pending against any particular piece of property, such suits shall be consolidated as a matter of right upon the filing of a notice of consolidation on behalf of the complainant. All taxes for which any given piece of property is liable and for which suits are pending may be included in the final decree.
  2. (b) The consolidation shall include into one (1) proceeding all actions to collect and enforce all delinquent taxes owing against the parcel, including delinquent taxes that become delinquent after the original action was filed. Once consolidated, all delinquent taxes, including both those delinquent prior to the filing of the original complaint and those added later by consolidation, shall be included in the minimum bid to purchase the property at a tax sale. Consolidation of the actions to include more recent delinquent taxes owed shall not require the issuance, service, or delivery of additional leading process, summons, or notice to interested persons who were served or notified pursuant to the original complaint in accordance with § 67-5-2415. After the notice of the consolidation is filed, the payment of the amount due for any of the years at issue in the consolidated proceeding shall not result in the dismissal of the consolidated proceeding until payment is made of all amounts due for all of the years that are the subject of the consolidated proceeding.
History (7)
  • Acts 1921, ch. 115, § 2
  • Shan. Supp., § 913b25
  • Code 1932, § 1600
  • T.C.A. (orig. ed.), § 67-2007
  • Acts 1993, ch. 47, § 2
  • 2013, ch. 353, § 14
  • 2018, ch. 778, § 6.
§ 67-5-2410. Penalties, fees and costs — Duties of clerk.
  1. (a)
    1. (1)
      1. (A) Upon the filing of suits to enforce the tax lien against real or personal property, an additional penalty of ten percent (10%) upon all delinquent taxes shall accrue and the penalty is imposed upon the amount due from any defendant to the state, county or municipality, which penalty shall be devoted to the expense of prosecuting the suits. Such penalty shall be computed on the base amount of delinquent taxes, not including accrued interest or penalties.
      2. (B) Notwithstanding subdivision (a)(1)(A), upon the filing of suits to enforce the tax lien, a municipal or county legislative body in any county having a population of not less than three hundred eighty-two thousand (382,000) nor more than three hundred eighty-two thousand one hundred (382,100), according to the 2000 federal census or any subsequent federal census, may impose the additional penalty at a rate of twenty percent (20%) upon all delinquent property taxes that shall accrue, and the penalty is imposed upon the amount due from any defendant to the state, county, or municipality, which penalty shall be devoted to the expense of prosecuting the suits. The twenty percent (20%) rate may only be imposed upon adoption of a resolution by a two-thirds (⅔) vote of the municipal legislative body or the county legislative body imposing the rate for those purposes described in this section.
    2. (2) Subdivision (a)(1) shall not apply to counties with a metropolitan form of government or to counties having the following populations, according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  2. (b)
    1. (1) Upon the filing of suits to enforce the tax lien against real or personal property, an additional penalty of ten percent (10%) upon all delinquent taxes shall accrue and the penalty is imposed upon the amount due from any defendant to the state, county or municipality, which penalty shall be devoted to the expense of prosecuting these suits and shall be allowed to the attorney filing the suits as compensation for the attorney's services. Such penalty shall be computed on the base amount of delinquent taxes, not including accrued interest or penalties.
    2. (2) Subdivision (b)(1) shall apply only to counties with a metropolitan form of government and to counties having the following populations, according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  3. (c)
    1. (1) The sheriff shall receive, as costs to be taxed against each delinquent, seven dollars and fifty cents ($7.50) for serving all original processes and the statutory fees for all other services performed by the sheriff, and the clerks of the courts shall receive the statutory fees provided in § 8-21-401.
    2. (2) No litigation tax shall be imposed.
    3. (3) If necessary to the prompt dispatch of suits for the collection of delinquent taxes, the court may order paid out of delinquent tax money on hand all reasonable expenses of prosecuting these suits in addition to that otherwise provided by law.
  4. (d) Additional expenses ordered by the court such as, but not limited to, title examination fees, extra publications, survey fees, environmental assessments and other necessary costs, shall be set by the court and shall be considered as court costs of the tax suit.
    Backlinks (2)
  5. (e) Clerks shall not be required to prepare petitions, complaints, summonses, notices or orders for the prosecution of tax enforcement suits.
Backlinks (6)
History (19)
  • Acts 1923, ch. 77, § 7
  • Shan. Supp., § 913b16
  • Code 1932, § 1590
  • Acts 1935, ch. 114, § 1
  • C. Supp. 1950, § 1590
  • Acts 1957, ch. 60, § 1
  • 1972, ch. 503, § 1
  • 1972, ch. 812, § 1
  • 1973, ch. 296, § 2
  • 1978, ch. 869, §§ 3, 6-8
  • 1982, ch. 695, § 1
  • T.C.A. (orig. ed.), § 67-2008
  • Acts 1987, ch. 346, § 14
  • 1987, ch. 392, § 2
  • 1996, ch. 787, § 6
  • 2002, ch. 684, § 1
  • 2005, ch. 429, § 15
  • 2016, ch. 617, § 1
  • 2024, ch. 967, § 31.
§ 67-5-2411. Dismissal on payment of taxes.
  1. (a) The proceedings shall be automatically dismissed without the entry of any order of a court, as to a defendant's property, upon the payment of the amount of taxes due from the defendant, together with interest and penalty, and such court costs as may have accrued against the defendant in consequence of the filing of the proceedings. In the event the payment is made by a method such as a check which fails to clear, counterfeit money or other method which results in a failure of the payment, the payment and any receipt issued therefor, shall be void and the proceedings shall be automatically reinstated without further order of a court.
  2. (b) The securing of an official tax receipt by use of a method of payment which results in a failure of payment, shall be prima facie evidence of an intent to defraud if a third party is damaged or changes the party's position to the party's detriment in reliance upon the issued tax receipt.
  3. (c) The securing of an official tax receipt by use of a method of payment which results in a failure of payment shall constitute criminal contempt of the court in which is pending a proceeding to collect delinquent property taxes owing against the parcel.
History (5)
  • Acts 1923, ch. 77, § 10
  • Shan. Supp., § 913b19
  • Code 1932, § 1594
  • T.C.A. (orig. ed.), § 67-2009
  • Acts 2014, ch. 883, § 7.
§ 67-5-2412. Collection of delinquent property taxes pursuant to § 67-5-2502(c)(1)(D) — Procedure for officers serving the execution — Exemptions.
  1. (a) In all proceedings defined by § 67-5-2502(c)(1)(D), for the collection of delinquent property taxes, an officer serving an execution issued in such proceeding shall conduct a search of the person of the defendant and such items and areas under the control of the defendant and shall seize such cash, property, and other assets belonging to the defendant, as is necessary to satisfy the execution and such additional fees as may be incurred by the officer. If the defendant objects to the search, the defendant shall reduce the defendant's objections to writing and give them to the officer. Thereupon, the defendant must be escorted by the officer to appear before a judicial commissioner or other official authorized to issue warrants, to state the defendant's grounds for the objection. The commissioner shall determine the validity of such grounds and either grant or refuse to allow the search. The commissioner shall retain the written objections of the defendant and the commissioner's written decision and deliver both to the clerk of the court from which the execution issued.
  2. (b) The exemptions set out in §§ 26-2-113, 26-2-301, and 26-2-306 and such other laws that provide that exemptions do not apply to sales of property of the defendant in regard to sales for taxes include executions issued in proceedings defined by § 67-5-2502(c)(1)(D).
History (1)
  • Acts 2024, ch. 967, § 21.
§ 67-5-2414. Procedure governing suit.
  1. All such suits, whether brought in the chancery court or circuit court, shall be prosecuted according to the rules of procedure of courts of chancery, except as modified in this chapter or as they may be inconsistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter; and all lands impressed with the lien for taxes, penalties, interest, and costs shall be subject to sale under such proceedings, when the amount due is ascertained.
History (12)
  • Acts 1923, ch. 77, § 8
  • Shan. Supp., § 913b17
  • Code 1932, § 1951
  • Acts 1935, ch. 114, § 1
  • C. Supp. 1950, § 1591
  • Acts 1972, ch. 503, § 2
  • 1973, ch. 296, § 3
  • 1978, ch. 869, §§ 4, 6-8
  • 1981, ch. 125, § 1
  • 1983, ch. 307, § 1
  • T.C.A. (orig. ed.), § 67-2012
  • Acts 2015, ch. 414, § 8.
§ 67-5-2415. Notice to taxpayer of suit.
  1. (a) The court shall have jurisdiction to award personal judgment against an owner upon the claim for the debt upon determining that proper process has been served upon such owner. The court shall have jurisdiction to award a judgment enforcing the lien by a sale of the parcel upon determining that any the following actions have occurred as to each owner:
    1. (1) That proper process has been served upon an owner;
    2. (2) That the owner has actual notice of the proceedings by mail or otherwise; or
    3. (3) That constructive notice by publication pursuant to §§ 21-1-203 and 21-1-204, except as modified in this section, utilizing a description of the parcel in accord with § 67-5-2502(a)(1), has been given to unborn, unfound and unknown owners and that the plaintiff has made or will make a diligent effort prior to the confirmation of the sale of the parcel to give actual notice of the proceedings to persons owning an interest in the parcel, as identified by the searches described in § 67-5-2502(c)(2).
  2. (b) Notice shall also be sufficient if received by an owner in time to afford the owner a reasonable period to prevent the loss of owner's interest in the parcel. Such loss shall be deemed to occur upon the expiration or termination of the redemption period established by part 27 of this chapter.
  3. (c) Notice of the pendency of the proceedings as to a parcel constitutes notice of the pending sale of the parcel and vice versa.
  4. (d) If process is to be served upon a defendant, the defendant does not have to receive a copy of the complaint or exhibits. The plaintiff may in lieu thereof furnish to the defendant a notice identifying the proceedings sufficiently for the defendant to determine the parcel which is subject to the delinquent taxes for which the defendant is being sued.
  5. (e) A defendant may file a pleading alleging specific facts establishing any of the following defenses:
    1. (1) That the parcel is not subject to sale for the taxes;
    2. (2) That the taxes have been paid; or
    3. (3) That there has been substantial noncompliance with mandatory statutory provisions relating to the proceedings.
  6. (f) Process may be served either by an authorized process server or forwarded by certified or registered mail, return receipt requested, or by any alternative delivery service as authorized by Section 7502 of the Internal Revenue Code (26 U.S.C. § 7502).
  7. (g) The return of the receipt signed by the defendant, spouse, or other person deemed appropriate to receive summons or notice as provided for in the Rules of Civil Procedure, or its return marked “refused”, “unclaimed”, or other similar notation, as evidenced by appropriate notation of such fact by the postal authorities, and filed as a part of the record by the clerk shall be evidence of actual notice and shall be grounds for a default judgment. Process and notices delivered by registered or certified mail or by an alternative delivery service, with a return receipt, to an interested party's registered agent at the agent's address or to the address of the interested party, each as shown on the corporate records of a state secretary of state or other officer responsible for maintaining such records, shall be sufficient to bind the interested party as to notices and service of process. The phrase “appropriate notation of such fact by postal authorities” as used in this subsection (g), includes tracking records located on the website of the delivery service. If a copy of the tracking records is filed with the clerk confirming the delivery, the filing of the return receipt is not required.
  8. (h) Prior to confirming the sale of a parcel, the court shall determine that a diligent effort has been made to give actual notice of the proceedings to all interested persons, as identified by the searches described in § 67-5-2502(c)(2).
Backlinks (2)
History (20)
  • Acts 1923, ch. 77, § 8
  • Shan. Supp., § 913b17
  • Code 1932, § 1951
  • Acts 1935, ch. 114, § 1
  • C. Supp. 1950, § 1591
  • Acts 1972, ch. 503, § 2
  • 1973, ch. 296, § 3
  • 1978, ch. 869, §§ 4, 6-8
  • 1981, ch. 125, § 1
  • 1983, ch. 307, § 1
  • T.C.A. (orig. ed.), § 67-2012
  • Acts 1984, ch. 661, § 2
  • 1985, ch. 289, § 1
  • 1986, ch. 703, §§ 1, 2
  • 2012, ch. 979, § 1
  • 2013, ch. 353, § 15
  • 2014, ch. 883, § 8
  • 2015, ch. 414, § 10
  • 2017, ch. 198, § 1
  • 2024, ch. 967, § 29.
§ 67-5-2416. Reference and master's report.
  1. A reference may be taken in each case, and notice shall be given to all officers whose duty it is to collect delinquent revenue; and all such revenue as may be delinquent, together with all the costs, fees, penalties and interest thereon, shall be ascertained and included in the master's report.
Backlinks (1)
History (4)
  • Acts 1921, ch. 115, § 2
  • Shan. Supp., § 913b26
  • Code 1932, § 1601
  • T.C.A. (orig. ed.), § 67-2013.
§ 67-5-2417. Receivership.
  1. In all cases, the courts in which such bills may be filed are authorized to appoint receivers to take charge of the property that is the subject matter of the litigation and collect the rents and profits thereon, to the end that the net amount of such rents and profits, after paying the receiver reasonable compensation, shall be applied to the taxes, costs, penalties and interest involved in such suits and incident to such suits.
History (4)
  • Acts 1921, ch. 115, § 2
  • Shan. Supp., § 913b27
  • Code 1932, § 1602
  • T.C.A. (orig. ed.), § 67-2014.
§ 67-5-2418. Orders, notices, and judgments as to one or more defendants — Appeal.
  1. (a) Orders may be entered, notices may be filed, including notices adding parties and consolidating cases pursuant to § 67-5-2405(b)(2), and judgments may be taken against any one (1) or more defendants included in the action, without affecting the rights of the other parties to the action.
  2. (b) Any one (1) or more defendants shall have the right to appeal, and such appeal shall not affect the standing of the cause as to other parties to the proceedings.
History (5)
  • Acts 1923, ch. 77, § 9
  • Shan. Supp., § 913b18
  • Code 1932, § 1593
  • T.C.A. (orig. ed.), § 67-2015
  • Acts 2017, ch. 299, § 6.
§ 67-5-2419. Implementation of decrees.
  1. The courts having jurisdiction of any delinquent tax proceeding are vested with the authority to render judgments and decrees, and order writs of possession for the purposes declared in this part and part 25 of this chapter, and the commissioner of revenue is authorized to take all steps necessary to put the state in possession of the property.
History (6)
  • Acts 1907, ch. 602, § 57
  • Shan., §§ 913a26, 913a27
  • Acts 1929, ch. 136, § 1
  • Code 1932, § 1604
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 67-2016.
§ 67-5-2421. Money paid into court — Clerk's compensation — Settlement.
  1. (a) The money paid into court shall be received by the clerk and paid out by the clerk in the same manner as other public revenue, and the clerk shall receive the same compensation for receipting for and disbursing taxes under these proceedings as is allowed upon the clerk's receipt and disbursement of other public revenues.
  2. (b) The clerk of the court wherein such proceedings have been brought shall make settlement when requested by the county mayor or county trustee, and shall pay over such funds as now required by law for the disbursement of other public revenue coming through the clerk's office.
History (5)
  • Acts 1923, ch. 77, §§ 11, 13
  • Shan. Supp., §§ 913b20, 913b22
  • Code 1932, §§ 1595, 1597
  • T.C.A. (orig. ed.), §§ 67-2020, 67-2021
  • Acts 2003, ch. 90, § 2.
§ 67-5-2422. Authority to establish percentage to be applied as compensation for prosecution of delinquent taxes.
  1. The legislative body of every county having a charter form of government or metropolitan form of government and every municipality which has adopted home rule in accordance with the Constitution of Tennessee, Article XI, § 9, is authorized to establish any percentage to be applied as interest, penalties, court costs, attorney fees, and fees to provide compensation for the prosecution of the delinquent taxes, and is authorized to apply such percentages on its own accord, §§ 67-5-2010, 67-5-2404, 67-5-2410, and 67-5-2501 notwithstanding. If such a county or municipal government has not elected to establish and to specifically identify its own percentages, §§ 67-5-2010, 67-5-2404, 67-5-2410, and 67-5-2501 shall remain in effect until the legislative body of the county or municipal government so acts.
History (1)
  • Acts 2013, ch. 353, § 5.
§ 67-5-2423. Certified delinquent tax roll as prima facie evidence of property tax.
  1. A delinquent tax roll, certified by the appropriate collecting official, shall constitute prima facie evidence that the underlying tax assessment has become conclusively established pursuant to § 67-5-1329 or § 67-5-1401, that each person charged with a duty relating to the imposition of the tax has complied with all requirements of law, and that the tax, including all applicable penalties, interest, costs, and fees, remains due and owing, and constitutes a good and valid lien on the subject property, as well as a personal liability of the taxpayer.
History (1)
  • Acts 2013, ch. 353, § 16.
Part 25 Tax Lien — Sale of Property
§ 67-5-2501. Sale of land generally. [Effective on September 1, 2024. See the version effective until September 1, 2024.]
  1. (a)
    1. (1) The court shall order a sale of the parcel for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted by internet sale in lieu of public outcry.
    2. (2) At the sale, the clerk of the court, acting for the tax entity prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, and other costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
    3. (3)
      1. (A) The tax sale proceeds must be distributed according to the following priorities:
        1. (i) Amounts owing the delinquent tax attorneys prosecuting the cause; then
        2. (ii) The costs of the proceeding exceeding the attorneys' fees; then
        3. (iii) Amounts owing the taxing entities which are parties in the cause; then
        4. (iv) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5-108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then
        5. (v) Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then
        6. (vi) Any remaining proceeds must be distributed in accordance with § 67-5-2702.
      2. (B) If there are not sufficient funds to pay all of the amounts stated in subdivisions (a)(3)(A)(i)-(iii), the tax liens of the taxing entities securing such amounts must lapse upon expiration of the redemption period, it being the intent of the general assembly that a parcel sold at a tax sale be conveyed free of any remaining tax liens other than taxes levied for the current year. However, a taxing entity retains any personal right of action it may have against prior owners of the parcel.
      3. (C) If the tax sale is subsequently invalidated or declared void, the lapsed tax liens must be reinstated retroactively.
    4. (4)
      1. (A) If a taxing entity purchases a parcel pursuant to this section, the taxing entity shall pay to the clerk all amounts owing as court costs, including the amount owing the attorney prosecuting the case, within sixty (60) days after the order confirming the sale becomes final. The taxing entity may by motion request the court for an extension of time in which to pay such amount. The court may grant such extension for such period as the court determines proper not to exceed three (3) years and may award interest to accrue during such extension at a rate determined by the court. In making such determinations, the court shall consider the financial condition of the taxing entity.
      2. (B) If the taxing entity determines to retain the parcel, it shall within sixty (60) days of making such determination, pay to the clerk all remaining amounts owing on the parcel.
      3. (C) If the parcel is subsequently transferred pursuant to § 67-5-2507 for an amount greater than the court cost paid pursuant to subdivision (a)(4)(A), such excess must be distributed pursuant to § 67-5-2507(a)(6) to the extent funds are available. Any remaining amounts owing on the parcel must be dismissed by the court and the liens securing the same must terminate.
  2. (b)
    1. (1) The court may order the sale of all or a portion of the taxable personal property constituting a parcel secured by a tax lien. Such sale must be made according to such procedures as may be established by the court.
    2. (2) Upon a tax proceeding being filed to enforce a tax lien against real or personal property, any requirement mandating the confidentiality of records pertaining to the parcel terminates.
  3. (c)
    1. (1) Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale.
    2. (2) The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold.
    3. (3) The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by § 67-5-2502, the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record.
    4. (4) The report or notice shall be for notice purposes only and shall not be evidence of transfer of title.
    5. (5) Failure to timely record the report or notice shall not provide grounds to set the sale aside.
    6. (6) The document shall be exempt from recording fees pursuant to § 8-21-1001, and shall be indexed by the register under the name of the last owner of record.
Backlinks (19)
History (17)
  • Acts 1923, ch. 77, § 8
  • Shan. Supp., § 913b17
  • Code 1932, § 1951
  • Acts 1935, ch. 114, § 1
  • C. Supp. 1950, § 1591
  • Acts 1972, ch. 503, § 2
  • 1973, ch. 296, § 3
  • 1978, ch. 869, §§ 4, 6-8
  • 1981, ch. 125, § 1
  • 1983, ch. 307, § 1
  • T.C.A. (orig. ed.), § 67-2012
  • Acts 1996, ch. 787, § 7
  • 2013, ch. 353, § 19
  • 2015, ch. 524, § 1
  • 2016, ch. 1085, § 1
  • 2017, ch. 299, §§ 7, 8
  • 2024, ch. 967, § 17.
§ 67-5-2501. Sale of land generally. [Effective until September 1, 2024. See the version effective on September 1, 2024.]
  1. (a)
    1. (1) The court shall order a sale of the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted electronically in lieu of public outcry.
    2. (2) At all sales, the clerk of the court, acting for a tax entity or entities prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
    3. (3) Up to ten percent (10%) of the sale proceeds shall be applied first to payment of any unpaid balance of compensation due the prosecuting attorney. Second, the proceeds of the sale shall be applied to the costs of the suits. Third, the remainder shall be applied to the state first, county second, and municipality third, the amount due each to be ascertained by a decree of the court.
    4. (4) This subsection (a) does not apply to counties with a metropolitan form of government or to counties having the following populations according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  2. (b)
    1. (1) The court shall order a sale of the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted electronically in lieu of public outcry.
    2. (2) At all sales, the clerk of the court, acting for a tax entity or entities prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
    3. (3) The proceeds from such sale shall be applied first to the payment of the ten percent (10%) penalty allowed as compensation for prosecuting the suits, second to the costs, and third the remainder shall be applied to the state first, county second, and the municipality third, the amount due each to be ascertained by a decree of the court.
    4. (4) This subsection (b) applies only to counties with a metropolitan form of government and to counties having the following populations according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  3. (c)
    1. (1) Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale.
    2. (2) The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold.
    3. (3) The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by § 67-5-2502, the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record.
    4. (4) The report or notice shall be for notice purposes only and shall not be evidence of transfer of title.
    5. (5) Failure to timely record the report or notice shall not provide grounds to set the sale aside.
    6. (6) The document shall be exempt from recording fees pursuant to § 8-21-1001, and shall be indexed by the register under the name of the last owner of record.
Backlinks (19)
History (16)
  • Acts 1923, ch. 77, § 8
  • Shan. Supp., § 913b17
  • Code 1932, § 1951
  • Acts 1935, ch. 114, § 1
  • C. Supp. 1950, § 1591
  • Acts 1972, ch. 503, § 2
  • 1973, ch. 296, § 3
  • 1978, ch. 869, §§ 4, 6-8
  • 1981, ch. 125, § 1
  • 1983, ch. 307, § 1
  • T.C.A. (orig. ed.), § 67-2012
  • Acts 1996, ch. 787, § 7
  • 2013, ch. 353, § 19
  • 2015, ch. 524, § 1
  • 2016, ch. 1085, § 1
  • 2017, ch. 299, §§ 7, 8.
§ 67-5-2502. Notice of sale of land.
  1. (a)
    1. (1) In the event of a sale under a decree of the court, the property shall be advertised in one (1) sale notice, which notice shall set out the names of the owners of the different tracts or parcels of land and describe the property and set out the amount of judgment against each defendant. The description of the property shall include a concise description, that means a reference to a deed book and page that contains a complete legal description of the property or the official property number as provided by § 67-5-806, and may also include a common description of the property, which may include street name and number, map and parcel number, number of acres, or any other description which might help identify the property as it is commonly known. The purpose of the common description is to help identify the property that is described in the concise description. Any error or defect in the common description shall not in any way void any sale of the property; provided, that the concise description makes accurate reference to the last conveyance of the property by correct reference to a deed book and page or the official property number as provided by § 67-5-806.
      Backlinks (1)
    2. (2) A notice of the tax sale shall be published at least once in a newspaper of general circulation in the county where the parcels are located, or, with the approval of the court, the notice may be published by printed handbills publicly posted in the county where the parcels are located in such manner as the court may determine will provide adequate public awareness of the sale. Any such publication shall first occur at least twenty (20) days before the sale date.
    3. (3) Notice to parties or others in delinquent tax suits and sales shall be governed by the Tennessee Rules of Civil Procedure, except as modified in this chapter or as they may be inconsistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter, and may be forwarded to the address of an owner of the property that is on record in the office of the assessor of property. If there is any remainder after the proceeds of the sale have been distributed pursuant to § 67-5-2501, the party receiving notice pursuant to this subdivision (a)(3) shall also be given notice of the amount of proceeds resulting from the sale, the division of such proceeds, and the remainder.
    4. (4)
      1. (A) A person, who is either expressly or impliedly authorized by another person to receive mail on behalf of the other person, is authorized to sign a receipt on behalf of the other person accepting registered or certified mail or correspondence delivered by an alternative delivery service, containing either a summons, complaint, or summary of the proceeding or a notice that has been or is to be filed in a tax proceeding. In every tax proceeding, the burden of proving by clear and convincing evidence that a person who signed such a receipt for a different person and was, in fact, at that time expressly prohibited in writing from accepting mail for the second person, shall be upon the person challenging the sufficiency of the service or notice.
      2. (B) Proof of delivery of summons, notice, or other correspondence filed or to be filed in the proceeding, by certified mail, return receipt requested, or by an alternative delivery service with return receipt requested, may also be proved by reference to the tracking records located on the website of the delivery service.
      3. (C) The failure of a person accepting the mail provided by subdivision (a)(4)(B) to fully complete the receipt with a legible signature, a printed name, and delivery date, creates a presumption that the receipt was executed by the addressee or a person with authority or implied authority to accept mail and service of process for the addressee. However, the presumption may be rebutted in the manner set out in subdivision (a)(4)(A).
    5. (5)
      1. (A) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to the owner.
      2. (B) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to all assignees of the owner if evidence of the assignment has not been recorded in the office of the register of deeds in the county where the parcel is located.
      3. (C) This subdivision (a)(5) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law.
    6. (6) The clerk or special master conducting the sale may, on suggestion of the delinquent tax attorney, withdraw any parcel from the sale.
  2. (b) It is the responsibility of the property owner to register the property owner's name and address with the assessor of property of the county in which the land lies.
  3. (c)
    1. (1) For the purposes of this chapter, unless the context requires otherwise:
      1. (A) “Diligent effort to give actual notice of the proceedings” means a reasonable effort to give notice which is reasonably calculated, under all the circumstances and conditions, to apprise interested persons of the pendency of the proceedings in time to afford them an opportunity to prevent the loss of their interest in the parcel. Such effort shall be such as one desirous of actually informing the persons might reasonably adopt to accomplish it. Such effort does not, however, require that an interested person receive actual notice. Nor does it require the plaintiff to search records or sources of information in addition to that information available in the specific offices listed in subdivision (c)(2). The effort does not require the tax entity or delinquent tax attorney to obtain discovery as authorized by the Tennessee Rules of Civil Procedure, or otherwise;
      2. (B) “Interested person”, “person owning an interest in a parcel” and “owner” means a person, including any governmental entity, that owns an interest in a parcel and includes a person, including any governmental entity, that holds a lien against a parcel or is the assignee of a holder of such a lien. “Interested person” also includes a person or entity named as nominee or agent of the owner of the obligation that is secured by the deed or a deed of trust and that is identifiable from information provided in the deed or a deed of trust, which shall include a mailing address or post office box of the nominee or agent. However, a person named as a trustee under a deed of trust, contract lien or security instrument, is not included in such definition unless the person has a separate interest in the parcel;
      3. (C) “Parcel” or “property” means a tract or item of real or personal property which is the subject of a judicial proceeding to obtain a personal judgment for the taxes owing or to enforce the lien securing the payment of delinquent property taxes by a sale of the tract or item; and
      4. (D) “Proceeding” or “tax proceeding” means a judicial proceeding filed by a governmental entity for the purpose of collecting delinquent property taxes owing the entity. The court shall have jurisdiction to determine all issues arising in the proceedings including issues arising before and after the confirmation of the sale of a parcel, including redemption, disposition of excess proceeds and all issues arising pursuant to § 67-5-2507.
        Backlinks (5)
      Backlinks (2)
    2. (2) The delinquent tax attorney shall make a reasonable search of the public records in the offices of the assessor of property, trustee, the register of deeds, and the local office where wills are recorded, seeking to identify and locate all interested persons as to each parcel listed on the county and municipal delinquent tax lists filed in the cause. The court shall set a reasonable attorney's fee per parcel, as defined in subdivision (c)(1), per year of delinquent taxes owed and per taxing entity, for the services required by this subsection (c), which shall become an additional expense of the proceeding and shall be secured by the first lien in favor of the tax entity pursuant to § 67-5-2101. The fee shall be charged to each pending parcel listed on the county and municipal delinquent tax lists filed in the tax proceeding and each parcel subsequently turned over for collection in a tax proceeding.
      Backlinks (3)
    3. (3) The delinquent tax attorney shall make a diligent effort to give actual notice of the proceedings to all interested persons, as identified by the searches described in subdivision (c)(2).
      Backlinks (1)
  4. (d) A tax sale notice, which shall be the same or substantially the same as the advertised notice, may be recorded in the register of deeds' office for the county in which the property is located upon the setting of the tax sale date. The recording cost shall be divided between the parcels of land listed in the tax sale notice and added as an additional court cost to each such parcel of land. This tax sale notice shall be recorded for informational purposes only and no release shall be required.
  5. (e)
    1. (1) Any owner of a surface interest in property overlying a mineral interest may record a declaration of the owner's interest in such land with the register of deeds in the county where the mineral interest is located. Declaration forms shall be available at the register's office and shall include the name of the owner of mineral interest beneath the surface. Declaration forms received by the register's office shall be recorded by the register in the dormant mineral interest record. Declaration forms shall be indexed under the names of the mineral interest owners as grantor or grantors and under the names of the surface owners as grantee or grantees. Recording the declaration of surface ownership shall entitle surface owners to receive notice described in subdivision (e)(2).
    2. (2) In the event of the sale of severed mineral interest property pursuant to § 67-5-2501, the clerk of the court shall send, by certified return receipt mail, a notice of proceedings regarding the sale of that mineral interest to any owner of the surface interest who has recorded a declaration of surface ownership as described in subdivision (e)(1).
    3. (3)
      1. (A) The owner of surface interest who has recorded a declaration of surface ownership according to subdivision (e)(1), and who has received notice of delinquent tax proceedings according to this section may, within one hundred twenty (120) days after the sale pursuant to § 67-5-2501, purchase the mineral interest beneath the owner's tract for a percentage of the total amount of such sale, which percentage shall be derived from the percentage that the owner's surface interest bears to the total surface area of the property connected with the mineral interest sold at such tax sale.
      2. (B) Such surface owner shall tender to the clerk of court such amount, including a pro-rated amount of the penalty and interest paid, at the same percentage rate. The clerk shall, within thirty (30) days of receipt of such amount pay the same amount to the person who purchased the mineral interest at the tax sale. The surface owner shall, in addition, pay the clerk for the clerk's services in such transaction.
    Backlinks (1)
  6. (f) Any sale under this section may be adjourned and rescheduled one (1) time for cause without an additional newspaper publication or decree, upon compliance with the following provisions:
    1. (1) The sale must be held within one (1) year of the originally scheduled date;
    2. (2) The postponement or adjournment must be to a specified date and time, and must be posted or announced at the date, time, and location of the scheduled sale date; and
    3. (3) If the postponement or adjournment is for more than thirty (30) days, notice of the new date, time, and location must be mailed no less than ten (10) calendar days prior to the sale date via regular mail to the parties to the suit, with a copy of such notice filed with the clerk of court.
Backlinks (2)
History (24)
  • Acts 1923, ch. 77, § 12
  • Shan. Supp., § 913b21
  • Code 1932, § 1596
  • Acts 1976, ch. 695, § 1
  • 1980, ch. 629, § 1
  • T.C.A. (orig. ed.), § 67-2018
  • Acts 1984, ch. 661, § 1
  • 1984, ch. 868, § 1
  • 1987, ch. 282, § 3
  • 1987, ch. 346, § 8
  • 1988, ch. 636, §§ 17-19
  • 1991, ch. 470, § 3
  • 1994, ch. 579, §§ 2-6
  • 1996, ch. 787, § 3
  • 1998, ch. 894, § 1
  • 2013, ch. 353, § 17
  • 2014, ch. 599, § 1
  • 2014, ch. 883, §§ 9, 10
  • 2015, ch. 213, § 3
  • 2015, ch. 414, §§ 9, 11
  • 2017, ch. 299, § 9
  • 2018, ch. 778, §§ 4, 5
  • 2019, ch. 170, § 4
  • 2024, ch. 967, §§ 4, 6, 22, 32.
§ 67-5-2503. Sale of land — Writ of possession — Rents and profits.
  1. (a) An order confirming the sale of a parcel shall confer the right to possession of the parcel to the purchaser effective upon entry of the order. On such date, the risk of loss shall transfer from the original owner to the purchaser. In the event of a loss occurring after the sale and before the order confirming the sale is entered, the court shall, on motion of the purchaser filed before the order confirming the sale becomes final, determine whether any portion of the purchaser's bid should be refunded to the purchaser.
    Backlinks (1)
  2. (b) A writ of possession shall, upon application of the purchaser, in a proper case, be ordered by the court in which the tax sale has been made. A purchaser not making an advance demand for rents or profits shall have no rights to rents or profits from a taxpayer who has remained in possession during the redemption period.
History (7)
  • Acts 1907, ch. 602, § 64
  • Shan., § 913a48
  • mod. Code 1932, § 1612
  • T.C.A. (orig. ed.), § 67-2019
  • Acts 1991, ch. 470, § 2
  • 2015, ch. 414, § 12
  • 2019, ch. 170, § 5.
§ 67-5-2504. Attacks on sale of land — Rights of purchaser.
  1. (a)
    1. (1) Any person who buys real estate sold for delinquent taxes that were a lien thereon, and who shall for any cause fail to get a good title or to recover possession of the realty, shall be subrogated to all liens that secured the taxes, and all interest, costs, penalties and fees; and such person shall have the right to enforce the same in chancery for the reimbursement of the purchase money paid by such person and interest thereon.
    2. (2) The chancery court shall have jurisdiction, in such case, though the amount sued for be less than fifty dollars ($50.00).
  2. (b) A tax deed of conveyance or an order confirming the sale shall be an assurance of perfect title to the purchaser of such land, and no such conveyance shall be invalidated in any court, except by proof that the land was not liable to sale for taxes, or that the taxes for which the land was sold have been paid before the sale or that there was substantial noncompliance with mandatory statutory provisions relating to the proceedings in which the parcel was sold; and if any part of the taxes for which the land was sold is illegal or not chargeable against it, but a part is chargeable, that shall not affect the sale, nor invalidate the conveyance thereunder, unless it appears that before the sale the amount legally chargeable against the land was paid or tendered to the county trustee, and no other objection either in form or substance to the sale or the title thereunder shall avail in any controversy involving them. An action seeking to invalidate any tax title to a parcel shall allege specific facts establishing the grounds set out herein and proof of compliance with subsection (c) prior to the filing of the complaint.
  3. (c) No suit shall be commenced in any court of the state to invalidate or declare void any tax title to land until the party suing shall have paid or tendered to the clerk of the court where the suit is brought the amount of the bid and all taxes subsequently accrued, with interest and charges as provided in this part.
  4. (d)
    1. (1) A suit to invalidate any tax title to land shall be commenced within one (1) year from the date the cause of action accrued, which is the date of the entry of the order confirming the tax sale.
    2. (2) The statute of limitations to invalidate the sale of any tax title shall be one (1) year as set forth in subdivision (d)(1), except that it may be extended to one (1) year after the plaintiff discovered or with the exercise of reasonable due diligence should have discovered the existence of such cause of action.
    3. (3) In no event shall any action to invalidate any tax sale title be brought more than three (3) years after the entry of the order confirming the tax sale.
    4. (4) This subsection (d) shall not be construed to prevent or delay issuance of an order quieting title to a tax sale parcel in favor of the purchaser. After entry of an order confirming the sale of a parcel, the purchaser may file suit to quiet title, notwithstanding the deadline for tax sale challenges provided in this subsection (d), or the redemption period provided in part 27 of this chapter. Any order quieting title to a tax sale parcel entered before the expiration of the redemption period shall specify that the purchaser's title to the parcel remains subject to any such remaining redemption period.
    5. (5) Nothing in this subsection (d) shall limit the time in which a motion for excess proceeds may be filed pursuant to § 67-5-2702.
  5. (e) In all cases where the state is not the holder of the legal title to the property bought by it at a tax sale for delinquent state and county taxes, any person desiring to attack the validity of such tax sale may do so by making only the holder of the legal or equitable title thereto and those persons claiming through such holder who are parties to such suit, and it shall not be necessary to make the state a party thereto.
  6. (f) Any person successfully challenging the validity of a tax sale of the person's interest in a parcel shall also be responsible to the person purchasing the property at the tax sale and the purchaser's successors in interest, for any increase in the value of the parcel, including any improvements thereto, from the date of the entry of the order confirming the sale until the entry of a court order declaring the tax sale invalid as to the challenger. In the alternative, the challenger shall be responsible to the person purchasing the property at the tax sale and the purchaser's successors in interest, for all amounts expended by the purchaser or the purchaser's successors as set out in § 67-5-2701(b) and (e), if such amount is in excess of the increased value of the parcel. The purchaser and successors shall have a lien upon the parcel to secure the payment of the amount determined by the court to be due.
  7. (g) An order confirming the sale of a parcel is voidable and may be voided by the court after a determination of the merits of the grounds for the action as set out in this chapter and any defenses raised.
  8. (h) For the purposes of this chapter, a motion filed pursuant to Rule 60.02 of the Tennessee Rules of Civil Procedure, or any other or successor rule of similar effect, challenging the validity of a tax sale and any independent action for a similar purpose, shall be considered an action to invalidate the sale of a tax title.
  9. (i)
    1. (1) An interested person may file an action to challenge a tax title or the instrument conveying such title if the delinquent tax attorney fails to make a diligent effort to give actual notice of the proceeding to the interested person in accordance with § 67-5-2502(c)(3).
    2. (2) Any challenge to a tax title based on lack of notice to an interested party, including any action seeking to declare a title or the instrument conveying such title void ab initio, shall be considered an action to invalidate the sale of a tax title and such action is subject to the provisions of parts 18-28 of this chapter applying to actions to invalidate the sale of a tax title, including the required tender of payment before commencement of a suit in accordance with subsection (c).
    3. (3) This subsection (i) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law.
  10. (j) This section does not presuppose a valid vestiture of title in the purchaser at the tax sale.
Backlinks (2)
History (13)
  • Acts 1907, ch. 602, §§ 64, 75
  • Shan., §§ 913a45-913a47, 913a61
  • mod. Code 1932, §§ 1609-1611, 1613
  • Acts 1949, ch. 56, § 1
  • C. Supp. 1950, § 1608.1 (Williams, § 1610.1)
  • modified
  • T.C.A. (orig. ed.), §§ 67-2022 — 67-2026
  • Acts 2008, ch. 606, § 1
  • 2013, ch. 353, § 20
  • 2014, ch. 883, § 11
  • 2015, ch. 414, §§ 13-15
  • 2017, ch. 299, §§ 10-12
  • 2024, ch. 967, § 7.
§ 67-5-2505. Lien rights of non-governmental entity when property bought by county with population of not less than 25,400 or not more than 61,200 at tax sale.
  1. (a) Whenever a county acquires property at a tax sale, a nongovernmental entity holding a vested and duly recorded contractual right to the payment of fees or assessments secured by such property retains such right; provided, that the nongovernmental entity may only enforce such contractual rights against the county through the exercise of its lien rights against the property.
  2. (b) Notwithstanding subsection (a), a county is liable for the payment of the fees and assessments described in subsection (a) if the county makes actual use of the property purchased at the tax sale.
  3. (c) This section applies only in counties having populations according to the 2020 federal census or a subsequent federal census of:
  5. not less thannor more than
  6. 25,40025,500
  7. 57,80057,900
  8. 61,10061,200
Backlinks (6)
History (3)
  • Acts 2019, ch. 419, § 1
  • 2023, ch. 245, § 1
  • 2024, ch. 717, § 1.
§ 67-5-2506. Sale of land for county taxes only.
  1. (a)
    1. (1) When a parcel is sold for payment of delinquent taxes it must be sold pursuant to this chapter. This subdivision (a)(1) is procedural and remedial in its application and applies retroactively to the extent allowed by law.
    2. (2) It is the duty of the clerk of the court ordering the sale to bid, on behalf of the governmental entities for which the taxes are owing, to ascertain the amount due for taxes, interest, penalties and costs, where no other bidder offers the same or higher bid; provided, that, in the case of property where the county legislative body has determined that no bid should be made on behalf of the governmental entities to which taxes are owing due to a determination that such property poses an environmental risk or has financial liabilities associated with the property such that it is not in the best interest of the county to take possession of the property, the clerk shall not offer a bid. The county legislative body may also make a determination that no bid shall be made on behalf of the governmental entities on nonbuildable or nonconforming parcels, including, without limitation:
      1. (A) Storm water detention basins;
      2. (B) Drainage ditches;
      3. (C) Private road right-of-ways;
      4. (D) Private drives;
      5. (E) Common open areas; and
      6. (F) Utility easements.
    3. (3) Up to ten percent (10%) of the sale proceeds shall be applied, first, to payment of any unpaid balance of compensation due the prosecuting attorney; second, the proceeds of the sale shall be applied to the costs of the suits; and third, the remainder shall be applied to the county first and second, to any municipality having a tax lien on the same property.
    4. (4) This subsection (a) does not apply to counties with a metropolitan form of government or to counties having the following populations, according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
  2. (b)
    1. (1) When any parcel is sold for payment of delinquent taxes, it shall be sold pursuant to this chapter. This subdivision (b)(1) is procedural and remedial in its application and is made applicable retroactively to the extent allowed by law.
    2. (2) It is the duty of the clerk of the court ordering the sale to bid, on behalf of the governmental entities for which the taxes are owing, to ascertain the amount due for taxes, interest, penalties and costs, where no other bidder offers the same or higher bid; provided, that, in the case of property where the county legislative body has determined that no bid should be made on behalf of the governmental entities to which taxes are owing due to a determination that such property poses an environmental risk, the clerk shall not offer a bid.
    3. (3) The proceeds from such sale shall be applied, first, to the payment of the penalty allowed as compensation for prosecuting the suits; second, to the costs; and third, the remainder shall be prorated, first, to the county and, second, to any municipality that has a tax lien thereon.
    4. (4) This subsection (b) applies only to counties with a metropolitan form of government and to counties having the following populations, according to the 1970 federal census or any subsequent federal census:
      3. 3,7655,200
      4. 6,6006,700
      5. 8,1008,200
      6. 12,30012,350
      7. 12,40012,550
      8. 14,70014,800
      9. 36,90037,100
      10. 56,20056,300
Backlinks (3)
History (9)
  • Acts 1949, ch. 193, § 1
  • C. Supp. 1950, § 1612.2 (Williams, § 1051.1)
  • Acts 1978, ch. 869, §§ 5-8
  • T.C.A. (orig. ed.), § 67-2033
  • Acts 1996, ch. 787, § 4
  • 2014, ch. 825, § 1
  • 2016, ch. 1085, § 2
  • 2019, ch. 170, § 6
  • 2024, ch. 967, § 1.
§ 67-5-2507. Sale of land — County as purchaser — Deferred sale. [Effective on September 1, 2024. See the version effective until September 1, 2024.]
  1. (a)
    1. (1) The county mayor shall cause a certified copy of all orders confirming the sale of a parcel to the county pursuant to § 67-5-2501 to be recorded in the office of the register of deeds of the county. It is the duty of the county mayor of each county to take charge of all parcels purchased by the county at a delinquent tax sale pursuant to § 67-5-2501.
    2. (2) The county legislative body may adopt regulations concerning sales of parcels purchased by the county at a delinquent tax sale. The regulations must be designed to promote a fair, effective, competitive, and transparent method of disposing of the parcels so as to attain the highest bid for each parcel. The regulations may include:
      1. (A) That parcels may be sold on credit and the terms thereof;
      2. (B) That parcels may be sold for amounts less than the full amount owing in the tax proceeding, the conditions upon which such a sale may take place, and whether such a sale shall be approved by the county legislative body;
      3. (C) Other similar issues regarding the procedures of sale; and
      4. (D) Procedures, terms, and conditions applicable to conveyances of a parcel pursuant to subsection (b).
    3. (3)
      1. (A) Unless otherwise required by the regulations adopted by the county legislative body, each parcel must be offered for sale with no minimum bid or approval by the county legislative body required.
      2. (B) The county mayor may solicit offers for one (1) or more individual parcels or for all parcels on a list prepared pursuant to § 67-5-2511.
      3. (C) Any solicitation of offers must contain a statement as to how and where offers may be filed, and must be published in a newspaper of general circulation in the county.
    4. (4)
      1. (A) Upon a written offer being made to purchase a parcel the county mayor shall cause to be published a notice of the details of such offer with a description of the parcel. During the ten-day period following the date of such publication, if a person files with the county mayor or the county mayor's designee a written offer to increase the advertised offer by ten percent (10%) or more, the county mayor or designee shall give notice to those persons filing offers to appear at a certain time, date, and location and shall post the notice at a place available to the general public. At such time, date, and location, the county mayor or the county mayor's designee shall conduct an auction of the parcel with the starting bid being the highest written offer received prior to the auction. All persons are eligible to offer bids at the auction. The highest bidder at such auction is the successful bidder. If no raise offer is timely filed, the original bidder is the successful bidder.
      2. (B) The county mayor may approve the sale by internet sale of parcels purchased by the county at a delinquent tax sale pursuant to § 67-5-2501. Subdivision (a)(4)(A) may be waived by the county mayor as to parcels offered for sale by internet sale. The highest bidder at such internet auction is the successful bidder.
    5. (5) The proceeds derived from retentions or conveyances of parcels purchased by the county at a delinquent tax sale pursuant to § 67-5-2501 must be applied in the following order:
      1. (A) First, proceeds must be applied to reimburse the taxing entity for amounts paid by the taxing entity for the purchase of the parcel in the tax proceeding or which remain owing by the taxing entity;
      2. (B) Any proceeds remaining after the application of proceeds provided by subdivision (a)(5)(A) must be applied first to unpaid attorney fees allowed in the tax proceeding, then to other unpaid court costs, and then divided on a pro rata basis based upon the taxes levied against the parcel by the county and any other taxing entity which has filed a proceeding as defined in § 67-5-2502;
      3. (C) Any proceeds remaining after the application of proceeds provided by subdivisions (a)(5)(A) and (a)(5)(B) must be applied to pay other taxes and accrued interest, penalties, and court costs, owed to the county and any other taxing entity on a pro rata basis, based upon the amounts of taxes owing each; and
      4. (D) Any proceeds remaining after the application of proceeds provided by subdivisions (a)(5)(A)-(C) inure to the benefit of the county.
    6. (6) Upon compliance with this section, the parcel must be released from all taxes, penalties, interest, and court costs owing all tax entities, up to the date of the conveyance subject only to any current year taxes that may not have been paid pursuant to this section.
      Backlinks (1)
    7. (7) Any conveyance or retention of a parcel that occurs before the expiration of the redemption period provided in part 27 of this chapter remains subject to the right of redemption. A conveyance or retention of a parcel does not affect the redemption period applicable to the parcel.
    8. (8) The county mayor is not required to seek approval of the county legislative body to supervise the sale and conveyance of each parcel unless:
      1. (A) Otherwise required by the regulations adopted by the county legislative body; or
      2. (B) The county legislative body has determined to retain or convey the parcel pursuant to subsection (b).
    Backlinks (1)
  2. (b)
    1. (1) The county legislative body may determine that it is in the best interest of the county to retain a parcel purchased by the county pursuant to § 67-5-2501 to use the parcel for a public purpose. The county may retain ownership of the parcel, or it may, subject to such terms as may be agreed upon, transfer ownership of the parcel to:
      1. (A) A governmental entity, including a corporation created pursuant to the Tennessee Local Land Bank Program, compiled in title 13, chapter 30; or
      2. (B) A nonprofit entity; provided, that the parcel is transferred in accordance with subdivision (b)(3).
    2. (2) A document evidencing the determination of the county legislative body to retain ownership of a parcel in accordance with subdivision (b)(1) must be recorded in the office of the register of deeds.
    3. (3) To be eligible to receive a parcel pursuant to subdivision (b)(1)(B), a nonprofit entity shall comply with the following requirements:
      1. (A) The entity must be exempt from federal income taxation under § 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)), or an organization described in § 501(c) of the Internal Revenue Code (26 U.S.C. § 501(c));
      2. (B) The entity shall agree that the conveyed parcel must be used by the entity for at least a reasonable period for the purposes for which the entity was chartered; and
      3. (C) The entity is chartered to:
        1. (i) Construct or to restore residential dwellings for the purpose of creating affordable and habitable housing for the disadvantaged and needy citizens of the community;
        2. (ii) Construct or to restore historical properties or buildings in the community;
        3. (iii) Operate or maintain a community garden in the community; or
        4. (iv) Construct, operate, or maintain a park, memorial, or gathering place in the community, available for use by the general public.
  3. (c) Conveyances of parcels must be made without warranties by the county. Deeds must be executed by the county mayor. The execution of a deed constitutes a certification by the county that all procedures and rules of the county have been complied with and that all interest of the county in the parcel is being conveyed. The certification must not be overturned absent clear and convincing evidence of a substantial and material violation of a statutorily mandated requirement.
  4. (d) If the county mayor determines, prior to the sale of a parcel, that there may be a defect in the title to the parcel, the county mayor may move the court in which the parcel was sold in the tax proceeding to take action to cure the defect. A diligent effort to give notice of any such motion must be made as to all interested persons as of the date of the filing of the motion.
  5. (e) If a municipality does not authorize the county to convey its interest in tax parcels pursuant to § 67-5-1801(a), or if a municipality files a complaint to collect delinquent property taxes owing the municipality separate from the complaint filed by the county to collect delinquent property taxes owing the county, the municipality's governing body and chief executive officer shall dispose of the parcels purchased by the municipality at a delinquent tax sale, in accordance with this section and § 67-5-2511. In such event, the municipality's legislative body has the powers and duties of the county legislative body as set out in this section and § 67-5-2511; its chief executive officer has the powers and duties of the county mayor as set out in this section and § 67-5-2511; and the municipality stands in the place and stead of the county.
  6. (f)
    1. (1) As to a particular parcel conveyed to a county pursuant to § 67-5-2501, the county mayor may make an evaluation of the parcel to determine whether the value of the parcel or amount of money the county is likely to receive if the county sold the parcel, exceeds the financial or environmental risks associated with the parcel.
    2. (2) If the county mayor determines that such risks exceed the value of the parcel, the county legislative body may adopt a resolution, by a two-thirds (⅔) vote, concurring in the county mayor's determination and directing the county mayor to request relief from the court in which the parcel was sold. Such relief must be sought by motion pursuant to Rule 60 of the Tennessee Rules of Civil Procedure filed within one hundred twenty (120) days after the entry of the order confirming the sale.
    3. (3) If the court finds that the motion should be granted, the court may rescind its prior order upon such terms as are just. If the prior order is rescinded, title to the parcel must be deemed to have remained in that state that existed as of the date of entry of the prior order confirming the sale. The court has broad discretion to ensure that this subsection (f) does not result for any period of time in the creation of a parcel for which a person or entity does not have responsibility. The court may then appoint a special master and direct the special master to conduct a second sale of the parcel upon such terms and conditions as may be ordered by the court, including the reduction or elimination of the minimum bid which may be accepted at the sale.
    4. (4) As an alternative to ordering a second sale or if a person does not present a bid at the second sale of the parcel, the court may thereafter approve a negotiated sale of the parcel upon such terms and conditions as may be ordered by the court. The court may allow an additional fee to the delinquent tax attorney for services rendered in regard to a negotiated sale of a parcel as provided in this chapter.
    5. (5) This subsection (f) applies to the risks of an individual parcel only and does not apply to the aggregated risks of all or multiple parcels bid in to the county pursuant to § 67-5-2501.
Backlinks (9)
History (12)
  • Acts 1949, ch. 193, § 2
  • C. Supp. 1950, § 1612.3 (Williams, § 1051.2)
  • T.C.A. (orig. ed.), §§ 67-2034, 67-2035
  • Acts 1993, ch. 315, § 8
  • 2003, ch. 90, § 2
  • 2013, ch. 353, §§ 21-24
  • 2015, ch. 410, § 1
  • 2015, ch. 414, § 16
  • 2016, ch. 853, §§ 1, 2
  • 2016, ch. 1085, § 3
  • 2017, ch. 299, §§ 13, 14
  • 2024, ch. 967, § 15.
§ 67-5-2507. Sale of land — County as purchaser — Deferred sale. [Effective until September 1, 2024. See the version effective on September 1, 2024.]
  1. (a)
    1. (1) It is the duty of the county mayor of each county to take charge of all the lands bought in by the county at such delinquent tax sales.
    2. (2) During the period when redemption of any such tract of land can be made, the land shall be:
      1. (A) Held and put only to a use that will not result in a waste of the land; or
      2. (B) Sold to a third party, in accordance with subsection (b), subject to the right of redemption. If any parcel is sold subject to redemption, it may be redeemed in accordance with § 67-5-2701.
    3. (3) After the period of redemption has elapsed, it shall be the duty of the county mayor to arrange for the disposition of every tract of such land as expeditiously and advantageously as possible unless parcels acquired by the county are identified by the county mayor, or the mayor's designee, as being in an area or zoning classification that would make the accumulation of larger areas advantageous to the parcels' reuse and redevelopment. In such cases, the mayor may hold those properties until a sufficient number of parcels or area has been acquired to improve the parcels' marketability and redevelopment profile. In no event shall this accumulation result in property being held without being marketed for more than five (5) years.
    4. (4) If the county mayor determines, prior to the sale of a parcel brought in by the county at a delinquent tax sale, that there may be a defect in the title to the parcel, the county mayor may move the court in which the parcel was sold in the tax proceeding, to take action to cure the defect. A diligent effort to give notice of any such motion shall be made as to all interested persons as of the date of the filing of the motion.
    Backlinks (1)
  2. (b)
    1. (1) A committee of four (4) members shall be elected by the county legislative body, from the county legislative body, who, together with the county mayor, shall place a fair price on each tract of land, for which price the land shall be sold. In counties having adopted the County Financial Management System of 1981, compiled in title 5, chapter 21, the financial management committee created by § 5-21-104 may serve as this committee, instead of the committee as established in this subdivision (b)(1).
    2. (2) Such committee may authorize the sale of any tract of land upon such terms as will secure the highest and best sale price, but the credit extended shall not exceed three (3) years and a lien shall be retained to secure purchase price.
    3. (3) No tract of land shall be sold for an amount less than the total amount of the taxes, penalty, cost and interest, unless the legislative body, upon application, determines that it is impossible to sell the tract of land for this amount, and grants permission to offer the land for sale at some amount to be fixed by such legislative body.
    4. (4) Interest shall be calculated on the full amount of the taxes, penalty, cost and interest from the time of the acquisition of the land by the county until the sale thereof.
    5. (5) Whenever the sale of a tract of land is arranged by the county mayor, the deed shall not be executed and the sale shall not become final until ten (10) days after the publication in a newspaper published in the county of a notice of the proposed sale, the name of the purchaser and the terms, conditions and price. The land shall be described in the notice only by number, which shall refer to a description on file with such committee.
    6. (6) If anyone, during such ten (10) days, increases the offer made for the land by ten percent (10%) or more, the party making the first offer shall be notified and a day fixed when both parties shall appear and make offers.
    7. (7) The tract of land shall be sold to the party making the highest and best offer.
    8. (8) Conveyances of the land shall be made without warranties of any sort, and deeds shall be executed by the county mayor or other chief fiscal officer of the county.
    9. (9) The deed shall be prepared by the back-tax attorney as a part of the duties for which the attorney is compensated by § 67-5-2410, and no additional compensation shall be allowed.
    10. (10) The county may, upon a majority vote of its legislative body determining it in the best interests of the county to use the property for a public purpose, decide to retain ownership and possession of such property.
    11. (11) This subsection (b) shall not apply in any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census.
  3. (c)
    1. (1) As to a particular parcel conveyed to a county pursuant to § 67-5-2501, the county mayor may make an evaluation of the parcel to determine whether the value of the parcel or amount of money the county is likely to receive if the county sold the parcel exceeds the financial obligations or environmental risks associated with the parcel.
    2. (2) If the county mayor determines that such financial obligations or environmental risks exceed the value of the parcel, the county legislative body may adopt a resolution, by a two-thirds (⅔) vote, concurring in the county mayor's determination and directing the county mayor to request relief from the court in which the parcel was sold. Such relief shall be sought by motion pursuant to Rule 60 of the Tennessee Rules of Civil Procedure filed within one hundred twenty (120) days after the entry of the order confirming the sale.
    3. (3) If the court finds that the motion should be granted, the court may rescind its prior order upon such terms as are just. In the event the prior order is rescinded, title to the parcel shall be deemed to have remained in that state which existed as of the date of entry of the prior order confirming the sale. The court shall have broad discretion to ensure that this subsection (c) does not result for any period of time in the creation of a parcel for which no person or entity has responsibility. The court may then appoint a special master and direct the special master to conduct a second sale of the parcel upon such terms and conditions as may be ordered by the court, including the reduction or elimination of the minimum bid that may be accepted at the sale.
    4. (4) In the event no person presents a bid at the second sale of the parcel, the court may thereafter approve a negotiated sale of the parcel upon such terms and conditions as may be ordered by the court or such other relief as the court may order, including the conveyance to a nongovernmental entity claiming contractual rights to dues or assessments pursuant to § 67-5-2516.
    5. (5) This subsection (c) shall be applicable to the financial obligations or environmental risks of an individual parcel only and shall not be applicable to the aggregated financial obligations or environmental risks of all or multiple parcels bid in to the county pursuant to § 67-5-2501.
Backlinks (9)
History (11)
  • Acts 1949, ch. 193, § 2
  • C. Supp. 1950, § 1612.3 (Williams, § 1051.2)
  • T.C.A. (orig. ed.), §§ 67-2034, 67-2035
  • Acts 1993, ch. 315, § 8
  • 2003, ch. 90, § 2
  • 2013, ch. 353, §§ 21-24
  • 2015, ch. 410, § 1
  • 2015, ch. 414, § 16
  • 2016, ch. 853, §§ 1, 2
  • 2016, ch. 1085, § 3
  • 2017, ch. 299, §§ 13, 14.
§ 67-5-2508. Sale of property — Political subdivision as purchaser.
  1. (a) The priorities of a taxing entity purchasing a parcel at a tax sale pursuant to § 67-5-2501 must be to either return the parcel to the tax rolls or put the parcel to a use benefitting the public within a reasonably prompt period after purchasing the parcel.
  2. (b) If no qualified newspaper is published in the county, then any notice required by this chapter may be posted on a website maintained by the taxing entity or the clerk of the court where the tax proceeding is pending. If no website is maintained by the taxing entity or clerk, the notice must be posted at the courthouse or other public building where such notices are frequently posted. The court in which the tax proceeding was filed may establish additional advertising requirements.
  3. (c) If the bid of a purchaser from the taxing entity of a parcel purchased by the taxing entity at a tax sale which parcel is subject to a redemption period is greater than the proceeds of a subsequently approved redemption, the purchaser must bear the loss.
Backlinks (8)
History (8)
  • Acts 1933, ch. 125, §§ 1, 2
  • 1941, ch. 34, § 1
  • mod. C. Supp. 1950, §§ 1592.1, 1592.2
  • T.C.A. (orig. ed.), §§ 67-2036, 67-2037
  • Acts 2009, ch. 478, §§ 1, 2
  • 2010, ch. 1014, § 1
  • 2013, ch. 353, §§ 25, 26
  • 2024, ch. 967, § 12.
§ 67-5-2509. Exemption from taxation — Land purchased, resold or rented by state or political subdivision. [Repealed effective September 1, 2024. See the version effective on September 1, 2024.]
  1. (a) Whenever land is purchased at a tax sale by the state, by a county, or by a municipality of the state or by a county and a municipality, as tenants in common, and the state, a county or municipality, or a county and municipality, goes into or takes actual possession of such land, the land shall, after the expiration of the period of redemption provided in § 67-5-2701, be exempt from taxation, as property held for a public, county or municipal purpose, and no taxes shall be collected thereon, and no assessment shall be made thereon, so long as the property is held for the purpose of realizing therefrom the taxes and assessments that have been lost by the several tax funds entitled thereto as result of the failure of the former owner of the property to pay the taxes for which the sale was held.
  2. (b) When the state, a county or a municipality, or any or all of them, has recovered from the sale or rental of any property purchased by them, or any one, or any combination of them, moneys sufficient to pay the taxes for which the property was sold, it shall be the duty of the officers of the state, the county and/or municipality, charged with the handling of the property, to report the recovery to the assessors of the county and municipality for assessment, it being the declared intention of the general assembly that such property is not held for a public, county and municipal purpose after the taxes, for which the sale was held, and subsequently accruing taxes through the period of redemption have been realized from the collection of net income therefrom or from the net sale price thereof, unless in the meantime the property shall have become devoted by the state, or by a county or a municipality, to a use otherwise recognized by law as a state or municipal purpose.
  3. (c)
    1. (1) In lieu of the sale to private purchasers as provided in [former] § 67-5-2505 [repealed], and §§ 67-5-2507 and 67-5-2508, the proper officers of the state, the county, and the municipality, or any or all of the officers who have an interest in the property, may convey the property to any other governmental entity meeting the conditions specified below, at any terms deemed appropriate to such officers. In order to receive property under this subsection (c), a governmental entity must certify to such officers that the property is to be used for purposes that would make the property subject to condemnation by the governmental entity under its powers of eminent domain.
    2. (2) In lieu of the sale to private purchasers as provided in [former] § 67-5-2505 [repealed], and §§ 67-5-2507 and 67-5-2508, the proper officers of the municipality or county may convey property permitted to be used for residential purposes to a private nonprofit entity that meets all conditions specified in this subdivision (c)(2), on any terms deemed appropriate to the officers:
      1. (A) The entity is certified as a tax exempt entity under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)); and
      2. (B) The entity is chartered to construct or to restore residential dwellings for the purpose of creating affordable and habitable housing for the disadvantaged and needy, and the property conveyed to the entity is used for that purpose; and
      3. (C) The property, once constructed or restored, is conveyed to an individual or family for use as an owner-occupied residence.
    3. (3) In any county having a population in excess of eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, in lieu of the sale to private purchasers as provided in [former] § 67-5-2505 [repealed], and §§ 67-5-2507 and 67-5-2508, the proper officers of the municipality or county may convey property purchased at a tax sale as provided in subsection (a) to the agency or commission of such municipality or county for redevelopment of properties certified under title 13, chapter 21, part 2, for those uses authorized by § 13-21-202(4), as amended by chapter 948 of the Public Acts of 1998, commonly referred to as the Community Redevelopment Act of 1998.
    4. (4) In any county having a population in excess of eight hundred thousand (800,000), according to the 2000 federal census or any subsequent federal census, in lieu of the sale to private purchasers as provided in [former] § 67-5-2505 [repealed], and §§ 67-5-2507 and 67-5-2508, the governing body of the municipality or county may convey property to a nonprofit community development corporation for purposes wherein use by the nonprofit community development corporation is deemed by the governing body of the municipality or county to inure to the benefit of the area the recipient nonprofit community development corporation is chartered or authorized to serve. The property may be conveyed on terms, including but not limited to, limitations of use or reversion, as deemed appropriate to the governing body of the municipality or county, except that under no circumstances shall the nonprofit community development corporation be required to pay the taxes, penalties or interest for which the property was sold.
    5. (5) In any county having a population in excess of eight hundred thousand (800,000), according to the 2000 federal census or any subsequent federal census, in lieu of the sale to private purchasers as provided in [former] § 67-5-2505 [repealed], and §§ 67-5-2507 and 67-5-2508, the proper officers of the municipality or county may convey properties with road frontage no greater than twenty-four feet (24′) acquired in tax sales to adjoining property owners upon establishing a fair market value (FMV), based upon both value enhancing and value decreasing factors, after the adjoining property owner has made sufficient in-kind payments, including, but not limited to, cutting, cleaning or improving the property, and accepting general liability for the premises. These actual or in-kind payments shall be equal to the FMV established for the property.
    6. (6) In lieu of the sale to private purchasers as provided in [former] subsection (b), the proper officers of the municipality or county may convey real property suitable for community gardening, as defined in § 43-24-102, to a private nonprofit entity that meets all conditions specified in this subdivision (c)(6), on any terms deemed appropriate to the officers:
      1. (A) The entity is certified as a tax exempt entity under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3));
      2. (B) The entity is qualified to operate and maintain a community garden in the judgment of the officers of the municipality or county; and
      3. (C) Any interest in or use of real property conveyed pursuant to this subdivision (c)(6) shall revert to the municipality or county if the entity, or a successor nonprofit entity that meets all of the conditions of this subdivision (c)(6), ceases to operate and maintain a community garden on the property.
Backlinks (1)
History (12)
  • Acts 1943, ch. 18, § 1
  • C. Supp. 1950, § 1592.3
  • T.C.A. (orig. ed.), § 67-2038
  • Acts 1984, ch. 661, § 3
  • 1998, ch. 647, § 1
  • 1999, ch. 420, § 1
  • 2008, ch. 1127, § 1
  • 2009, ch. 380, § 1
  • 2010, ch. 1064, § 1
  • 2013, ch. 353, §§ 27, 28
  • 2014, ch. 556, § 3
  • 2015, ch. 414, § 17.
§ 67-5-2510. Property purchased by state or political subdivision — Satisfaction of delinquency and removal from tax rolls. [Repealed effective September 1, 2024. See the version effective on September 1, 2024.]
  1. (a) Whenever any property is sold at a tax sale and is purchased by the state, by a county, by a municipality, or by a county and municipality, the officers of the state, or the county, or the municipality, or of county and municipality, purchasing the property, shall notify the county trustee and the collector of any municipal taxes that are a lien upon the property, when actual possession has been taken of such lands, and the county trustee and the collector of municipal taxes are then authorized and directed to note the payment of the taxes, for which the sale was held upon the tax rolls, by endorsing thereon the words: “Paid by sale of property, see Land Ledger, p. ; actual possession having been taken by (County, City, or City and County),” or equivalent words.
  2. (b) If actual possession is not taken by the state, by a county, or by a municipality, or by a county and municipality, the lands shall not be removed from the tax rolls, nor shall the lands be removed from the tax rolls, if the owner or former tenant is permitted to remain in possession of the property without the payment of rent to the state, county or municipality or county and municipality.
History (3)
  • Acts 1943, ch. 18, § 2
  • C. Supp. 1950, § 1592.4
  • T.C.A. (orig. ed.), § 67-2039.
§ 67-5-2511. Listing of parcels owned by county or municipality. [Effective on September 1, 2024. See the version effective until September 1, 2024.]
  1. (a)
    1. (1) The county mayor, with the assistance of the assessor of property, shall cause to be prepared and maintained, a listing of all parcels owned by the county acquired pursuant to § 67-5-2501.
    2. (2) The chief executive officer of a municipality shall cause to be prepared and maintained, a listing of all parcels owned by the municipality acquired pursuant to § 67-5-2501; provided, however, that the listing may omit any property that is required to be listed by a county in accordance with subdivision (a)(1).
    3. (3) Listings pursuant to this subsection (a) must be prepared annually by July 1. The listings must be published in a newspaper of general circulation in the county or posted on a website with a notice of the posting published in a newspaper of general circulation in the county.
  2. (b) At least annually the county mayor shall determine if any additional parcels have been purchased by the county pursuant to § 67-5-2501. If so, the county mayor shall publish the updated list in the same manner as the original list pursuant to subdivision (a)(3).
  3. (c) Each list or notice published in accordance with this section must contain a solicitation for offers to purchase the parcels listed and a statement as to how and where such offers may be filed.
  4. (d) However, parcels acquired by the county which are identified by the county mayor, or the mayor's designee as being in an area or zoning classification that would make the accumulation of larger areas advantageous to the reuse and redevelopment of the parcels may be excluded from the list of parcels required by this section, until a sufficient number of parcels or area has been acquired to improve the marketability and redevelopment profile of the parcels. This accumulation must not result in property being held without being marketed for more than five (5) years. A separate list of such designated parcels must be maintained by the mayor or the mayor's designee.
Backlinks (2)
History (5)
  • Acts 1943, ch. 18, § 2
  • C. Supp. 1950, § 1592.4
  • T.C.A. (orig. ed.), § 67-2040
  • Acts 2017, ch. 299, § 15
  • 2024, ch. 967, § 16.
§ 67-5-2511. Listing of parcels owned by county or municipality. [Effective until September 1, 2024. See the version effective on September 1, 2024.]
  1. (a)
    1. (1) The county mayor shall cause to be prepared and maintained a listing of all parcels owned by the county acquired pursuant to § 67-5-2501.
    2. (2) The chief executive officer of a municipality shall cause to be prepared and maintained a listing of all parcels owned by the municipality acquired pursuant to § 67-5-2501; provided, however, that the listing may omit any property that is required to be listed by a county under subdivision (a)(1).
    3. (3) Listings pursuant to this subsection (a) shall be prepared no later than July 1, 2018. The listings shall be published in a newspaper of general circulation in the county or posted on the local government website with a notice of the posting published in a newspaper of general circulation in the county.
  2. (b) At least annually, the county mayor shall determine if any additional parcels have been purchased by the county pursuant to § 67-5-2501 and shall publish an updated list, as necessary, in the same manner as the original list in accordance with subdivision (a)(3).
  3. (c) Each list or notice published in accordance with this section may contain a solicitation for offers to purchase the parcels listed and a statement as to how and where such offers may be filed.
  4. (d) Parcels acquired by the county which are identified by the county mayor, or the mayor's designee, as being in an area or zoning classification that would make the accumulation of larger areas advantageous to the reuse and redevelopment of the parcels, may be excluded from the list of parcels prepared and maintained under this section until a sufficient number of parcels or property has been acquired to improve the marketability and redevelopment profile of the parcels. In no event shall this accumulation result in property being held without being published for more than five (5) years. A separate list of such designated parcels shall be maintained by the mayor or the mayor's designee.
Backlinks (2)
History (4)
  • Acts 1943, ch. 18, § 2
  • C. Supp. 1950, § 1592.4
  • T.C.A. (orig. ed.), § 67-2040
  • Acts 2017, ch. 299, § 15.
§ 67-5-2515. Reference to tax deed deemed reference to an order of confirmation of sale.
  1. Any reference in this code to a tax deed with respect to property sold for delinquent taxes shall also be deemed a reference to an order of confirmation of sale entered in a delinquent tax lawsuit with respect to the property in question.
History (2)
  • Acts 1994, ch. 579, § 1
  • 2014, ch. 883, § 16.
§ 67-5-2516. Transfer of unimproved or undeveloped property acquired by tax entity at tax sale to nongovernmental entity claiming contractual rights to payment.
  1. (a) As used in this section:
    1. (1) “Undeveloped” means that no utility services, such as electricity, gas, water or sanitary sewer, have been constructed or installed on the particular property or to serve the property; and
    2. (2) “Unimproved” means that no buildings or other structures have been placed, constructed, installed, or erected on the property.
  2. (b) Whenever a tax entity acquires any unimproved or undeveloped property at a tax sale, at any time during its ownership of the property, the tax entity may transfer such property to the nongovernmental entity claiming contractual rights to the payment of fees or assessments duly recorded in covenants and restrictions, which shall be in full satisfaction of such fees and assessments; provided, that the tax entity and nongovernmental entity shall jointly approve the transfer and may negotiate a suspension or resolution of any such fees and assessments from the date the tax entity takes title at the tax sale until the transfer to the nongovernmental entity is complete. In the event that such transfer is jointly approved, then prior to the date that the nongovernmental entity takes title to the property, no judgment shall be entered against the tax entity regarding the payment of assessments or fees, nor shall any lien for such assessments or fees claimed by the nongovernmental entity be enforced. Any transfer of the property shall not affect any rights of redemption pursuant to part 27 of this chapter.
Backlinks (1)
History (1)
  • Acts 2014, ch. 814, § 1.
Part 27 Redemption
§ 67-5-2701. Procedure for redemption of property.
  1. (a)
    1. (1)
      1. (A) Upon entry of an order confirming a sale of a parcel, a right to redeem shall vest in all interested persons. The right to redeem shall be exercised within the time period established by this subsection (a) beginning on the date of the entry of the order confirming the sale, but in no event shall the right to redeem be exercised more than one (1) year from that date. The redemption period of each parcel shall be determined by the court prior to the tax sale of the parcel and may also be stated in the order confirming the sale.
      2. (B) Unless the court finds sufficient evidence to order a reduced redemption period pursuant to this section, the redemption period for each parcel shall be one (1) year.
      3. (C) The redemption period shall be determined for each parcel based on the period of delinquency. Once the period of delinquency is established, the redemption period shall be set on the following scale:
        1. (i) If the period of delinquency is five (5) years or less, the redemption period shall be one (1) year from the entry of the order confirming the sale;
        2. (ii) If the period of delinquency is more than five (5) years but less than eight (8) years, the redemption period shall be one hundred eighty (180) days from the entry of the order confirming the sale; or
        3. (iii) If the period of delinquency is eight (8) years or more, the redemption period shall be ninety (90) days from the entry of the order confirming the sale.
      4. (D) For all property for which a showing is made pursuant to subdivision (a)(2), the redemption period shall be thirty (30) days from the entry of the order confirming the sale without regard to the number of years of delinquent taxes owed on the property, beyond that required to make the property legally eligible for the sale.
    2. (2) A reasonable basis to believe that real property is vacant, or, in the case of vacant land, a reasonable basis to believe that the property is abandoned, shall, at a minimum, be based upon periodic inspections of the property over a two-month period at different times of the day where three (3) or more inspections reveal evidence of abandonment.
    3. (3) As used in this section:
      1. (A) “Evidence of abandonment” includes, but is not limited to, any of the following conditions:
        1. (i) Overgrown or dead vegetation;
        2. (ii) Accumulation of newspapers, circulars, flyers, or mail;
        3. (iii) Past due utility notices, disconnected utilities, or utilities not in use;
        4. (iv) Accumulation of trash, refuse, or other debris;
        5. (v) Absence of window coverings such as curtains, blinds, or shutters;
        6. (vi) One (1) or more boarded, missing, or broken windows;
        7. (vii) The property is open to casual entry or trespass;
        8. (viii) The property has a building or structure that is or appears structurally unsound or has any other condition that presents a potential hazard or danger to the safety of persons; or
        9. (ix) Any of the conditions in subdivisions (a)(3)(A)(i) - (viii) exist and, if there is a mortgage on the property, the mortgagor does not occupy the property and has informed the mortgagee or loan servicing company in writing that the mortgagor does not intend to occupy the property in the future;
      2. (B) “Period of delinquency” means, with respect to a parcel, the longest consecutive number of years the property taxes on that parcel are delinquent and have not been paid to a jurisdiction, and for which years the collection of property taxes for that jurisdiction is being sought in the tax sale;
      3. (C) “Person entitled to redeem” means, with respect to a parcel, any interested person, as defined in this chapter, as of the date of the sale or the date the motion to redeem is filed;
      4. (D) “Vacant and abandoned” with respect to real property:
        1. (i) Means:
          1. (a) There is a reasonable basis to believe the property is not occupied as determined in accordance with subdivision (a)(2); or
          2. (b) A court has determined that the property is a risk to the health, safety, or welfare of the public or any adjoining or adjacent property owners, or has otherwise declared the property unfit for occupancy; and
        2. (ii) Does not include:
          1. (a) An unoccupied building that is undergoing construction, renovation, or rehabilitation at the hands of a properly licensed contractor pursuant to a building permit; is proceeding to completion; and is in compliance with all applicable ordinances, codes, regulations, and statutes;
          2. (b) A building occupied on a seasonal basis that is otherwise secure;
          3. (c) A building that is secure, but is the subject of a probate action, action to quiet title, or other similar ownership dispute; provided, that the owners are exercising diligence in pursuit of resolution of the dispute;
          4. (d) A building damaged by a natural disaster and one (1) or more owners intend to repair and reoccupy the property; provided, that the owners are exercising diligence in pursuit of completion of repairs at the property in accordance with subdivision (a)(3)(D)(ii)(a); or
          5. (e) Any property occupied by the owner, a relative of the owner, or a tenant lawfully in possession; provided, that neither subdivision (a)(3)(A)(viii) nor subdivision (a)(3)(D)(i)(b) applies to the property.
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  2. (b)
    1. (1) In order to redeem a parcel, the person entitled to redeem shall file a motion to such effect in the proceedings in which the parcel was sold. The motion shall describe the parcel, the date of the sale of the parcel, the date of the entry of the order confirming the sale and shall contain specific allegations establishing the right of the person to redeem the parcel. Prior to the filing of the motion to redeem, the movant shall pay to the clerk of the court an amount equal to the total amount of delinquent taxes, penalty, interest, court costs, and interest on the entire purchase price paid by the purchaser of the parcel. The interest shall be at the rate of twelve percent (12%) per annum, which shall begin to accrue on the date the purchaser pays the purchase price to the clerk and continuing until the motion to redeem is filed. If the entire amount owing is not timely paid to the clerk or if the motion to redeem is not timely filed, the redemption shall fail.
    2. (2) In any motion to enforce a right of redemption brought by a transferee against a tax sale purchaser or other interested party:
      1. (A) The movant shall serve a copy of the motion to redeem upon the tax sale purchaser, each grantee of the tax sale purchaser's interest in the parcel, and all other interested persons as of the date the motion to redeem is filed, in the manner set forth in Rule 5 of the Tennessee Rules of Civil Procedure for pleadings not asserting new or additional claims for relief.
      2. (B) The motion to redeem must be denied on the objection or response to the motion to redeem by the tax sale purchaser or any other interested party if it appears that the transferee is engaged in speculation or profiteering with respect to such right of redemption;
      3. (C) Such speculation and profiteering is presumed if it appears that the transfer of the right of redemption was made for consideration in an amount less than the purchase price paid by the tax sale purchaser at the tax sale minus the amount the debtor would have been required to pay to redeem the property under this chapter; and
      4. (D) If a motion to redeem by a transferee is denied under this subdivision (b)(2) based on a finding by the court of such speculation and profiteering, the court may award reasonable attorney's fees to the tax sale purchaser or any other interested party challenging the motion to redeem.
    3. (3) Subdivision (b)(2) is intended to:
      1. (A) Further the public policies of this state of protecting the interests of owners of real property subject to debt, protecting the integrity of the tax sale process, providing reliable tax sale titles to purchasers, and prohibiting the profiteering and speculation in rights of redemption; and
      2. (B) Be remedial and construed to apply to any existing rights of redemption.
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  3. (c) Upon the filing of the motion to redeem and the payment of the required amount, the clerk shall within ten (10) days send a notice of the filing of the motion to redeem to the tax sale purchaser and each grantee of the tax sale purchaser's interest who has filed notice of the purchase and a mailing address with the clerk. The notice must be forwarded to the last known address of the addressee. The notice must state the amount paid at the time of the filing of the motion to redeem and refer the persons to this section.
  4. (d) The purchaser may within thirty (30) days after the mailing of the notice of redemption, file a response seeking additional funds to be paid by the proposed redeemer to compensate the purchaser for amounts expended by the purchaser for the purposes set out in subsection (e). The response must specifically set out the basis for each category of additional funds claimed. The response may also allege that the motion to redeem was not properly or timely filed. If no response is timely filed, the court shall determine whether the redemption has been properly made, and if so, must cause an order to be entered declaring the parcel redeemed.
  5. (e) Additional sums to be paid by the proposed redeemer at the demand of the purchaser, shall include the following:
    1. (1) Additional ad valorem taxes, penalty, interest and court costs paid by the purchaser secured by a lien against the parcel, plus interest thereon at the rate set forth in subsection (b), accruing from the date of payment of the additional taxes by the purchaser until the date of payment by the proposed redeemer pursuant to order of the court;
    2. (2) Reasonable payments made by the purchaser for insurance on the parcel and any improvements thereon;
    3. (3) Reasonable cost paid by the purchaser to avoid permissive waste of the parcel;
    4. (4) Reasonable expenses paid by the purchaser as a result of a judicial or administrative order or other official notice requiring the purchaser to immediately bring the property into compliance with applicable building code or zoning regulations;
    5. (5) Reasonable payments by the purchaser for homeowner's association dues or obligations resulting from covenants running with the land which are secured by a lien against the parcel; and
    6. (6) Additional interest at the rate set out in subsection (b), accruing from the date the motion to redeem was filed until the date the purchaser's response was filed. If the court determines that the purchaser has not delayed consideration of the motion to redeem and that any response filed by the purchaser for additional funds was based on a reasonable expectation that the expenditures of the purchaser were reimbursable pursuant to this section, then the court may require the proposed redeemer to also pay additional interest at the same rate, accruing from the date the purchaser's response was filed until the date of such payment. If the court determines that disposition of a redemption motion has been unreasonably delayed, the court may decline or limit an award of additional interest under this subdivision (e)(6).
  6. (f) Any additional funds ordered to be paid by the proposed redeemer under this section shall be paid to the clerk prior to the later of the following dates:
    1. (1) The date of the expiration of the redemption period; or
    2. (2) Thirty (30) days after the entry of the order allowing additional funds.
  7. (g) If the proposed redeemer timely pays the full amount of any additional funds ordered by the court, the court shall declare that the property has been redeemed.
  8. (h) If the proposed redeemer fails to timely pay the full amount of any additional funds ordered by the court, the redemption shall fail and any funds paid by the proposed redeemer shall be refunded to him less the clerk's fee and any other court costs.
  9. (i) In the event a person tenders the full amount owing in the proceeding at a time after the date of sale and prior to the entry of an order confirming the sale, the person shall also pay interest computed as established by subsection (b) on the total purchase price paid by the purchaser.
  10. (j) The court in which the proceedings are pending may order that any proposed redeemer shall also pay to the clerk the amount necessary to record any orders of the court in the office of the register of deeds. Such payment may be required to be paid upon the filing of the motion to redeem or upon determining whether any additional funds are to be allowed.
  11. (k) Upon any order pertaining to redemption becoming final, the clerk shall make such disbursements as are provided in the order.
  12. (l) In the event the court directs the delinquent tax attorney or an attorney ad litem to participate in the redemption portion of the proceedings as an assistance to the court, the court may allow a reasonable attorneys fee to be paid by either the movant or the purchaser as directed by the court.
  13. (m) In the event all parties to the action waive their right to appeal all issues in the cause, the clerk shall immediately disburse all amounts owing.
  14. (n) Upon entry of an order of the court declaring that the redemption is complete, title to the parcel shall be divested out of the purchaser, and the clerk shall promptly refund the purchase money and pay all sums due to the purchaser under this section. The interests of the taxpayer and other interested parties, or their successors in interest, shall be restored to that state which existed as of the date of entry of the order confirming the sale. Any lienholder who redeems the parcel may thereafter proceed to foreclose upon the parcel or otherwise enforce such lien.
  15. (o) During the redemption period, the purchaser shall have no obligation to purchase insurance on the parcel and shall not be liable to a person redeeming the parcel for damages to the parcel during such redemption period unless such damages are directly caused by intentional acts of the purchaser. This subsection (o) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law.
  16. (p) During the redemption period and thereafter, a taxing entity which has purchased a parcel pursuant to § 67-5-2501 shall have no obligation to preserve the value of the parcel. This subsection (p) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law.
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History (7)
  • Acts 2014, ch. 883, § 17
  • 2015, ch. 414, §§ 18-24
  • 2015, ch. 486, § 1
  • 2017, ch. 299, §§ 16-18
  • 2018, ch. 778, § 1
  • 2019, ch. 170, § 7
  • 2024, ch. 967, §§ 25-28.
§ 67-5-2702. Motion setting forth claim to excess sale proceeds — Service of motion — Hearing on motion — Recovery of excess proceeds paid in error.
  1. (a) Following entry of the order of confirmation of sale, any interested person, as defined in this chapter, may file a motion with the court requesting disbursement of any excess sale proceeds pursuant to this section.
  2. (b) A copy of such motion shall be served, in the manner provided by the Tennessee Rules of Civil Procedure for motions not asserting new or additional claims for relief, on all interested persons as of the date of the filing of such motion, no later than thirty (30) days prior to the hearing date of the motion.
  3. (c) At the hearing, the court shall order that any remaining redemption period shall be terminated as to the movant and as to any other person entitled to redeem property who consents to such termination as evidenced by their signature on such order, and any excess proceeds be paid according to the following priorities to each party that establishes its claim to the proceeds:
    1. (1) To the tax entity or entities prosecuting the delinquent tax sale, for any remaining or subsequent outstanding taxes that are a lien against the property;
    2. (2) To any lienholder, private or public, holding a claim against the property at the time of the tax sale, for the amount proven to be due under such lien, in accordance with priorities established by applicable law;
    3. (3) To any lienholder, private or public, holding a claim against the property arising after the tax sale, for the amount proven to be due under such lien, in accordance with priorities established by applicable law;
    4. (4) To any taxpayer, according to such taxpayer's interest at the time of the tax sale; provided, that such taxpayer was a defendant in the underlying action, or acquired by will or intestate succession the interest in the property of a former taxpayer who was a defendant in the underlying action; and
    5. (5) Any remaining excess proceeds shall be subject to the Uniform Unclaimed Property Act, compiled in title 66, chapter 29, part 1. A motion for excess proceeds may be filed in the court in which the proceeding is pending until such time as the funds are actually forwarded to the state pursuant to the Uniform Unclaimed Property Act. The presumption of abandonment shall not arise until the final determination of all filed motions for redemption and excess proceeds or one (1) year following the expiration of the redemption period for that parcel, whichever is later.
  4. (d) A person who claims to be the owner of an interest in a parcel, which is the subject of a motion to claim any excess proceeds from a delinquent tax sale shall record the document effecting such ownership, or an abstract thereof, or an affidavit of heirship, in the office of the register of deeds for the county in which the parcel is located, prior to thirty (30) calendar days before the day on which the motion is scheduled to be heard. A person who fails to timely record such document shall not be entitled to notice of the motion to claim excess proceeds as referred to in subsection (a).
  5. (e) In the event an interested person who failed to receive notice of the motion to claim excess proceeds, absent any fault on the interested person's part, claims that a person has received excess proceeds in error or in excess of the person's correct share to the detriment of the interested person, the interested person shall have a right of action against such person for the recovery of such excess proceeds as may have been paid in error. Such right of action shall be the exclusive remedy of such an interested person. In addition to any other available actions, the interested person may, by motion, seek relief from the order disbursing the excess proceeds, in the court in which the tax proceeding was filed. Neither the court clerk nor an attorney participating in a proceeding to determine distribution of excess proceeds pursuant to subsection (g) shall be liable for the failure of an interested person to receive notice of the proceeding or for any excess proceeds paid in error.
  6. (f) For the purposes of this section, “in accordance with priorities established by applicable law” means that the priority of the interests in the parcel shall transfer to the proceeds from the sale of the parcel.
  7. (g) In the event the court directs the delinquent tax attorney or an attorney ad litem to participate in the excess sale proceeds portion of the proceedings as an assistance to the court, the court may allow a reasonable attorney's fee to be assessed as directed by the court.
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History (4)
  • Acts 2014, ch. 883, § 18
  • 2015, ch. 414, §§ 25-28
  • 2017, ch. 457, §§ 2, 5
  • 2018, ch. 778, §§ 2, 3.
§ 67-5-2703. Applicability and intent of § 21-1-205.
  1. Section 21-1-205 is not applicable to property tax proceedings, tax liens, or the enforcement of such tax liens. This section is intended to be procedural and remedial in its application and is made applicable retroactively to the extent allowed by law.
History (1)
  • Acts 2019, ch. 170, § 8.
Part 28 Waiver
§ 67-5-2801. Industrial and commercial personal property taxes, penalties, interest, attorney fees and costs — Waiver of enforcement and collection.
  1. (a) The trustee or collector may request the delinquent tax attorney to seek court approval in order to waive the enforcement and collection of all, but not a portion of, industrial and commercial personal property taxes, penalties, interest, attorney fees and costs. All of the following must be determined and attested to by the trustee or collector before a court may approve a waiver:
    1. (1) The taxpayer has ceased all business operations;
    2. (2) No personal property subject to the tax can be found; and
    3. (3) Neither fraud nor an intention to avoid payment of the taxes on the part of the taxpayer caused the circumstances giving rise to such waiver.
  2. (b) In order to waive the enforcement and collection of taxes, including penalties, interest, or attorney fees and costs, imposed on public utility personal property or personal property of modern market telecommunications providers, the trustee or collector must first confirm with the comptroller of the treasury that such taxpayer's local assessment only includes personal property and does not include any real property. If such taxpayer is still operating, then no waiver may be requested or approved even if the local assessment only includes personal property and no personal property can be found in the trustee's or the collector's jurisdiction. If such taxpayer has ceased all operations and the local assessment does not include any real property, then the trustee or the collector may request a waiver in accordance with subdivisions (a)(1)-(3).
  3. (c) The trustee or collector is required to submit a report to the chief executive officer of the local government and the county assessor of all waivers approved by the court when no delinquent tax lawsuit has been filed. The report shall contain the taxpayer's name and amount of taxes, penalties, interest, attorney fees, and costs waived. The waivers approved by the court under this subsection (c) are to be included and written as a credit in the monthly settlement and annual statement in accordance with § 67-5-1903.
  4. (d) With respect to delinquent personal property taxes being waived under this section, for which the delinquent lawsuit has been filed, the court having jurisdiction of the delinquent tax lawsuit may, upon motion by the delinquent tax attorney and a finding that the factors outlined in subdivisions (a)(1)-(3) or subsection (b) exist, order the waiver of enforcement and collection of all, but not a portion of, such personal property taxes, penalties, interest, attorney fees and costs.
History (4)
  • Acts 1999, ch. 163, § 1
  • 2013, ch. 353, § 18
  • 2017, ch. 490, § 11
  • 2019, ch. 220, § 2.
§ 67-5-2802. Real property taxes — Waiver of penalties, interest and attorney fees.
  1. All or any portion of penalty and interest and attorney fees that are due on real property taxes may be waived by order of the court having jurisdiction of the delinquent tax lawsuit upon a motion and a finding that the following factors exist:
    1. (1) The property has been determined to be environmentally hazardous pursuant to federal or state environmental protection or hazardous materials laws by those officials, agencies or courts with the responsibility for enforcing the environmental protection or hazardous materials laws;
    2. (2) The county legislative body has determined that no bid should be made on behalf of the governmental entity to which taxes are owed pursuant to § 67-5-2506;
    3. (3) The waiver is made in conjunction with the remediation and cleanup of the property; and
    4. (4) The circumstances giving rise to the waiver did not result from fraud or an intention to avoid payment.
History (1)
  • Acts 1999, ch. 163, § 1.
§ 67-5-2803. No authority to waive, compromise, remit, prorate, apportion or release property taxes, penalty, interest or court costs nor first lien securing same.
  1. In order to promote equality and uniformity of taxation, except as provided in this part, § 67-5-1806, § 67-5-2507, or § 67-5-2508, no person, public official, governmental entity or court shall have the power or authority to waive, compromise, remit, prorate, apportion or release property taxes, penalty, interest or court costs nor the first lien securing the same.
History (2)
  • Acts 2014, ch. 883, § 19
  • 2022, ch. 672, § 1.
Chapter 6 Sales and Use Taxes
Part 1 General Provisions
§ 67-6-101. Short title — Nature of tax.
  1. This chapter shall be known and may be cited as the “Retailers' Sales Tax Act,” and the tax imposed by this chapter shall be in addition to all other privilege taxes, whether levied in the form of excise, license, or privilege taxes, and shall be in addition to all other fees and taxes levied.
History (3)
  • Acts 1947, ch. 3, §§ 1, 3
  • C. Supp. 1950, §§ 1248.50, 1248.52 (Williams, §§ 1328.22, 1328.24)
  • T.C.A. (orig. ed.), §§ 67-3001, 67-3009.
§ 67-6-102. Chapter definitions — Definitions applicable for taxation of charges for mobile telecommunications services.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Advertising agency” means a business, more than eighty percent (80%) of whose gross receipts in the previous taxable year were, or in the first taxable year are reasonably projected to be, from charges for advertising services. For purposes of this definition, “gross receipts” does not include charges for printing, imprinting, reproduction, publishing of tangible personal property or photography to the extent that:
      1. (A) The activity was not performed by the business itself but was contracted out to another business; and
      2. (B) The charges for the activity were passed through the business to its client;
    2. (2) “Advertising materials” means tangible personal property or its digital equivalent produced to advertise a product, service, idea, concept, issue, place or thing, including, but not limited to, brochures, catalogs and point-of-purchase materials, but not including preliminary artwork, and not including original sound recordings or video recordings produced by recording studios, television studios, video production studios or by or for advertising agencies, or masters produced from the original recordings, regardless of whether the original recordings or masters are produced in a tangible medium or a digital equivalent;
    3. (3)
      1. (A) “Advertising services” means services rendered by an advertising agency to promote a product, service, idea, concept, issue, place or thing, including services rendered to design and produce advertising materials prior to the acceptance of the advertising materials for reproduction or publication, including, but not limited to:
        1. (i) Advice and counseling regarding marketing and advertising;
        2. (ii) Strategic planning for marketing and advertising;
        3. (iii) Consumer research;
        4. (iv) Account planning;
        5. (v) Public relations;
        6. (vi) Design;
        7. (vii) Layout;
        8. (viii) Preparation of preliminary art;
        9. (ix) Creative consultation, coordination, media placement, direction and supervision;
        10. (x) Script and copywriting;
        11. (xi) Editing;
        12. (xii) Supervision of the production of advertising materials, including quality control;
        13. (xiii) Direct mail; and
        14. (xiv) Account management services;
      2. (B) “Advertising services” does not include the production of final artwork or advertising materials;
    4. (4) “Agricultural purposes” means operating tractors or other farm equipment used exclusively, whether for hire or not, in plowing, planting, harvesting, raising or processing of farm products at a farm, nursery or greenhouse, operating farm irrigation systems, or operating motor vehicles or other logging equipment used exclusively, whether for hire or not, in cutting and harvesting trees, when the vehicles or equipment are not operated upon the public highways of this state;
    5. (5) “Aircraft” has the same meaning used in § 42-1-101;
    6. (6) “Alcoholic beverages” means beverages that are suitable for human consumption and contain one-half of one percent (0.5%) or more of alcohol by volume;
    7. (7) “Ancillary services” means services that are associated with, or incidental to, the provision of telecommunications services, including, but not limited to, detailed telecommunications billing service, directory assistance service, vertical service, and voice mail service. As used in this subdivision (7):
      1. (A) “Conference bridging service” means an ancillary service that links two (2) or more participants of an audio or video conference call, and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge;
      2. (B) “Detailed telecommunications billing service” means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement;
      3. (C) “Directory assistance” means an ancillary service of providing telephone number information, and address information;
      4. (D) “Vertical service” means an ancillary service that is offered in connection with one (1) or more telecommunications services, that offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services; and
      5. (E) “Voice mail service” means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service;
    8. (8)
      1. (A) “Business” means any activity engaged in by any person, or caused to be engaged in by such person, with the object of gain, benefit, or advantage, either direct or indirect;
      2. (B) “Business” does not include occasional and isolated sales or transactions by a person not regularly engaged in business, or the occasional and isolated sale at retail or use of services sold by or purchased from a person not regularly engaged in business as a vendor of taxable services, or from one who is such a vendor but is not normally a vendor with respect to the services sold or purchased in such occasional or isolated transaction. “Business” does not include those occasional or isolated sales or transactions by such a person involving mobile homes or house trailers, as defined by § 55-4-111, when the consummation of such exclusively involves the assumption by the purchaser of a previously existing finance contract and no other consideration is received by the seller. “Business” does not include any sales or use tax of tangible personal property of any type sold directly to consumers by any person, including, but not limited to, the Girl Scouts or county fairs; provided, however, that the tangible personal property is not regularly sold by the person or is regularly sold by the person only during a temporary sales period that occurs on a semiannual, or less frequent, basis, or, if sold by a volunteer fire department, only during a temporary sales period that occurs no more than four (4) times per calendar year. For charitable entities whose primary purpose is fundraising in support of a city, county, or metropolitan library system, “business” does not include sales, including online sales, that the charitable entity elects to make in lieu of two (2) semiannual temporary sales periods; provided, that the sales do not exceed three hundred thousand dollars ($300,000) per calendar year; and provided further, that the election by the charitable entity must remain in effect for no less than four (4) years. For a community foundation described in 26 U.S.C. § 170(c)(2), “business” does not include sales that the community foundation elects to make in lieu of two (2) semiannual temporary sales periods; provided, that in any calendar year, the sales shall take place during no more than two (2) auctions, which last no more than twenty-four (24) hours, in each county designated to receive charitable support from a fund or trust that comprises a component part of the community foundation, as described in 26 CFR § 1.170A-9(f)(11)(ii);
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      3. (C) “Business” includes occasional and isolated sales or transactions of aircraft, vessels, or motor vehicles between corporations and their members or stockholders and also includes such transactions caused by the merger, consolidation, or reorganization of corporations. “Business” also includes occasional and isolated sales or transactions of aircraft, vessels, or motor vehicles between partnerships and the partners thereof and transfers between separate partnerships. Transfers caused by the dissolution of a partnership due solely to a partner, in a partnership composed of three (3) or more persons, voluntarily ceasing to be associated in the carrying on of business of the partnership, as provided in § 61-1-128 [repealed], is not included in “business.” “Business” shall be construed to include occasional and isolated sales or transactions by such a person involving aircraft, vessels or motor vehicles, which terms include trailers and special motor equipment sold in conjunction therewith, as defined by and required to be registered under the laws of Tennessee with an agency of this state or under the laws of the United States with an agency of the federal government, unless such sales or transactions are otherwise exempt under this chapter or are sales between persons who are married, lineal relatives or spouses of lineal relatives, or siblings. Such sales or transactions involving aircraft based in this state shall be presumed to be made and taxable in this state; and any registration reflecting such aircraft that are so based shall constitute evidence thereof;
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    9. (9) “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. Candy shall not include any preparation containing flour and shall require no refrigeration;
    10. (10) “Certified automated system” means software certified under the Streamlined Sales and Use Tax Agreement (SSUTA) to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction;
    11. (11) “Certified service provider” means an agent certified under the Streamlined Sales and Use Tax Agreement to perform all of the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases;
    12. (12) “Clothing” means all human wearing apparel suitable for general use;
    13. (13) “Clothing accessories or equipment” means incidental items worn on the person or in conjunction with clothing;
    14. (14) “Coin-operated telephone service” means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate;
    15. (15) “Commissioner” means and includes the commissioner of revenue or the commissioner's duly authorized assistants;
    16. (16) “Common carrier” means every person holding a certificate of public convenience and necessity as a common carrier from the interstate commerce commission or the United States department of transportation or its predecessor agency of the federal government;
    17. (17) “Computer” means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions;
    18. (18) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task;
    19. (19) “Computer software maintenance contract” means a contract that obligates a person to provide a customer with future updates or upgrades to computer software, support services with respect to computer software, or both. However, “computer software maintenance contract” does not include telephone or other support services that are optional and are sold separately and invoiced separately and do not include any transfer, repair or maintenance of computer software on the part of the seller;
    20. (20) “Construction machinery” means machinery designed for and used exclusively in the preparation for, assembly, fabrication, and finishing of permanent improvements to real estate;
    21. (21) “Cost price” means the actual cost of articles of tangible personal property without any deductions therefrom on account of the cost of materials used, labor, or service costs, transportation charges, or any expenses whatsoever;
    22. (22) “Data center” means a building or buildings, either newly constructed, expanded, or remodeled, housing high-tech computer systems and related equipment;
    23. (23) “Dealer” means every person, as used in this chapter, including Model 1, Model 2, and Model 3 sellers, where the context requires, who:
      1. (A) Manufactures or produces tangible personal property for sale at retail, for use, consumption, distribution, or for storage to be used or consumed in this state;
      2. (B) Imports, or causes to be imported, tangible personal property from any state or foreign country, for sale at retail, for use, consumption, distribution, or for storage to be used or consumed in this state;
      3. (C) Sells at retail, or who offers for sale at retail, or who has in such person's possession for sale at retail, or for use, consumption, distribution, or storage to be used or consumed in this state, tangible personal property as defined in this section;
      4. (D) Has sold at retail, used, consumed, distributed, or stored for use or consumption in this state, tangible personal property and who cannot prove that the tax levied by this chapter has been paid on the sale at retail, the use, the consumption, the distribution, or the storage of the tangible personal property;
      5. (E) Leases or rents tangible personal property, as defined in this chapter, for a consideration, permitting the use or possession of the property without transferring title to such property;
      6. (F) Is the lessee or renter of tangible personal property, as defined in this chapter, and who pays to the owner of such property a consideration for the use or possession of such property without acquiring title to such property;
      7. (G) Maintains or has within this state, directly or by a subsidiary, an office, distributing house, sales room or house, warehouse, or other place of business;
      8. (H) Furnishes any of the things or services taxable under this chapter;
      9. (I) Has any representative, agent, salesperson, canvasser or solicitor operating in this state, or any person who serves in such capacity, for the purpose of making sales or the taking of orders for sales, regardless of whether such representative, agent, salesperson, canvasser or solicitor is located here permanently or temporarily, and regardless of whether an established place of business is maintained in this state;
      10. (J) Engages in the regular or systematic solicitation of a consumer market in this state by the distribution of catalogs, periodicals, advertising fliers, or other advertising, or by means of print, radio or television media, by telegraphy, telephone, computer data base, cable, optic, microwave, or other communication system;
      11. (K) Uses tangible personal property, whether the title to such property is in such person or some other entity, and whether or not such other entity is required to pay a sales or use tax, in the performance of such person's contract or to fulfill such person's contract obligations, unless such property has previously been subjected to a sales or use tax, and the tax due thereon has been paid;
      12. (L) Sells at retail or charges admission, dues or fees as defined in this chapter;
      13. (M) Rents or provides space to a dealer without a permanent location in this state or to dealers who are registered for sales tax at other locations in this state, but who are making sales at this location on a less than permanent basis; provided, that “dealer” does not include flea market operators; or
      14. (N) Acts as a marketplace facilitator;
    24. (24) “Delivered electronically” means delivered to the purchaser by means other than tangible storage media;
    25. (25)
      1. (A) “Delivery charges” means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services, including, but not limited to, transportation, shipping, postage, handling, crating, and packing. Delivery charges shall not include delivery for direct mail when the charges are separately stated on an invoice or similar billing document given to the purchaser. If the shipment includes exempt property and taxable property, the seller should allocate the delivery charge by using:
        1. (i) A percentage based on the total sales price of the taxable property compared to the sales prices of all property in the shipment; or
        2. (ii) A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment;
      2. (B) The seller shall tax the percentage of the delivery charge allocated to the taxable property but does not have to tax the percentage allocated to the exempt property;
    26. (26) “Delivery network company” means a business entity that maintains an internet website or mobile application used to facilitate delivery services for the sale of local products;
    27. (27) “Delivery services” means the pickup of one (1) or more local products from a local merchant and delivery of the local products to a customer. “Delivery services” do not include any delivery requiring over fifty (50) miles of travel from the local merchant to the customer;
    28. (28) “Dietary supplement” means any product, other than tobacco, intended to supplement the diet that:
      1. (A) Contains one (1) or more of the following dietary ingredients:
        1. (i) A vitamin;
        2. (ii) A mineral;
        3. (iii) An herb or other botanical;
        4. (iv) An amino acid;
        5. (v) A dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
        6. (vi) A concentrate, metabolite, constituent, extract, or combination of any ingredient described in subdivisions (28)(A)(i)-(v);
      2. (B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for ingestion in such a form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and
      3. (C) Is required to be labeled as a dietary supplement, identifiable by the supplement facts box found on the label and as required pursuant to 21 CFR 101.36;
    29. (29) “Digital audio works” means works that result from the fixation of a series of musical, spoken, or other sounds, that are transferred electronically, including prerecorded or live songs, music, readings of books or other written materials, speeches, ringtones, or other sound recording. For purposes of this subdivision (29), “ringtones” means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication. “Digital audio works” does not include audio greeting cards sent by electronic mail;
    30. (30) “Digital audio-visual works” means a series of related images that, when shown in succession, impart an impression of motion, together with accompanying sounds, if any, that are transferred electronically. “Digital audio-visual works” includes motion pictures, musical videos, news and entertainment programs, and live events. “Digital audio-visual works” does not include video greeting cards sent by electronic mail or video or electronic games;
    31. (31) “Digital books” means works that are generally recognized in the ordinary and usual sense as “books” that are transferred electronically, including works of fiction and nonfiction and short stories. “Digital books” does not include newspapers, magazines, periodicals, chat room discussions or weblogs;
    32. (32) “Direct mail” means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items are not billed directly to the recipients. “Direct mail” includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. “Direct mail” does not include multiple items of printed material delivered to a single address;
    33. (33) “Direct pay permit” means special written permission granted to a taxpayer by the commissioner to make all purchases free of the sales or use tax and report all sales or use tax due directly to the department;
    34. (34) “Direct pay permit holder” means a taxpayer who holds a direct pay permit;
    35. (35) “Drug” means a compound, substance or preparation, and any component of a compound, substance or preparation, other than food and food ingredients, dietary supplements or alcoholic beverages:
      1. (A) Recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them;
      2. (B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
      3. (C) Intended to affect the structure or any function of the body;
    36. (36)
      1. (A) “Durable medical equipment” means equipment that:
        1. (i) Can withstand repeated use;
        2. (ii) Is primarily and customarily used to serve a medical purpose;
        3. (iii) Generally is not useful to a person in the absence of illness or injury; and
        4. (iv) Is not worn in or on the body;
      2. (B) “Durable medical equipment” includes repair and replacement parts for the equipment; provided, however, that the repair and replacement parts shall not include parts, components, or attachments that are for single patient use. “Durable medical equipment” does not include mobility enhancing equipment;
    37. (37) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;
    38. (38) “Energy resource recovery facility” means a facility for the production of energy in the form of steam or chilled water from the controlled burning of combustible materials, including, but not limited to, coal, fuel oil, or natural gas, where such energy is to be used in a system for heating and cooling five (5) or more separate buildings;
    39. (39) “Fabricating or processing tangible personal property for resale” means only tangible personal property that is fabricated or processed for resale and ultimate use or consumption off the premises of the one engaging in such fabricating or processing, or hot mix asphalt and crushed stone fabricated by a contractor for use by the contractor in highway or road construction projects funded by tax revenues. “Fabricating or processing tangible personal property for resale” shall be deemed to include providing fabrication and repair services to aircraft owned by nonaffiliated business entities whether commercial, governmental or foreign; provided, that the dealer performing such services qualifies for the credit allowed in § 67-4-2109(b). “Fabricating or processing tangible personal property for resale” shall not include any other type of repair services. “Fabricating or processing tangible personal property for resale” includes the processing of photographic film into negatives and/or photographic prints for resale;
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    40. (40) “Final artwork” means tangible personal property or its digital equivalent that is suitable for use in producing advertising materials and includes, but is not limited to, photographs, illustrations, drawings, paintings, calligraphy, models and similar works that are used to produce advertising materials, but does not include preliminary artwork or original sound recordings or video recordings produced by recording studios, television studios, video production studios, or by or for advertising agencies, or masters produced from the original recordings regardless of whether the original recordings or masters are produced in a tangible medium or a digital equivalent;
    41. (41) “Flea market” means a place of business that provides space more than two (2) times a year to two (2) or more persons for the purpose of making sales at retail of tangible personal property that, during the usual course of being displayed or offered for sale, is not stored or displayed permanently at that space. “Flea market” does not include hotels, convention centers, municipal auditoriums, municipal coliseums, or gun shows, if such gun shows are sponsored by a not-for-profit corporation;
    42. (42) “Flea market operator” means any person who receives compensation for providing space more than two (2) times a year to two (2) or more persons for the purpose of making sales at retail of tangible personal property that, during the usual course of being displayed or offered for sale, is not stored or displayed permanently at that space. “Flea market operator” does not include a hotel, convention center, municipal auditorium, municipal coliseum, or gun show operator, if such gun shows are sponsored by a not-for-profit corporation;
    43. (43) “Food and food ingredients” means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. “Food and food ingredients” does not include alcoholic beverages, tobacco, candy, dietary supplements, or prepared food;
    44. (44) “Grooming and hygiene products” are soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the items meet the definition of over-the-counter drugs;
    45. (45) “Gross sales” means the sum total of all retail sales of tangible personal property and all proceeds of services taxable under this chapter as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this chapter;
    46. (46) “Industrial machinery” means:
      1. (A)
        1. (i) Machinery, apparatus and equipment with all associated parts, appurtenances and accessories, including hydraulic fluids, lubricating oils, and greases necessary for operation and maintenance, repair parts and any necessary repair or taxable installation labor therefor, that is necessary to, and primarily for, the fabrication or processing of tangible personal property for resale and consumption off the premises, or pollution control facilities primarily used for air pollution control or water pollution control, where the use of such machinery, equipment or facilities is by one who engages in such fabrication or processing as one's principal business or who engages in the fabrication or processing of materials into trusses, window units or door units for resale as part of the principal business of the sale of building supplies either within or without this state, or such use by a county, municipality, the department of general services for the Megasite Authority of West Tennessee created pursuant to the Megasite Authority of West Tennessee Act of 2021, compiled in title 64, chapter 9, or water and wastewater treatment authority created by private act or pursuant to the Water and Wastewater Treatment Authority Act, compiled in title 68, chapter 221, part 6, or a contractor pursuant to a contract with the county, municipality, the department of general services for the Megasite Authority of West Tennessee, or water and wastewater treatment authority for use in water pollution control or sewage systems, also mining machinery, apparatus equipment and materials, with all associated parts and accessories, including repair parts and any necessary repair or installation labor, that is necessary to and primarily for:
          1. (a) The removal, extraction or detachment of coal from land by surface, underground or other lawful methods of mining and the construction or maintenance of necessary ingress and egress from the mine;
          2. (b) The removal, handling and replacement of overburden and spoils materials; or
          3. (c) The reclamation of mined areas reclaimed under state or federal laws, rules or regulations;
        2. (ii) As used in this chapter, “pollution control facilities” means any system, method, improvement, structure, device or appliance appurtenant thereto used or intended for the primary purpose of eliminating, preventing or reducing air or water pollution, or for the primary purpose of treating, pretreating, recycling or disposing of any hazardous or toxic waste, solid or liquid, when such pollutants are created as a result of fabricating or processing by one who engages in fabricating or processing as such person's principal business activity, which, if released without such treatment, pretreatment, modification or disposal, might be harmful, detrimental or offensive to the public and the public interest;
      2. (B) Machinery that is necessary to and primarily for remanufacturing industrial machinery as defined in subdivision (46)(A) when such utilization is by one whose principal business is that of remanufacturing industrial machinery. For the purposes of this subdivision (46)(B), “remanufacturing” means making new or different products with new or different functions from the scrap materials used to make them;
      3. (C) Machinery utilized in the pre-press and press operations in the business of printing, including plates and cylinders, and including the component parts and fluids or chemicals necessary for the specific mechanical or chemical actions or operations of such machinery, plates and cylinders, regardless of whether or not the operations occur at the point of retail sales;
      4. (D) Such industrial machinery necessary to and primarily for the fabrication and processing of tangible personal property for resale or used primarily for the control of air pollution or water pollution includes, but is not limited to:
        1. (i) Machines used for generating, producing, and distributing utility services, electricity, steam, and treated or untreated water; and
        2. (ii) Equipment used in transporting raw materials from storage to the manufacturing process, and transporting finished goods from the end of the manufacturing process to storage;
      5. (E)
        1. (i) Machinery used to package manufactured items, where the use of such machinery is by a person whose principal business is fabricating or processing tangible personal property for resale. Notwithstanding the principal business of the user, this exemption shall also apply where the use of such machinery at a location is to package automotive aftermarket products manufactured at other locations by the same person or by a corporation affiliated with the manufacturing corporation such that:
          1. (a) Either corporation directly owns or controls one hundred percent (100%) of the capital stock of the other corporation; or
          2. (b) One hundred percent (100%) of the capital stock of both corporations is directly owned or controlled by a common parent;
        2. (ii) To “package,” as used in subdivision (46)(E)(i), refers only to the fabrication and/or installation of that packaging that will accompany the product when sold at retail;
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      6. (F) Such industrial machinery necessary to and primarily for the fabrication or processing of tangible personal property for resale and consumption off the premises or used primarily for the control of air pollution or water pollution does not include machinery, apparatus and equipment used prior to or after equipment exempted by subdivision (46)(D)(ii), and does not include equipment used for maintenance or the convenience or comfort of workers;
      7. (G) Machinery, apparatus and equipment with all associated parts, appurtenances and accessories, including hydraulic fluids, lubricating oils and greases necessary for operation and maintenance, repair parts and any necessary repair or taxable installation labor therefor, that is necessary to, and primarily for, the fabricating or processing of prescription eyewear, where a majority of such eyewear is ultimately dispensed to patients in states other than Tennessee;
      8. (H)
        1. (i) Material handling equipment and racking systems, used by the taxpayer directly and primarily for the storage or handling and movement of tangible personal property in a qualified, new or expanded warehouse or distribution facility, that are purchased beginning one (1) year prior to the start of the construction or expansion and ending one (1) year after the substantial completion of the construction or expansion of the facility, but in no event shall the period exceed three (3) years. “Qualified, new or expanded warehouse or distribution facility” means a new or expanded facility, that meets the requirements set out in this subdivision (46)(H), for the storage or distribution of finished tangible personal property. Such facilities shall not include a building where tangible personal property is fabricated, processed, assembled or sold over-the-counter to consumers, except for taxpayers that qualify under chapter 185 of the Public Acts of 1995, or are configuring, testing or packaging computer products. “Configuring” computer products means integrating a computer with peripheral computer products, such as a hard disk drive, additional memory or software. A qualifying facility must also be:
          1. (a) A warehouse or distribution facility constructed in this state through an investment in excess of ten million dollars ($10,000,000) by the taxpayer, and/or a lessor to the taxpayer, over a period not exceeding three (3) years, in a newly constructed and previously unoccupied building and/or equipment for the facility;
          2. (b) An expansion to an existing warehouse or distribution facility, previously qualified under this subdivision (46)(H)(i), through an additional investment in excess of ten million dollars ($10,000,000) by the taxpayer, and/or a lessor to the taxpayer over an additional period not exceeding three (3) years, for additions to the building and the purchase of new equipment for use in the expanded facility;
          3. (c) A warehouse or distribution facility in this state that is purchased and either renovated or expanded through an investment in excess of ten million dollars ($10,000,000) in such purchase and renovation or expansion by the taxpayer, and/or a lessor to the taxpayer, including the purchase of new equipment for such a building, over a period not exceeding three (3) years; or
          4. (d) An expansion to an existing warehouse or distribution facility in this state through an aggregate investment in excess of twenty million dollars ($20,000,000) by the taxpayer, and/or a lessor to the taxpayer, over a period not exceeding three (3) years, consisting of an investment in excess of ten million dollars ($10,000,000) in the renovation or expansion of an existing building and/or the purchase of new equipment for such a building, together with an investment in excess of ten million dollars ($10,000,000) in the construction of a new, previously unoccupied building and/or equipment for such a building;
        2. (ii) A taxpayer shall qualify for the exemption afforded to material handling and racking systems under subdivision (46)(H)(i) by submitting an application to the commissioner for the exemption, together with a plan describing the investment to be made. The application and plan shall be submitted on forms prescribed by the commissioner. The plan shall demonstrate that the requirements of the law will be met. Upon approval of the exemption request and plan for investment, purchases of the equipment may be made without payment of the sales or use tax. However, if the requisite investment is not made in the time period required, or the terms of the statute are not met, the taxpayer shall be subject to assessment for any tax, penalty or interest that would otherwise have been due;
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      9. (I) Material handling equipment and racking systems used in a warehouse and distribution facility, subject to all the requirements and conditions of subdivision (46)(H), except:
        1. (i) The required investment in excess of ten million dollars ($10,000,000) may also be made in a previously occupied facility:
          1. (a) Through the purchase of a building, and/or the purchase of new equipment for use in the building no later than one (1) year after the purchase of the building; or
          2. (b) Through the purchase of new equipment for use in a leased building, not qualifying under subdivision (46)(I)(i)(a), made no later than one (1) year after the date of the lease agreement; and
        2. (ii) Any purchases exempted from tax for use in the facility described in this subdivision (46)(I) must be made no later than one (1) year after the purchase of the building under subdivision (46)(I)(i)(a), or no later than one (1) year after the date of the lease agreement under subdivision (46)(I)(i)(b);
      10. (J) “Industrial machinery” does not include machinery, apparatus and equipment, with all associated parts, appurtenances, accessories, repair parts, and necessary repair or taxable installation labor therefor, that is used in the preparation of food for immediate retail sale;
      11. (K) “Industrial machinery” also includes any “computer”, “computer network”, “computer software”, or “computer system”, as defined by § 39-14-601, and any peripheral devices, including, but not limited to, hardware such as printers, plotters, external disc drives, modems, and telephone units, when such items are used in the operation of a qualified data center. For purposes of this subdivision (46)(K), “industrial machinery” includes repair parts, repair or installation services, and warranty or service contracts, purchased for such items used in the operation of a qualified data center;
      12. (L) “Industrial machinery” includes machinery, apparatus and equipment with all associated parts, appurtenances, accessories, repair parts and necessary repair or taxable installation labor therefor, that is necessary to and used primarily for the conversion of tangible personal property into taxable specified digital products for resale and consumption off the premises. “Industrial machinery” does not include machinery, apparatus or equipment, with all associated parts, appurtenances, accessories, repair parts and necessary repair or taxable installation labor therefor, that is used primarily for the storage or distribution of such specified digital products following such conversion;
      13. (M) “Industrial machinery” also includes machinery, apparatus, and equipment with all associated parts, appurtenances, and accessories, including hydraulic fluids, lubricating oils, and greases necessary for operation and maintenance, repair parts, and any necessary repair or taxable installation labor therefor, that is necessary to, and primarily for, the purpose of research and development;
    47. (47) “International,” as used in connection with telecommunications services, means a telecommunications service that originates or terminates in the United States, and terminates or originates outside the United States, respectively. United States includes the District of Columbia and a United States territory or possession;
    48. (48) “Interstate,” as used in connection with telecommunications services, means a telecommunications service that originates in one (1) United States state, or a United States territory or possession, and terminates in a different United States state or a United States territory or possession;
    49. (49) “Intrastate,” as used in connection with telecommunications services, means a telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in the same United States state or United States territory or possession;
    50. (50) “Layaway sale” means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the property. An order is accepted for layaway by the seller, when the seller removes the property from normal inventory or clearly identifies the property as sold to the purchaser;
    51. (51) “Lease or rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A “lease or rental” may include future options to purchase or extend;
      1. (A) “Lease or rental” does not include:
        1. (i) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
        2. (ii) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of one hundred dollars ($100) or one percent (1%) of the total required payments;
        3. (iii) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this subdivision (51), an operator must do more than maintain, inspect, or set-up the tangible personal property; or
        4. (iv) Providing a dumpster or other container for waste or debris removal for a fixed or indeterminate period of time along with the delivery and pickup of the dumpster. A condition of this exclusion is that the provider of the dumpster is exclusively responsible for delivery and pickup of the dumpster;
      2. (B) “Lease or rental” includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1);
      3. (C) This subdivision (51) shall be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the Internal Revenue Code (26 U.S.C.), or title 47, chapter 2A, or other federal, state or local law;
      4. (D) This subdivision (51) shall be applied only prospectively from the date of adoption [January 1, 2008] and shall have no retroactive impact on existing leases or rentals;
    52. (52) “Livestock and poultry feed” means and includes all grains, minerals, salts, proteins, fats, fibers and all vitamins, acids and drugs used and mixed with such ingredients as a growth stimulant, disease preventive, to stimulate feed conversion and make a complete feed;
    53. (53) “Local merchant” means a third-party merchant, including, but not limited to, a kitchen, restaurant, grocery store, retail store, convenience store, or business of another type, that is not under common ownership or control with the delivery network company;
    54. (54) “Local tax jurisdiction” means a geographic area where the same local option tax, either county tax or a combination of county and municipal tax, applies;
    55. (55) “Marketplace” means a physical or electronic place, platform, or forum, including, but not limited to, a store, booth, internet website, catalog, or dedicated sales software application, where tangible personal property or any of the things or services taxable under this chapter are offered for sale;
    56. (56) “Marketplace facilitator”:
      1. (A) Means a person, including any affiliate of the person, that:
        1. (i) For consideration, regardless of whether characterized as fees from the transaction, contracts, or otherwise agrees with a marketplace seller to facilitate the sale of the marketplace seller's tangible personal property or things or services taxable under this chapter through a physical or electronic marketplace operated, owned, or otherwise controlled by the person or the person's affiliate; and
        2. (ii) Either directly or indirectly through contracts, agreements, or other arrangements with third parties, collects the payment from the purchaser of the marketplace seller's tangible personal property or things or services taxable under this chapter and transmits payment to the marketplace seller;
      2. (B) Does not include:
        1. (i) A person who exclusively provides advertising services, including listing products for sale, so long as the person does not also engage directly or indirectly through one (1) or more affiliated persons in those activities described in subdivision (56)(A) that are unrelated to advertising services;
        2. (ii) A person whose activity with respect to marketplace sales is limited to providing payment processing services between two (2) or more parties;
        3. (iii) A derivatives clearing organization, designated contract market, or foreign board of trade or swap execution facility that is registered with the Commodity Futures Trading Commission (“CFTC registered platforms”), or any clearing members, futures commission merchants, or brokers using the services of CFTC registered platforms;
        4. (iv) A person that is a delivery network company; except, that a delivery network company that meets the definition set forth in subdivision (56)(A) may elect, in a reasonable manner and duration prescribed by the department, to be deemed a marketplace facilitator pursuant to this chapter; or
        5. (v) A person licensed under title 62, chapter 19; and
      3. (C) Includes a peer-to-peer car sharing program as defined in § 67-4-1901;
    57. (57) “Marketplace seller” means a person who makes sales through any marketplace operated, owned, or controlled by a marketplace facilitator;
    58. (58) “Micro market” means an unattended food establishment that:
      1. (A) Includes one (1) or more micro market displays;
      2. (B) Has an automated payment kiosk or other device designated for self-checkout by the consumer by means of electronic payment;
      3. (C) Has controlled entry not accessible by the general public; and
      4. (D) Provides commercially prepackaged food or ready-to-eat food, including, without limitation:
        1. (i) Items prepackaged in tamper-evident packaging;
        2. (ii) Products containing nutrition information required by the federal Food, Drug, and Cosmetic Act (21 U.S.C. § 301 et seq.); or
        3. (iii) Products containing a freshness or expiration date;
    59. (59) “Micro market display” means a place where food being sold by a micro market is displayed, including a:
      1. (A) Refrigerator or refrigerated cooler;
      2. (B) Freezer;
      3. (C) Vending machine;
      4. (D) Open rack;
      5. (E) Beverage dispenser; or
      6. (F) Single-service coffee brewer;
    60. (60) “Mobile telecommunications service” means the same as that term is defined in the Mobile Telecommunications Sourcing Act, Public Law 106-252 (4 U.S.C. § 124(7));
    61. (61) “Mobility enhancing equipment” means equipment, including repair and replacement parts to the equipment, but does not include durable medical equipment that:
      1. (A) Is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle;
      2. (B) Is not generally used by persons with normal mobility; and
      3. (C) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer;
    62. (62) “Model 1 seller” means a seller that has selected a certified service provider as its agent to perform all of the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases;
    63. (63) “Model 2 seller” means a seller that has selected a certified automated system to perform part of its sales and use tax functions, but retains responsibility for remitting the tax;
    64. (64) “Model 3 seller” means a seller that has sales in at least five (5) states that are members of the Streamlined Sales and Use Tax Agreement, has total annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary system that calculates the amount of tax due each jurisdiction, and has entered into a performance agreement with the member states that establishes a tax performance standard for the seller. As used in this subdivision (64), a seller includes an affiliated group of sellers using the same proprietary system;
    65. (65) “OEM headquarters company” means an original equipment manufacturer that is engaged in the business of manufacturing motor vehicles and qualifies to receive the credit provided in § 67-6-224, or any affiliate thereof. For purposes of this subdivision (65), “affiliate” has the same meaning as provided in § 67-4-2004;
    66. (66) “OEM headquarters company vehicle” means any motor vehicle subject to registration in accordance with title 55 that is owned by an OEM headquarters company, whether used for sales or service training, advertising, quality control, testing, evaluation or such other uses as approved by the commissioner, and, further, including motor vehicles provided by the OEM headquarters company for use by eligible employees and their eligible family members in accordance with policies established by the OEM headquarters company and approved by the commissioner;
    67. (67)
      1. (A) “Over-the-counter-drug” means a drug that contains a label that identifies the product as a drug as required by 21 CFR 201.66. The “over-the-counter-drug” label includes:
        1. (i) A drug facts panel; or
        2. (ii) A statement of the active ingredients, with a list of those ingredients contained in the compound, substance or preparation;
      2. (B) “Over-the-counter-drug” does not include grooming and hygiene products;
    68. (68) “Permanent location” does not include any booths or space located at a flea market, antique mall, craft show, antique show, gun show, auto show or any similar type business;
    69. (69) “Person” includes any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, any governmental agency whose services are essentially a private commercial concern, or other group or combination acting as a unit, in the plural as well as the singular number. “Person” further includes any political subdivision or governmental agency, including electric membership corporations or cooperatives, and utility districts, to the extent that such agency sells at retail, rents or furnishes any of the things or services taxable under this chapter;
    70. (70) “Place of primary use” means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications service, “place of primary use” shall be within the licensed service area of the home service provider;
    71. (71) “Preliminary artwork” means tangible personal property and digital equivalents that are produced by an advertising agency in the course of providing advertising services solely for the purpose of conveying concepts or ideas or demonstrating an idea or message to a client and includes, but is not limited to concept sketches, illustrations, drawings, paintings, models, photographs, storyboards or similar materials;
    72. (72) “Prepaid calling service” means the right to access exclusively telecommunications services that must be paid for in advance and that enable the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount;
    73. (73) “Prepaid wireless calling service” means a telecommunications service that provides the right to utilize mobile wireless service, as well as other nontelecommunications services, including the download of digital products delivered electronically, content and ancillary services that must be paid for in advance that is sold in predetermined units of dollars of which the number declines with use in a known amount;
    74. (74)
      1. (A) “Prepared food” means:
        1. (i) Food sold in a heated state or heated by the seller;
        2. (ii) Two (2) or more food ingredients mixed or combined by the seller for sale as a single item; or
        3. (iii) Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used to transport the food;
      2. (B) “Prepared food” in subdivision (74)(A)(ii) does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the food and drug administration (FDA) in chapter 3, § 401.11 of the FDA’s food code so as to prevent food borne illnesses;
    75. (75) “Prescription” means an order, formula or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this state;
    76. (76) “Prewritten computer software” means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two (2) or more prewritten computer software programs or prewritten portions of computer software does not cause the combination to be other than prewritten computer software. “Prewritten computer software” includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the purchaser. Where a person modifies or enhances computer software of which the person is not the author or creator, the person shall be deemed to be the author or creator only of that person's modifications or enhancements. “Prewritten computer software” or a prewritten portion of the computer software that is modified or enhanced to any degree, where the modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; provided, however, that where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for the modification or enhancement, the modification or enhancement shall not constitute prewritten computer software;
    77. (77) “Private communication service” means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels;
    78. (78)
      1. (A) “Prosthetic device” means a replacement, corrective, or supportive device including repair and replacement parts for the replacement, corrective, or supportive device worn on or in the body to:
        1. (i) Artificially replace a missing portion of the body;
        2. (ii) Prevent or correct physical deformity or malfunction; or
        3. (iii) Support a weak or deformed portion of the body;
      2. (B) “Prosthetic device” does not include:
        1. (i) Corrective eyeglasses; or
        2. (ii) Contact lenses;
    79. (79) “Protective equipment” means items for human wear, designed as protection of the wearer against injury or disease or as protection against damage or injury of other persons or property, but not suitable for general use;
    80. (80) “Purchase price” applies to the measure subject to use tax and has the same meaning as sales price;
    81. (81)
      1. (A) “Qualified data center” means a data center that has made a required capital investment in excess of one hundred million dollars ($100,000,000) during an investment period not to exceed three (3) years and that creates at least fifteen (15) net new full-time employee jobs during the investment period paying at least one hundred fifty percent (150%) of the states' average occupational wage as defined in § 67-4-2004. For purposes of this subdivision (81), “required capital investment” means an increase of a business investment in real property, tangible personal property or computer software owned or leased in the state, valued in accordance with generally accepted accounting principles. A capital investment shall be deemed to have been made as of the date of payment or the date the taxpayer enters into a legally binding commitment or contract for purchase or construction. For purposes of this subdivision (81), “full-time employee job” means a permanent, rather than seasonal or part-time employment position for at least twelve (12) consecutive months to a person for at least thirty-seven and one-half (37½) hours per week with minimum health care, as described in title 56, chapter 7, part 22. The three-year period for making the required capital investment provided for in this subdivision (81) may be extended by the commissioner of economic and community development for a reasonable period, not to exceed four (4) years, for good cause shown. For purposes of this subdivision (81), “good cause” means a determination by the commissioner of economic and community development that the capital investment is a result of the exemption for industrial machinery used by a qualified data center; and
      2. (B) “Qualified data center” includes a data center that previously made the required capital investment required by subdivision (81)(A) and previously created at least fifteen (15) net new full-time employee jobs and the data center is transferred to an affiliate, as defined in § 67-4-2004, pursuant to a reorganization under § 368(a) of the Internal Revenue Code (26 U.S.C. § 368(a));
    82. (82) “Rain check” means the seller allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock;
    83. (83)
      1. (A) “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;
        Backlinks (2)
      2. (B)
        1. (i) “Sale for resale” does not include a sale of tangible personal property or software to a dealer for use in the business of selling services. Property used in the business of selling services includes, but is not limited to, property that is regularly furnished to purchasers of the service without separate charge. A dealer that sells services shall be considered the end user and consumer of property used in selling, performing, or furnishing such services. However, “sale for resale” does include the following items in the circumstances described:
          1. (a) Repair parts or other property sold to a dealer if such property is subsequently transferred to the customer in conjunction with the dealer's performance of repair services, regardless of whether the dealer makes a separately stated charge for such property;
          2. (b) Installation parts or other property sold to a dealer if such property is subsequently transferred to the customer in conjunction with the installation of property that remains tangible personal property following such installation, regardless of whether the dealer makes a separately stated charge for such property;
          3. (c) Mobile telephones and similar devices sold to a dealer if such property is subsequently transferred to the customer in conjunction with the sale of commercial mobile radio services (CMRS), regardless of whether the dealer makes a separately stated charge for such property; and
          4. (d) Food or beverages sold to a hotel, motel, inn or other dealer that provides lodging accommodations if such food or beverages are subsequently transferred to the customer in conjunction with the dealer's sale of lodging accommodations to the customer, regardless of whether the dealer makes a separately stated charge for such property;
        2. (ii) “Sale for resale” does not include a sale of services to a dealer for use in the business of selling, leasing, or renting tangible personal property or computer software. Services used in the business of selling, leasing, or renting tangible personal property include, but are not limited to, services such as cleaning, maintaining, or repairing property that is held as inventory for sale, lease, or rental. A dealer that sells, leases, or rents tangible personal property or computer software shall be considered the end user and consumer of services used in conducting such business;
        3. (iii) Nothing in this subdivision (83) shall be construed as amending or otherwise effecting the exemption provided in § 67-6-392;
    84. (84) “Retail sale” or “sale at retail” means any sale, lease, or rental for any purpose other than for resale, sublease, or subrent;
    85. (85) “Retailer” means and includes every person engaged in the business of making sales at retail, or for distribution, use, consumption, storage to be used or consumed in this state or furnishing any of the things or services taxable under this chapter and every marketplace facilitator;
    86. (86)
      1. (A) “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 serving for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property;
      2. (B) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price shall be deemed a sale; provided, that where title to property is taken by an industrial development corporation, within the meaning of title 7, chapter 53, but the property is leased to a taxpayer, the transaction shall be regarded, for purposes of this chapter, as a sale to and purchase by the industrial development corporation followed by a lease, regardless of whether the lessee has an option to purchase any or all of the property from the industrial development corporation;
      3. (C) “Sale” includes the furnishing of any of the things or services taxable under this chapter;
      4. (D) “Sale” includes the sale, gifts in connection with valuable contributions, exchange or other disposition of admission, dues or fees to membership sports and recreation clubs, places of amusement or recreational or athletic events or for the privilege of having access to or the use of amusement, recreational, athletic or entertainment facilities. Such establishments or facilities include, but are not limited to, the amusement and recreational facilities and motion picture theaters described in the standard industrial classification index prepared by the bureau of the budget of the federal government;
      5. (E) “Sale” includes the renting or providing of space to a dealer or vendor without a permanent location in this state or to persons who are registered for sales tax at other locations in this state but who are making sales at this location on a less than permanent basis;
      6. (F) “Sale” includes the processing of photographic film into negatives and/or photographic prints for resale;
      7. (G) “Sale” includes charges for admission, dues or fees that constitute a sale under this subdivision (86), except tickets for admission sold to a Tennessee dealer for resale upon presentation of a resale certificate. Dealers registered with the state for sales tax purposes may purchase tickets for resale without payment of tax upon presentation to the vendor of a valid certificate of resale;
      8. (H) “Sale” includes all transactions that the commissioner, upon investigation, finds to be in lieu of sales;
      9. (I) “Sale” includes a transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
      10. (J) “Sale” includes a transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price that does not exceed the greater of one hundred dollars ($100) or one percent (1%) of the total required payments;
      11. (K) “Sale” includes any transfer of title or possession, or both, lease or licensing, in any manner or by any means whatsoever of computer software for consideration, and includes the creation of computer software on the premises of the consumer and any programming, transferring or loading of computer software into a computer; and
      12. (L) “Sale” includes any sale, as otherwise defined in this subdivision (86), made or facilitated by a marketplace facilitator;
    87. (87)
      1. (A) “Sales price” applies to the measure subject to sales tax and means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:
        1. (i) The seller's cost of the property sold;
        2. (ii) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;
        3. (iii) Charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;
        4. (iv) Delivery charges;
        5. (v) Installation charges; and
        6. (vi) The value of exempt personal property given to the purchaser where taxable and exempt personal property have been bundled together and sold by the seller as a single product or piece of merchandise;
      2. (B) “Sales price” does not include:
        1. (i) Discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale;
        2. (ii) Interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale or similar document given to the purchaser;
        3. (iii) Any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale or similar document given to the purchaser; and
        4. (iv) Credit for any trade-in, as determined by § 67-6-510, that is separately stated on an invoice or similar billing document given to the purchaser;
      3. (C) “Sales price” includes consideration received by the seller from third parties, if:
        1. (i) The seller actually receives consideration from a party other than the purchaser, and the consideration is directly related to a price reduction or discount on the sale;
        2. (ii) The seller has an obligation to pass the price reduction or discount through to the purchaser;
        3. (iii) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and
        4. (iv) One of the following criteria is met:
          1. (a) The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount, where the coupon, certificate or documentation is authorized, distributed or granted by a third party, with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented;
          2. (b) The purchaser identifies itself to the seller as a member of a group or organization entitled to a price reduction or discount. A preferred customer card that is available to any patron does not constitute membership in such a group; or
          3. (c) The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser, or on a coupon, certificate or other documentation presented by the purchaser;
    88. (88) “School art supplies” means an item commonly used by a student in a course of study for artwork. For purposes of this chapter, the following is an all-inclusive list of “school art supplies”:
      1. (A) Clay and glazes;
      2. (B) Paintbrushes for artwork;
      3. (C) Paints, acrylic, tempera, and oil;
      4. (D) Sketch and drawing pads; and
      5. (E) Watercolors;
    89. (89) “School computer supplies” means an item commonly used by a student in a course of study in which a computer is used. For purposes of this chapter, the following is an all-inclusive list of “school computer supplies”:
      1. (A) Computer printers;
      2. (B) Computer storage media, diskettes, compact disks;
      3. (C) Handheld electronic schedulers, except devices that are cellular phones;
      4. (D) Personal digital assistants, except devices that are cellular phones; and
      5. (E) Printer supplies for computers, printer paper, printer ink;
    90. (90) “School instructional materials” means written material commonly used by a student in a course of study as a reference and to learn the subject being taught. For purposes of this chapter, the following is an all-inclusive list of “school instructional materials”:
      1. (A) Reference books;
      2. (B) Reference maps and globes;
      3. (C) Textbooks; and
      4. (D) Workbooks;
    91. (91) “School supplies” means an item used by a student in a course of study. For purposes of this chapter, the following is an all-inclusive list of “school supplies”:
      1. (A) Binders;
      2. (B) Blackboard chalk;
      3. (C) Book bags;
      4. (D) Calculators;
      5. (E) Cellophane tape;
      6. (F) Compasses;
      7. (G) Composition books;
      8. (H) Crayons;
      9. (I) Erasers;
      10. (J) Folders, expandable, pocket, plastic and manila;
      11. (K) Glue, paste, and paste sticks;
      12. (L) Highlighters;
      13. (M) Index cards;
      14. (N) Index card boxes;
      15. (O) Legal pads;
      16. (P) Lunch boxes;
      17. (Q) Markers;
      18. (R) Notebooks;
      19. (S) Paper, loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper;
      20. (T) Pencil boxes and other school supply boxes;
      21. (U) Pencil sharpeners;
      22. (V) Pencils;
      23. (W) Pens;
      24. (X) Protractors;
      25. (Y) Rulers;
      26. (Z) Scissors; and
      27. (AA) Writing tablets;
    92. (92) “Service address” means the location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid. In the event this may not be known, service address means the origination point of the signal of the telecommunication service first identified by either the seller's telecommunication system or in information received by the seller from its service provider, where the system used to transport the signal is not that of the seller. In the event that neither the location of the telecommunications equipment nor the origination point of the signal are known, service address means the location of the customer's place of primary use;
    93. (93) “Software” means computer software;
    94. (94) “Specified digital products” means electronically transferred digital audio-visual works, digital audio works and digital books. For purposes of this subdivision (94), “electronically transferred” means obtained by the purchaser by means other than tangible storage media;
    95. (95) “Sport or recreational equipment” means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use;
    96. (96) “Storage” means and includes any keeping or retention in this state of tangible personal property for use or consumption in this state, or for any purpose other than sale at retail in the regular course of business; provided, that temporary storage pending shipping or mailing of tangible personal property to nonresidents of Tennessee shall not constitute a taxable use in Tennessee;
    97. (97)
      1. (A) “Tangible personal property” means personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. “Tangible personal property” includes electricity, water, gas, steam, and prewritten computer software;
      2. (B) “Tangible personal property” does not include signals broadcast over the airwaves;
      3. (C) “Tangible personal property” does not include fiber-optic cable after it has become attached to a utility pole, building, or other structure or installed underground. Such fiber-optic cable is deemed realty for purposes of this chapter upon installation;
      4. (D) “Tangible personal property” does not include mains, pipes, pipelines, or tanks after it has become attached to a building, or other structure, or installed underground for conducting steam, heat, water, wastewater, oil, electricity, gas, or any property, substance, or product capable of transportation or conveyance therein or that is protected thereby, excluding propane tanks for residential use and above-ground storage tanks that can be moved without disassembly and are not affixed to the land. Such mains, pipes, pipelines, and tanks are deemed realty for purposes of this chapter upon installation;
      5. (E) “Tangible personal property” does not include surface, underground, or elevated railroads, or railroad structures, substructures, and superstructures, tracks and the metal thereon, branches, switches, and other improvements or structures permitted or authorized to be made in, upon, or under public or private property. Such railroads, railroad structures, substructures, superstructures, tracks and the metal thereon, branches, switches, and other improvements made in, upon, or under public or private property are deemed realty for purposes of this chapter upon installation;
    98. (98)
      1. (A) “Telecommunications service” means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. “Telecommunications service” includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing, without regard to whether such service is referred to as voice over internet protocol services or is classified by the federal communications commission as enhanced or value added;
      2. (B) “Telecommunications service” does not include:
        1. (i) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by electronic transmission to a purchaser, where such purchaser's primary purpose for the underlying transaction is the processed data or information;
        2. (ii) Installation or maintenance of wiring or equipment on a customer's premises;
        3. (iii) Tangible personal property;
        4. (iv) Advertising including, but not limited to, directory advertising;
        5. (v) Billing and collection services provided to third parties;
        6. (vi) Internet access service;
        7. (vii) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service (47 U.S.C. § 522(6)), and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3;
        8. (viii) Ancillary services; or
        9. (ix) Digital products delivered electronically, including, but not limited to, computer software, music, video, reading materials or ringtones;
    99. (99) “Textbook” means a printed book that contains systematically organized educational information that covers the primary objectives of a course of study. A textbook may contain stories and excerpts of popular fiction and nonfiction writings, but does not include a book primarily published and distributed for sale to the general public. The term “textbook” does not include a computer or computer software;
    100. (100) “Time-share estate” means an ownership or leasehold estate in property devoted to a time-share fee, tenants in common, time span ownership, interval ownership, and a time-share lease;
    101. (101) “Tobacco” means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco;
    102. (102) “Unattended” means sales of goods are processed electronically without the physical presence of a person operating the market sales checkout;
    103. (103)
      1. (A) “Use” means and includes the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business;
      2. (B) “Use” means the coming to rest in Tennessee of catalogues, advertising fliers, or other advertising publications distributed to residents of Tennessee in interstate commerce; provided, that the labeling, temporary storage, and other handling in connection with mailing or shipping of the catalogues, advertising fliers and other advertising publications in interstate commerce to nonresidents of Tennessee shall not constitute a taxable use in Tennessee; and
      3. (C) “Use” also means and includes the consumption of any of the services and amusements taxable under this chapter;
    104. (104) “Use tax” includes the “use,” “consumption,” “distribution” and “storage” as defined in this section;
    105. (105) “Video game digital product” means the right to access and use computer software that facilitates human interaction with a user interface to generate visual feedback for amusement purposes, when possession of the computer software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis;
    106. (106)
      1. (A) “Video programming services” means programming provided by or generally considered comparable to programming provided by a television broadcast station and shall include cable television services sold by a provider authorized pursuant to title 7, chapter 59, wireless cable television services (multipoint distribution service/multichannel multipoint distribution service) and video services provided through wireline facilities located at least in part in the public rights-of-way without regard to delivery technology, including internet protocol technology;
      2. (B) “Video programming services” does not include any of the following:
        1. (i) Digital products transferred electronically, including, but not limited to, software, ringtones, and reading materials such as books, magazines, and newspapers;
        2. (ii) Audio and video programming services provided by a commercial mobile service provider as defined in 47 U.S.C. § 332(d);
        3. (iii) Audio and video programming services provided as part of, or incidental to, internet access service, such as, but not limited to, video capable email; provided, that the services are not generally considered comparable to programming provided by a television broadcast station; and
        4. (iv) Direct-to-home satellite television programming services; and
    107. (107) “Workbook” means a printed booklet that contains problems and exercises in which a student may directly write answers or responses to the problems and exercises. The term “workbook” does not include a computer or computer software.
Backlinks (33)
History (123)
  • Acts 1947, ch. 3, §§ 2, 4
  • C. Supp. 1950, §§ 1248.51, 1248.53 (Williams, §§ 1328.23, 1328.25)
  • Acts 1951, ch. 3, § 1
  • modified
  • 1955, ch. 51, §§ 1-5, 10
  • 1955, ch. 242, §§ 1, 8
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1959, ch. 15, § 1
  • 1963, ch. 38, §§ 1, 2, 7
  • 1963, ch. 172, §§ 1, 2
  • 1965, ch. 3, § 1
  • 1965, ch. 335, § 1
  • 1968, ch. 556, § 1
  • 1968, ch. 601, § 1
  • 1969, ch. 95, § 1
  • 1970, ch. 390, § 1
  • 1971, ch. 117, § 1
  • 1971, ch. 149, § 1
  • 1971, ch. 151, § 1
  • 1972, ch. 528, § 1
  • 1972, ch. 709, § 1
  • 1972, ch. 731, § 1
  • 1972, ch. 757, § 1
  • 1972, ch. 769, § 1
  • 1973, ch. 179, § 1
  • 1974, ch. 778, § 1
  • 1976, ch. 442, § 1
  • 1977, ch. 42, § 1
  • 1977, ch. 250, § 1
  • 1978, ch. 565, §§ 1, 2
  • 1978, ch. 789, §§ 1, 2
  • 1978, ch. 921, § 1
  • 1979, ch. 352, § 1
  • 1980, ch. 602, § 1
  • 1981, ch. 229, § 1
  • T.C.A. (orig. ed.), §§ 67-3002, 67-3017
  • Acts 1984 (Ex. Sess.), ch. 13, §§ 2, 3, 5
  • 1984, ch. 523, § 1
  • 1984, ch. 762, §§ 1-3
  • 1984, ch. 959, § 1
  • 1984, ch. 987, § 1
  • 1985, ch. 25, § 3
  • 1985, ch. 332, §§ 1, 2
  • 1985, ch. 389, § 2
  • 1985, ch. 406, §§ 1, 3, 4, 6, 7
  • 1985, ch. 416, § 1
  • 1985, ch. 456, § 1
  • 1985, ch. 469, §§ 1, 2
  • 1986, ch. 567, § 1
  • 1986, ch. 815, § 1
  • 1986, ch. 924, § 1
  • 1987, ch. 185, § 1
  • 1987, ch. 295, § 1
  • 1987, ch. 428, § 3
  • 1988, ch. 572, § 1
  • 1988, ch. 789, § 1
  • 1989, ch. 312, § 5
  • 1991, ch. 29, § 1
  • 1991, ch. 41, § 2
  • 1991, ch. 80, § 1
  • 1991, ch. 503, § 3
  • 1992, ch. 917, § 1
  • 1992, ch. 1007, §§ 1, 2
  • 1993, ch. 51, §§ 1-3
  • 1993, ch. 68, §§ 1, 2
  • 1993, ch. 409, §§ 1, 2
  • 1994, ch. 552, § 2
  • 1994, ch. 852, § 1
  • 1995, ch. 168, §§ 1, 2
  • 1995, ch. 185, § 1
  • 1995, ch. 384, § 1
  • 1995, ch. 544, §§ 3, 4
  • 1996, ch. 721, §§ 1, 2
  • 1996, ch. 729, § 1
  • 1996, ch. 739, § 1
  • 1996, ch. 770, § 1
  • 1996, ch. 922, § 1
  • 1997, ch. 385, § 1
  • 1997, ch. 451, §§ 1, 2
  • 1998, ch. 732, § 1
  • 1998, ch. 976, § 1
  • 1998, ch. 1038, § 1
  • 1998, ch. 1057, §§ 1, 2
  • 1999, ch. 413, §§ 1, 3
  • 1999, ch. 423, § 4
  • 1999, ch. 484, §§ 1-3
  • 2002, ch. 708, § 1
  • 2002, ch. 719, §§ 1-4
  • 2002, ch. 856, § 5b
  • 2003, ch. 9, § 1
  • 2003, ch. 357, §§ 3-16
  • 2004, ch. 782, §§ 1-6, 15
  • 2004, ch. 924, § 17
  • 2004, ch. 959, §§ 1-4, 59, 60, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 398, § 2
  • 2005, ch. 499, §§ 7, 19, 20, 48-50, 52-55, 60, 68
  • 2006, ch. 975, § 1
  • 2006, ch. 1019, §§ 33, 34, 44
  • 2007, ch. 602, §§ 35, 36, 41, 42, 51, 53, 57-68
  • 2008, ch. 1106, §§ 9, 11, 18, 22, 25, 26
  • 2009, ch. 530, §§ 8, 18, 24, 35, 50, 53, 56, 114
  • 2010, ch. 1134, §§ 1, 33
  • 2011, ch. 508, §§ 30, 32
  • 2012, ch. 842, § 8
  • 2014, ch. 994, § 1
  • 2015, ch. 52, § 1
  • 2015, ch. 81, § 1
  • 2015, ch. 249, §  1
  • 2015, ch. 420, § 1
  • 2015, ch. 504, § 17
  • 2015, ch. 514, § 21
  • 2016, ch. 1001, § 1
  • 2019, ch. 392, § 1
  • 2019, ch. 483, § 1
  • 2019, ch. 501, § 1
  • 2020, ch. 646, §§ 1-6
  • 2020, ch. 796, § 4
  • 2021, ch. 86, § 1
  • 2021, ch. 289, § 1
  • 2022, ch. 783, § 1
  • 2023, ch. 53, § 1
  • 2024, ch. 886, § 1.
§ 67-6-103. Deposit and allocation of receipts — Transportation equity trust fund — Other special allocations.
  1. (a) The commissioner shall deposit promptly to the credit of the state treasurer in state depositories all moneys received by the commissioner under this chapter, and all such moneys shall be earmarked and allocated as follows:
    1. (1) Twenty-nine and one hundred forty-one ten-thousandths percent (29.0141%) of such moneys shall be earmarked and allocated specifically and exclusively to the general fund;
    2. (2) Sixty-five and nine hundred seventy ten-thousandths (65.0970%) of such moneys shall be earmarked and allocated specifically and exclusively to educational purposes; and
    3. (3)
      1. (A) Four and six thousand thirty ten-thousandths percent (4.6030%) shall be appropriated to the several incorporated municipalities within this state to be allocated and distributed to them monthly by the commissioner of finance and administration, in the proportion as the population of each municipality bears to the aggregate population of all municipalities within the state, according to the latest federal census and other censuses authorized by law. Municipalities incorporated subsequent to the last decennial federal census shall, until the next decennial federal census, be eligible for an allotment, commencing on July 1, following incorporation, election and installation of officials, on the population basis determined under regulations of the department of economic and community development and certified by that office to the commissioner; provided, that an accurate census of population has been certified to the department of economic and community development by the municipality. Municipalities now participating in allocation shall continue to do so on the basis of their population determined according to law;
      2. (B)
        1. (i) A municipality having a population of one thousand one hundred (1,100) or more persons, according to the 1970 federal census or any subsequent federal census, in which at least forty percent (40%) of the assessed valuation, as shown by the tax assessment rolls or books of the municipality, of the real estate in the municipality consists of hotels, motels, tourist courts accommodation, tourist shops and restaurants, is defined as a “premiere type tourist resort” for purposes of this chapter. As an alternative to and in lieu of the allocation prescribed in subdivision (a)(3)(A), a premiere type tourist resort may elect to receive four and six thousand thirty ten-thousandths percent (4.6030%) of the tax actually collected and remitted by dealers within the boundaries of such resort. Any distribution made to a premiere type tourist resort pursuant to such election shall be earmarked and paid from the general fund. If, however, any such payment is made to a premiere type tourist resort pursuant to the election, the amount that would have been received by such resort had the resort not exercised the election shall be earmarked and allocated to the general fund;
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        2. (ii) A municipality meeting the criteria set forth in subdivision (a)(3)(B)(i) and also owning a golf course and ski slope shall also receive an amount equal to the amount distributed pursuant to subdivision (a)(3)(B)(i). Any distribution made to such a municipality shall be earmarked and paid from the general fund for the purpose of assisting in the retirement of the convention center obligations in connection with the acquisition, construction and operation of the convention center;
        3. (iii) A municipality meeting the criteria set forth in subdivision (a)(3)(B)(i) and also containing within its boundaries a theme park of not less than eighty (80) acres shall also receive an amount equal to the distribution pursuant to subdivision (a)(3)(B)(i);
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        4. (iv)
          1. (a) A municipality meeting the criteria set forth in subdivision (a)(3)(B)(ii) shall also receive in addition to amounts authorized in this subsection (a) in the 1988-1989 fiscal year, an amount equal to fifty-six percent (56%) of the amount distributed in the 1986-1987 fiscal year pursuant to subdivision (a)(3)(B)(ii), and an amount equal to ninety percent (90%) of the amount distributed in the 1986-1987 fiscal year in subsequent years;
          2. (b) A municipality meeting the criteria set forth in subdivision (a)(3)(B)(iii) shall also receive, in addition to amounts authorized in this subsection (a) in the 1988-1989 fiscal year, an amount equal to sixty percent (60%) of the amount distributed in the 1986-1987 fiscal year pursuant to subdivision (a)(3)(B)(iii), and an amount equal to ninety-six percent (96%) of the amount distributed in the 1986-1987 fiscal year in subsequent years;
        5. (v)
          1. (a) The collective amounts paid under subdivisions (a)(3)(B)(i)-(iv) shall be limited to the collective amounts paid under such subdivisions for the 1999-2000 fiscal year;
          2. (b) During the 2021-2022 fiscal year, for any amounts that would have been paid under subdivisions (a)(3)(B)(i)-(iv) but for the limitation in subdivision (a)(3)(B)(v)(a), those amounts must be allocated as follows:
            1. (1) Fifty percent (50%) to the county in which the municipality is located, for use by the county for educational purposes; and
            2. (2) Fifty percent (50%) to the municipality where the sale occurred;
          3. (c) During the 2022-2023 fiscal year and subsequent fiscal years, for any amounts that would have been paid under subdivisions (a)(3)(B)(i)-(iv) but for the limitation in subdivision (a)(3)(B)(v)(a), those amounts must be allocated as follows:
            1. (1) Fifty percent (50%) to the county in which the municipality is located, for use by the county for educational purposes;
            2. (2) Twenty-five percent (25%) to the municipality where the sale occurred; and
            3. (3) Twenty-five percent (25%) to the state general fund;
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      3. (C) Any municipality shall have the right to take not more than four (4) special censuses at its own expense at any time during the interim between the regular decennial federal census. Such right shall include the current decennium. Any such census shall be taken by the federal bureau of the census, or in a manner directed by and satisfactory to the department of economic and community development. The population of the municipality shall be revised in accordance with the special census for purposes of distribution of such funds, effective on the next July 1 following the certification of the census results by the federal bureau of the census or the department of economic and community development to the commissioner of finance and administration; the aggregate population shall likewise be adjusted in accordance with any such special census, effective the same date as provided in this subdivision (a)(3)(C);
      4. (D) Any other such special census of the entire municipality taken in the same manner provided in this section, under any other law, shall be used for the distribution of such funds, and in that case, no additional special census shall be taken under this section;
      5. (E) Before distributing moneys to incorporated municipalities from the sales tax, as provided for herein, the commissioner of finance and administration shall make a deduction therefrom monthly of a sum equal to one percent (1%) of the monthly allocation of the four and six thousand thirty ten-thousandths percent (4.6030%) of sales tax collections allocated to incorporated municipalities. This sum, together with an appropriation per annum from the general fund of the state, shall be apportioned and transmitted to the University of Tennessee for use by the university in establishing and operating a municipal technical advisory service in its institute for public service, and shall be used for studies and research in municipal government, publications, educational conferences and attendance at such conferences and in furnishing technical, consultative and field services to municipalities in problems relating to fiscal administration, accounting, tax assessment and collection, law enforcement, improvements and public works, and in any and all matters relating to municipal government. This program shall be carried on in cooperation with and with the advice of cities and towns in the state acting through the Tennessee municipal league and its executive committee, which is recognized as their official agency or instrumentality;
      6. (F)
        1. (i) A county ranking in the first quartile of county economic distress in the United States for fiscal year 2006, as determined pursuant to subdivision (a)(3)(F)(v) and bordering on, or crossed by, the Tennessee River, may elect to be a “Tennessee River resort district” for purposes of this chapter. A municipality within such county and located within three (3) miles of the nearest bank of the Tennessee River, may also elect to be a “Tennessee River resort district” for purposes of this chapter. Notwithstanding any other provision of law to the contrary, as an alternative to and in lieu of the allocation prescribed in subdivision (a)(3)(A), a Tennessee River resort district shall receive four and six thousand thirty ten-thousandths percent (4.6030%) of the tax actually collected and remitted by dealers within the boundaries of such district. Any distribution made to a Tennessee River resort district pursuant to such election shall be earmarked and paid from the general fund. If, however, any such payment is made to a Tennessee River resort district pursuant to the election, the amount that would have been received by such district had the district not exercised the election shall be earmarked and allocated to the general fund. This subdivision (a)(3)(F)(i) shall also apply in any county that has a population of less than ten thousand (10,000), according to the 2000 federal census or any subsequent federal census, and borders the Tennessee River and a county included within the Tennessee River resort district. This subdivision (a)(3)(F)(i) shall also apply in any county having a population of not less than twelve thousand three hundred sixty-nine (12,369) nor more than twelve thousand four hundred fifty (12,450) and in any county having a population of not less than seventeen thousand nine hundred (17,900) nor more than eighteen thousand (18,000), all according to the 2000 federal census or any subsequent federal census, and that border the Tennessee River;
        2. (ii)
          1. (a) Subject to subdivision (a)(3)(F)(iv), a county, or municipality within a county, described in subdivision (a)(3)(F)(i) may elect Tennessee River resort district status by adopting a resolution or ordinance approved by a two-thirds (⅔) vote of the legislative body of the jurisdiction. A county, or municipality within a county, described in subdivision (a)(3)(F)(i) that has elected Tennessee River resort district status may repeal such election by adopting a resolution or ordinance approved by a two-thirds (⅔) vote of the legislative body of the jurisdiction;
          2. (b)
            1. (1) A county originally eligible to elect Tennessee River resort district status under chapter 212 of the Public Acts of 2005, and initially electing Tennessee River resort district status after August 1, 2007, may elect Tennessee River resort district status for purposes of this subdivision (a)(3)(F) only and not for the purposes of title 57, chapter 4, part 1, by including the following language in the electing resolution:
              1. Notwithstanding the provisions of Tennessee Code Annotated, §§ 57-4-101(a)(18) and 57-4-102(37), to the contrary, _____ County shall not be considered a Tennessee River Resort District for purposes of Tennessee Code Annotated, Title 57, Chapter 4, Part 1.
            2. (2) In order for the election to be effective, all eligible cities within the county must elect Tennessee River resort district status before the county makes the election. Municipalities having a population of not less than two thousand six hundred (2,600) nor more than two thousand seven hundred fifty (2,750), according to the 2000 federal census or any subsequent federal census, making the election as provided in this subdivision (a)(3)(F)(ii) shall not receive less in state shared taxes under this subdivision (a)(3) than the municipality would otherwise receive had it not made the election;
          3. (c) The approval or nonapproval of a resolution or ordinance adopted pursuant to this subdivision (a)(3)(F)(ii) shall be proclaimed by the presiding officer of the jurisdiction. Within thirty (30) days of adopting the resolution or ordinance, the presiding officer of the jurisdiction shall send a certified copy of the ordinance or resolution to the secretary of state and the commissioner of revenue;
        3. (iii) Notwithstanding any other provision of law to the contrary, of the revenue retained pursuant to an election under subdivision (a)(3)(F)(i), less the amount that would have been received by such district had the district not exercised the election, fifty percent (50%) shall be used exclusively for either the promotion and support of tourism in the jurisdiction or the promotion and support of tourism in conjunction with other jurisdictions so electing Tennessee River resort district status;
        4. (iv) Tennessee River resort district status may be elected by both a county and a municipality within such county, subject to the following provisions:
          1. (a) If the election occurs between January 1, 2006, and June 30, 2006, a municipality electing Tennessee River resort district status shall be entitled to the authorized percentage of tax actually collected and remitted by dealers within the boundaries of the municipality only. A county electing such status shall be entitled to the authorized percentage of tax actually collected and remitted by dealers within the boundaries of the county; provided, however, that the county shall only be entitled to receive such revenue outside the jurisdiction of any municipality electing Tennessee River resort district status located in the county; or
          2. (b) If election occurs on and after July 1, 2006, a county electing Tennessee River resort district status prior to a nonelecting municipality shall be entitled to the authorized percentage of tax actually collected and remitted by dealers within the boundaries of the county and within the boundaries of nonelecting municipalities. No nonelecting municipality shall later elect Tennessee River resort district status; provided, that a nonelecting municipality may elect such status prior to election of such status by the county and, in that event, tax collections would be distributed in accordance with subdivision (a)(3)(F)(iv)(a);
        5. (v) Prior to July 1, 2005, the commissioner of economic and community development shall publish a map of those Tennessee counties that rank in the first quartile of county economic distress in the United States for fiscal year 2006 based on comparing the following indicators: three-year average unemployment, per-capita market income and poverty rate;
        6. (vi) Notwithstanding any provision of this subdivision (a)(3)(F) to the contrary, the election provided in this subdivision (a)(3)(F) shall only be available to eligible counties and municipalities that make the election prior to July 1, 2008;
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    4. (4) Three thousand six hundred seventy-four ten-thousandths percent (0.3674%), or so much thereof as may be required, is appropriated to the department of revenue in addition to its regular appropriation to be expended by it in the administration and enforcement of this chapter; and
    5. (5) Nine thousand one hundred eighty-five ten-thousandths percent (0.9185%) is appropriated to the sinking fund account to be used by the state funding board for the payment of principal and interest becoming due on state bonds issued by the state of Tennessee.
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  2. (b)
    1. (1) Notwithstanding the allocations provided for in subsection (a), all moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for aviation, railways, or water carriers on or after July 1, 1988, shall be deposited by the commissioner in a separate account to be known as the transportation equity trust fund. The funds in this account shall be used by the department of transportation for railways, aeronautics, and waterways related programs and activities. This subsection (b) does not supersede or affect [former] § 67-3-501 [repealed].
    2. (2) It is declared to be the legislative intent that railways, aeronautics and waterways programs and operations are vital to the economic and social development of this state and as such should be considered an equal priority of the department in the administration of its programs.
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  3. (c)
    1. (1) Notwithstanding any law to the contrary, all revenue generated from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) and from the tax levied at the rate of two and three quarters percent (2.75%) on the amount in excess of one thousand six hundred dollars ($1,600) but less than or equal to three thousand two hundred dollars ($3,200) on the sale or use of any single article of personal property pursuant to chapter 856, § 4 of the Public Acts of 2002 shall be paid into the state general fund and allocated exclusively for general state purposes.
    2. (2) Notwithstanding any law to the contrary, all revenue generated from the one-half percent (0.5%) increase in the sales and use tax rate that became effective April 1, 1992, shall be deposited in the state general fund and earmarked for education purposes in kindergarten through grade twelve (K-12). Revenue generated from one-half percent (0.5%) of the tax rate provided in § 67-6-228 shall continue to be deposited in the state general fund and earmarked for education purposes in kindergarten through grade twelve (K-12) regardless of whether the tax rate provided in § 67-6-228 is reduced below six percent (6%).
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  4. (d)
    1. (1)
      1. (A)
        1. (i) Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League, or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
        2. (ii)
          1. (a) In addition to the allocations provided in subdivision (d)(1)(A)(i), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of state tax revenue provided in this subdivision (d)(1)(A)(ii)(a) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility; provided, however, that the following amounts are excluded from this allocation to pay annual outstanding bonded debt repayment obligations through fiscal year 2029, or the date such existing bonded debt is repaid, whichever is sooner:
          2. Fiscal Year 2022$3,700,000
          3. Fiscal Year 2023 $3,350,000
          4. Fiscal Year 2024$3,500,000
          5. Fiscal Year 2025$3,300,000
          6. Fiscal Year 2026$3,300,000
          7. Fiscal Year 2027$3,300,000
          8. Fiscal Year 2028$3,200,000
          9. Fiscal Year 2029$3,200,000
          10. (b) Amounts apportioned and distributed to the municipality in accordance with subdivision (d)(1)(A)(ii)(a) must be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise.
          11. (c) In addition to the allocations provided in subdivision (d)(1)(A)(ii)(a), an amount must also be apportioned and distributed to the municipality equal to one-half (½) the amount of state tax revenue, exclusive of the revenue earmarked pursuant to subsection (c), derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts distributed to the municipality are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of state tax revenue pursuant to this subdivision (d)(1)(A)(ii)(c) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (d)(1)(A)(ii)(c) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (d)(1)(A)(ii)(c). Thirty-six (36) months after the creation of such designated area, and continuing every thirty-six (36) months thereafter, the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority shall prepare and submit reports detailing the fiscal performance of the designated area to the finance, ways and means committees of the house of representatives and the senate and the department of finance and administration.
        3. (iii) If an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all other events occurring at the indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the sports facility, parking charges, and related services. The amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
        4. (iv)
          1. (a) Notwithstanding the allocations provided for in subsection (a), if a franchise for a minor league affiliate of a major league baseball team (American or National League) playing at the Class AA level or higher locates in a municipality in this state and if the municipality constructs a new stadium for the franchise, then at such time as the franchise begins operating in the new stadium, and for a period of thirty (30) years thereafter, an amount shall be apportioned and distributed to the entity that is responsible for retirement of the debt on and maintenance of the stadium in the municipality equal to the amount of state and local tax revenue derived from the sale of admissions to games of the professional sports franchise, and also the sale of food and drink sold on the premises of the stadium used in conjunction with those games, parking charges, and related services, as well as the sale by the professional sports franchise, within the county in which the games take place, of authorized franchise goods and products associated with its operations as a professional sports franchise less local taxes collected in the year preceding the new stadium occupancy. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. For purposes of this subdivision (d)(1)(A)(iv)(a), a team is deemed to locate in a municipality if the team relocates from an existing stadium to a new stadium within the municipality and does not relocate outside the municipality, and a municipality is deemed to construct a new stadium for the franchise if any public instrumentality of the municipality owns and contracts to construct the new stadium.
          2. (b) If the stadium described in subdivision (d)(1)(A)(iv)(a) is placed in service after December 31, 2020, and on or before December 31, 2026, within any county with a population greater than three hundred sixty thousand (360,000), according to the 2020 federal census or any subsequent federal census, and the projected cost of private development expected by the county to be constructed proximate to the stadium exceeds one hundred million dollars ($100,000,000), then the following allocation of state and local tax revenue applies in lieu of the allocation otherwise provided in subdivision (d)(1)(A)(iv)(a):
            1. (1) An amount must be apportioned and distributed to the entity that is responsible for retirement of the debt on the stadium equal to the amount of state and local sales tax revenue derived from any sale of admission to events occurring within the stadium and from all sales of food, drinks, merchandise, and parking sold from a location on the premises of the stadium in conjunction with any events occurring within the stadium, which is deemed to include sales of souvenirs and other merchandise at a team store located on the premises of the stadium regardless of whether such sales occur during an event or during other store hours; and
            2. (2) All amounts received by the entity that is responsible for retirement of the debt on the stadium under this subdivision (d)(1)(A)(iv)(b) must be deposited into a fund entitled the “minor league baseball stadium fund,” which must be used exclusively to pay debt service related to the financing or refinancing of the initial construction of the stadium and debt service related to the financing or refinancing of the initial public infrastructure for such stadium construction. Any refinancing must be only up to the outstanding principal amount, and the term of any refinancing shall not extend beyond the date of the original term. For purposes of this subdivision (d)(1)(A)(iv)(b)(2), “initial public infrastructure” means, in regard to the payment of debt service, those public infrastructure costs for stadium construction that are incurred within the first three (3) years following July 1, 2021, or July 1, 2023, as applicable to the stadium under construction. If the funds received by the entity that is responsible for retirement of the debt on the stadium under this subdivision (d)(1)(A)(iv)(b) in any fiscal year exceed the total of the debt service requirements for that year, the surplus funds thus accruing must either be applied to the prepayment of principal of any financing or refinancing or be retained by such entity as a reserve fund to be used exclusively for future debt service requirements pursuant to this subdivision (d)(1)(A)(iv)(b). The allocations provided under this subdivision (d)(1)(A)(iv)(b) must continue for a period of thirty (30) years from the date the first game is played in the stadium by the minor league baseball team, until such debt service is retired, until a sufficient reserve fund has been established for the retirement of such debt service, or until June 30, 2055, whichever occurs first. For purposes of administering this subdivision (d)(1)(A)(iv)(b), the entity that is responsible for retirement of the debt on the stadium shall, by July 31 of each year, report its debt amortization schedule, minor league baseball stadium fund balance, and reserve fund balance to the commissioner of revenue. Additionally, in the event that a sufficient reserve fund is established for the retirement of such debt service, the presiding officer of the governing body of the entity that is responsible for the retirement of the debt on the stadium shall certify the date of such event and provide notice to the commissioner of revenue within thirty (30) days following such event.
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        5. (v) For the purpose of this subsection (d), “municipality” means any metropolitan government, incorporated city or county located in this state.
        6. (vi) Notwithstanding any provision of this subdivision (d)(1)(A) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be distributed to the municipality. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
        7. (vii) Notwithstanding the allocations provided for in subsection (a), in a municipality with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, with a motor sports facility less than one (1) mile in circumference, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and from all sales of food, drinks, merchandise, and parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services, sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility.
        8. (viii) If an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a National Basketball Association franchise is a tenant, exists in a county having a population over nine hundred thousand (900,000), according to the 2020 federal census or any subsequent federal census, then an amount must be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all other events occurring at the indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the sports facility, parking charges, and related services. The amounts distributed to the municipality must be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts must be used exclusively for the payment of, or the reimbursement of, expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
      2. (B) Any distribution to a municipality as provided for by subdivision (d)(1)(A)(i) is limited to a period of thirty (30) years, which must be concurrent with the time limitation established by subdivision (d)(2). Following the expiration of this thirty-year period, all amounts that would have otherwise been distributed to the municipality or retained in lieu of distribution must be allocated as provided elsewhere without regard to subdivision (d)(1)(A)(i). Notwithstanding this section or any other law to the contrary, the apportionment and distribution of state tax revenue provided in subdivision (d)(1)(A)(i) as it pertains to National Hockey League franchises and the apportionment and distribution of state tax revenue provided in subdivision (d)(1)(A)(iii) shall continue until June 30, 2049. Notwithstanding this section or another law to the contrary, the apportionment and distribution of state tax revenue provided in subdivision (d)(1)(A)(i) as it pertains to National Basketball Association franchises and the apportionment and distribution of state tax revenue provided in subdivision (d)(1)(A)(viii) must continue until June 30, 2059.
      3. (C) Notwithstanding the allocations provided in subsection (a), if there exists in a municipality in this state a sports authority organized pursuant to title 7, chapter 67, and if a new motor sports facility locates in that municipality, and if the sports authority issues bonds or notes and uses the proceeds to assist with the development of such motor sports facility, including, but not limited to, the construction of roads, streets, highways, curbs, bridges, flood control facilities, and utility services, such as water, sanitary sewer, electricity, gas and natural gas, and telecommunications for such facility, then at such time as the new motor sports facility begins operating, and for a period of thirty (30) years thereafter, an amount shall be apportioned and distributed to the sports authority of that municipality, or other entity that is responsible for the retirement of the debt evidenced by such bonds or notes, equal to the amount of state and local tax revenue derived from the sale of admissions to events at such facility, and also the sale of food and drinks sold on the premises of such facility used in conjunction with those events, parking charges, and related services, as well as the sale at such facility of souvenirs, memorabilia, and other goods and products associated with the operation of the facility. Such amount distributed shall be for the exclusive use of the sports authority, or comparable municipal agency, formally designated by the municipality in accordance with title 7, chapter 67. Notwithstanding this section, a sports authority and the municipality in which it is located may enter into an agreement under which all or any portion of the local tax revenue may be paid to the municipality for its exclusive use. For the purposes of this subdivision (d)(1)(C), “municipality” means any incorporated city or county located in this state. This subdivision (d)(1)(C) shall only be applicable if the cost of the acquisition of real property for such new motor sports facility, together with the costs of constructing and equipping the facility, exceeds forty million dollars ($40,000,000), incurred after January 1, 1999. The state portion of the tax revenue shall be distributed to the sports authority only if, at the date of such distribution, the sports authority has outstanding indebtedness due on such bonds or notes described in this subdivision (d)(1)(C).
      4. (D) Notwithstanding the allocations provided for in subsection (a), if a baseball and softball complex, comprised of at least seventeen (17) baseball and softball fields and designed to host both local league play, as well as regional and national youth baseball and softball tournaments, is constructed adjacent to a stadium used by a franchise for a minor league affiliate of a major league baseball team, American or National League, playing at the Class AA level or higher, with respect to which an apportionment and distribution is made pursuant to subdivision (d)(1)(A), then an amount shall be apportioned and distributed to the entity that is responsible for the retirement of the debt on such baseball and softball complex, equal to the amount of state and local tax revenue derived from the sale of admissions to events at the baseball and softball complex and from the sale of food and drink and other authorized goods or products sold on the premises of the baseball and softball complex in conjunction with those events. This apportionment and distribution shall continue until the debt on the baseball and softball complex is retired. Such apportionment and distribution shall continue in the event the adjacent stadium ceases to house a minor league affiliate of a major league baseball team playing at the Class AA level or higher. Notwithstanding any provision of this subdivision (d)(1)(D) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subdivision (d)(1)(D). All such revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively.
      5. (E)
        1. (i) Notwithstanding the allocations provided for in subsection (a), if a new convention center that qualifies as a public use facility under title 7, chapter 88 is constructed in a county having a metropolitan form of government with a population of more than five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, then an amount shall be apportioned and distributed to the entity that is responsible for the retirement of the debt on the convention center and ancillary facilities equal to the amount of state and local tax revenue derived under this chapter from the sale of admission, parking, food, drink and any other things or services subject to tax under this chapter, if such sales occur on the premises of the convention center or any related ancillary facilities, including, but not limited to, any tourism, theatre, retail business or commercial office space facilities or parking facilities. The apportionment and distribution shall begin at the time that the convention center begins operations and shall continue for thirty (30) years, or until the debt on the convention center is retired, whichever is sooner.
        2. (ii) In addition to the distribution provided in subdivision (d)(1)(E)(i), if either one (1) or two (2) new hotels are constructed in connection with the construction of the convention center, then an amount shall also be apportioned and distributed to the entity that is responsible for the retirement of the debt on the convention center and ancillary facilities equal to the amount of state and local tax revenue derived under this chapter from the sale of lodging, parking, food, drink and any other things or services subject to tax under this chapter, if the sales occur on the premises of the hotels. The apportionment and distribution shall begin at the time that the convention center begins operations and shall continue for thirty (30) years, or until the debt on the convention center is retired, whichever is sooner. To be entitled to receive the distribution of state and local tax revenue under this subdivision (d)(1)(E)(ii), the entity responsible for the retirement of the debt on the convention center must first file with the department of finance and administration an application seeking certification that the construction of the hotels is directly related to the construction of the convention center. The department of finance and administration shall review the application to confirm whether the hotels meet the requirements of this subdivision (d)(1)(E)(ii). The department of finance and administration shall report its determination to the department of revenue, which shall administer this subdivision (d)(1)(E)(ii) accordingly.
        3. (iii) In addition to the distribution provided in subdivisions (d)(1)(E)(i) and (ii), if a hotel within the footprint of the convention center, as determined by the commissioner of revenue and the commissioner of economic and community development, undertakes a significant capital improvement program in connection with the construction of the convention center, then an amount shall also be apportioned and distributed to the entity that is responsible for the retirement of the debt on the convention center and ancillary facilities equal to the amount of state and local tax revenue derived under this chapter from the sale of lodging, parking, food, drink, and any other things or services subject to tax under this chapter, if the sales occur on the premises of the hotel. The apportionment and distribution shall begin at the time that the significant capital improvement program is substantially completed and shall continue for thirty (30) years, or until the debt on the convention center is retired, whichever is sooner. To be entitled to receive the distribution of state and local tax revenue under this subdivision (d)(1)(E)(iii), the entity responsible for the retirement of the debt on the convention center must first receive certification from the commissioner of revenue and the commissioner of economic and community development, with the approval of the commissioner of finance and administration, that the capital improvement program is directly related to the construction of the convention center.
        4. (iv) Notwithstanding any provision of this subdivision (d)(1)(E) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to the chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subdivision (d)(1)(E). All such revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively.
    2. (2) Any bonds issued relative to the construction of a sports facility for a sports franchise listed in subdivision (d)(1)(A)(i) shall not be issued for a term longer than thirty (30) years from the date the first game is played by the professional sports franchise in a municipality, as defined in subdivision (d)(1).
    Backlinks (3)
  5. (e) Notwithstanding the provisions of this section to the contrary, revenue derived from taxes imposed by this chapter, except revenue allocated pursuant to subdivision (c)(2), shall be earmarked and allocated in accordance with title 7, chapter 88.
    Backlinks (2)
  6. (f) Notwithstanding subsections (a)-(e), the state tax on fees or charges for subscription to, access to, or use of television programming or television services provided by a video programming service provider offered for public consumption on charges or fees in excess of fifteen dollars ($15.00) but less than twenty-seven dollars and fifty cents ($27.50) per month, shall be for state purposes only and shall be earmarked and allocated specifically and exclusively to the general fund. Any amounts derived from the sales tax on fees or charges for subscription to, access to, or use of television programming or television services provided by a video programming service provider offered for public consumption, in excess of twenty-seven dollars and fifty cents ($27.50) shall be taxed at the state rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 in accordance with part 2 of this chapter, as well as pursuant to the local option revenue act in part 7 of this chapter, and be distributed in accordance with this section. Counties and incorporated municipalities shall use funds in the same manner and for the same purposes as funds distributed pursuant to § 67-6-712.
  7. (g) [Contingent on funding. See the Compiler’s Notes.]
    1. (1) Notwithstanding the allocations provided for in subsection (a), there shall be apportioned and distributed to any county in which there is a state park containing approximately six thousand five hundred (6,500) acres, of which approximately four thousand (4,000) acres are an impounded reservoir, a portion of which is owned by the Tennessee Valley authority, over which an easement has been given to the state and the state has leased or otherwise conveyed its rights to the property to such county for development, an amount equal to the amount of state and local sales taxes derived from sales occurring within such property. Such amount distributed to the county shall be exclusively for retirement of the indebtedness incurred by such county for development of such property, to the same extent that such county may pledge any revenues of the county.
    2. (2)
      1. (A) Notwithstanding any provision of this subsection (g) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes, pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%), pursuant to chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection (g). All such revenue shall continue to be allocated as provided in chapter 529, § 9 of the Public Acts of 1992, and chapter 856, § 4 of the Public Acts of 2002.
      2. (B) Notwithstanding any provision of this subsection (g) to the contrary, prior to any annual distribution pursuant to subdivision (g)(1), an amount equal to the state sales and use taxes collected within such area in fiscal year 2004-2005 shall be deposited in the treasury and allocated as otherwise provided by law.
    3. (3) Prior to the issuance of any bonds for development of property subject to this subsection (g), the county legislative body shall submit its plan for development to the executive committee of the state building commission for such committee's review and recommendation to the state building commission.
  8. (h)
    1. (1) Notwithstanding the provisions of this section to the contrary, revenue derived from state taxes imposed by this chapter shall be earmarked and allocated in accordance with the Courthouse Square Revitalization Pilot Project Act of 2005, compiled in title 6, chapter 59.
    2. (2) Notwithstanding a repeal of title 6, chapter 59, any municipality receiving an allocation of state sales tax revenue on June 1, 2015, pursuant to title 6, chapter 59, shall continue to receive the allocation of the revenue until June 30, 2028. The allocation shall equal the amount of revenue derived from the state tax imposed by this chapter on the sale or use of goods, products and services within the courthouse square revitalization zone. For purposes of this subdivision (h)(2), “courthouse square revitalization zone” has the same meaning provided in [former] § 6-59-102 [repealed] and shall consist of the area that is included within the revitalization zone on June 1, 2015.
    3. (3) No portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes, pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%), pursuant to chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection (h). All such revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002.
  9. (i)
    1. (1) Notwithstanding the allocations provided for in subsection (a), if a new museum dedicated to coal mining is constructed in a county containing a spallation neutron source facility, then an amount shall be apportioned and distributed to the entity that is responsible for the retirement of the debt on the museum equal to the amount of state and local tax revenue derived under this chapter from the sale of admission, parking, food, drink and any other things or services subject to tax under this chapter, if the sales occur on the premises of the museum. The apportionment and distribution shall begin at the time that the museum begins operations and shall continue for thirty (30) years, or until the debt on the museum is retired, whichever is sooner.
    2. (2)
      1. (A) In addition to the distribution provided in subdivision (i)(1), if a new hotel is constructed in connection with the construction of the museum and the hotel is located within one (1) mile of the museum's entrance, then an amount shall also be apportioned and distributed to the entity that is responsible for the retirement of the debt on the museum equal to the amount of state and local tax revenue derived under this chapter from the sale of lodging, parking, food, drink and any other things or services subject to tax under this chapter, if the sales occur on the premises of the hotel. The apportionment and distribution shall begin at the time the museum begins operations and shall continue for thirty (30) years, or until the debt on the museum is retired, whichever is sooner.
      2. (B) To be entitled to receive the distribution of state and local tax revenue under subdivision (i)(2)(A), the entity responsible for the retirement of the debt on the museum must first file with the department of finance and administration an application seeking certification that the construction of the hotel is directly related to the construction of the museum. The department of finance and administration shall review the application to confirm whether the hotel meets the requirements of this subdivision (i)(2). The department of finance and administration shall report its determination to the department of revenue, which shall administer this subdivision (i)(2) accordingly.
    3. (3) Notwithstanding any provision of this subsection (i) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to the chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be apportioned and distributed pursuant to this subsection (i). The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively.
  10. (j) Notwithstanding this section and any other law to the contrary, there is established a separate account in the local government fund to be known as the county revenue partnership fund. The apportionment of revenues to the fund and distributions from the fund shall be subject to the following provisions:
    1. (1) Any apportionment of revenues to the county revenue partnership fund shall be allocated only from the revenues apportioned to the state general fund pursuant to subdivision (a)(1);
    2. (2) Apportionment of revenues to the county revenue partnership fund may be made in any year pursuant to an allocation made in a specific dollar amount in the general appropriations act, and no apportionment shall otherwise be made to the fund; provided, however, that in fiscal years 2007-2008 and 2008-2009, no revenue shall be apportioned to the fund;
    3. (3) The apportionment to and distributions from the county revenue partnership fund in any fiscal year shall not exceed the amount distributed to municipalities from the state sales tax pursuant to subdivision (a)(3)(A) in the previous fiscal year;
    4. (4) In any fiscal year in which revenues are apportioned to the county revenue partnership fund, the revenue shall be allocated and distributed to all counties and metropolitan governments in this state monthly by the commissioner of finance and administration, in proportion as the population of each county or metropolitan government bears to the aggregate population of the state, according to the latest federal census or other censuses authorized by law;
    5. (5) The county legislative body shall, on an annual basis, direct the trustee with regard to allocating and depositing the revenue from this fund among the various funds of the county budget; and
    6. (6) In the state budget document, the county revenue partnership fund shall be listed in the report of revenue sources and basis of apportionment, and the amount apportioned to the fund shall be stated in the distribution of revenues by fund for each year in the comparison statement of state revenues, regardless of whether any revenue is apportioned to the fund for a given fiscal year.
  11. (k)
    1. (1) Notwithstanding the allocations provided for in subsection (a), if there exists a performing arts center that consists of four (4) or more auditoriums, has a total seating capacity of five thousand four hundred (5,400) or more, and is operated by an organization that has received a determination of exemption from the internal revenue service under Internal Revenue Code § 501(c)(3) (26 U.S.C. § 501(c)(3)), and if the performing arts center is located in facilities owned by the state or a political subdivision of the state, then an amount shall be apportioned and distributed to the entity that is responsible for operation and management of the performing arts center. A performing arts center may consist of two (2) or more performance venues with auditoriums located in two (2) or more buildings that are contiguous or in close proximity and are owned by the state or a political subdivision of the state. The amount apportioned and distributed pursuant to this subsection (k) shall be equal to the amount of state tax revenue derived under this chapter from the sale of tickets for admission to events held at the performing arts center; provided, however, that the apportionment and distribution shall be used exclusively for maintenance and improvement of the facilities in which the performing arts center is located, which shall include, but not be limited to, capital improvements, additions and renovations to the facilities and debt service on funds borrowed to pay for the improvements, additions and renovations. Debt service shall include principal and interest payments on existing and future debt obligations, including repayment to the exempt organization operating the facilities of funds advanced or loaned by the organization that were used or are used to pay the costs, in whole or in part, of the improvements, additions and renovations to the facilities.
    2. (2) Notwithstanding subdivision (k)(1) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection (k). The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  12. (l)
    1. (1) Notwithstanding the allocations in subsection (a), except as provided in subdivision (l)(2), state tax revenue collected from commercial breeders licensed under the Commercial Breeder Act, compiled in title 44, chapter 17, part 7 [expired], shall be allocated to the Commercial Breeder Act enforcement and recovery account.
    2. (2) Notwithstanding subdivision (l)(1), no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be allocated to the Commercial Breeder Act enforcement and recovery account. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  13. (m)
    1. (1) Notwithstanding the allocations provided for in subsection (a), if a hotel or inn that is more than one hundred fifty (150) years old is owned by a municipality and operated by an organization that has received a determination of exemption from the internal revenue service under Internal Revenue Code § 501(c)(3) (26 U.S.C. § 501(c)(3)), then an amount shall be apportioned and distributed to the entity that is responsible for the retirement of the debt incurred in renovating the hotel or inn. The amount apportioned and distributed pursuant to this subsection (m) shall be equal to the amount of state tax revenue derived under this chapter from the sale of goods and services on the premises of the hotel or inn; provided, however, that the apportionment and distribution shall be used exclusively for the retirement of debt incurred prior to April 1, 2009, including any interest thereon, in renovating the hotel or inn and shall continue only until the debt is retired.
    2. (2) Notwithstanding subdivision (m)(1) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection (m). All such revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  14. (n)
    1. (1) As used in this subsection (n), unless the context otherwise requires:
      1. (A) “Best interests of the state” means a determination by the commissioner of revenue, with approval by the commissioner of economic and community development, that:
        1. (i) The public improvements made within or adjacent to a mixed-use development are a result of the special allocation and distribution of state sales tax provided for in this subsection (n); and
        2. (ii) The mixed-use development is a result of such public improvements;
      2. (B) “Commercial development zone” means an area in which a mixed-use development is planned or located. To comprise a commercial development zone, the area:
        1. (i) Must be located entirely within an eligible county;
        2. (ii) Shall not exceed one thousand two hundred (1,200) acres; and
        3. (iii) Must be located adjacent to a federally designated interstate highway;
      3. (C) “Eligible county” means any county in which:
        1. (i) At least twenty-five percent (25%) of the county consists of federally-owned land;
        2. (ii) At least thirty and three-fifths percent (30.6%) of the county's population, eighteen (18) years of age and younger, lives in poverty as determined by the United States census bureau, small area income and poverty estimates (SAIPE) program, or any comparable successor program, within the three-year period immediately preceding establishment of the commercial development zone; and
        3. (iii) The federal highway administration has approved an interstate exit in close proximity to the area proposed for a commercial development zone, and such approval was based on the need to stimulate local economic development opportunities;
      4. (D) “Mixed-use development” means an area, located entirely within an eligible county, containing not less than five hundred (500) acres nor more than one thousand two hundred (1,200) acres and includes, but is not limited to, property with commercial uses; and
      5. (E) “Public improvements” means roads, streets, sidewalks, utility services, such as electricity, gas, water and sanitary sewer, and related services, parking facilities, parks, and all other necessary or desirable improvements to be used by the public in connection with a commercial development zone.
    2. (2) Notwithstanding the allocations provided for in subsection (a), if an eligible county has good reason to anticipate that a private entity is willing to plan and develop a mixed-use development; and if the commissioner of revenue, with approval by the commissioner of economic and community development, determines that the special allocation of state sales tax, as authorized by this subsection (n), is in the best interests of the state, then the county legislative body may adopt a resolution designating a commercial development zone for such mixed-use development; provided, however, no county shall contain more than one (1) commercial development zone; and provided further, however, the county legislative body must adopt such resolution on or before June 30, 2011. If the county legislative body duly adopts such resolution, and if the county or an industrial development board, pursuant to subdivision (n)(3), issues bonds payable in whole or part from the tax revenues described herein and uses the proceeds to finance any development or public improvements constructed within or adjacent to the commercial development zone, then an amount shall be apportioned and distributed to such county for the retirement of debt evidenced by such bonds. The amount apportioned and distributed to the county pursuant to this subsection (n) shall equal the amount of state tax revenue derived under this chapter from sales of items and services subject to tax pursuant to this chapter, if the sales occur within the commercial development zone. The apportionment and distribution of such revenue shall begin upon the receipt of a certificate of occupancy for the first retail business operating within the commercial development zone and shall continue for a period of thirty (30) years, or until the debt, including any refunding debt, relating to the commercial development zone is retired, whichever is sooner.
    3. (3) An eligible county in which a commercial development zone is duly located is authorized to delegate to any industrial development corporation incorporated by the county or a municipality within the county the authority to issue revenue bonds to finance development or public improvements within or adjacent to a commercial development zone; provided, that the county shall enter into an agreement with the industrial development corporation in which the county shall agree to promptly pay to the industrial development corporation the tax revenues described in this subsection (n). Upon receipt, such tax revenues shall be held in trust by the county for the benefit of the industrial development corporation.
    4. (4) Notwithstanding any provision of subdivision (n)(2) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection (n). The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  15. (o)
    1. (1) Notwithstanding the allocations provided for in subsection (a), if there exists a zoo or aquarium that is accredited by the Association of Zoos and Aquariums and has received and currently holds a determination of exemption from the Internal Revenue Service under Internal Revenue Code § 501(c)(3) (26 U.S.C. § 501(c)(3)), then an amount shall be apportioned and distributed to the zoo or aquarium equal to the amount of state tax revenue derived under this chapter from the sale of tangible personal property or amusements on the premises of the zoo or aquarium; provided, however, that such apportionment and distribution shall be used exclusively for the operation of the zoo or aquarium, including, but not limited to, capital projects.
    2. (2) Notwithstanding subdivision (o)(1) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection (o). The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  16. (p) Notwithstanding § 7-40-106 to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be distributed to the municipality. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  17. (q) Notwithstanding the allocations provided for in subsection (a) and § 67-6-710, all moneys received and identified by the commissioner as moneys paid by out-of-state dealers acting in compliance under this chapter with any rule filed with the secretary of state on or after October 1, 2016, and effective on or before January 1, 2017, to give effect to chapter 789 of the Public Acts of 1988, shall be reported monthly by the commissioner and apportioned into special reserve accounts in the various funds that, pursuant to applicable statutes, share in the proceeds of sales tax collections. Interest earnings on the moneys collected shall be calculated by the division of accounts, department of finance and administration, and allocated monthly to the various fund reserve accounts. Such moneys shall remain in these reserve accounts and shall not revert at the end of any fiscal year; provided, however, such moneys shall be earmarked, allocated and become available for appropriation as otherwise provided in this chapter upon certification by the attorney general and reporter of the happening of any of the following:
    1. (1) The final resolution of any contested case brought before the commissioner under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or suit challenging application of any rule filed with the secretary of state on or after October 1, 2016, and effective on or before January 1, 2017, to give effect to chapter 789 of the Public Acts of 1988;
    2. (2) The effective date of a federal law enacted by the United States Congress to regulate the various states' ability to require out-of-state dealers to collect the taxes imposed by this chapter, pursuant to its authority to regulate interstate commerce; or
    3. (3) That no party has brought a contested case before the commissioner under the Uniform Administrative Procedures Act or a suit challenging application of any rule filed with the secretary of state on or after October 1, 2016, and effective on or before January 1, 2017, to give effect to chapter 789 of the Public Acts of 1988; provided, however, that any certification under this subdivision (q)(3) shall not occur before June 30, 2018.
  18. (r) [Repealed. See the Compiler's Note.]
  19. (s)
    1. (1) Notwithstanding the allocations provided for in subsection (a), if a new event center is to be constructed for use, in part, by a state university with an independent board of trustees in a county in which there is a population in excess of one hundred fifty thousand (150,000) in accordance with the 2010 federal census or the most recent subsequent census, and in which there is located, in whole or in part, a military base with enlisted active duty personnel in excess of twenty thousand (20,000) as of December 31, 2018, then an amount shall be apportioned and distributed to a public entity designated by the county that is responsible for the retirement of all or a portion of the original debt on such event center equal to the amount of any incremental state and local sales and use tax revenue, including any portion of local sales taxes that otherwise would be allocated for school purposes, from the sale of food and drink and other authorized goods or products sold on the premises of the event center, ticket sales, parking charges, and related services on the premises of the event center. Any such incremental tax revenues shall be applied to the original debt service related to the event center, and shall not be applied to any debt issued for the purposes of refinancing the original debt. This apportionment and distribution shall continue until the date on which the original debt relating to the event center is retired, or until the expiration of thirty (30) years, whichever is sooner. For purposes of this subdivision (s)(1), an event center shall include the facility in which events are held and shall also include any and all ancillary facilities such as parking facilities adjacent to the facility in which events are held.
    2. (2) Notwithstanding subdivision (s)(1) to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be apportioned and distributed pursuant to subdivision (s)(1). The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  20. (t) Notwithstanding § 7-41-106 to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be distributed to the municipality. The revenue must be allocated as provided in chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of 2002, respectively.
  21. (u) Notwithstanding the allocations provided for in subsection (a), there must be allocated and distributed to the counties and municipalities an amount substantially equal to the amount that would have been allocated to the counties and municipalities under subdivision (a)(3) but for the temporary exemption from sales tax applicable to the retail sale of food and food ingredients between 12:01 a.m. on August 1, 2023, and 11:59 p.m. on October 31, 2023, pursuant to § 67-6-393(j)(2). The allocation provided in this subsection (u) must be based on the reporting of exempt sales of food and food ingredients during the exemption period and any other data or information the commissioner deems relevant.
Backlinks (8)
History (117)
  • Acts 1947, ch. 3, § 15
  • 1947, ch. 149, § 1
  • 1949, ch. 17, § 1
  • 1949, ch. 248, § 1
  • 1949, ch. 261, § 1
  • C. Supp. 1950, § 1248.87 (Williams, §§ 1328.37, 1328.37a)
  • Acts 1951, ch. 241, § 1
  • 1953, ch. 50, § 1
  • 1953, ch. 195, § 1
  • modified
  • Acts 1955, ch. 51, § 13
  • 1955, ch. 190, § 1
  • 1957, ch. 130, § 1
  • 1957, ch. 136, § 1
  • 1957, ch. 363, § 1
  • impl. am. Acts 1959, ch. 9, §§ 3, 14
  • Acts 1959, ch. 67, § 1
  • 1959, ch. 276, § 1
  • impl. am. Acts 1961, ch. 97, § 3
  • 1961, ch. 187, § 1
  • 1963, ch. 276, § 1
  • 1965, ch. 281, § 1
  • 1967, ch. 315, § 1
  • 1969, ch. 172, § 1
  • 1970, ch. 430, § 1
  • 1971, ch. 117, § 5
  • 1972, ch. 542, §§ 1-3, 15
  • 1972, ch. 589, § 1
  • 1973, ch. 232, § 1
  • 1974, ch. 494, § 1
  • 1974, ch. 516, § 2
  • 1974, ch. 593, § 1
  • 1975, ch. 197, § 1
  • 1976, ch. 466, § 4
  • 1977, ch. 6, §§ 1, 2
  • 1977, ch. 41, § 1
  • 1979, ch. 114, § 1
  • 1979, ch. 364, § 1
  • 1983, ch. 143, § 1
  • T.C.A. (orig. ed.), § 67-3047
  • Acts 1984 (Ex. Sess.), ch. 8, § 7
  • 1984, ch. 708, § 2
  • 1984, ch. 832, § 15
  • 1984, ch. 914, § 1
  • 1984, ch. 956, § 1
  • 1985, ch. 356, § 1
  • 1986, ch. 727, § 1
  • 1986, ch. 931, § 2
  • 1987, ch. 85, § 1
  • 1987, ch. 391, § 1
  • 1987, ch. 440, § 1
  • 1988, ch. 1025, §§ 1, 2
  • 1991, ch. 463, § 1
  • 1992, ch. 529, §§ 9, 14
  • 1992, ch. 1015, §§ 2-4
  • 1993, ch. 519, §§ 2, 5
  • 1994, ch. 968, § 1
  • 1994, ch. 1006, §§ 1, 4
  • 1995, ch. 135, § 2
  • 1995, ch. 237, § 1
  • 1996, ch. 596, §§ 2, 3
  • 1997, ch. 206, § 1
  • 1997, ch. 382, § 2
  • 1997, ch. 415, §§ 1, 2
  • 1998, ch. 920, §§ 1, 2
  • 1998, ch. 1055, § 11
  • 1999, ch. 18, § 1
  • 1999, ch. 423, § 6
  • 2000, ch. 983, § 13
  • 2002, ch. 856, § 4b
  • 2003, ch. 176, § 1
  • 2003, ch. 355, §§ 43, 44
  • 2003, ch. 357, §§ 17, 18
  • 2004, ch. 592, § 8
  • 2004, ch. 959, §§ 5, 6, 68
  • 2005, ch. 212, § 2
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 441, § 1
  • 2005, ch. 448, § 8
  • 2005, ch. 499, § 47
  • 2005, ch. 500, §§ 6, 7
  • 2005, ch. 505, § 1
  • 2006, ch. 781, § 1
  • 2006, ch. 892, § 1
  • 2006, ch. 989, §§ 11, 12
  • 2006, ch. 1019, § 54
  • 2007, ch. 520, § 1
  • 2007, ch. 600, § 2
  • 2007, ch. 602, §§ 43, 48, 51, 69, 187
  • 2008, ch. 1057, § 1
  • 2008, ch. 1106, §§ 14, 16, 17
  • 2009, ch. 474, §§ 9, 10
  • 2009, ch. 530, §§ 36, 58, 59, 62
  • 2009, ch. 609, § 1
  • 2010, ch. 1033, § 1
  • 2010, ch. 1134, §§ 42, 57
  • 2011, ch. 72, §§ 1, 2
  • 2011, ch. 350, § 3
  • 2011, ch. 407, § 1
  • 2011, ch. 420, § 14
  • 2012, ch. 849, § 1
  • 2012, ch. 1026, §§ 4, 5
  • 2017, ch. 390, § 1
  • 2017, ch. 449, § 1
  • 2017, ch. 461, § 2
  • 2018, ch. 959, § 3
  • 2018, ch. 1011, § 4
  • 2019, ch. 382, § 1
  • 2019, ch. 498, § 14
  • 2021, ch. 401, §§ 1-4
  • 2021, ch. 422, § 1
  • 2021, ch. 481, § 1
  • 2021, ch. 558, § 2
  • 2021, ch. 591, § 1
  • 2022, ch. 1069, §§ 1-3
  • 2023, ch. 377, § 35
  • 2023, ch. 405, §§ 1, 2.
§ 67-6-104. Apportionment of sales and use tax revenue to commercial development districts in rural, economically distressed counties.
  1. (a) It is the intent of this section to address rural, economically distressed counties experiencing persistent high unemployment and traditionally low levels of family income by apportioning and distributing sales and use tax revenue to commercial development districts in those counties.
  2. (b) For purposes of this section:
    1. (1) “Base tax revenues” means the revenues generated, if any, from the collection of state and local sales and use taxes from all businesses within the certified commercial development district as of the end of the fiscal year of this state immediately prior to the year in which the county, municipality, or industrial development corporation is entitled to receive an allocation of tax revenue pursuant to this section;
    2. (2) “Commercial development district” means one (1) or more parcels of real property located within an eligible county, in which it is reasonably anticipated and projected that state and local sales and use taxes will increase, or be newly generated in the case of a district in which no base tax revenues have been previously generated, as a result of the development of the real property by an amount in excess of the increases in the collection of state and local sales and use tax revenues reasonably projected to occur within that area without regard to the development of the real property. Prior to December 31, 2014, “commercial development district” shall include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established by such eligible county, which property was used by the state as a correctional facility. On and after December 31, 2014, “commercial development district” may include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility. Each commercial development district shall be certified by the commissioner of finance and administration;
    3. (3) “Eligible county” means:
      1. (A) Prior to December 31, 2014, a county that meets one (1) or more of the following criteria as of December 31, 2014:
        1. (i) Has a per capita income of eighty percent (80%) or less of the national average;
        2. (ii) Has an unemployment rate that is, for the most recent twenty-four-month period for which data are available, at least one percent (1%) greater than the national average unemployment rate, or, for the most recent twelve-month period for which data are available, at least two percent (2%) greater than the state average unemployment rate;
        3. (iii) Has experienced, or is about to experience, a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions, as determined by the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue; or
        4. (iv) Has an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility;
      2. (B) On and after December 31, 2014, a distressed rural county that will be identified using a consistent methodology based on a set of broadly available measures of economic well-being that could include county unemployment rate, rate of job growth, personal income per capita, property tax base per capita, percent high school graduates, and percent below poverty. Using this consistent methodology, the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue shall determine which counties are eligible counties and shall publish a list of the eligible counties meeting the criteria in this subdivision (b)(3)(B) by July 1 of each year; or
      3. (C) On or after January 1, 2021, a county that borders at least three (3) distressed rural counties, as identified pursuant to subdivision (b)(3)(B), in at least three (3) fiscal years since fiscal year 2016-2017, and whose governing body, or the governing body of a municipality within the county, passed a resolution or other official action prior to January 1, 2021, that seeks to establish or certify a commercial development district within the county or municipality and receive an allocation of sales and use tax revenues under this section;
    4. (4) “Proprietary information” means commercial or financial information that is used either directly or indirectly in the business of any person submitting information to the commissioner under this section, and that gives such person an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information; and
    5. (5) “Trade secrets” means any materials or processes used directly or indirectly in the business of a person or entity submitting information or documentation related to such materials or processes to the commissioner under this section, and that give the person or entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use them.
  3. (c) In order to receive an allocation of sales and use tax revenues under this section, an eligible county or a municipality located within the eligible county, or an industrial development corporation established by such eligible county or municipality, must submit a completed application to the commissioner of finance and administration together with an application fee in an amount established by the department of finance and administration. The application shall be developed by the department of finance and administration.
  4. (d) The application shall include, but not be limited to, the following information:
    1. (1) A list of tax parcels composing the proposed commercial development district, including owners and parcel numbers, from which the sales and use tax revenues will be generated;
    2. (2) A map, survey or drawing clearly identifying the boundaries of the proposed commercial development district area;
    3. (3) Written confirmation of the current zoning of the proposed commercial development district;
    4. (4) A description of the financing for the project to be located within the proposed commercial development district;
    5. (5) The number of jobs that the applicant estimates will be created in the proposed commercial development district and the wages, salaries and other compensation that will be paid to those persons holding the jobs;
    6. (6) The estimated development and construction costs of the project to be located in the proposed commercial development district;
    7. (7) A certification from the county that it complied with the criteria required to be eligible;
    8. (8) A resolution or other official action from the governing body of the eligible county requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district;
    9. (9) If the commercial development district is located in a municipality within an eligible county, a resolution or other official action by the governing body of the municipality requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district;
    10. (10) An affidavit, on a form provided by the department of finance and administration, signed by the applicant certifying that the proposed commercial development district cannot proceed without the availability of financing under this section along with supporting documentation establishing the need for and the amount of the financing; and
    11. (11) Such financial and other information as may be necessary for the commissioner of finance and administration to evaluate the application.
  5. (e) No action shall be taken with respect to an application until the commissioner of finance and administration determines that the commissioner has received all information that may be relevant or necessary in determining the qualifications of the applicant and the proposed commercial development district.
  6. (f) Each commercial development district shall be certified by the commissioner of finance and administration. Once the commissioner of finance and administration has received all of the information required by subsection (d), the commissioner may certify, in the commissioner's discretion, the proposed commercial development district as a commercial development district. Each commercial development district shall include at least five million dollars ($5,000,000) in planned capital improvements. Prior to certifying the commercial development district, the commissioner must determine that the commercial development district is not economically feasible without the tax revenue allocation contemplated in this section. Notwithstanding this section to the contrary, no tax revenue allocation shall be allowed unless the commissioners of finance and administration, revenue, and economic and community development determine, in their sole discretion, that the tax revenue allocation is in the best interest of the state. For purposes of this subsection (f), “best interest of the state” means a determination by the commissioners of finance and administration, revenue, and economic and community development that the commercial development district is a result of the tax revenue allocation provided in this section and that the economic benefits to this state resulting from the commercial development district outweigh the anticipated amount of the tax revenue allocation. In evaluating the information submitted with the application the commissioner may consider normal underwriting criteria such as debt capacity, ability to repay, equity and other capital at risk for the project, and the proposed terms of the contemplated indebtedness.
  7. (g)
    1. (1) Notwithstanding the allocations provided for in § 67-6-103(a), if real property located in an eligible county is acquired and developed as a commercial development district, and is certified by the commissioner of finance and administration as a commercial development district, then an amount shall be apportioned and distributed to the county, the municipality, or the industrial development corporation equal to the amount of state sales tax revenue derived from five and one-half percent (5.5%) of the tax rate imposed pursuant to § 67-6-202 on all sales in the commercial development district and the amount of local sales tax revenue not dedicated for school purposes pursuant to § 67-6-712(a)(1) derived from all sales in the commercial development district in excess of base tax revenues; provided, that an apportionment and distribution of such amount is authorized under this section for any commercial development district in which no sales and use taxes have been generated for at least five (5) years prior to the apportionment and distribution. Such amount distributed shall be for the exclusive use of the county, municipality or industrial development corporation and shall be used solely for the purpose of paying the indebtedness, principal and interest, and closing costs incurred by the county, municipality or industrial development corporation in financing the commercial development district. For eligible counties as defined in subdivision (b)(3)(A), the period for such distributions shall be twenty (20) years. For eligible counties as defined in subdivision (b)(3)(B) or (b)(3)(C), the commissioner of finance and administration shall determine the period in which distributions will be necessary to provide the financing hereunder, and the period for such distributions shall not exceed twenty (20) years. The distributions shall cease upon the expiration of the applicable distribution period or upon satisfaction of the financing of the commercial development district, whichever occurs first. Following the expiration of the distribution period, all amounts that would have otherwise been distributed to the county, the municipality, or the industrial development corporation shall be allocated as provided elsewhere without regard to this section.
    2. (2) Notwithstanding any provision of this section to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be distributed to the eligible county, the municipality or the industrial development corporation for the financing contemplated in this section. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively.
    3. (3) If, at the close of any fiscal year, the revenue from the tax is not sufficient to meet the total debt service of the eligible county, the municipality, or the industrial development corporation for indebtedness incurred with respect to the commercial development district, the balance, if any, of the debt service not paid by revenue from the tax at the end of the fiscal year shall be accumulated in a separate deficit account. If the revenue from the tax in any fiscal year exceeds the total of the debt service requirements of the commercial development district for that year, the surplus revenue thus accruing shall be retained by the eligible county, the municipality, or the industrial development corporation as a sinking fund for any future debt service requirements of the commercial development district or, alternatively, to reduce the then outstanding balance of the indebtedness.
  8. (h) The apportionment and distribution of state sales and use taxes to the county, municipality, or industrial development corporation, as provided in this section shall commence at the beginning of the fiscal year after the certification of the commercial development district. The apportionment and payment shall be made by the department of revenue to the county, municipality or industrial development corporation within ninety (90) days of the end of each fiscal year for which the county, municipality or industrial development corporation is entitled to receive an allocation and payment pursuant to this chapter.
  9. (i) The fact that an eligible county filed an application with the commissioner of finance and administration, whether an application was approved, the number of jobs created by a commercial development district, and the wages, salaries and other compensation that will be paid to the persons holding those jobs shall be available for public inspection pursuant to title 10, chapter 7. Any financial information, including, but not limited to, proprietary information and trade secrets contained in an application, or submitted with any accompanying documents or information filed with the application pursuant to this section, shall be confidential and shall not be open to the public for inspection, notwithstanding the public records provisions of title 10, chapter 7. Such financial information, proprietary information and trade secrets shall not be disclosed to any person, except that the commissioner of finance and administration is authorized to make the following disclosures:
    1. (1) Within the department of finance and administration, the department of revenue, and the department of economic and community development in the course of their official duties; and
    2. (2) To the comptroller of the treasury or the comptroller's designee for the purpose of an audit of the department of finance and administration, the department of revenue, or the department of economic and community development.
  10. (j) In addition to other powers and duties prescribed by law, the commissioner of finance and administration shall monitor the financing of commercial development districts pursuant to this section, but the transfer of sales and use tax revenues to pay indebtedness shall be vested with the eligible county, the municipality within the eligible county, or the industrial development corporation established by an eligible county or the municipality. The commissioner shall report annually to the finance, ways and means committees of the senate and the house of representatives, and the state and local government committee of the senate and the state government committee of the house of representatives, regarding each allocation of tax revenues pursuant to this section.
  11. (k) The commissioner of finance and administration is authorized to require an eligible county with a commercial development district to file a report with the department of finance and administration. A report filed by an eligible county may include, but is not limited to, an analysis detailing the progress of the commercial development district, the number of jobs generated by the commercial development district, the wages, salaries and other compensation paid to those holding the jobs, and such additional information as requested by the commissioner of finance and administration.
  12. (l) The department of finance and administration is authorized to promulgate rules and regulations to effectuate the purposes of this section. Such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
  13. (m) The tax revenue allocation available pursuant to this section applies to eligible counties or municipalities located in such eligible counties, or industrial development corporations established by such eligible counties or municipalities, that:
    1. (1)
      1. (A) In the case of property located in eligible counties as defined in subdivision (b)(3)(A), have filed an application with the commissioner of finance and administration prior to December 31, 2014;
      2. (B) In the case of property located in eligible counties as defined in subdivision (b)(3)(B), have filed an application with the commissioner of finance and administration on or after December 31, 2014, and prior to December 31, 2030; or
      3. (C) In the case of property located in eligible counties as defined in subdivision (b)(3)(C), have filed an application with the commissioner of finance and administration on or after January 1, 2021, and no later than December 31, 2026; and
    2. (2) Have received the approval of a commercial development district from the commissioner of finance and administration on or before June 30, 2031.
Backlinks (2)
History (6)
  • Acts 2014, ch. 985, § 1
  • 2018, ch. 896, §§ 1, 2
  • 2020, ch. 809, §§ 1-4
  • 2021, ch. 561, § 1
  • 2022, ch. 1006, §§ 1, 2
  • 2024, ch. 920, §§ 1, 2.
§ 67-6-105. Event Tourism Act. [Effective until July 1, 2023.]
  1. (a) This section shall be known and may be cited as the “Event Tourism Act.”
  2. (b) As used in this section:
    1. (1) “Department” means the department of finance and administration;
    2. (2) “Endorsing local authority” means a county or municipality that contains a site suitable for hosting an event;
    3. (3) “Event”:
      1. (A) Means an event:
        1. (i) Organized by a site selection organization or a sanctioning body;
        2. (ii) For which the site is determined through a competitive selection process that includes consideration of one (1) or more sites that are not located in this state; or
        3. (iii) That is a new or non-annual event not exceeding two (2) years; and
      2. (B) Includes any activities related to or associated with an event;
    4. (4) “Event period” means a period of time in which the department determines there is a reasonable likelihood of measurable economic impact directly attributable to the preparation for and presentation of the event;
    5. (5) “Event revenue” means the revenue generated from collection of state sales and use taxes, pursuant to this chapter, and from the privilege tax imposed on the sale of alcoholic beverages for consumption on the premises pursuant to § 57-4-301(c), from all businesses at an event venue for the event period;
    6. (6) “Event venue” means the facility or facilities where an event will take place;
    7. (7) “Event venue host” means a person, corporation, limited liability company, association, governmental entity, or other entity that owns or operates a facility suitable for hosting an event that enters into an agreement with a local organizing committee to host an event at the facility;
    8. (8) “Fund” means the event tourism fund established by this section;
    9. (9) “Local organizing committee” means a nonprofit corporation that:
      1. (A)
        1. (i) Has been authorized to pursue an application to a site selection organization or a sanctioning body for selection as the site of an event by an endorsing local authority or multiple local endorsing authorities acting collectively;
        2. (ii) Has executed an agreement with a site selection organization or a sanctioning body regarding a bid to host an event with the authorization of an endorsing local authority or multiple endorsing local authorities acting collectively; or
        3. (iii) Has created a new event or secured a non-guaranteed event with the authorization of an endorsing local authority or multiple endorsing local authorities acting collectively; and
      2. (B) Is governed by a board of at least three (3) members, of whom:
        1. (i) One (1) or more is a representative of a business, which may be for-profit or not-for-profit, that is qualified to do business in the state;
        2. (ii) One (1) or more is a local elected official; and
        3. (iii) One (1) or more is a representative from a nonprofit entity that promotes tourism in the local area, such as a convention and visitor's bureau, chamber of commerce, or destination marketing organization;
    10. (10) “Qualified expense”:
      1. (A) Means any expense of a local organizing committee, endorsing local authority, or event venue host directly related to the event and approved by the department;
      2. (B) Includes the following, if approved by the department:
        1. (i) Reasonable labor and equipment costs directly related to the event beyond the scope of normal employment;
        2. (ii) Reasonable costs related to improvements or renovations to existing facilities in preparation for the event; and
        3. (iii) Reasonable costs related to acquisition or construction of new facilities for the event; and
      3. (C) Does not include usual and customary maintenance of a facility; and
    11. (11) “State building commission” means the state building commission created by § 4-15-101.
  3. (c)
    1. (1) There is created the event tourism fund. Moneys deposited in the event tourism fund shall be expended in accordance with this section. Any unencumbered funds and any unexpended balance of the fund remaining at the end of any fiscal year shall not revert to the general fund, but shall be carried forward until expended in accordance with this section.
    2. (2) No payment shall be made from the event tourism fund unless authorized by the department.
  4. (d) A local organizing committee may apply to the department for the certification of an event in accordance with this section. An application for certification of an event must include:
    1. (1) A proposed event venue and event period;
    2. (2) An estimate of the event revenue to be collected within the event venue during the event period that is directly attributable to the preparation for and presentation of the event;
    3. (3) Estimated attendance at the event;
    4. (4) Financial information related to the projected revenue and expenses of the event;
    5. (5) An estimate of the number of out-of-state visitors who will attend the event;
    6. (6) A marketing plan for the event; and
    7. (7) Any other relevant information as determined by the department.
  5. (e) No funds shall be spent from the event tourism fund for an event unless the event is certified by the department of tourist development and the department of finance and administration. An event shall not be certified unless:
    1. (1) The event is expected to have a measurable economic impact;
    2. (2) The event would not be held in this state without certification of the event;
    3. (3) An event venue and an event period have been approved;
    4. (4) The state building commission has defined the boundaries of the event venue for the purposes of the event;
    5. (5) The proposed expenses of the event are directly related to the event; and
    6. (6) The event is located outside of a sports authority or tourism development zone that receives allocations pursuant to § 67-6-103(d), § 67-6-103(e), or § 7-88-106.
  6. (f)
    1. (1) Following the completion of an event, a local organizing committee shall apply to the department for reimbursement of qualified expenses incurred by the local organizing committee, an endorsing local authority, and an event venue host related to the event. The total reimbursements paid for an event may not exceed the total event revenue deposited into the event tourism fund related to the event.
    2. (2) Any allocations to the event tourism fund shall not include any amounts allocated to a sports authority or a tourism development zone pursuant to § 67-6-103(d), § 67-6-103(e), or § 7-88-106.
    3. (3) To receive any reimbursement of qualified expenses, the event venue host must register the event and all associated vendors with the department of revenue on forms prescribed by the department. Any failure by the event venue host to register associated vendors with the department may reduce the total eligible reimbursement amount.
  7. (g) All applications, documents, communications, and reports related to this section are public records subject to disclosure pursuant to title 10, chapter 7, part 5, except for any tax information or tax administration information that is confidential pursuant to chapter 1, part 17 of this title.
  8. (h) Financial records directly related to the event that receives reimbursement for qualified expenses pursuant to this section are subject to audit by the comptroller of the treasury.
History (1)
  • Acts 2018, ch. 959, § 1.
§ 67-6-106. Sales and use taxes collected on electronic nicotine delivery devices.
  1. The department of revenue is directed to collect information regarding sales taxes the department collects on all electronic nicotine delivery devices, from all sources, including online sales, vape shops, and convenience stores. The department shall report its findings and any recommendations regarding such information on or before February 1, 2020, and on or before February 1 of each subsequent year until February 1, 2030, to the speaker of the senate, speaker of the house of representatives, and chairs of the finance, ways and means committees of the senate and house of representatives.
History (1)
  • Acts 2019, ch. 371, § 1.
Part 2 Taxes Imposed
§ 67-6-201. Taxable privilege declared.
  1. It is declared to be the legislative intent that every person is exercising a taxable privilege who:
    1. (1) Engages in the business of selling tangible personal property at retail in this state;
    2. (2) Uses or consumes in this state any item or article of tangible personal property as defined in this chapter, regardless of the ownership thereof or any tax immunity that may be enjoyed by the owner thereof;
    3. (3) Is the recipient of any of the things or services taxable under this chapter;
    4. (4) Rents or furnishes any of the things or services taxable under this chapter;
    5. (5) Stores for use or consumption in this state any item or article of tangible personal property as defined in this chapter;
    6. (6) Leases or rents such property, either as lessor or lessee, within this state;
    7. (7) Charges admission, dues or fees taxable under this chapter;
    8. (8) Sells space under this chapter;
    9. (9) Charges a fee for subscription to, access to or use of television services provided by a video programming service provider;
    10. (10) Charges a fee for subscription to, access to or use of television services delivered by a provider of direct-to-home satellite service; or
    11. (11) Acts as a marketplace facilitator as defined in § 67-6-102.
History (30)
  • Acts 1947, ch. 3, § 3
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 51, §§ 7, 8
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), § 67-3003
  • Acts 1984 (Ex. Sess.), ch. 13, § 4
  • 1985, ch. 406, § 5
  • 1999, ch. 423, § 1
  • 2003, ch. 357, § 19
  • 2004, ch. 959, §§ 62, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 44, 51, 137, 138, 187
  • 2009, ch. 530, §§ 35, 37
  • 2011, ch. 72, § 3
  • 2020, ch. 646, § 7.
§ 67-6-202. Property sold at retail.
  1. (a) For the exercise of the privilege of engaging in the business of selling tangible personal property at retail in this state, a tax is levied on the sales price of each item or article of tangible personal property when sold at retail in this state; the tax is to be computed on gross sales for the purpose of remitting the amount of tax due the state and is to include each and every retail sale. The tax shall be levied at the rate of seven percent (7%). There is levied an additional tax at the rate of two and three-quarters percent (2.75%) on the amount in excess of one thousand six hundred dollars ($1,600), but less than or equal to three thousand two hundred dollars ($3,200), on the sale or use of any single article of personal property as defined in § 67-6-702(d). The tax levied at the rate of two and three-quarters percent (2.75%) on the amount in excess of one thousand six hundred dollars ($1,600), but less than or equal to three thousand two hundred dollars ($3,200), on the sale or use of any single article of personal property shall be in addition to all other taxes and shall be a state tax for state purposes only. No county or municipality or taxing district shall have the power to levy any tax on the amount in excess of one thousand six hundred dollars ($1,600), but less than or equal to three thousand two hundred dollars ($3,200), on the sale or use of any single article of personal property.
  2. (b) Notwithstanding any other provision of law to the contrary, the one-half percent (0.5%) increase in the rate of the sales tax from five and one-half percent (5.5%) to six percent (6%) imposed by chapter 529 of the Public Acts of 1992 in this section and §§ 67-6-203, 67-6-204, 67-6-205, and 67-6-221 shall remain in effect until changed by the general assembly. All revenue generated from such increases shall be deposited in the state general fund and earmarked for education purposes as provided in § 67-6-103(c)(2).
  3. (c) This section levies a tax on the sales price of tangible personal property obtained from any micro market or vending machine or device.
Backlinks (22)
History (33)
  • Acts 1947, ch. 3, § 3
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 51, §§ 7, 8
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), § 67-3003(a)
  • Acts 1984 (Ex. Sess.), ch. 8, §§ 1, 6, 8
  • 1984, ch. 742, § 1
  • 1985, ch. 356, §§ 2, 7
  • 1992, ch. 529, § 1
  • 1993, ch. 190, §§ 1, 2
  • 2002, ch. 856, § 4a
  • 2003, ch. 357, §§ 20, 21
  • 2004, ch. 959, § 68
  • 2005, ch. 311, §§ 1, 3
  • 2007, ch. 602, §§ 51, 70, 139
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2021, ch. 289, § 2.
§ 67-6-203. Property used, consumed, distributed or stored.
  1. (a) A tax is levied at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 of the purchase price of each item or article of tangible personal property when the tangible personal property is not sold, but is used, consumed, distributed, or stored for use or consumption in this state; provided, that there shall be no duplication of the tax.
  2. (b) A tax, which shall be paid by the distributor, is also levied at the rate set out in subsection (a) on the value of catalogues, advertising fliers, or other advertising publications distributed to residents of Tennessee; provided, that this tax shall not be duplicative of a sales or use tax otherwise collected on such publications. “Distributor” does not include the commercial printer or mailer of any such catalogues, advertising fliers, or other advertising publications; nor shall nexus to a taxpayer be established through a relationship with a commercial printer or mailer having a presence in Tennessee; nor shall the commercial printer or mailer have the obligation of collecting any such tax.
  3. (c) Notwithstanding any other provision of law to the contrary, the one-half percent (0.5%) increase in the rate of the sales tax from five and one-half percent (5.5%) to six percent (6%) imposed by chapter 529 of the Public Acts of 1992 in this section and §§ 67-6-202, 67-6-204, 67-6-205, and 67-6-221 shall remain in effect until changed by the general assembly. All revenue generated from such increases shall be deposited in the state general fund and earmarked for education purposes as provided in § 67-6-103(c)(2).
  4. (d) A tax is levied at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 on the repairing of tangible personal property or computer software, the laundering or dry cleaning of tangible personal property, the installing of tangible personal property that remains tangible personal property after installation, and the installing of computer software, when such repair, cleaning, or installation occurs at a place of business outside this state and the serviced tangible personal property or computer software is delivered by the seller to the purchaser or the purchaser's designee within the physical limits of this state or to a carrier for delivery to a place inside the physical limits of this state for use or consumption in this state.
Backlinks (7)
History (33)
  • Acts 1947, ch. 3, § 3
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 51, §§ 7, 8
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), § 67-3003(b)
  • Acts 1984 (Ex. Sess.), ch. 8, § 2
  • 1985, ch. 356, § 3
  • 1991, ch. 29, § 2
  • 1992, ch. 529, § 2
  • 1993, ch. 190, §§ 1, 2
  • 2002, ch. 856, § 4c
  • 2003, ch. 357, §§ 4, 22
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 71, 140, 187
  • 2009, ch. 530, §§ 35, 38
  • 2011, ch. 72, §§ 1, 4
  • 2023, ch. 377, § 26.
§ 67-6-204. Lease or rental of property.
  1. (a) It is declared to be the intention of this chapter to impose a tax on the sales price of all leases and rentals of tangible personal property and computer software in this state where the lease or rental is a part of the regularly established business, or the lease or rental is incidental or germane to the regularly established business. The tax is levied as follows:
    1. (1) At the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 of the sales price derived from the lease or rental of tangible personal property, as defined herein, where the lease or rental of such property is an established business, or part of an established business, or the same is incidental or germane to the business;
    2. (2) At the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 of the monthly lease or rental price by lessee or renter, or contracted or agreed to be paid by lessee or renter, to the owner of the tangible personal property.
  2. (b)
    1. (1) The lessee or renter of tangible personal property from a lessor that is a tax exempt entity may elect, in lieu of the tax imposed by this section on the monthly lease or rental price contracted or agreed to be paid by the lessee or renter to the tax exempt owner of the tangible personal property, to pay in a lump sum a use tax at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 of the purchase price to the lessor of the tangible personal property subject to the lease.
    2. (2) The election shall be made by the lessee in accordance with rules and regulations to be promulgated by the commissioner of revenue. An election may be revoked with the consent of the commissioner. The effect of payment by a lessee of a use tax based on the purchase price to the lessor of the tangible personal property, pursuant to an election made as provided in this section, shall be to relieve and discharge the lessee and its successors and assigns of any obligation of paying any tax on the monthly lease or rental price contracted or agreed to be paid by the lessee or its successors and assigns to the lessor with respect to the tangible personal property that is the subject of the lease during the term of the lease and any extensions and renewals thereof, and of any obligation to pay any sales or use tax with respect to the purchase by lessee from the lessor of the tangible personal property pursuant to a purchase option contained in the lease of the tangible personal property.
    3. (3) This subsection (b) also applies to permit a lump sum payment of a local option use tax under part 7 of this chapter, based upon the purchase price to the lessor, at the rate and subject to the limitation on the tax applicable in the particular municipality or county pursuant to § 67-6-702. The lump sum payment is in lieu of any local option tax imposed under part 7 of this chapter on the monthly lease or rental of tangible personal property from a lessor that is a tax exempt entity.
    Backlinks (1)
  3. (c) Notwithstanding any other provision of law to the contrary, the one-half percent (0.5%) increase in the rate of the sales tax from five and one-half percent (5.5%) to six percent (6%) imposed by chapter 529 of the Public Acts of 1992 in this section and §§ 67-6-202, 67-6-203, 67-6-205, and 67-6-221 shall remain in effect until changed by the general assembly. All revenue generated from such increases shall be deposited in the state general fund and earmarked for education purposes as provided in § 67-6-103(c)(2).
Backlinks (3)
History (33)
  • Acts 1947, ch. 3, §§ 3, 8
  • C. Supp. 1950, §§ 1248.52, 1248.64 (Williams, §§ 1328.24, 1328.30)
  • Acts 1955, ch. 51, §§ 7, 8, 12
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), §§ 67-3003(c), (d), 67-3024
  • Acts 1984 (Ex. Sess.), ch. 8, § 3
  • 1984, ch. 994, § 1
  • 1985, ch. 356, § 4
  • 1986, ch. 560, § 1
  • 1992, ch. 529, § 3
  • 1993, ch. 190, §§ 1, 2
  • 1996, ch. 664, § 1
  • 2002, ch. 856, § 4d
  • 2003, ch. 357, §§ 4, 23
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 71-73
  • 2008, ch. 1106, § 4.
§ 67-6-205. Services.
  1. (a) There is levied a tax at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 on the sales price of all services taxable under this chapter.
  2. (b) Notwithstanding any other provision of law to the contrary, the one-half percent (0.5%) increase in the rate of the sales tax from five and one-half percent (5.5%) to six percent (6%) imposed by chapter 529 of the Public Acts of 1992 in §§ 67-6-202, 67-6-203, 67-6-204, 67-6-221, and this section shall remain in effect until changed by the general assembly. All revenue generated from such increases shall be deposited in the state general fund and earmarked for education purposes as provided in § 67-6-103(c)(2).
  3. (c) The retail sale of the following services are taxable under this chapter:
    1. (1) The sale, rental or charges for any rooms, lodgings, or accommodations furnished to persons by any hotel, inn, tourist court, tourist camp, tourist cabin, motel, or any place in which rooms, lodgings or accommodations are furnished to persons for a consideration. The tax does not apply, however, to rooms, lodgings, or accommodations supplied to the same person for a period of ninety (90) continuous days or more; charges for or the value of the use of any time-share estate or perpetual interest in a trust, partnership, nonprofit corporation or limited liability company that has as its substantial purpose the ownership and control of real property; or charges for or amounts paid as a standard fee for the service of facilitating the exchange of one (1) time-share interval for another or the service of making a reservation for a time-share interval via a reservation system;
    2. (2) Charges for services rendered by persons operating or conducting a garage, parking lot or other place of business for the purpose of parking or storing motor vehicles. The tax does not apply, however, to charges for such services made by the state and its political subdivisions when providing on-street parking space for which charges are collected, or when operating or conducting a garage or parking lot that is unattended and the charges are collected by parking meters;
    3. (3) The furnishing, for a consideration, of intrastate, interstate or international telecommunication services;
    4. (4) The performing, for a consideration, of any repair services with respect to any kind of tangible personal property or computer software;
    5. (5) The laundering or dry cleaning of any kind of tangible personal property, excluding coin-operated laundry or dry cleaning, where a charge is made for the laundering or dry cleaning; provided, that this subdivision (c)(5) does not apply to:
      1. (A) The bathing of animals provided by a licensed veterinarian when rendered for a medical purpose in conjunction with the practice of veterinary medicine, as defined in § 63-12-103; and
      2. (B) Any car wash facility, coin-operated or otherwise, where the customer remains in custody of the vehicle and the preponderance of the vehicle's wash is completed by the customer or automated equipment;
    6. (6) The installing of tangible personal property that remains tangible personal property after installation and the installing of computer software, where a charge is made for the installation, whether or not the installation is made as an incident to the sale of tangible personal property or computer software, and whether or not any tangible personal property or computer software is transferred in conjunction with the installation service;
    7. (7) The enriching of uranium materials, compounds, or products that is performed on a cost-plus basis or on a toll enrichment fee basis;
    8. (8) The renting or providing of space to a dealer or vendor without a permanent location in this state or to persons who are registered for sales tax at other locations in this state but who are making sales at this location on a less than permanent basis. This subdivision (c)(8) does not apply to the renting or providing of space to a craft fair, antique mall, or book fair or gun show, if the book fair or gun show is sponsored by a not-for-profit corporation. This subdivision (c)(8) also does not apply to the renting or providing of space at a flea market or the renting or providing of space at conventions, trade shows, or expositions, if the conventions, trade shows, or expositions do not allow the general public to enter the exhibit area for the purpose of making sales or taking orders for sales; and
    9. (9) The furnishing, for a consideration, of ancillary services.
Backlinks (3)
History (36)
  • Acts 1947, ch. 3, § 3
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 51, §§ 7, 8
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), § 67-3003(e)
  • Acts 1984 (Ex. Sess.), ch. 8, § 4
  • 1985, ch. 356, § 5
  • 1992, ch. 529, § 4
  • 1992, ch. 913, § 4
  • 1993, ch. 190, §§ 1, 2
  • 1993, ch. 492, §§ 1-3
  • 2002, ch. 856, § 4e
  • 2003, ch. 357, §§ 24, 25
  • 2004, ch. 782, §§ 7, 8
  • 2004, ch. 959, §§ 63, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 74, 75, 141
  • 2008, ch. 1106, §§ 5, 6
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2019, ch. 162, § 1.
§ 67-6-206. Industrial machinery and raw materials — Exemptions.
  1. (a) After June 30, 1983, no tax is due with respect to industrial machinery.
  2. (b)
    1. (1) Tax at the rate of one percent (1%) is imposed with respect to water when sold to or used by manufacturers. Tax at the rate of one and one-half percent (1.5%) shall be imposed with respect to gas, electricity, fuel oil, coal and other energy fuels when sold to or used by manufacturers.
    2. (2) For the purpose of this subsection (b), “manufacturer” means one whose principal business is fabricating or processing tangible personal property for resale.
    3. (3) The substances shall be exempt entirely from the taxes imposed by this chapter whenever it may be established to the satisfaction of the commissioner, by separate metering or otherwise, that they are exclusively used directly in the manufacturing process, coming into direct contact with the article being fabricated or processed by the manufacturer, and being expended in the course of the contact. Whenever the commissioner determines that the use of the substances by a manufacturer meets the test, the commissioner shall issue a certificate evidencing the entitlement of the manufacturer to the exemption. A copy of the certificate issued by the commissioner or a fully completed Streamlined Sales Tax certificate of exemption, which must include the manufacturer's exemption authorization number included on the certificate issued by the commissioner, shall be furnished by the manufacturer to the manufacturer's supplier of the exempt substances. The certificate may be revoked by the commissioner at any time upon a finding that the conditions precedent to the exemption no longer exist.
    4. (4) Any water or energy fuel used by a manufacturer in fabricating or processing tangible personal property for resale shall be exempt entirely from the taxes imposed by this chapter when the water or energy fuel are produced or extracted directly by the manufacturer from facilities owned by the manufacturer or in the public domain.
    5. (5) Notwithstanding the requirement of direct contact, there shall be exempt entirely from the tax imposed by this chapter electricity used to generate radiant heat for production of heat-treated glass when sold to or used by manufacturers; provided, that the manufacturer has applied for and received a certificate of exemption as required by this section. The person shall furnish to that person's supplier of the substance a copy of the certificate or a fully completed Streamlined Sales Tax certificate of exemption, which must include the manufacturer's exemption authorization number included on the certificate issued by the commissioner, to evidence qualification for the exemption.
    6. (6)
      1. (A) Notwithstanding subdivisions (b)(1)-(5), the reduced rates provided by subdivision (b)(1) shall apply to the use of such substances by a person engaged at a location in packaging automotive aftermarket products manufactured at other locations by the same person or by a corporation affiliated with the manufacturing corporation, such that:
        1. (i) Either corporation directly owns or controls one hundred percent (100%) of the capital stock of the other corporation; or
        2. (ii) One hundred percent (100%) of the capital stock of both corporations is directly owned or controlled by a common parent.
      2. (B) “Packaging”, as used in this subdivision (b)(6), refers only to the fabrication and/or installation of that packaging that will accompany the automotive aftermarket product when sold at retail. The reduced rates shall apply only to such substances used in the packaging process. Such use must be established to the satisfaction of the commissioner by separate metering or otherwise. To qualify for the reduced rate under this subdivision (b)(6), a person shall apply for and receive a certificate of qualification for the reduced rate from the commissioner. The person shall furnish to that person's supplier of the substances a copy of the certificate or a fully completed Streamlined Sales Tax certificate of exemption, which must include the exemption authorization number included on the certificate issued by the commissioner, to evidence qualification for the reduced rate.
    7. (7) Notwithstanding the requirement of direct contact, natural gas used to generate heat for the production of primary aluminum, aluminum sheet and foil, and aluminum can sheet products when sold to or used by manufacturers shall be exempt entirely from the tax imposed by this chapter; provided, that the manufacturer applies for and receives a certificate of exemption as required by this section. Nothing shall be inferred from this subdivision (b)(7) as to the law in effect prior to this change.
    8. (8) Notwithstanding subdivision (b)(2), the term “manufacturer” does not include any person whose principal business is the preparation of food for immediate retail sale.
  3. (c)
    1. (1) Tax at the rate of one and one-half percent (1.5%) shall be imposed with respect to electricity when sold to or used by a qualified data center.
    2. (2) No tax is imposed with respect to cooling equipment or backup power infrastructure when sold to or used by a qualified data center.
    3. (3) As used in subdivision (c)(2):
      1. (A) “Backup power infrastructure” means backup power generation, battery systems, and related infrastructure used primarily for and necessary to the operations of a qualified data center; and
      2. (B) “Cooling equipment” means cooling systems, cooling towers, and other temperature control infrastructure used primarily for and necessary to the operations of a qualified data center.
  4. (d) Any qualified data center that applies for job tax credits under § 67-4-2109 must certify on its business plan that it has not, within the previous twelve (12) months, been found to be in violation of the Worker Adjustment and Retraining Notification (WARN) Act (29 U.S.C. §§ 2101-2109), the Fair Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.), or federal immigration laws. Any qualified data center that fails to provide the required certification shall not qualify for job tax credits under § 67-4-2109.
Backlinks (4)
History (33)
  • Acts 1947, ch. 3, § 3
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 51, §§ 7, 8
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1980, ch. 871, § 1
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), § 67-3003(g)
  • Acts 1993, ch. 430, § 1
  • 1995, ch. 185, § 2
  • 1998, ch. 767, § 1
  • 2003, ch. 357, § 26
  • 2004, ch. 959, §§ 7, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 499, § 6
  • 2006, ch. 1019, § 35
  • 2007, ch. 602, §§ 37, 51, 76-78, 142, 187
  • 2009, ch. 530, §§ 35, 39
  • 2011, ch. 72, §§ 1, 5
  • 2016, ch. 1001, §§ 2, 3.
§ 67-6-207. Property sold to farmer or nurseryman.
  1. (a) As used in this section:
    1. (1) “Agricultural operations” means an activity of agriculture as defined in § 1-3-105(a)(2)(A)(i), (a)(2)(A)(ii), (a)(2)(B), and (a)(2)(C); and
    2. (2) “Qualified farmer or nurseryman” means a person who is engaged in agricultural operations, and who meets one (1) or more of the following criteria:
      1. (A) The person is the owner or lessee of agricultural land from which one thousand five hundred dollars ($1,500) or more of agricultural products were produced and sold during the year, including payments from government sources;
      2. (B) The person is in the business of providing for-hire custom agricultural services for the plowing, planting, harvesting, growing, raising, or processing of agricultural products or for the maintenance of agricultural land;
      3. (C) The person is the owner of land that qualifies for taxation under the Agricultural Forest and Open Space Land Act of 1976, compiled in chapter 5, part 10 of this title;
      4. (D) The person's federal income tax return contains one (1) or more of the following:
        1. (i) Business activity on IRS schedule F, profit or loss from farming; and
        2. (ii) Farm rental activity on IRS form 4835, farm rental income and expenses or schedule E, supplemental income and loss; or
      5. (E) The person otherwise establishes to the satisfaction of the commissioner that the person is actively engaged in the business of raising, harvesting, or otherwise producing agricultural commodities as defined in § 67-6-301(c)(2).
  2. (b) The sale at retail, lease, rental, use, consumption, distribution, repair, or storage for use or consumption in this state of tangible personal property, including building material, repair service, labor, warranty, software, or any other item taxable under this chapter, is specifically exempted from the tax imposed by this chapter when sold to a qualified farmer or nurseryman, if the tangible personal property is primarily used by the qualified farmer or nurseryman in agricultural operations.
  3. (c) Persons seeking to become qualified farmers or nurserymen shall apply to the commissioner for authority to make purchases exempt from tax. This application must require information that the commissioner deems necessary. If the commissioner finds from the information that the applicant is entitled to be a qualified farmer or nurseryman, the commissioner shall issue a certificate granting the authority for a period of four (4) years, or until the applicant is no longer operating within the scope of the applicant's original application. A misrepresentation made on the application by the applicant subjects the applicant to applicable taxes, penalty, and interest.
  4. (d) Persons who have obtained authority from the commissioner to make purchases tax exempt as a qualified farmer or nurseryman shall provide their vendors with a copy of the certificate issued by the commissioner or a fully completed Streamlined Sales Tax certificate of exemption, which must include the exemption authorization number included on the certificate issued by the commissioner, to evidence qualification for the exemption.
  5. (e) Persons making purchases exempt from tax under this section shall keep records to establish that the property qualifies for the exemption. The purchaser is liable for tax, penalty, and interest for making nonqualifying purchases without payment of tax.
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  6. (f) Notwithstanding subdivision (a)(2), a person who qualifies as a manufacturer under § 67-6-206 does not qualify as a farmer or nurseryman under this section.
  7. (g) Notwithstanding another law to the contrary, the exemption provided for in this section does not include automobiles, trucks, household appliances, and gasoline or diesel used in vehicles operated upon the public highways of this state.
  8. (h) This section does not exempt tangible personal property, including building material, repair service, labor, warranty, software, or any other item taxable under this chapter from the tax imposed by § 67-6-209.
Backlinks (2)
History (31)
  • Acts 1947, ch. 3, § 3
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 51, §§ 7, 8
  • 1955, ch. 242, § 6
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1971, ch. 78, § 1
  • 1971, ch. 117, § 2
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1980, ch. 871, § 2
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), § 67-3003(h)
  • Acts 1996, ch. 721, § 3
  • 1998, ch. 635, § 1
  • 2003, ch. 357, § 27
  • 2004, ch. 959, §§ 8, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 79
  • 2008, ch. 1106, §§ 23, 24
  • 2019, ch. 178, § 1
  • 2019, ch. 427, § 1
  • 2022, ch. 1104, § 1.
§ 67-6-208. Warranty or service contract covering repair or maintenance of tangible personal property — Computer software maintenance contracts.
  1. (a) The retail sale of, use of, or subscription to a warranty or service contract covering the repair or maintenance of tangible personal property shall be subject to the tax levied by this chapter. The tax shall be levied on the sales price or purchase price of the warranty or service contract at a rate equal to the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202.
  2. (b) The retail sale of, use of, or subscription to a computer software maintenance contract shall be subject to the tax levied by this chapter. The tax shall be levied on the sales price of the computer software maintenance contract at a rate equal to the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202.
  3. (c) Warranty or service contracts covering the repair and maintenance of tangible personal property and computer software maintenance contracts shall be subject to tax in this state when:
    1. (1) The warranty or service contract is sold as part of or in connection with the sale of tangible personal property that is subject to the tax levied by this chapter, or the computer software maintenance contract is sold as part of or in connection with the sale of computer software that is subject to the tax levied by this chapter;
    2. (2) The warranty or service contract applies to tangible personal property located in this state, or the computer software maintenance contract applies to computer software installed on computers located in this state. If a warranty or service contract applies to tangible personal property located both inside this state and outside this state or a computer software maintenance contract applies to computer software installed on computers located both inside this state and outside this state, dealers or users may allocate to this state a percentage of the sales price or purchase price of the warranty or service contract or computer software maintenance contract that equals the percentage of tangible personal property located in this state or computer software installed on computers located in this state; or
    3. (3) The location of the tangible personal property covered by the warranty or service contract or computer software covered by the computer software maintenance contract is not known to the seller but the purchaser's residential street address or primary business address is in this state.
  4. (d) No additional tax shall be due under this chapter on any repairs or maintenance provided pursuant to a warranty or service contract covering the repair and maintenance of tangible personal property that is subject to tax under subsection (a) or on any repairs, modifications, updates, or upgrades provided pursuant to a computer software maintenance contract that is subject to tax under subsection (b), unless the seller makes an additional charge for the repairs, maintenance, modifications, updates, or upgrades.
History (1)
  • Acts 2015, ch. 273, § 6.
§ 67-6-209. Use of property produced or severed from earth — Exemptions.
  1. (a) Where a manufacturer, producer, compounder or contractor erects or applies tangible personal property, that the manufacturer, producer, compounder or contractor has manufactured, produced, compounded or severed from the earth, other than:
    1. (1) Any material severed from the earth and moved from one (1) place to another on the same construction or job site; and
    2. (2) Dirt, soil, earth or any other kind of material when used for fill, whether from the same construction or job site or elsewhere;
    3. such person so using the tangible personal property shall pay the tax levied in this section on the fair market value of such tangible personal property when used, without any deductions whatsoever; provided, that this subsection (a) shall not be construed to apply to contractors or subcontractors who fabricate, erect or apply tangible personal property that becomes a component part of a building, and that is not sold by them as a manufactured item.
  2. (b) Where a contractor or subcontractor defined in this chapter as a dealer uses tangible personal property in the performance of the contract, or to fulfill contract or subcontract obligations, whether the title to such property be in the contractor, subcontractor, contractee, subcontractee, or any other person, or whether the title holder of such property would be subject to pay the sales or use tax, except where the title holder is a church, private nonprofit college or university and the tangible personal property is for church, private nonprofit college or university construction, such contractor or subcontractor shall pay a tax at the rate prescribed by § 67-6-203 measured by the purchase price of such property, unless such property has been previously subjected to a sales or use tax, and the tax due thereon has been paid. The exemption provided for in this subsection (b) for private nonprofit colleges or universities shall apply only to the state portion of the sales tax. The sales or use tax levied by this chapter shall not apply to carpet installed for a church when the church is exempt from sales or use taxes under § 67-6-322. For purposes of this section, “private nonprofit college or university” includes a nonprofit academic medical center and teaching hospital that operates as a separate nonprofit corporation, but which, when founded, was operated as a division of a private nonprofit college or university and that continues to provide education and training of physicians, nurses, and other allied healthcare professionals.
  3. (c) The tax imposed by this section shall have no application where the contractor or subcontractor, and the purpose for which such tangible personal property is used, would be exempt from the sales or use tax under any other provision of this chapter. However, the transfer of tangible personal property by a contractor who contracts for the installation of such tangible personal property as an improvement to realty does not constitute a sale, except as provided in § 67-6-102(39), and the contractor shall not be permitted on this basis to obtain the benefit of any exemptions or reduced tax rates available to manufacturers under § 67-6-102(46)(E) or § 67-6-206. Each location of a taxpayer will be considered separately in determining whether the taxpayer qualifies or is disqualified as a manufacturer at that location.
  4. (d) The tax imposed by this section or by any other provision of this chapter shall have no application with respect to the use by, or the sale to, a contractor or subcontractor of atomic weapon parts, source materials, special nuclear materials and by-product materials, all as defined by the Atomic Energy Act of 1954 (42 U.S.C. § 2011 et seq.), or with respect to such other materials as would be excluded from taxation as industrial materials under § 67-6-102(46)(E), when the items referred to in this subsection (d) are sold or leased to a contractor or subcontractor for use in, or experimental work in connection with, the manufacturing processes for or on behalf of the atomic energy commission or when any of such items are used by a contractor or subcontractor in such experimental work or manufacturing processes.
  5. (e) There is exempt from this chapter the sale or use of materials and equipment purchased or used for construction or installation, by a contractor, subcontractor or otherwise, of, in or as a part of any electric generating plant or distribution system, any resource recovery facility where steam or electric energy is produced, or any coal gasification plant or distribution system owned or operated by the United States or any agency thereof created by an act of congress, or by the state of Tennessee or any agency or political subdivision thereof, or any authority organized pursuant to the Rural Electric and Community Services Cooperative Act, compiled in title 65, chapter 25. There is also exempt the sale or use of materials and equipment purchased or used for construction or installation by a contractor, subcontractor or otherwise, of, in or as a part of any electric generating plant, including the transmission substation, owned or operated by any person, so long as such person does not now or intend in the future to generate electricity from a plant located in Tennessee or to distribute electricity to consumers in Tennessee.
  6. (f) There is exempt from the tax imposed by this section or any other provision of this chapter pipes, fittings and materials used to repair or maintain a water utility system owned by a utility district created pursuant to title 7, chapter 82. This exemption applies only to pipes, fittings and materials which become an integral part of the water utility system. This exemption does not apply to any installation of pipes, fittings or materials for any reason other than repair or maintenance of an existing system.
  7. (g) There is exempt from the tax imposed by this section tangible personal property that:
    1. (1) Is installed by a dealer in manufactured homes, or furnished to a contractor by the dealer for use in the installation of a manufactured home; and
    2. (2) Has previously been subjected to the tax imposed by § 67-6-216.
  8. (h) There is exempt from the tax imposed by this chapter any tangible personal property owned by the United States, or any agency thereof, that is provided to a contractor or subcontractor on a temporary basis for testing pursuant to a contract awarded by the United States, or any agency thereof, to such contractor or subcontractor under the Small Business Innovation Research Program, as that term is defined in 15 U.S.C. § 638(e)(4). The exemption provided by this subsection (h) shall apply only to property that is the subject of the test being performed and property into which the subject of the test must be incorporated before the testing can occur. The exemption provided by this subsection (h) shall not apply to any equipment, machinery or other property used to conduct the test.
  9. (i) There is exempt from the tax imposed by this chapter any tangible personal property that is provided to a contractor or subcontractor on a temporary basis for testing; provided, that the exemption shall apply only in those instances where the facility at which the testing is undertaken is owned by the United States or any agency of the United States. The exemption provided by this subsection (i) shall apply only to the property that is the subject of the test being performed and property into which the subject of the test must be incorporated before the testing can occur. Under no circumstances shall the exemption apply to property used to conduct the test or to property consumed or destroyed during the test. For this purpose, the term “testing” shall be limited to diagnostic, analytical and scientific testing in a controlled environment, dedicated to testing for the purpose of providing information and findings supportive of the aerodynamic, hypersonic, aeropropulsion, space, missile, aircraft and aerospace technologies and industries.
Backlinks (1)
History (28)
  • Acts 1949, ch. 245, § 1
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 242, § 7
  • 1957, ch. 166, § 1
  • 1963, ch. 38, § 6
  • 1963, ch. 174, § 1
  • 1978, ch. 536, § 1
  • 1978, ch. 601, § 1
  • 1980, ch. 563, § 1
  • 1980, ch. 812, § 1
  • T.C.A. (orig. ed.), § 67-3004(a)-(e)
  • Acts 1985, ch. 475, § 1
  • 1989, ch. 409, § 1
  • 1990, ch. 646, § 1
  • 1993, ch. 477, § 1
  • 1996, ch. 722, § 1
  • 1996, ch. 739, § 2
  • 1996, ch. 1006, § 1
  • 1997, ch. 194, § 4
  • 2003, ch. 357, § 28
  • 2004, ch. 725, § 1
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2005, ch. 371, § 1
  • 2007, ch. 602, §§ 51, 53, 143
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2021, ch. 429, § 1.
§ 67-6-210. Use of property imported by dealer — Exemptions.
  1. (a) On all tangible personal property imported, or caused to be imported from other states or foreign countries, and used by a dealer, the dealer, as defined in § 67-6-102, shall pay the tax imposed by this chapter on all articles of tangible personal property so imported and used, the same as if the articles had been sold at retail for use or consumption in this state. For the purposes of this chapter, the use, consumption, or distribution, or storage to be used or consumed in this state of tangible personal property shall each be equivalent to a sale at retail, and the tax shall thereupon immediately levy and be collected in the manner provided herein; provided, that there shall be no duplication of the tax in any event.
  2. (b) It is not the intention of this section to levy the use tax with respect to the personal automobile, the personal manufactured home as defined in § 68-126-202, the personal effects, or the household furnishings to be used in the residence of a person who, having been a bona fide resident of another state, has moved to and become a resident of Tennessee, and has caused to be imported into Tennessee such personal automobile, personal manufactured home as defined in § 68-126-202, personal effects, or household furnishings.
  3. (c)
    1. (1) There is exempt from the use tax imposed by this chapter any boat, motorboat or other vessel to be used or stored in this state by any person who, having been a bona fide resident of another state, has moved to and become a resident of this state, and has caused the vessel to be imported into this state; provided, that the vessel is to be used solely for personal use and has a fair market value that is less than ten thousand dollars ($10,000) at the time it is imported into this state.
    2. (2) In order to qualify for the exemption provided in subdivision (c)(1), the person shall submit to the commissioner, or to the county clerk when appropriate, proof that the vessel was properly registered in the other state. A person shall be eligible for the exemption whether or not the person previously paid sales or use tax, or obtained proof that sales or use tax was paid, on the purchase of the boat at the rate provided by the law of the other state.
History (6)
  • Acts 1947, ch. 3, § 4
  • C. Supp. 1950, § 1248.55 (Williams, § 1238.25)
  • Acts 1967, ch. 117, § 1
  • T.C.A. (orig. ed.), § 67-3005
  • Acts 1986, ch. 733, § 2
  • 2014, ch. 1012, § 1.
§ 67-6-211. Property no longer in interstate commerce.
  1. It is the intention of this chapter to levy a tax on the sale at retail, the use, the consumption, the distribution, and the storage to be used or consumed in this state of tangible personal property after it has come to rest in this state and has become a part of the mass of property in this state.
History (3)
  • Acts 1947, ch. 3, § 4
  • C. Supp. 1950, § 1248.56 (Williams, § 1328.25)
  • T.C.A. (orig. ed.), § 67-3007.
§ 67-6-212. Amusement tax.
  1. (a) There is levied a tax at a rate equal to the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202 on the sales price of each sale at retail of the following:
    1. (1) Dues or fees to membership sports and recreation clubs, including free or complimentary dues or fees, when such are made in connection with a valuable contribution to any such establishment or organization, which shall have the value equivalent to the charge that would otherwise have been made, including any fees paid for the use of facilities or services rendered at a health spa or club or any similar facility or business;
    2. (2) Sales of tickets, fees or other charges made for admission to or voluntary contributions made to places of amusement, sports, entertainment, exhibition, display or other recreational events or activities, including free or complimentary admissions when made in connection with a valuable contribution to any organization or establishment holding or sponsoring such activities which shall have the value equivalent to the charge that would have otherwise been made;
    3. (3) Charges made for the privilege of entering or engaging in any kind of recreational activity, when no admission is charged spectators, such as tennis, racquetball or handball courts; and
    4. (4) Charges made for the privilege of using tangible personal property for amusement, sports, entertainment or recreational activities such as trampolines, golf carts, bowling shoes, skates or other sports and athletic equipment.
  2. (b) Free or complimentary dues or fees which shall have the value equivalent to the charge that would have otherwise been made shall be taxed under this section, unless such free or complimentary dues or fees are provided to persons who attend a public school or public college or university.
  3. (c) This section shall not be construed to levy a tax on any sale or transfer of any interest in real property, regardless of whether or not such property is used for amusement or recreational purposes. This section shall not be construed to levy a tax on any sale or transfer of any ownership interest in tangible personal property, regardless of whether or not such property is used for amusement or recreational purposes.
  4. (d) The provisions of this section taxing charges for admission shall be construed to include all charges whatsoever made for admission to professional sporting events, including any charge for a seat license, skybox, luxury suite, or any other accommodation for spectators, whether styled as a license, lease, rental or otherwise.
  5. (e) The tax imposed by this section shall not apply to the amount of any privilege tax levied pursuant to § 7-3-202.
Backlinks (3)
History (13)
  • Acts 1984 (Ex. Sess.), ch. 13, §§ 1, 8
  • 1986, ch. 542, §§ 1, 2
  • 1990, ch. 1096, § 1
  • 1991, ch. 174, § 1
  • 1992, ch. 913, § 5
  • 1993, ch. 492, §§ 1-3
  • 1996, ch. 596, § 1
  • 1999, ch. 423, § 2
  • 2003, ch. 357, § 29
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 80
  • 2009, ch. 530, § 61.
§ 67-6-213. Renting or providing space to transient dealers or vendors.
  1. For the exercise of the privilege of making retail sales as defined by § 67-6-102, a tax is levied equal to the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202 of the gross receipts of each rental.
History (1)
  • Acts 1985, ch. 406, § 2.
§ 67-6-216. Nonmaterial costs of manufactured homes.
  1. (a) Notwithstanding any other provisions of this chapter to the contrary, state tax equal to one-half (½) the rate of tax provided for in § 67-6-202 is levied on the gross receipts or gross proceeds from the retail sale of a manufactured home, including any accessories, parts, furniture, appliances, delivery fees, installation fees, and other additional or incidental items or services that are part of the sale of the manufactured home, whether or not separately billed.
  2. (b) As used in this section, “manufactured home” means a structure as defined in § 68-126-202.
  3. (c) The tax levied by this section shall apply whether or not the manufactured home is installed as an improvement to the realty.
Backlinks (1)
History (2)
  • Acts 1986, ch. 733, § 1
  • 1997, ch. 194, §§ 1, 2.
§ 67-6-217. Aviation fuel — Tax imposed — Reimbursement of transportation equity trust fund for decreased aviation fuel tax revenue — Report.
  1. (a) Notwithstanding other provisions of this chapter, tax imposed with respect to the sale, the use, the consumption, the distribution, and the storage of aviation fuel that is actually used in the operation of airplane or aircraft motors, shall be at the rate of four and one-quarter percent (4.25%).
  2. (b)
    1. (1) For purposes of this section:
      1. (A) “Air carrier” means any person, firm, corporation, or entity providing air transportation of passengers or property;
      2. (B) “Tax year” means a period beginning on July 1 and ending on the following June 30; and
      3. (C) “Transportation hub” means a location in this state from which there originates fifty (50) or more flight departures five (5) days per week for six (6) or more months during the calendar year and where passengers or property are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier.
      4. (2) The tax imposed and remitted on a person's purchase, use, consumption, or storage of aviation fuel, pursuant to subsection (a), that is used in the operation of commercial aircraft of a certificated or licensed air carrier with a transportation hub within this state, must not exceed the following:
        1. (A) Eight million five hundred thousand dollars ($8,500,000) for the period of July 1, 2021, through June 30, 2022;
        2. (B) Five million dollars ($5,000,000) for the period of July 1, 2022, through June 30, 2023;
        3. (C) Three million dollars ($3,000,000) for the period of July 1, 2023, through June 30, 2024; and
        4. (D) One million dollars ($1,000,000) for a tax year occurring on or after July 1, 2024.
      5. (3) The commissioner shall establish a process for applying the cap provided by subdivision (b)(2).
  3. (c) The transportation equity trust fund must be reimbursed for decreased aviation fuel tax revenue resulting from any public act passed by the general assembly after January 1, 2021, in an amount equal to the estimated decrease in tax revenue as reflected in the fiscal note prepared for such legislation by the fiscal review committee in accordance with § 3-2-107. Any reimbursement to the transportation equity trust fund in accordance with this subsection (c) must be made from the general fund, subject to appropriation by the general assembly in the annual general appropriations act.
  4. (d) On or before December 31 each year, the department of finance and administration shall report in writing to the chairs of the finance, ways and means committees of the senate and the house of representatives, the chair of the transportation committee of the house of representatives, and the chair of the transportation and safety committee of the senate, the total amount of tax revenues collected pursuant to this section for the preceding fiscal year.
History (14)
  • Acts 1986, ch. 931, § 1
  • 1987, ch. 90, § 1
  • 2003, ch. 357, § 30
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2009, ch. 530, §§ 35, 40
  • 2011, ch. 72, §§ 1, 6
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2015, ch. 462, § 1
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1
  • 2021, ch. 477, § 1
  • 2023, ch. 455, § 1.
§ 67-6-219. Sales of tangible personal property to common carriers for use outside state.
  1. (a) Notwithstanding other provisions of this chapter, tax is imposed with respect to sales of tangible personal property to common carriers for use outside this state at the rate of three and seventy-five hundredths percent (3.75%).
  2. (b) Persons seeking to make purchases at the reduced rate provided in this section shall apply to the commissioner for a certificate as provided in § 67-6-528. In order to obtain the reduced tax rate, a copy of the certificate provided for by this section or a fully completed Streamlined Sales Tax certificate of exemption shall be given by the common carrier to each dealer from which it intends to make purchases at the reduced rate.
  3. (c) If a common carrier purchases property at the reduced rate and the property is used inside the state or the common carrier fails to keep records as required by the commissioner to establish that property purchased at the reduced rate was not used in this state, but was removed from this state for use and consumption outside this state, then the common carrier shall be liable for tax at the full rate provided by § 67-6-203, regardless of whether the carrier had previously obtained a certificate as provided by this section.
  4. (d) This section does not apply to sales of food and food ingredients, alcoholic beverages, tobacco, candy, dietary supplements, prepared food or fuel.
History (11)
  • Acts 1987, ch. 428, § 2
  • 2003, ch. 357, § 32
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 82, 145
  • 2009, ch. 530, §§ 35, 41
  • 2011, ch. 72, §§ 1, 7
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1.
§ 67-6-220. Retail sales at flea markets.
  1. (a) All dealers, not otherwise registered pursuant to this chapter, who sell at flea markets shall register and pay tax in one (1) of the following manners:
    1. (1)
      1. (A) Persons engaging in the business of making retail sales at flea markets may register and pay an annual registration fee of forty-five dollars ($45.00). This registration fee shall be credited against that person's actual annual sales tax liability. This registration shall be valid at any location in the state during the period for which it is issued. In the event that the annual sales tax liability is less than forty-five dollars ($45.00), then that person is not required to file an annual sales tax return, but in no event shall any person receive a refund of any portion of the registration fee; and
      2. (B) Should any dealer's tax liability exceed forty-five dollars ($45.00), then such dealer shall file an annual return. The annual return shall be submitted upon forms prescribed, prepared and furnished by the commissioner of revenue showing the gross sales, or purchases, as the case may be, arising from all sales or purchases taxable under this chapter during the preceding January 1 through December 31. The annual return shall be due on or before January 20 of the subsequent calendar year. Any dealer beginning business subsequent to January 1 shall be responsible for transmitting an annual return on or before January 20 of the subsequent calendar year for all months in which the dealer made taxable sales or purchases through December 31 of the preceding year; or
    2. (2)
      1. (A) Persons engaging in the business of making retail sales at flea markets, as defined in § 67-6-102, not on a permanent basis, may, at their option, register as follows:
        1. (i) On a quarterly basis for a fee of fifteen dollars ($15.00). This registration fee is to be paid per location at which retail sales are made. A person may register a maximum of three (3) times per year at each location at which the person registers. If such person is required to register in excess of three (3) times per year, then the person shall purchase an annual registration certificate. In no event shall a refund be payable from the registration fee. This registration fee shall, however, be credited against any such person's actual sales tax liability; or
        2. (ii) On a monthly basis for a fee of five dollars ($5.00). This registration fee is to be paid per location at which retail sales are made. A person may register a maximum of three (3) times per year at each location at which the person registers. If such person is required to register in excess of three (3) times, then the person shall purchase either a quarterly or an annual registration certificate. In no event shall a refund be payable from the registration fee. This registration fee shall, however, be credited against any such person's actual sales tax liability; and
      2. (B) Dealers registering on a quarterly or monthly basis shall file quarterly returns if their tax liability exceeds the amount of the registration fees paid during that quarter. The quarterly returns shall be submitted upon forms prescribed, prepared and furnished by the commissioner, showing the gross sales, or purchases, as the case may be, arising from all sales or purchases taxable under this chapter during the preceding quarter. The quarterly return shall be due on or before the twentieth day of the subsequent month following the last day of the preceding quarterly period.
  2. (b) At the time of transmitting any of the returns as required under subsection (a) to the commissioner, the dealer shall remit to the commissioner therewith the amount of tax due, and failure to so remit such tax or to file such return shall cause the tax to become delinquent. The failure to so remit such tax or to file such return shall subject the dealer to the penalty otherwise provided in this title for delinquent tax payments to the commissioner.
  3. (c)
    1. (1) The flea market operator shall be responsible for ensuring that all dealers operating at the operator's flea market are properly registered with the department. The flea market operator shall be empowered to accept applications for registration as required under subdivisions (a)(1) and (2) from dealers not otherwise registered, together with all fees required thereunder. The flea market operator shall supply the dealer with a copy of the application for registration, together with evidence of the amount of fee submitted. This copy shall be displayed by the dealer and shall serve as evidence of proper registration.
    2. (2) The flea market operator shall submit the fees collected under this section on such operator's monthly return. The applications collected shall be transmitted to the commissioner, together with such operator's monthly return. Tax returns and payments shall be due and payable by flea market operators in the manner set out in § 67-6-504. The failure to so remit such tax or to file such return shall subject the flea market operator to the penalty otherwise provided in this title for delinquent tax payments to the commissioner.
  4. (d) There shall be a penalty upon the dealer of ten dollars ($10.00) per booth per day for violations of subsections (a)-(c). The department may also impose a penalty upon the flea market operator of ten dollars ($10.00) per booth per day, up to a maximum fine of one hundred dollars ($100) per day at any location where it is determined by the commissioner that the flea market operator has been negligent in allowing dealers to operate at the flea market without proper registration. For the purposes of this subsection (d), “negligent” includes, but is not limited to, any failure of the flea market operator to make a reasonable attempt to ensure that every dealer renting space from the operator is properly registered for tax purposes. A determination by the commissioner that a flea market operator has been negligent shall be deemed presumptively correct. Such determination may be rebutted only if the flea market operator makes a showing of due care. As used in this subsection (d), “due care” means that the flea market operator has made every reasonable effort to ensure that every dealer renting space from the operator is properly registered for tax purposes.
  5. (e) This section does not apply to dealers who sell prepared foods at flea markets for consumption.
Backlinks (1)
History (1)
  • Acts 1988, ch. 572, § 2.
§ 67-6-221. Tax imposed on interstate or international telecommunications services sold to businesses — Privilege tax imposed on modern market telecommunications providers — Penalty.
  1. (a) Notwithstanding any other provision of the law to the contrary, interstate or international telecommunication services sold to businesses shall be subject to a tax imposed at the rate of seven and one-half percent (7.5%).
  2. (b) The revenue from a rate equal to one-half percent (0.5%) of the tax shall be deposited in the general fund. The remainder of the revenue generated from the tax imposed by subsection (a) shall be distributed to municipalities and counties in accordance with subsection (c) to mitigate the impact on local governments as the result of assessing the operating property of modern market telecommunications providers as commercial and industrial property rather than as public utility property. The department of revenue shall hold all such revenue until it is first distributed to the local governments on March 20, 2018, or as soon thereafter as possible, to allow sufficient time to determine the correct distribution of revenue under subsection (c).
  3. (c) On or before January 1, 2018, the office of state assessed properties in the office of the comptroller of the treasury shall calculate, for each local government levying an ad valorem property tax, the difference in property tax revenue or comparable in lieu of tax payments received for tax year 2017 that results from assessing the operating property of modern market telecommunications providers as commercial and industrial property rather than as public utility property. These calculations shall be used to calculate each local government's percentage share of the total reduction in such revenue for tax year 2017 and these percentages shall be forwarded to the department of revenue by January 1, 2018. For all periods beginning on or after June 1, 2017, the department shall distribute the revenue generated from the tax imposed under subsection (a), other than the revenue earmarked for the general fund under subsection (b), to the local governments in proportion to each local government's percentage share of the total difference in property tax and in lieu of tax revenue for tax year 2017, as reported to the department by the office of state assessed properties pursuant to this subsection (c).
  4. (d)
    1. (1) Beginning January 1, 2018, notwithstanding any law to the contrary, every modern market telecommunications provider shall pay an annual privilege tax for the privilege of competing with public utilities to provide telecommunications services in this state.
    2. (2) Except as otherwise provided in subdivision (d)(3), the amount of tax imposed under this subsection (d) shall be equal to the sum of:
      1. (A) The taxpayer's pro rata share percentage multiplied, as applicable, by:
        1. (i) Four million dollars ($4,000,000), for the tax imposed in 2018;
        2. (ii) Three million dollars ($3,000,000), for the tax imposed in 2019;
        3. (iii) Two million dollars ($2,000,000), for the tax imposed in 2020;
        4. (iv) One million dollars ($1,000,000), for the tax imposed in 2021; and
        5. (v) Zero dollars ($0.00), for the tax imposed in 2022; and
      2. (B) The taxpayer's pro rata share percentage multiplied, as applicable, by:
        1. (i) Seven hundred fifty thousand dollars ($750,000), for the tax imposed in 2018, 2019, and 2020; and
        2. (ii) Five hundred thousand dollars ($500,000), for the tax imposed in 2021 and 2022.
    3. (3) The total privilege tax imposed on a taxpayer under this subsection (d) shall not exceed the difference between:
      1. (A) The aggregate ad valorem taxes and in lieu of tax payments paid by such taxpayer to political subdivisions of this state during the prior tax year; and
      2. (B) The net amount of ad valorem tax and in lieu of tax payments such taxpayer would have paid in the prior tax year had its operating property been classified as public utility property, less the amount of the most recent payment such taxpayer received under § 67-6-222(b).
    4. (4) Any taxpayer claiming that subdivision (d)(3) applies to limit its privilege tax liability for a particular tax year shall notify the department of revenue of such claim in the manner prescribed by the department and must prove by clear and convincing evidence that such limitation applies.
    5. (5) The privilege tax shall be reported and paid annually to the department of revenue on or before April 20 of each year in the manner prescribed by the department. On or before March 1, 2018, the department shall coordinate with the office of state assessed properties in the office of the comptroller of the treasury to calculate the pro rata share percentage of each taxpayer subject to the privilege tax imposed by this subsection (d) and shall send notice to each such taxpayer providing the taxpayer with its pro rata share percentage and prescribing the manner in which the taxpayer must report and pay the privilege tax imposed by this subsection (d).
    6. (6) Notwithstanding any law to the contrary, all moneys received by the department of revenue under this subsection (d) shall be distributed in the following manner:
      1. (A) The revenue from the portion of the tax calculated under subdivision (d)(2)(A) shall be deposited in the general fund; and
      2. (B) The revenue from the portion of the tax calculated under subdivision (d)(2)(B) shall be distributed to the local governments in the same proportion that revenue is distributed to local governments under subsection (c).
    7. (7) Any moneys received from a taxpayer that prove by clear and convincing evidence that the limit set forth in subdivision (d)(3) applies for a particular tax year shall be deposited in the general fund and distributed to the local governments in the same relative proportion as those moneys would have been deposited in the general fund under subdivision (d)(6)(A) and distributed to the local governments under subdivision (d)(6)(B) in the same tax year if the limitation on privilege tax liability had not applied.
    8. (8) This subsection (d) shall be repealed on December 31, 2022. No privilege tax shall be levied under this subsection (d) after December 31, 2022. This subdivision (d)(8) shall not absolve any taxpayer of liability for any tax levied under this subsection (d) prior to December 31, 2022.
    9. (9) This subsection (d) shall not apply to a municipal or similar provider of broadband services that makes in lieu of tax payments pursuant to title 7, chapter 52, part 4 or 6, or that makes similar in lieu of tax payments pursuant to a private act.
  5. (e) When any person fails to correctly report on a return the person's sales of interstate or international telecommunications services subject to tax under subsection (a), there shall be imposed a penalty in the amount of ten percent (10%) of the taxes due on such sales or twenty-five percent (25%) of the taxes due on such sales if the commissioner determines that the failure to correctly report such sales is the result of gross negligence. The commissioner may waive such penalty, in whole or in part, if the commissioner determines that the failure is not due to gross negligence, intentional disregard for any tax law or rule promulgated under this title, or fraud.
  6. (f) As used in this section:
    1. (1) “Modern market telecommunications provider” means a modern market telecommunications provider, as defined in § 67-5-501, that was operating within the state as of January 1, 2017, and that received an ad valorem tax equity payment under § 67-6-222(b) in at least one (1) of the three (3) years prior to January 1, 2017; and
    2. (2) “Pro rata share percentage” means a taxpayer's pro rata share of the total assessed value of all operating property used by modern market telecommunications providers in the state during tax year 2017.
Backlinks (4)
History (19)
  • Acts 1989, ch. 312, § 10
  • 1992, ch. 529, § 5
  • 1993, ch. 190, §§ 1, 2
  • 1999, ch. 413, § 4
  • 2001, ch. 195, § 1
  • 2003, ch. 357, § 33
  • 2004, ch. 592, § 10
  • 2004, ch. 782, § 9
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2005, ch. 500, § 9
  • 2006, ch. 989, § 14
  • 2009, ch. 530, §§ 35, 42
  • 2011, ch. 72, §§ 1, 8
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2017, ch. 490, § 12
  • 2019, ch. 157, § 1.
§ 67-6-222. Telecommunications ad valorem tax reduction fund — Discontinuance.
  1. (a)
    1. (1) There is created in the state treasury a special fund to be known as the telecommunications ad valorem tax reduction fund, which shall be administered by the comptroller of the treasury. The moneys in the fund shall be used solely and exclusively to pay the expenses incurred by the comptroller of the treasury in administering the fund and implementing subsection (b) and to make the ad valorem tax equity payments authorized by subsection (b). The moneys in the fund shall be invested in the same manner as the moneys in the state general fund. Interest earned on investment of moneys in the fund shall be deposited in and credited to the fund.
    2. (2) On or before June 1, 2007, and on or before June 1 of each year thereafter, any moneys in the telecommunications ad valorem tax reduction fund as of March 1 of each year that are in excess of the amount necessary to make the payments pursuant to subsection (b) shall be deposited into the state general fund and allocated pursuant to § 67-6-103(a).
  2. (b)
    1. (1)
      1. (A) Pursuant to the rules of this subsection (b), every person providing telecommunications services subject to tax under this chapter shall be entitled to an ad valorem tax equity payment in an amount equal to the sum of:
        1. (i) Twenty-seven and twenty-seven hundredths percent (27.27%) of the aggregate ad valorem taxes paid to political subdivisions of this state relating to property assessed with a lien date on or after January 1, 2002, with respect to such person's public utility property, as defined in § 67-5-501(8)(B), which is real property; and
        2. (ii) Forty-five and forty-five hundredths percent (45.45%) of the aggregate ad valorem taxes paid to political subdivisions of this state relating to property assessed with a lien date on or after January 1, 2002, with respect to such person's public utility property, as defined in § 67-5-501(9)(B), that is personal property.
      2. (B) The payment allowed by this subsection (b) shall be based on the date that the respective ad valorem taxes are paid, regardless of the date on which such taxes were originally due.
    2. (2) On or before May 1, 2007, and on or before May 1 of each year thereafter, every telephone company entitled to a payment under this subsection (b) shall notify the comptroller of the treasury in writing of the amount of such payment and the basis for claiming such payment.
    3. (3) On or before June 1, 2007, and on or before June 1 of each year thereafter, the comptroller of the treasury shall make all payments allowed by this subsection (b). If the comptroller of the treasury fails to make such payment within the time prescribed, the telephone company entitled to such payment may file suit against the comptroller of the treasury in chancery court in the appropriate county in this state.
    4. (4) The amount of the payments made pursuant to this subsection (b) in any year shall be limited to the amount contained in the telecommunications ad valorem tax reduction fund on March 1 of such year, after deduction for the reasonable administrative expenses incurred by the comptroller of the treasury. To the extent that the amount contained in the telecommunications ad valorem tax reduction fund, after deduction for the comptroller of the treasury's reasonable administrative expenses, does not equal or exceed the total amount of payments allowed by this subsection (b) such payments shall be proportionately reduced by the amount of the shortfall. The comptroller of the treasury shall determine the amount of any reductions pursuant to this subdivision (b)(4).
    5. (5) In the event that the ad valorem tax liability of a company is reduced for any year with respect to which such company has received an ad valorem tax equity payment pursuant to this section, thereby entitling such company to a refund of ad valorem taxes, such company shall repay the portion of such ad valorem tax equity payment attributable to such reduction within sixty (60) days of receiving notice of such reduction. All such repayments shall be credited to the ad valorem tax reduction fund.
    Backlinks (2)
  3. (c) The telecommunications ad valorem tax reduction fund created by this section is discontinued effective June 2, 2017, subject to the following:
    1. (1) On or before June 1, 2017, the comptroller of the treasury shall make all payments that are required by subsection (b). Any moneys remaining in the telecommunications ad valorem tax reduction fund as of June 1, 2017, that are in excess of the amount necessary to make the payments must be allocated pursuant to § 67-6-103(a); and
    2. (2) No person is entitled to any payment under subdivision (c)(1), unless the payment is claimed on or before May 1, 2017.
History (6)
  • Acts 2001, ch. 195, §§ 2-4
  • 2002, ch. 714, § 1
  • 2006, ch. 753, §§ 1-4
  • 2011, ch. 76, §§ 1-5
  • 2013, ch. 61, § 5
  • 2017, ch. 490, § 13.
§ 67-6-223. Property of proprietorship incorporated during tax period.
  1. No tax is due with respect to tangible personal property of a sole proprietorship that becomes the assets of a corporation resulting from the incorporation of such sole proprietorship. Any such transactions are not a taxable event and shall not be deemed to be a sale under this title.
History (1)
  • Acts 1994, ch. 965, § 1.
§ 67-6-224. Qualified headquarters facility.
  1. (a) A taxpayer that constructs, expands, or remodels a headquarters facility in this state through a minimum capital investment of at least ten million dollars ($10,000,000) and creates at least one hundred (100) new full-time employee jobs in conjunction with the construction, expansion, or remodeling of such facility shall be eligible for a credit of all state sales or use taxes paid to the state of Tennessee, except tax at the rate of one-half percent (0.5%), on the sale or use of qualified tangible personal property that is directly related to the creation of the new full-time employee jobs.
  2. (b) For purposes of this section, the following definitions shall apply:
    1. (1) “Facility” means a building or buildings, either newly constructed, expanded, or remodeled, housing headquarters staff employees and located in a county or metropolitan statistical area in this state. A facility may include parking facilities exclusively for the use of headquarters staff employees and visitors; provided, that the parking facilities are built in conjunction with the newly constructed, expanded, or remodeled building or buildings. An expansion of a headquarters facility may be connected to or separate from a headquarters facility or other facilities located in a county or metropolitan statistical area in this state. The facility must be utilized as a headquarters facility for a period of at least ten (10) years from the end of the investment period;
    2. (2) “Full-time employee job” means a permanent, rather than seasonal or part-time, employment position that provides employment as a headquarters staff employee to a person for at least thirty-seven and one-half (37.5) hours per week with minimum health care, as described in title 56, chapter 7, part 22, and that pays at least one hundred fifty percent (150%) of the state's average occupational wage, as defined in § 67-4-2004, for the month of January of the year in which the full-time employee job was created;
    3. (3) “Headquarters facility” means a facility in this state that houses the international or national headquarters of a taxpayer, where headquarters staff employees are located and employed, and where the primary headquarters-related functions and services are performed; provided, that any taxpayer that has filed an application and business plan as a regional headquarters with the department prior to July 1, 2015, shall continue to be eligible for the credit described in subsection (a);
    4. (4) “Headquarters-related functions and services” means those functions involving administrative, planning, research and development, marketing, personnel, legal, computer, or telecommunications services performed by headquarters staff employees on an international or national basis. “Headquarters-related functions and services” does not include functions involving manufacturing, processing, warehousing, distribution, wholesaling, or operating a call center; provided, that any taxpayer that has filed an application and business plan as a regional headquarters with the department prior to July 1, 2015, shall continue to be eligible for the credit described in subsection (a);
    5. (5) “Headquarters staff employees” means executive, administrative, or professional workers performing headquarters-related functions and services. An executive employee is a full-time employee who is primarily engaged in the management of all or part of the enterprise. An administrative employee is a full-time employee who is not primarily involved in manual work and whose work is directly related to management policies or general headquarters operations. A professional employee is an employee whose primary duty is work requiring knowledge of an advanced type in a field of science or learning. This knowledge is characterized by a prolonged course of specialized study;
    6. (6) “Investment period” means that the investment must be made during the period beginning one (1) year prior to the start of the construction, expansion, or remodeling and ending one (1) year after substantial completion of the construction, expansion, or remodeling of the facility. However, in no event shall the investment period exceed six (6) years;
    7. (7) “Minimum capital investment” means an investment by the taxpayer and the lessor to the taxpayer of ten million dollars ($10,000,000), during the investment period, in a building or buildings, either newly constructed, expanded, or remodeled. The minimum capital investment may include, but is not limited to, the purchase price of an existing building and the cost of building materials, labor, equipment, furniture, fixtures, computer software, parking facilities and landscaping, but shall not include land or inventory;
    8. (8) “New full-time employee job” means full-time headquarters staff employee jobs that are new to this state, that increase net employment of the taxpayer above the level of employment in existence immediately prior to the beginning of the investment period, and that, for at least ninety (90) days, did not exist in Tennessee as a job position of the taxpayer or of another business entity. The new full-time employee jobs must be created and filled within the investment period. An employee in a new full-time employee job may be employed at a temporary location in this state, pending completion of construction, expansion, or remodeling work at the qualified headquarters facility;
    9. (9) “Qualified headquarters facility” means a headquarters facility where the taxpayer has made the minimum capital investment and has created the required number of new full-time employee jobs to be entitled to the credit provided by this section; and
    10. (10) “Qualified tangible personal property” means building materials, machinery, equipment, furniture and fixtures used exclusively in the qualified headquarters facility and purchased or leased during the investment period and computer software used primarily in the qualified headquarters facility and purchased or leased during the investment period; provided, however, that “qualified tangible personal property” only includes such property that is directly related to the creation of the new full-time employee jobs. “Qualified tangible personal property” does not include supplies or repair parts. “Qualified tangible personal property” does not include any payments with respect to leases of qualifying tangible personal property that extend beyond the investment period. “Qualified tangible personal property” does not include any materials, machinery, equipment, furniture, or fixtures that replace tangible personal property that previously generated a credit under this section.
    Backlinks (3)
  3. (c) A taxpayer qualifying for this credit must be subject to the taxes imposed by chapter 4, parts 20 and 21 of this title or be an insurance company as defined in § 56-1-102 or be a general partnership that is entitled to compute a job tax credit pursuant to § 67-4-2109(b)(3)(G). The taxpayer shall not be permitted to take advantage of any additional sales tax or other state tax credits, exemptions, or reduced rates that would otherwise be valuable as a result of the same purchases or minimum investment, except the tax credits provided under §§  67-4-2009(1) and (3)(A)(ii) and 67-4-2109(b) and (c). A taxpayer qualifying for this reduced rate shall also not be permitted to utilize the credits available to hospital companies under § 67-4-2009.
  4. (d)
    1. (1) A taxpayer seeking this credit shall first submit to the commissioner of revenue an application to qualify as a headquarters facility, together with a plan describing the investment to be made, the number of new full-time employee jobs to be created, and a description of such jobs. In the case of a leased facility, the lessor shall also file an application and plan, if any taxes paid by the lessor are to be claimed as part of the credit provided in subsection (a). The application and plan shall be submitted on forms prescribed by the commissioner and shall demonstrate that the requirements of the law will be met.
    2. (2) After approval of the application and business plan, the commissioner shall issue a letter to the taxpayer stating that the taxpayer has tentatively met the requirements for the credit provided for in this section.
    3. (3) In order to receive the credit, the taxpayer must submit a claim for credit, along with documentation as required by the commissioner showing that Tennessee sales or use taxes have been paid to the state on qualified tangible personal property. The taxpayer's claim for credit of sales or use taxes paid to Tennessee may include such taxes paid by the taxpayer, lessor, in the case of a leased facility, contractors, and subcontractors on sales or use of qualified tangible personal property. Documentation verifying that the minimum investment requirements have been met shall include, but are not limited to, employment records, invoices, bills of lading, lease agreements, contracts, and all other pertinent records and schedules as required by the commissioner.
    4. (4) In order to receive the credit, the taxpayer must also certify, on a form prescribed by the department, the number of new full-time employee jobs created and that the purchases of qualified tangible personal property for which the credit is claimed are directly related to the creation of such new full-time employee jobs.
    5. (5) The commissioner shall review the claim for credit, and notify the taxpayer of the approved tax credit amount and provide direction for taking the credit. The taxpayer may not take the credit until the commissioner has notified the taxpayer of the amount approved and provided direction to the taxpayer on the proper methodology for taking the credit. The credit may only be taken by the taxpayer making the minimum capital investment of at least ten million dollars ($10,000,000) and creating at least one hundred (100) new full-time employee jobs in conjunction with the construction, expansion, or remodeling of the qualified headquarters facility.
  5. (e) If the minimum investment requirements are not made within the investment period, or the terms of this section are not met, the taxpayer shall be subject to assessment for any sales or use tax, penalty, or interest that would otherwise have been due and for which credit was taken. The statute of limitations shall not begin to run on these assessments until December 31 of the final year of the ten-year period provided for in subdivision (b)(1).
  6. (f) Credits under this section shall not reduce the taxes earmarked and allocated to education, pursuant to § 67-6-103(c).
  7. (g) Nothing in this section shall require that the taxpayer establish its commercial domicile in this state in order to receive the credit.
  8. (h)
    1. (1) The commissioner may, in the commissioner's sole discretion, enter into a managed compliance agreement with a taxpayer that is entitled to the credit provided in this section. The agreement may provide for:
      1. (A) One (1) or more effective rates to be applied to a predetermined base of purchases subject to the credit provided in this section for a defined period;
      2. (B) A procedure under which the eligible taxpayer can use a direct pay permit issued by the commissioner to purchase tangible personal property without paying to its supplier the tax imposed by this chapter and to remit the tax due on the tangible personal property directly to the department;
      3. (C) A term not to exceed the investment period; provided, that nothing shall preclude the commissioner from entering into a subsequent agreement with the same taxpayer;
      4. (D) The conditions under which the agreement may require modification or termination;
      5. (E) A procedure to resolve disputes concerning the agreement; and
      6. (F) Any other provisions that the commissioner and the eligible taxpayer mutually agree upon to carry out the purposes of this section.
    2. (2) The commissioner may, in the commissioner's sole discretion, terminate a managed compliance agreement and conduct an audit of an eligible taxpayer if the taxpayer fails to fulfill any of the terms of the agreement and the failure is materially adverse to the commissioner and the taxpayer fails to cure the failure not later than thirty (30) days after the mailing of written notice of such failure by the commissioner; provided, however, that no such notice need be given in the event the failure is not capable of being cured or the commissioner believes that the collection of any tax required to be collected and paid to the state or of any assessment will be jeopardized by delay.
    3. (3) Other than as authorized by this section and expressly agreed in the managed compliance agreement, nothing in this section shall abridge or alter any requirements, rights or obligations of an eligible taxpayer or the commissioner granted or imposed by statute or regulation.
    4. (4) For purposes of this subsection (h):
      1. (A) “Eligible taxpayer” means any person that has qualified to receive the credit provided in this section and that, in the opinion of the commissioner, meets the following criteria:
        1. (i) Demonstrates a willingness and ability to comply with the tax laws of this state;
        2. (ii) Maintains an acceptable system of internal controls and business records; and
        3. (iii) Cooperates with the state's efforts to collect tax; and
      2. (B) “Managed compliance agreement” means an agreement between the commissioner and an eligible taxpayer that provides for an agreed upon method for calculating the credit due under this section.
Backlinks (17)
History (9)
  • Acts 2003, ch. 284, § 1
  • 2005, ch. 499, §§ 57, 58
  • 2006, ch. 1019, §§ 36, 37
  • 2007, ch. 602, § 3
  • 2008, ch. 1106, §§ 27, 51
  • 2009, ch. 530, §§ 9, 19, 20
  • 2011, ch. 508, §§ 1-12
  • 2015, ch. 504, §§ 18-20
  • 2019, ch. 451, § 3.
§ 67-6-226. Sales tax on cable and wireless cable television services.
  1. Notwithstanding other provisions of this chapter to the contrary, commencing on September 1, 1999, state tax at the rate of eight and one-quarter percent (8.25%) on each sale at retail is imposed with respect to fees for subscription to, access to, or use of television programming or television services provided by a video programming service provider offered for public consumption, except such state tax shall not apply to television programming or television service charges or fees in an amount less than fifteen dollars ($15.00) provided by a video programming service provider offered for public consumption.
History (11)
  • Acts 1999, ch. 423, § 3
  • 2003, ch. 357, § 34
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 45, 51, 147
  • 2009, ch. 530, §§ 35, 43
  • 2011, ch. 72, §§ 1, 9
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1.
§ 67-6-227. Sales tax on satellite television services.
  1. Notwithstanding other provisions of this chapter to the contrary, state tax at the rate of eight and one-quarter percent (8.25%) on each sale at retail is imposed with respect to fees for subscription to, access to, or use of television programming or television services delivered by a provider of direct-to-home satellite service.
History (10)
  • Acts 1999, ch. 423, § 7
  • 2003, ch. 357, § 35
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2009, ch. 530, §§ 35, 44
  • 2011, ch. 72, §§ 1, 10
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1.
§ 67-6-228. Food retail sales tax.
  1. (a) Notwithstanding any provision of this part to the contrary, except as otherwise provided in subsection (b), the retail sale of food and food ingredients for human consumption shall be taxed at the rate of four percent (4%) of the sales price.
    Backlinks (4)
  2. (b) The retail sale of food and food ingredients sold as prepared food, alcoholic beverages, candy, dietary supplements and tobacco shall be taxed at the rate levied on the sale of tangible personal property at retail by § 67-6-202.
Backlinks (1)
History (9)
  • Acts 2002, ch. 856, § 6
  • 2003, ch. 357, § 36
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 600, § 1
  • 2007, ch. 602, §§ 51, 83
  • 2012, ch. 1058, § 1
  • 2013, ch. 323, § 1
  • 2017, ch. 181, § 30.
§ 67-6-229. Sales to schools or school support groups intended for resale.
  1. Notwithstanding the exemptions provided by §§ 67-6-322 and 67-6-329 for sales to schools, retail sale and sale at retail subject to tax include any sale of tangible personal property or taxable services to a public or private school, grades kindergarten through twelve (K-12), or school support group, where the property or services are intended for resale by the school or school support group. Resales of the tangible personal property or taxable services by the school or school support group shall not be subject to tax. If for any reason a vendor does not collect and remit tax to the department on the sale of these items to the school or school support group, then the school or school support group shall be liable for use tax based on the purchase price of the items. This section does not apply to sales of textbooks and workbooks. This section does not apply to food and food ingredients or prepared food, when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12).
Backlinks (1)
History (4)
  • Acts 2003, ch. 357, § 37
  • 2004, ch. 959, §§ 9, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 84.
§ 67-6-230. Prepaid telephone calling cards.
  1. Notwithstanding any other law to the contrary, the sale of a prepaid calling service and prepaid wireless calling service shall be subject to the tax levied on the sale of tangible personal property at retail by § 67-6-202 at the time of the sale or recharge of the calling card or authorization code. No additional tax imposed by this chapter shall be due when the telecommunication service is accessed or received by the user of the calling card or authorization code.
History (7)
  • Acts 2003, ch. 357, § 38
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2005, ch. 499, § 69
  • 2007, ch. 602, §§ 51, 53, 85
  • 2009, ch. 530, § 51
  • 2015, ch. 273, § 4.
§ 67-6-231. Retail sale, lease, licensing or use of computer software.
  1. (a) The retail sale, lease, licensing or use of computer software in this state, including prewritten and custom computer software, shall be subject to the tax levied by this chapter, regardless of whether the software is delivered electronically, delivered by use of tangible storage media, loaded or programmed into a computer, created on the premises of the consumer or otherwise provided. The tax shall be levied on the sales price or purchase price of the computer software at a rate equal to the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202.
  2. (b) For purposes of subsection (a), “use of computer software” includes the access and use of software that remains in the possession of the dealer who provides the software or in the possession of a third party on behalf of such dealer. If the customer accesses the software from a location in this state as indicated by the residential street address or the primary business address of the customer, such access shall be deemed equivalent to the sale or licensing of the software and electronic delivery of the software for use in this state. If the sales price or purchase price of the software relates to users located both in this state and outside this state as indicated by a residential street or business address, the dealer or customer may allocate to this state a percentage of the sales price or purchase price that equals the percentage of users in this state. Any dealer that purchases computer software only for the purpose of reselling access and use of such software as described in this subsection (b) shall be entitled to purchase such software exempt from the tax imposed by this chapter, subject to the same rules that apply generally to any sale of tangible personal property for resale; provided, however, that software purchased by a qualified data center for access and use by an affiliated company, as defined by § 67-6-395(c), shall be deemed to be used and consumed by the qualified data center and not resold to the affiliated company. Nothing in this subsection (b) shall be construed to impose a tax on any services that are not currently subject to tax under this chapter, such as, but not limited to, information or data processing services, including the capability of the customer to analyze such information or data provided by the dealer; payment or transaction processing services; payroll processing services; billing and collection services; internet access; the storage of data, digital codes, or computer software; or the service of converting, managing, and distributing digital products.
    Backlinks (2)
History (7)
  • Acts 2003, ch. 357, § 38
  • 2004, ch. 959, §§ 61, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 86
  • 2009, ch. 530, § 52
  • 2015, ch. 273, § 5
  • 2015, ch. 514, § 22.
§ 67-6-232. Tax levy for hemp-derived cannabinoid products — Tax allocation.
  1. (a) For the exercise of the privilege of engaging in the business of selling products containing a hemp-derived cannabinoid in this state pursuant to title 43, chapter 27, part 2, there is levied an additional tax at the rate of six percent (6%) of the sales price of products containing a hemp-derived cannabinoid when sold at retail in this state.
  2. (b) The tax levied under this section is due and payable monthly on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this section, all retailers making taxable sales on or before the twentieth day of each month shall transmit to the commissioner of revenue, upon forms prescribed by the commissioner, returns showing gross sales during the preceding month.
  3. (c) All revenue generated from the tax levied pursuant to subsection (a) must be deposited into a special account in the state general fund, with fifty percent (50%) being allocated to the department of revenue and fifty percent (50%) being allocated to the department of agriculture, to be used exclusively for the regulation of products containing a hemp-derived cannabinoid in this state.
Backlinks (1)
History (1)
  • Acts 2023, ch. 423, § 5.
§ 67-6-233. Taxation of the retail sale, lease, licensing or use of specified digital products or video game digital products transferred to or accessed by subscribers or consumers.
  1. (a) The retail sale, lease, licensing or use of specified digital products or video game digital products transferred to or accessed by subscribers or consumers in this state shall be subject to the tax levied by this chapter on the sales price or purchase price of the specified digital products or video game digital products at a rate equal to the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202.
  2. (b) Retail sales, leases, licensing, or use subject to tax under this section includes:
    1. (1) Specified digital products or video game digital products sold with rights of permanent use and specified digital products or video game digital products sold with rights of less than permanent use;
    2. (2) Specified digital products or video game digital products sold with rights of use conditioned upon continued payment by the subscriber or purchaser; and
    3. (3) Subscriptions to, access to or the purchase of a digital code for receiving or accessing specified digital products or video game digital products.
  3. (c) For purposes of this section, “digital code” means a code that may be obtained in a tangible form, such as a card or through email, that provides a purchaser with a right to obtain one (1) or more specified digital products or video game digital products. A digital code does not include gift certificates or gift cards that represent a monetary value that is redeemable for specified digital goods. No additional tax imposed by this chapter shall be due when the user of the digital code receives or accesses the specified digital product or video game digital product.
  4. (d) Subscriptions to satellite radio services are excluded from specified digital products or video game digital products subject to tax under this section. Also, subscriptions to data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by electronic transmission to a purchaser, where the purchaser's primary purpose for the underlying transaction is the processed data or information, are excluded from specified digital products or video game digital products subject to tax under this section.
  5. (e) Retail sales subject to tax under this section shall not include retail sales that are subject to tax in accordance with any other provision of this chapter.
  6. (f) Retail sales subject to tax under this section shall not include any sale, lease, licensing or use of a specified digital product or video game digital product, if the sale, lease, license or use of the equivalent in a tangible form would be exempt as a sale for resale, sublease or subrent, including any further broadcast, distribution, license or retransmission of the digital product by a provider of video programming services, who shall not be deemed a subscriber or consumer for purposes of this section. For purposes of this section, “video programming services” means programming provided by or generally considered comparable to programming provided by a television broadcast station and shall include cable television services sold by a provider authorized pursuant to title 7, chapter 59, wireless cable television services (multipoint distribution service/multichannel multipoint distribution service) and video services provided through wireline facilities located at least in part in the public rights-of-way without regard to delivery technology, including internet protocol technology.
  7. (g) The tax imposed by this section shall apply to retail sales in this state, indicated by the residential street address or the primary business street address of the subscriber or consumer.
History (1)
  • Acts 2008, ch. 1106, § 19 2015, ch. 514, § 23.
§ 67-6-234. Computation of use tax applicable to the transfer of a motor vehicle from inventory.
  1. (a) Notwithstanding other provisions of this chapter to the contrary, use tax applicable to the transfer of a motor vehicle from inventory by an automobile manufacturer for its own use shall be computed as provided in this section. The tax shall be levied at the rate of tax levied on the sale of tangible personal property at retail by § 67-6-202 and shall be computed for each month during the term of use by multiplying the tax rate by an amount equal to one forty-eighth (⁄) of the wholesale price of the motor vehicle.
  2. (b) For purposes of this section, “wholesale price” means the price at which motor vehicles of the same make and model were regularly sold to automobile dealers at the time the vehicle was removed from inventory.
History (1)
  • Acts 2008, ch. 1106, § 30.
§ 67-6-235. Credits for qualified disaster restoration projects.
  1. (a) A taxpayer who engages in a qualified disaster restoration project in this state shall be eligible for a credit of all state sales or use taxes paid to the state of Tennessee, except tax at the rate of one-half percent (0.5%), on the sales or use of qualified tangible personal property.
  2. (b) For purposes of this section:
    1. (1) “Qualified disaster restoration project” means a project undertaken in connection with the restoration of real or tangible personal property located within a declared federal disaster area that suffered damages as a result of that disaster; provided, that such project involves a minimum investment of fifty million dollars ($50,000,000) or more for the restoration of such property. Such minimum investment may include, but is not limited to, the cost of constructing or refurbishing a building and the cost of building materials, labor, equipment, furniture, fixtures, computer software, and other tangible personal property within the building, but shall not include land or inventory; and
    2. (2) “Qualified tangible personal property” means building materials, machinery, equipment, computer software, furniture and fixtures used exclusively to replace or restore real or tangible personal property that suffered damages as a result of the disaster covered by this section and purchased or leased prior to substantial completion of the qualified disaster restoration project. “Qualified tangible personal property” does not include any payments with respect to leases of qualifying tangible personal property that extend beyond substantial completion of the disaster restoration project.
  3. (c) The taxpayer shall not be permitted to take advantage of any additional sales or use tax credits, exemptions, or reduced rates that would otherwise be available under this chapter as a result of the same purchases or minimum investment.
  4. (d)
    1. (1) A taxpayer seeking this credit shall first submit to the commissioner an application to qualify its project as a qualified disaster restoration project, together with a plan describing the investment to be made. In the case of a leased building, the lessor shall also file an application and plan, if any taxes paid by the lessor are to be claimed as part of the credit provided in this section. The application and plan shall be submitted on forms prescribed by the commissioner and shall demonstrate that the requirements of the law will be met.
    2. (2) After approval of the application and plan, the commissioner shall issue a letter to the taxpayer stating that the taxpayer has tentatively met the requirements for the credit provided in this section.
    3. (3) In order to receive the credit, the taxpayer shall submit a claim for credit, along with documentation as required by the commissioner showing that Tennessee sales or use taxes have been paid to the state on qualified tangible personal property. The taxpayer's claim for credit of sales or use taxes paid to Tennessee may include such taxes paid by the taxpayer, lessor, in the case of a leased building, contractors, and subcontractors on sales or use of qualified tangible personal property. Documentation verifying that the minimum investment requirements have been met shall include, but are not limited to, employment records, invoices, bills of lading, lease agreements, contracts, and all other pertinent records and schedules as required by the commissioner.
    4. (4) The commissioner shall review the claim for credit and notify the taxpayer of the approved tax credit amount and provide direction for taking the credit. The taxpayer may not take the credit until the commissioner has notified the taxpayer of the amount approved and provided direction to the taxpayer on the proper methodology for taking the credit. The credit may only be taken by the taxpayer engaged in the qualified disaster recovery project.
  5. (e) If the minimum investment requirement or other terms of this section are not met, the taxpayer shall be subject to assessment for any sales or use tax, penalty, or interest that would otherwise have been due and for which credit was taken. The statute of limitations shall not begin to run on these assessments until December 31 of the year in which the project is substantially completed.
  6. (f) Credits under this section shall not reduce the taxes earmarked and allocated to education pursuant to § 67-6-103(c).
  7. (g) Nothing in this section shall require that the taxpayer establish its commercial domicile in this state in order to receive the credit.
History (1)
  • Acts 2010, ch. 1134, § 54.
Part 3 Exemptions
§ 67-6-301. Agricultural products.
  1. (a)
    1. (1) The gross proceeds derived from the sale in this state of livestock, nursery stock, poultry and other farm or nursery products, in any calendar year, directly from a farmer or nurseryman, are exempt from the tax levied by this chapter, if fifty percent (50%) or more of such products are grown or produced in the calendar year by such farmer or nurseryman. If less than fifty percent (50%) of such products in any calendar year are grown or produced by the farmer or nurseryman, then only the gross proceeds of the sale in this state of the products actually grown or produced by such farmer or nurseryman shall be exempt from the tax levied by this chapter. When sales of livestock, nursery stock, poultry, or other farm or nursery products are made to consumers, other than as provided herein, they are not exempt from the tax imposed by this chapter.
    2. (2) As used in subdivision (a)(1), unless the context otherwise requires, “sale directly from a farmer or nurseryman,” includes, but is not limited to, the sale of farm or nursery products directly from a farmer to a consumer via an online nonprofit farmers' market; provided, that:
      1. (A) An amount equal to the consumer's full purchase price is transmitted by the consumer or the online farmers' market to the farmer; and
      2. (B) The cooperative or other organizing body of the online farmers' market levies no fee or other charge for facilitating the sales other than virtual booth rental fees periodically assessed to participating farmers in order to pay the actual costs incurred by the cooperative or organizing body in operating the online farmers' market.
  2. (b) It is specifically provided that the use tax, as defined herein, shall not apply to livestock and livestock products, to poultry and poultry products, to farm, nursery and agricultural products, when produced by the farmer or nurseryman and used by the nurseryman and members of the nurseryman's family.
  3. (c)
    1. (1) Each and every agricultural commodity sold by any person, other than a producer, to any other person, who purchases not for direct consumption, but for the purpose of acquiring raw products for use or for sale in the process of preparing, finishing, or manufacturing such agricultural commodity for the ultimate retail consumer trade, shall be and is exempt from any and all provisions of this chapter, including payment of the tax applicable to the sale, storage, use, transfer, or any other utilization or handling thereof, except when such agricultural commodity is actually sold as a marketable or finished product to the ultimate consumer, and in no case shall more than one (1) tax be exacted.
    2. (2) “Agricultural commodity,” for purposes of this section, means horticultural, poultry, and farm products, livestock and livestock products, and harvested trees.
      Backlinks (1)
  4. (d) The gross proceeds derived from the sale in this state of products that are grown or produced in a community garden, as defined in § 43-24-102, in any calendar year, directly from a representative of the community garden, are exempt from the tax levied by this chapter.
Backlinks (1)
History (8)
  • Acts 1947, ch. 3, § 5
  • C. Supp. 1950, § 1248.60 (Williams, § 1328.26)
  • Acts 1978, ch. 921, §§ 2, 3
  • 1983, ch. 162, § 1
  • T.C.A. (orig. ed.), § 67-3011
  • Acts 2007, ch. 507, § 1
  • 2007, ch. 602, § 87
  • 2014, ch. 556, § 4.
§ 67-6-302. Aircraft parts and supplies — Property leased by airport authority — Certain supplies and equipment sold to or by large airport service facility.
  1. (a) There is exempt from sales or use tax, the sale, use, storage or consumption of aircraft owned or leased by commercial interstate or international air carriers, and parts, accessories, materials and supplies sold to or used by commercial interstate or international air carriers for use exclusively in servicing and maintaining such carriers' aircraft, which aircraft are used principally in interstate or international commerce. This exemption shall not apply to fuel and other petroleum products or to shop equipment and tools.
  2. (b) There is exempt from the tax imposed by this chapter the gross proceeds of and payments on all leases and rentals of tangible personal property owned by an airport authority or authority, as defined in § 42-3-102 or § 42-4-103, respectively, to a business primarily engaged in the repair of aircraft owned or leased by commercial interstate or international air carriers; provided, that this exemption shall apply only with respect to tangible personal property primarily used by such businesses at an airport as defined in § 42-3-102 or § 42-4-103. This exemption only applies to leases by an airport authority or authority and not to subleases by a lessee.
  3. (c)
    1. (1) There is exempt from sales or use tax, the sale, use, storage, or consumption of parts, components, software, systems, accessories, materials, equipment, and supplies that are sold to or sold by an authorized large aircraft service facility or affiliate, including, but not limited to:
      1. (A) The sale by an authorized large aircraft service facility or affiliate of, and the corresponding use and consumption of, guaranty, warranty, or service contracts for or in connection with the performance of repair and refurbishment services of large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories; and
      2. (B) The replacement, installation, sale, use, storage, or consumption of parts, components, software, systems, accessories, materials, equipment, and supplies pursuant to the terms of any such guaranty, warranty, or service contracts.
    2. (2) The exemption provided in this subsection (c) shall not apply to fuel and other petroleum products or to shop equipment and tools.
    3. (3) As used in this subsection (c):
      1. (A) “Affiliate” means a company owned and controlled by or under the common ownership and control of and conducting business at such authorized large aircraft service facility;
      2. (B) “Authorized large aircraft service facility” means a repair station located within this state that is engaged in repair and refurbishment services of large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories under a valid air agency certificate issued by the federal aviation administration in accordance with 14 CFR Part 145 of the federal aviation regulations, with an authorized class rating of Air Frame Class IV, and organization designation authority, or such other similar or successor certificate, rating, and authority as the federal aviation administration may provide for from time to time;
      3. (C) “Large aircraft” means any aircraft that has a certified maximum take-off weight of twelve thousand five hundred pounds (12,500 lbs.) or greater;
      4. (D) “Large aircraft accessories” means any accessories, appurtenances, equipment, software, systems, or components for installation in or use in connection with any large aircraft mainframes or large aircraft engines;
      5. (E) “Large aircraft engine equipment” means any aircraft engine, including all associated parts, appurtenances, and accessories, for the propulsion of a large aircraft mainframe;
      6. (F) “Large aircraft mainframes” means any aircraft body, wing, tail assembly, aileron, rudder, landing gear, engine housing, and any other assembly or component integral to the aerodynamic structure of large aircraft; and
      7. (G) “Repair and refurbishment services” includes, but is not limited to, testing, inspections, interior completions, refurbishments, installations, painting, modifications, repairs, maintenance, or overhaul of large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories.
Backlinks (1)
History (57)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971 ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1989, ch. 408, § 1
  • 1994, ch. 873, § 1
  • 2015, ch. 506, § 1.
§ 67-6-303. Armed forces — Automobiles.
  1. (a) There is exempt from the tax imposed by this chapter the sale or use of a motor vehicle that is registered in this state in accordance with title 55, if the vehicle is sold to any of the following:
    1. (1) A member of a uniformed service in active military service of the United States, as defined in § 58-1-102, who is stationed in this state or at a military reservation located partially within the boundary of this state and that of another state under orders of the member's branch of service;
    2. (2) A member of the Tennessee national guard, or reserve member of a uniformed service of the United States, who is a participant in the active guard and reserve (AGR) program and is stationed in the state or at a military reservation located partially within the boundary of the state and that of another state under orders of the member's branch of service; or
    3. (3) A member of the Tennessee national guard, or a reserve member of a uniformed service of the United States, who has been called into active military service of the United States, as defined in § 58-1-102, and is stationed in a combat zone; provided, that, with respect to an individual, the exemption provided in this subdivision (a)(3) shall apply from the effective date of official military orders assigning the individual to a combat zone and shall expire ninety (90) days after the effective date of official military orders releasing the individual from the combat zone.
  2. (b) In order to qualify for the exemption provided in this section, the purchaser shall provide to the seller, or to the county clerk when appropriate, a copy of the official orders related to the stationing of the purchaser and, if applicable, the purchaser's status as a member of the AGR program. The orders shall be retained in the seller's files and a copy shall accompany the application for registration.
  3. (c) The exemption provided in this section shall apply only when the vehicle is titled and registered in the name of the qualifying individual, either alone or jointly with a spouse or lineal relative.
History (62)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1988, ch. 920, § 1
  • 1990, ch. 800, § 1
  • 1990, ch. 944, § 1
  • 1992, ch. 529, § 18
  • 1998, ch. 689, §§ 1, 2
  • 2004, ch. 842, § 1
  • 2006, ch. 1019, §§ 38, 39
  • 2007, ch. 602, § 38.
§ 67-6-304. Blood and plasma.
  1. There is exempt from the tax imposed by this chapter the sale of human blood, blood plasma, or any part thereof by any institution or organization that has received a determination of exemption from the internal revenue service under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)).
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-305. Demonstration or display property.
  1. There is exempt from sales or use tax the transfer, by any dealer in personal property, of any item from inventory to be used by such dealer, or the dealer's agent, or representative for demonstration or display purposes; provided, that such article of personal property shall be returned to inventory for sale in the usual course of trade within one hundred twenty (120) days; if such article of personal property is used for demonstration purposes for a period in excess of one hundred twenty (120) days, the dealer shall pay a use tax thereon for the amount that the cost of the article to the dealer exceeds the sales price of the article upon which sales tax is regularly assessed and paid when it is subsequently sold to a consumer.
History (55)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1984, ch. 511, § 1.
§ 67-6-306. Divorce — Transfer of automobile.
  1. There is exempt from sales and use tax the transfer between spouses of an automobile when such transfer is the result of a decree of divorce terminating that marriage.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-307. Energy or resource recovery facilities.
  1. There is excluded from the sales and use tax base that portion of the consideration, received from the sale of steam produced by an energy or resource recovery facility owned or operated by a municipality, that is used to satisfy an indebtedness to the state incurred pursuant to [former] title 68, chapter 211, part 4 [repealed]. This exclusion shall only apply if the facility has no more than one (1) customer, and the portion of the consideration subject to the exclusion is separately stated on each billing. In the event ownership of the facility is transferred to the facility's sole customer, that portion of the consideration previously excluded from taxation shall be taxable to the customer.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-308. Federal government.
  1. Notwithstanding § 67-6-501(a), no sales or use tax shall be payable on account of any direct sale or lease of tangible personal property or services to the United States, or any agency thereof created by congress, for consumption or use directly by it through its own government employees.
History (11)
  • Acts 1949, ch. 245, § 1
  • C. Supp. 1950, § 1248.52 (Williams, § 1328.24)
  • Acts 1955, ch. 242, § 7
  • 1957, ch. 166, § 1
  • 1963, ch. 38, § 6
  • 1963, ch. 174, § 1
  • 1978, ch. 536, § 1
  • 1978, ch. 601, § 1
  • 1980, ch. 563, § 1
  • 1980, ch. 812, § 1
  • T.C.A. (orig. ed.), § 67-3004(f).
§ 67-6-309. Rental from films, transcriptions and recordings.
  1. (a) There is exempt from the tax imposed by this chapter all rental for films to theaters that pay the tax imposed by § 67-6-212 on admissions to theaters or any admissions tax or gross receipts tax imposed on theaters in lieu of § 67-6-212. There is also exempt from this chapter all rental for films, transcriptions and recordings to radio stations and television stations operating under a certificate from the federal communications commission.
  2. (b) Persons qualifying for the exemption as provided in subsection (a) shall also be exempt from any portion of the gross receipts tax as provided in § 67-4-708.
History (6)
  • Acts 1951, ch. 172, § 1
  • 1953, ch. 128, § 1 (Williams, § 1328.27)
  • modified
  • T.C.A. (orig. ed.), § 67-3013
  • Acts 1985, ch. 137, § 1
  • 1985, ch. 452, § 9.
§ 67-6-310. Gun shows — Sales by nonprofit organizations.
  1. There is exempt from the sales and use tax the proceeds derived from sales at gun shows, displays or exhibits, sponsored by any nonprofit organization of gun collectors. This exemption shall not be applicable to any sale made by a person who regularly engages in business as a dealer in guns, or to any sale of a gun for future delivery.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-311. Construction machinery transferred between parent and subsidiary corporations.
  1. There is exempt from the tax imposed by this chapter the sale, transfer, or lease of construction machinery, as defined in § 67-6-102, to or from a parent corporation and a wholly-owned subsidiary to the extent that sales or use tax at the full rate provided by Tennessee law has been previously paid on such machinery by such parent or subsidiary corporation.
History (55)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1987, ch. 295, § 2.
§ 67-6-312. Transfer of preliminary artwork by advertising agency — Sale or use of final artwork and advertising materials subject to tax.
  1. (a) There is exempt from the sales or use tax the transfer of preliminary artwork by an advertising agency to its client. The use by an advertising agency of preliminary artwork created by the advertising agency to provide advertising services is exempt from the taxes imposed by this chapter.
  2. (b) The sale or use of final artwork is subject to the taxes levied by this chapter. If final artwork is provided by an advertising agency to its client pursuant to an agreement for providing advertising services, the sales price for the final artwork shall not include any fees paid for advertising services and shall include only the charges made by the advertising agency that are directly allocable to the production of final artwork.
  3. (c) The sale or use of advertising materials is subject to the taxes levied by this chapter.
History (1)
  • Acts 2009, ch. 530, § 55.
§ 67-6-313. Interstate commerce — Repair services — Tax credit.
  1. (a) It is not the intention of this chapter to levy a tax upon articles of tangible personal property imported into this state or produced or manufactured in this state for export.
  2. (b) There is exempt from the sales and use tax repair services, including parts and labor, with respect to qualified tangible personal property, where such services are initiated or completed, or both, by a repair person within this state, and where such property, after having repair services performed on it, is delivered or shipped outside this state. “Qualified tangible personal property” includes machinery, apparatus and equipment, with all associated parts, appurtenances and accessories, that is necessary for:
    1. (1) Extracting or removing any natural resources, including, but not limited to, that which is necessary for mining or logging endeavors;
    2. (2) Building or improving roads or highways;
    3. (3) Land clearing or excavation, or commercial or residential construction; or
    4. (4) Loading and unloading of containers or truck trailers on and off rail cars, ships, barges or aircraft.
  3. (c)
    1. (1) There is exempt from the sales and use tax all repair service labor performed with respect to aircraft engine equipment and aircraft mainframes, where the repair services on such aircraft engine equipment or aircraft mainframes are initiated, performed or completed in repair facilities within this state.
    2. (2) For the purposes of this subsection (c):
      1. (A) “Aircraft engine equipment” means any aircraft engine, including all associated parts, appurtenances and accessories, for the propulsion of aircraft used by a commercial interstate or international air carrier;
      2. (B) “Aircraft mainframes” means any aircraft body, wing, tail assembly, aileron, rudder, landing gear, engine housing, and any other assembly or component integral to the aerodynamic structure of aircraft used by a commercial interstate or international air carrier; and
      3. (C) “Repair service labor” includes all labor performed in connection with the repair, maintenance, overhauling, rebuilding, or modifying of aircraft engine equipment or of aircraft mainframes together with any test or inspection necessary or appropriate thereto.
  4. (d) There is exempt from the sales and use tax repair services, including parts and labor, to equipment used primarily in interstate commerce, where such repairs are performed outside of Tennessee and the original purchase of such equipment was exempt from sales and use tax.
  5. (e) There is exempt from the sales and use tax all repair parts and labor performed on fire protection machinery, apparatus, and equipment, with all associated parts, appurtenances, and accessories owned by fire departments in states other than Tennessee.
  6. (f) In order to prevent actual multistate taxation of the acts and privileges subject to tax under this chapter, any taxpayer, upon proof acceptable to the commissioner being submitted that the taxpayer has properly paid sales and use tax in another state on such acts and privileges, shall be allowed a credit against the tax imposed by this chapter to the extent of the amount of such tax properly due and paid in another state.
  7. (g)
    1. (1) There is exempt from the sales and use tax all repair service labor performed with respect to railroad rolling stock, where the repair services on such railroad rolling stock are initiated, performed or completed in repair facilities located within this state.
    2. (2) As used in this subsection (g):
      1. (A) “Railroad rolling stock” means all railroad equipment, operating on flanged wheels, that is currently being used, or is reasonably intended to be used, principally in interstate commerce; and
      2. (B) “Repair service labor” means labor performed with respect to the repair, maintenance, overhauling, rebuilding, modifying or adapting of railroad rolling stock, together with any test or inspection necessary or appropriate thereto. Such exemption does not apply to repair service labor performed by non-Class 1 railroad companies on Class 1 railroad rolling stock.
  8. (h)
    1. (1) There shall be exempt from the sales and use tax the following:
      1. (A) Sales of helicopters or airplanes and related equipment within Tennessee to purchasers who are not residents of the state, where such helicopters or airplanes and related equipment are intended to have a situs out of Tennessee, are in fact removed from Tennessee, within thirty (30) days from the date of their purchase;
      2. (B) Repair and refurbishment services within Tennessee with respect to helicopters and helicopter components and parts that have their situs outside of Tennessee and are removed from Tennessee within fifteen (15) days from the completion of such repair and refurbishment services. ‘‘Repair and refurbishment services’’ as used in this subdivision (h)(1)(B) and in subdivisions (h)(1)(C) and (D) includes, but is not limited to, modifications, conversions, and installations;
      3. (C) In addition to the exemptions in subdivisions (h)(1)(A) and (B), sales of helicopters and related equipment within Tennessee to purchasers who are not residents of the state, where such helicopters and related equipment are intended to have a situs out of Tennessee, and where such helicopters and related equipment remain within Tennessee following such sale solely for purposes of repair and refurbishment services, and are in fact removed from Tennessee within fifteen (15) days from the completion of such repair and refurbishment services; and
      4. (D) Repair and refurbishment services within Tennessee with respect to airplanes and airplane components and parts which have their situs outside of Tennessee and are removed from Tennessee within thirty (30) days from the completion of such repair and refurbishment services when such repair or refurbishment services with respect to such airplanes or airplane components or parts are:
        1. (i) Performed pursuant to and by the registered owner of one (1) or more “supplemental type certificates” issued by the federal aviation administration; or
        2. (ii) Performed pursuant to and by an authorized service facility designated by an original equipment manufacturer for such service with respect to aircraft qualifying as “transport category aircraft” under 14 CFR, parts 25, 29, 91 and 121.
    2. (2) As used in this subsection (h), “helicopter” means an aircraft that derives its lift from blades that rotate about an approximately vertical central axis and that can hover in a stationary position while in flight and move laterally or longitudinally from the hover position.
  9. (i) There is exempt from the sales and use tax the sale of all repair parts, accessories, materials and supplies to a common carrier for use on the purchasing carrier's freight motor vehicles with a maximum gross weight rating classification of Class One or above under § 55-4-113, or trailers, semi-trailers and pole trailers, as defined in §§ 55-1-105 and 55-4-113, and that are shipped via the purchasing carrier under a bill of lading and transported to a destination outside of this state for use outside this state, where the seller and the purchasing carrier are affiliated with one another such that:
    1. (1) Either corporation directly owns or controls one hundred percent (100%) of the capital stock of the other corporation; or
    2. (2) One hundred percent (100%) of the capital stock of both corporations is directly owned or controlled by a common parent.
  10. (j) There is exempt from sales and use tax, computer media exchange services, where the resulting media is shipped out of Tennessee or to a government agency or nontaxable entity located within Tennessee. “Media exchange services” means the process of transferring stored data from one (1) type of storage medium to another type of storage medium, including, but not limited to, magnetic tapes, magnetic cartridges, CD-ROM, magnetic disks/diskettes, laser disks/diskettes, optical disks/diskettes, or any similar media that is used to store or transfer data from one (1) computer to another.
  11. (k)
    1. (1) There is exempt from the sales and use tax all repair and refurbishment service labor performed with respect to large aircraft mainframes, large aircraft engine equipment, and large aircraft accessories, when the repair and refurbishment services on the mainframes, equipment, and accessories are initiated, contracted, performed, or completed in or by an authorized large aircraft service facility, including, but not limited to, repair and refurbishment service labor performed by an authorized large aircraft service facility pursuant to the terms of guaranty, warranty, or service contracts.
    2. (2) In addition to the exemptions provided in subdivisions (h)(1) and (k)(1), there is exempt from the sales and use tax all sales, leases, and purchases of large aircraft and related equipment, and their use, storage, or consumption within this state following the sale, lease, or purchase, when the large aircraft and related equipment have or are intended to have a situs outside of this state following the sale, lease, or purchase, and when the large aircraft and related equipment are in and remain within this state following the sale, lease, or purchase solely for purposes of repair and refurbishment services by an authorized large aircraft service facility, and are in fact removed from this state within fifteen (15) days from the completion of the repair and refurbishment services.
    3. (3) As used in this subsection (k):
      1. (A) “Authorized large aircraft service facility,” “large aircraft,” “large aircraft accessories,” “large aircraft engine equipment,” “large aircraft mainframes,” and “repair and refurbishment services” have the same meanings as defined in § 67-6-302;
      2. (B) “Large aircraft and related equipment” means a large aircraft consisting of a large aircraft mainframe and large aircraft engine equipment, including any large aircraft accessories associated with the large aircraft or aircraft engine, whether installed or uninstalled; and
      3. (C) “Repair and refurbishment service labor” means all labor performed in connection with repair and refurbishment services.
History (26)
  • Acts 1947, ch. 3, § 4
  • C. Supp. 1950, § 1248.56 (Williams, § 1328.25)
  • T.C.A. (orig. ed.), § 67-3007
  • Acts 1985, ch. 420, § 1
  • 1986, ch. 518, § 1
  • 1986, ch. 805, § 1
  • 1987, ch. 294, § 1
  • 1987, ch. 433, § 1
  • 1989, ch. 312, § 6
  • 1989, ch. 430, § 3
  • 1993, ch. 318, § 1
  • 1995, ch. 80, § 1
  • 1996, ch. 807, § 1
  • 1997, ch. 209, § 1
  • 1997, ch. 238, § 1
  • 2003, ch. 357, § 80
  • 2004, ch. 724, § 1
  • 2004, ch. 959, §§ 10, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 149
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2012, ch. 1078, § 1
  • 2013, ch. 480, § 1
  • 2015, ch. 48, §§ 1-2
  • 2015, ch. 506, § 2.
§ 67-6-314. Medical equipment and devices.
  1. There is exempt from the sales or use tax imposed by this chapter:
    1. (1) Prosthetic devices for human use and repair services for the repair and maintenance of those prosthetic devices;
    2. (2) Durable medical equipment for home use sold pursuant to a prescription for human use and repair services for the repair and maintenance of durable medical equipment qualifying for exemption under this subdivision (2);
    3. (3) Oxygen delivery equipment, including:
      1. (A) Repair services and repair or replacement parts for oxygen delivery equipment;
      2. (B) Components or attachments for oxygen delivery equipment that are items for single patient use; and
      3. (C) Disposable medical supplies necessary to administer or deliver medical oxygen for human use;
    4. (4) Kidney dialysis equipment, including repair services and repair or replacement parts for kidney dialysis equipment, and including components or attachments for kidney dialysis equipment that are items for single patient use;
    5. (5) Enteral feeding systems, including repair services and repair or replacement parts for enteral feeding systems, and including components or attachments for enteral feeding systems that are items for single patient use;
    6. (6) Mobility enhancing equipment sold pursuant to a prescription for human use and repair service for the repair and maintenance of mobility enhancing equipment qualifying for exemption under this subdivision (6);
    7. (7) Any syringe used to dispense insulin for human use and diabetic testing supplies for human use, including lancets, test strips for blood glucose monitors, visual read test strips, and urine test strips;
    8. (8)
      1. (A) Disposable medical supplies such as bags, tubing, needles and syringes dispensed by a licensed pharmacist in accordance with an individual prescription written for the use of a human being by a practitioner of the healing arts licensed by the state that are used for the intravenous administration of any prescription drug and that come into direct contact with the prescription drug or medicine;
      2. (B) This exemption applies only to supplies to be used in the treatment of a patient outside of a hospital, skilled nursing facility or ambulatory surgical treatment center;
    9. (9) Computer software designed for use in the treatment of individuals with a learning disability and having no residual value for any other purpose that is prescribed by a licensed practitioner of the healing arts for use in the treatment of an individual; and
    10. (10) The sale or use of disposable, nonprosthetic ostomy products for use by humans who have had colostomies, ileostomies, or urostomies.
History (63)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1995, ch. 144, § 1
  • 1995, ch. 230, § 1
  • 1998, ch. 766, § 1
  • 2003, ch. 357, § 40
  • 2004, ch. 959, §§ 11, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 89
  • 2008, ch. 1106, § 7
  • 2015, ch. 274, § 1.
§ 67-6-315. Monthly water bill.
  1. The sales and use tax imposed by this chapter on sales of water by a public utility only applies to charges on a customer's monthly water bill for metered water usage, a monthly minimum bill, a monthly customer charge, or a monthly demand charge.
History (1)
  • Acts 2018, ch. 813, § 1.
§ 67-6-316. Optometrists, opticians, and ophthalmologists.
  1. (a) An optometrist, optician or ophthalmologist shall be considered the user and consumer of the tangible personal property used in the practice of the optometrist's, optician's or ophthalmologist's profession, and the tax levied under this chapter is not applicable to all or any part of the charge made by such persons to their patients.
  2. (b) All sales of tangible personal property and taxable services to an optometrist, optician or ophthalmologist are subject to the sales or use tax.
  3. (c) Notwithstanding the foregoing, there shall be exempt from sales or use tax component parts of prescription eyewear, including replacement parts and industrial materials, sold to and used by a person engaged in business in Tennessee of operating an optical laboratory at which prescription eyewear is manufactured or fabricated, where such person also owns or operates the facilities at which such eyewear is ultimately dispensed to patients; provided, that such person shall pay sales or use tax on the purchase price of all prescription eyewear which it dispenses to patients inside this state.
History (59)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1994, ch. 552, § 1
  • 2003, ch. 357, § 4
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 53.
§ 67-6-317. Public safety or public works-related goods sold to nonprofit property owners association.
  1. (a) There is exempted from the sales and use tax imposed by this chapter any sales of public safety or public works-related goods to a nonprofit property owners association that has received a determination of exemption from the internal revenue service under the Internal Revenue Code § 501(c)(4) and that has more than one hundred (100) miles of roads maintained by the property owners association.
  2. (b) Any exemption granted under subsection (a) only applies to sales made directly to the exempt property owners association. There is no exemption for sales made to an independent contractor with any such exempt association.
  3. (c) No dealer shall sell, and no property owners association shall use, any tangible personal property under the claim that the tangible personal property is exempt from the sales or use tax levied by this chapter, where the exemption from taxation is claimed because the user is entitled to an exemption under subsection (a), unless the user has issued to it by the commissioner an exemption certificate declaring that such association is entitled to the exemption provided for by subsection (a). An association that has obtained an exemption certificate issued by the commissioner shall provide a dealer with a copy of the certificate of exemption, which must include the exemption account number included on the certificate issued by the commissioner. The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption.
  4. (d) In the event a property owners association uses its exemption authorization to purchase other goods not exempted, the association shall be liable for applicable tax, penalty, and interest.
  5. (e) The exemption granted under subsection (a) is limited to twenty-five thousand dollars ($25,000) in sales and use taxes each year that would otherwise be imposed.
  6. (f) For purposes of this section, “public safety or public works-related goods” means equipment and supplies used:
    1. (1) In the construction or maintenance of utilities, roads, culverts, curbs, sidewalks, parks, landscaping, docks and dock facilities, sewage and wastewater systems, and flood control and drainage systems, including storm water sewers and drains; and
    2. (2) For firefighting, security, and emergency medical services, including fire alarm and emergency alert systems.
History (1)
  • Acts 2019, ch. 400, § 1.
§ 67-6-318. Qualified building materials used in construction, expansion, or renovation of one or more qualified, new, or expanded warehouse or distribution facilities.
  1. (a) Subject to the approval set forth in subdivision (c)(2), there is a sales and use tax exemption on qualified building materials used in the construction, expansion, or renovation of one (1) or more qualified, new, or expanded warehouse or distribution facilities as defined in § 67-6-102(46)(H); provided, that the taxpayer or a lessor, or both, makes a capital investment of at least one billion dollars ($1,000,000,000) in the construction or renovation of such facilities and related facilities at the same location within the qualified capital investment period.
  2. (b) For purposes of this section:
    1. (1) “Qualified building materials” means tangible personal property purchased during the period between July 1, 2019, and December 31, 2026, that becomes part of the real property comprising the facility; and
    2. (2) “Qualified capital investment period” means a period beginning on or after January 1, 2019, and ending no later than December 31, 2026.
  3. (c)
    1. (1) A taxpayer seeking the exemption provided under this section shall submit an application for exemption to the commissioner of revenue, describing the investment to be made during the qualified capital investment period. The application must be submitted on forms prescribed by the commissioner and demonstrate that the requirements of this section will be met.
    2. (2) After approval of the exemption application, the commissioner shall issue a certificate of exemption to the taxpayer.
  4. (d) If any requirements of this section are not met, the taxpayer is liable for any sales or use tax, penalty, or interest that would otherwise have been due with respect to items purchased on a tax-exempt basis pursuant to this section. Notwithstanding any other law to the contrary, the amount of any tax due under this subsection (d) must be assessed within three (3) years of December 31 of the final year of the investment period; provided, however, that such time to assess may be extended pursuant to § 67-1-1501(b)(5).
  5. (e) An application with the department of revenue for the exemption provided in this section must be filed prior to October 1, 2019.
History (1)
  • Acts 2019, ch. 503, § 1.
§ 67-6-319. Pharmaceutical samples — Free drugs and materials.
  1. (a) There is exempt from the sales and use tax samples produced by a pharmaceutical plant within the state for future distribution outside of the state or temporarily stored by such pharmaceutical plant within the state for future distribution outside of the state.
  2. (b) There is exempt from the sales and use tax imposed by this chapter prescription drugs distributed free of charge by the manufacturer, including packaging materials and constituent elements and ingredients.
History (55)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1995, ch. 551, § 1.
§ 67-6-320. Prescription drugs.
  1. (a) There is exempt from the tax imposed by this chapter any drug, including over-the-counter drugs, for human use dispensed pursuant to a prescription. This exemption shall not apply to grooming and hygiene products.
  2. (b) There is exempt from the tax imposed by this chapter the sale or use of:
    1. (1) Insulin; and
    2. (2) Medical oxygen for human use dispensed pursuant to a prescription.
History (59)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1996, ch. 1057, § 1
  • 2003, ch. 357, § 42
  • 2004, ch. 959, §§ 13, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 92.
§ 67-6-321. Railroad stock — Vessels and barges — Railroad rolling stock.
  1. (a) There is exempt from sales tax the transfer, by any dealer in personal property, of railroad rolling stock or of vessels or barges of fifty (50) tons or over of displacement, where the purchaser gives the seller an affidavit that such rolling stock or vessels are being purchased for use in interstate commerce or outside this state; and any such rolling stock or vessels are also exempt from use tax, so long as they are being used principally in interstate commerce.
  2. (b) There is exempt from the sales and use tax, the sale, use, storage or consumption of parts and accessories, material and supplies used in servicing and/or maintaining railroad rolling stock that is currently being used, or is reasonably intended to be used, in interstate commerce. Such exemption does not apply to fuel or other petroleum products or to shop equipment and tools.
History (56)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1992, ch. 663, § 1
  • 1993, ch. 318, § 2.
§ 67-6-322. Religious, educational, and charitable institutions — Energy resource recovery facilities.
  1. (a) There is exempt from this chapter any sales or use tax upon tangible personal property, computer software, or taxable services sold, given, or donated to any:
    1. (1) Church, temple, synagogue or mosque;
    2. (2) University, including the Agricultural Foundation for Tennessee Tech, Inc.;
    3. (3) College;
    4. (4) School;
    5. (5) Orphanage;
    6. (6) Institution organized for the principal purpose of placing homeless children in foster homes;
    7. (7) Home for the aged;
    8. (8) Hospital;
    9. (9) Girls' club;
    10. (10) Boys' club;
    11. (11) Community health council;
    12. (12) Volunteer fire department;
    13. (13) Organ bank for transplantable tissue;
    14. (14) Organization whose primary objective is to promote the spiritual and recreational environment of members of the armed services of the United States, such as the United Service Organization as it is presently conducted;
    15. (15) Historical property owned by the state and operated by the historical commission or under the jurisdiction of the commission as authorized by § 4-11-108;
    16. (16) Nonprofit community blood bank;
    17. (17) Senior citizen service centers that meet the standards set by the department of disability and aging for eligibility to receive state funds; or
    18. (18) Nonprofit corporation whose primary function involves the annual organization, promotion, and sponsorship of a statewide talent and beauty pageant in which contestants compete for scholarships, awarded by such nonprofit corporation, as well as for the opportunity of being Tennessee's representative and contestant in an annual nationwide talent and beauty pageant with which such nonprofit corporation is affiliated.
  2. (b) In addition to the exempt institutions, organizations and historical properties described in subsection (a), there are also exempt such other institutions and organizations that have received a determination of exemption from the internal revenue service under the Internal Revenue Code § 501(c)(3), (c)(5) labor organizations, (c)(13) not-for-profit cemetery companies, and (c)(19) (26 U.S.C. § 501(c)(3), (5), (13) and (19), respectively), and that are currently operating under it, and any war-time era veterans' organization that has received a determination of exemption from the internal revenue service under the Internal Revenue Code § 501(c)(4) (26 U.S.C. § 501(c)(4)), and that is chartered by the United States congress. The exemption provided for herein does not apply to purchases of bingo cards or equipment by such organizations.
  3. (c) Any exemption granted under subsection (a) or (b) shall be limited to such institutions, organizations or historical properties that are not organized or operated for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
  4. (d) Any exemption granted under subsections (a)-(c) shall only apply to sales, gifts, or donations made directly to the exempt institution, organization or historical property. There shall be no exemption upon sales, gifts, or donations made to an independent contractor with any such exempt institution, organization or historical property.
  5. (e) No dealer shall sell, give or donate, and no user shall use, any tangible personal property under the claim that the tangible personal property is exempt from the sales or use tax levied by this chapter, where the exemption from taxation is claimed because the vendee or user is an educational, religious or charitable institution or organization or historical property and is entitled to an exemption as such institution or organization or historical property under subsections (a)-(d), unless the vendee or user shall have issued to it by the commissioner an exemption certificate declaring that such institution or organization or historical property is entitled to the exemption provided for by subsections (a)-(d); provided, that, in the case of a sale to a person who is not a resident or domiciliary of Tennessee, an exemption certificate issued by the commissioner is not required, if the dealer shall instead receive from such person a copy of a current and valid exemption from federal taxation under 26 U.S.C. § 501(c)(3). Persons who have obtained an exemption certificate issued by the commissioner shall provide their vendors with a copy of the certificate or a fully completed streamlined sales tax certificate of exemption, which must include the exemption account number included on the certificate issued by the commissioner. The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption. In the case of a sale to a person who is not a resident or domiciliary of Tennessee, an exemption certificate issued by the commissioner is not required, if the dealer shall instead receive from such person a copy of a current and valid exemption from federal taxation under 26 U.S.C. § 501(c)(3). The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption.
    Backlinks (1)
  6. (f) The commissioner is authorized to make final determination after hearing, if demanded, as to whether any institution or organization or historical property is entitled to the benefit of the exemption established by subsections (a)-(d). The commissioner is authorized to issue exemption certificates to institutions and organizations and historical properties that, in the commissioner's judgment, are entitled thereto.
  7. (g) No county having a metropolitan form of government is authorized under this chapter to levy any tax on the sale, purchase, use, consumption or distribution of steam and chilled water produced and distributed by an energy resource recovery facility operated in a county with a metropolitan form of government.
  8. (h) No tax exemption as permitted by this section applies to the purchase of bingo materials or supplies or equipment or cards.
  9. (i) There is also exempt from this chapter any sales or use tax upon tangible personal property or taxable services sold, given, or donated to any Tennessee historic property preservation or rehabilitation entity as defined in § 67-4-2004. This exemption is subject to subsections (d), (e), and (f).
Backlinks (5)
History (36)
  • Acts 1949, ch. 110, § 1
  • 1949, ch. 237, § 1
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1967, ch. 364, § 1
  • 1967, ch. 369, § 1
  • 1968, ch. 531, § 1
  • 1973, ch. 263, § 1
  • 1975, ch. 125, § 1
  • 1975, ch. 270, §§ 1, 2
  • 1975, ch. 290, § 1
  • 1976, ch. 619, § 1
  • 1976, ch. 684, § 1
  • 1976, ch. 791, § 1
  • 1977, ch. 97, §§ 1, 2
  • 1977, ch. 125, § 1
  • 1979, ch. 63, §§ 1-4
  • 1979, ch. 168, § 1
  • T.C.A. (orig. ed.), § 67-3014
  • Acts 1984, ch. 779, § 1
  • 1985, ch. 389, § 1
  • 1985, ch. 436, §§ 1-4
  • 1986, ch. 687, § 2
  • 1986, ch. 872, § 1
  • 1996, ch. 1001, § 1
  • 1997, ch. 212, § 1
  • 2003, ch. 357, § 43
  • 2004, ch. 812, § 2
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2005, ch. 499, § 4
  • 2007, ch. 602, §§ 51, 150
  • 2008, ch. 1106, § 10
  • 2009, ch. 530, § 35
  • 2010, ch. 1134, § 2
  • 2011, ch. 72, § 1
  • 2024, ch. 688, § 152.
§ 67-6-323. Tangible personal property, computer software, or services that are necessary to and primarily used for qualified production.
  1. (a) For purposes of this section:
    1. (1) “Applicant” means a person applying for an exemption under this section;
    2. (2) “Best interests of the state” means a determination by the commissioners of revenue and economic and community development that the qualified production is a result of the exemption provided in this section and the benefits to the state resulting from the production outweigh the anticipated costs. In making this determination, the commissioners may consider the investment made, jobs created, impact to the community, and any other matters deemed appropriate by the commissioners;
    3. (3) “Commission” means the Tennessee film, entertainment and music commission, created by § 4-3-5003;
    4. (4) “Esports” means leagues, competitive circuits, tournaments, or similar competitions where individuals or teams play video games, typically for spectators, either in-person or online, for the purpose of ranking, prizes, money, or entertainment; and
    5. (5) “Qualified production” means any of the following activities, as determined by the commission:
      1. (A) The production of a film, pilot episode, series, esports event, or other episodic content in this state;
      2. (B) The creation of computer-generated imagery, video games, or interactive digital media in this state; or
      3. (C) Stand-alone audio or visual post-production scoring and editing in this state.
  2. (b) The sale, use, storage, or consumption of tangible personal property, computer software, or services that are necessary to and primarily used for a qualified production are exempt from the tax imposed by this chapter, if the commissioner of revenue and the commissioner of economic and community development determine under the process set forth in subsection (c), in their sole discretion and in writing, that such an exemption is in the best interests of the state.
  3. (c) Eligibility for the exemption set forth in subsection (b) is determined as follows:
    1. (1) An applicant must apply to the commission, on a form prescribed by the commission, describing the basis for seeking an exemption under subsection (b), including the nature of the production activities involved;
    2. (2) If the commission determines that the applicant is engaging in a qualified production, then the commission shall notify the applicant and the department of revenue of that determination, and the applicant may apply to the department of revenue for the exemption under subsection (b) on a form prescribed by the department of revenue;
    3. (3) The department of revenue shall not approve an application for the exemption under subsection (b) unless the commissioner of revenue and the commissioner of economic and community development each determine, in their sole discretion and in writing, that approving the exemption is in the best interests of the state.
  4. (d) If the exemption is approved by the department of revenue, then the department of revenue shall issue a sales and use tax exemption certificate to the applicant that identifies the qualified production.
  5. (e) A third party purchasing or using tangible personal property, computer software, or services that are necessary to and primarily used for a qualified production that is granted an exemption may separately apply to the department of revenue, on a form prescribed by the department of revenue, to use the exemption to make purchases on a tax-exempt basis for the identified qualified production. If the third party is approved by the department of revenue, then the department of revenue shall issue a sales and use tax exemption certificate to the third party that identifies the qualified production.
  6. (f) An exemption certificate issued pursuant to this section expires two (2) years from its effective date. The person to whom the exemption certificate is granted may apply for renewals of the exemption certificate through the process described in subsections (c) and (e). For each renewal application granted, the department of revenue shall issue to the applicant a sales and use tax exemption certificate that expires two (2) years from its effective date.
History (1)
  • Acts 2021, ch. 70, § 1.
§ 67-6-324. Replacement parts or goods.
  1. There is exempt from sales tax any replacement parts or goods transferred without cost to a purchaser for the replacement of faulty parts or equipment that prior thereto had been sold under a warranty or guarantee or condition and upon which original purchase or importation a sales or use tax was paid.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-325. Telephone cooperatives.
  1. There is exempt from this chapter all sales of tangible personal property to telephone cooperatives organized under the general welfare laws of this state. This exemption shall apply only to sales of tangible personal property to telephone cooperatives for their own use and consumption, and shall not apply to any purchases made by the telephone cooperatives for use by independent contractors. This section shall apply only so long as electric membership corporations organized under the Rural Electric and Community Services Cooperative Act, compiled in title 65, chapter 25, shall be entitled to an exemption from the payment of any sales and use tax.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-326. Vessels.
  1. There is exempt from the taxes imposed by this chapter all sales of tangible personal property to commercial marine vessels for use by such vessels, where the deliveries of such property are made in mid-stream of waterways constituting geographical boundaries of this state. Dealers shall, however, be required to support such sales by bills of sale positively reflecting such delivery receipted by the master of the deliveree vessel.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-327. Vessels and barges — Repairs.
  1. There is exempt from the tax imposed by this chapter repair services performed on vessels and barges of fifty (50) tons and over load displacement that are used principally in interstate or international commerce, and the parts, accessories, materials and supplies used in such repairs where the parts, accessories, materials and supplies become component parts of such vessels and barges. For purposes of this section, “repair services” includes renovations and improvements to such vessels and barges. This exemption does not apply to fuel and other petroleum products or to shop equipment and tools.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-328. Watershed districts.
  1. There is exempt from sales or use tax all sales of tangible personal property to watershed districts for use and consumption by such districts.
History (54)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963 ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012.
§ 67-6-329. Miscellaneous exemptions. [Effective on January 1, 2025. See the version effective until January 1, 2025.]
  1. (a) The sale at retail, the use, the consumption, the distribution and the storage for use or consumption in this state of the following tangible personal property is specifically exempted from the tax imposed by this chapter:
    1. (1) “Gasoline” upon which a privilege tax per gallon is paid, and not refunded; except that premixed engine fuel containing gasoline and oil, produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or any other vehicle, that is sold in containers of one gallon (1 gal.) or less, is not exempt from the tax imposed by this chapter;
    2. (2) Motor fuel taxed per gallon by chapter 3, part 2 of this title;
    3. (3) Textbooks and workbooks;
    4. (4) All sales made to the state or any county or municipality within the state;
    5. (5) Liquified gas, compressed natural gas, and hydrogen gas taxed by chapter 3, part 11 of this title;
    6. (6) [Deleted by 2023 amendment.]
    7. (7) Parking privileges sold by colleges, universities, technical institutes or state colleges of applied technology to students at those institutions;
    8. (8) Materials used for the lining or protective coating of railroad tank cars and any charges made for the installation or repair of the linings or protective coatings;
    9. (9) Chemicals and supplies used in air or water pollution control facilities for pollution control purposes;
    10. (10) Periodicals printed entirely on newsprint or bond paper and distributed no less frequently than monthly and advertising supplements or other printed matter distributed with the periodicals;
    11. (11) The sale of United States and Tennessee flags sold by a nonprofit organization;
    12. (12) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials and explosives become a component part of the finished product or are used directly in fabricating, dislodging, or sizing;
    13. (13) Materials, containers, labels, sacks, bags or bottles used for packaging tangible personal property when the property is either sold in the containers, sacks, bags or bottles directly to the consumer or when such use is incidental to the sale of the property for resale;
    14. (14) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of the business; or typesetting used in the business of printing and materials necessary for the typesetting, or typesetting, or materials necessary for typesetting provided to a business of printing to obtain the services of the business;
    15. (15) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a video programming service provider and held for sale or lease to its subscribers;
    16. (16) Utility poles, anchors, guys, and conduits;
    17. (17) Aircraft used for and owned by a person providing flight training;
    18. (18) Prepared food, as defined in § 67-6-102, when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12). This subdivision (a)(18) shall not be interpreted to exempt a public or private school or school support group from paying sales or use taxes on the purchase price of prepared food or food and food ingredients, as defined by § 67-6-102, purchased for resale by the school or a school support group at fund raisers, sports events and the like pursuant to § 67-6-229, or to exempt sales from any micro market or vending machine, including micro markets and vending machines located on the premises of public or private schools, from the sales tax;
    19. (19) Copies of hospital records, as defined in § 68-11-302, sold or otherwise provided to an attorney, agent or other authorized representative acting in a lawsuit on behalf of any hospital that has received a determination of exemption as provided in § 67-6-322(e);
    20. (20) OEM headquarters company vehicles; and
    21. (21) Online access to continuing education courses that meet regulatory requirements for licensed individuals and that are offered by organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3) or (c)(6).
  2. (b) Charges for the following services are exempt from the tax imposed by this chapter:
    1. (1) Coin-operated telephone service;
    2. (2) Automatic teller machine (ATM) service. The seller of the ATM service shall be deemed the user and consumer of telecommunication services necessary to deliver the ATM service; and
    3. (3) Wire transfer or other services provided by any corporation defined as a financial institution under § 67-4-2004. The seller of the wire transfer or other services shall be deemed the user and consumer of telecommunication services necessary to deliver the wire transfer service.
  3. (c) No provision of this section shall be construed to amend or repeal § 67-6-301.
  4. (d) The sale at retail, use, consumption, distribution and storage for use or consumption in this state of the following specified digital goods is specifically exempted from the tax imposed by this chapter:
    1. (1) Any specified digital good, if the sale, lease, licensing and use of the equivalent in a tangible form is exempt from taxation under this chapter; and
    2. (2) Specified digital goods provided without charge for less than permanent use.
Backlinks (1)
History (95)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1984, ch. 734, § 1
  • 1984, ch. 761, § 2
  • 1985, ch. 25, §§ 1, 5, 7
  • 1985, ch. 332, §§ 1, 2
  • 1985, ch. 352, §§ 1-3
  • 1986, ch. 517, § 1
  • 1986, ch. 565, §§ 1-3
  • 1987, ch. 32, § 1
  • 1987, ch. 255, § 1
  • 1987, ch. 416, § 1
  • 1988, ch. 561, § 1
  • 1989, ch. 478, § 1
  • 1990, ch. 856, § 1
  • 1990, ch. 1091, § 3
  • 1991, ch. 41, § 1
  • 1991, ch. 488, § 1
  • 1992, ch. 659, § 1
  • 1993, ch. 2, § 1
  • 1993, ch. 409, § 3
  • 1995, ch. 229, § 1
  • 1995, ch. 256, § 1
  • 1995, ch. 343, § 1
  • 1996, ch. 1003, § 1
  • 1998, ch. 694, § 2
  • 2003, ch. 357, §§ 44-48
  • 2004, ch. 782, § 10
  • 2004, ch. 959, §§ 14-16, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 499, §§ 21, 51, 70, 71
  • 2007, ch. 602, §§ 51, 93, 94, 151
  • 2008, ch. 1106, §§ 13, 20
  • 2009, ch. 530, §§ 35, 115
  • 2011, ch. 72, § 1
  • 2013, ch. 473, § 26
  • 2014, ch. 908, § 11
  • 2016, ch. 1070, § 1
  • 2019, ch. 473, § 1
  • 2021, ch. 139, § 1
  • 2021, ch. 289, § 3
  • 2023, ch. 377, § 27
  • 2024, ch. 859, § 5.
§ 67-6-329. Miscellaneous exemptions. [Effective until January 1, 2025. See the version effective on January 1, 2025.]
  1. (a) The sale at retail, the use, the consumption, the distribution and the storage for use or consumption in this state of the following tangible personal property is specifically exempted from the tax imposed by this chapter:
    1. (1) “Gasoline” upon which a privilege tax per gallon is paid, and not refunded; except that premixed engine fuel containing gasoline and oil, produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or any other vehicle, that is sold in containers of one gallon (1 gal.) or less, is not exempt from the tax imposed by this chapter;
    2. (2) Motor fuel taxed per gallon by chapter 3, part 2 of this title;
    3. (3) Textbooks and workbooks;
    4. (4) All sales made to the state or any county or municipality within the state;
    5. (5) Liquified gas and compressed natural gas taxed by chapter 3, part 11 of this title;
    6. (6) [Deleted by 2023 amendment.]
    7. (7) Parking privileges sold by colleges, universities, technical institutes or state colleges of applied technology to students at those institutions;
    8. (8) Materials used for the lining or protective coating of railroad tank cars and any charges made for the installation or repair of the linings or protective coatings;
    9. (9) Chemicals and supplies used in air or water pollution control facilities for pollution control purposes;
    10. (10) Periodicals printed entirely on newsprint or bond paper and distributed no less frequently than monthly and advertising supplements or other printed matter distributed with the periodicals;
    11. (11) The sale of United States and Tennessee flags sold by a nonprofit organization;
    12. (12) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials and explosives become a component part of the finished product or are used directly in fabricating, dislodging, or sizing;
    13. (13) Materials, containers, labels, sacks, bags or bottles used for packaging tangible personal property when the property is either sold in the containers, sacks, bags or bottles directly to the consumer or when such use is incidental to the sale of the property for resale;
    14. (14) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of the business; or typesetting used in the business of printing and materials necessary for the typesetting, or typesetting, or materials necessary for typesetting provided to a business of printing to obtain the services of the business;
    15. (15) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a video programming service provider and held for sale or lease to its subscribers;
    16. (16) Utility poles, anchors, guys, and conduits;
    17. (17) Aircraft used for and owned by a person providing flight training;
    18. (18) Prepared food, as defined in § 67-6-102, when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12). This subdivision (a)(18) shall not be interpreted to exempt a public or private school or school support group from paying sales or use taxes on the purchase price of prepared food or food and food ingredients, as defined by § 67-6-102, purchased for resale by the school or a school support group at fund raisers, sports events and the like pursuant to § 67-6-229, or to exempt sales from any micro market or vending machine, including micro markets and vending machines located on the premises of public or private schools, from the sales tax;
    19. (19) Copies of hospital records, as defined in § 68-11-302, sold or otherwise provided to an attorney, agent or other authorized representative acting in a lawsuit on behalf of any hospital that has received a determination of exemption as provided in § 67-6-322(e);
    20. (20) OEM headquarters company vehicles; and
    21. (21) Online access to continuing education courses that meet regulatory requirements for licensed individuals and that are offered by organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3) or (c)(6).
  2. (b) Charges for the following services are exempt from the tax imposed by this chapter:
    1. (1) Coin-operated telephone service;
    2. (2) Automatic teller machine (ATM) service. The seller of the ATM service shall be deemed the user and consumer of telecommunication services necessary to deliver the ATM service; and
    3. (3) Wire transfer or other services provided by any corporation defined as a financial institution under § 67-4-2004. The seller of the wire transfer or other services shall be deemed the user and consumer of telecommunication services necessary to deliver the wire transfer service.
  3. (c) No provision of this section shall be construed to amend or repeal § 67-6-301.
  4. (d) The sale at retail, use, consumption, distribution and storage for use or consumption in this state of the following specified digital goods is specifically exempted from the tax imposed by this chapter:
    1. (1) Any specified digital good, if the sale, lease, licensing and use of the equivalent in a tangible form is exempt from taxation under this chapter; and
    2. (2) Specified digital goods provided without charge for less than permanent use.
Backlinks (1)
History (94)
  • Acts 1947, ch. 3, § 6
  • 1949, ch. 245, § 2
  • C. Supp. 1950, § 1248.61 (Williams, § 1328.27)
  • Acts 1955, ch. 51, § 6
  • 1955, ch. 194, § 1
  • 1955, ch. 340, §§ 1, 2
  • 1961, ch. 248, § 1
  • 1963, ch. 38, § 4
  • 1963, ch. 112, § 1
  • 1963, ch. 137, § 1
  • 1963, ch. 268, § 1
  • 1965, ch. 32, § 1
  • 1965, ch. 164, § 1
  • 1967, ch. 98, § 1
  • 1969, ch. 2, § 1
  • 1971, ch. 39, § 1
  • 1971, ch. 113, § 1
  • 1971, ch. 258, § 1
  • 1973, ch. 173, § 1
  • 1976, ch. 466, § 2
  • 1976, ch. 524, § 1
  • 1976, ch. 689, § 1
  • 1976, ch. 711, § 1
  • 1976, ch. 733, § 1
  • 1977, ch. 79, § 1
  • 1977, ch. 150, § 1
  • 1977, ch. 268, § 1
  • 1977, ch. 487, § 1
  • 1978, ch. 732, § 1
  • 1978, ch. 733, § 1
  • impl. am. Acts 1978, ch. 761, § 116
  • Acts 1978, ch. 793, § 1
  • 1978, ch. 831, § 1
  • 1978, ch. 832, § 1
  • 1978, ch. 921, § 4
  • 1979, ch. 191, § 1
  • 1979, ch. 239, § 1
  • 1979, ch. 330, § 1
  • 1979, ch. 338, § 1
  • 1979, ch. 349, § 1
  • 1979, ch. 387, § 1
  • 1979, ch. 391, §§ 1, 2
  • 1980, ch. 613, § 1
  • 1980, ch. 748, § 1
  • 1980, ch. 863, § 1
  • 1981, ch. 70, § 1
  • 1981, ch. 133, § 1
  • 1981, ch. 273, § 1
  • 1982, ch. 576, § 1
  • 1982, ch. 634, § 1
  • 1983, ch. 102, § 3
  • 1983, ch. 140, § 1
  • 1983, ch. 162, § 2
  • T.C.A. (orig. ed.), § 67-3012
  • Acts 1984, ch. 734, § 1
  • 1984, ch. 761, § 2
  • 1985, ch. 25, §§ 1, 5, 7
  • 1985, ch. 332, §§ 1, 2
  • 1985, ch. 352, §§ 1-3
  • 1986, ch. 517, § 1
  • 1986, ch. 565, §§ 1-3
  • 1987, ch. 32, § 1
  • 1987, ch. 255, § 1
  • 1987, ch. 416, § 1
  • 1988, ch. 561, § 1
  • 1989, ch. 478, § 1
  • 1990, ch. 856, § 1
  • 1990, ch. 1091, § 3
  • 1991, ch. 41, § 1
  • 1991, ch. 488, § 1
  • 1992, ch. 659, § 1
  • 1993, ch. 2, § 1
  • 1993, ch. 409, § 3
  • 1995, ch. 229, § 1
  • 1995, ch. 256, § 1
  • 1995, ch. 343, § 1
  • 1996, ch. 1003, § 1
  • 1998, ch. 694, § 2
  • 2003, ch. 357, §§ 44-48
  • 2004, ch. 782, § 10
  • 2004, ch. 959, §§ 14-16, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 499, §§ 21, 51, 70, 71
  • 2007, ch. 602, §§ 51, 93, 94, 151
  • 2008, ch. 1106, §§ 13, 20
  • 2009, ch. 530, §§ 35, 115
  • 2011, ch. 72, § 1
  • 2013, ch. 473, § 26
  • 2014, ch. 908, § 11
  • 2016, ch. 1070, § 1
  • 2019, ch. 473, § 1
  • 2021, ch. 139, § 1
  • 2021, ch. 289, § 3
  • 2023, ch. 377, § 27.
§ 67-6-330. Amusement tax exemptions.
  1. (a) There is exempt from the sales tax on admission, dues or fees imposed by § 67-6-212:
    1. (1) Events or activities held for or sponsored by public or private schools, kindergarten through grade twelve (K-12);
    2. (2) The sales price of admissions to county or agricultural fairs and any dues, fees or charges that enable or entitle the entrant to engage in any otherwise taxable amusement activity held therein, including games, rides, shows, contests, or grandstand events;
    3. (3) Membership application fees, dues or contributions, except that portion attributable to admission prices, paid to institutions and organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3), (8) and (19) and that are currently operating under such exemption;
    4. (4) Membership fees or dues of those organizations listed in Major Group No. 86 of the Standard Industrial Classification Manual of 1972, as amended, prepared by the office of management and budget of the federal government;
    5. (5)
      1. (A) The sales price of admissions to amusement or recreational activities conducted, produced, or provided by:
        1. (i) Not-for-profit museums, not-for-profit entities that operate historical sites and not-for-profit historical societies, organizations or associations;
        2. (ii) Organizations that have received and currently hold a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c);
        3. (iii) Organizations listed in Major Group No. 86 of the Standard Industrial Classification Manual of 1972, as amended, prepared by the office of management and budget of the federal government; or
        4. (iv) Tennessee historic property preservation or rehabilitation entities, as defined in § 67-4-2004;
      2. (B) The exemption provided for in this subdivision (a)(5) shall not apply unless such entities, societies, associations or organizations promote, produce and control the entire production or function;
      3. (C) On or after January 1, 2027, the exemption provided for in this subdivision (a)(5) does not apply to amusement or recreational activities conducted, produced, or provided at a facility owned by a sports authority organized pursuant to title 7, chapter 67, during a period in which the facility is eligible to receive a distribution of state sales tax revenue pursuant to § 67-6-103(d);
    6. (6) Fees in any form resulting from the production of television, film, radio or theatrical presentations. This exemption shall not include any dues, fees or other charges made on or for the admission of the public to such presentations;
    7. (7) Events or activities conducted upon rivers and waterways in this state whose continued use for recreational purposes is contingent upon revenue produced pursuant to agreements entered into between the state of Tennessee and the federal government, or an agency thereof, which agreements provide for the establishment of a trust fund for such purposes; provided, that this exemption shall prevail only if the annual distribution of funds to the state from such trust fund exceeds that amount of revenue to the state that would otherwise be produced if the amusement tax under § 67-6-212 were imposed on such events or activities, as determined by the fiscal review committee;
    8. (8) All sales contractually committed and/or for which money has been paid prior to June 1, 1984;
    9. (9) Athletic events for participants under eighteen (18) years of age sponsored by civic or not-for-profit organizations;
    10. (10) The sales price of admissions to amusement or recreational activities or facilities conducted, produced and controlled by municipalities or counties;
    11. (11) Membership assessments for capital improvements made by a recreation club, community service organization or country club against its members;
    12. (12) The sales price of admissions to beauty pageants or rodeos and any fees, charges or rental fees that entitle or enable the entrant to engage in any otherwise taxable amusement activity held therein that are conducted, produced or provided by a nonprofit civic organization; provided, that this exemption only applies to beauty pageants or rodeos that have been held in the same city for thirty (30) years or longer;
    13. (13) The sales price of admissions to musical concerts conducted, produced or provided by not-for-profit community group associations, if such associations promote, produce and control such concerts;
    14. (14) Any event or activity held by an employer solely for the benefit of the employer's employees; provided, that such event or activity must be entirely produced and controlled by such employer;
    15. (15) Fishing tournament registration fees collected from tournament participants;
    16. (16) Admission, dues, fees, or other charges paid to any person principally engaged in offering services or facilities for the development or preservation of physical fitness through exercise or other active physical fitness conditioning. This exemption shall apply to services and facilities such as gyms, fitness centers, fitness studios, high intensity interval training, cross training, ballet barre, pilates, yoga, spin classes, aerobics classes, and other substantially similar services and facilities that principally provide for exercise or other active physical fitness conditioning. This exemption shall not apply to persons principally engaged in offering recreational activities such as country clubs, tennis clubs, golf courses, and other substantially similar recreational facilities and activities;
    17. (17) Any entry fee or charge that allows an entrant to participate in a contest or tournament or charity horse show;
      Backlinks (1)
    18. (18) Charges made by landowners for permission to hunt native wildlife on their property that is located partially or entirely in a county having a population of not less than thirty-one thousand nine hundred (31,900) nor more than thirty-two thousand (32,000), according to the 1980 federal census or any subsequent federal census; and
    19. (19) The fee paid by an establishment operated primarily for the sale of prepared food to one (1) or more persons for the purpose of providing live entertainment to the patrons of such establishment.
  2. (b) The exemptions provided in subdivisions (a)(6) and (11) do not apply to interscholastic sports held or sponsored by private or public colleges or universities.
History (21)
  • Acts 1984 (Ex. Sess.), ch. 13, § 6
  • 1985, ch. 452, §§ 1-6, 8, 10-13
  • 1985, ch. 456, § 2
  • 1986, ch. 520, § 1
  • 1986, ch. 936, §§ 1, 2
  • 1987, ch. 44, § 1
  • 1988, ch. 958, § 4
  • 1989, ch. 126, § 1
  • 1989, ch. 527, § 1
  • 1990, ch. 965, §§ 1-3
  • 1991, ch. 200, §§ 1, 3
  • 1992, ch. 872, § 2
  • 1993, ch. 231, § 1
  • 2003, ch. 357, §§ 49, 50
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2005, ch. 499, § 5
  • 2007, ch. 602, §§ 51, 95, 152
  • 2008, ch. 1106, §§ 2, 3
  • 2019, ch. 159, § 1
  • 2023, ch. 480, § 1.
§ 67-6-331. Transfers by dealers in personal property of motor vehicles used by common carriers.
  1. (a) There shall be exempt from the tax imposed by this chapter, the transfer, by any dealer in personal property, of motor vehicles with a gross vehicle weight rating (GVWR) of a Class three (3) or above as defined in § 55-4-113 and trailers, semi-trailers and pole-trailers as defined in §§ 55-1-105 and 55-4-113 that shall be used to transport passengers or cargo principally in interstate or foreign commerce by a carrier holding common or contract carrier operating authority granted by the federal government or other state regulatory agency.
  2. (b) “Principally,” as used in subsection (a), means more than fifty percent (50%) of the use of the vehicle.
  3. (c) A motor vehicle is used to transport passengers or cargo in interstate or foreign commerce if it transports passengers or cargo moving from a point of origin in another state or foreign country to a point of destination within this state, or vice versa; or moving through this state from a point of origin in another state or foreign country to a point of destination in a different state or foreign country.
History (5)
  • Acts 1984, ch. 847, § 1
  • 1987, ch. 227, § 1
  • 1991, ch. 207, § 1
  • 1994, ch. 790, § 1
  • 2004, ch. 924, §§ 12, 13.
§ 67-6-332. Utilities, electric cooperatives and electric membership corporations.
  1. There is exempt from the tax imposed by this chapter the sums paid or property or services contributed by any person to any municipal or county utility, electric cooperative or electric membership corporation, by any person who is required as a condition for utility service to make such payment as a contribution in aid of capital construction to the municipal or county utility, electric membership corporation or electric cooperative.
History (1)
  • Acts 1985, ch. 399, § 1.
§ 67-6-333. Taxidermists.
  1. Charges made by taxidermists for taxidermy activity are exempt from the tax imposed by this chapter. The taxidermist shall, however, be considered to be the user and consumer of any articles of tangible personal property or any taxable services that the taxidermist purchases.
History (1)
  • Acts 1985, ch. 457, § 1.
§ 67-6-334. Energy for residential use.
  1. (a) There are exempt from the tax levied by this chapter gas, electricity, fuel oil, coal and other energy fuels sold directly to the consumer for residential use.
  2. (b)
    1. (1) As used in this section, “sold directly to the consumer for residential use” includes the furnishing of gas, electricity, fuel oil, coal or other energy fuels to single private residences, including the separate private units of apartment houses and other multiple dwellings, actually used for residential purposes, that are separately metered or measured, regardless of the fact that a person other than the resident:
      1. (A) Is contractually bound to the supplier for the charges;
      2. (B) Actually pays the charges; or
      3. (C) Is billed for the charges.
    2. (2) Use of electricity and other energy fuels in hotel or motel units by transient occupants does not constitute residential use.
    3. (3) In any instance in which the owner of a residential unit fails to disclose to an electric utility that the unit is being used for a purpose that would render the sale of electricity taxable, such owner shall be liable for any tax, penalty or interest due thereon, rather than the electric utility.
    4. (4) The exemption provided in this section shall not apply to energy fuels sold over the counter at the location of the seller except as follows:
      1. (A) Propane sold over the counter in cylinders with a capacity of one hundred pounds (100 lbs.) or more directly to the consumer for residential use shall be exempt from the tax levied by this chapter; and
      2. (B) Kerosene sold at retail through dispensers that have been designed and constructed to prevent delivery directly from the dispenser into a vehicle fuel supply tank shall be exempt from the tax levied by this chapter.
  3. (c) The sales and use tax imposed by this chapter on sales of natural gas, propane, and electricity sold directly to the consumer for nonresidential use applies only to charges on a consumer's monthly bill for metered usage, a monthly minimum bill, a monthly customer charge, or a monthly demand charge.
History (5)
  • Acts 1985, ch. 356, § 9
  • 2002, ch. 836, § 1
  • 2007, ch. 602, § 39
  • 2008, ch. 1106, § 12
  • 2018, ch. 813, § 2.
§ 67-6-335. Dentists.
  1. A dentist shall be considered the user and consumer of the tangible personal property used in the practice of the dentist's profession, and the tax imposed by this chapter shall not be applicable to all or any part of the charges made by a dentist to the dentist's patients in connection with the sale or transfer of such tangible personal property.
History (1)
  • Acts 1986, ch. 650, § 1.
§ 67-6-336. Used factory-manufactured structures.
  1. There is exempt from the sales and use tax imposed by this chapter the sale or use of a used factory-manufactured structure to the extent that the Tennessee sales and use tax applicable to such structure was paid in its initial sale or use in this state.
History (1)
  • Acts 1986, ch. 733, § 3.
§ 67-6-337. Sales paid for with food stamps.
  1. There are exempt from the tax imposed by this chapter all sales for which the consideration given is food stamps, food coupons or for which an electronic debit card or other electronic benefits transfer system is used or that utilizes such other means as the department of human services may approve, and which cards, systems or other means may be issued, authorized or used by the department or the federal government, their agents or contractors to assist persons, on a means-tested basis, to purchase eligible food and food ingredients, prepared food, candy and dietary supplements in accordance with the laws and regulations issued by the federal government pursuant to the Food Stamp Act of 1964 (7 U.S.C. § 2011 et seq.), or the department pursuant to title 71, chapter 5, part 3, or in accordance with any other current enabling legislation or subsequent enabling legislation or regulations authorizing issuance of food coupons, food stamps or the use of any electronics benefits transfer process, including, but not limited to, the use of any electronic debit card system or other system that the department may approve. If any other consideration other than that provided for in this section is used in any sale, that portion of the sale shall be fully taxable.
History (5)
  • Acts 1986, ch. 876, § 1
  • 1996, ch. 950, § 19
  • 2004, ch. 959, § 17
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 96.
§ 67-6-338. Sales paid for with vouchers from special supplemental food program for women, infants and children.
  1. (a) There are exempt from the tax imposed by this chapter all sales for which the consideration is a voucher issued under the Special Supplemental Food Program for Women, Infants and Children (42 U.S.C. § 1786), and any subsequent federal legislation. If consideration other than such vouchers is used in any sale, that portion of such sale shall be fully taxable.
  2. (b) If not required by federal law, this exemption shall not be implemented and shall have no effect.
History (1)
  • Acts 1986, ch. 876, § 2.
§ 67-6-339. Products sold to or used by structural metal fabricators.
  1. (a) The tax imposed by this chapter does not apply to materials sold to or used by a structural metal fabricator; provided, that such materials are used by the fabricator to fabricate structural metal products for application or use by the fabricator in the performance of a contract outside the state.
  2. (b) For the purpose of this section, “structural metal fabricator” means any person engaged in those activities described under Industry 3441, fabricated structural metal, of Major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget of the federal government.
  3. (c) For the purpose of this section, “fabricated structural metal products” means those products listed under Industry 3441, fabricated structural metal, of Major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget of the federal government.
History (1)
  • Acts 1987, ch. 381, § 1.
§ 67-6-340. Railroad track materials and locomotive radiators.
  1. (a) Notwithstanding the reduced rate for purchases by common carriers, there are exempt from the sales and use tax railroad track materials and locomotive radiators purchased in this state by railroads for use outside this state.
  2. (b) Persons seeking to make exempt purchases as provided in this section shall apply to the commissioner for a certificate as provided in § 67-6-529. In order to obtain the exemption, a copy of the certificate provided by this section or a fully completed Streamlined Sales Tax certificate of exemption shall be given by the railroad to each dealer from which it intends to make exempt purchases.
  3. (c) If a railroad fails to keep records as required by the commissioner to establish that railroad track materials or locomotive radiators purchased exempt from tax were not used in this state, but were removed from this state for use and consumption outside this state, then the railroad shall be liable for tax on such materials or radiators at the full rate provided by § 67-6-203, regardless of whether such railroad had previously obtained a certificate as provided by this section.
Backlinks (1)
History (5)
  • Acts 1988, ch. 628, § 1
  • 2003, ch. 357, § 51
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 97.
§ 67-6-341. Credit for sales tax due on motor vehicle incentive payments.
  1. (a) A credit shall be granted in the manner provided in subsection (b) for the amount of the sales tax due on motor vehicle manufacturer's incentive payments included in the sales price of motor vehicles sold at retail.
  2. (b) The credit shall apply such that sales tax is owed on the sales price of the motor vehicle less any otherwise taxable motor vehicle manufacturer's incentive payment associated with the sale.
  3. (c) For purposes of this section, unless the context otherwise requires:
    1. (1) “Motor vehicle manufacturer's incentive payment” means the amount due to the retailer pursuant to a motor vehicle manufacturer's incentive purchase program; and
    2. (2) “Motor vehicle manufacturer's incentive purchase program” means a program sponsored by a motor vehicle manufacturer pursuant to which an amount, whether paid in money, credit, or otherwise, is received by a retailer from a motor vehicle manufacturer based upon the unit price of motor vehicles sold at retail that requires the retailer to reduce the sales price of the product to the purchaser without the use of a manufacturer's coupon or redemption certificate.
History (1)
  • Acts 2007, ch. 602, § 40.
§ 67-6-342. Telecommunications services.
  1. (a) Charges made by local exchange carriers to interexchange carriers and long distance resellers for providing access to the local exchange area, and charges made by local exchange carriers to cellular telephone companies for interconnection to the landline network are exempt from the tax imposed by this chapter.
  2. (b) Charges made between local exchange carriers and interexchange carriers for the use of intercompany facilities pursuant to shared network facility arrangements are exempt from the tax imposed by this chapter.
  3. (c) For purposes of this section:
    1. (1) “Interexchange carrier” is a telecommunications service provider that provides such service only between local access and transport areas (LATAs);
    2. (2) “Local exchange carrier” is a telecommunications service provider that provides such service only within a LATA; and
    3. (3) “Long distance reseller” is a telecommunications service provider that provides service within a LATA and between LATAs.
History (2)
  • Acts 1989, ch. 312, § 7
  • 2004, ch. 782, § 11.
§ 67-6-343. Motor vehicles — Exemption from sales tax.
  1. (a) There is exempt from the sales tax the retail sale of motor vehicles subject to registration and titling in this state pursuant to § 55-3-101 that are not registered and titled in this state, but are removed for use in another state within three (3) calendar days of purchase. Use of such motor vehicles within this state subsequent to purchase, but prior to removal from the state, does not constitute a use subject to tax. For the purposes of this section, vehicles subject to registration and titling in this state pursuant to § 55-3-101 are deemed to include all off-highway motor vehicles, as defined in § 55-3-101(c)(2).
  2. (b) There is exempt from the sales tax the retail sale of trailers, as defined in § 55-1-105, that are removed for registration and use in another state within three (3) calendar days of purchase. Use of a trailer within this state subsequent to purchase, but prior to removal from the state, does not constitute a use subject to tax.
History (3)
  • Acts 1989, ch. 430, § 2
  • 1992, ch. 529, § 11
  • 2023, ch. 449, § 1.
§ 67-6-344. [Repealed]
History (2)
  • Acts 1989, ch. 496, § 1
  • repealed by 2023, ch. 377, § 28, effective July 1, 2024.
§ 67-6-345. Boats, motorboats and other vessels — Exemption from sales tax.
  1. There is exempt from the sales tax the retail sale of boats, motorboats and other vessels as defined by § 69-9-204, that are subject to registration and identification in this state pursuant to § 69-9-206, that are not registered and identified in this state, but are removed for use in another state within three (3) calendar days after physical possession of the boat, motorboat or other vessel has passed to the retail purchaser. Use of such boat, motorboat or other vessel within this state subsequent to purchase, but prior to removal from the state, does not constitute a use subject to tax.
History (1)
  • Acts 1992, ch. 529, § 12.
§ 67-6-346. Pollution control credit.
  1. There shall be a credit of one hundred percent (100%) of the sales and use tax paid with respect to any system, method, improvement, structure, device or appliance appurtenant thereto that is required and primarily used to bring the purchaser into compliance with pollution control laws or regulations, whether federal, state, or local, when such pollution is created in the course of the purchaser's regular business activities. The credit provided in this section shall not be available to persons primarily engaged in processing, treating, or controlling pollution created by others. Copies of certificates provided for in § 67-5-604 or other evidence that is satisfactory to the commissioner shall be furnished to the commissioner by the purchaser to establish entitlement to the credit. The credit provided in this section shall also apply to machinery and equipment used to produce or store electricity in a certified green energy production facility, as defined in § 67-4-2004. A copy of the facility certification issued by the department of environment and conservation shall be furnished to the commissioner by the taxpayer to establish entitlement to the credit. Instead of taking the credit available under this section or § 67-6-507(i) and (j), the purchaser may apply to the commissioner for a refund of the taxes paid or for authority to make purchases exempt from the tax.
History (7)
  • Acts 1992, ch. 873, § 3
  • 1994, ch. 862, § 1
  • 1995, ch. 37, §§ 1, 2
  • 1997, ch. 143, § 1
  • 2004, ch. 924, § 11
  • 2010, ch. 1134, § 40
  • 2022, ch. 1139, § 3.
§ 67-6-347. Helicopters and aircraft used by nonprofit groups for medical transport — Exemption from sales and use taxes.
  1. There is exempt from the sales and use tax all repair services, including parts and labor, to equipment used in connection with helicopters or other aircraft owned by not-for-profit hospitals, government entities or other not-for-profit medical facilities used for the purpose of medical evacuation or transport.
History (1)
  • Acts 1994, ch. 749, § 1.
§ 67-6-348. Used clothing — Exemption from sales tax.
  1. (a) There is exempt from this chapter the sale at retail of used clothing, if such clothing is sold by an institution or organization that has received a determination of exemption from the internal revenue service under 26 U.S.C. § 501(c)(3).
  2. (b) The exemption granted under subsection (a) shall be limited to such institutions or organizations that are not organized or operated for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
  3. (c) No institution or organization shall be exempt under subsection (a), unless the institution or organization shall have issued to it by the commissioner an exemption certificate declaring that such institution or organization is entitled to the exemption provided for by subsection (a).
  4. (d) The commissioner is authorized to make final determination after a hearing, if demanded, as to whether any institution or organization is entitled to the benefit of the exemption established by subsection (a).
  5. (e) All proceeds from sales exempted by this section must be for 26 U.S.C. § 501(c)(3) purposes.
Backlinks (1)
History (5)
  • Acts 1994, ch. 788, § 1
  • 2003, ch. 357, § 52
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, § 51.
§ 67-6-349. Petroleum products sold to air common carriers for flights outside United States.
  1. (a) There is exempt from the tax imposed by this chapter fuel and petroleum products sold to or used by an air common carrier, certified by the carrier to be used for consumption, shipment or storage in the conduct of its business as an air common carrier for a flight destined for or continuing from a location outside the United States.
  2. (b)
    1. (1) If a dealer pays to the department the tax imposed by this chapter on fuel or petroleum products sold to an air common carrier, and if the fuel or petroleum products are subsequently used by the air common carrier in a manner that renders the product exempt from tax under subsection (a), then the dealer may take a credit equal to the amount of tax previously paid to the department, if all of the following conditions are satisfied:
      1. (A) Prior to taking the credit, the dealer must give the air common carrier a credit or refund of any tax collected from the air common carrier that is the basis for the credit taken under this subsection (b);
      2. (B) The dealer must obtain documentation from the air common carrier that is sufficient to establish that the fuel or petroleum products were used in an exempt manner as provided in subsection (a); and
      3. (C) The credit is taken by the dealer on a return filed pursuant to this chapter within one (1) year of the date the tax was paid to the department.
    2. (2) The dealer must maintain documentation that is sufficient to establish entitlement to the credit, and the documentation must be maintained for a period of three (3) years from December 31 of the year in which the credit is taken on the return. Nothing in this subsection (b) shall be construed as preventing the dealer from filing a claim for refund pursuant to § 67-1-1802 in lieu of taking a credit on the tax return; provided, however, that in no case shall the same tax be subject to a refund and a credit.
History (10)
  • Acts 1994, ch. 791, § 1
  • 2004, ch. 959, § 66
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 153
  • 2009, ch. 530, §§ 35, 45, 57
  • 2011, ch. 72, §§ 1, 11
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1.
§ 67-6-350. Coins, currency, and bullion.
  1. There is exempt from the tax imposed by this chapter the sale of all coins, currency, and bullion that are:
    1. (1) Manufactured in whole or in part from gold, silver, platinum, palladium, or other material;
    2. (2) Used solely as legal tender, security, or commodity in this or another state, the United States, or a foreign nation; and
    3. (3) Sold based primarily on their intrinsic value as precious material or collectible items rather than their representative value as a medium of exchange.
History (1)
  • Acts 2022, ch. 1092, § 1.
§ 67-6-351. Drugs used by veterinarians.
  1. Veterinarians shall be considered the users and consumers of all drugs purchased by them for use or resale in the practice of veterinary medicine. The drugs shall be subject to sales or use tax on the purchase price to the veterinarian; provided, however, that drugs used in the treatment of livestock and instruments used for the administration of drugs used in the treatment of livestock shall be exempt from tax. Veterinarians seeking to make exempt purchases of drugs, and instruments for the administration of the drugs, used in treatment of livestock or resold in the practice of veterinary medicine for treatment of livestock shall provide a fully completed Streamlined Sales Tax certificate of exemption to each dealer from which it intends to make the exempt purchases. Veterinarians shall be liable for tax on the drugs or instruments at the full rate provided by § 67-6-203 if the drugs or instruments purchased exempt were not used in the treatment of livestock or resold in the practice of veterinary medicine for treatment of livestock.
History (5)
  • Acts 1996, ch. 922, § 2
  • 2003, ch. 357, § 4
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 71, 98.
§ 67-6-352. Pharmacies and home health care providers.
  1. (a) Notwithstanding any provision of this chapter to the contrary, pharmacies and home health care providers engaged in the business of rendering outpatient health care services to human beings are the consumers or users of all tangible personal property or taxable services purchased for use, consumption or rental in providing the health care service. The sellers of taxable services or of tangible personal property not otherwise exempt from tax must collect from the pharmacy or home health care provider the appropriate tax, unless the pharmacy or home health care provider is exempt from paying the sales or use tax under § 67-6-322.
  2. (b) For purposes of this section, the tangible personal property subject to tax when purchased for use in rendering outpatient health care services in the home or residence of a patient shall include, but not be limited to, mobility enhancing equipment and all durable medical equipment other than oxygen delivery equipment, kidney dialysis equipment and enteral feeding systems.
History (2)
  • Acts 1996, ch. 1057, § 2
  • 2008, ch. 1106, § 8.
§ 67-6-353. Adaptive equipment for motor vehicles provided for disabled veterans — New or used vehicles sold, given, or donated to disabled veterans.
  1. (a) There is exempt from this chapter any sales and use tax upon adaptive equipment for motor vehicles that is necessary to ensure that the eligible person will be able to operate an automobile or other conveyance in a manner consistent with such person's own safety and the safety of others. This section shall apply only to adaptive equipment for motor vehicles sold, given or donated to a disabled veteran who has been honorably discharged from any of the armed services of the United States and who has a service-connected disability equivalent to the disabilities as prescribed in 38 U.S.C. § 3100 et seq.
  2. (b) There is exempt from this chapter any sales and use tax upon a new or used motor vehicle that is sold, given, or donated to a veteran or active-duty service member of the armed services who has a service-connected disability as described in 38 U.S.C. § 3901 and who receives a grant from the United States department of veterans affairs, pursuant to 38 U.S.C. §§ 3901–3904, that is used to provide or assist in providing the vehicle to the veteran or service member; provided, that the exemption shall only apply to the portion of the price of the vehicle that is in excess of the amount of the grant received.
History (2)
  • Acts 1997, ch. 111, § 1
  • 2018, ch. 541, § 1.
§ 67-6-354. Design professionals' sketches, drawings and models.
  1. There is exempt from the tax imposed by this chapter any concept sketch, drawing, or model by an architect, engineer, landscape architect or interior designer that is used in the development of a prototype for manufacture or production.
History (1)
  • Acts 1997, ch. 144, § 1.
§ 67-6-355. Credit for fire protection sprinkler contractors.
  1. (a) There shall be a credit of the amount of any special contractor tax paid in another state against the tax imposed by this chapter for materials sold to or used by a fire protection sprinkler contractor; provided, that such materials are used by the fire protection sprinkler contractor to fabricate pipe and pipe fittings or use valves and pipe fittings for application or use by the fire protection sprinkler contractor in the performance of a contract outside the state. The credit shall be limited to the amount of tax attributable to the value of such materials.
  2. (b) For the purpose of this section, “fire protection sprinkler contractor” means any person engaged in those activities described under Industry Group 349, Miscellaneous Fabricated Metal Products, 3494 Valves and Pipe Fittings, Not Elsewhere Classified and 3498 Fabricated Pipe and Pipe Fittings, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget.
  3. (c) For the purpose of this section, “fabricated pipe and pipe fittings” means those products listed under Industry 3498, Fabricated Pipe and Pipe Fittings, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget.
  4. (d) For the purpose of this section, “valves and pipe fittings” means those products listed under Industry 3494, Valves and Pipe Fittings, Not Elsewhere Classified, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget.
History (1)
  • Acts 1998, ch. 1084, § 1.
§ 67-6-356. Sales and use tax exemption for telecommunications services used by call centers.
  1. (a) There shall be exempted from the sales and use tax imposed by this chapter any sales of interstate telecommunication and international telecommunication services to a business for use in the operation of one (1) or more call centers. “Call center” means a single location that utilizes telecommunication services in one (1) or more of the following activities: customer services, soliciting sales, reactivating dormant accounts, conducting surveys or research, fund raising, collection of receivables, receiving reservations, receiving orders, or taking orders. A call center shall have at least two hundred fifty (250) employee jobs engaged primarily in such call center activities.
  2. (b) No dealer shall sell any such interstate telecommunication and international telecommunication service under the claim that the service is exempt from the sales or use tax levied by this chapter, where the exemption from taxation is claimed because the vendee or user is entitled to an exemption as a call center, unless the vendee or user shall have issued to it by the commissioner an exemption certificate declaring that such call center is entitled to the exemption. In the event a business operating a call center uses its exemption authorization to purchase other services not exempted, the business shall be liable for applicable tax, penalty, and interest. The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption.
History (2)
  • Acts 1999, ch. 413, § 2
  • 2004, ch. 782, § 17.
§ 67-6-357. Credit on retail tobacco sales tax.
  1. (a) A credit shall be granted in the manner provided in subsection (b) for the amount of the sales tax due on tobacco buydown payments included in the sales price of tobacco sold at retail.
  2. (b) The credit shall apply such that sales tax is owed on the sales price of the tobacco less the tobacco buydown payment associated with such sale.
  3. (c) For purposes of this section the following definitions apply:
    1. (1) “Tobacco buydown agreement” means an agreement whereby an amount, whether paid in money, credit, or otherwise, is received by a retailer from a manufacturer or wholesaler based upon the quantity and unit price of tobacco sold at retail that requires the retailer to reduce the sales price of the product to the purchaser without the use of a manufacturer's coupon or redemption certificate; and
    2. (2) “Tobacco buydown payment” means the amount due to the retailer pursuant to a tobacco buydown agreement.
Backlinks (1)
History (1)
  • Acts 2003, ch. 418, § 6.
§ 67-6-358. Tax exemption on retail sale of firearm safes and safety devices.
  1. (a) There is exempt from the tax imposed by this chapter the retail sale of firearm safes and firearm safety devices.
  2. (b) As used in this section:
    1. (1) “Firearm safe” means a locking container or other enclosure, excluding glass-faced containers, equipped with a padlock, key lock, combination lock, or other locking device that is designed and intended for the secure storage of one (1) or more firearms; and
    2. (2) “Firearm safety device” means:
      1. (A) A device that, when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating the device; or
      2. (B) A device to be equipped or installed on a firearm that is designed to prevent the operation of the firearm by anyone who does not have authorized access to the firearm.
History (1)
  • Acts 2023 (1st. Ex. Sess.), ch. 1, § 5.
§ 67-6-384. Spallation neutron source facility.
  1. (a) Notwithstanding any provision of law to the contrary, with respect to a spallation neutron source facility that is funded by the United States government or instrumentality thereof, not funded with any state funds and located at a national laboratory, there shall be exempt from the tax levied by this chapter any:
    1. (1) Property that becomes a component part of or is used exclusively in the operation or repair of the facility;
    2. (2) Services, materials or items furnished or supplied to the facility and used exclusively in the operation of the facility; and
    3. (3) Property, services, building materials, machinery, equipment, supplies, repair parts, replacement materials or other items used exclusively in the construction, operation or repair of the facility or its operations.
  2. (b) The exemptions provided in this section shall apply regardless of whether the exempted property or service is leased or purchased.
  3. (c) Any entity that qualifies for a tax exemption under this section shall not be eligible for a sales and use tax exemption with regard to any industrial machinery that is used in the operation of a qualified data center or used primarily for research and development; provided, however, that this subsection (c) shall not apply to a leadership computing facility that is funded by the United States government or instrumentality thereof, not funded with any state funds, and located at a national laboratory.
History (2)
  • Acts 2000, ch. 540, § 1
  • 2018, ch. 963, § 1.
§ 67-6-387. Computer software for personal use — Access and use of software remaining in possession of dealer for purpose of fabricating other software for own use.
  1. (a) There is exempt from the tax imposed by this chapter the fabrication, installation, and repair of computer software by a person, including the person's agent or direct employee, for the person's own use and consumption. As used in this section, the term “direct employee” means an employee to whom the person is obligated to issue a federal form W-2, wage and tax statement, and with respect to whom the person has responsibility for withholding taxes under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101-3126), or such other entity or affiliate that upon petition to the commissioner has been approved as having that responsibility under this section.
  2. (b) There is exempt from the tax imposed by this chapter the access and use of software that remains in the possession of the dealer who provides the software or in the possession of a third party on behalf of such dealer, as described in § 67-6-231(b), where the access and use of the software is solely by a person or the person's agent or direct employee, as defined in subsection (a), for the exclusive purpose of fabricating other software that is both:
    1. (1) Owned by that person; and
    2. (2) For that person's own use and consumption.
History (7)
  • Acts 2003, ch. 357, § 55
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • Acts 2007, ch. 602, §§ 51, 100
  • 2009, ch. 530, § 54
  • 2015, ch. 514, § 24
  • 2022, ch. 1065, § 1.
§ 67-6-388. Exemption from sales and use tax on leased motor vehicles for insurance proceeds paid on damage settlements.
  1. Notwithstanding this chapter or any other law to the contrary, there shall be an exemption from sales and use tax otherwise imposed on the gross proceeds of motor vehicle leases for insurance proceeds paid pursuant to a damage settlement by an insurance company to the owner of a leased passenger motor vehicle, where that vehicle has sustained damage that renders the vehicle a salvage vehicle, nonrepairable vehicle or flood vehicle, and the owner transfers title to such damaged vehicle to the insurance company.
History (1)
  • Acts 2004, ch. 823, § 1.
§ 67-6-389. Exemption for private communications services.
  1. (a) Private communications services shall be exempt from the tax imposed by this chapter, when such services are utilized for communications with a computer or telecommunications center located in this state, by a taxpayer that has qualified for the headquarters tax credit provided for in § 67-6-224, or by an affiliate of such taxpayer.
  2. (b) For purposes of this section, “affiliate” means the same as defined in §  48-103-102.
  3. (c) Persons seeking to make purchases of private communications exempt from tax shall apply to the commissioner for an authorization declaring that the purchaser is entitled to the exemption. In order to obtain the exemption, qualified purchasers shall provide a copy of the authorization or a fully completed Streamlined Sales Tax certificate of exemption to each dealer from which it intends to make exempt purchases. If a person purchases exempt private communications and the private communications services are not utilized for communications with a computer or telecommunications center located in this state, by a purchaser that has qualified for the headquarters tax credit provided for in § 67-6-224, or by an affiliate of the purchaser, then the purchaser shall be liable for tax at a rate applicable to the retail sale of the private communications service.
  4. (d) The exemption in subsection (a) shall apply for so long as such qualified headquarters facility is located in this state.
  5. (e) Any taxpayer that moves tangible personal property into this state in conjunction with establishing a qualified headquarters facility, as defined in § 67-6-224, and qualifying for the headquarters facility tax credit provided in § 67-6-224, shall be exempt from any sales and use tax liability that arises solely as a result of moving the property into the state; provided, that the tangible personal property was previously used by the taxpayer in the operation of its business.
History (3)
  • Acts 2004, ch. 782, § 19
  • 2007, ch. 602, § 99
  • 2008, ch. 1106, § 29.
§ 67-6-390. Exemption for sales of telecommunications services between affiliates.
  1. The tax levied by this chapter shall not apply to sales of telecommunications services between affiliates, when one (1) of the entities that is a member of the affiliated group has qualified for the headquarters tax credit provided for in § 67-6-224. The entity that purchases the telecommunications services from a vendor that is not a member of the affiliated group shall be deemed the user and consumer of such services, and shall pay the appropriate tax on such services. For purposes of this section, “affiliate” means the same as defined in §  48-103-102. This exemption shall apply for so long as such qualified headquarters facility is located in this state.
History (1)
  • Acts 2004, ch. 782, § 19.
§ 67-6-391. Tennessee broadband equipment and services moratorium.
  1. (a) Beginning July 1, 2022, through June 30, 2025, there is exempt from the sales and use tax imposed by this chapter purchases and leases of all equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to:
    1. (1) Produce broadband communications services, including broadcasting, distributing, sending, receiving, storing, transmitting, retransmitting, amplifying, switching, providing connectivity for, or routing communications services; or
    2. (2) Provide internet access.
  2. (b) This section does not apply to the retail sale of personal consumer electronics, including, but not limited to, smartphones, computers, and tablets, and consumer-grade modems and Wi-Fi routers.
  3. (c) As used in this section:
    1. (1) “Broadband communications services” means:
      1. (A) Telecommunications services;
      2. (B) Mobile telecommunications services;
      3. (C) Video programming services; and
      4. (D) Direct-to-home satellite television programming services;
    2. (2) “Equipment” includes, but is not limited to, wires, cables, fiber, conduits, antennas, poles, switches, routers, amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers, transmitters, circuit cards, insulating and protective materials and cases, power equipment, backup power equipment, diagnostic equipment, storage devices, modems, and other general central office or headend equipment, such as channel cards, frames, and cabinets, or equipment used in successor technologies, including items used to monitor, test, maintain, enable, or facilitate qualifying equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to provide broadband communications services or internet access; and
    3. (3) “Internet access”:
      1. (A) Means a service that enables users to connect to the internet to access content, information, or other services offered over the internet;
      2. (B) Includes:
        1. (i) The purchase, use, or sale of telecommunications by a provider of internet access to the extent the telecommunications are purchased, used, or sold to:
          1. (a) Provide the internet access service; or
          2. (b) Otherwise enable users to access content, information, or other services offered over the internet;
        2. (ii) Services that are incidental to the provision of internet access when furnished to users as part of the internet access service, such as a home page, email and instant messaging, to include voice- and video-capable email and instant messaging, video clips, and personal electronic storage capacity; and
        3. (iii) A homepage, email and instant messaging, to include voice- and video-capable email and instant messaging, video clips, and personal electronic storage capacity, that are provided independently or packaged with internet access; and
      3. (C) Does not include voice, audio, or video programming, or other products and services that utilize internet protocol or a successor protocol and for which there is a charge, regardless of whether the charge is separately stated or aggregated with the charge for services for internet access.
  4. (d) Beginning July 1, 2022, the commissioner of revenue shall reimburse counties and municipalities for loss of revenue resulting from the tax exemption provided for in this section. Subject to appropriations, a sum must be earmarked and allocated from the general fund for this purpose.
History (1)
  • Acts 2022, ch. 1102, §§  2, 3.
§ 67-6-392. Exemption for detailing and repair services on motor vehicles held for resale.
  1. (a) Purchases of detailing services and repair services performed on motor vehicles that are held for resale are exempt from the tax imposed by this chapter, if such vehicles are held for resale by a licensed motor vehicle dealer or licensed automobile auction. A person selling detailing services shall, however, be considered to be the user and consumer of any articles of tangible personal property that person purchases or uses in performance of such detailing services.
  2. (b)
    1. (1)
      1. (A) For purposes of this section, “detailing services” means and includes services that cosmetically or functionally refurbish or restore to like-new or serviceable condition or appearance and that are intended to enhance or increase the sales value of used or pre-owned motor vehicles in preparation for the vehicles being offered for sale at wholesale or retail in the ordinary course of the seller's business, or that cosmetically or functionally prepare new vehicles for sale at wholesale or retail in the ordinary course of the seller's business.
      2. (B) “Motor vehicle detailing services” shall not include washing or cleaning of motor vehicles, except when performed in conjunction with the activities provided for in this section.
    2. (2) For purposes of this section “motor vehicle” shall mean a motor vehicle subject to registration and titling in this state pursuant to § 55-3-101, and “licensed motor vehicle dealer” and “licensed automobile auction” shall mean a person licensed as such pursuant to title 55, chapter 17.
Backlinks (1)
History (1)
  • Acts 2004, ch. 924, § 16.
§ 67-6-393. Exemption for sales tax holiday.
  1. (a) Any exemption provided by this section shall be known as a “sales tax holiday.”
  2. (b)
    1. (1) There is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on the last Friday of July and 11:59 p.m. the following Sunday:
      1. (A) Clothing with a sales price of one hundred dollars ($100) or less per item;
      2. (B) School supplies with a sales price of one hundred dollars ($100) or less per item;
      3. (C) School art supplies with a sales price of one hundred dollars ($100) or less per item; and
      4. (D) Computers with a sales price of one thousand five hundred dollars ($1,500) or less per item.
    2. (2) The exemption provided by this subsection (b) does not apply to the following:
      1. (A) Computer software;
      2. (B) Clothing accessories or equipment;
      3. (C) Protective equipment;
      4. (D) Sport or recreational equipment;
      5. (E) School instructional material;
      6. (F) School computer supplies;
      7. (G) Any item for use in a trade or business;
      8. (H) The lease or rental of any item; or
      9. (I) Video game consoles.
  3. (c) Each retailer making exempt sales under this section shall report the amount of such sales to the commissioner on the retailer's sales and use tax returns.
  4. (d) The exemption provided in this section shall be subject to the following provisions:
    1. (1) Layaway Sales. A sale of eligible property under a layaway sale qualifies for exemption, if:
      1. (A) Final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period; or
      2. (B) The purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period;
    2. (2) Coupons and Discounts. A discount by the seller reduces the sales price of the property and the discounted sales price determines whether the sales price is within a sales tax holiday price threshold. A coupon that reduces the sales price is treated as a discount, if the seller is not reimbursed for the coupon amount by a third party. If a discount applies to the total amount paid by a purchaser, rather than to the sales price of a particular item, and the purchaser has purchased both eligible property and taxable property, the seller should allocate the discount based on the total sales price of the taxable property compared to the total sales price of all property sold in that same transaction;
    3. (3) Splitting of Items Normally Sold Together. Articles that are normally sold as a single unit must continue to be sold in that manner. Such articles cannot be priced separately and sold as individual items in order to obtain the exemption. For example, each shoe of a pair of shoes cannot be sold separately so that the sales price of each shoe is within a sales tax holiday price threshold;
    4. (4) Rain Checks. A rain check allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock. Eligible property that customers purchase during the exemption period with use of a rain check shall qualify for the exemption, regardless of when the rain check was issued. Issuance of a rain check during the exemption period shall not qualify eligible property for the exemption, if the property is actually purchased after the exemption period;
    5. (5) Exchanges. The procedure for an exchange regarding a sales tax holiday is as follows:
      1. (A) If a customer purchases an item of eligible property during the exemption period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due, even if the exchange is made after the exemption period;
      2. (B) If a customer purchases an item of eligible property during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item; and
      3. (C) If a customer purchases an item of eligible property before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item, if the new item is purchased during the exemption period;
    6. (6) Delivery Charges. Delivery charges, including shipping, handling and service charges, are part of the sales price of eligible property. For the purpose of determining a sales tax holiday price threshold, if all the property in a shipment qualifies as eligible property and the sales price for each item in the shipment is within the sales tax holiday price threshold, then the seller does not have to allocate the delivery, handling, or service charge to determine if the price threshold is exceeded. The shipment shall be considered a sale of eligible products. If the shipment includes eligible property and taxable property, including an eligible item with a sales price in excess of the price threshold, the seller should allocate the delivery charge by using:
      1. (A) A percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or
      2. (B) A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. The seller shall tax the percentage of the delivery charge allocated to the taxable property, but does not have to tax the percentage allocated to the eligible property;
    7. (7) Order Date and Back Orders. For the purpose of a sales tax holiday, eligible property qualifies for exemption, if:
      1. (A) The item is both delivered to and paid for by the customer during the exemption period; or
      2. (B) The customer orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an “in date” stamp on a mail order or assignment of an “order number” to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment, notwithstanding that the shipment may be delayed because of a backlog of orders, or because stock is currently unavailable to, or on back order by, the seller;
    8. (8) Returns. For a sixty-day period immediately after the sales tax holiday exemption period, when a customer returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given, unless the customer provides a receipt or invoice that shows tax was paid, or the seller has sufficient documentation to show that tax was paid on the specific item. This sixty-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that sales tax was paid on returned merchandise. The sixty-day period is not intended to change a seller's policy on the time period during which the seller will accept returns; and
    9. (9) Different Time Zones. The time zone of the seller's location determines the authorized time period for a sales tax holiday, when the purchaser is located in one time zone and a seller is located in another.
  5. (e) For purposes of subsection (d), “eligible property” means an item of a type, such as clothing, that qualifies for exemption under this section.
  6. (f)
    1. (1) Notwithstanding subsection (b), there is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on Friday, July 31, 2020, and 11:59 p.m. on Sunday, August 2, 2020:
      1. (A) Clothing with a sales price of two hundred dollars ($200) or less per item;
      2. (B) School supplies with a sales price of two hundred dollars ($200) or less per item;
      3. (C) School art supplies with a sales price of two hundred dollars ($200) or less per item; and
      4. (D) Electronic devices, including, but not limited to, computers and televisions, with a sales price of three thousand dollars ($3,000) or less per item.
    2. (2) The exemption provided by this subsection (f) does not apply to the following:
      1. (A) Computer software;
      2. (B) Clothing accessories or equipment;
      3. (C) Protective equipment;
      4. (D) Sport or recreational equipment;
      5. (E) School instructional material;
      6. (F) School computer supplies;
      7. (G) Any item for use in a trade or business; or
      8. (H) The lease or rental of any item.
  7. (g) There is exempt from the tax imposed by this chapter the retail sale of food and drink by restaurants and limited service restaurants, as defined in § 57-4-102, if sold between 12:01 a.m. on Friday, August 7, 2020, and 11:59 p.m. on Sunday, August 9, 2020.
  8. (h)
    1. (1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102, if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021.
    2. (2) There is exempt from the tax imposed by this chapter the retail sale of prepared food, as defined in § 67-6-102, but excluding alcoholic beverages, if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021. For purposes of this subdivision (h)(2), such prepared food qualifies for exemption if delivered or served during the exemption period and paid for by the customer either during or prior to the exemption period, notwithstanding subdivision (d)(7) to the contrary.
  9. (i) [Deleted by 2023 1st. Ex. Sess. amendment.]
  10. (j)
    1. (1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102, if sold between 12:01 a.m. on Monday, August 1, 2022, and 11:59 p.m. on Wednesday, August 31, 2022. This subsection (j) does not exempt sales from a micro market, as defined in § 67-6-102, or vending machine or device.
    2. (2) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102, if sold between 12:01 a.m. on August 1, 2023, and 11:59 p.m. on October 31, 2023. This subdivision (j)(2) does not exempt sales from a micro market, as defined in § 67-6-102, or vending machine or device.
      Backlinks (1)
Backlinks (1)
History (15)
  • Acts 2005, ch. 398, § 1
  • 2006, ch. 1019, § 60
  • 2007, ch. 534, §§ 1, 2
  • 2007, ch. 600, § 3
  • 2007, ch. 602, § 101
  • 2008, ch. 617, § 1
  • 2015, ch. 123, § 4
  • 2016, ch. 1048, § 1
  • 2020, ch. 759, §§ 15, 16
  • 2021, ch. 456, § 1
  • 2021, ch. 592, § 1
  • 2022, ch. 1053, § 1
  • 2022, ch. 1131, § 3
  • 2023, ch. 377, § 29
  • 2023 (1st. Ex. Sess.), ch. 1, § 4.
§ 67-6-394. Credit for sales tax due on a transaction accommodation fee included in a sale or lease.
  1. (a) A credit shall be granted, in the manner provided in subsection (b), for the amount of the sales tax due on a transaction accommodation fee included in the sales price of a sale or the gross proceeds of a lease.
  2. (b) The credit shall apply such that sales tax is owed on the sales price or gross proceeds, less the transaction accommodation fee associated with such sale or lease.
  3. (c) For purposes of this section, the following definitions shall apply:
    1. (1) “Full-time employee” means a permanent, rather than seasonal or part-time, employee who is normally scheduled to work at least thirty-seven and one-half (37.5) hours per week, and receives minimal healthcare, as described in title 56, chapter 7, part 22;
    2. (2) “Qualified motor vehicle manufacturer” means a producer, as defined in § 55-17-123(b)(2), that has made the required capital investment within the investment period necessary to qualify for the credit provided in § 67-4-2109(b)(2)(B)(i), or one of its related business entities;
    3. (3)
      1. (A) “Related business entity” means a business entity:
        1. (i) In which the qualified motor vehicle manufacturer, directly or indirectly, has more than thirty-five percent (35%) ownership interest;
        2. (ii) That, directly or indirectly, has more than thirty-five percent (35%) ownership interest in the qualified motor vehicle manufacturer; or
        3. (iii) In which a person described in subdivision (c)(3)(A)(ii), directly or indirectly, has more than thirty-five percent (35%) ownership interest;
      2. (B) For purposes of this subdivision (c)(3), a noncorporate entity is more than thirty-five percent (35%) owned, if, upon liquidation, more than thirty-five percent (35%) of the assets of the noncorporate entity, directly or indirectly, accrue to the entity having the ownership interest; and
    4. (4) “Transaction accommodation fee” means the standard charge made by a franchised motor vehicle dealer to a qualified motor vehicle manufacturer in consideration for selling or leasing a motor vehicle produced by the qualified manufacturer to one (1) of the qualified manufacturer's full-time employees. Records documenting the amount of the standard transaction accommodation fee shall be maintained by the dealer in accordance with § 67-6-523.
    Backlinks (1)
History (3)
  • Acts 2005, ch. 499, § 84
  • 2006, ch. 1019, §§ 41, 42
  • 2009, ch. 530, § 11.
§ 67-6-395. Exemption for use of computer software developed, fabricated, and repaired by an affiliated company.
  1. (a) There is exempt from the tax imposed by this chapter the use of computer software that is developed and fabricated by an affiliated company, regardless of whether such software is accessed and used as described in § 67-6-231(b) or delivered by other means.
  2. (b) There is exempt from the tax imposed by this chapter the repair of computer software or any other services otherwise taxable that are rendered by a company for an affiliated company.
  3. (c) For purposes of this section, companies are affiliated only if:
    1. (1) Either company directly owns or controls one hundred percent (100%) of the ownership interest of the other company; or
    2. (2) One hundred percent (100%) of the ownership interest of both companies is owned or controlled by a common parent.
    Backlinks (1)
History (3)
  • Acts 2006, ch. 1019, § 40
  • 2009, ch. 530, § 68
  • 2015, ch. 514, § 25.
§ 67-6-396. Exemptions from sales and use tax for natural disaster claimants.
  1. (a) For purposes of this section:
    1. (1) “Claimant” means any natural person receiving disaster assistance through the federal emergency management agency (FEMA) for repair, replacement, or construction of the person's primary residence that was damaged or destroyed as a result of a natural disaster occurring in Tennessee;
    2. (2) “Major appliance” means any water heater, dishwasher, washer, dryer, refrigerator, freezer, stove, range, oven, cooktop, microwave, vacuum, or fan that is used in the claimant's primary residence to replace an appliance that was damaged or destroyed in a natural disaster occurring in Tennessee; provided, that the sales price per item is three thousand two hundred dollars ($3,200) or less;
    3. (3) “Residential building supplies” means any of the following items if used in the claimant's primary residence and reasonably determined by the department to be for purposes of restoration, repair, replacement, or rebuilding due to a natural disaster occurring in Tennessee; provided, that the sales price per item is five hundred dollars ($500) or less:
      1. (A) Cleaning and disinfecting materials, as determined by the department;
      2. (B) Trash bags, boxes, construction tools, and hardware, as determined by the department;
      3. (C) Roofing shingles, roofing paper, gutters, downspouts, vents, doors, windows, sheetrock, drywall, insulation, paint and paint materials, flooring, and other necessary building materials, as determined by the department; and
    4. (4) “Residential furniture” means furniture commonly used in a residential dwelling, as determined by the department, that is used in the claimant's primary residence to replace furniture that was damaged or destroyed in a natural disaster occurring in Tennessee; provided, that the sales price per item is three thousand two hundred dollars ($3,200) or less.
  2. (b) A claimant shall be entitled to a refund equal to the total amount of Tennessee state and local sales and use tax paid by the claimant to one (1) or more retailers as a result of the claimant's purchases of major appliances, residential furniture, or residential building supplies from such retailers; provided, that the total amount refunded under this section in connection with any one (1) residence shall not exceed two thousand five hundred dollars ($2,500).
  3. (c)
    1. (1) To receive a refund under this section, a claimant may file only one (1) natural disaster claim for refund with the department, and shall file such claim for refund within one (1) year from the date shown on the FEMA decision letter received by the claimant.
    2. (2) The claimant must also certify on the natural disaster claim for refund form that purchases for which the refund is claimed were to replace, repair or restore property damaged in a federally declared natural disaster occurring in Tennessee.
    3. (3) Notwithstanding any provision of § 67-1-1802, such refund shall be made by the department directly to the claimant and shall not be made by the retailer to the claimant. All natural disaster claims for refund shall include satisfactory proof of receipt of federal disaster assistance.
    4. (4) Each claimant shall keep and preserve suitable records of the purchases for which a refund is claimed pursuant to this section, including, but not limited to, store receipts and copies of payment documents such as checks, credit card receipts, or a sworn statement under penalty of perjury to support any purchases made using cash. Such records must be kept and preserved for a period of three (3) years from December 31 of the year in which the natural disaster claim for refund was filed. Such records shall be open to the inspection of the commissioner, or the duly authorized delegates of the commissioner, at all reasonable hours.
    5. (5) The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate the amount of any refund due to the claimant.
  4. (d) The department may assess a civil penalty not to exceed twenty-five thousand dollars ($25,000) against any person that knowingly files a false or fraudulent application for refund under this section. Any claimant that is assessed a penalty under this subsection (d) shall be entitled to the remedies provided in § 67-1-1801.
  5. (e) All refunds under this section shall be paid from the state's general fund and nothing in this section shall be construed to reduce the amount of sales and use tax payable to local governments.
  6. (f)
    1. (1) Notwithstanding subsection (b), for a federally declared natural disaster that occurred during the period of November 28, 2016, to December 9, 2016, in a county with a population of not less than eighty-nine thousand eight hundred (89,800) nor more than eighty-nine thousand nine hundred (89,900), according to the 2010 federal census or any subsequent federal census, the total amount refunded under this section in connection with any one (1) residence shall not exceed three thousand five hundred dollars ($3,500).
    2. (2) For purposes of this subsection (f), a “claimant” has the same meaning as defined in subdivision (a)(1) and includes a natural person whose secondary residence was damaged or destroyed by fire as a result of a federally declared natural disaster that occurred during the period of November 28, 2016, to December 9, 2016, in a county with a population of not less than eighty-nine thousand eight hundred (89,800) nor more than eighty-nine thousand nine hundred (89,900), according to the 2010 federal census or any subsequent federal census.
    3. (3) For purposes of this subsection (f), each claimant is limited to one (1) refund claim for a primary residence and one (1) refund claim for one (1) secondary residence.
    4. (4) For purposes of this subsection (f), “major appliance,” “residential building supplies,” and “residential furniture” have the same meanings as defined in subsection (a) and include such items as used in the claimant's secondary residence.
    5. (5) Subsection (c) shall apply to all refund claims in connection with a primary residence.
    6. (6) Subsection (c) shall apply to all refund claims in connection with a secondary residence; provided, that a claimant is not required to include proof of receipt of federal disaster assistance and the claimant must file such claim for a refund by April 1, 2018. The claimant must certify that the secondary residence was damaged or destroyed by fire in a federally declared natural disaster that occurred during the period of November 28, 2016, to December 9, 2016, in a county with a population of not less than eighty-nine thousand eight hundred (89,800) nor more than eighty-nine thousand nine hundred (89,900), according to the 2010 federal census or any subsequent federal census.
  7. (g)
    1. (1) As used in this subsection (g):
      1. (A) “Claimant” means a natural person whose primary residence was damaged or destroyed as a result of a natural disaster that occurred during the period of April 1, 2024, to April 3, 2024, in a county with a population of not less than twenty-one thousand (21,000) nor more than twenty-one thousand one hundred (21,100), according to the 2020 federal census or a subsequent federal census, or in a municipality located within such county; and
      2. (B) “Major appliance,” “residential building supplies,” and “residential furniture” have the same meanings as defined in subsection (a).
    2. (2) Subsections (b) - (e) apply to all refund claims in connection with a primary residence under this subsection (g); except, that:
      1. (A) A claimant is not required to include proof of receipt of federal disaster assistance;
      2. (B) The claimant must file the claim for a refund by November 1, 2024; and
      3. (C) The natural disaster certified by the claimant is not required to be a federally declared natural disaster.
    3. (3) The claimant must certify that the primary residence was damaged or destroyed by a tornado that occurred during the period of April 1, 2024, to April 3, 2024, in a county with a population of not less than twenty-one thousand (21,000) nor more than twenty-one thousand one hundred (21,100), according to the 2020 federal census or a subsequent federal census, or in a municipality located within such county.
History (3)
  • Acts 2012, ch. 1013, § 1
  • 2017, ch. 390, § 2
  • 2024, ch. 979, § 1.
Part 4 Administrative Provisions
§ 67-6-401. Administration by commissioner.
  1. The commissioner shall administer and enforce the assessment and collection of the taxes and penalties imposed by this chapter.
History (3)
  • Acts 1947, ch. 3, § 14
  • C. Supp. 1950, § 1248.86 (Williams, § 1328.36)
  • T.C.A. (orig. ed.), § 67-3046.
§ 67-6-402. Rules and regulations.
  1. (a) The commissioner has the power to make and publish reasonable rules and regulations not inconsistent with this chapter or the other laws, or the constitution of this state or the United States, for the enforcement of this chapter and the collection of revenues hereunder.
  2. (b) The commissioner is authorized to make and publish such rules and regulations not inconsistent with this chapter as the commissioner may deem necessary in enforcing its provisions, in order that there shall not be collected on the average more than the rate levied by this chapter. The commissioner is authorized to, and shall, provide, by rule and regulation, a method for accomplishing this end, and shall prepare instructions to dealers by setting out to them suitable methods for applying the tax that may be necessary for the purpose of the enforcement of this chapter and the collection of the tax imposed thereby.
Backlinks (1)
History (7)
  • Acts 1947, ch. 3, §§ 13, 14
  • C. Supp. 1950, §§ 1248.85, 1248.86 (Williams, §§ 1328.35, 1328.36)
  • T.C.A. (orig. ed.), §§ 67-3045, 67-3046
  • Acts 2003, ch. 357, § 56
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 102.
§ 67-6-403. Forms.
  1. (a) The commissioner shall design, prepare, print and furnish to all dealers, or make available to the dealers, all necessary forms for filing returns and instructions to ensure a full collection from dealers and an accounting for the taxes due; but failure of any dealer to secure such forms shall not relieve such dealer from the payment of the tax at the time and in the manner provided in this chapter.
  2. (b) The cost of preparing and distributing the reports, forms, and paraphernalia for the collection of the tax and the inspection and enforcement duties required in this section shall be borne by the revenues produced by this chapter, as provided for in this chapter.
History (3)
  • Acts 1947, ch. 3, §§ 13, 14
  • C. Supp. 1950, §§ 1248.83, 1248.86 (Williams, §§ 1328.35, 1328.36)
  • T.C.A. (orig. ed.), §§ 67-3043, 67-3046.
§ 67-6-404. Oaths.
  1. The commissioner and the commissioner's assistants are authorized and empowered to administer the oath for the purpose of enforcing and administering this chapter.
History (3)
  • Acts 1947, ch. 3, § 13
  • C. Supp. 1950, § 1248.84 (Williams, § 1328.35)
  • T.C.A. (orig. ed.), § 67-3044.
§ 67-6-405. Personnel, supplies, and expenses.
  1. (a) The commissioner, with the approval of the governor, is authorized to employ all necessary assistance to administer this chapter properly, and is also authorized to purchase all necessary supplies and equipment, and to incur any other necessary expenses that may be required for this purpose, in order to put the chapter fully and completely into effect.
  2. (b) All necessary expenses of employees to administer this chapter shall be paid in the manner provided by law applicable to expenses of other state officials and employees.
History (5)
  • Acts 1947, ch. 3, §§ 14, 17
  • mod. C. Supp. 1950, §§ 1248.86, 1248.89 (Williams, §§ 1328.36, 1328.39)
  • Acts 1971, ch. 117, § 6
  • 1976, ch. 789, § 1
  • T.C.A. (orig. ed.), §§ 67-3046, 67-3048.
§ 67-6-406. Registration of motor vehicles and boats dependent on payment of tax.
  1. The commissioner is authorized to require the assistance of any official of the state or of any political subdivision thereof in the administration of this chapter, and it is unlawful for any official of this state or of any political subdivision thereof to accept an application for a certificate of title to a motor vehicle as provided for in title 55, chapters 1-6, or for a certificate of registration for a vessel as provided for in title 69, chapter 9, unless the applicant presents evidence that a sales or use tax, as provided for in this chapter, has been paid on the sales price of the vehicle or vessel by such applicant, or such applicant has authority from the commissioner to file an application for such certificate of title or registration without the payment of the sales or use tax. It is also unlawful for any official referred to herein to accept an application for a certificate of title to a motor vehicle when the sale of such vehicle constitutes an occasional and isolated sale which is taxable under § 67-6-102(8)(C), unless the applicant presents a bill of sale which evidences the sale price and also presents evidence that the sales or use tax has been paid on that amount, or in the absence of such a bill of sale, unless the official requires evidence of payment of the sales or use tax on the fair market value of the vehicle as the fair market value is determined by the official by reference to the most recent issue of an authoritative automotive pricing manual, such as the NADA Official Used Car Guide, Southeastern Edition.
History (5)
  • Acts 1947, ch. 3, § 17
  • mod. C. Supp. 1950, § 1248.89 (Williams, § 1328.39)
  • Acts 1971, ch. 117, § 6
  • 1976, ch. 789, § 1
  • T.C.A. (orig. ed.), § 67-3048.
§ 67-6-407. Dealers of aviation fuel — Reports.
  1. (a) The commissioner shall require each dealer of aviation fuel to file an additional report stating the total amount in gallons of aviation fuel sold and the dollar amount collected from such sales. The report required by this section shall be filed on a monthly or quarterly basis, as determined by the commissioner in the commissioner's discretion. Such report shall be filed no later than thirty (30) days after the last day of the sales period covered by the report. The report shall be supplemental to any other report required by the department and shall be on a form prescribed by the department.
  2. (b) In addition to any other penalty provided by law, the commissioner is authorized to assess any taxpayer required to file the report described in subsection (a) a civil penalty of five hundred dollars ($500) for failure to file such report. Such penalty shall be subject to waiver under § 67-1-803.
History (7)
  • Acts 1989, ch. 348, § 1
  • 2004, ch. 959, § 67
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 156
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2011, ch. 194, § 1.
§ 67-6-408. Transportation equity trust fund — Commissioners' annual report.
  1. On or before December 31 each year, the commissioners of revenue and transportation shall jointly publish and provide to the governor and to each member of the general assembly a report that summarizes the amount and source of all moneys received and deposited during the preceding fiscal year in the transportation equity fund, created pursuant to § 67-6-103(b). The report shall also include the following information:
    1. (1) The total amount of moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for aviation;
    2. (2) The total amount of moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for railways;
    3. (3) The total amount of moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for water carriers;
    4. (4) The portion of the transportation equity trust fund used by the department of transportation for railway-related programs and activities, including a brief description of each such program and activity receiving such funding;
    5. (5) The portion of the transportation equity trust fund used by the department of transportation for aeronautics-related programs and activities, including a brief description of each such program and activity receiving such funding; and
    6. (6) The portion of the transportation equity trust fund used by the department of transportation for waterways-related programs and activities, including a brief description of each such program and activity receiving such funding.
History (6)
  • Acts 1989, ch. 348, § 2
  • 2004, ch. 959, § 18
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 157
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1.
§ 67-6-409. Procedures for claiming exemption — Liability.
  1. (a) When a purchaser claims an exemption:
    1. (1) The seller or certified service provider shall obtain identifying information of the purchaser and the reason for claiming a tax exemption at the time of the purchase in accordance with the rules and regulations promulgated by the commissioner. The identifying information shall include: name, address, type of business, reason for exemption and a tax identification number issued by this state or other governmental authority as required by the commissioner;
    2. (2) The seller or certified service provider shall obtain either a copy of the purchaser's authorization for exemption issued by the commissioner or obtain, either in paper or electronic medium, a fully completed Streamlined Sales Tax certificate of exemption as approved by the governing board of the Streamlined Sales and Use Tax Agreement. The seller or certified service provider is not required to obtain a purchaser's signature for an electronic form of a certificate of exemption; however, the seller or certified service provider shall obtain from the purchaser all other information for proof of a claimed exemption regardless of the medium in which the transaction occurred;
    3. (3) The commissioner may utilize a system in which purchasers qualifying to make tax exempt purchases are issued an identification number that must be presented to the seller at the time of the sale; and
    4. (4) The seller and certified service provider shall maintain proper records of exempt transactions and provide them to the commissioner when requested.
  2. (b)
    1. (1) Sellers and certified service providers that follow the requirements of this section are not liable for the tax imposed by this chapter otherwise applicable, if it is determined that the purchaser improperly claimed an exemption, in which case the purchaser shall be liable for the tax. In the event a seller has a recurring business relationship with a purchaser, the seller and certified service provider are relieved from the tax imposed by this chapter, if the seller has obtained a blanket exemption certificate from the purchaser. A seller and a certified service provider shall not be required to update or renew blanket exemption certificates when there is a recurring business relationship.
    2. (2) The seller or certified service provider shall remain liable for the tax if the purchaser claims an entity-based exemption and the subject of the transaction sought to be covered by the exemption certificate is actually received by the purchaser at a location operated by the seller in this state, and the standard exemption certificate clearly and affirmatively indicates the claimed exemption is not available in this state.
    3. (3) For purposes of subdivision (b)(1), a “recurring business relationship” means at least one (1) sale transaction within a period of twelve (12) consecutive months.
  3. (c) Sellers or certified service providers that do not follow the requirements of this section shall be liable for the tax.
  4. (d) Sellers that fraudulently fail to collect tax or that solicit a purchaser to participate in the unlawful claim of an exemption shall be liable for the tax.
History (5)
  • Acts 2003, ch. 357, § 57
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2005, ch. 499, § 72
  • 2007, ch. 602, §§ 51, 103.
§ 67-6-410. Information report of sales of beer, tobacco products, or other types of tangible personal property.
  1. (a)
    1. (1) The commissioner is authorized to require persons selling beer, as defined in § 57-5-101, and persons selling tobacco products, as defined in § 67-4-1001, to retailers of such products to file an information report of such sales with the department. Nothing shall prevent a seller from including in its report sales of tangible personal property that are not otherwise required by this section.
    2. (2) The commissioner is authorized to require each tobacco product manufacturer, as defined in § 47-31-102, whose cigarettes are sold in this state, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, to file an information report related to tobacco buydown payments, as defined in § 67-6-357, received by retailers from the tobacco product manufacturer.
    3. (3) [Expires on July 1, 2025. See (a)(3)(C).]
      1. (A) The commissioner is authorized to require persons selling food, candy, or nonalcoholic beverages, including bottled soft drinks, to retailers of such products to file an information report of such net sales with the department. For purposes of this subdivision (a)(3):
        1. (i) “Bottled soft drinks” has the same meaning as defined in § 67-4-402;
        2. (ii) “Candy” has the same meaning as defined in § 67-6-102;
        3. (iii) “Food” and “nonalcoholic beverages” includes the items described in the definition of “food and food ingredients” in § 67-6-102 except for the following, which shall not be required for purposes of this section: perishable grocery items such as fruits, vegetables, deli meat, deli cheese, deli salads, and other deli products; fresh meats; refrigerated meats; frozen meats; frozen dinners, entrees, and meals; frozen pizza; or other frozen foods; and
        4. (iv) “Net sales” means the aggregate amount for which the reported products were sold during the reporting period, less any discounts, on-invoice adjustments, credit for returned merchandise, or other similar reductions in the amount charged to the retailer for the products covered by the report.
      2. (B)
        1. (i) Nothing in this section prevents a seller from including in its report net sales of tangible personal property that are not otherwise required by this section.
        2. (ii) Nothing in this section prevents a seller from reporting on a more detailed basis than required by this section.
        3. (iii) For purposes of this section, sales of candy, food, and nonalcoholic beverages, including bottled soft drinks as defined by § 67-4-402(a)(1), may be reported in the aggregate for each retailer location, in lieu of reporting specific SKU (Stock Keeping Units) identification number totals for each product.
      3. (C) This subdivision (a)(3) is deleted on July 1, 2025.
  2. (b) The information report shall contain such information as deemed reasonably necessary by the commissioner of revenue to ascertain the correctness of any tax return or to determine the liability of any person taxable under this part, and may include, but is not limited to, the following information:
    1. (1) The seller's name and license number;
    2. (2) The retailer's name, beer permit number if applicable, and sales and use tax account number;
    3. (3) The retailer's situs code and address, including street address, county, municipality, state, and zip code;
    4. (4) The general type of product sold; provided, that all candy, food, and nonalcoholic beverages, including bottled soft drinks, may be treated as a single type of product;
    5. (5) The dates each type of product was sold; provided, for all candy, food, and nonalcoholic beverage sales, including bottled soft drinks, the date can reflect the last day of the period covered by the report;
    6. (6) The quantity of each type of product sold;
    7. (7) The monthly or quarterly sales total, in dollars, of each type of product sold; and
    8. (8) If applicable, the name of the tobacco product manufacturer providing the tobacco buydown payment, the purchase date to which the tobacco buydown payment corresponds, and the amount of the tobacco buydown payment.
    Backlinks (1)
  3. (c) The information report shall be filed electronically in a format specified by the commissioner; provided, however, that electronic submission shall not be required from any wholesaler that does not keep records electronically in the ordinary course of business.
  4. (d) Notwithstanding subsection (b) or (c) to the contrary, no seller shall be required to change its record-keeping system for purposes of this section. If the seller's records do not include all of the information requested by the commissioner, or include the information in a different format than requested by the commissioner, the requirements of this section shall be satisfied if the seller includes in the report all of the requested information that the seller does have, in the format in which the seller ordinarily maintains such information.
  5. (e) The information report shall be filed for each calendar quarter and shall be due no later than the twenty-fifth day of the month immediately following the end of such period; provided, however, that nothing in this section prevents the seller from filing on a monthly basis. Any seller who fails to provide the information report by the due date or who negligently or knowingly includes inaccurate information on the information report is subject to a penalty, not to exceed two hundred fifty dollars ($250), for each inaccurate report, or for every month the report, or part thereof, is not provided, up to a maximum amount of two thousand five hundred dollars ($2,500). The commissioner is authorized to waive the penalty, in whole or in part, for good and reasonable cause under § 67-1-803.
  6. (f) Any person selling beer, as defined in § 57-5-101, who files the report required by this section, which report contains at least the information required by § 57-6-105(b), shall not be required to file with the department the report otherwise required by § 57-6-105(b); provided, however, that nothing in this subsection (f) shall relieve the seller from filing any report, or copy thereof, with any county or municipality.
  7. (g) The commissioner shall not issue any assessment under § 67-1-1438, including a notice of proposed assessment, to any retailer based solely on the information report submitted pursuant to this section unless the department first issues to the retailer an inquiry letter setting forth the information that led the department to its conclusion and providing an opportunity for the retailer to explain the inconsistencies between its purchases and reported sales. Nothing in this section prohibits a jeopardy assessment under § 67-1-1431.
  8. (h) [Expires on July 1, 2025. See (h)(5).]
    1. (1) Any wholesaler making sales of candy, food, and nonalcoholic beverages, including bottled soft drinks, in an amount less than five hundred thousand dollars ($500,000) during the prior calendar year shall not be required to include such sales of candy, food, and nonalcoholic beverage products, including bottled soft drinks, in the information report required under subsection (a).
    2. (2) Any wholesaler making sales of candy, food, or nonalcoholic beverages, including bottled soft drinks, to an affiliate shall not be required to include sales of candy, food, or nonalcoholic beverages, including bottled soft drinks, to any affiliates in the information report required under subsection (a). For purposes of this section, “affiliate” has the same meaning as provided in chapter 4, part 20 of this title.
    3. (3) Any wholesaler making sales of candy, food, or nonalcoholic beverages, including bottled soft drinks, to a retailer under the following circumstances shall not be required to include such sales in the information report required by subsection (a):
      1. (A) The retailer buys at least fifty percent (50%) of its candy, food, and nonalcoholic beverages, including bottled soft drinks, from an affiliate that falls within the exemption provided by subdivision (h)(2) and the retailer notifies the wholesaler in writing that this requirement is met; and
      2. (B) The wholesaler shall retain the retailer's written notification and provide a copy to the department upon reasonable request.
    4. (4) Any wholesaler making sales of candy, food, or nonalcoholic beverages, including bottled soft drinks, shall be allowed to submit the information required by this section in the format in which the seller ordinarily maintains such information.
    5. (5) This subsection (h) is deleted on July 1, 2025.
  9. (i) Nothing in this section limits the provisions of § 67-6-523.
  10. (j) Any notice of proposed assessment sent to a taxpayer based on the information report submitted pursuant to this section shall clearly state in bold face type the following language:
    1. As a taxpayer of Tennessee, you have a right to dispute any proposed assessment by filing a timely request for an informal conference.
  11. (k) The department shall provide an assessment calculation for each type of product required to be reported under this section. The assessment calculation shall be posted on the website of the department.
  12. (l) Any report provided to the department pursuant to this section shall be tax information of the wholesaler and shall be confidential pursuant to § 67-1-1702; provided, however, that the department is authorized to disclose, to an individual customer of the wholesaler, records of the customer's purchases contained within the report.
Backlinks (1)
History (5)
  • Acts 2012, ch. 657, § 9
  • 2015, ch. 342, §§ 1-3
  • 2016, ch. 907, §§ 1-6
  • 2019, ch. 179, §§ 1-5
  • 2022, ch. 887, §§ 1, 2.
§ 67-6-411. Duplicate information returns to be filed by payment settlement entities, third party settlement organizations, electronic payment facilitators or other third parties acting for payment settlement entities.
  1. (a) The commissioner is authorized to require that every payment settlement entity, third party settlement organization, electronic payment facilitator, or other third party acting on behalf of a payment settlement entity, all as defined in § 6050W of the Internal Revenue Code (26 U.S.C. § 6050) and referred to herein as a “reporting entity,” required to file information returns pursuant to that section shall, within thirty (30) days of the filing due date, file with the department in such form and manner as prescribed by the commissioner either a duplicate of all such information returns or a duplicate of such information returns related to taxpayers or participating payees, as defined in Section 6050W of the Internal Revenue Code, with a Tennessee address. The commissioner may require that such duplicate information returns be filed electronically.
  2. (b) Any information received by the department on a duplicate information return filed pursuant to this section concerning a person who is not subject to tax in Tennessee may not be used by the department.
  3. (c) Any reporting entity failing to file a duplicate information return required pursuant to this section within the time prescribed shall be subject to a penalty of one thousand dollars ($1,000) for each failure, if the failure is for not more than one (1) month, with an additional one thousand dollars ($1,000) for each month or fraction of a month during which each failure continues. The total amount of penalty imposed on a reporting entity may not exceed ten thousand dollars ($10,000) annually. The commissioner is authorized to waive the penalty imposed by this section, in whole or in part, for good and reasonable cause under § 67-1-803.
Backlinks (1)
History (1)
  • Acts 2015, ch. 342, § 4.
Part 5 Collection and Enforcement Generally
§ 67-6-501. Tax collected from dealer — Property management company tax on vacation lodging — Mobile telecommunications service tax — Liability of marketplace facilitator.
  1. (a) Except as otherwise provided in § 67-6-524(b), every dealer making sales, whether within or outside the state, of tangible personal property, for distribution, storage, use, or other consumption in this state, or furnishing any of the things or services taxable under this chapter, is liable for the tax imposed by this chapter.
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  2. (b) The tax shall be collected from the dealer as defined in § 67-6-102 and paid at the time and in the manner as provided for in this part.
  3. (c) The tax imposed in this part shall be at the rate provided by law of the retail sales price, as of the moment of sale, or of the purchase price, as of the moment of purchase, as the case may be, shall be collectible from all persons, as defined in § 67-6-102, engaged as dealers, as defined in § 67-6-102, in the sale at retail, the use, the consumption, the distribution, and the storage for use or consumption in this state, of tangible personal property, or in the furnishing of any of the things or services taxable under this chapter.
  4. (d) When an individual property owner utilizes a property management company to manage a vacation lodging owned by the individual property owner, the tax levied by this chapter on the sales price of such rental shall be imposed on, and shall be remitted by, the property management company to the commissioner. This provision shall not be construed to prohibit the property management company from collecting the tax from the consumer as provided for in § 67-6-502. For the purposes of this subsection (d), the terms “individual property owner,” “property management company,” and “vacation lodging” shall have the same meanings as in § 67-4-702.
  5. (e) A home service provider's liability for sales taxes due on mobile telecommunications services shall be determined in accordance with the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116-126). The home service provider's responsibility for determining the place of primary use of the mobile telecommunications services shall be controlled by federal law.
  6. (f) When a marketplace seller uses a marketplace facilitator to facilitate sales of tangible personal property or any of the things or services taxable under this chapter, the marketplace facilitator is liable for the taxes imposed by this chapter on the sales price of the tangible personal property or the things or services taxable under this chapter regardless of whether the marketplace seller has a sales tax certificate of registration or would have been required to collect sales or use taxes had the sale not been facilitated by the marketplace facilitator unless:
    1. (1) The marketplace facilitator made or facilitated total sales to consumers in this state of one hundred thousand dollars ($100,000) or less during the previous twelve-month period;
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    2. (2) The marketplace facilitator demonstrates, to the satisfaction of the commissioner, that substantially all of the marketplace sellers for whom the marketplace facilitator facilitates sales are registered dealers under this section, in which case the commissioner is authorized to waive the requirements of this subsection (f). If a waiver is granted pursuant to this subdivision (f)(2), the taxes levied under this chapter shall be collectible from the marketplace sellers; or
    3. (3) The marketplace facilitator and the marketplace seller contractually agree that the marketplace seller will collect and remit all applicable taxes under this chapter and the marketplace seller:
      1. (A) Has annual gross sales in the United States of over one billion dollars ($1,000,000,000), including the gross sales of any related entities, and in the case of franchised entities, including the combined sales of all franchisees of a single franchisor;
      2. (B) Provides evidence to the marketplace facilitator that it is registered in this state under § 67-6-601; and
      3. (C) Notifies the commissioner in a manner prescribed by the commissioner that the marketplace seller will collect and remit all applicable taxes under this chapter on its sales through the marketplace facilitator and is liable for failure to collect or remit applicable taxes on its sales.
  7. (g) A marketplace seller shall not be obligated to collect and remit or be liable for the taxes levied or imposed by this chapter on any retail sale for which a marketplace facilitator has collected and remitted such tax.
  8. (h) When a marketplace seller uses a marketplace facilitator to facilitate sales of tangible personal property or the things or services taxable under this chapter, the marketplace facilitator is not liable for the fee imposed under § 7-88-117, regardless of whether the marketplace seller is located within the district.
Backlinks (1)
History (30)
  • Acts 1947, ch. 3, §§ 3, 4
  • C. Supp. 1950, §§ 1248.52-1248.54 (Williams, §§ 1328.24, 1328.25)
  • Acts 1955, ch. 51, §§ 7-9, 11
  • 1955, ch. 242, § 6
  • 1957, ch. 307, § 1
  • 1959, ch. 15, § 2
  • 1963, ch. 38, §§ 3, 5
  • 1963, ch. 172, § 3
  • 1965, ch. 335, § 2
  • 1969, ch. 3, § 1
  • 1971, ch. 78, § 1
  • 1971, ch. 117, §§ 2, 3
  • 1972, ch. 653, § 1
  • 1973, ch. 239, § 1
  • 1974, ch. 675, § 1
  • 1975, ch. 316, § 1
  • 1976, ch. 466, §§ 1, 3
  • 1982, ch. 610, § 1
  • 1982, ch. 646, § 1
  • 1983, ch. 378, § 1
  • 1983, ch. 402, § 1
  • T.C.A. (orig. ed.), §§ 67-3003, 67-3016, 67-3018
  • Acts 2001, ch. 224, § 4
  • 2002, ch. 719, § 6
  • 2003, ch. 357, § 4
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 71, 104
  • 2020, ch. 646, § 8
  • 2020, ch. 759, §§ 6, 7.
§ 67-6-502. Tax paid by consumer.
  1. The tax imposed by this chapter shall be collected by the retailer from the consumer insofar as it can be done.
Backlinks (1)
History (9)
  • Acts 1947, ch. 3, § 5
  • C. Supp. 1950, § 1248.60 (Williams, § 1328.26)
  • Acts 1955, ch. 51, § 7
  • 1957, ch. 307, § 2
  • 1963, ch. 89, § 1
  • 1969, ch. 3, § 3
  • 1970, ch. 402, § 1
  • 1971, ch. 117, § 4
  • T.C.A. (orig. ed.), § 67-3020.
§ 67-6-503. Retailer to display price and tax separately.
  1. The commissioner may by regulation provide that the amount collected by the retailer from the consumer in reimbursement of the tax be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sale check or other proof of sale.
History (9)
  • Acts 1947, ch. 3, § 5
  • C. Supp. 1950, § 1248.60 (Williams, § 1328.26)
  • Acts 1955, ch. 51, § 7
  • 1957, ch. 307, § 2
  • 1963, ch. 89, § 1
  • 1969, ch. 3, § 3
  • 1970, ch. 402, § 1
  • 1971, ch. 117, § 4
  • T.C.A. (orig. ed.), § 67-3020.
§ 67-6-504. Returns and payment.
  1. (a) The taxes levied under this chapter shall be due and payable monthly, on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this chapter, it shall be the duty of all dealers on or before the twentieth day of each month to transmit to the commissioner, upon forms prescribed, prepared and furnished by the commissioner, returns, showing the gross sales, or purchases, as the case may be, arising from all sales or purchases taxable under this chapter during the preceding calendar month.
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  2. (b) At the time of transmitting the return required in this chapter to the commissioner, the dealer shall remit to the commissioner therewith the amount of tax due under the applicable provisions of this chapter, and failure to so remit such tax shall cause the tax to become delinquent.
  3. (c) Gross proceeds from rentals or leases of tangible personal property shall be reported and the tax shall be paid with respect thereto in accordance with such rules and regulations as the commissioner may prescribe.
  4. (d) Gross proceeds from the furnishing of things or services taxable under this chapter shall be reported and the tax shall be paid with respect thereto in the same manner as gross proceeds from the sale, rental or lease of tangible personal property and in accordance with such rules and regulations as the commissioner may prescribe.
  5. (e) Any dealer who is liable for the tax imposed by this chapter may round off all figures used on the sales and use tax return to the nearest dollar amount.
  6. (f) Notwithstanding any law to the contrary, when a taxpayer is required to remit payments electronically as set forth in § 67-1-703(b), 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. In extenuating circumstances, the commissioner is authorized to waive the electronic payment and filing requirements under this subsection (f) and under § 67-1-703(b) 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.
  7. (g) 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 subsection (f) a penalty, not to exceed five hundred dollars ($500), for each instance of filing a return by any other means. Such penalty shall be subject to waiver under § 67-1-803.
  8. (h) In computing the tax due or to be collected as the result of any transaction, the tax rate shall be the sum of the applicable state and local rate, if any, and the tax computation shall be carried to the third decimal place. Whenever the third decimal place is greater than four, the tax shall be rounded to the next whole cent.
  9. (i) A seller may elect to compute the tax due on a transaction on either an item or an invoice basis, and may apply the rounding rule provided for in subsection (h) to the aggregated state and local taxes. A seller shall not be required to collect the tax on a bracket system.
  10. (j)
    1. (1) Any dealer making sales subject to the tax imposed by this chapter may choose to collect and remit taxes as a Model 1 or Model 2 seller, subject to this subsection (j). For purposes of this subsection (j), tax includes any associated interest and penalty.
    2. (2)
      1. (A) A dealer choosing Model 1 shall contract with a certified service provider and shall permit the certified service provider to determine the tax due, collect the tax, file returns, and remit the tax to the appropriate state on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. A Model 1 seller's liability to this state for the tax levied by this chapter is limited to the tax due on its own purchases, the tax due on any of its sales, leases, or rentals made outside the system provided by the certified service provider, and the tax due in the event of fraud by the Model 1 seller. The certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if:
        1. (i) The Model 1 seller charged and collected an incorrect amount of sales or use tax in reliance on erroneous data made available for review but not discovered during the certification of the certified service provider's automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct the automated system. The commissioner may allot additional time upon a showing by the certified service provider of the need for additional time to correct the automated system; or
        2. (ii) An item or transaction is incorrectly classified as to its taxability within the certified service provider's automated system that was certified by this state; provided, that the taxability error is corrected within ten (10) days of the date of the notification by the commissioner to correct the automated system.
      2. (B) Beginning on the first day after the allotted period of time to correct the certified service provider's automated system, the certified service provider shall be liable for the tax, penalty and interest resulting from the failure to correct the certified service provider's automated system. This subdivision (j)(2) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or other classification within the certified service provider's automated system.
    3. (3) A dealer choosing Model 2 shall use a certified automated system to determine the tax due on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. Model 2 sellers shall not have any additional liability for state or local option taxes imposed by this chapter, if the Model 2 seller charged and collected or remitted an incorrect amount of sales or use tax in reliance on the certification of the certified automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct or notification by the provider of the certified automated system of the availability of updates to correct the certified automated system. Beginning on the eleventh day, the Model 2 seller shall be liable for the tax, penalty, and interest resulting from the failure to correct or update the certified automated system for errors resulting from reliance on the certification.
  11. (k) A certified service provider has, and is subject to, all of the rights, liabilities, duties and responsibilities imposed by this chapter as if it were the Model 1 seller for whom the certified service provider has agreed to perform all sales and use tax functions, except the Model 1 seller's obligation to remit tax on its own purchases.
  12. (l) The commissioner may enter into contracts with certified service providers for the collection and reporting of the tax imposed under this chapter. The commissioner may enter into the contracts in conjunction with other states.
  13. (m) When reporting the local sales and use tax levied under part 7 of this chapter, out of state dealers shall provide sufficient information as prescribed by the commissioner to indicate the incorporated municipality or unincorporated area of a county into which the sale is shipped or delivered, even if the local tax rates of the municipality and unincorporated area of the county are the same.
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  14. (n) Notwithstanding any law to the contrary, a dealer who owns and operates multiple micro markets in the state may file a single return for all sales or purchases made at micro markets within this state and report on a consolidated basis all sales and purchases made at micro markets within each local jurisdiction owned and operated by the dealer and taxable under this chapter.
Backlinks (2)
History (18)
  • Acts 1947, ch. 3, §§ 8, 10
  • C. Supp. 1950, §§ 1248.64, 1248.75 (Williams, §§ 1328.30, 1328.32)
  • modified
  • Acts 1955, ch. 51, § 12
  • T.C.A. (orig. ed.), §§ 67-3022 — 67-3024
  • Acts 1985, ch. 251, § 1
  • 2003, ch. 241, § 1
  • 2003, ch. 357, § 58
  • 2004, ch. 959, § 68
  • 2005, ch. 131, § 2
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 105, 106, 158, 159, 187
  • 2008, ch. 1106, § 32
  • 2009, ch. 530, §§ 35, 46
  • 2011, ch. 72, §§ 1, 12
  • 2012, ch. 657, §§ 7, 8
  • 2019, ch. 491, § 1
  • 2021, ch. 289, § 4.
§ 67-6-505. Alternative filing and payments.
  1. (a) The commissioner is specifically authorized to establish by rule periodic filing and payment dates, other than monthly, in those instances where the commissioner deems it to be in the best interests of the state to do so.
  2. (b) In cases where the commissioner determines, based on the best information available, that a taxpayer either has or may have an average monthly liability of five hundred dollars ($500) or more, the commissioner shall require advance estimated payments of tax in such amounts as the commissioner deems necessary to protect the state's interest, as a condition precedent to the payment and filing of tax returns on any basis other than monthly.
  3. (c)
    1. (1) Notwithstanding § 67-6-504(a), dealers whose sales and use tax liability for twelve (12) consecutive months has averaged one thousand dollars ($1,000) or less per month, adjusted every five (5) years to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers, are authorized to file monthly or quarterly.
    2. (2) Any sales and use tax liability amount that is adjusted for inflation in accordance with subdivision (c)(1) must be rounded to the nearest ten dollars ($10.00), and the first adjustment for inflation must commence on January 1, 2026.
History (12)
  • Acts 1947, ch. 3, § 8
  • 1949, ch. 245, § 3
  • C. Supp. 1950, § 1248.66 (Williams, § 1328.30)
  • Acts 1965, ch. 4, § 1
  • 1969, ch. 164, §§ 1, 2
  • 1970, ch. 360, § 1
  • 1977, ch. 64, § 1
  • 1980, ch. 885, § 13
  • 1983, ch. 238, §§ 1, 2
  • T.C.A. (orig. ed.), § 67-3026
  • Acts 1986, ch. 571, § 1
  • 2021, ch. 275, § 1.
§ 67-6-506. Extensions.
  1. The commissioner, under emergency or other extraordinary conditions, may extend for not to exceed thirty (30) days the time for making any returns required under this chapter. There shall, however, be added to the amount of tax due, interest, as provided by § 67-1-801, from the regular statutory delinquency date until the date paid. No penalty will be assessed when the return is made and the full amount of taxes paid on or before the extended delinquency date. Any return and payment made subsequent to the extended delinquency date shall, however, be subject to penalty and any other late charges without regard to the period allowed by the extension.
History (10)
  • Acts 1947, ch. 3, § 8
  • 1949, ch. 245, § 3
  • C. Supp. 1950, § 1248.66 (Williams, § 1328.30)
  • Acts 1965, ch. 4, § 1
  • 1969, ch. 164, §§ 1, 2
  • 1970, ch. 360, § 1
  • 1977, ch. 64, § 1
  • 1980, ch. 885, § 13
  • 1983, ch. 238, §§ 1, 2
  • T.C.A. (orig. ed.), § 67-3026.
§ 67-6-507. Credits to dealers — Credits to prevent multistate taxations — Credits for resale of telecommunication services.
  1. (a) This chapter does not apply with respect to the use, consumption, distribution or storage of tangible personal property, computer software, or computer software maintenance contracts for use or consumption in this state, upon which a like tax equal to or greater than the amount imposed by this chapter has been paid in another state, the proof of payment of such tax to be according to rules and regulations made by the commissioner. If the amount of tax paid in another state is not equal to or greater than the amount of tax imposed by this chapter, then the dealer shall pay to the commissioner an amount sufficient to make the tax paid in the other state and in this state equal to the amount imposed by this chapter.
  2. (b) If the dealer can show by reasonable proof that the dealer has paid any Tennessee sales or use tax to a vendor on personal property or taxable service that such dealer has subsequently sold without collecting tax on the resale of the personal property or taxable service, then the dealer shall be given credit for any such payment in computing any liability to the department for sales or use tax. Reasonable proof can be supplied by invoices and other records that the dealer may obtain from the vendors from which the dealer has made purchases.
  3. (c) In the event purchases are returned to the dealer by the purchaser or consumer after the tax imposed by this chapter has been collected, or charged to the account of the consumer or user, or, if the dealer actually refunds the purchase price and the sales tax thereon, to the purchaser or consumer for any other reason, the dealer shall be entitled to reimbursement of the amount of tax so collected or charged by the dealer, in the manner prescribed by the commissioner; and in case the tax has not been remitted by the dealer to the commissioner, the dealer may deduct the tax in submitting the dealer's return upon receipt of a signed statement of the dealer as to the gross amount of such refunds during the period covered by the signed statement, which period shall not be longer than ninety (90) days.
  4. (d)
    1. (1) In the event a dealer shall sell any article of personal property on a security agreement or other title retained instrument and the dealer shall thereafter be required to repossess or enforce the dealer's lien on the article or personal property at a time when the balance due on the unpaid purchase price shall exceed five hundred dollars ($500), the dealer shall be entitled to a credit on the sales tax that the dealer shall be required to collect and remit to the commissioner, in an amount equal to the difference between the amount of the sales tax collected and paid at the time of the original purchase and the amount of sales tax that would be owed on that portion of the purchase price that has actually been paid by the purchaser, plus the sales tax on the first five hundred dollars ($500) of the unpaid balance of the purchase price. The commissioner shall issue to the dealer an official credit memorandum equal to the net amount remitted by the dealer for such tax collected. Such memorandum shall be accepted by the commissioner at full face value from the dealer to whom it is issued, in the remittance for subsequent taxes accrued under this chapter; provided, that, in cases where a dealer has retired from business and has filed a final return, a refund of tax may be made, if it can be established to the satisfaction of the commissioner that the tax was not due.
    2. (2) The credit authorized by subdivision (d)(1) is available to a dealer principally selling used automobiles to retail purchasers if the dealer assigns the security agreement or other title retained instrument resulting from the sale to an affiliate finance company occupying the same physical headquarters location in this state as the dealer, and if:
      1. (A) The dealer collects from its retail purchasers a down payment averaging not more than five percent (5%) of the total used automobile sales price;
      2. (B) The dealer advances from its own funds the sales tax amount on each purchase and remits that tax amount to the commissioner;
      3. (C) The dealer assigns one hundred percent (100%) of its security agreements or other title retained instruments solely to the affiliate finance company in exchange for consideration that includes a sum intended to reimburse the dealer for sales tax amounts remitted to the commissioner;
      4. (D) The dealer remains obligated to and reimburses the finance company for those amounts attributable to sales taxes that the finance company is unable to collect from the retail purchaser;
      5. (E) The finance company has the right to repossess or enforce any lien as to the subject automobile; and
      6. (F) As a precondition to the dealer utilizing the credit authorized by subdivision (d)(1), the dealer first obtains the commissioner's agreement based on information satisfactory to the commissioner that the dealer and the assignee finance company are affiliates and satisfy the other conditions of this subdivision (d)(2).
    3. (3) As used in this subsection (d):
      1. (A) “Affiliate” has the same meaning as defined in § 48-103-102; and
      2. (B) “Down payment” means any payment the dealer collects in net trade-in allowance, cash, or a cash equivalent from a retail purchaser at the time of purchase or delivery of a used automobile, whether categorized as a payment, tax, fee, or otherwise.
  5. (e)
    1. (1) A deduction from taxable sales shall be allowed for bad debts arising from a sale on which the tax imposed by this chapter was paid.
    2. (2) Any deduction taken that is attributed to bad debts shall not include interest.
    3. (3) 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: financing charges or interest, sales or use taxes charged on the purchase price, uncollectible amounts on property that remain in the possession of the seller until the full purchase price is paid, expenses incurred in attempting to collect any debt, and repossessed property.
    4. (4) The deduction provided for by this subsection (e) 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 subsection (e), 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.
    5. (5) 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.
    6. (6) When the amount of bad debt exceeds the amount of taxable sales 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.
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    7. (7) Where filing responsibilities have been assumed by a certified service provider, the service provider may claim, on behalf of the seller, any bad debt allowance provided by this section; provided, that the service provider credits or refunds the full amount of any bad debt allowance or refund received to the seller.
    8. (8) For the purposes of reporting a payment received on a previously claimed bad debt, any payments made on a debt or account shall be applied first proportionally to the taxable price of the property or service and the sales tax thereon, and then to interest, service charges, and any other charges.
    9. (9) In situations where the books and records of the party claiming the bad debt allowance support an allocation of the bad debts among other states, the allocation shall be permitted.
  6. (f) A dealer or common carrier who has made sales or purchases subject to the reduced rate provided in part 2 of this chapter, and who is subsequently found to be liable for tax at the full rate, shall be given credit for any tax previously remitted on such sales or purchases.
  7. (g) A credit shall be granted in the manner provided under subsection (a) for sales tax properly paid to other states on interstate telecommunication charges also taxed by this state, unless the charge is made to a service address in Tennessee.
  8. (h)
    1. (1) A hotel, motel, college, university or hospital may take as a credit against any liability to the department for sales or use tax, that amount of sales tax paid to a vendor of telecommunication services, when such hotel, motel, college, university or hospital has subsequently resold such service and collected the sales tax thereon.
    2. (2) The credit shall be limited to tax paid on the portion of telecommunication services resold.
    3. (3) The credit may only be taken if such hotel, motel, college, university or hospital maintains accurate records that show the portion of telecommunication services used and the portion resold.
  9. (i) There shall be a credit of one hundred percent (100%) of the sales or use tax paid with respect to purchases of equipment by automobile body paint shops in order to comply with emission control standards imposed by governmental agencies. Applicants shall provide proof as required by the commissioner that the equipment was necessary in order to comply with emission control standards imposed by federal, state or local regulation.
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  10. (j) There shall be a credit of fifty percent (50%) of the sales or use tax paid with respect to purchases of replacement equipment, as determined by the commissioner, when such equipment is purchased by dry cleaners in order to comply with emission control standards imposed by governmental agencies. Applicants shall provide proof as required by the commissioner that the equipment was necessary in order to comply with emission control standards imposed by federal, state or local regulation.
Backlinks (1)
History (26)
  • Acts 1947, ch. 3, §§ 4, 8, 13
  • C. Supp. 1950, §§ 1248.57, 1248.67, 1248.82 (Williams, §§ 1328.25, 1328.30, 1328.35)
  • Acts 1957, ch. 63, § 1
  • 1965, ch. 285, § 1
  • 1965, ch. 358, § 1
  • 1967, ch. 117, § 2
  • 1974, ch. 798, § 1
  • 1983, ch. 46, § 1
  • T.C.A. (orig. ed.), §§ 67-3008, 67-3028, 67-3029
  • Acts 1984 (Ex. Sess.), ch. 13, § 6
  • 1984, ch. 581, § 1
  • 1985, ch. 423, §§ 1, 2
  • 1987, ch. 428, § 5
  • 1989, ch. 312, § 8
  • 1989, ch. 430, § 6
  • 1990, ch. 1088, § 1
  • 1991, ch. 38, § 1
  • 1992, ch. 873, §§ 1, 2
  • 1993, ch. 68, § 3
  • 1995, ch. 37, §§ 1, 2
  • 2003, ch. 357, § 59
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 107
  • 2011, ch. 467, § 6
  • 2023, ch. 467, § 1.
§ 67-6-508. Credits to purchaser.
  1. The most recent bona fide purchaser for value of a motor vehicle that is seized by an authorized law enforcement official under title 55, chapter 5, or any other similar law respecting stolen motor vehicles, shall, if such vehicle is not ultimately returned to the purchaser, be entitled to a full refund of any Tennessee use tax, if the purchaser paid such tax to the appropriate governmental official pursuant to § 55-3-105. Any claim for refund under this section shall be filed with the commissioner, together with satisfactory proof that the use tax has been properly paid to the commissioner, in the manner provided in § 67-1-707.
History (2)
  • Acts 1983, ch. 46, § 1
  • T.C.A., § 67-3028.
§ 67-6-509. Deduction for dealer's accounting costs.
  1. (a) An out-of-state person making sales in Tennessee, who is not required to register for sales and use tax under applicable law, but who nevertheless voluntarily registers to collect and remit use tax on items of tangible personal property sold to Tennessee customers, shall be allowed, for the purpose of compensating such person in accounting for and remitting the tax, a deduction against taxes due, reported and paid to the department as follows:
    1. (1) Two percent (2%) of the first two thousand five hundred dollars ($2,500) on each report; and
    2. (2) One and fifteen one-hundredths percent (1.15%) of amounts over two thousand five hundred dollars ($2,500) on each report.
  2. (b) No deduction from tax shall be allowed if any such report or payment of tax is delinquent.
  3. (c) Notwithstanding subsection (a), a Model 1 seller under the Streamlined Sales and Use Tax Agreement shall not be entitled to the vendor's compensation described in subsection (a).
  4. (d)
    1. (1) In addition to any compensation that may be provided under subsection (a), the commissioner is authorized to provide the monetary allowances required to be provided by the state to certified service providers and volunteer sellers pursuant to Article VI of the Streamlined Sales and Use Tax Agreement as it may be amended from time to time.
    2. (2) The monetary allowances shall be in the form of vendor's compensation allowances that certified service providers or volunteer sellers are permitted to retain from taxes due pursuant to this chapter that are to be collected and remitted to this state on sales of the volunteer seller in this state.
    3. (3) The details of the monetary allowances shall, in the case of a Model 1 seller, be outlined in each contract between the Streamlined Sales and Use Tax Agreement governing board and the certified service provider. Vendor's compensation rates on taxes due that may be retained by a volunteer seller that is a Model 2 seller and all other volunteer sellers that are not Model 2 sellers shall be determined by the commissioner in accordance with Article VI of the Streamlined Sales and Use Tax Agreement and the commissioner shall cause the rates and their effective dates to be filed with the secretary of state for publication in the Tennessee Administrative Register.
    4. (4) Vendor's compensation rates published in the Tennessee Administrative Register shall remain in effect until new rates determined by the commissioner and published in the Tennessee Administrative Register become effective.
  5. (e) For purposes of subsection (d), “volunteer seller” means a seller that registered in this state through the Streamlined Central Registration System for sales and use tax purposes, does not have a fixed business location in this state, and otherwise meets the definition of volunteer seller as defined by the Streamlined Sales and Use Tax governing board and “taxes due” means sales or use tax revenue generated for the state by a volunteer seller pursuant to this chapter.
History (15)
  • Acts 1947, ch. 3, § 8
  • C. Supp. 1950, § 1248.65 (Williams, § 1328.30)
  • Acts 1980, ch. 594, § 1
  • 1980, ch. 871, § 3
  • T.C.A. (orig. ed.), § 67-3021
  • Acts 1984 (Ex. Sess.), ch. 3, § 1
  • 1984, ch. 832, § 14
  • 1992, ch. 529, § 13
  • 1993, ch. 501, § 1
  • 1999, ch. 412, § 1
  • 2000, ch. 983, § 7
  • 2004, ch. 959, § 20
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 108
  • 2020, ch. 759, § 8.
§ 67-6-510. Computation on trade-ins.
  1. (a) Where used articles are taken in trade, or in a series of trades, as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference, that is, the price of the new or used article sold, less the credit for the used article taken in trade.
  2. (b)
    1. (1) A motor vehicle dealer having previously titled and registered a motor vehicle in the dealership name for business use, and having paid the appropriate sales or use tax on such vehicle, shall be allowed a trade-in credit equal to the trade-in value of such vehicle against the purchase price of a new or used vehicle purchased or extracted from such dealer's inventory to be titled and registered as a replacement vehicle for business use, and the sales or use tax shall be paid on the net difference.
    2. (2) The trade-in value authorized by this subsection (b) shall be equal to the trade-in amount for the specific make and model as established by the NADA Official Used Car Guide, Southeastern Edition.
    3. (3) It is the legislative intent that a dealer may purchase a vehicle from the dealer's dealership's inventory and receive the same trade-in credit as if the dealer purchased the vehicle from the inventory of another dealer.
Backlinks (1)
History (4)
  • Acts 1947, ch. 3, subsec. 6
  • mod. C. Supp. 1950, § 1248.62 (Williams, § 1328.28)
  • T.C.A. (orig. ed.), § 67-3015
  • Acts 1995, ch. 245, § 1.
§ 67-6-511. Inclusion of lessee's sales in dealer's return.
  1. When any person to whom a certificate of registration has been issued under this chapter leases certain departments in such person's place of business to other persons for the purpose of making sales at retail of tangible personal property or taxable services to consumers, and keeps the records and makes and accounts for the collection of the leased department's sales, the person may include the sales made by such leased departments in the person's own tax return and remit the tax due thereon. In such instances, a lessor shall be deemed to be an agent of the lessee and the lessee shall not be relieved of any liabilities under this chapter if the lessor defaults therein.
History (12)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A (orig. ed.), § 67-3041.
§ 67-6-512. Form of payment.
  1. (a) All taxes, interest, and penalties imposed under this chapter shall be paid to the commissioner at Nashville in the form of remittance required by the commissioner.
  2. (b) The use of tokens is forbidden and prohibited.
History (3)
  • Acts 1947, ch. 3, §§ 10, 14
  • C. Supp. 1950, §§ 1248.76, 1248.86 (Williams, §§ 1328.32, 1328.36)
  • T.C.A. (orig. ed.), §§ 67-3027, 67-3046.
§ 67-6-513. Settlement on quitting business.
  1. (a) If any dealer liable for any tax, interest or penalty levied hereunder shall sell out such dealer's business or stock of goods, or shall quit the business, the dealer shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business.
  2. (b)
    1. (1) The dealer's successor, successors, or assigns, if any, shall withhold sufficient amounts of the purchase money to cover the amount of such taxes, interest and penalties due and unpaid until the former owner shall produce a receipt from the commissioner showing that they have been paid, or a certificate stating that no taxes, interest, or penalties are due. If the purchaser of a business or stock of goods fails to withhold the purchase money as above provided, such 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. (2) The amount of the purchaser's liability for payment of such 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 (b), 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. (3) Such purchaser shall have no liability for such taxes, interest or penalties, if the department releases the former owner, owners or assigns from the original liability for such taxes, interest or penalty through payment of the amount due, and settlement with the department.
  3. (c) A purchaser who, in good faith and without knowledge of any false statement therein, receives from the seller at the time of the purchase an affidavit stating under oath or the penalties of perjury the amount of such 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 such 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.
Backlinks (2)
History (5)
  • Acts 1947, ch. 3, § 7
  • C. Supp. 1950, § 1248.63 (Williams, § 1328.29)
  • T.C.A. (orig. ed.), § 67-3025
  • Acts 1986, ch. 598, § 13
  • 1992, ch. 942, § 1.
§ 67-6-514. Excess revenue paid over to commissioner.
  1. When the tax collected for any period is in excess of that provided by law, the total tax collected shall be paid over to the commissioner, less any compensation allowed to the dealer. This provision shall be construed with other provisions of this chapter and given effect so as to result in the payment to the commissioner of the total tax collected if in excess of that provided by law.
History (9)
  • Acts 1947, ch. 3, § 5
  • C. Supp. 1950, § 1248.60 (Williams, § 1328.26)
  • Acts 1955, ch. 51, § 7
  • 1957, ch. 307, § 2
  • 1963, ch. 89, § 1
  • 1969, ch. 3, § 3
  • 1970, ch. 402, § 1
  • 1971, ch. 117, § 4
  • T.C.A. (orig. ed.), § 67-3020.
§ 67-6-515. Collection of taxes by marketplace facilitator — Reports — Audit — Relief from liability.
  1. (a) A marketplace facilitator that collects and remits the taxes imposed by this chapter shall collect taxes on sales through its marketplace based upon the address to which the tangible personal property or things taxable under this chapter are shipped; provided, however, that taxes collected by the marketplace facilitator on services sold through its marketplace shall be collected as otherwise provided in this chapter.
  2. (b) A marketplace facilitator shall report the sales and use taxes on sales through its marketplace separately from any sales and use taxes collected on sales made directly by the marketplace facilitator or affiliates of the marketplace facilitator.
  3. (c) The commissioner may, in the commissioner's sole discretion, audit a marketplace facilitator for sales made by marketplace sellers and facilitated by the marketplace facilitator, except with respect to transactions that are subject to § 67-6-501(f)(1)-(3). The commissioner shall not audit or otherwise assess taxes against marketplace sellers for sales facilitated by a marketplace facilitator except to the extent the marketplace facilitator seeks relief as provided below or with respect to transactions that are subject to § 67-6-501(f)(1)-(3).
  4. (d) A marketplace facilitator shall be relieved of liability for failure to collect and remit the correct amount of taxes to the extent that the error was due to incorrect or insufficient information given to the marketplace facilitator by the marketplace seller if the marketplace facilitator demonstrates that it made a reasonable effort to obtain correct and sufficient information from the marketplace seller. This subsection (d) shall not apply if the marketplace facilitator and the marketplace seller are affiliates.
  5. (e) No class action lawsuit may be brought against a marketplace facilitator in this state on behalf of purchasers relating to overcollection of sales or use taxes by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim.
  6. (f) Nothing in this section affects the obligation of any purchaser to remit sales or use taxes for any taxable transaction for which a marketplace facilitator or seller does not collect and remit sales and use taxes.
History (1)
  • Acts 2020, ch. 646, § 9.
§ 67-6-516. Delinquencies and other violations — Penalties — Grace period.
  1. When an examination of a dealer's books and records indicates that the dealer is deficient in paying the proper tax due for a month, but has paid more tax than is actually due for another month, or is deficient in paying the proper tax on one (1) or more transactions within a month, but has paid more tax than is actually due on other transactions during the same month, or has erroneously paid tax to another dealer, the overpayment or erroneous payment shall be applied to the deficiency before computing any interest and penalty due as a result of such examination, the earliest overpayments offsetting the earliest underpayments for this purpose, and the penalty, if any, being computed on the amounts of underpayments not offset by overpayments.
Backlinks (2)
History (12)
  • Acts 1947, ch. 3, § 8
  • 1949, ch. 245, § 3
  • C. Supp. 1950, § 1248.66 (Williams, § 1328.30)
  • Acts 1965, ch. 4, § 1
  • 1969, ch. 164, §§ 1, 2
  • 1970, ch. 360, § 1
  • 1977, ch. 64, § 1
  • 1980, ch. 885, § 13
  • 1983, ch. 238, §§ 1, 2
  • T.C.A. (orig. ed.), § 67-3026
  • Acts 1985, ch. 396, § 5
  • 1988, ch. 526, § 37.
§ 67-6-517. Delinquency — Determination and collection of tax.
  1. (a) In the event any dealer fails to make a report and pay the tax as provided by this chapter, or in case any dealer makes a grossly incorrect report, or a report that is false or fraudulent, it shall be the duty of the commissioner to make an estimate for the taxable period of retail sales of such dealer, or of the gross proceeds for rentals or leases of tangible personal property by the dealer, estimating the purchase price of all articles of tangible personal property imported by the dealer for use or consumption or distribution or storage to be used or consumed in this state, and assess and collect the tax and interest, plus penalty, if such have accrued, on the basis of such assessment, which shall be considered prima facie correct, and the burden to show the contrary shall rest upon the dealer.
  2. (b) If any dealer subject to make and file a return required by any provision of this chapter fails to render such return within the time required or renders a return which is false or fraudulent in that it contains statements that differ from the true gross sales, purchases, leases or rentals taxable under this chapter, or otherwise fails to comply with this chapter for the taxable period for which the return is made, the commissioner shall give the dealer ten (10) days' notice in writing requiring the dealer to appear before the commissioner or the commissioner's assistant with such books, records and papers as the commissioner may require relating to the business of the dealer for such taxable period; and the commissioner may require the dealer or the agents and employees of such dealer to give testimony or to answer interrogatories under oath administered by the commissioner or the commissioner's assistants respecting the sale at retail, the use, consumption, or distribution, or storage for use or consumption in this state or lease or rental of tangible personal property subject to tax or the failure to make report thereof as provided in this chapter.
  3. (c) If any dealer fails to make any such return or refuses to permit an examination of such books, records or papers, or to appear and answer questions within the scope of such investigation relating to the sale, use, consumption, distribution, storage, lease or rental of tangible personal property, the commissioner is authorized to make an assessment based upon such information as may be available to the commissioner and to issue a distress warrant for the collection of any such taxes, interest or penalties found to be due. Any such assessment shall be deemed prima facie correct.
  4. (d) In the event the dealer has imported the tangible personal property and fails to produce an invoice showing the purchase price of the articles as defined in this chapter, which are subject to tax, or the invoice does not reflect the true or actual purchase price as defined in this chapter, then the commissioner shall ascertain, in any manner feasible, the true purchase price, and assess and collect the tax with interest plus penalty, if such have accrued on the true purchase price as assessed by the commissioner; the assessment so made shall be considered prima facie correct, and the duty shall be on the dealer to show the contrary.
  5. (e) In the case of the lease or rental of tangible personal property, if the consideration given or reported by the dealer does not, in the judgment of the commissioner, represent the true or actual consideration, then the commissioner is authorized to fix the same and collect the tax thereon in the same manner as provided in this section, with interest plus penalty, if such have accrued.
History (8)
  • Acts 1947, ch. 3, §§ 8, 10
  • C. Supp. 1950, §§ 1248.67, 1248.69, 1248.70, 1248.74 (Williams, §§ 1328.30, 1328.32)
  • Acts 1965, ch. 285, § 1
  • T.C.A. (orig. ed.), §§ 67-3029 — 67-3032
  • Acts 2003, ch. 357, § 4
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 71.
§ 67-6-518. Collection of tax from dealer's debtors.
  1. In the event any dealer is delinquent in the payment of the tax provided in this chapter, the commissioner may give notice of the amount of such delinquency by registered mail to all persons having in their possession or under their control any credits or other personal property belonging to such dealer, or owing any debts to such dealer at the time of receipt by them of such notice, and thereafter any person so notified shall neither transfer nor make any other disposition of such credits, other personal property, or debts, until the commissioner shall have consented to a transfer or disposition, or until thirty (30) days shall have elapsed from and after the receipt of such notice. All persons so notified must, within five (5) days after receipt of such notice, advise the commissioner of any and all such credits, other personal property, or debts, in their possession, under their control, or owing by them, as the case may be.
Backlinks (1)
History (4)
  • Acts 1947, ch. 3, § 7
  • C. Supp. 1950, § 1248.63 (Williams, § 1328.29)
  • T.C.A. (orig. ed.), § 67-3025
  • Acts 1986, ch. 598, § 14.
§ 67-6-519. Legislative intent to impose taxes levied by chapter to fullest extent constitutionally permitted.
  1. It is the legislative intent to impose the taxes levied by this chapter to the fullest extent allowed under the constitutions of the United States and the state of Tennessee.
History (1)
  • Acts 2015, ch. 514, § 26.
§ 67-6-520. Presumption that dealer has agent operating in state and has substantial nexus with state — Criteria — Rebuttal of presumption.
  1. (a) A dealer is presumed to have a representative, agent, salesperson, canvasser, or solicitor operating in this state for the purpose of making sales and is presumed to have a substantial nexus with this state if:
    1. (1) The dealer enters into an agreement or contract with one (1) or more persons located in this state under which the person, for a commission or other consideration, directly or indirectly refers potential customers to the dealer, whether by a link on an internet website or any other means; and
    2. (2) The dealer's cumulative gross receipts from retail sales made by the dealer to customers in this state who are referred to the dealer by all residents with this type of an agreement with the dealer exceed ten thousand dollars ($10,000) during the preceding twelve (12) months.
  2. (b) The presumption in subsection (a) may be rebutted only by clear and convincing evidence that the person with whom the dealer has an agreement or contract did not conduct any activities in this state that would substantially contribute to the dealer's ability to establish and maintain a market in this state during the preceding twelve (12) months.
History (1)
  • Acts 2015, ch. 514, § 27.
§ 67-6-521. Compensation for costs incurred by dealers in accounting for and remitting sales and use taxes to state.
  1. (a) This section applies to dealers who are required to register for and collect and remit the sales and use tax imposed on items of tangible personal property under this chapter when such items are sold during the period of time beginning July 1, 2022, and ending June 30, 2023.
  2. (b) For purposes of compensating a dealer in accounting for and remitting the tax imposed by this chapter, a dealer is allowed a deduction of tax due, reported, and remitted to the department of revenue as follows:
    1. (1) The deduction must be applied only to the state portion of the sales and use tax levied under part 2 of this chapter;
    2. (2) Two percent (2%) of the first two thousand five hundred dollars ($2,500) on each report; and
    3. (3) One and fifteen one-hundredths percent (1.15%) of the amount over two thousand five hundred dollars ($2,500) on each report.
  3. (c) A deduction from tax due is not allowed if any such report or remittance of tax is delinquent.
  4. (d) Notwithstanding subsection (b), the deduction provided by this section is limited to a maximum of twenty-five dollars ($25.00) per report.
  5. (e) Notwithstanding another law to the contrary, an amount equal to the excess of the amount calculated by the formula set forth in subsection (b), over and above the twenty-five-dollar limit imposed by subsection (d), must be retained by the state and deposited in the state's general fund.
History (1)
  • Acts 2022, ch. 1082, § 1.
§ 67-6-522. Delinquent dealers.
  1. (a) Every dealer licensed to do business in this state who becomes delinquent for more than ninety (90) days in the payment of any sales or use taxes due the state shall, upon notice from the commissioner, post with the commissioner cash or an indemnity bond with good and solvent surety, approved by the commissioner, in an amount equal to three (3) times the average monthly sales tax liability or use tax liability of the dealer, conditioned upon the proper payment of retail sales taxes or use taxes for which such dealer may become liable.
  2. (b) In the event that any dealer who may become subject to this section fails to post the cash or surety bond, the dealer shall be subject to revocation of any one (1) or more of the certificates of registration held by the dealer as provided by part 6 of this chapter.
  3. (c) The bond provided for in this section shall run for such time as may be determined by the commissioner.
History (13)
  • Acts 1947, ch. 3, §§ 5, 11
  • C. Supp. 1950, §§ 1248.60, 1248.78 (Williams, §§ 1328.26, 1328.33)
  • Acts 1955, ch. 51, § 7
  • 1955, ch. 242, § 5
  • 1957, ch. 307, § 2
  • impl. am. Acts 1959, ch. 9, § 14
  • Acts 1963, ch. 89, § 1
  • 1969, ch. 3, § 3
  • 1970, ch. 402, § 1
  • 1971, ch. 117, § 4
  • 1971, ch. 285, § 2
  • T.C.A. (orig. ed.), §§ 67-3020, 67-3033
  • Acts 1984, ch. 832, §§ 13, 36.
§ 67-6-523. Records.
  1. (a) It is the duty of every dealer required to make a report and pay any tax under this chapter to keep and preserve suitable records of the sales or purchases, as the case may be, taxable under this chapter, and such other books of account as may be necessary to determine the amount of tax due hereunder, and other information as may be required by the commissioner, and it is the duty of every such dealer, moreover, to keep and preserve, for a period of three (3) years from December 31 of the year in which the associated return required by this chapter was filed, all invoices and other records of goods, wares and merchandise, or other subjects of taxation under this chapter. All such books, invoices, and other records shall be open to examination at all reasonable hours to the commissioner or any authorized agents of the commissioner.
  2. (b) Each dealer, as defined in this chapter, shall secure, maintain, and keep for a period of three (3) years from December 31 of the year in which the associated return required by this chapter was filed a complete record of tangible personal property received, used, sold at retail, distributed or stored, leased, or rented within this state by the dealer, together with invoices, bills of lading, and other pertinent records and papers as may be required by the commissioner for the reasonable administration of this chapter. All such records shall be open for inspection to the commissioner at all reasonable hours.
  3. (c) In order to aid in the administration and enforcement of this chapter, and collect all of the tax imposed by this chapter, all wholesale dealers and jobbers in this state are required to keep a record of all sales of tangible personal property made in this state, whether such sales be for cash or on terms of credit. The record required to be kept by all wholesale dealers and jobbers shall contain and include the name and address of the purchaser, the date of the purchase, the article purchased, and the price at which the article is sold to the purchaser. These records shall be kept for a period of three (3) years from December 31 of the year in which the associated return required by this chapter was filed and shall be open to the inspection of the commissioner, or the duly authorized assistants of the commissioner, at all reasonable hours.
  4. (d) For the purpose of enforcing the collection of the tax levied by this chapter, the commissioner is specifically authorized and empowered to examine at all reasonable hours the books, records, and other documents of all transportation companies, agencies or firms that conduct their business by truck, rail, water, airplane, or otherwise, in order to determine what dealers, as provided in this chapter, are importing or are otherwise shipping articles of tangible personal property which are liable for the tax. The commissioner has the right to proceed in the chancery court for a mandatory injunction or other appropriate remedy to enforce the right, as granted by this section, to an examination of the books and records of transportation companies.
  5. (e) A violation of this section is a Class C misdemeanor.
Backlinks (2)
History (7)
  • Acts 1947, ch. 3, §§ 8, 9
  • C. Supp. 1950, §§ 1248.68, 1248.71-1248.73 (Williams, §§ 1328.30, 1328.31)
  • Acts 1955, ch. 242, §§ 2-4
  • T.C.A. (orig. ed.), §§ 67-3034 — 67-3037
  • Acts 1986, ch. 598, §§ 15-17
  • 1989, ch. 591, § 113
  • 2005, ch. 499, § 17.
§ 67-6-524. Registration of dealers.
  1. (a) Dealers with a physical presence in this state shall register with the department to collect and remit tax in accordance with this chapter.
  2. (b) Dealers with no physical presence in this state shall register with the department to collect and remit tax in accordance with this chapter if the dealer engages in the regular or systematic solicitation of consumers in this state through any means and made sales that exceeded one hundred thousand dollars ($100,000) to consumers in this state during the previous twelve-month period. Such dealers shall begin to collect and remit the tax by the first day of the third calendar month following the month in which this threshold was met; provided, however, that this subsection (b) does not require a dealer to collect the tax for sales made before October 1, 2020.
    Backlinks (2)
Backlinks (1)
History (1)
  • Acts 2020, ch. 759, § 5.
§ 67-6-525. Findings related to sales threshold standard.
  1. The general assembly finds that the sales threshold standard required by § 67-6-524(b) matches the benchmark established by South Dakota that was analyzed and found to support it being upheld as constitutional by the supreme court of the United States in South Dakota v. Wayfair, 138 S.Ct. 2080 (2018).
History (1)
  • Acts 2020, ch. 759, § 5.
§ 67-6-526. Effect on substantial nexus criteria.
  1. Section 67-6-524 does not change the substantial nexus criteria for determining when a person is required to pay the business tax under § 67-4-717, excise tax under § 67-4-2007, or franchise tax under § 67-4-2105.
History (1)
  • Acts 2020, ch. 759, § 5.
§ 67-6-528. Common carriers seeking reduced rate — Applications — Certificates.
  1. (a) Common carriers seeking to make purchases subject to the reduced rate provided in part 2 of this chapter shall apply to the commissioner for a certificate. This application shall be made upon forms provided by the commissioner and shall require information deemed necessary by the commissioner to establish that the applicant is a common carrier making purchases of tangible personal property for use outside this state. The certificate may be revoked by the commissioner at any time, if the commissioner finds that the holder no longer meets the conditions precedent for the reduced rate.
  2. (b) Common carriers making purchases subject to the reduced rate provided in part 2 of this chapter shall keep records of all such purchases, establishing to the satisfaction of the commissioner that items purchased were not used in Tennessee, but were removed from this state for use and consumption outside this state.
Backlinks (1)
History (7)
  • Acts 1987, ch. 428, § 4
  • 2003, ch. 357, § 60
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 160
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1.
§ 67-6-529. Exemption certificate for railroad track materials and locomotive radiators.
  1. (a) Railroads seeking to make purchases of railroad track materials or locomotive radiators subject to the exemption provided in § 67-6-340 shall apply to the commissioner for a certificate. This application shall be made upon forms provided by the commissioner, and shall require information deemed necessary by the commissioner to establish that the applicant is a railroad making purchases of railroad track materials or locomotive radiators for use outside this state. The certificate may be revoked by the commissioner at any time, if the commissioner finds that the holder no longer meets the conditions precedent for the exemption.
  2. (b) Railroads making purchases subject to the exemption provided in part 3 of this chapter shall keep records of all such purchases, establishing to the satisfaction of the commissioner that railroad track materials or locomotive radiators purchased were not used in Tennessee, but were removed from this state for use and consumption outside this state.
Backlinks (1)
History (1)
  • Acts 1988, ch. 628, § 2.
§ 67-6-531. Contracts for collection of sales and use taxes.
  1. The commissioner may enter into agreements with persons, who are not otherwise liable to collect and remit sales or use taxes, for the collection of state and local sales or use taxes due on their sales of tangible personal property or taxable services to customers in Tennessee. These agreements shall be made on terms determined by the commissioner to be in the best interest of the state.
History (1)
  • Acts 1997, ch. 373, § 1.
§ 67-6-532. Electronic database for home service provider — Errors or omissions in database — Alternative if database not provided — Services subject to federal sourcing rules — Remedies available to customers.
  1. (a) The commissioner may provide a home service provider with an electronic database that meets the requirements of 4 U.S.C. § 119. If such database is provided by the commissioner, a home service provider shall be held harmless from any tax, charge, or fee liability that otherwise would be due solely as a result of any errors or omissions in such database, subject to 4 U.S.C. §§ 119 and 121. If no database is provided by the commissioner, a home service provider may use an enhanced zip code and shall be held harmless from any tax, charge, or fee liability that otherwise would be due solely as a result of its reliance on such enhanced zip code, subject to 4 U.S.C. §§ 120 and 121.
  2. (b) Taxable mobile telecommunications services that are aggregated with, and not separately stated from, mobile telecommunications services not subject to taxation shall be subject to 4 U.S.C. § 123(b) and (c).
  3. (c)
    1. (1) In the case of mobile telecommunications services subject to the federal sourcing rules, if a customer believes that an amount of tax, charge, or fee or an assignment of place of primary use or taxing jurisdiction included on a billing is erroneous, the customer shall notify the home service provider in writing. The customer shall include in this written notification the street address for the customer's place of primary use, the account name and number for which the customer seeks a correction, a description of the error asserted by the customer, and any other information that the home service provider reasonably requires to process the request. Within sixty (60) days of receiving a notice under this section, the home service provider shall review its records to determine the customer's taxing jurisdiction. If this review shows that the amount of tax, charge, or fee or assignment of place of primary use or taxing jurisdiction is in error, the home service provider shall correct the error and refund or credit the amount of tax, charge, or fee erroneously collected from the customer for a period of up to two (2) years; provided, however, that this determination is not binding on the department of revenue. If this review shows that the amount of tax, charge, or fee or assignment of place of primary use or taxing jurisdiction is correct, the home service provider shall provide a written explanation to the customer.
    2. (2) The procedures in this section shall be the first course of remedy available to customers seeking correction of assignment of place of primary use or taxing jurisdiction, or a refund of or other compensation for taxes, charges, or fees erroneously collected by the home service provider, and no cause of action based upon a dispute arising from such taxes, charges, or fees shall accrue until a customer has reasonably exercised the rights and procedures set forth in this section.
    3. (3) The procedures set forth in this section shall apply to taxes levied under this chapter and to charges levied under former § 7-86-108 [repealed], and to any other subsequent taxes, fees, or charges levied on charges for mobile telecommunications services subject to federal sourcing rules under 4 U.S.C. § 116 et seq.
    4. (4) This section shall not be construed to impose any duty or obligation upon the department of revenue or any other state agency to promulgate rules or take any other administrative action and shall not be construed to provide for any cause of action or other remedy against the department of revenue beyond those provided in chapter 1, part 18 of this title.
  4. (d) Any term appearing in this section, if defined in § 67-6-905, shall have the same meaning as in that section.
History (2)
  • Acts 2002, ch. 719, § 8
  • 2004, ch. 782, § 16.
§ 67-6-533. Liability of sellers and certified service providers when relying on erroneous data.
  1. (a) Dealers and certified service providers have no liability to the state or local jurisdictions for having charged and collected the incorrect amount of sales or use tax resulting from the seller or certified service provider relying on erroneous data provided by the commissioner on tax rates, boundaries, or taxing jurisdiction assignments.
  2. (b) Purchasers shall have no liability to the state or local jurisdictions where the purchaser or purchaser's seller or certified service provider relied on erroneous tax rate or local jurisdiction boundary or jurisdiction assignment data.
  3. (c) The erroneous tax rate or local jurisdiction boundary or jurisdiction assignment data must be the most recent published information utilized by the taxpayer or certified service provider that is effective on the date of the transaction. Taxpayers and certified service providers shall provide records evidencing reliance on the erroneous information.
History (4)
  • Acts 2003, ch. 357, § 61
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 110.
§ 67-6-534. Seller's duty to determine nine-digit zip code.
  1. Notwithstanding § 67-6-806(a), if a nine-digit zip code designation is not available for a street address, or if a seller is unable to determine the nine-digit zip code designation of a purchaser after exercising due diligence to determine the designation, the seller may apply the rate for the five-digit zip code area. For the purposes of this section, there is a rebuttable presumption that a seller has exercised due diligence if the seller has attempted to determine the nine-digit zip code designation by utilizing software approved by the member states to the Streamlined Sales and Use Tax Agreement that makes this designation from the street address and the five-digit zip code of the purchaser. This section does not apply when the product purchased is received by the purchaser at the business location of the seller.
History (4)
  • Acts 2003, ch. 357, § 61
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 111.
§ 67-6-535. Reciprocal agreements with other states.
  1. The department may enter into a reciprocal agreement with the comparable department of another state to furnish records concerning purchases made by citizens of the other state from a dealer in this state where the dealer collects neither a sales nor a use tax on the sales; provided, however, that the other state agrees to furnish the same records to this state and each sale is in excess of five hundred dollars ($500). All dealers in this state making sales to purchasers in another state where no sales or use tax is collected shall furnish the department copies of all the invoices or suitable substitutes for sales in excess of five hundred dollars ($500) upon request of the department; provided, however, that the department notifies the dealers of the existence of a reciprocal agreement.
History (4)
  • Acts 2003, ch. 357, § 61
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 112.
§ 67-6-536. Returns submitted by Model 1 and 2 sellers — Informational return — Electronic payments — Due dates.
  1. (a) Model 1 or 2 sellers with business locations in this state shall submit their returns in a format required by the commissioner. Model 1 or 2 sellers that do not have business locations in this state may submit their returns in a format adopted by the member states to the Streamlined Sales and Use Tax Agreement; provided, however, that all of the returns shall be filed electronically.
  2. (b) Notwithstanding any law to the contrary, the commissioner is authorized to require Model 1 or 2 sellers that submit returns in a format adopted by the member states to the Streamlined Sales and Use Tax Agreement to submit once a year an informational return as permitted by the member states to the Streamlined Sales and Use Tax Agreement.
  3. (c) Notwithstanding the provisions of § 67-1-703 to the contrary, all remittances from Model 1 or 2 sellers shall be made electronically, using ACH Credit or ACH Debit processes. The commissioner is authorized to provide for an alternative method of making the payment in the event the electronic funds transfer process fails.
  4. (d) Notwithstanding any law to the contrary, a seller that is registered using the central registration system provided by states that are members of the Streamlined Sales and Use Tax Agreement, does not have a legal requirement to register in this state, is not a Model 1 or 2 seller, and has not accumulated more than one thousand dollars ($1,000) in state and local sales and use taxes shall be permitted to file a sales and use tax return at any time within one (1) year of the month of initial registration and shall be permitted to file future returns on an annual basis in succeeding years. The returns shall be due the twentieth day of the month following the tax period covered by the return. A seller that has accumulated state and local sales and use tax funds in the amount of one thousand dollars ($1,000) shall file a return by the twentieth day of the month following the month in which the accumulated taxes reach or exceed one thousand dollars ($1,000). Nothing in this subsection (d) shall relieve a seller who collects state sales or use tax from its customers from liability for failure to pay over those funds to the commissioner on behalf of the state.
History (6)
  • Acts 2003, ch. 357, § 61
  • 2004, ch. 959, §§ 21, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 113, 161
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1.
§ 67-6-537. Release from liability for sales or use taxes for certain sellers — Exceptions.
  1. (a) This section applies to sellers who satisfy all of the following requirements:
    1. (1) The seller registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in this state, in accordance with the terms of the Streamlined Sales and Use Tax Agreement within twelve (12) months of the effective date of this state's becoming a member in substantial compliance with the agreement;
    2. (2)
      1. (A) During the twelve-month period preceding the state's becoming a member in substantial compliance with the agreement, the seller was not registered to collect and remit tax under this chapter; or
      2. (B) During the twelve-month period preceding the state's becoming an associate member of the agreement, the seller was not registered to collect and remit tax under this chapter; and
    3. (3) There is no audit or assessment pending with respect to the seller, and the department has not notified the seller that it will be the subject of an audit.
  2. (b) A seller who satisfies the criteria set out in subsection (a) is not liable for sales or use tax not collected from its customers prior to the date of its registration, nor liable for any related interest or penalty, subject to the limitations contained in subsection (c).
  3. (c)
    1. (1) A seller remains liable for tax collected from its customers but not remitted to the state, and remains liable for any related interest and penalty.
    2. (2) A seller remains liable for any use tax due that arises from its capacity as a buyer and user or consumer of taxable items.
    3. (3) The release from liability provided by subsection (b) is void, unless the seller maintains its registration and continues to collect and remit applicable sales and use taxes for at least thirty-six (36) months. The statute of limitations provided in § 67-1-1501 is tolled during the thirty-six month period.
    4. (4) Fraud or intentional misrepresentation of a material fact voids the release from liability provided by subsection (b).
  4. (d) A dealer or certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if the taxpayer or certified service provider charged and collected or remitted an incorrect amount of sales or use tax in reliance on erroneous data in the taxability matrix provided by the department pursuant to § 328(A) of the Streamlined Sales and Use Tax Agreement. The erroneous data in the taxability matrix provided by the department shall be the most recent published information utilized by the taxpayer or certified service provider that is effective on the date of the transaction. Taxpayers and certified service providers shall provide records evidencing reliance on the erroneous data. Section 328(A) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or defined category included in the taxability matrix.
History (5)
  • Acts 2003, ch. 357, § 61
  • 2004, ch. 959, §§ 22, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 499, §§ 65, 66
  • 2007, ch. 602, §§ 51, 114.
§ 67-6-538. Customer refund procedures for over-collected sales or use taxes.
  1. (a) These customer refund procedures apply when a purchaser seeks a refund of over-collected sales or use taxes from a seller.
  2. (b) Nothing in this section shall require the department to refund to a purchaser taxes collected in error by a seller from the purchaser.
  3. (c) Nothing in this section shall operate to extend any person's time to seek a refund of sales or use taxes collected or remitted in error.
  4. (d) A cause of action against a seller for the over-collected sales or use taxes does not accrue until a purchaser has provided a written notice of the over-collection and a request for a refund to the seller and the seller has had sixty (60) days to respond. The notice to the seller shall contain the information necessary to determine the validity of the request.
  5. (e) In connection with a purchaser's request from a seller of over-collected sales or use taxes, a seller shall be presumed to have a reasonable business practice, if in the collection of the sales or use taxes, the seller:
    1. (1) Uses either a certified service provider or a certified automated system; and
    2. (2) Has remitted to the state all taxes collected less any deductions, credits, or collection allowances.
History (4)
  • Acts 2003, ch. 357, § 61
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 115.
§ 67-6-539. Bundled transactions — Telecommunications services.
  1. (a)
    1. (1) For purposes of this section, a bundled transaction means the retail sale of two (2) or more services, where:
      1. (A) The services are otherwise distinct and identifiable; and
      2. (B) The services are sold for one (1) nonitemized price.
    2. (2) A bundled transaction does not include the sale of any services in which the sales price varies, or is negotiable, based on the selection by the purchaser of the services included in the transaction.
  2. (b) Notwithstanding any other law to the contrary, in the case of a bundled transaction of telecommunication services, ancillary services, internet access services, or audio or video programming services, or direct-to-home satellite television programming services:
    1. (1) If the price is attributable to services that are taxable and services that are nontaxable, the portion of the price attributable to the nontaxable services shall be subject to tax, unless the provider can identify, by reasonable and verifiable standards, such portion from its books and records that are kept in the regular course of business for other purposes, including, but not limited to, nontax purposes;
    2. (2) If the price is attributable to services that are subject to tax at different tax rates, the total price shall be treated as attributable to the services subject to tax at the highest tax rate, unless the provider can identify, by reasonable and verifiable standards, the portion of the price attributable to the products subject to tax at the lower rate from its books and records that are kept in the regular course of business for other purposes, including, but not limited to, nontax purposes;
    3. (3) If the taxes that would have otherwise been collected on the distinct and identifiable services would have been designated to different funds or purposes, such designation shall be based on the same allocation utilized in subdivision (b)(1) or (b)(2). However, if the total of the bundled transaction was subjected to tax or subjected to tax at the higher combined state and local rate, a reasonable allocation method approved by the commissioner shall be made for designation of the taxes to the different funds or purposes;
    4. (4) This section shall apply unless otherwise provided by federal law.
History (5)
  • Acts 2004, ch. 782, § 12
  • 2005, ch. 499, § 56
  • 2007, ch. 602, §§ 46, 162
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1.
§ 67-6-540. Managed compliance agreement with eligible dealers.
  1. (a) The commissioner may, in the commissioner's sole discretion, enter into a managed compliance agreement with an eligible dealer. Such agreement may provide for:
    1. (1) One (1) or more effective use tax rates for purchases subject to tax under this chapter;
    2. (2) A procedure under which the eligible dealer can use a direct pay permit issued by the commissioner to purchase tangible personal property or services without paying to its supplier the tax imposed by this chapter;
    3. (3) A term not to exceed three (3) years, provided nothing shall preclude the commissioner from entering into a subsequent agreement with the same dealer;
    4. (4) The conditions under which the agreement may require modification or termination;
    5. (5) A procedure to resolve disputes concerning the agreement; and
    6. (6) Any such other provisions as the commissioner and the eligible dealer mutually agree upon to carry out the purposes of this section.
  2. (b) The commissioner may, in the commissioner's sole discretion, terminate a managed compliance agreement and conduct an audit of an eligible dealer if the eligible dealer fails to fulfill any of the terms of a managed compliance agreement and such failure is materially adverse to the commissioner and the dealer fails to cure such failure not later than thirty (30) days after the mailing of written notice of such failure by the commissioner; provided, however, that no such notice need be given in the event such failure is not capable of being cured or the commissioner believes that the collection of any tax required to be collected and paid to the state or of any assessment will be jeopardized by delay.
  3. (c) Other than as authorized by this section and expressly agreed in the managed compliance agreement, nothing in this section shall abridge or alter any requirements, rights, or obligations of an eligible dealer or the commissioner granted or imposed by statute or regulation.
  4. (d) For purposes of this section:
    1. (1) “Effective use tax rate” means the rate of use tax to be applied against a predetermined base of purchases for the purpose of computing the eligible taxpayer's use tax liability for a defined period;
    2. (2) “Eligible dealer” means any person who is required to file any return or to pay or remit any tax under this chapter and who, in the opinion of the commissioner, meets the following criteria:
      1. (A) Demonstrates a willingness and ability to comply with the tax laws of this state;
      2. (B) Maintains an acceptable system of internal controls and business records;
      3. (C) Maintains a large volume of taxable purchases; and
      4. (D) Cooperates with Tennessee's efforts to collect tax; and
    3. (3) “Managed compliance agreement” means an agreement between the commissioner and an eligible taxpayer that provides for an agreed upon method for calculating and remitting use tax on that taxpayer's purchases.
History (1)
  • Acts 2004, ch. 786, § 3.
§ 67-6-541. Sales to or use by a contractor, subcontractor, or material vendor of tangible personal property.
  1. (a)
    1. (1) Notwithstanding chapter 856, § 4(g) of the Public Acts 2002, sales to or use by a contractor, subcontractor, or material vendor of tangible personal property, including rentals of tangible personal property and labor or services performed in the fabrication, manufacture, delivery, or installation of the tangible personal property, when the property is sold or used solely in performance of a lump sum or unit price construction contract entered into prior to July 15, 2002, or awarded by the state or a political subdivision pursuant to a bid opening that occurred prior to July 15, 2002, shall be subject to tax at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 plus the applicable local option sales tax rate under part 7 of this chapter. In addition, sales to or use by a subcontractor of tangible personal property, including rentals of tangible personal property and labor or services performed in the fabrication, manufacture, delivery, or installation of the tangible personal property, when the property is sold or used solely in performance of a written subcontract entered into prior to September 1, 2002, if the subcontract is made pursuant to a general contract described in this subsection (a), shall be subject to tax at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 plus the applicable local option sales tax rate under part 7 of this chapter.
    2. (2) If the tax in subdivision (a)(1) is paid to a vendor, the contractor or subcontractor may file a claim with the commissioner for a refund of the tax paid to any of the contractor's vendors at a rate in excess of six percent (6%) plus the local option sales tax rate in effect or operative on July 1, 2002, in the county or municipality in which the sale is sourced.
    3. (3) If the tax in subdivision (a)(1) is remitted directly to the department by the contractor or subcontractor, the contractor or subcontractor may claim a credit on its sales and use tax return covering the same period in which the tax is paid. The credit shall equal the amount of tax remitted to the department at a rate in excess of six percent (6%) plus the local option sales tax rate in effect or operative on July 1, 2002, in the county or municipality in which the sale is sourced.
  2. (b)
    1. (1) Notwithstanding any law to the contrary, sales to or use by a contractor, subcontractor, or material vendor of tangible personal property, including rentals of tangible personal property and labor or services performed in the fabrication, manufacture, delivery, or installation of the tangible personal property, when the property is sold or used solely in performance of a lump sum or unit price construction contract entered into prior to January 1, 2008, or awarded by the state or a political subdivision of the state pursuant to a bid opening that occurred prior to January 1, 2008, shall be subject to tax as otherwise provided in this chapter.
    2. (2) If the tax in subdivision (b)(1) is paid to a vendor, the contractor or subcontractor may file a claim with the commissioner for a refund of the tax paid to any of the contractor's vendors that is in excess of the amount that would have been due by application of former Tenn. Comp. R. & Regs. 1320-5-1-.71, as in effect on January 1, 2007.
    3. (3) If the tax in subdivision (b)(1) is remitted directly to the department by the contractor or subcontractor, the contractor or subcontractor may claim a credit on its sales and use tax return covering the same period in which the tax is paid. The credit shall equal the amount of tax that is in excess of the amount that would have been due by application of Tenn. Comp. R. & Regs. 1320-5-1-.71, as in effect on January 1, 2007.
  3. (c) For purposes of this section, “lump sum or unit price construction contract” means a written contract for the construction of improvements to real property under which the amount payable to the contractor, subcontractor, or material vendor is fixed without regard to the costs incurred in the performance of the contract.
History (3)
  • Acts 2004, ch. 959, § 19
  • 2005, ch. 311, § 2
  • 2007, ch. 602, §§ 52, 116.
Part 6 Dealer Registration
§ 67-6-601. Certificate of registration — Required — Application.
  1. (a) Every person desiring to engage in or conduct business as a dealer in this state shall file with the commissioner an application for a certificate of registration for each place of business; however, a person operating multiple micro markets in this state may file with the commissioner a single certificate of registration for each local jurisdiction in which it operates micro markets.
  2. (b) Any person who engages in the business of furnishing any of the things or services taxable under this chapter shall likewise apply for and obtain a certificate of registration as provided by this part.
  3. (c) The commissioner may impose additional or different registration and/or reporting requirements as determined to be necessary by the commissioner in order to administer the allocation provisions of §§ 67-6-103 and 67-6-712, regarding sports authorities and public building authorities and industrial development corporations created pursuant to title 7, chapter 53.
  4. (d) Only for sole purposes of this chapter, including registering with the department, a marketplace facilitator shall be considered the seller and retailer for each sale facilitated through its marketplace.
Backlinks (2)
History (22)
  • Acts 1947, ch. 3, § 16, C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041
  • Acts 1993, ch. 519, § 4
  • 1998, ch. 1055, § 12
  • 2003, ch. 357, § 62
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 163
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2011, ch. 420, § 15
  • 2020, ch. 646, § 10
  • 2021, ch. 289, § 5.
§ 67-6-602. Certificate of registration — Application — Form — Issuance or refusal to issue certificate.
  1. (a) Every application for a certificate of registration shall be made upon a form prescribed by the commissioner, and shall set forth the name under which the applicant transacts or intends to transact business, the location of the applicant's place or places of business, and such other information as the commissioner may require. The application shall be signed by the owner if a natural person; in the case of an association or partnership, by a member or partner; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of such person's authority.
  2. (b) When the required application has been made, the commissioner shall issue to each applicant a separate certificate of registration for each place of business within the state; provided, that no certificate of registration shall be issued to any person who has been engaged in business in this state, and who has not made a complete return and payment as provided for in § 67-6-513, or who is delinquent in the payment of any sales or use tax due the state. A certificate of registration is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. It shall at all times be conspicuously displayed at the place for which issued.
  3. (c)
    1. (1) The commissioner may refuse to issue any such registration certificate for any place of business where there is reasonable cause to believe there exists a continuity of business enterprise or resumption of a discontinued one involving a transfer of a business and/or a stock of goods in the same or a different location between members of a family, between relatives by blood or marriage, between employer and employee, or former employee, from a partnership or proprietorship to a corporation, or vice versa, where all or some of the persons involved are the same, or that there otherwise exists a conspiracy to defeat the enforcement of this chapter, in the event the transferor is delinquent in the payment of the tax herein provided.
    2. (2) Such refusal may be continued until such time as the transferor shall have complied with the requirements of § 67-6-513 and with all pertinent provisions of this chapter and rules and regulations of the commissioner promulgated hereunder, or, until full and complete explanatory information requested by the commissioner has been furnished.
    3. (3) Any person aggrieved by such refusal or by the denial of a certificate for reasons stated in subdivision (c)(1) may, within ten (10) days after written notice thereof has been mailed or delivered to such person, apply to the commissioner for a hearing, setting forth in such application a full statement of the grounds on which the person intends to rely; provided, that the person has filed with the commissioner, at the time of making such application, a surety company bond running to the state in such sum as the commissioner may determine to be appropriate under the circumstances, conditioned upon the payment of all taxes then due and to become due during the pendency of such appeal to the commissioner and during any further judicial appeal.
    4. (4) When such bond is filed, the commissioner shall immediately issue such registration certificate.
    5. (5) After such hearing, the commissioner shall give written notice of the commissioner's decision.
    6. (6) In the event of an adverse determination by the commissioner under this subsection (c) or subsection (b), an appeal therefrom may be made to any court having jurisdiction within ten (10) days after such written notice has been mailed or delivered to the person.
Backlinks (1)
History (12)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041.
§ 67-6-603. Forfeiture of certificate.
  1. Any person violating this part shall forfeit the certificate of registration, which shall be revoked in accordance with this chapter, and such person shall not be entitled to register under this chapter for a period of twelve (12) months after the revocation has become final.
History (12)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041.
§ 67-6-604. Revocation of certificate — Procedure.
  1. Whenever any person fails to comply with any provision of this chapter or any rule or regulation of the commissioner relating to this chapter, the commissioner, upon hearing, after giving the person ten (10) days' notice in writing, specifying the time and place of a hearing and requiring the person to show cause why the person's certificate of registration should not be revoked, may revoke or suspend any one (1) or more of the certificates of registration held by the person. The notice may be served personally or by certified mail directed to the last known address of the person. The commissioner may designate a hearing officer from the department to conduct the hearings provided for in this section, who shall make findings of fact, conclusions of law, and proposed orders based thereon. The commissioner, if concurring, shall issue the order; or may, upon review of the record, make such findings, conclusions, and issue such orders as, in the commissioner's discretion, the record justifies.
History (12)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041.
§ 67-6-605. Recall of certificate for excessive administrative costs.
  1. (a) The commissioner has the discretion, on the basis of adequate past experience, to recall any certificate of registration where, in the commissioner's judgment, the cost of administering the account is disproportionately high as compared to the amount of tax that a taxpayer is remitting or will remit.
  2. (b) Such recall shall be reviewable by a petition for a common law writ of certiorari in the chancery court of Davidson County, which petition shall be filed within ten (10) days from the date of such recall.
History (12)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041.
§ 67-6-606. Operating without certificate — Penalty.
  1. (a) It is a Class C misdemeanor for any dealer as herein defined to engage in business without a proper and valid certificate of registration.
  2. (b) Any person who engages in business as a dealer in this state without a certificate of registration after a certificate of registration has been suspended or revoked, and each officer of any corporation that so engages in business, commits a Class C misdemeanor.
History (13)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041
  • Acts 1989, ch. 591, § 113.
§ 67-6-607. Unauthorized use of certificate — Penalty.
  1. It is a Class C misdemeanor for any person having a certificate of registration to:
    1. (1) Use such certificate for the purpose of purchasing tangible personal property subject to the tax herein levied except for resale, unless authorized so to do by other provisions of this chapter and the rules and regulations adopted pursuant thereto; or
    2. (2) Use or consume any tangible personal property purchased or otherwise acquired under the certificate of registration and subject to the privilege taxes herein levied, without paying the privilege taxes.
History (13)
  • Acts 1947, ch. 3, § 16
  • C. Supp. 1950, § 1248.88 (Williams, § 1328.38)
  • Acts 1951, ch. 168, § 1
  • 1955, ch. 51, § 14
  • 1955, ch. 242, § 9
  • 1961, ch. 136, § 1
  • 1963, ch. 92, § 1
  • 1969, ch. 109, § 1
  • 1971, ch. 55, § 1
  • 1971, ch. 92, § 1
  • 1971, ch. 186, § 1
  • T.C.A. (orig. ed.), § 67-3041
  • Acts 1989, ch. 591, § 113.
§ 67-6-608. Registration using central, electronic registration system.
  1. (a) Notwithstanding §§ 67-6-601 and 67-6-602, a person may register using the central electronic registration system provided by Streamlined Sales and Use Tax Agreement governing board; furthermore, the commissioner shall permit a person to register through an agent under procedures adopted by the Streamlined Sales and Use Tax Agreement governing board.
  2. (b) By registering using the central electronic system, the seller agrees to collect and remit sales and use taxes for all taxable sales sourced to Tennessee. If Tennessee ceases to be a member of the agreement, the seller remains liable to remit all taxes previously collected on sales sourced to this state.
  3. (c) The fact that a person has registered pursuant to this section shall not be used in determining whether the person has sufficient nexus with the state so as to be subject to any tax at any time.
History (4)
  • Acts 2003, ch. 357, § 63
  • 2004, ch. 959, §§ 23, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 117.
Part 7 1963 Local Option Revenue Act
§ 67-6-701. Short title — Nature of tax.
  1. (a) This part shall be known and may be cited as the “1963 Local Option Revenue Act.”
  2. (b) The tax authorized by this part is and shall be in addition to all other taxes which counties, cities and towns are now authorized to levy, whether levied in the form of excise, license, or privilege taxes, and shall be in addition to all other fees and taxes now authorized to be levied.
History (2)
  • Acts 1963, ch. 329, §§ 1, 8
  • T.C.A., §§ 67-3049, 67-3056.
§ 67-6-702. Tax authorized — Rates — Termination of services tax.
  1. (a)
    1. (1)
      1. (A) Any county, by resolution of its county legislative body, or, subject to subdivision (a)(1)(B), an incorporated city or town, by ordinance of its governing body, is authorized to levy a tax on the same privileges subject to this chapter as the chapter may be amended, that are exercised within such county, city or town, to be levied and collected in the same manner and on all such privileges, but not to exceed two and three-fourths percent (2.75%); provided, that the tax levied shall apply only to the first one thousand six hundred dollars ($1,600) on the sale or use of any single article of personal property.
      2. (B)
        1. (i) As used in this subdivision (a)(1)(B), “city tax rate” means, with regard to a city or town that is located within a county that has not adopted the maximum rate of two and three-quarters percent (2.75%) as set forth in subdivision (a)(1)(A), a rate adopted by the city or town that is equal to the difference between the county rate and the maximum rate as authorized by § 67-6-703.
        2. (ii) A city or town that has adopted a city tax rate is authorized to:
          1. (a) Levy a tax on the retail sale of food and food ingredients, as described in § 67-6-228(a), within the jurisdiction of the city or town at a rate lower than the city tax rate levied for other privileges, goods, and services; or
          2. (b) Exempt from the city tax rate the retail sale of food and food ingredients, as described in § 67-6-228(a), within the city or town.
          Backlinks (1)
        3. (iii) The incorporated city or town shall furnish a certified copy of the adopted ordinance authorized in subdivision (a)(1)(B)(ii) to the department of revenue. The reduced tax rate or exemption becomes effective on the first calendar day of the month occurring at least sixty (60) days after the department receives the certified copy. The reduced tax rate or exemption applies only to tax periods beginning on or after October 1, 2024.
    2. (2) Any five-dollar or seven-dollar and fifty-cent tax limit on the sale or use of any single article of personal property in effect at present may be removed, and, by resolution in the case of counties and by ordinance in the case of municipalities, the tax at the existing rate may, instead, be made to apply to the bases provided in subdivision (a)(1). The resolution or ordinance shall be passed at least twice at two (2) or more consecutive public meetings, not more than one (1) of which may be held on any single day. Notice of the meetings and of the fact that this matter is on the agenda of the meetings shall be published at least once in a newspaper of general circulation throughout the jurisdiction involved not less than seven (7) days before the first of the meetings. If the county or counties in which it is located does not increase the base of the county-wide local sales and use tax pursuant to this subdivision (a)(2), any municipality may by ordinance apply any county tax rate in effect in the municipality to the bases authorized in subdivision (a)(1) for purposes of the sale or use of any single article of personal property within the municipality's corporate limits. The ordinance increasing the base of the county-wide tax within the municipality shall be adopted as required in this subdivision (a)(2).
      Backlinks (1)
    3. (3) Once any local sales tax limit has been removed and the tax rate applied to the base provided in subdivision (a)(1), future increases in the base beginning on the dates specified in subdivision (a)(1) shall be automatic and shall not require further action of the local governing body. For any municipality or county which implements a local sales tax for the first time after May 17, 1983, or during the phase-in period provided in subdivision (a)(1), future increases in the base beginning on the dates specified in subdivision (a)(1) shall be automatic and shall not require further action of the local governing body.
    4. (4) For the purpose of this part, persons engaged in the business of selling water shall be considered to be exercising a taxable privilege at the place where the tangible personal property is delivered to the purchaser.
  2. (b) Notwithstanding other provisions of this chapter, with respect to water sold to or used by manufacturers at the state tax rate of one percent (1%) as authorized in § 67-6-206, the local tax thereon shall be imposed at the rate of one-third of one percent (⅓%) whenever the rate of the local tax does not exceed one percent (1%) and at the rate of one-half of one percent (0.5%) whenever the rate of the local tax exceeds one percent (1%). The maximum local tax on the sale or use of any single article of industrial or farm machinery shall be as provided in subsection (a).
  3. (c) A use tax paid by the lessee of tangible personal property from a lessor which is a tax exempt entity pursuant to an election made under § 67-6-204(b) shall be in lieu of any tax that might otherwise be imposed under this part, and no additional sales or use tax may be imposed under this part on rental payments with respect to which a use tax based on the purchase price of the tangible personal property has been paid by election.
  4. (d) “Single article” means that which is regarded by common understanding as a separate unit exclusive of any accessories, extra parts, etc., and that which is capable of being sold as an independent unit or as a common unit of measure, a regular billing or other obligation. Such independent units sold in sets, lots, suites, etc., at a single price shall not be considered a single article. Parts or accessories for motor vehicles that are installed at the factory and delivered with the unit as original equipment and/or parts or accessories for motor vehicles that are installed by the dealer and/or distributor prior to sale, at the time of the sale, or that are included as part of the sales price of the vehicle shall be treated as a part of the unit. In addition, all necessary parts and equipment installed by a motor vehicle dealer that are essential to the functioning of the motor vehicle or are required to be installed on the motor vehicle prior to sale to the ultimate consumer pursuant to state or federal statutes relating to the lawful use of the motor vehicle shall be treated as a part of the unit. Boat motors, other parts or accessories for boats, freight, and labor, excluding trailers, shall be treated as part of the boat unit in the same manner as parts or accessories for motor vehicles are treated as part of the motor vehicle unit. Parts and accessories and any other additional or incidental items or services that are part of the sale of a manufactured home shall be treated as part of the manufactured home unit in the same manner as parts and accessories for motor vehicles are treated as part of the motor vehicle unit.
    Backlinks (2)
  5. (e) Notwithstanding any other provision of this chapter, with respect to sales of tangible personal property to common carriers for use outside this state subject to the reduced rate provided in part 2 of this chapter, the local tax thereon shall be at the rate of one and one-half percent (1.5%). The maximum local tax on the sale or use of any single article of personal property shall be as provided in subsection (a).
  6. (f)
    1. (1) Notwithstanding any other provisions of this chapter, local tax with respect to interstate or international telecommunications services, that are subject to state tax shall be imposed at the rate of one and one-half percent (1.5%); provided, that interstate and international telecommunications services to businesses are exempt from local tax.
    2. (2) Notwithstanding any other provisions of this chapter, local tax with respect to intrastate telecommunications services and ancillary services that are subject to state tax, shall be imposed at the rate of two and one-half percent (2.5%).
    3. (3) Local tax with respect to “prepaid calling services” and “prepaid wireless calling services” that are subject to tax shall be imposed at the rate of tax levied on the sale of tangible personal property at retail by subsection (a) and at the time of the retail sale of prepaid calling service and prepaid wireless calling service.
    4. (4) Notwithstanding any other provisions of this chapter, local tax with respect to specified digital products that are subject to state tax shall be imposed at the rate of two and one-half percent (2.5%).
    Backlinks (1)
  7. (g) Notwithstanding any other law to the contrary, sales of tangible personal property upon which a state sales and use tax is levied shall be subject to a local sales and use tax at the rate of two and one quarter percent (2.25%) when obtained from any vending machine or device.
    Backlinks (1)
Backlinks (4)
History (50)
  • Acts 1963, ch. 329, § 2
  • 1968, ch. 488, §§ 1, 4
  • 1971, ch. 117, § 7
  • 1971, ch. 148, § 1
  • 1972, ch. 653, § 2
  • 1973, ch. 239, § 2
  • 1973, ch. 340, § 1
  • 1974, ch. 675, § 2
  • 1975, ch. 316, § 2
  • 1976, ch. 466, § 5
  • 1977, ch. 43, § 1
  • 1977, ch. 178, § 2
  • 1978, ch. 592, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • 1979, ch. 308, § 3
  • 1980, ch. 886, § 2
  • 1981, ch. 182, § 2
  • 1982, ch. 585, § 1
  • 1983, ch. 278, § 1
  • T.C.A., § 67-3050
  • Acts 1984 (Ex. Sess.), ch. 8, §§ 5, 9
  • 1984, ch. 631, § 1
  • 1984, ch. 721, § 1
  • 1984, ch. 729, § 1
  • 1985, ch. 356, §§ 6, 8
  • 1986, ch. 560, § 2
  • 1987, ch. 428, § 6
  • 1988, ch. 684, § 1
  • 1988, ch. 789, § 2
  • 1989, ch. 312, § 11
  • 1990, ch. 661, §§ 1, 2
  • 1992, ch. 529, § 15
  • 1992, ch. 913, § 6
  • 1993, ch. 492, §§ 1-3
  • 1995, ch. 184, § 1
  • 1996, ch. 743, § 1
  • 1997, ch. 194, § 3
  • 1999, ch. 413, § 5
  • 2002, ch. 719, §§ 5, 9
  • 2003, ch. 357, §§ 4, 64, 65
  • 2004, ch. 782, § 13
  • 2004, ch. 959, §§ 24, 25, 68
  • 2005, ch. 311, §§ 1-3
  • 2007, ch. 602, §§ 51, 71, 118, 119, 164
  • 2008, ch. 1106, § 21
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1
  • 2011, ch. 467, § 5
  • 2019, ch. 491, § 2
  • 2024, ch. 917, §§ 1, 2.
§ 67-6-703. Priority of county levy.
  1. (a)
    1. (1) The levy of the tax by a county shall preclude, to the extent of the county tax, any city or town within such county from levying the tax, but a city or town shall at any time have the right to levy the tax at a rate equal to the difference between the county tax and the maximum rate authorized in this chapter. For cities and towns having territory in more than one (1) county, “cities and towns” means that part of their territory in which they are not precluded by a county tax.
    2. (2) Cities and towns having territory in more than one (1) county may levy the tax throughout the entire city or town at a rate equal to the difference between the lowest operative rate of any county in which the city is located and the maximum rate authorized in this chapter; provided, that if such rate levied should cause the total tax rate levied within any one (1) county in which the city or town is located to exceed the maximum rate authorized by this part, then only so much of the city or town levy as equals the difference between the county tax and the maximum rate authorized by this part shall become effective in the territory of the city or town located in such county. Nothing in this subdivision (a)(2) shall in any manner affect the priority of any county levy; provided, that nothing in this part shall permit any rate above the maximum rate authorized by this part to become effective.
  2. (b) If an ordinance levying the tax authorized by this part is adopted by a city or town prior to adoption of the tax by the county in which the city or town is located, the effectiveness of the ordinance shall be suspended for a period of forty (40) days beyond the date on which it would otherwise be effective under the charter of the city or town. If during this forty-day period, the county legislative body adopts a resolution to levy the tax at least equal to the rate provided in such ordinance, the effectiveness of the ordinance shall be further suspended until it is determined whether the county tax is to be operative, as provided in § 67-6-706. If the county tax becomes operative by approval of the voters as provided in § 67-6-706, the ordinance shall be null and void, but if the county tax does not become operative, the ordinance shall become effective on the same date that the county tax is determined to be nonoperative, and the election required by § 67-6-706 shall be held. After initial adoption of the tax by a county or a city or town therein, the tax rate may be increased by a city, town or county under the same procedure. If the tax levied by a county legislative body is finally determined to be nonoperative, such action shall not preclude subsequent action by the county to adopt the tax at a rate at least equal to the city or town tax rate, in which event the city or town tax shall cease to be effective; provided, that the city or town shall receive from the county tax the same amounts as would have been received from the city or town tax until the end of the current fiscal year of the city or town.
Backlinks (1)
History (4)
  • Acts 1963, ch. 329, § 3
  • 1968, ch. 488, § 2
  • T.C.A., § 67-3051
  • Acts 1986, ch. 785, § 1.
§ 67-6-704. Exemptions.
  1. No county or incorporated city or town is authorized to levy any tax on the sale, purchase, use, consumption or distribution of electric power or energy, or of natural or artificial gas, or coal and fuel oil or steam and chilled water produced and distributed by an energy resource recovery facility operated in a county with a metropolitan form of government.
History (32)
  • Acts 1963, ch. 329, § 2
  • 1968, ch. 488, §§ 1, 4
  • 1971, ch. 117, § 7
  • 1971, ch. 148, § 1
  • 1972, ch. 653, § 2
  • 1973, ch. 239, § 2
  • 1973, ch. 340, § 1
  • 1974, ch. 675, § 2
  • 1975, ch. 316, § 2
  • 1976, ch. 466, § 5
  • 1977, ch. 43, § 1
  • 1977, ch. 178, § 2
  • 1978, ch. 592, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • Acts 1979, ch. 308, § 3
  • 1980, ch. 886, § 2
  • 1981, ch. 182, § 2
  • 1982, ch. 585, § 1
  • 1983, ch. 278, § 1
  • T.C.A., § 67-3050
  • Acts 1985, ch. 452, § 7
  • 1989, ch. 430, § 7
  • 2003, ch. 357, § 66
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 165, 187
  • 2009, ch. 530, §§ 35, 47
  • 2011, ch. 72, §§ 1, 13
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1.
§ 67-6-705. Tax subject to referendum.
  1. (a) The operation of the resolution or ordinance authorized in § 67-6-702 shall be subject to approval of the voters as required in § 67-6-706 and to the other provisions of this part.
  2. (b) Nothing contained in this part shall be deemed to permit an increase in the privilege tax rates authorized in this part, without the ratification thereof in the manner provided in § 67-6-706, regardless of the nature of any previous call and regardless of future action of the general assembly regarding the levy of the tax authorized by this part.
  3. (c) Any amendment to any existing tax rate shall be subject to approval of the voters of the city or county in the same manner as is required for the initial adoption of the tax; provided, that a change in the limitation on the amount of the tax made in accordance with § 67-6-702(a)(2) shall not be subject to approval of the voters of the city or county.
  4. (d) Notwithstanding this section, the levying of a reduced tax rate or an exemption pursuant to § 67-6-702(a)(1)(B)(ii) is not subject to the approval of the voters as required in § 67-6-706.
History (21)
  • Acts 1963, ch. 329, § 2
  • 1968, ch. 488, §§ 1, 4
  • 1971, ch. 117, § 7
  • 1971, ch. 148, § 1
  • 1972, ch. 653, § 2
  • 1973, ch. 239, § 2
  • 1973, ch. 340, § 1
  • 1974, ch. 675, § 2
  • 1975, ch. 316, § 2
  • 1976, ch. 466, § 5
  • 1977, ch. 43, § 1
  • 1977, ch. 178, § 2
  • 1978, ch. 592, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • Acts 1979, ch. 308, § 3
  • 1980, ch. 886, § 2
  • 1981, ch. 182, § 2
  • 1982, ch. 585, § 1
  • 1983, ch. 278, § 1
  • T.C.A., § 67-3050
  • 2024, ch. 917, § 3.
§ 67-6-706. Referendum.
  1. (a)
    1. (1) Any ordinance or resolution of a county or of a city or town levying the tax under authority of this part shall not become operative until approved in an election herein provided in the county or the city or town, as the case may be.
    2. (2) The county election commission shall hold an election on the question pursuant to § 2-3-204, providing options to vote “FOR” or “AGAINST” the ordinance or resolution, after the receipt of a certified copy of such ordinance or resolution, and a majority vote of those voting in the election shall determine whether the ordinance or resolution is to be operative.
    3. (3) If the majority vote is for the ordinance or resolution, it shall be deemed to be operative on the date that the county election commission makes its official canvass of the election returns; provided, however, that no tax shall be collected under any such ordinance or resolution until the first day of a month occurring at least thirty (30) days after the operative date.
    Backlinks (1)
  2. (b)
    1. (1) If a county legislative body adopts a resolution to levy the tax at the same rate that is operative in a city or town in the county, the election under this section to determine whether the county tax is to be operative shall be open only to the voters residing outside of such city or town. If the county tax is at a higher rate than the rate of the city or town tax, the election shall also be open to the voters of the city or town.
    2. (2)
      1. (A) Except as provided in subdivision (b)(2)(B), should any county or city or town hold an election under this section, and the ordinance or resolution is rejected, no other election thereon shall be held by such county, city or town for a period of six (6) months from the date of the holding of such prior election.
      2. (B) In counties having a population of not more than seven hundred fifty thousand (750,000) nor less than seven hundred thousand (700,000) and not more than two hundred seventy-eight thousand (278,000) and not less than two hundred fifty thousand (250,000), according to the federal census of 1970 or any subsequent federal census, in case of rejection, the limitation period on subsequent elections shall be one (1) year from the date of the holding of such prior election.
Backlinks (4)
History (15)
  • Acts 1963, ch. 329, § 5
  • 1967, ch. 113, § 1
  • 1968, ch. 488, § 3
  • 1971, ch. 83, § 1
  • 1972, ch. 455, § 1
  • 1982, ch. 591, § 1
  • T.C.A., § 67-3053
  • Acts 1985, ch. 234, § 1
  • 1998, ch. 618, § 3
  • 2003, ch. 357, § 67
  • 2004, ch. 959, §§ 26, 68
  • 2005, ch. 311, §§ 1, 2
  • 2007, ch. 602, §§ 51, 166
  • 2009, ch. 530, § 35
  • 2011, ch. 72, § 1.
§ 67-6-707. Petition for tax.
  1. A resolution or ordinance levying the tax authorized may be initiated by petition of the voters in the following manner:
    1. (1) The petition shall be addressed to the county legislative body or the governing body of the city or town requesting that a resolution or ordinance be adopted levying the tax and shall state the rate of the tax, whether the tax is to be collected by the county, city or town, or by the department of revenue, and shall specify the officer against whom suit for the recovery of any tax illegally assessed or collected shall be brought;
    2. (2) The petition shall be signed by at least a number of registered voters in the taxing jurisdiction equal to ten percent (10%) of the total number of registered voters in the taxing jurisdiction on the date the petition is filed; provided, that a petition requesting a resolution of the county legislative body may not be signed by a registered voter in a city or town where a tax authorized by this part is operative equal to that levied by the resolution, and the registered voters in such city or town shall not be considered in arriving at the required percentage;
    3. (3) A petition requesting a resolution shall be filed with the county clerk, a petition requesting an ordinance with the chief clerical officer of the city or town, and a photographic copy of the petition shall be filed at the same time with the county election commission who shall be the judges of the sufficiency of the petition; and
    4. (4) If, within thirty (30) days from the filing of a petition, a resolution or ordinance is not adopted as requested and a certified copy filed with the county election commission, the petition shall constitute a resolution or ordinance, and the county election commission shall hold an election thereon as in § 67-6-706(a).
History (6)
  • Acts 1963, ch. 329, § 5
  • 1967, ch. 113, § 1
  • 1968, ch. 488, § 3
  • 1971, ch. 83, § 1
  • 1972, ch. 455, § 1
  • T.C.A., § 67-3053.
§ 67-6-708. Termination of tax.
  1. (a) The tax imposed in this part shall remain in effect in the county or city on a perpetual basis as permitted by law, unless the city or county by ordinance or resolution, respectively, shall provide for a specific termination date.
  2. (b) The city or county by ordinance or resolution respectively may provide for a specific period of time during which the tax shall be in effect.
History (20)
  • Acts 1963, ch. 329, § 2
  • 1968, ch. 488, §§ 1, 4
  • 1971, ch. 117, § 7
  • 1971, ch. 148, § 1
  • 1972, ch. 653, § 2
  • 1973, ch. 239, § 2
  • 1973, ch. 340, § 1
  • 1974, ch. 675, § 2
  • 1975, ch. 316, § 2
  • 1976, ch. 466, § 5
  • 1977, ch. 43, § 1
  • 1977, ch. 178, § 2
  • 1978, ch. 592, § 2
  • impl. am. Acts 1978, ch. 934, §§ 7, 36
  • 1979, ch. 308, § 3
  • 1980, ch. 886, § 2
  • 1981, ch. 182, § 2
  • 1982, ch. 585, § 1
  • 1983, ch. 278, § 1
  • T.C.A., § 67-3050.
§ 67-6-709. Repeal of tax.
  1. Any ordinance or resolution of a county, city or town adopted in accordance with this part may be repealed in the same manner as provided by this part for its adoption; provided, that any election for the repeal of a county tax shall be open to the voters of the entire county.
History (2)
  • Acts 1963, ch. 329, § 7
  • T.C.A., § 67-3055.
§ 67-6-710. Collection and administration.
  1. (a)
    1. (1) In collecting and administering the tax levied under the authority of this part, the commissioner of revenue shall have the same powers as the commissioner has in collecting and administering the state sales tax.
    2. (2) Rules and regulations promulgated by the commissioner under §§ 67-1-102 and 67-6-402 shall be applicable to the tax levied under the authority of this part, and shall be binding on cities, counties, and towns, and interest and penalty for delinquencies shall be imposed equal to the rates provided in § 67-6-516.
  2. (b)
    1. (1) The department of revenue shall collect such tax concurrently with the collection of the state tax in the same manner as the state tax is collected; provided, that the department has determined that such collection of the tax is feasible, and has promulgated rules and regulations governing such collection.
    2. (2) The department shall remit the proceeds of the tax to the county, city or town levying the tax, less a reasonable amount of percentage as determined by the department to cover the expenses of administration and collection. This percentage shall be one and one hundred twenty-five thousandths percent (1.125%). The percentage shall not be less than necessary to defray the state's expenses in administering, collecting, and remitting the local sales tax, as determined annually by the department and certified by the comptroller of the treasury.
  3. (c) The county, city or town shall furnish a certified copy of the adopting resolution or ordinance to the department of revenue in accordance with regulations prescribed by the department.
  4. (d)
    1. (1) Upon any claim of illegal assessment or collection, the taxpayer shall have the remedy provided in chapter 1, part 18 of this title, it being the intention of the general assembly that law which applies to the recovery of state taxes illegally assessed or collected be conformed to apply to the recovery of taxes illegally assessed or collected under the authority of this part.
    2. (2) The resolution or ordinance levying the tax shall designate the county or municipal officer against whom suit may be brought for recovery.
  5. (e) Proceeds of the taxes provided for in § 67-6-702(f) shall be distributed as follows:
    1. (1) Fifty percent (50%) shall be distributed as provided in [former] subsection (e) [See Compiler's Notes.]; and
    2. (2) Fifty percent (50%) shall be distributed to incorporated municipalities in the proportion that the population of each bears to the aggregate population of the state and to counties in the proportion the population of unincorporated areas of the county bears to the aggregate population of the state, according to the most recent federal census and other censuses authorized by law. Counties and incorporated municipalities shall use such funds in the same manner and for the same purposes as funds distributed pursuant to § 67-6-712.
  6. (f)
    1. (1) Proceeds of the tax on sales of tangible personal property obtained from any vending machine or device as provided for in § 67-6-702 shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total tax collections in all counties under this section.
    2. (2) The amount received by the county under subdivision (f)(1) shall be distributed first as provided for in § 67-6-712(a)(1). The remainder shall be distributed to the cities or towns in the county based on the ratio of total collections in the municipality to total collections in the county.
  7. (g)
    1. (1) Notwithstanding any provision of law to the contrary, the commissioner, based upon reporting of exempt sales under § 67-6-393 and any other data or information the commissioner deems relevant, shall substantially reimburse counties and municipalities for the loss of local tax under this part resulting from the exemption provided by § 67-6-393. The amount of the reimbursement shall be approximately equal to the aggregate amount of local tax that would have been collected under this part on the sale or use of goods otherwise taxable but for § 67-6-393.
    2. (2) If the loss of local tax subject to reimbursement under this subsection (g) cannot be identified to a particular situs, the amount of the reimbursement shall be distributed to the counties based on the ratio of total local tax collections in the county under this part over the total local tax collections in all counties under this part. The amount received by the county under this subdivision (g)(2) shall be distributed first as provided for in § 67-6-712(a)(1). The remainder shall be distributed to each municipality in the county based on the ratio of total collections in that municipality over the total collections in the county and shall be distributed to the county based on the ratio of total collections in the unincorporated portions of the county over the total collections in the county.
    3. (3) Notwithstanding any provision of § 67-6-103 to the contrary, the distribution required by this subsection (g) shall be made from state sales tax collections prior to distribution under § 67-6-103; provided, however, that no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002 shall be distributed pursuant to this subsection (g). All such revenue shall continue to be allocated as provided in chapter 856 of the Public Acts of 2002.
  8. (h) On or before January 1, 2023, and on or before January 1 of each subsequent year, the department shall submit a report to the finance, ways and means committees of the senate and the house of representatives outlining the actual costs incurred by the department for the administration and collection of the local option sales tax levied pursuant to this part.
Backlinks (1)
History (14)
  • Acts 1999, ch. 406, § 14
  • 2002, ch. 719, § 10
  • 2003, ch. 355, § 46
  • 2003, ch. 357, § 68
  • 2004, ch. 592, § 9
  • 2004, ch. 959, §§ 27, 68
  • 2005, ch. 311, §§ 1, 2
  • 2005, ch. 398, § 3
  • 2006, ch. 1019, § 45
  • 2007, ch. 602, §§ 51, 120, 167, 168, 187
  • 2009, ch. 530, §§ 35, 48
  • 2011, ch. 72, §§ 1, 14
  • 2019, ch. 491, § 3
  • 2022, ch. 858, § 1.
§ 67-6-712. Distribution of revenue.
  1. (a) The tax levied by a county under this part shall be distributed as follows:
    1. (1) One-half (½) of the proceeds shall be expended and distributed in the same manner as the county property tax for school purposes is expended and distributed; and
      Backlinks (4)
    2. (2) The other one-half (½) as follows:
      1. (A) Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct;
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      2. (B) Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised;
      3. (C) However, a county and city or town may by contract provide for other distribution of the one-half (½) not allocated to school purposes;
    3. (3) Any out-of-state dealer making sales to a customer within this state shall report to the department information as prescribed by the commissioner, and as required under § 67-6-504(m), that is sufficient for the commissioner to appropriately distribute revenue pursuant to subdivisions (a)(1) and (2);
    4. (4) Any county, city, town, incorporated area or special school district entitled to receive the proceeds described in subdivisions (a)(1) and (2) has the power and authority, by resolution of the governing body thereof, to pledge such proceeds to the punctual payment of principal of and interest on bonds, notes or other evidence of indebtedness issued for the purpose for which such proceeds are permitted to be spent pursuant to such subdivisions (a)(1) and (2); provided, that the pledge by a county of proceeds to which it is entitled under subdivision (a)(1) shall not be effective, unless approved by resolution of the county board of education.
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  2. (b)
    1. (1) County trustees in counties having populations of seven hundred thousand (700,000) or more, according to the 1980 federal census or any subsequent federal census, shall not be entitled to receive compensation for receiving and distributing the taxes under subsection (a), notwithstanding § 8-11-110 or any other law to the contrary.
    2. (2) This subsection (b) shall have no effect, unless it is approved by a two-thirds (⅔) vote of the legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the legislative body and certified by such presiding officer to the secretary of state.
  3. (c)
    1. (1)
      1. (A) Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to the events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
      2. (B)
        1. (i) In addition to the allocations provided in subdivision (c)(1)(A), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of local tax revenue provided in this subdivision (c)(1)(B)(i) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise.
        2. (ii) In addition to the allocation provided in subdivision (c)(1)(B)(i), an amount must also be apportioned and distributed to the municipality equal to one-half (½) the amount of local tax revenue derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of local tax revenue pursuant to this subdivision (c)(1)(B)(ii) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (c)(1)(B)(ii) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (c)(1)(B)(ii).
      3. (C) In addition, if an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to two-thirds (⅔) of the amount of the allocation of local tax revenue under subdivision (a)(2) derived from the sale of admissions to all other events occurring at such indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the indoor sports facility, parking charges, and related services. Such amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
      4. (D) For the purpose of this subsection (c), “municipality” means any incorporated city or county located in this state.
      5. (E) Notwithstanding the allocations provided for in subsection (a), in a municipality with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, with a motor sports facility less than one (1) mile in circumference, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and from all sales of food, drinks, merchandise, and parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services, sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility.
    2. (2) Any bonds issued relative to the construction of a sports facility for a sports franchise listed in subdivision (c)(1)(A) shall not be issued for a term longer than thirty (30) years from the date the first game is played by the professional sports franchise in a municipality, as defined in subdivision (c)(1).
  4. (d) Notwithstanding the provisions of this section to the contrary, revenue derived from taxes imposed by this part shall be earmarked and allocated in accordance with title 7, chapter 88.
  5. (e) If any dealer fails to provide the department with the information required under § 67-6-504(m) and the department is unable to determine the proper distribution of local sales tax under subsection (a), the department shall distribute the local sales tax as follows:
    1. (1) For taxes received by the department before July 1, 2021:
      1. (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total local tax collections in all counties under this section;
      2. (B) The amount received by the county under subdivision (e)(1)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality to total local tax collections in the county and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county to total local tax collections in the county;
    2. (2) For taxes received by the department on or after July 1, 2021:
      1. (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county from dealers with no location in this state that can be identified by situs over the total local tax collections in all counties from dealers with no location in this state that can be identified by situs;
      2. (B) The amount received by the county under subdivision (e)(2)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs;
    3. (3) A county and a municipality may, by contract, provide for an alternative distribution for the amount not distributed under subdivision (a)(1).
  6. (f) Notwithstanding the allocations provided for in subsection (a), if a franchise for a minor league affiliate of a major league baseball team (American or National League) playing at the Class AA level or higher locates, as described in § 67-6-103(d)(1)(A)(iv), in a municipality in this state and if the municipality constructs a new stadium for the franchise, then local sales tax must be apportioned and distributed to the municipality as provided in § 67-6-103(d)(1)(A)(iv); provided, however, that in such a case, the county and the city in which the stadium is located are authorized to agree by interlocal agreement for that portion of the local sales tax that would otherwise be allocated for school purposes under subdivision (a)(1) to continue to be so allocated and not apportioned and distributed as provided in § 67-6-103(d)(1)(A)(iv).
Backlinks (5)
History (25)
  • Acts 1963, ch. 329, § 4
  • 1967, ch. 90, § 1
  • T.C.A., § 67-3052
  • Acts 1987, ch. 176, § 2
  • 1988, ch. 848, §§ 1, 2
  • 1990, ch. 1096, § 2
  • 1993, ch. 519, §§ 3, 5
  • 1994, ch. 968, § 2
  • 1995, ch. 237, § 2
  • 1998, ch. 747, § 1
  • 1998, ch. 1055, § 13
  • 2004, ch. 959, §§ 28, 68
  • 2005, ch. 311, § 2
  • 2005, ch. 441, § 2
  • 2007, ch. 602, §§ 52, 169
  • 2008, ch. 1106, § 15
  • 2009, ch. 530, §§ 35, 63
  • 2011, ch. 72, § 1
  • 2012, ch. 849, § 2
  • 2019, ch. 440, § 1
  • 2019, ch. 491, §§ 4, 5
  • 2021, ch. 401, §§ 5-7
  • 2021, ch. 422, § 2
  • 2021, ch. 558, § 3
  • 2022, ch. 1069, § 4.
§ 67-6-714. Local option tax exemption for cable or wireless cable television services.
  1. There is exempt from the local option tax fees for subscription to, access to or use of television programming or television services provided by a video programming services provider offered for public consumption up to but not exceeding twenty-seven dollars and fifty cents ($27.50) per month.
History (11)
  • Acts 1999, ch. 423, § 5
  • 2003, ch. 357, § 69
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 47, 51, 170, 187
  • 2009, ch. 530, §§ 35, 49
  • 2011, ch. 72, §§ 1, 15
  • 2013, ch. 480, § 1
  • 2015, ch. 273, § 3
  • 2017, ch. 193, § 1
  • 2019, ch. 157, § 1.
Part 8 Simplified Sales and Use Tax Administration Act
§ 67-6-801. Short title.
  1. This part shall be known and may be cited as the “Simplified Sales and Use Tax Administration Act.”
History (1)
  • Acts 2001, ch. 312, § 1.
§ 67-6-802. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) For purposes of §§ 67-6-803 and 67-6-804, “agreement” means the Streamlined Sales and Use Tax Agreement as amended and adopted on January 27, 2001, by the national conference of state legislatures' special task force on state and local taxation of telecommunications and electronic commerce and adopted by the executive committee of the national conference of state legislatures; for purposes of §§ 67-6-804 — 67-6-806, “agreement” means the agreement styled “Streamlined Sales and Use Tax Agreement”, adopted November 12, 2002, by the Streamlined Sales Tax implementing states, including any amendment to the agreement so long as the amendment has also been adopted by the Streamlined Sales Tax governing board.
    2. (2) “Person” means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity;
    3. (3) “Sales tax” means the sales tax levied under this chapter;
    4. (4) “Seller” means any person making sales, leases, or rentals of personal property or services;
    5. (5) “State” means any state of the United States, the District of Columbia and the Commonwealth of Puerto Rico; and
    6. (6) “Use tax” means the use tax levied under this chapter.
History (5)
  • Acts 2001, ch. 312, § 1
  • 2003, ch. 357, § 72
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 121-123.
§ 67-6-803. Legislative findings.
  1. The general assembly finds that a simplified sales and use tax system will reduce and over time eliminate the burden and cost for all vendors to collect sales and use tax. The general assembly further finds that Tennessee should participate in multi-state discussions to review or amend the terms of the agreement to simplify and modernize sales and use tax administration in order to reduce substantially the burden of tax compliance for all sellers and for all types of commerce.
Backlinks (1)
History (1)
  • Acts 2001, ch. 312, § 1.
§ 67-6-804. Multi-state discussions — Delegates.
  1. For the purposes of reviewing or amending the agreement embodying the simplification requirements as contained in § 67-6-806, the state of Tennessee shall enter into multi-state discussions and shall be represented in such discussions by the following four (4) delegates: the commissioner of revenue or the commissioner's designee; one (1) member of the house of representatives appointed by the speaker of the house of representatives; one (1) member of the senate appointed by the speaker of the senate; and the comptroller of the treasury.
Backlinks (1)
History (1)
  • Acts 2001, ch. 312, § 1.
§ 67-6-805. Authority to enter into the Streamlined Sales and Use Tax Agreement.
  1. (a) The commissioner of revenue is authorized to enter into, on behalf of the state of Tennessee, the agreement styled “Streamlined Sales and Use Tax Agreement”, adopted November 12, 2002, by the Streamlined Sales Tax implementing states, including any amendment to the agreement, so long as the amendment has also been adopted by the Streamlined Sales Tax implementing states. After Tennessee becomes a member of the agreement, the commissioner is authorized to take any and all action pursuant to the state's membership in the agreement; provided, that such action is not inconsistent with any law of this state.
  2. (b) No provision of any agreement entered into by the commissioner under the authority of subsection (a) invalidates or amends any provision of the law of this state. Implementation of any condition of the agreement in the state of Tennessee, whether adopted before, at, or after membership of this state in the agreement, must be authorized by the general assembly by legislative enactment.
  3. (c) The agreement referenced in this section is an accord among individual cooperating sovereigns in furtherance of their governmental functions. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.
  4. (d) No person, other than a member state, is an intended beneficiary of the agreement. Any benefit to a person other than a state is established by the law of this state and the other member states and not by the terms of the agreement.
  5. (e) No person shall have any cause of action or defense under the agreement. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the grounds that the action or inaction is inconsistent with the agreement.
  6. (f) No law of this state, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement.
  7. (g) Determinations pertaining to the agreement that are made by the member states are final when rendered and are not subject to protest, appeal or review in any court in this state.
History (3)
  • Acts 2001, ch. 312, § 1
  • 2003, ch. 357, § 73
  • 2004, ch. 959, §§ 58, 68.
§ 67-6-806. Agreement requirements.
  1. (a) The commissioner shall provide and maintain a database that describes boundary changes for all counties, cities and towns that levy a tax pursuant to part 7 of this chapter. This database shall include a description of the change and the effective date of the change for sales and use tax purposes.
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  2. (b) The commissioner shall provide and maintain a database of all sales and use tax rates for all counties, cities and towns of the jurisdictions that levy a tax pursuant to part 7 of this chapter. For the identification of the state, counties, cities and towns, codes corresponding to the rates must be provided according to Federal Information Processing Standards (FIPS) as developed by the National Institute of Standards and Technology.
  3. (c) The commissioner shall provide and maintain a database that assigns each five-digit and nine-digit zip code within the state to the proper tax rates and jurisdictions. If the zip code area includes more than one (1) local tax rate, the rate assigned to that area shall be the lowest rate otherwise applicable within the area.
  4. (d) The commissioner shall participate with other member states in the development of an address-based system for assigning taxing jurisdictions. The system shall meet the requirements developed pursuant to the federal Mobile Telecommunications Sourcing Act (4 U.S.C. § 119). If the commissioner develops an address-based assignment system pursuant to the Mobile Telecommunications Sourcing Act, a seller may use that system in place of the system provided for in subsection (c).
Backlinks (2)
History (5)
  • Acts 2001, ch. 312, § 1
  • 2003, ch. 357, § 73
  • 2004, ch. 959, § 68
  • 2005, ch. 311, § 1
  • 2007, ch. 602, §§ 51, 124.
Part 9 Transactions Subject to Sales and Use Taxes
§ 67-6-901. Determining whether a transaction is sourced to the state — Constitutional restriction on transaction tax — Florist sales sourcing requirements.
  1. (a) Notwithstanding another law to the contrary, this part applies in determining whether a transaction is sourced to this state under this chapter. This part applies regardless of the characterization of a product as tangible personal property, a digital good, a service, or other taxable product and applies only to determine a seller's obligation to pay or collect and remit a sales or use tax with respect to the seller's retail sale of a product. This part does not affect the obligation of a purchaser or lessee to remit tax on the use of the product to the taxing jurisdiction of that use.
  2. (b) This part does not impose tax on a transaction if that tax is prohibited by the United States Constitution or the Constitution of Tennessee.
  3. (c) Florist retail sales where orders taken by a florist are sent to a receiving florist for delivery to the purchaser's designee must be sourced in accordance with rules promulgated by the commissioner in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
  4. (d) Sales made through a marketplace facilitator's marketplace must be sourced in accordance with § 67-6-902.
  5. (e) Telecommunications services and ancillary services, as set out in § 67-6-905, must be sourced in accordance with that section.
History (1)
  • Acts 2023, ch. 377, § 30.
§ 67-6-902. Subsection definitions — Retail sale sourcing of out of state product — Lease or rental of tangible property imported into the state — Exceptions.
  1. (a)
    1. (1) For purposes of this subsection (a):
      1. (A) “Location” does not include a location that merely provided the digital transfer of the product sold; and
      2. (B) “Receive” or “receipt”:
        1. (i) Means:
          1. (a) Taking possession of tangible personal property;
          2. (b) Making first use of services; or
          3. (c) Taking possession or making first use of digital products, whichever comes first; and
        2. (ii) Does not include possession by a shipping company on behalf of the purchaser.
    2. (2) The retail sale, excluding lease or rental, of a product from out of state into this state is sourced as follows:
      1. (A) When the product is received by the purchaser at a business location of the seller, the sale is sourced to that business location;
      2. (B) When the product is not received by the purchaser at a business location of the seller, the sale is sourced to the location where receipt by the purchaser or the purchaser's donee as designated by the purchaser occurs, including the location indicated by instructions for delivery to the purchaser or the purchaser's donee, known to the seller;
      3. (C) When subdivisions (a)(2)(A) and (a)(2)(B) do not apply, the sale is sourced to the location indicated by an address for the purchaser that is available from the business records of the seller that are maintained in the ordinary course of the seller's business when use of that address does not constitute bad faith;
      4. (D) When subdivisions (a)(2)(A)–(a)(2)(C) do not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of that address does not constitute bad faith; and
      5. (E) When subdivisions (a)(2)(A)–(a)(2)(D) do not apply, or in the circumstance in which the seller is without sufficient information to determine which sourcing requirement in this subdivision (a)(2) applies, then the location is determined by the address from which tangible personal property was shipped, from which the digital good or the computer software delivered electronically was first available for transmission by the seller, or from which the service was provided.
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  2. (b)
    1. (1) For purposes of this subsection (b), “transportation equipment” means:
      1. (A) Locomotives and railcars that are utilized for the carriage of persons or property in interstate commerce;
      2. (B) Trucks and truck-tractors with a gross vehicle weight rating (GVWR) of ten thousand one pounds (10,001 lbs.) or greater, trailers, semi-trailers, or passenger buses that are:
        1. (i) Registered through the International Registration Plan; and
        2. (ii) Operated under authority of a carrier authorized and certificated by the United States department of transportation or another federal authority to engage in the carriage of persons or property in interstate commerce;
      3. (C) Aircraft that are operated by air carriers authorized and certificated by the United States department of transportation or another federal or foreign authority to engage in the carriage of persons or property in interstate or foreign commerce; and
      4. (D) Containers designed for use on and component parts attached or secured on the items set forth in subdivisions (b)(1)(A)–(b)(1)(C).
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    2. (2) The lease or rental of tangible personal property imported into this state is sourced as follows:
      1. (A) For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with subsection (a);
      2. (B)
        1. (i) Except as provided in subdivisions (b)(2)(C) and (b)(2)(D), for a lease or rental that requires recurring periodic payments, the first periodic payment is sourced the same as a retail sale in accordance with subsection (a). Periodic payments made subsequent to the first payment are sourced to the primary property location for each period covered by the payment;
        2. (ii) The primary property location is as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of that address does not constitute bad faith; and
        3. (iii) The property location must not be altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and services calls;
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      3. (C) For the lease or rental of motor vehicles, trailers, semi-trailers, or aircraft that do not qualify as transportation equipment and watercraft with a displacement of under fifty (50) tons, that requires recurring periodic payments, the first and each subsequent periodic payment is sourced to the primary property location. The primary property location is determined in accordance with subdivision (b)(2)(B); and
      4. (D) Notwithstanding the primary property location covered by a recurring periodic payment, the lease or rental of transportation equipment is sourced the same as a retail sale in accordance with subsection (a).
    3. (3) This subsection (b) does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis, or on the acquisition of property for lease.
Backlinks (1)
History (1)
  • Acts 2023, ch. 377, § 30.
§ 67-6-903. Sourcing of items manufactured in the state — Limited liability of lessor — Sale or repair of tangible personal property or software.
  1. (a) The sale, including lease or rental, of a product made from a place of business within the physical limits of this state where delivery is made by the seller or lessor to a purchaser or lessee within the physical limits of this state, or to a carrier or United States postal service location for delivery to a place within the physical limits of this state, is sourced to the seller's or lessor's place of business in this state.
  2. (b) The location of where the purchaser may take or use the product is not determinative of where the sale is sourced.
  3. (c) For the sale of a product made from a place of business within the physical limits of this state that is delivered by the seller to the purchaser or the purchaser's designee outside the physical limits of this state or to a carrier for delivery to a place outside the physical limits of this state, the sale is not sourced to this state.
  4. (d) For a lease or rental of property, excluding transportation equipment as defined in § 67-6-902(b)(1), delivered to the lessee or renter in this state that requires recurring periodic payments, the periodic payments made subsequent to the first payment that cover periods where the primary property location is no longer within the physical limits of this state are not sourced to this state. The lessor is not liable for the tax imposed under this chapter on the periodic payments that cover periods where the primary property location is no longer in this state. The primary property location is determined in accordance with § 67-6-902(b)(2)(B).
  5. (e) For the sale of repairing of tangible personal property or computer software; laundering or dry cleaning of tangible personal property; and installing of tangible personal property that remains tangible personal property after installation; and installing of computer software, made from a place of business within the physical limits of this state where the serviced tangible personal property or computer software is delivered by the seller to the purchaser or the purchaser's designee outside the physical limits of this state or to a carrier for delivery to a place outside the physical limits of this state, the sale is not sourced to this state.
Backlinks (1)
History (1)
  • Acts 2023, ch. 377, § 30.
§ 67-6-904. Section definitions.
  1. (a) For purposes of this section:
    1. (1) “Advertising and promotional direct mail” means printed material that is direct mail, for which the primary purpose is to attract public attention to a product, person, business, or organization, or to attempt to sell, popularize, or secure financial support for a product, person, business, or organization;
    2. (2) “Direct mail” has the same meaning as defined in § 67-6-102;
    3. (3) “Other direct mail”:
      1. (A) Means direct mail that is not advertising and promotional direct mail regardless of whether advertising and promotional direct mail is included in the same mailing; and
      2. (B) Includes, but is not limited to:
        1. (i) Transactional direct mail that contains personal information specific to the addressee, including, but not limited to, invoices, bills, statements of account, and payroll advices;
        2. (ii) Any legally required mailings, including, but not limited to, privacy notices, tax reports, and stockholder reports; and
        3. (iii) Other nonpromotional direct mail delivered to existing or former shareholders, customers, employees, or agents, including, but not limited to, newsletters and informational pieces; and
      3. (C) Does not include the development of billing information or the provision of a data processing service that is more than incidental; and
    4. (4) “Product” means tangible personal property, a product transferred electronically, or a service.
  2. (b) The sale of direct mail is sourced as follows:
    1. (1) For the sale of advertising and promotional direct mail and other direct mail made from a place of business in this state to a purchaser where delivery is made by the seller to a carrier or United States postal service location for distribution or delivery to direct mail recipients within the physical limits of this state, the sale is sourced to the seller's place of business;
    2. (2) To the extent the seller knows based on information provided by the purchaser showing the jurisdictions to which the direct mail will be delivered to recipients in another state, the portion of the sales price that equals the percentage of direct mail delivered to recipients in another state is not sourced to this state;
    3. (3) In lieu of providing the delivery information in accordance with subdivision (b)(2), a purchaser may provide the streamlined certificate of exemption to claim the direct mail exemption for the portion of the sales price that equals the percentage of direct mail delivered to recipients in another state; and
    4. (4) In the absence of bad faith, where the seller sourced the sale according to the delivery information provided by the purchaser in accordance with this section, the seller is not liable for tax if it is determined the purchaser provided incorrect delivery information.
  3. (c) This section does not impose tax on billing services or data processing services.
History (1)
  • Acts 2023, ch. 377, § 30.
§ 67-6-905. Source of sales of telecommunication services — Definitions.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1) “Air-to-ground radiotelephone service” means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft;
    2. (2) “Ancillary services” means services that are associated with, or incidental to, the provision of telecommunications services, including, but not limited to, detailed telecommunications billing service, directory assistance service, vertical service, and voice mail service;
    3. (3) “Call-by-call basis” means any method of charging for telecommunications services where the price is measured by individual calls;
    4. (4) “Communications channel” means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points;
    5. (5) “Conference bridging service”:
      1. (A) Means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number; and
      2. (B) Does not include the telecommunications services used to reach the conference bridge;
    6. (6) “Customer” means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunication service, but this provision only applies for the purpose of sourcing sales of telecommunications services under this section. “Customer” does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area;
    7. (7) “Customer channel termination point” means the location where the customer either inputs or receives the communications;
    8. (8) “Detailed telecommunications billing service” means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement;
    9. (9) “Directory assistance service” means an ancillary service of providing telephone number information and address information;
    10. (10) “End user” means the person who utilizes the telecommunication service. In the case of an entity, “end user” means the individual who utilizes the service on behalf of the entity;
    11. (11) “Home service provider” means the same as that term is defined in 4 U.S.C. § 124(5);
    12. (12) “Mobile telecommunications service” means the same as that term is defined in 4 U.S.C. § 124(7);
    13. (13) “Place of primary use” means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, “place of primary use” must be within the licensed service area of the home service provider;
    14. (14) “Post-paid calling service” means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to which a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service that would be a prepaid calling service except it is not exclusively a telecommunication service;
    15. (15) “Prepaid calling service” means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount;
    16. (16) “Prepaid wireless calling service” means a telecommunications service that provides the right to utilize mobile wireless service, as well as other non-telecommunications services, including the download of digital products delivered electronically, content and ancillary services, which must be paid for in advance, that is sold in predetermined units or dollars, of which the number declines with use in a known amount;
    17. (17) “Private communication service” means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels;
    18. (18) “Service address” means:
      1. (A) The location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid;
      2. (B) If the location in subdivision (a)(18)(A) is not known, service address means the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller; and
      3. (C) If the locations in subdivisions (a)(18)(A) and (a)(18)(B) are not known, the service address means the location of the customer's place of primary use;
    19. (19) “Vertical service” means an ancillary service that is offered in connection with one (1) or more telecommunications services, and that offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services; and
    20. (20) “Voice mail service”:
      1. (A) Means an ancillary service that enables the customer to store, send, or receive recorded messages; and
      2. (B) Does not include vertical services that the customer may be required to have in order to utilize the voice mail service.
  2. (b) Except for the defined telecommunication services in subsection (d), the sale of telecommunication service sold on a call-by-call basis shall be sourced to each level of taxing jurisdiction where the call:
    1. (1) Originates and terminates in that jurisdiction; or
    2. (2) Either originates or terminates and in which the service address is also located.
  3. (c) Except for the defined telecommunication services in subsection (d), a sale of telecommunications services sold on a basis other than a call-by-call basis and ancillary services are sourced to the customer's place of primary use.
  4. (d) The sale of the following telecommunication services shall be sourced to each level of taxing jurisdiction as follows:
    1. (1) A sale of mobile telecommunications services other than air-to-ground radiotelephone service is sourced to the customer's place of primary use as required by the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116-126);
    2. (2) A sale of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either:
      1. (A) The seller's telecommunications system; or
      2. (B) Information received by the seller from its service provider, where the system used to transport such signals is not that of the seller;
    3. (3) A sale of a private communication service is sourced as follows:
      1. (A) Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located;
      2. (B) Service where all customer termination points are located entirely within one (1) jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located;
      3. (C) Service for segments of a channel between two (2) customer channel termination points located in different jurisdictions and which segment of channel are separately charged is sourced fifty percent (50%) in each level of jurisdiction in which the customer channel termination points are located; and
      4. (D) Service for segments of a channel located in more than one (1) jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.
  5. (e) A sale of a prepaid calling service, or a sale of a prepaid wireless calling service, is sourced in accordance with:
    1. (1) Section 67-6-903 when sold from a place of business within the physical limits of this state; and
    2. (2) Section 67-6-902(a)(2) when sold from out of state into this state; provided, however, that, in the case of a sale of prepaid wireless calling service, the rule provided in § 67-6-902(a)(2)(E) includes as an option the location associated with the mobile telephone number.
Backlinks (2)
History (2)
  • Acts 2004, ch. 782, § 14
  • 2023, ch. 377, §§ 31, 32.
Chapter 7 Severance Taxes
Part 1 Coal Severance Tax
§ 67-7-101. “Coal products” — Defined.
  1. As used in this part, unless the context otherwise requires, “coal products” means coal ore and any other substance that might be severed from the earth by the process of producing salable coal, by whatever method of severance used.
History (7)
  • Acts 1972, ch. 795, § 2
  • 1973, ch. 12, § 1
  • 1973, ch. 96, § 2
  • 1974, ch. 690, §§ 1, 2
  • 1980, ch. 912, § 1
  • 1981, ch. 519, §§ 1, 2
  • T.C.A., § 67-5902.
§ 67-7-102. Administration.
  1. (a) Administration and collection of this tax shall be by the state of Tennessee in the same manner as other taxes are collected by the state for and on behalf of local governments, and the department of revenue may promulgate all rules and regulations necessary and reasonable for the administration of this part.
  2. (b) All administrative provisions of all laws contained in all the other chapters of this title relating to collection by the commissioner of all taxes, licenses, fees and interest and penalties therefor, including, but not limited to, chapter 1, part 14 of this title and all other requirements and duties imposed upon taxpayers therein, shall apply to all persons liable for taxes under this part.
  3. (c) The commissioner shall exercise the power and authority and perform all the duties with respect to taxpayers under this part as are provided in all the other chapters of this title, except where there is conflict, and then this part shall control.
History (3)
  • Acts 1972, ch. 795, § 1
  • 1973, ch. 96, § 1
  • T.C.A., § 67-5901.
§ 67-7-103. Tax levied — Lien created.
  1. (a) There is levied a severance tax on all coal products severed from the ground in Tennessee. The tax is levied upon the entire production in the state regardless of the place of sale or the fact that delivery may be made outside the state.
  2. (b) The tax shall accrue at the time the coal products are severed from the earth and in their natural or unprocessed state.
  3. (c) The tax levied shall be a lien upon all coal products severed in this state and upon all property from which they are severed, including, but not limited to, mineral rights of the producer, and such lien shall be entitled to preference over all judgments, encumbrances or liens whatsoever created.
History (7)
  • Acts 1972, ch. 795, §§ 1, 2
  • 1973, ch. 12, § 1
  • 1973, ch. 96, §§ 1, 2
  • 1974, ch. 690, §§ 1, 2
  • 1980, ch. 912, § 1
  • 1981, ch. 519, §§ 1, 2
  • T.C.A., §§ 67-5901, 67-5902.
§ 67-7-104. Measure of tax. [Current version. See second version of section with contingent amendment and Compiler's Notes.]
  1. The measure of the tax on all coal products severed from the ground in this state shall be:
    1. (1) On or after July 1, 2009, through June 30, 2011, fifty cents (50¢) per ton;
    2. (2) On or after July 1, 2011, through June 30, 2013, seventy-five cents (75¢) per ton; and
    3. (3) On or after July 1, 2013, one dollar ($1.00) per ton.
History (9)
  • Acts 1972, ch. 795, § 2
  • 1973, ch. 12, § 1
  • 1973, ch. 96, § 2
  • 1974, ch. 690, §§ 1, 2
  • 1980, ch. 912, § 1
  • 1981, ch. 519, §§ 1, 2
  • T.C.A., § 67-5902
  • Acts 1984, ch. 837, § 9
  • 2009, ch. 138, § 1.
§ 67-7-104. Measure of tax. [Second version with contingent amendment adding subsection (b). See first version of section and Compiler's Notes.]
  1. (a) The measure of the tax on all coal products severed from the ground in this state shall be:
    1. (1) On or after July 1, 2009, through June 30, 2011, fifty cents (50¢) per ton;
    2. (2) On or after July 1, 2011, through June 30, 2013, seventy-five cents (75¢) per ton; and
    3. (3) On or after July 1, 2013, one dollar ($1.00) per ton.
  2. (b) [Contingent amendment. See first version of section and Compiler's Notes.]
    1. (1) On or after the effective date of this subsection (b) [See Compiler's Notes], in addition to the tax payable under subdivision (a)(3), each operator shall remit an assessment in the following amount:
      1. (A) For coal that is severed from the ground in underground mining operations, the assessment shall be four cents ($0.04) per ton; and
      2. (B) For coal that is severed from the ground in surface coal mining and reclamation operations, the assessment shall be nine cents ($0.09) per ton.
    2. (2) The assessment shall be due and payable in the same manner as the coal severance tax under § 67-7-106.
    Backlinks (1)
History (10)
  • Acts 1972, ch. 795, § 2
  • 1973, ch. 12, § 1
  • 1973, ch. 96, § 2
  • 1974, ch. 690, §§ 1, 2
  • 1980, ch. 912, § 1
  • 1981, ch. 519, §§ 1, 2
  • T.C.A., § 67-5902
  • Acts 1984, ch. 837, § 9
  • 2009, ch. 138, § 1
  • 2021, ch. 548, § 13.
§ 67-7-105. Liability for tax.
  1. Every interested owner shall be liable for this tax to the extent of such owner's interest in such products. The owner shall become liable at the time the coal products are severed from the earth and ready for sale, whether before processing or after processing, as the case may be.
History (7)
  • Acts 1972, ch. 795, § 2
  • 1973, ch. 12, § 1
  • 1973, ch. 96, § 2
  • 1974, ch. 690, §§ 1, 2
  • 1980, ch. 912, § 1
  • 1981, ch. 519, §§ 1, 2
  • T.C.A., § 67-5902.
§ 67-7-106. Returns — Payment of tax.
  1. (a) The tax levied by this part shall be due and payable monthly on the first day of the month next succeeding the month in which the coal is severed from the soil.
  2. (b)
    1. (1) For the purpose of ascertaining the amount of tax payable, it is the duty of all operators to transmit to the commissioner, on or before the fifteenth day of the month next succeeding the month in which the tax accrues, a return upon forms provided by the commissioner.
    2. (2) A separate return shall be filed for each county from which coal is severed showing the month or period covered, the total number of tons of all coal products severed from each production unit operated, owned or controlled by the taxpayer during the period covered, the county in which produced, the amount of the tax, and such other information as the commissioner may require.
    3. (3) A copy of such separate return shall also be sent by the operator to the county trustee of the county from which the coal is severed.
  3. (c) The return shall be accompanied by a remittance covering the amount of tax due as computed by the taxpayer.
Backlinks (1)
History (5)
  • Acts 1972, ch. 795, § 3
  • 1973, ch. 12, § 2
  • 1973, ch. 96, § 3
  • 1979, ch. 70, § 1
  • T.C.A., § 67-5903.
§ 67-7-107. When tax levied becomes delinquent.
  1. The tax levied by this part shall become delinquent on the sixteenth day of the month next succeeding the month in which such tax accrues.
History (6)
  • Acts 1972, ch. 795, § 4
  • 1973, ch. 96, § 4
  • 1976, ch. 641, § 1
  • 1980, ch. 885, § 17
  • T.C.A., § 67-5904
  • Acts 1988, ch. 526, § 38.
§ 67-7-108. Violations — Criminal penalties.
  1. (a) Any person required by this part to make a return, pay a tax, keep records, or furnish information deemed necessary by the commissioner for the computation, assessment, or collection of the tax imposed by this part, who fails to make the return, pay the tax, keep the records, or furnish the information at the time required by law or regulation, in addition to other penalties provided by law, commits a Class C misdemeanor.
  2. (b) Any person who willfully or fraudulently makes and signs a return, not believing such return to be true and correct as to every material fact, commits a felony and is subject to the penalties prescribed for perjury under the law of this state.
  3. (c) For purposes of this section, “person” also includes an officer or employee of a corporation or a member or employee of a partnership who is under duty to perform the act in respect to which the violation occurs.
History (6)
  • Acts 1972, ch. 795, § 4
  • 1973, ch. 96, § 4
  • 1976, ch. 641, § 1
  • 1980, ch. 885, § 17
  • T.C.A., § 67-5904
  • Acts 1989, ch. 591, § 113.
§ 67-7-109. Injunctions.
  1. (a) If the nonpayment of the tax is due to an intent to evade payment, the person liable for such payment may be restrained and enjoined from severing coal from a production unit from which coal has been severed and sold and upon which the tax is due.
  2. (b) Restraint proceedings shall be instituted in the name of the state by the attorney general and reporter upon the request of the commissioner.
History (5)
  • Acts 1972, ch. 795, § 4
  • 1973, ch. 96, § 4
  • 1976, ch. 641, § 1
  • 1980, ch. 885, § 17
  • T.C.A., § 67-5904.
§ 67-7-110. Apportionment of revenue. [Current version. See second version of section with contingent amendment and Compiler's Notes.]
  1. (a) The tax shall be levied for the use and benefit of local governments only and all revenues collected from the tax, except deductions for administration and collection provided for in this part, shall be allocated to the county from which such coal products were severed.
  2. (b) All revenues collected under this part in a county in which coal products are severed, less an amount of one and one hundred twenty-five thousandths percent (1.125%) of the tax, which shall be retained by the department and credited to its current service revenue to cover the expenses of administration and collection, shall be remitted by the commissioner to that county in which the coal products were severed for the following specific purposes: one-half (½) of all revenues collected shall be used for the educational system or systems of the county, and the remaining one-half (½) of all revenues collected shall be used for highway and stream cleaning systems of the county.
  3. (c) Any adjustment of taxes, interest or penalty with any county that is deemed necessary in order to correct any error may be made on a subsequent disbursement to that county.
Backlinks (1)
History (10)
  • Acts 1972, ch. 795, §§ 1, 5
  • 1973, ch. 96, §§ 1, 5
  • 1976, ch. 641, § 2
  • 1980, ch. 912, § 2
  • T.C.A., §§ 67-5901, 67-5905
  • Acts 1984, ch. 837, § 9
  • 2003, ch. 355, § 45
  • 2005, ch. 500, § 8
  • 2006, ch. 989, § 13
  • 2009, ch. 138, § 2.
§ 67-7-110. Apportionment of revenue. [Second version with contingent amendment. See first version of section and Compiler's Notes.]
  1. (a) The tax shall be levied for the use and benefit of local governments only and all revenues collected from the tax, except deductions for administration and collection provided for in this part, shall be allocated to the county from which such coal products were severed.
  2. (b) All revenues collected under this part in a county in which coal products are severed, less an amount of one and one hundred twenty-five thousandths percent (1.125%) of the tax, which shall be retained by the department and credited to its current service revenue to cover the expenses of administration and collection, shall be remitted by the commissioner to that county in which the coal products were severed for the following specific purposes: one-half (½) of all revenues collected shall be used for the educational system or systems of the county, and the remaining one-half (½) of all revenues collected shall be used for highway and stream cleaning systems of the county.
  3. (c) Any adjustment of taxes, interest or penalty with any county that is deemed necessary in order to correct any error may be made on a subsequent disbursement to that county.
  4. (d) [Contingent amendment. See Compiler's Notes.] All of the moneys received from the payment of the assessment levied by § 67-7-104(b) shall be transferred to the treasurer for deposit in the coal mining protection fund, created by § 59-8-132, to be used for the administration and enforcement of the requirements of the Primacy and Reclamation Act of Tennessee, compiled in title 59, chapter 8, part 1.
Backlinks (1)
History (11)
  • Acts 1972, ch. 795, §§ 1, 5
  • 1973, ch. 96, §§ 1, 5
  • 1976, ch. 641, § 2
  • 1980, ch. 912, § 2
  • T.C.A., §§ 67-5901, 67-5905
  • Acts 1984, ch. 837, § 9
  • 2003, ch. 355, § 45
  • 2005, ch. 500, § 8
  • 2006, ch. 989, § 13
  • 2009, ch. 138, § 2
  • 2021, ch. 548, § 14.
Part 2 Taxation of Other Minerals
§ 67-7-201. Tax authorized — Use and benefit — Allocation.
  1. (a) Any county legislative body, by resolution, is authorized to levy a tax on all sand, gravel, sandstone, chert and limestone severed from the ground within its jurisdiction. The tax shall be levied for the use and benefit of the county only, to be allocated and applied to its county road fund, and all revenues collected from the tax, except deductions for administration and collection provided for in this part shall be allocated to the county.
  2. (b) Notwithstanding subsection (a), in any county having a population of not less than fourteen thousand nine hundred twenty-five (14,925) nor more than fourteen thousand nine hundred forty (14,940), according to the 1980 federal census or any subsequent federal census, the county legislative body may, by resolution adopted by a two-thirds (⅔) vote, allocate such revenues to the county road fund, the county general fund or any other fund of the county.
  3. (c) Any county legislative body that has authorized a tax under this part is further authorized to repeal such tax by adopting a resolution by a two-thirds (⅔) majority of its members. The tax levied under this part shall cease to be imposed at one minute past midnight (12:01 a.m.) on the first day of the month following such action and the resolution shall include such date and time. The repeal of the tax shall have no effect on tax liabilities that occurred prior to the effective date of repeal, or collection actions on such taxes subsequent to the date of repeal. The presiding officer of the county legislative body shall deliver a certified copy of such resolution to the department of revenue.
History (4)
  • Acts 1984, ch. 953, § 1
  • 1985, ch. 410, § 5
  • 1992, ch. 525, § 1
  • 1995, ch. 57, § 1.
§ 67-7-202. Definitions — Levy of tax — Exemptions.
  1. (a) “Sand, gravel, sandstone, chert and limestone” means sand, gravel, sandstone, chert and limestone severed from the earth in the process of producing a salable product by whatever means of severance used. It does not include, however, any mineral taxed under § 60-1-301 or part 1 of this chapter; any lime or limestone used for agricultural purposes; any lime or limestone used for pollution control or abatement purposes; any burnt lime, any hydrated lime or any lime or limestone used for the manufacture of cement, glass, fiberglass, rubber, paper, filler for paint, caulking, putty and roofing; rock dust for settling coal dust in underground mines or similar uses requiring chemical purity.
  2. (b) The tax shall be levied upon the entire production in the county regardless of the place of sale or the fact that delivery may be made outside the county, except that no tax shall be due on any sand, gravel, sandstone, chert and limestone sold for use outside this state.
  3. (c) Notwithstanding subsection (b), or any other provision to the contrary, any sand, gravel, sandstone, chert or limestone severed from the earth by the contractor and moved from one place to another on the same construction job site, or any sand, gravel, sandstone, chert, limestone, or any other kind of material when severed and used for fill by the contractor, whether from the same construction or job site or any site other than a commercial quarry, shall be exempt from mineral severance tax under this chapter.
History (3)
  • Acts 1984, ch. 953, § 2
  • 1985, ch. 410, §§ 1, 5
  • 1991, ch. 76, § 1.
§ 67-7-203. Rate of tax — Liability of owners — Payment of tax.
  1. (a) The rate of the tax shall be set by the county legislative body, but shall not exceed fifteen cents (15¢) per ton on sand, gravel, sandstone, chert or limestone severed from the ground in the county.
  2. (b) Every interested owner shall become liable at the time the sand, gravel, sandstone, chert or limestone is severed from the earth and ready for sale.
  3. (c)
    1. (1) The tax shall be payable at the time of sale and delivery.
    2. (2) The department of revenue shall use the accounting principle known as “first in-first out” in determining the tax payable on stockpiles or inventories of sand, gravel, sandstone, chert or limestone existing on the effective date of the tax in the county.
History (2)
  • Acts 1984, ch. 953, § 2
  • 1985, ch. 410, §§ 5, 7.
§ 67-7-204. Administration and collection of tax.
  1. Administration and collection of this tax shall be by the department, which has the power to promulgate all rules and regulations necessary and reasonable for the administration of this part.
History (2)
  • Acts 1984, ch. 953, § 1
  • 1985, ch. 410, § 5.
§ 67-7-205. Returns.
  1. For the purpose of ascertaining the amount of tax payable, it is the duty of all operators in the county to transmit to the department on or before the fifteenth day of the month next succeeding the month in which the tax accrues a return upon the forms provided by the department. The return shall show the month or period covered, the total number of tons of each type of sand, gravel, sandstone, chert and limestone sold from each production unit operated, owned or controlled by the taxpayer during the period covered, the amount of the tax and such information as the department may require. The return shall be accompanied by a remittance covering the amount of tax due as computed by the taxpayer.
History (2)
  • Acts 1984, ch. 953, § 3
  • 1985, ch. 410, § 5.
§ 67-7-206. When tax levied becomes delinquent — Interest and penalties.
  1. (a) The tax levied by this part shall become delinquent on the sixteenth day of the month next succeeding the month in which such tax accrues.
  2. (b) All interest and penalties collected with respect to the tax imposed by this part shall be retained by the department to help defray the expenses of administration and collection.
History (3)
  • Acts 1984, ch. 953, § 4
  • 1985, ch. 410, § 5
  • 1988, ch. 526, § 39.
§ 67-7-207. Disposition of taxes, interest and penalties — Adjustments.
  1. (a) All revenues collected from the severance of sand, gravel, sandstone, chert and limestone in the county, less an amount to cover the expenses of administration and collection and all of the interest and penalties collected, which shall be retained by the department of revenue and credited to its current service revenue to cover the expenses of administration and collection, shall be remitted quarterly to the county trustee as soon as practical following the end of a calendar quarter.
  2. (b) These revenues shall become a part of the county road fund of the county, and shall be used for the construction, maintenance and repair of the county system.
  3. (c) Any adjustment of taxes, interest or penalties that is necessary to adjust any error in collection or disbursement may be made at a subsequent collection or disbursement.
History (2)
  • Acts 1984, ch. 953, § 5
  • 1985, ch. 410, § 5.
§ 67-7-208. Tax inapplicable as to certain existing contracts.
  1. (a) Any tax levied by authority of this part shall not apply to any sand, gravel, sandstone, chert and limestone severed to meet the obligations of any written contract for sale of the product entered into prior to June 5, 1984.
  2. (b) Any sand, gravel, sandstone, chert or limestone that has been severed and on which any severance tax has accrued prior to June 5, 1984, in the county in which the severance has occurred shall be exempt from this part, if such tax has been paid.
History (2)
  • Acts 1984, ch. 953, §§ 6, 7
  • 1985, ch. 410, § 5.
§ 67-7-209. Conflicting private or local acts.
  1. Any private or local acts in conflict with this part are repealed.
History (2)
  • Acts 1984, ch. 953, § 9
  • 1985, ch. 410, § 5.
§ 67-7-212. Local approval required — Collection of tax — Existing private acts.
  1. (a) The tax authorized by this part shall be levied pursuant to this part in any county upon the adoption of a resolution by a two-thirds vote of the county legislative body of such county. The presiding officer of the county legislative body shall certify a copy of the resolution to the secretary of state and the commissioner of revenue.
  2. (b) In addition, no tax shall be collected by the department of revenue pursuant to such county legislative action until the first day of a month occurring at least thirty (30) days after the receipt of a certified copy of such action by the department.
  3. (c) Any county legislative body that has by private act enacted prior to June 5, 1984, levied a tax on the severance of sand, gravel, sandstone, chert or limestone may continue such tax at a rate not to exceed the rate established in this part, and such private act shall remain in force and effect in such county for all other purposes; provided, that any adjustment required by this part, in the rate effective in such county, shall take effect on the first day of the month following June 5, 1985.
History (1)
  • Acts 1985, ch. 410, §§ 4, 5.
Chapter 8 Transfer Taxes
Part 1 Gift Tax [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
§ 67-8-101. Taxable transfers. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a)
    1. (1) Except as otherwise provided by subdivision (a)(2), a tax is imposed upon the transfer by gift during any calendar year by any person of the following property, or any interest therein:
      1. (A) When the transfer is from a resident of this state:
        1. (i) Real property situated within this state;
        2. (ii) Tangible personal property, except such as has an actual situs without this state;
        3. (iii) All intangible personal property; and
      2. (B) When the transfer is from a nonresident of this state:
        1. (i) Real property situated within this state; and
        2. (ii) Tangible personal property that has an actual situs within this state.
    2. (2) No tax shall be imposed upon the transfer by gift made by any person on or after January 1, 2012; provided, however, this subdivision (a)(2) shall not be construed to absolve any taxpayer of liability for any tax duly imposed by this section, during any tax year that began prior to January 1, 2012.
    Backlinks (1)
  2. (b) Property in which a person holds a qualifying income interest for life, which is included for taxation pursuant to subsection (e), shall be treated as a taxable transfer of such property by such person.
  3. (c) The tax shall apply whether a gift is in trust or otherwise, and whether the gift is direct or indirect. The relinquishment or termination, other than by the donor's death, of any power to revest in the donor the property theretofore transferred by the donor shall be considered to be a transfer by the donor by gift of the property, subject to such power and shall be taxable under this part, and any payment of the income from the property to a beneficiary other than the donor shall be considered to be a transfer by the donor of such income by gift and shall be taxable under this part.
  4. (d) Where a donor transfers an unqualified and unrestricted gift to a person in trust, such a transfer is a gift of a present interest where the trust instrument provides that the beneficiary has the power to demand immediate possession and enjoyment of such gift in the calendar year in which such gift is given, and contains provisions to notify such beneficiary of the right to make such demand. Where the beneficiaries of such trust are minors, or otherwise lack the capacity to make legally binding agreements, the parent or parents, other than the settlor of such trust, may exercise the right to demand possession and enjoyment in the calendar year in which the gift is given as natural guardian for and on behalf of such minor or other such beneficiary, even though such parent or parents may be a party to the trust instrument.
  5. (e)
    1. (1) Any disposition of all or part of a “qualifying income interest for life,” as defined in § 2056(b)(7)(B)(ii) of the Internal Revenue Code (26 U.S.C. § 2056(b)(7)(B)(ii)), in any property to which this subsection (e) applies shall be treated as a transfer of such property.
    2. (2) This subsection (e) applies to any property, if a deduction was allowed with respect to the transfer of such property to the donor:
      1. (A) Under § 67-8-315(a)(6) by reason of its incorporation of § 2056(b)(7) of the Internal Revenue Code (26 U.S.C. § 2056(b)(7)); or
      2. (B) Under § 67-8-105(a) by reason of its incorporation of § 2523(f) of the Internal Revenue Code (26 U.S.C. § 2523(f)).
    3. (3) For purposes of taxation under this subsection (e), the classification of beneficiaries provided for by § 67-8-102 shall be determined by reference to the relationship of the beneficiaries of the remainder interest named in the instrument to the decedent or person creating such remainder interest.
    Backlinks (2)
  6. (f) Transfers for educational expenses or medical expenses that are not treated as a transfer of property by gift pursuant to § 2503(e) of the Internal Revenue Code (26 U.S.C. § 2503(e)), shall not be treated as a transfer of property by gift for purposes of this part.
  7. (g) Where property is transferred for less than an adequate and full consideration in money or money's worth, then the amount by which the value of the property exceeded the value of the consideration shall, for the purpose of the tax imposed by this chapter, be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year.
  8. (h) If a person who would otherwise be the recipient of property by gift, inheritance or other gratuitous transfer disclaims all or part of the property in accordance with [former] § 31-1-103 [repealed], such disclaimer shall not cause the disclaimant to be treated as having made a taxable transfer under this section.
History (10)
  • Acts 1939, ch. 137, §§ 1, 2, 4, 6
  • C. Supp. 1950, §§ 1295.1, 1295.2, 1295.4, 1295.6 (Williams, §§ 1328.1, 1328.2, 1328.4, 1328.6)
  • Acts 1965, ch. 19, § 1
  • 1977, ch. 463, § 1
  • 1978, ch. 731, § 17
  • 1980, ch. 759, § 1
  • 1983, ch. 73, §§ 9-11
  • T.C.A. (orig. ed.), §§ 67-2501, 67-2502, 67-2504, 67-2505(c)
  • Acts 1986, ch. 705, § 2
  • 2012, ch. 1085, § 1.
§ 67-8-102. Classification of donees. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. The following named donees shall be included in:
    1. (1) Class A: Husband, wife, son, daughter, lineal ancestor, lineal descendant, brother, sister, stepchild, son-in-law or daughter-in-law. If a person has no child or grandchild, a niece or nephew of such person and the issue of such niece or nephew shall be a donee within this class. For the purposes of this part, a person who is related to the donor as a result of legal adoption shall be considered to have the same relationship as a natural lineal ancestor, lineal descendant, brother, sister or stepchild; and
    2. (2) Class B: Any other relative, person, association or corporation not specifically designated in Class A.
Backlinks (1)
History (7)
  • Acts 1939, ch. 137, § 4
  • C. Supp. 1950, § 1295.4 (Williams, § 1328.4)
  • Acts 1965, ch. 19, § 1
  • 1978, ch. 731, § 17
  • 1983, ch. 73, § 11
  • T.C.A. (orig. ed.), § 67-2505(d)
  • Acts 1996, ch. 866, § 1.
§ 67-8-103. Deductible gifts. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) The tax provided for in this part shall be computed upon net gifts made during the calendar year.
  2. (b) For the purposes of this part, “net gifts” means the total amount of gifts made during such year, less the value of all property transferred to the United States, the state of Tennessee, or to any political subdivision thereof, any public institution therein for exclusively public purposes, or any corporation, society, association or trust therein, or in a state that grants a like exemption to such institutions in Tennessee, formed for charitable, educational, scientific, or religious purposes; provided, that the property so transferred is to be used exclusively for one (1) or more of such purposes.
  3. (c) No deduction shall be allowed on account of property transferred to any such beneficiary, if any officer, member, shareholder or employee thereof shall receive, or be entitled to receive, any benefit or pecuniary profit from the operation thereof, except reasonable compensation in effecting one (1) or more of such purposes, or as beneficiaries of a strictly charitable purpose; or if the organization of any such corporation, society, association, or trust for any of the foregoing avowed purposes be a mere guise or pretense for directly or indirectly making for it or any of its officers, members, shareholders or employees any other pecuniary profit; or if it be not in good faith organized or conducted for one (1) or more of such purposes.
History (4)
  • Acts 1939, ch. 137, § 3
  • C. Supp. 1950, § 1295.3 (Williams, § 1328.3)
  • Acts 1959, ch. 156, § 1
  • T.C.A. (orig. ed.), § 67-2503.
§ 67-8-104. Standard exemptions. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a)
    1. (1) There shall be allowed against the net gifts made during any calendar year a maximum single exemption of ten thousand dollars ($10,000) against that portion of the net gifts going to donees of Class A, and a maximum single exemption of five thousand dollars ($5,000) against that portion of the net gifts going to donees of Class B.
    2. (2) In the event the aggregate net gifts made to donees of Class A for any calendar year exceed ten thousand dollars ($10,000), or the aggregate net gifts made to donees of Class B for any calendar year exceed five thousand dollars ($5,000), the tax shall be applicable only to the extent that the gifts, other than gifts of future interests in property, to each:
      1. (A) Class A donee exceed the following amounts:
        1. (i) Gifts made before 1984 — the sum of three thousand dollars ($3,000);
        2. (ii) Gifts made in 1984 — the sum of five thousand dollars ($5,000);
        3. (iii) Gifts made in 1985 — the sum of seven thousand dollars ($7,000);
        4. (iv) Gifts made after 1985 — the sum of ten thousand dollars ($10,000); and
      2. (B) Class B donee exceed three thousand dollars ($3,000).
  2. (b) No part of a gift to an individual who has not attained twenty-one (21) years of age on the date of such transfer shall be considered a gift of a future interest in property for purposes of subsection (a), if the property and the income from the property:
    1. (1) May be expended by, or for the benefit of, the donee before the donee's attaining twenty-one (21) years of age; and
    2. (2) Shall, to the extent not so expended:
      1. (A) Pass to the donee on the donee's attaining twenty-one (21) years of age; and
      2. (B) In the event the donee dies before attaining twenty-one (21) years of age, be payable to the estate of the donee or as the donee may appoint under a general power of appointment as defined in § 2514(c) of the Internal Revenue Code (26 U.S.C. § 2514(c)).
  3. (c) For the purposes of this section, the standard exemption amount allowable for gifts to Class A donees shall increase each year by the same amount, if any, that the annual exclusion amount for federal gift taxation purposes increases.
  4. (d) All contributions or distributions made to, or on behalf of, beneficiaries under any college education savings plan authorized by title 49, chapter 7, part 8 or 9, by federal law, or by the laws of another state, are exempt from all taxation under this chapter. This exemption shall include, but is not limited to, contributions to, and distributions from, plans defined in 26 U.S.C. § 529, and accounts properly designated as education savings accounts, education IRAs, or future tuition payment plans, however described.
Backlinks (4)
History (9)
  • Acts 1939, ch. 137, § 4
  • C. Supp. 1950, § 1295.4 (Williams, § 1328.4)
  • Acts 1965, ch. 19, § 1
  • 1978, ch. 731, § 17
  • 1983, ch. 73, § 11
  • T.C.A. (orig. ed.), § 67-2505(a), (b)
  • Acts 1998, ch. 897, § 1
  • 2002, ch. 688, § 1
  • 2005, ch. 499, § 1.
§ 67-8-105. Gifts between or by spouses. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) Where a donor transfers during the calendar year by gift an interest in any property specified in § 67-8-101(a) or (b) to a donee who at the time of the gift is the donor's spouse, there shall be allowed as a deduction, in computing taxable gifts an amount equal to the gift. Section 2523(b)-(g) of the Internal Revenue Code (26 U.S.C. § 2523(b)-(g)), shall be applicable to this deduction; provided, that the election specified in § 2523(f) of the Internal Revenue Code (26 U.S.C. § 2523(f)), is made to the department of revenue; and provided further, that the reference to “subsection (a)” in paragraph (1)(A) of § 2523(f) shall be treated as meaning the first sentence of this subsection (a).
    Backlinks (2)
  2. (b) A gift made by one (1) spouse to any person other than the donor's spouse shall, for purposes of this chapter, be considered as made one-half (½) by the donor and one-half (½) by the donor's spouse. This subsection (b) shall not apply with respect to a gift by a spouse of an interest in property, if the donor creates in the donor's spouse a general power of appointment, as defined in § 2514(c) of the Internal Revenue Code (26 U.S.C. § 2514(c)), over such interest. For purposes of this subsection (b), an individual shall be considered as the spouse of another individual only if the spouse is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. The liability for gift tax with respect to gifts made under this subsection (b) shall be joint and several between the spouses. This subsection (b) shall apply only if both spouses have signified, under rules promulgated by the commissioner, their consent to the application of this subsection (b) in the case of all such gifts made during the calendar year by either while married to the other.
History (7)
  • Acts 1939, ch. 137, § 4
  • C. Supp. 1950, § 1295.4 (Williams, § 1328.40)
  • Acts 1965, ch. 19, § 1
  • 1978, ch. 731, § 17
  • 1983, ch. 73, § 11
  • T.C.A. (orig. ed.), § 67-2505(e), (f)
  • Acts 1993, ch. 483, § 1.
§ 67-8-106. Tax rates. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) The tax imposed by this part with respect to gifts made prior to 1984 shall be computed at the following rates:
    1. CLASS A
      1. 1.4 percent on amounts from $10,000 to $25,000;
      2. 2 percent on the next $25,000 or part thereof;
      3. 4 percent on the next $50,000 or part thereof;
      4. 5.5 percent on the next $200,000 or part thereof;
      5. 6.5 percent on the next $200,000 or part thereof;
      6. 9.5 percent on the excess over $500,000.
    2. CLASS B
      1. 6.5 percent on amounts from $5,000 to $50,000;
      2. 9.5 percent on the next $50,000 or part thereof;
      3. 12 percent on the next $50,000 or part thereof;
      4. 13.5 percent on the next $50,000 or part thereof;
      5. 16 percent on the next $50,000 or part thereof;
      6. 20 percent on the excess over $250,000.
  2. (b) The tax imposed by this part with respect to gifts made after 1983 shall be computed at the following rates:
    1. CLASS A
      1. 5.5 percent on the amount of net taxable gifts up to $40,000;
      2. 6.5 percent on the next $200,000 or part thereof;
      3. 7.5 percent on the next $200,000 or part thereof;
      4. 9.5 percent on the excess over $440,000.
    2. CLASS B
      1. 6.5 percent on the amount of net taxable gifts up to $50,000;
      2. 9.5 percent on the next $50,000 or part thereof;
      3. 12 percent on the next $50,000 or part thereof;
      4. 13.5 percent on the next $50,000 or part thereof;
      5. 16 percent on the excess over $200,000.
History (5)
  • Acts 1939, ch. 137, § 5
  • C. Supp. 1950, § 1295.5 (Williams, § 1328.5)
  • Acts 1967, ch. 133, § 1
  • 1983, ch. 73, § 12
  • T.C.A. (orig. ed.), § 67-2506.
§ 67-8-107. Valuation of gift. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) For the purposes of the tax imposed by this part, all property, real and personal, shall be appraised at its full and true value at the time of the making of the gift. Stocks and bonds listed on recognized exchanges shall be appraised by ascertaining their quoted value on the date of the making of the gift, or on the nearest business day of such exchange to such date.
  2. (b) The value of every future, contingent, or limited estate, income, interest or annuity for any life or lives in being shall, so far as possible, be determined by the rule, method and standard of mortality and of value set forth in the actuarial tables of mortality in use by the internal revenue service for gift tax purposes at the time of the gift. The value of the interest remaining after any such temporary interest shall be determined by deducting the computed value of the temporary estate from the value of the entire property in which such interest exists.
  3. (c) In the event the internal revenue service issues regulations at any time that provide for an election between tables, such election shall be available to the donor at the same time and in the same manner with respect to the state gift tax return, and shall be allowed by the commissioner upon the filing of a duplicate copy of the election filed with the internal revenue service.
History (5)
  • Acts 1939, ch. 137, §§ 8, 9
  • C. Supp. 1950, §§ 1295.8, 1295.9 (Williams, §§ 1328.8, 1328.9)
  • Acts 1978, ch. 731, § 18
  • T.C.A. (orig. ed.), §§ 67-2507, 67-2508
  • Acts 1984, ch. 678, §§ 1, 3.
§ 67-8-108. Administrative powers of commissioner — Assistants. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) The commissioner of revenue, hereinafter called the “commissioner,” has full supervision of the administration and enforcement of this part and of the collection of all taxes imposed thereunder.
  2. (b) The commissioner shall make such rules and regulations as may be necessary for its proper interpretation and enforcement.
  3. (c) The commissioner is empowered to call upon other departments of state government for such information and assistance as the commissioner may deem necessary.
  4. (d) The commissioner has the power to compel the attendance of witnesses and the production of evidence, by subpoena, to administer oaths and to take testimony in relation to any matter under this part.
  5. (e) The commissioner may designate such deputies, appraisers, agents and other assistants as may be necessary for carrying out the full purpose and intent of this part. Such deputies, appraisers, agents and assistants, so designated by the commissioner, are empowered to represent the commissioner in inventorying and appraising property transferred by gift, and to perform such duties as are, by this part, required of the commissioner, including the power to issue subpoenas and administer oaths, and shall make bonds for the faithful performance of their duties, such bonds to be in such amounts and with such surety or sureties as the commissioner may prescribe.
History (4)
  • Acts 1939, ch. 137, § 10
  • C. Supp. 1950, § 1295.10 (Williams, § 1328.10)
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), §§ 67-2509, 67-2510.
§ 67-8-109. Records and forms. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. The commissioner is empowered to prescribe such forms as may be necessary under this part and shall keep such records as are indicated by good accounting practice. The commissioner may by general regulations prescribe how much and what portion of the commissioner's records shall be open to the inspection of the public and how much and what portion shall be held as confidential, and may exchange information with the United States government or with other state governments under reciprocal arrangements made and approved by the commissioner.
History (3)
  • Acts 1939, ch. 137, § 18
  • C. Supp. 1950, § 1295.18 (Williams, § 1328.18)
  • T.C.A. (orig. ed.), § 67-2523.
§ 67-8-110. Returns. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) The tax imposed under this part shall be paid by the donor. Any person who, during any calendar year, makes any transfers by gift, except those that under § 67-8-104 are exempt from tax liability, shall, on or before April 15 following the close of such calendar year, make out and send to the commissioner, on forms prescribed by the commissioner, a return executed under penalty of perjury setting out in detail:
    1. (1) A description of all the property transferred by gift during the preceding calendar year and a statement of the value of the property transferred at the time of such transfer;
    2. (2) The name, age and address of the donee, and the relationship of the donee to the donor;
    3. (3) The deductions and exemptions claimed and allowable; and
    4. (4) Such other information as may be required by the commissioner.
  2. (b) If for any calendar year tax is paid under this part with respect to any person by reason of property treated as transferred by such person under § 67-8-101(e), such person shall be entitled to recover from the person receiving the property the amount by which the total tax for such year under this part exceeds the total tax that would have been payable under this part for such year, if the value of such property had not been taken into account for purposes of this part.
  3. (c) The making of a false return with intent to defeat the tax constitutes perjury.
  4. (d)
    1. (1) The commissioner may, upon written application by the taxpayer showing good cause, grant additional time within which the return may be filed.
    2. (2) There shall, however, be added to the amount of tax due, interest, as provided by § 67-1-801, from the regular statutory due date until the date paid.
    3. (3) No penalty shall be assessed when the return is made and the full amount of tax is paid on or before the extended due date.
    4. (4) Any return and payment made subsequent to the extended due date shall, however, be subject to penalty and any other late charges without regard to the period allowed by the extension.
Backlinks (1)
History (9)
  • Acts 1937, ch. 137, § 11
  • C. Supp. 1950, § 1295.11 (Williams, § 1328.11)
  • Acts 1959, ch. 51, § 1
  • 1970, ch. 500, §§ 1, 2
  • 1978, ch. 731, §§ 19, 20
  • 1983, ch. 73, § 14
  • T.C.A. (orig. ed.), §§ 67-2511 — 67-2513
  • Acts 1988, ch. 526, § 40
  • 1989, ch. 125, § 1.
§ 67-8-111. Payment deadline. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. The tax imposed by this part for any calendar year shall be paid on or before April 15 following the close of such calendar year.
Backlinks (1)
History (9)
  • Acts 1939, ch. 137, §§ 12, 19, 20
  • C. Supp. 1950, §§ 1295.12, 1295.19, 1295.20 (Williams, §§ 1328.12, 1328.19, 1328.20)
  • Acts 1959, ch. 51, § 1
  • 1970, ch. 500, §§ 1, 2
  • 1980, ch. 885, § 9
  • T.C.A. (orig. ed.), §§ 67-2514 — 67-2516
  • Acts 1985, ch. 396, § 3
  • 1988, ch. 526, § 41
  • 1989, ch. 186, § 4.
§ 67-8-112. Determination of tax by commissioner. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a)
    1. (1) As soon as practicable after the return required by § 67-8-110 is filed, the commissioner shall examine it and determine the correct amount of the tax.
    2. (2) If the required return is not filed by the donor on or before the date due, the commissioner shall determine the amount of the tax upon the basis of any information the commissioner may possess or obtain.
    3. (3) Whenever in the judgment of the commissioner it is deemed necessary, the commissioner may require any person, by notice served upon such person by mail, to render under oath such statements or to reveal such information and records as the commissioner deems sufficient to show whether or not such person is liable for tax under this part.
  2. (b) As used in this part, “deficiency” means:
    1. (1) The amount by which the tax imposed by this part exceeds the amount shown as the tax by the donor upon the donor's return; or
    2. (2) If no amount is shown as the tax by the donor upon the donor's return, or if no return is made by the donor, the correct amount of the tax.
  3. (c)
    1. (1) If the commissioner, in determining the correct amount of the tax in accordance with subsection (a), determines that there is a deficiency in respect of the tax imposed by this part, the commissioner shall send notice of such deficiency to the donor by mail and shall make demand for the amount of such deficiency, which amount shall be paid by the donor.
    2. (2) Such deficiency regardless of when paid by the donor, shall, for purposes of computing interest and penalty on the deficiency, be deemed to have been due on the due date provided in § 67-8-111, that is, April 15 following the close of the calendar year.
History (4)
  • Acts 1939, ch. 137, §§ 13-15
  • C. Supp. 1950, §§ 1295.13-1295.15 (Williams, §§ 1328.13-1328.15)
  • Acts 1959, ch. 51, § 1
  • T.C.A. (orig. ed.), §§ 67-2517 — 67-2519.
§ 67-8-113. Distress warrant. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. The commissioner may issue a distress warrant for the collection of the tax imposed under this part, together with interest and penalty on the tax in accordance with § 67-4-110.
History (3)
  • Acts 1939, ch. 137, § 19
  • C. Supp. 1950, § 1295.19 (Williams, § 1328.19)
  • T.C.A. (orig. ed.), § 67-2520.
§ 67-8-115. Liability of donee. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. If the tax imposed under this part is not paid by the donor when due, and if a distress warrant directed against the property of such donor has been returned nulla bona, the donee of any gift shall be personally liable for such tax to the extent of the value of such gift.
History (4)
  • Acts 1939, ch. 137, § 17
  • C. Supp. 1950, § 1295.17 (Williams, § 1328.17)
  • Acts 1973, ch. 368, § 3
  • T.C.A. (orig. ed.), § 67-2522.
§ 67-8-116. Taxpayer's remedies. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. (a) If, in the determination of the existence of a deficiency, the commissioner appraises property at a value higher than that thought by the donor to be its true value, the donor shall have a right to file with the commissioner, within ninety (90) days from the date of the receipt of the notice of deficiency, an appeal from such appraisal, addressed to a board composed of the governor, the state treasurer, the secretary of state, the comptroller of the treasury and the commissioner, which board shall have authority to consider the exceptions filed, hear proof and determine the valuations in dispute, and the findings by a majority vote of the board shall be conclusive as to all parties in interest, subject only to the constitutional right of review in the courts.
  2. (b) The procedure established by this section for review of the appraisal of the commissioner by the designated board shall apply only if the issue of valuation of the gift is the only objection to be raised to the assessment. If this procedure for review is selected by the donor, no challenge to any legal issues that might be raised concerning the gift tax assessment shall be entertained in any court or forum. In all cases in which the donor seeks to challenge an assessment under this section on any ground other than valuation, the entire proceeding, including issues of valuation, must be brought in accordance with §§ 67-1-1801 and 67-1-1802.
  3. (c) In order for any person who seeks review of an appraisal by the designated board to obtain a stay of proceedings or action for the collection of the assessed tax, the person must file a complaint in chancery court seeking a stay until final determination of the review by the designated board, with a copy of the petition for review by the board attached, and must do those things necessary to obtain a stay under § 67-1-1801.
Backlinks (1)
History (6)
  • Acts 1939, ch. 137, §§ 16, 19
  • C. Supp. 1950, §§ 1295.16, 1295.19 (Williams, §§ 1328.16, 1328.19)
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), §§ 67-2521, 67-2524
  • Acts 1984, ch. 578, § 2
  • 1986, ch. 749, § 20.
§ 67-8-117. Estate and inheritance taxes unimpaired. [Not applicable to any transfer by gift made on or after January 1, 2012, see § 67-8-118.]
  1. This part shall not be construed impliedly to repeal or modify the Tennessee Inheritance Tax Law, compiled in parts 3-5 of this chapter, or the Tennessee Estate Tax Law, compiled in part 2 of this chapter, but shall be construed in pari materia with such laws.
History (3)
  • Acts 1939, ch. 137, § 21
  • C. Supp. 1950, § 1295.21 (Williams, § 1328.21)
  • T.C.A. (orig. ed.), § 67-2526.
§ 67-8-118. Applicability.
  1. This part does not apply to any transfer by gift made on or after January 1, 2012.
Backlinks (1)
History (1)
  • Acts 2012, ch. 1085, § 2.
Part 2 Tennessee Estate Tax Law
§ 67-8-201. Short title.
  1. This part shall be known and may be cited as the “Tennessee Estate Tax Law.”
History (5)
  • Acts 1929 (Ex. Sess.), ch. 23, § 1
  • mod. Code 1932, § 1296
  • modified
  • Acts 1967, ch. 150, § 1
  • T.C.A. (orig. ed.), § 30-1701(a).
§ 67-8-202. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Credit” means the maximum credit for any estate, inheritance, legacy, or succession taxes paid to any state or territory or the District of Columbia, allowable with respect to the gross federal estate tax by § 2011 of the Internal Revenue Code of 1954 (26 U.S.C. § 2011), the maximum credit, however, to be reduced in the proportion that the amount of the nontaxable property bears to the amount of the entire estate of the decedent;
    2. (2) “Decedent” means any person who at the time of death is a domiciliary of the state of Tennessee or who owned real estate situated within this state or tangible personal property having actual situs within this state;
    3. (3) “Estate” means the entire estate, and/or interest in the estate, of the decedent, that is subject to or liable for the payment of the federal estate tax before deducting any losses or exemptions in accordance with the Internal Revenue Code of 1954;
    4. (4) “Executor” includes administrator, and any other person liable for the payment of the federal estate tax;
    5. (5) “Federal estate tax” means the tax imposed by chapter 11 of the Internal Revenue Code of 1954 (26 U.S.C. § 2001 et seq.);
    6. (6) “Nontaxable property” means all parts of the estate or interest in the estate other than the Tennessee estate;
    7. (7) “State taxes” means the aggregate estate, inheritance, succession, collateral inheritance and/or legacy taxes paid to any state, territory or the District of Columbia, including, also, such taxes of any of those kinds as are imposed by the state of Tennessee other than the Tennessee estate tax imposed by this part, allowable in computing the maximum credit under § 2011 of the Internal Revenue Code of 1954 (26 U.S.C. § 2011), except such taxes of any of the above kinds or with respect to nontaxable property of the decedent;
    8. (8) “Tennessee estate” means such part of the estate, or interest in the estate, the transfer of which is within the power of the state of Tennessee to subject to the Tennessee estate tax; and
    9. (9) “Tennessee estate tax” means the tax imposed by this part.
Backlinks (2)
History (7)
  • Acts 1929 (Ex. Sess.), ch. 23, § 1
  • mod. Code 1932, § 1296
  • modified
  • Acts 1967, ch. 150, § 1
  • 1983, ch. 73, § 15
  • T.C.A. (orig. ed.), § 30-1701(b)-(j)
  • Acts 1992, ch. 1003, § 1.
§ 67-8-203. Construction with federal law.
  1. (a) In the application of this part, chapter 11 of the Internal Revenue Code of 1954 (26 U.S.C. § 2001 et seq.), or of any amendment thereto, or of any substituted act, insofar as may be necessary, shall be applied to the same extent as if the provisions were set forth in this part.
  2. (b) Except as otherwise provided in this part, this part shall become of no effect in respect to the Tennessee estate of persons who died subsequent to the effective date of the repeal of chapter 11 of the Internal Revenue Code of 1954, or of the provisions thereof allowing the credit.
  3. (c)
    1. (1) If chapter 11 of the Internal Revenue Code of 1954 is amended or repealed and a substituted act is enacted by congress imposing an estate, inheritance, succession and/or legacy tax in lieu of the tax imposed by chapter 11, then as to the Tennessee estate of decedents affected by such amendment or by such substituted act, the terms as defined by § 67-8-202 shall relate to chapter 11 as amended, or of the substituted act, as the case may be, and the Tennessee estate tax as to such Tennessee estates shall be computed, imposed and paid accordingly.
    2. (2) If chapter 11 of the Internal Revenue Code of 1954 is repealed and a substituted act, as defined in subdivision (c)(1), is enacted, then subsection (b) shall relate to the repeal of such substituted act. Subsection (b) shall also relate to the enactment of any amendment, either to chapter 11 or such substituted act, whereby the allowance of the maximum credit to the extent provided in chapter 11 or to any other extent, shall be finally repealed.
History (5)
  • Acts 1929 (Ex. Sess.), ch. 23, §§ 7, 8, 11
  • Code 1932, §§ 1303, 1304, 1307
  • modified
  • Acts 1983, ch. 73, § 15
  • T.C.A. (orig. ed.), §§ 30-1708, 30-1709, 30-1712.
§ 67-8-204. Tax imposed.
  1. In addition to any inheritance, succession and/or estate tax or taxes imposed by the state of Tennessee under the authority of any other statute or statutes, a Tennessee estate tax is imposed for the exclusive use of the state upon the transfer of the Tennessee estate of every decedent, the amount of which Tennessee estate tax shall be equal to the extent, if any, of the excess of the credit over the aggregate of state taxes, payable by or out of the Tennessee estate of the decedent, or any part thereof; provided, that such Tennessee estate tax imposed shall in no case exceed the extent to which its payment will effect a saving or diminution in the amount of the federal estate tax, payable by or out of the estate of the decedent had this part not been enacted.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 23, § 2
  • Code 1932, § 1297
  • T.C.A. (orig. ed.), § 30-1702.
§ 67-8-205. Tax for use of state.
  1. The tax imposed by this part is a tax exclusively for the use of the state, and no county, municipality or taxing district shall have power to levy any like tax.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 26, § 18
  • Code 1932, § 1315
  • T.C.A. (orig. ed.), § 30-1720.
§ 67-8-206. Tax charged upon entire estate — Affidavit.
  1. The Tennessee estate tax shall be charged upon the entire Tennessee estate of the decedent, and the executor shall pay the tax to the commissioner of revenue, and shall file with such commissioner an affidavit showing:
    1. (1) The amount of the federal estate tax before allowing the maximum credit for taxes of any of the kinds as provided in § 2011 of the Internal Revenue Code of 1954 (26 U.S.C. § 2011);
    2. (2) The proportion of nontaxable property to the entire estate, referred to in § 67-8-202;
    3. (3) The amount of state taxes;
    4. (4) The amount of any additional taxes allowable in computing the federal estate tax of the decedent;
    5. (5) The amount of the Tennessee estate tax; and
    6. (6) The amount of interest, if any, paid on such federal estate tax and the period covered by such interest, together with the amounts, if any, of any of the items theretofore paid and a duplicate of the federal estate tax return filed or being filed by the executor.
Backlinks (2)
History (6)
  • Acts 1929 (Ex. Sess.), ch. 23, § 4
  • Code 1932, § 1299
  • modified
  • impl. am. Acts 1959, ch. 9, § 14
  • 1983, ch. 73, § 15
  • T.C.A. (orig. ed.), § 30-1704.
§ 67-8-207. Time for payment.
  1. The Tennessee estate tax shall be payable at the same time or times at which the federal estate tax is payable.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 23, § 3
  • Code 1932, § 1298
  • Acts 1980, ch. 885, § 3
  • T.C.A. (orig. ed.), § 30-1703.
§ 67-8-208. Adjustment upon change in federal tax payment.
  1. (a) If the amount of federal estate tax is, upon the final determination of the federal estate tax, increased or decreased as affecting an estate the transfer of any part whereof is taxable hereunder subsequent to the payment of the Tennessee estate tax, the Tennessee estate tax imposed shall be changed accordingly. Any additional estate tax shall be payable at the same time or times at which the additional federal estate tax is payable.
  2. (b) In the event that there shall be a decrease in the federal estate tax, the executor shall file with the commissioner of revenue an affidavit in such form as is prescribed by the commissioner, setting forth the amount of:
    1. (1) Federal estate tax as originally computed;
    2. (2) Federal estate tax as revised and decreased;
    3. (3) Tennessee estate tax theretofore paid and date of payment; and
    4. (4) Tennessee estate tax properly payable in view of such revision and decrease of federal estate tax.
  3. (c) With the affidavit, there shall also be filed:
    1. (1) A certificate or other evidence from the internal revenue service showing the amount of federal estate tax as so revised and decreased;
    2. (2) A certified copy of the affidavit filed with the commissioner as provided in § 67-8-206;
    3. (3) A duplicate receipt by the commissioner for the Tennessee estate tax theretofore paid, showing date of payment; and
    4. (4) Such other evidence as the commissioner may require in order to enable the commissioner to determine the Tennessee estate tax, properly payable, and the amount, if any, of any refund due.
  4. (d) The commissioner shall thereupon cause to be paid to the executor the amount of refund found to be due, together with interest thereon as provided in § 67-1-801(b).
Backlinks (1)
History (5)
  • Acts 1929 (Ex. Sess.), ch. 23, § 5
  • Code 1932, § 1301
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1706
  • Acts 2010, ch. 1134, § 48.
§ 67-8-209. Payment by person other than executor or administrator — Reimbursement.
  1. If the Tennessee estate tax or any part thereof is paid, or collected out of that part of the Tennessee estate passing to or in possession of any person other than the executor or administrator in the executor's or administrator's capacity as such, such person shall be entitled to reimbursement out of any part of the Tennessee estate, still undistributed or paid, a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced, if the tax had been paid before the distribution of the Tennessee estate, or whose interest is subject to equal or prior liability for the payment of taxes, debts, or other charges against the Tennessee estate.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 23, § 6
  • Code 1932, § 1302
  • T.C.A. (orig. ed.), § 30-1707.
§ 67-8-210. Commissioner to pay over revenue.
  1. The commissioner of revenue shall account to the comptroller of the treasury for all moneys so collected monthly, less not more than two and one-half percent (2.5%) thereof for expenses of administration, who shall receipt therefor and forthwith pay over to the state treasurer all moneys thus received, who shall place the moneys to the credit of the general fund; provided, that the commissioner shall retain in the commissioner's hands at all times such a sum as, in the commissioner's judgment, shall be sufficient to enable the commissioner to pay promptly all claims for refunds as provided for in § 67-8-208.
Backlinks (1)
History (4)
  • Acts 1929 (Ex. Sess.), ch. 23, § 4
  • Code 1932, § 1300
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1705.
§ 67-8-211. Rules and regulations.
  1. The commissioner of revenue is empowered to make all necessary rules and regulations not inconsistent with the terms of this part, which shall have the force and effect of law, for the purpose of fully carrying out and giving effect to this part.
History (4)
  • Acts 1929 (Ex. Sess), ch. 23, § 12
  • Code 1932, § 1308
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1713.
§ 67-8-213. Receipts and certificates of payment.
  1. (a) Upon the payment of the tax, the commissioner of revenue shall issue receipt therefor in duplicate to the executor.
  2. (b) Upon the payment of a fee of one dollar ($1.00) to the commissioner, which fee shall accrue to the state, the executor or any other person shall be entitled to receive from the commissioner a certificate to the effect that the tax upon any particular parcel, or tract, of real estate has been paid, and such certificate may be recorded in the office of the register of the county in which such real estate is situated, and shall be conclusive proof that the tax applicable to such real estate has been paid.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 23, § 14
  • Code 1932, § 1311
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1716.
§ 67-8-215. Suits for enforcement.
  1. The commissioner may, in the commissioner's discretion, institute suit in the name of the state of Tennessee, in any court of competent jurisdiction for the collection of the tax imposed by this part in the event the tax is not paid when due. Such suit shall be for the amount of the tax due, with penalty and interest provided in this part.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 23, § 15
  • Code 1932, § 1313
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1718.
§ 67-8-216. Assistants to commissioner.
  1. The commissioner may employ necessary agents, representatives and assistants for the enforcement of this part, and the expense of their employment and all incidental expenses shall be defrayed out of the two and one-half percent (2.5%) of the moneys collected as provided in § 67-8-206, and, in case of suit, out of the penalty provided in this part, or so much thereof as may be necessary.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 23, § 16
  • Code 1932, § 1314
  • T.C.A. (orig. ed.), § 30-1719.
§ 67-8-217. Violations — Penalties.
  1. It is a Class C misdemeanor for any executor to fail to file any affidavit or duplicate federal tax return or other instrument required by this part to be filed, or to pay the tax imposed by this part when payable hereunder, or to comply with and obey any rule or regulation promulgated by the commissioner of revenue for the enforcement of this part, or to make and file a false return or report or other instrument required to be made and filed under this part.
History (5)
  • Acts 1929 (Ex. Sess.), ch. 23, § 13
  • Code 1932, § 1309
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1714
  • Acts 1989, ch. 591, § 113.
Part 3 Inheritance Tax — General Provisions [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
§ 67-8-301. Construction. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. This part and part 4 of this chapter shall in no wise be construed impliedly or expressly to repeal or modify the Tennessee Estate Tax Law, compiled in part 2 of this chapter.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 6(1)
  • Code 1932, § 1294
  • T.C.A. (orig. ed.), § 30-1637.
§ 67-8-302. Classification of beneficiaries. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. The following named beneficiaries shall be included in:
    1. (1) Class A: Husband, wife, son, daughter, lineal ancestor, lineal descendant, brother, sister, stepchild, son-in-law or daughter-in-law. For the purposes of parts 3-5 of this chapter, a person who is related to the decedent as a result of legal adoption shall be considered to have the same relationship as a natural lineal ancestor, lineal descendant, brother, sister or stepchild; and
    2. (2) Class B: Any other relative, person, association or corporation not specifically designated in Class A.
Backlinks (1)
History (11)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(2)
  • Code 1932, § 1266
  • Acts 1963, ch. 196
  • 1965, ch. 18, § 1
  • 1967, ch. 383, § 1
  • 1972, ch. 452, § 2
  • impl. am. Acts 1976, ch. 529, § 1
  • impl. am. Acts 1977, ch. 25, §§ 3-5
  • Acts 1978, ch. 731, § 5
  • 1983, ch. 73, § 4
  • T.C.A. (orig. ed.), § 30-1609.
§ 67-8-303. Tax imposed — Property subject to tax generally. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) A tax is imposed for the general uses of the state, under the conditions and subject to the conditions and limitations prescribed in this part, upon transfers, in trust or otherwise, of the following property, or any interest in the property or accrued income from the property:
    1. (1) When the transfer is from a domiciliary of this state:
      1. (A) Real property situated within this state;
      2. (B) Tangible personal property, except such as has an actual situs without this state;
      3. (C) All intangible personal property;
      4. (D) Proceeds of insurance policies, except as provided in this part; and
      5. (E) Proceeds of certain employee benefit trusts and plans to the extent provided in this part; or
      Backlinks (3)
    2. (2) When the transfer is from a decedent who is not a domiciliary of this state:
      1. (A) Real property situated within this state; and
      2. (B) Tangible personal property that has an actual situs within this state.
      Backlinks (3)
  2. (b) Property in which a decedent held a qualifying income interest for life, that is included for taxation pursuant to § 67-8-304(10), shall be treated as a taxable transfer of such property by such decedent.
Backlinks (2)
History (6)
  • Acts 1929 (Ex. Sess.), ch. 29, § 1(1)
  • Code 1932, § 1259
  • Acts 1973, ch. 362, § 1
  • 1983, ch. 73, § 1
  • T.C.A. (orig. ed.), § 30-1601
  • Acts 1992, ch. 1003, §§ 2, 3.
§ 67-8-304. Taxable transfers generally. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. The following transfers enumerated in § 67-8-303 shall be taxable:
    1. (1) Transfers made by a will;
    2. (2) Transfers made by statutes regulating descent and distribution of property upon the death of the owner;
    3. (3) Transfers made by gift of the decedent to the extent of the value of any interest in property transferred, by trust or otherwise, during the three-year period ending on the date of the decedent's death. Property for purposes of this subdivision (3) shall include any property specified in § 67-8-303. The value of the property on the date it was transferred, less the exemptions provided for under § 67-8-104, shall be includable; provided, that the transfer of a life insurance policy shall be includable at its proceeds value on the date of death without regard to the policy's value on the date of transfer or the exemptions provided for under § 67-8-104. In addition, any Tennessee gift tax paid on the transfer of any interest in property taxable under parts 3-5 of this chapter shall be a credit against any inheritance tax payable under parts 3-5 of this chapter. The amount of the gross estate, determined without regard to this sentence, shall be increased by the amount of any tax paid under part 1 of this chapter by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse after December 31, 1978, during the three-year period ending on the date of the decedent's death;
    4. (4) If by a domiciliary, any property specified in § 67-8-303(a)(1), and, if by a decedent who is not a domiciliary, any property specified in § 67-8-303(a)(2) transferred by the decedent prior to death by gift or grant intended to take effect in possession or enjoyment at or after death;
    5. (5) A transfer of property subject to any charge, estate or interest, determinable by the death of the decedent or at any period ascertainable only by reference to the death of the decedent, is deemed to have been intended to take effect in possession or in enjoyment at or after death;
    6. (6) If any transfer of property specified in subdivision (3), (4) or (5) was made for a valuable consideration, so much thereof as is the equivalent in money value of the money value of such present consideration received by the transferor shall not be included, but the remaining portion shall be;
    7. (7) In case of any transfer of property specified in subdivision (5), the increase accruing to any person or corporation upon the extinction or termination of such charge, estate, or interest shall be deemed a transfer of property taxable under parts 3-5 of this chapter;
    8. (8) Transfers made pursuant to a power of appointment, held by the decedent, to the same extent that the transfer would be taxable pursuant to § 2041 of the Internal Revenue Code, except that:
      1. (A) An unexercised general power of appointment, granted by a will, probated prior to November 1, 1978, and held by a decedent who died on or after May 1, 1980, and prior to May 28, 1981, shall not be a taxable transfer; and
      2. (B) A credit shall be allowed against the tax liability imposed for the transfer of property by an unexercised general power of appointment that was irrevocable prior to November 1, 1978, if the property transferred by such power of appointment had previously been included in the taxable estate of a decedent spouse. The credit shall be calculated, using values reported on the return of the prior estate, by multiplying the ratio of:
        1. (i) Value of the property transferred by such power of appointment, over
        2. (ii) Value of property allocated to Class A beneficiaries by the return of the prior estate, times
        3. (iii) Tax paid by the prior estate on transfers to Class A beneficiaries, as follows:This credit shall not, however, be allowed for the transfer of any property for which the credit, pursuant to § 67-8-317, is allowable;
      3. (C) An overpayment of inheritance taxes, that resulted from a failure to take the credit referred to in subdivision (8)(B), shall be subject to refund on application of the estate made pursuant to § 67-1-707, and to the extent that no additional estate tax, pursuant to part 2 of this chapter would have been assessable as a result of such credit. Any such refund, in the amount of fifteen thousand dollars ($15,000) or more, shall be paid in three (3) equal annual installments. The first installment shall be made within a reasonable time following the approval of the claim for refund, the second installment shall be made within one (1) year following the first installment, and the third installment shall be made within two (2) years following the first installment;
    9. (9) There shall be included for taxation under parts 3-5 of this chapter the value of any annuity or any other payment taxable for federal estate tax purposes under 26 U.S.C. § 2039 as amended by P.L. No. 98-369. The provisions enacted into federal law by the Tax Reform Act of 1984 (26 U.S.C. § 1 et seq.), shall be applicable to this subdivision (9), including all effective dates contained in the act; and
    10. (10)
      1. (A) Property in which the decedent held a “qualifying income interest for life,” as defined in § 2056(b)(7)(B)(ii) of the Internal Revenue Code (26 U.S.C. § 2056(b)(7)(B)(ii)), if:
        1. (i) A deduction was allowed with respect to the transfer of such property to the decedent:
          1. (a) Under § 67-8-315(a)(6) by reason of its incorporation of § 2056(b)(7) of the Internal Revenue Code (26 U.S.C. § 2056(b)(7)); or
          2. (b) Under § 67-8-105(a) by reason of its incorporation of § 2523(f) of the Internal Revenue Code (26 U.S.C. § 2523(f));
        2. (ii) The election specified in either § 2056(b)(7) or § 2523(f) of the Internal Revenue Code was made to the department of revenue; and
        3. (iii) Section 67-8-101(e), relating to disposition of certain life estates, did not apply with respect to a disposition by the decedent of part or all of such property;
      2. (B) For purposes of taxation under this subdivision (10), the classification of beneficiaries provided for by § 67-8-302 shall be determined by reference to the relationship of the beneficiaries of the remainder interest named in the instrument to the decedent or person creating such remainder interest.
      Backlinks (2)
History (12)
  • Acts 1929 (Ex. Sess.), ch. 29, § 1(2)
  • Code 1932, § 1260
  • Acts 1973, ch. 362, § 2
  • 1977, ch. 388, § 1
  • 1978, ch. 731, §§ 1-3
  • 1980, ch. 872, § 1
  • 1981, ch. 413, § 1
  • 1983, ch. 73, §§ 2, 5, 6
  • T.C.A. (orig. ed.), § 30-1602
  • Acts 1985, ch. 364, § 3
  • 1985, ch. 453, § 1
  • 1992, ch. 1003, § 4.
§ 67-8-305. Property held jointly. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) Whenever any property was held jointly by the decedent and one (1) or more persons as tenants by the entirety or otherwise, or was deposited in banks or other depositories or institutions in the joint names of the decedent and one (1) or more other persons and was payable to one (1) or more, or to the survivor or survivors, so that, upon the death of the decedent, the survivor or survivors became entitled to the immediate possession, ownership or enjoyment of such property, the entire value of any such property shall be deemed to have been transferred from the decedent to the survivor or survivors, and such transfer shall be subject to the inheritance tax imposed by parts 3-5 of this chapter, except:
    1. (1) Where the decedent and the survivor are husband and wife at the death of the decedent, there shall be deducted one-half (½) of the value of the taxable transfer; and
    2. (2) In all other cases:
      1. (A) Where such property was originally acquired for an adequate and full consideration in money or money's worth and where it is clearly shown to the satisfaction of the commissioner of revenue that the survivor or survivors contributed a part of the consideration given for such property in money or money's worth, there shall be deducted only such part of the value of the taxable transfer as is proportionate to the consideration contributed by the survivor or survivors; and
      2. (B) Where the decedent and the survivor or survivors originally acquired such property other than for an adequate and full consideration in money or money's worth, there shall be deducted only such fractional part from the value of the taxable transfer as was originally acquired by the survivor or survivors.
  2. (b) Where the decedent was a resident of this state, this section shall apply to the property specified in § 67-8-303(a)(1), or where the decedent was a nonresident, to the property specified in § 67-8-303(a)(2).
History (5)
  • Acts 1929 (Ex. Sess.), ch. 29, § 1(3)
  • Code 1932, § 1261
  • Acts 1980, ch. 823, § 1
  • 1983, ch. 73, § 7
  • T.C.A. (orig. ed.), § 30-1603.
§ 67-8-306. Life insurance. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) If the decedent was a resident of this state, there shall be included in the gross estate the proceeds of insurance policies payable to named beneficiaries, or to the decedent's estate, or in such manner as to be subject to claims against the decedent's estate and to distribution as a part thereof.
  2. (b) This section shall include the proceeds of insurance policies commonly known as “paid-up contracts” or “investment contracts” or “annuity contracts” or similar types or forms of policies, the surrender value of which was subject to the control of the decedent prior to death.
  3. (c) Where life insurance, the proceeds of which are under the control of the decedent, is left by the decedent in such manner that the proceeds thereof cannot be subjected to the payment of the decedent's debts and where the proceeds of such insurance are received by beneficiaries thereof and are not subjected to the debts of the decedent, the fact that the decedent may have been insolvent and that a portion of the decedent's debts may remain unpaid shall not affect the liability for inheritance tax upon such insurance.
History (8)
  • Acts 1929 (Ex. Sess.), ch. 29, § 1(4)
  • Code 1932, § 1261A
  • Acts 1937, ch. 129, § 1
  • 1943, ch. 119, § 1
  • C. Supp. 1950, § 1261A
  • Acts 1963, ch. 204, § 1
  • 1972, ch. 452, § 1
  • T.C.A. (orig. ed.), § 30-1604.
§ 67-8-307. Revocable trusts. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. The gross estate of a resident shall include property specified in § 67-8-303(a)(1), and the gross estate of a nonresident shall include property specified in § 67-8-303(a)(2) transferred by the decedent by deed of trust in which the decedent reserved to the decedent, alone or in conjunction with others, powers of revocation, alteration or amendment, upon the exercise of which such property would revert to the decedent, to the extent of the value of such property subject to such powers and with respect to which such powers remained unexercised.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 1(5)
  • Code 1932, § 1262
  • T.C.A. (orig. ed.), § 30-1605.
§ 67-8-308. Transfers to executors and trustees. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. If property is transferred to executors or trustees in lieu of their commissions or allowances, the excess in value of the property so transferred above the amount of commissions or allowances that would be payable in the absence of such transfer, shall be taxable.
History (3)
  • Acts 1929 (E.S.), ch. 29, § 1(6)
  • Code 1932, § 1263
  • T.C.A. (orig. ed.), § 30-1606.
§ 67-8-309. Transfers by operation of law. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. Any transfer of property in any manner by operation of law upon the death of any person shall be deemed a transfer taxable under this part and part 4 of this chapter.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 1(7)
  • Code 1932, § 1264
  • Acts 1976, ch. 529, § 18
  • T.C.A. (orig. ed.), § 30-1607.
§ 67-8-310. Future, contingent or limited estates, income, interest or annuities — Valuation. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) The value of every future, contingent or limited estate, income, interest or annuity for any life or lives in being shall, so far as possible, be determined by the rule, method and standard of mortality and of value set forth in the actuarial tables of mortality in use by the internal revenue service for federal estate tax purposes at the time of the decedent's death. The value of the interest remaining after any such temporary interest shall be determined by deducting the computed value of the temporary estate from the value of the entire property in which such interest exists. Unless otherwise provided by the transferor, the tax on such temporary interests and remainders shall be payable out of the property in which such temporary interests and remainders exist.
  2. (b) In the event the internal revenue service issues regulations at any time that provide for an election between tables, such election shall be available at the same time and in the same manner to the personal representative of the estate with respect to the state inheritance tax return, and shall be allowed by the commissioner upon the filing of a duplicate copy of the election filed with the internal revenue service.
History (5)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(6)
  • Code 1932, § 1270
  • Acts 1978, ch. 731, § 8
  • T.C.A. (orig. ed.), § 30-1613
  • Acts 1984, ch. 678, §§ 2, 4.
§ 67-8-311. Estates subject to divestiture. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. Where an estate or interest may be divested by the act or omission of the transferee, it shall be taxed as if there were no possibility of divesting.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(7)
  • Code 1932, § 1271
  • T.C.A. (orig. ed.), § 30-1614.
§ 67-8-312. Present value not ascertainable — Procedure. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) If it shall be impossible to compute the present value of any of the property transferred, or of any interest in such property, or if the tax cannot be determined because of a contingency as to who will take it, the commissioner of revenue, with the written approval of the attorney general and reporter, may enter into an agreement with the representatives of the estate or the transferees, or both, to compound the tax upon such terms as may be deemed equitable, and the payment of any amount agreed upon shall be in full satisfaction for the tax imposed by this part and part 4 of this chapter, and such amount shall be payable out of the property transferred.
  2. (b) If such an agreement cannot be reached, the taxation of the property or interest shall be held in abeyance and the commissioner shall require the representatives of the estate or transferees, or both, to give bond for the prompt payment of the tax at such time as the value of the property or interest, of the transferees, may be determined, and such tax shall bear interest as provided in subsection (a). The amount of the bond shall be fixed and the sufficiency of the surety determined by the commissioner.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(8)
  • Code 1932, § 1272
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1615.
§ 67-8-313. Tax computed on aggregate value of transfers. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. The value of all property transferred to each class of beneficiaries shall be aggregated for the purpose of computing the tax and allowing the exemptions heretofore provided for in this part and part 4 of this chapter.
History (8)
  • Acts 1929 (Ex. Sess.), ch. 29, § 4(1)
  • Code 1932, § 1282
  • Acts 1937, ch. 129, § 5
  • 1943, ch. 114, § 3
  • C. Supp. 1950, § 1282
  • Acts 1970, ch. 559, § 3
  • 1971, ch. 118, § 3
  • T.C.A. (orig. ed.), § 30-1625.
§ 67-8-314. Tax rates. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) The tax imposed upon the value of the net taxable estate of a decedent, distributable in accordance with the classification, deductions, allowances and exemptions set out in this part shall be, respectively, at the following rates:
    1. (1) Class A
      1. If net taxable estate is:The tax is:
      2. Not over $40,000   5.5% of the net taxable estate.
      3. Over $40,000 but not over $240,000$2,200, plus 6.5% of the
      4. excess over $40,000.
      5. Over $240,000 but not over $440,000$15,200, plus 7.5% of
      6. the excess over $240,000.
      7. Over $440,000     $30,200, plus 9.5% of the
      8. excess over $440,000.
    2. (2) Class B
      1. If the net taxable estate is:  The tax is:
      2. Not over $40,000   5.5% of the net taxable estate.
      3. Over $40,000 but not over $240,000$2,200 plus 6.5% of the
      4. excess over $40,000.
      5. Over $240,000 but not over $440,000$15,200 plus 7.5% of
      6. the excess over $240,000.
      7. Over $440,000     $30,200 plus 9.5% of the
      8. excess over $440,000.
  2. (b) In the case of a decedent dying in 2016, or in any subsequent year, no tax shall be imposed pursuant to this part; provided, however, that this subsection (b) shall not be construed to absolve liability for any tax duly levied by this section, during any year prior to January 1, 2016.
History (11)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(3)
  • Code 1932, § 1267
  • Acts 1935 (Ex. Sess.), ch. 41, § 1
  • C. Supp. 1950, § 1267
  • Acts 1967, ch. 141, § 1
  • 1972, ch. 452, § 3
  • 1978, ch. 731, § 6
  • T.C.A. (orig. ed.), § 30-1610
  • Acts 1984, ch. 989, § 2
  • 1985, ch. 364, § 4
  • 2012, ch. 1057, § 2.
§ 67-8-315. Deductions. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) For the purpose of determining the net estate subject to tax, the following deductions shall be deducted from the value of the gross estate; except that, in the case of a transfer other than by will or intestate law, the only deductions permitted shall be liens subject to which the transfer is made and transfer taxes paid or payable to other jurisdictions on intangible personal property; additionally, except for the deduction in subdivision (a)(6), in the case of the estate of a nonresident, only such portion of the following deductions shall be allowed as is properly chargeable against the property, the transfer of which is subject to taxation:
    1. (1) The value of all property taxable under this part and part 4 of this chapter transferred to the United States, the state of Tennessee, or to any political subdivision thereof, any public institution therein exclusively used for public purposes, or any corporation, society, association or trust therein, or in a state that grants a like exemption to such institution in Tennessee formed for charitable, educational, scientific or religious purposes; provided, that the property so transferred is to be used exclusively for one (1) or more such purposes, but no deduction shall be allowed on account of property transferred to any such beneficiary, if any officer, member, shareholder or employee thereof shall receive, or be entitled to receive, any benefit or pecuniary profit from the operation thereof, except reasonable compensation in affecting one (1) or more of such purposes, or as beneficiaries of a strictly charitable purpose; if the organization of any such corporation, society, association or trust for any of the foregoing avowed purposes be a mere guise or pretense for directly or indirectly making for it or any of its officers, members, shareholders or employees any other pecuniary profit; or if it be not in good faith organized or conducted for one (1) or more of such purposes;
    2. (2) Taxes:
      1. (A) On real and tangible personal property within this state that were a lien at the date of death;
      2. (B) On intangible personal property of the decedent or on the income from the property that constituted a personal obligation during the decedent's lifetime, or were a lien at date of death;
      3. (C) Federal income taxes accrued upon the income of the decedent at the date of death;
      4. (D) Death duties paid or payable to other jurisdictions on intangible personal property, but no deduction shall be allowed for the payment of any federal estate taxes; and
      5. (E) Special assessments that, at the time of decedent's death, were a lien on real property within this state;
    3. (3) Actual funeral expenses, and all other amounts reasonably and actually expended, or contracted to be expended, for the purchase of a memorial, or monument, to the decedent, if a resident of the state;
    4. (4)
      1. (A) Expenses of administration, including accounting fees, appraisal fees, court costs, compensation of executors, administrators, or trustees and their attorneys actually allowed and paid, not in excess of lawful rates. Where the claimed allowance is excessive, the commissioner is authorized to reduce it to a reasonable amount for the purpose of computing the tax. From an action of the commissioner in reducing the claimed amount, an appeal may be taken to the board provided for in § 67-8-411;
      2. (B) Interest on federal estate tax actually paid and allowed by virtue of the Internal Revenue Code (26 U.S.C. §§ 6161 and 6166), and interest on Tennessee inheritance tax actually paid and allowed by virtue of § 67-8-419(b), for a period not to exceed twenty-one (21) months after the date of the decedent's death is deductible as an expense of administration, but shall not be so allowed as a deduction in any other event or circumstance nor for any further length of time;
    5. (5) Debts of the decedent that constituted lawful claims against the decedent's estate at the date of death; provided, that in the case of a resident decedent there shall not be allowed a debt secured by property outside of this state; except when the property by which the debt is secured is included in the measure of the tax imposed, or except when such debt exceeds the value of the property securing it, in which case the excess may be deducted; and
    6. (6) An amount equal to the value of any interest in property that passes or has passed from the decedent to the surviving spouse, but only to the extent that such interest is included in determining the value of the gross estate. In determining the amount qualifying for the deduction under this subdivision (a)(6), the limitations, restrictions, definitions, elections and requirements set out in § 2056(b) and (c) of the Internal Revenue Code (26 U.S.C. § 2056(b) and (c)), shall be applicable to the deduction allowed by this subsection (a); provided, that the election specified by § 2056(b)(7) of the Internal Revenue Code (26 U.S.C. § 2056(b)(7)), must be made to the department.
      Backlinks (5)
  2. (b) No deduction from the value of the property included in the gross estate shall be allowed on account of any claim against the estate arising from a contract made by the decedent and payable by its terms at or after death, unless such claim is supported, in whole or in part, by a valuable consideration, in which event only so much thereof as is the equivalent in money value of the money value of the consideration received by the decedent shall be allowed as a deduction, but the remaining portion shall not be.
Backlinks (1)
History (10)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(1), (4)
  • Code 1932, §§ 1265, 1268
  • Acts 1937, ch. 129, §§ 2, 3
  • C. Supp. 1950, § 1265
  • Acts 1959, ch. 158, § 1
  • 1978, ch. 731, § 4
  • 1980, ch. 471, §§ 1-3
  • 1983, ch. 73, § 3
  • T.C.A. (orig. ed.), §§ 30-1608, 30-1611
  • Acts 1985, ch. 453, § 2.
§ 67-8-316. Exemptions. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a)
    1. (1) For the sole purpose of determining the net taxable estate under this part and part 4 of this chapter, there shall be allowed against the net estate a maximum single exemption against that portion of the estate distributable to one (1) or more beneficiaries of Class A of an amount determined according to the following schedule:and there shall be allowed against the net estate a maximum single exemption against that portion of the estate distributable to one (1) or more beneficiaries of Class B of an amount determined according to the following schedule:
      2. In the case of a decedent dying:Amount
      3. On or after October 1, 1983, but before January 1, 1984$275,000
      4. In 1984325,000
      5. In 1985400,000
      6. In 1986500,000
      7. After 1986600,000
      10. In the case of a decedent dying:Amount
      11. On or after July 1, 1984, but before January 1, 1985$25,000
      12. In 198550,000
      13. In 1986100,000
      14. In 1987150,000
      15. In 1988250,000
      16. In 1989350,000
      17. After 1989600,000
    2. (2) After 1989, no distinction shall be made in classes of beneficiaries and all beneficiaries listed in subsection (b) in Class B shall be included in Class A.
  2. (b) For the sole purpose of determining the net taxable estate under this part and part 4 of this chapter, there shall be allowed against the net estate a maximum single exemption against that portion of the estate distributable to one (1) or more beneficiaries of an amount to be determined by the following schedule:
    2. In the case of a decedent dying:Amount
    3. On or after July 1, 1998, but before January 1, 1999$625,000
    4. In 1999650,000
    5. In 2000 and 2001675,000
    6. In 2002 and 2003700,000
    7. In 2004850,000
    8. In 2005950,000
    9. In 2006 through 20121,000,000
    10. In 20131,250,000
    11. In 20142,000,000
    12. In 20155,000,000
  3. (c) In the case of estates of nonresidents, the exemptions in this section shall be apportioned in the ratio that the value of the property included in the gross estate; to wit, property, the transfer of which is subject to the tax imposed bears to the value of all of the property that would have been included in the gross estate, if the decedent had been a resident of this state; provided, that, in any event, such proportionate part of the exemption shall not be less than is permitted by the Constitution of the United States.
Backlinks (2)
History (15)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(2)
  • Code 1932, § 1266
  • Acts 1963, ch. 196
  • 1965, ch. 18, § 1
  • 1967, ch. 383, § 1
  • 1972, ch. 452, § 2
  • impl. am. Acts 1976, ch. 529, § 1
  • impl. am. Acts 1977, ch. 25, §§ 3-5
  • Acts 1978, ch. 731, § 5
  • 1983, ch. 73, § 4
  • T.C.A. (orig. ed.), § 30-1609
  • Acts 1984, ch. 989, § 1
  • 1985, ch. 364, § 5
  • 1998, ch. 761, § 1
  • 2012, ch. 1057, § 1.
§ 67-8-317. Credits. [Not applicable to decedents who die in 2016 or after, see § 67-8-318.]
  1. (a) If the gross estate includes property upon the transfer of which to the decedent a tax was previously and within five (5) years imposed by this state, or property that has been received by the decedent in exchange for property upon which a tax was so imposed, a credit on account of such tax actually so previously paid shall be allowed against the tax imposed with respect to the particular property, but not to exceed the amount of tax imposed with respect to the property on the present transfer.
  2. (b) The credit for previously paid tax computation shall be the lesser of the following:
    1. (1) The tax paid in the previous estate multiplied by the result of the total property amount transferred to the present estate divided by the taxable estate of the prior estate; or
    2. (2) The tax due in the present estate multiplied by the result of the total property amount received from the prior estate divided by the taxable estate of the present estate.
  3. (c) The five-year period shall be computed from the date of death of the prior decedent and not from the date of payment of such tax.
Backlinks (1)
History (5)
  • Acts 1929 (Ex. Sess.), ch. 29, § 2(5)
  • Code 1932, § 1269
  • Acts 1978, ch. 731, § 7
  • T.C.A. (orig. ed.), § 30-1612
  • Acts 1985, ch. 453, § 8.
§ 67-8-318. Applicability of part to decedents who die in 2016 or later.
  1. This part does not apply in the case of any decedent who died in 2016 or in any subsequent year.
History (1)
  • Acts 2012, ch. 1057, § 3.
Part 4 Inheritance Tax — Administration [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
§ 67-8-401. Administration by commissioner. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. The commissioner of revenue, referred to as “commissioner” in this part, has full supervision of the administration and enforcement of this part and part 3 of this chapter and of the collection of all taxes imposed thereunder, and shall make such rules and regulations as may be necessary for its proper interpretation and enforcement, and the commissioner is empowered to call upon other departments of state government for such information and assistance as the commissioner may deem necessary; provided, that the cost of administering this part and part 3 of this chapter shall not exceed three percent (3%) of the total tax collection.
Backlinks (1)
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(1)
  • Code 1932, § 1273
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1616.
§ 67-8-402. Assistants to commissioner. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) The commissioner may designate such deputies, appraisers, agents and other assistants as may be necessary for carrying out the full purpose and intent of this part and part 3 of this chapter.
  2. (b) Such deputies, appraisers, agents and assistants, so designated by the commissioner, are empowered to represent the commissioner in inventorying and appraising estates, examining the contents of safe deposit vaults and to perform such duties as are, by this part and part 3 of this chapter, required of the commissioner, including the power to issue subpoenas and administer oaths and shall make bonds for the faithful performance of their duties, such bonds to be in such amounts and with such surety or sureties as the commissioner may prescribe.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(2)
  • Code 1932, § 1274
  • T.C.A. (orig. ed.), § 30-1617.
§ 67-8-403. Obtaining evidence. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) The commissioner has the power to compel the attendance of witnesses and the production of evidence, by subpoena, to administer oaths and to take testimony in relation to any matter under this part and part 3 of this chapter.
  2. (b) Witnesses shall receive the same fees as are paid other witnesses in courts of record, such fees to be a part of the cost of administration.
Backlinks (1)
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(1)
  • Code 1932, § 1273
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1616.
§ 67-8-404. Forms and records. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) The commissioner is empowered to prescribe such forms as may be necessary under this part and part 3 of this chapter and shall keep such records as are indicated by good accounting practice.
  2. (b) The commissioner may, by general regulations, prescribe how much and what portion of the commissioner's records shall be open to the inspection of the public and how much and what portion shall be held as confidential, and may exchange information with the United States government, or with other state jurisdictions under reciprocal arrangements made and approved by the commissioner.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(9)
  • Code 1932, § 1281
  • T.C.A. (orig. ed.), § 30-1624.
§ 67-8-405. Administrator — Appointment at commissioner's request. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. In order that the tax imposed in this part may be expeditiously collected, if, within six (6) months after the death of any decedent, resident or nonresident, an executor does not qualify or an administrator is not appointed in Tennessee at the instance of other persons interested in the estate, then the commissioner may apply to the proper court for the appointment of an administrator of such estate, and it shall be the duty of such court to make such appointment forthwith.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 4(6)
  • Code 1932, § 1287
  • T.C.A. (orig. ed.), § 30-1630.
§ 67-8-406. County clerks — Duties. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) It is the duty of the county clerk of the county in which an estate is administered by an executor, administrator, or trustee, upon the issuance of letters of administration, to deliver, or forward by mail, to the commissioner, a statement under the county clerk's seal of office giving the name and date of death of the decedent and the decedent's address at the time of death, and the name and address of the executor, administrator, or trustee qualified, together with the executor's, administrator's or trustee's estimate of the gross value of the estate.
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  2. (b) For this service, the county clerk shall be allowed to demand and collect in advance, five dollars ($5.00), which fee shall be in addition to the usual and customary probate fees now allowed by law and shall be paid by the representative of the estate and may be deducted as a part of the cost of administration.
  3. (c) Any county clerk who shall violate any of the provisions of this section shall be subject to a penalty of five hundred dollars ($500), to be recovered by the commissioner, for the benefit of the state, in any court of competent jurisdiction; provided, that the commissioner may, in the commissioner's discretion, waive or reduce the penalty in any case to not less than one hundred dollars ($100), where there appears no manifest intent to evade this part and part 3 of this chapter.
History (7)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(3)
  • Code 1932, § 1275
  • Acts 1947, ch. 177, § 1
  • C. Supp. 1950, § 1275
  • Acts 1972, ch. 774, § 1
  • T.C.A. (orig. ed.), § 30-1618(a)-(c)
  • Acts 1991, ch. 415, § 3.
§ 67-8-407. Enforcement by district attorneys. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. In event it should become necessary to enforce the payment of any tax imposed by this part and part 3 of this chapter by legal action in the courts, the commissioner shall make use of the offices of the several district attorneys general, such action to be taken under the supervision and direction of the attorney general and reporter.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(8)
  • Code 1932, § 1280
  • T.C.A. (orig. ed.), § 30-1623.
§ 67-8-408. Bond. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. When any personal representative, executor or administrator has qualified as such and has executed the required bond as provided in title 30, chapter 2, the amount of the bond shall be sufficient to cover any inheritance tax due or owing the state.
History (6)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(3)
  • Code 1932, § 1275
  • Acts 1947, ch. 177, § 1
  • C. Supp. 1950, § 1275
  • Acts 1972, ch. 774, § 1
  • T.C.A. (orig. ed.), § 30-1618(d).
§ 67-8-409. Return and inventory of estate. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) Upon receipt of the statement from the clerk of the probate court pursuant to § 67-8-406(a), the commissioner shall furnish the personal representative of the estate all necessary forms for the proper inventorying and return of the property of the estate.
  2. (b) The personal representative, or person or persons in possession of property of the decedent, shall within nine (9) months from the death of the decedent, prepare and file with the commissioner an exact copy of the will, if any, and a return of the estate for all estates in which the gross estate exceeds the maximum single exemption allowed in § 67-8-316. The return of the decedent shall be executed under penalties of perjury upon the form prescribed by the commissioner.
  3. (c) If, however, the gross estate of a resident decedent is less than the maximum single exemption allowed by § 67-8-316, the personal representative or person in possession of property may file a copy of decedent's will, if any, and a return of the estate, executed under penalty of perjury, upon a short form prescribed by the commissioner.
  4. (d) An extension of twelve (12) months in which to file the return required by this section, and to pay the tax shown to be due, shall be granted; provided, that a request for extension is made in writing by the personal representative or person in possession on a form prescribed by the commissioner, or by providing a copy of the personal representative's request for an automatic extension of time to file the federal estate tax return. The request shall not be filed on the original due date of the return, but, instead, shall be attached to the return filed on or before the extended due date. Interest, as provided by § 67-1-801(a), shall attach to the unpaid amount due, from the original due date of the return until the date paid. If the taxpayer fails to file the request for extension required by this subsection (d), or if the return is not filed with payment of the tax shown to be due by the extended due date, penalty as provided by § 67-1-804 shall attach as though no extension had been granted. If the personal representative or person in possession is unable to file a complete return, the personal representative or person in possession shall include in the return such part as is within the control and/or knowledge of the personal representative or person in possession, and shall include the names of every other person holding a legal or beneficial interest in the return. Upon notice from the commissioner, such person shall in like manner file a return as to that part of the gross estate that is within such person's control and/or knowledge.
  5. (e)
    1. (1) In the event the return and inventory required by this section are not filed until nine (9) months from the date of the death of the decedent, the tax shall be paid at the time the return is filed, unless an extension of time for the payment thereof is granted by the commissioner.
    2. (2) The representative of the estate, in the representative's discretion, may file the return earlier and permit the commissioner to proceed with the appraisal of the estate prior to the payment of tax.
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  6. (f) Upon receipt of the return, the commissioner shall proceed with the appraisal and investigation of the estate as provided in subsections (a)-(e), and upon the completion thereof, shall make an assessment of any additional amounts found to be due, giving notice to the representative or individual preparing the return.
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  7. (g)
    1. (1) Notwithstanding subsection (c) to the contrary, subdivision (g)(2) shall apply to the gross estate of a decedent that does not exceed the following amounts:
    3. In the case of a decedent dying:Amount:
    4. Prior to January 1, 2014$100,000
    5. In 2014$1,000,000
    6. In 2015$2,000,000
    8. (2)
      1. (A) If the decedent made no gifts during the decedent's lifetime and prior to January 1, 2012, in excess of the maximum single exemption allowable free of tax under § 67-8-104, the court may waive the filing of an inheritance tax return upon a statement to that effect by the personal representative or person in possession executed under penalty of perjury. It shall not be necessary for the clerk to forward a copy of the statement to the commissioner, unless requested; or
      2. (B) If the decedent made one (1) or more gifts in excess of the maximum exemption allowable free of tax under § 67-8-104 prior to January 1, 2012, the personal representative or person in possession may provide relevant information concerning the gifts upon a short form provided by the commissioner without the necessity of reporting otherwise, unless requested by the commissioner.
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History (20)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(4), (5)
  • Code 1932, §§ 1276, 1277
  • Acts 1937, ch. 129, § 4
  • 1939, ch. 101, § 1
  • 1943, ch. 114, §§ 1, 2
  • C. Supp. 1950, §§ 1276, 1277
  • Acts 1971, ch. 87, § 1
  • 1971, ch. 118, §§ 1, 2
  • 1973, ch. 362, § 3
  • 1977, ch. 394, § 1
  • 1978, ch. 731, §§ 9, 10
  • impl. am. Acts 1978, ch. 934, § 36
  • T.C.A. (orig. ed.), §§ 30-1619, 30-1620
  • Acts 1984, ch. 845, § 1
  • 1985, ch. 364, §§ 6, 7
  • 1987, ch. 324, § 1
  • 1997, ch. 426, § 23
  • 2009, ch. 530, § 97
  • 2012, ch. 1085, §§ 3, 4
  • 2014, ch. 808, § 1.
§ 67-8-410. Failure to file return. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. When any executor, administrator or trustee shall neglect or refuse to file the return, the commissioner is authorized to appraise the estate and to assess the tax upon the basis of all information available. Notice of such appraisal and tax assessment shall be given by the commissioner in accordance with § 67-8-409(e) and (f), and the procedure thereafter with reference to an appeal from the appraisal and with reference to the collection of the tax shall be the same as in other cases.
History (14)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(5)
  • Code 1932, § 1277
  • Acts 1937, ch. 129, § 4
  • 1939, ch. 101, § 1
  • 1943, ch. 114, § 2
  • C. Supp. 1950, § 1277
  • Acts 1971, ch. 87, § 1
  • 1971, ch. 118, § 2
  • 1978, ch. 731, § 10
  • T.C.A. (orig. ed.), § 30-1620
  • Acts 1984, ch. 845, § 3
  • 1985, ch. 364, § 7
  • 1985, ch. 396, § 2
  • 1989, ch. 186, § 2.
§ 67-8-411. Appraisal of estate by commissioner. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) Upon receipt of such return from the executor, administrator or trustee, the commissioner shall proceed to make an appraisal of the various items of the gross estate and to investigate deductions claimed by such representative of the estate.
  2. (b) In making the appraisal, the commissioner shall direct the commissioner's deputies, agents or assistants to investigate the valuation placed upon each item of the estate, with a view to determining its fullness and fairness, and, in the absence of written objection upon the part of the representative of the estate, the commissioner's appraisal shall be final and binding upon the estate; provided, that such representative shall have the right to file with the state board of equalization, within ninety (90) days from the date of such appraisal, an appeal from the appraisal. A copy of the appeal shall be filed with the commissioner, who shall file with the state board of equalization the commissioner's findings concerning the appraisal. The board shall have authority to consider the exceptions filed, hear proof and determine the valuation in dispute, and the findings, by a majority vote, of the board shall be conclusive as to all parties in interest, subject only to the constitutional right of review in the courts.
  3. (c) The procedure established by this section for review of the appraisal of the commissioner by the state board of equalization shall apply only if the issue of valuation of the various items of the gross estate is the only objection to be raised to the assessment. If this procedure for review is selected by the representative of the estate, no challenge to any legal issues that might be raised concerning the inheritance tax assessment shall be entertained in any court or forum. In all cases in which the representative of the estate seeks to challenge an assessment under this section on any ground other than valuation, the entire proceeding, including issues of valuation, must be brought in accordance with § 67-1-1801 or § 67-1-1802.
  4. (d) In order for any person who seeks review of an appraisal by the state board of equalization to obtain a stay of proceedings or action for the collection of the assessed tax, the person must file a complaint, with a copy of the petition for review by the state board of equalization attached, in chancery court seeking a stay until final determination of the review by the board of equalization, and must do those things necessary to obtain a stay under § 67-1-1801.
Backlinks (2)
History (15)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(5)
  • Code 1932, § 1277
  • Acts 1937, ch. 129, § 4
  • 1939, ch. 101, § 1
  • 1943, ch. 114, § 2
  • C. Supp. 1950, § 1277
  • Acts 1971, ch. 87, § 1
  • 1971, ch. 118, § 2
  • 1978, ch. 731, § 10
  • T.C.A. (orig. ed.), § 30-1620
  • Acts 1984, ch. 578, § 1
  • 1984, ch. 845, § 2
  • 1985, ch. 364, § 7
  • 1986, ch. 749, § 18
  • 1989, ch. 186, § 3.
§ 67-8-412. Basis of appraisal. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) All property, real and personal, shall be appraised at its full and true value at the date of the death of the decedent; provided, that stocks and bonds listed on recognized exchanges shall be appraised by ascertaining their quoted value on the date of death of the decedent or on the nearest business day of such exchange to such date. Notwithstanding any other law to the contrary, United States treasury bonds issued before March 4, 1971, and acquired by the decedent or the decedent's agent after May 30, 1985, that are listed in Treas. Reg. § 301.6312-2 (26 CFR 301.6312-2), and known as “Flower Bonds,” shall be valued at par value to the extent that they are used to discharge federal estate tax liability.
  2. (b)
    1. (1) Subsection (a) notwithstanding, the value of the gross estate, for the purposes of parts 3-5 of this chapter, may be determined, if the executor or administrator so elects, by valuing all the property, real and personal, included in the gross estate as follows:
      1. (A) In the case of property distributed, sold, exchanged, or otherwise disposed of, within six (6) months after the decedent's death, such property shall be valued as of the date of distribution, sale, exchange, or other disposition;
      2. (B) In the case of property not distributed, sold, exchanged, or otherwise disposed of, within six (6) months after the decedent's death, such property shall be valued as of the date occurring six (6) months after the decedent's death; and
      3. (C) Any interest or estate that is affected by mere lapse of time shall be included at its value as of the time of death, instead of the later date, with adjustment for any difference in its value as of the later date not due to mere lapse of time. The election provided for in this subsection (b) shall be exercised by the executor or administrator on the return, if filed within the time prescribed by law or before the expiration date of any extension of time granted pursuant to law for the filing of the return.
    2. (2) In the event of an election as provided for in this subsection (b), there shall be no deduction allowed on account of property with respect to which a deduction is claimed under § 67-8-315 in an amount greater than the value declared for the same property in determining the gross assets of the estate.
  3. (c)
    1. (1) Notwithstanding subsection (a), in any case of an estate where an executor could elect, without regard to § 2032A(b)(1)(C)(ii) and § 2032A(c)(6)(B) of the Internal Revenue Code (26 U.S.C. § 2032A(b)(1)(C)(ii) and (c)(6)(B)), relative to material participation in the operation of the farm or other business by the decedent or members of the decedent's family, the special valuation for farm or other property under § 2032A of the Internal Revenue Code, such special valuation shall also be available to the executor for Tennessee inheritance tax valuation purposes. For such purposes, the executor and any other person shall be subject to all conditions and limitations set out in § 2032A, with the exception of § 2032A(b)(1)(C)(ii) and § 2032A(c)(6)(B), which shall not be applicable. In addition, a lien shall arise in favor of the state comparable to that arising in favor of the United States under § 6324B of the Internal Revenue Code (26 U.S.C. § 6324B), and such lien shall be subject to the filing and priority provisions of § 67-1-1403.
    2. (2) The commissioner shall prescribe procedures to provide that, in any case in which the personal representative makes a timely election under this subsection (c) and substantially complies with the federal regulations pertaining to the election but the notice of election as filed does not contain all required information, or the signatures of one (1) or more necessary persons are not included on the agreement provided for in this subsection (c), or the agreement does not contain all required information, the personal representative is to have reasonable time, not exceeding ninety (90) days, after notification of such failure or other deficiency, in which to provide such information or signatures. The provisions hereof shall apply to the estates of all decedents dying after December 31, 1976.
History (9)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(6)
  • Code 1932, § 1278
  • Acts 1971, ch. 118, § 5
  • impl. am. Acts 1978, ch. 686, §§ 1, 5
  • Acts 1978, ch. 731, § 11
  • 1983, ch. 73, § 8
  • T.C.A. (orig. ed.), § 30-1621
  • Acts 1985, ch. 364, § 8
  • 1985, ch. 453, § 3.
§ 67-8-413. Nonresident's estate — Determination by commissioner. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) In the absence of administration in this state upon the estate of a nonresident decedent, the commissioner may, at the request of any representative of such state, duly appointed and qualified in the state of decedent's domicile, or at the request of any beneficiary of such estate, or at the request of a transferee or trustee under a transfer made during the lifetime of such nonresident decedent, determine whether or not any property within this state transferred by such nonresident, or forming a part of the nonresident's estate, is subject to tax under this part and part 3 of this chapter, and the amount of the tax.
  2. (b) The commissioner's certificate as to the amount of such tax and the commissioner's receipt therefor may be filed in the court handling probate in the county in which such property is located, and shall be conclusive evidence of payment of the tax imposed by this part and part 3 of this chapter.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 4(5)
  • Code 1932, § 1286
  • T.C.A. (orig. ed.), § 30-1629.
§ 67-8-414. Liens. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. Upon the issuance by the state of a receipt to an administrator or executor who has paid the tax imposed by parts 3-5 of this chapter, the administrator or executor shall be subrogated to any lien or right to proceed against any transferred property in the hands of a transferee, donee, or bona fide purchaser that the state might have had and the issuance of the receipt by the commissioner after the payment of the tax due shall be deemed an assignment by the state to the administrator or executor of the lien or right to proceed against the transferred property, the transferee, donee or bona fide purchaser and shall be conclusive evidence thereof; provided, that for the lien to remain effective, the executor or administrator must file with the register of the county of decedent's residence and any county in which any real property affected is located within forty-five (45) days of the issuance of such tax receipt, a notice of such lien, such notice to contain the administrator's or executor's name, the name of the decedent whose estate is involved, a description of the property against which the lien is claimed, and the amount of lien claimed, and upon satisfaction of the lien, a release thereof.
History (10)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(7)
  • mod. Code 1932, § 1279
  • Acts 1933, ch. 79, § 1
  • 1941, ch. 68, § 1
  • C. Supp. 1950, § 1279
  • Acts 1967, ch. 280, § 1
  • 1973, ch. 368, § 3(d)
  • T.C.A. (orig. ed.), § 30-1622
  • Acts 1985, ch. 453, § 4
  • 2004, ch. 866, § 10.
§ 67-8-415. Collection of tax — Reports by commissioner. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) The commissioner shall collect the tax imposed by this part and part 3 of this chapter and deposit the tax in such depository, or depositories, as the commissioner may select, which shall have executed and filed with the commissioner a bond in an amount fixed by the commissioner, signed by an approved surety company authorized to transact business in Tennessee, guaranteeing the safekeeping and delivery of such funds upon demand.
  2. (b) It is the duty of the commissioner to keep detailed records of the tax collected and to make report thereof to the comptroller of the treasury not later than the fifteenth day of the months of January, April, July and October each year of such collections made during the preceding quarterly period, remitting with such reports the amount so reported, which shall be and become a part of the general fund of the state.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(8)
  • Code 1932, § 1280
  • T.C.A. (orig. ed.), § 30-1623.
§ 67-8-416. Refunds authorized. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. The commissioner is empowered to make refund of any excess, erroneous or improper tax payment received by the commissioner out of the funds in the commissioner's keeping to the estate from which it is received.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 3(8)
  • Code 1932, § 1280
  • T.C.A. (orig. ed.), § 30-1623.
§ 67-8-417. Payment of tax from estate — Transfer or distribution of property. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a)
    1. (1) All taxes due by an estate under this part and part 3 of this chapter shall be paid by the executor, administrator or trustee out of the funds in the executor's, administrator's or trustee's hands for distribution, and no part of the property of an estate subject to this tax shall be distributed until the tax thereon has been paid; provided, that such executor, administrator or trustee may, with the written consent of the commissioner, be authorized to sell or transfer so much of the property of the estate as may be necessary to pay the tax.
    2. (2) For the sole purpose of negotiating the sale of stocks, bonds and other registered assets, and real estate prior to the time of the payment of taxes due the state, the commissioner is authorized to waive the lien against the transferred property for taxes due by an estate pursuant to § 67-1-1403; however, such waiver shall not affect the lien arising in favor of the state against the estate for such taxes due.
    3. (3) Anything to the contrary notwithstanding, where a decedent's death terminates the decedent's interest in stocks, bonds or other registered assets, and/or real estate, which property was previously owned with the surviving spouse in a tenancy by the entirety or a joint tenancy with right of survivorship, the commissioner's waiver pursuant to subdivision (a)(2) is not required to permit the surviving spouse to transfer such property free of liens for taxes due by the decedent's estate under this part and part 3 of this chapter.
  2. (b) If any part of the gross estate consists of property, the value of which is includable in the gross estate by reason of § 67-8-304(10), relating to certain property for which a marital deduction was previously allowed, the decedent's estate shall be entitled to recover from the person receiving the property the amount by which the total tax under parts 3-5 of this chapter that has been paid exceeds the total tax under parts 3-5 of this chapter that would have been payable, if the value of such property had not been included in the gross estate.
  3. (c) Subsection (b) shall not apply, if the decedent otherwise directs by will.
  4. (d) For purposes of subsections (a)-(c), penalty and/or interest attributable to such taxes shall be considered to be a part of such taxes.
  5. (e)
    1. (1) No person or persons, corporation or association, having in such person's, or its, possession or control, property of a decedent forming a part of such person's estate, or property transferred in any manner as to be subject to taxation under this part and part 3 of this chapter, shall deliver or transfer the property to representatives of the estate of the decedent, or to any other person or persons, corporation or association, or upon their order or request, unless notice of the time and place of the intended transfer or delivery be served upon the commissioner at least twenty (20) days prior thereto, nor shall any person deliver or transfer any such property without retaining a sufficient portion or amount thereof to pay any tax and interest that such property may be subject to a lien under this part and part 3 of this chapter, unless the commissioner consents in writing to such transfer.
    2. (2) The prohibitions contained in this subsection (e) shall apply to the transfer by a corporation, association or joint stock company of the shares of its capital stock or other interest in the shares, including registered bonds or other registered securities.
    3. (3) It is lawful for the commissioner to examine the property at the time of delivery or transfer.
    4. (4) Failure to serve such notice, or failure to allow such examination, or failure to retain a sufficient amount to pay the tax and interest, shall, unless the commissioner consents to the transfer, render such person or persons, corporation or association liable to the payment of the amount of the tax for which a lien is imposed upon such property by this part and part 3 of this chapter, with interest thereon and the costs of any proceeding necessary for the enforcement of same in the courts of Tennessee; provided, that the penalty provided by this subsection (e) shall not apply to any insurance company that pays the proceeds of any policy of insurance on the life of the decedent after notifying the commissioner that such payment is to be made.
    5. (5) This subsection (e) shall not apply to the delivery or transfer of property held in a safe deposit box by a bank, savings and loan association or savings bank, such delivery or transfer being subject to § 45-2-905; nor shall this subsection (e) apply to the delivery or transfer of property held in an account of the bank, savings and loan association or savings bank, if the bank, savings and loan association or savings bank reports to the department of revenue such delivery or transfer involving the accounts of a decedent having an aggregate value of fifty thousand dollars ($50,000) or greater, excluding accounts owned jointly with a surviving spouse.
Backlinks (2)
History (7)
  • Acts 1929 (Ex. Sess.), ch. 29, § 5(1), (4)
  • Code 1932, §§ 1288, 1291
  • Acts 1983, ch. 73, § 13
  • T.C.A. (orig. ed.), §§ 30-1631, 30-1634
  • Acts 1990, ch. 627, § 1
  • 1993, ch. 33, § 1
  • 1998, ch. 1085, § 2.
§ 67-8-418. Safe deposit vaults. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) No person engaged in the business of renting safe deposit vaults or other receptacles of similar character, shall rent any such vault or receptacle without first requiring all persons entitled to access thereto to agree in writing to notify the lessor of the death of any such person, and all persons having the right of access to any such safe deposit vault or receptacle upon the death of any other person having the right of access thereto, before seeking access, shall notify the lessor of the death of such person.
  2. (b) No lessor shall permit access to any safe deposit vault or receptacle by anyone after the death of any person who, at the time of death, had the right or privilege of access thereto, either as principal, deputy, agent, cotenant or otherwise, without notice to the commissioner.
  3. (c) At the time of opening any such vault or receptacle after the death of any person having the right of access thereto, the commissioner shall have the right to be present, in person or by representative, and to examine and inventory its contents.
  4. (d) Any violation of this section shall subject the violator to a penalty of five hundred dollars ($500) to be recovered by the commissioner for the benefit of the state in any court of competent jurisdiction.
  5. (e) This section shall not apply to any bank, savings bank, saving and loan association, or trust company subject to the procedures provided in title 45, chapter 2, part 9.
Backlinks (1)
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 5(2)
  • Code 1932, § 1289
  • T.C.A. (orig. ed.), § 30-1632
  • Acts 1998, ch. 1085, § 3.
§ 67-8-419. Time for payment — Installments — Extensions. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) The tax imposed by this part and part 3 of this chapter shall be due and payable nine (9) months after the death of the transferor, or at the expiration of the additional time granted by the commissioner pursuant to § 67-8-409, but such tax may be paid sooner, if assessment thereof has been completed, and if the personal representative desires to make payment.
  2. (b) When it is shown to the satisfaction of the commissioner that the payment on the due date of any part of the amount determined to be due would impose undue hardship upon the estate, or would necessitate the sale of any portion of the estate at a sacrifice, or at an inadequate price, the commissioner may extend the time for the payment of any such part of the tax, or may enter into an agreement with the representative of the estate for the payment of the tax due thereon in installments. Such an agreement for the payment of the tax in installments, or for the deferment of payments, shall not affect the liability of the estate for interest. The running of the statute of limitations for assessment and collection, as provided in § 67-1-1501, shall be suspended for the period of any such extension. If an extension is granted, the commissioner may, if the commissioner deems it necessary, require the executor to furnish security for the payment of the amount in respect of which the extension is granted in accordance with the terms of the extension.
    Backlinks (1)
History (9)
  • Acts 1929 (Ex. Sess.), ch. 29, § 4(1), (3)
  • Code 1932, §§ 1282, 1284
  • Acts 1937, ch. 129, § 5
  • 1943, ch. 114, §§ 3, 5
  • C. Supp. 1950, §§ 1282, 1284
  • Acts 1970, ch. 559, § 3
  • 1971, ch. 118, § 3
  • T.C.A. (orig. ed.), §§ 30-1625, 30-1627
  • Acts 1985, ch. 453, § 9.
§ 67-8-420. Receipts and certificates of payment. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) Upon the payment of the whole tax imposed against an estate under this part and part 3 of this chapter, the commissioner shall issue receipt therefor in duplicate to the representative of the estate, one (1) copy of which shall be filed in the office of the clerk of the court in which such estate was being administered, and no final accounting or settlement of such estate shall be made by the court prior to the filing of such receipt, or until the filing of a certificate by the commissioner that no tax is due thereon, such receipt or certificate to be furnished by the commissioner without cost to the estate or to the beneficiaries thereof.
  2. (b) Upon the payment of a fee of one dollar ($1.00) to the commissioner, which fee shall accrue to the state, any person other than the representative of the estate shall be entitled to receive from the commissioner a certificate to the effect that the tax upon any particular parcel or tract of real estate has been paid, and such certificate may be recorded in the office of the register of the county in which such real estate is situated, and it shall be conclusive proof that the tax applicable to such real estate has been paid and any lien thereon shall be released. However, the filing of such receipt or certificate shall not be necessary, if filing of a return has been waived pursuant to § 67-8-409(g).
Backlinks (1)
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 4(4)
  • Code 1932, § 1285
  • T.C.A. (orig. ed.), § 30-1628
  • Acts 1997, ch. 426, § 24.
§ 67-8-422. Violations — Penalties. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a)
    1. (1) Failure or refusal to make any report or return provided for in this part and part 3 of this chapter is a Class C misdemeanor.
    2. (2) The payment of any penalty imposed shall in no wise affect the liability for the tax, interest and any other penalties prescribed in this part.
  2. (b) The making of a false return or report or affidavit with intent to deceive constitutes the crime of perjury.
History (4)
  • Acts 1929 (Ex. Sess.), ch. 29, § 5(3)
  • Code 1932, § 1290
  • T.C.A. (orig. ed.), § 30-1633
  • Acts 1989, ch. 591, § 113.
§ 67-8-423. Liability of executors, administrators and trustees. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. Executors, administrators and trustees shall be liable for all taxes payable on the estate, together with any interest or penalties provided in this part, until the same shall have been paid; provided, that in no case shall such executor, administrator or trustee be liable for a greater amount than was actually received by the executor, administrator or trustee.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 5(5)
  • Code 1932, § 1292
  • T.C.A. (orig. ed.), § 30-1635.
§ 67-8-424. Insurance companies — Notice of death of insured. [Not applicable to decedents who die in 2016 or after, see § 67-8-425.]
  1. (a) Every life insurance company or association doing business in this state shall, within ten (10) days after the approval of proof of death of a person insured under a policy or policies, in such companies or association, give notice in writing to the commissioner where the estate is being administered stating:
    1. (1) The date and amount of each policy;
    2. (2) The name and address of each beneficiary in the policy; and
    3. (3) The time and manner of payment.
  2. (b) Any insurance company doing business in the state, failing or refusing to comply with this part and part 3 of this chapter, shall forfeit its charter in this state and its right to do business within the state.
  3. (c) Upon certification from the commissioner of commerce and insurance that any insurance company has failed or refused to comply with parts 3 and 4 of this chapter, the secretary of state shall forthwith cancel the charter of such company and shall immediately notify such insurance company that it is barred from doing further business in the state.
History (3)
  • Acts 1929 (Ex. Sess.), ch. 29, § 5(6)
  • Code 1932, § 1293
  • T.C.A. (orig. ed.), § 30-1636.
§ 67-8-425. Applicability of part to decedents who die in 2016 or later.
  1. This part does not apply in the case of any decedent who died in 2016 or in any subsequent year.
History (1)
  • Acts 2012, ch. 1057, § 4.
Part 5 Inheritance Tax — Disputed Domicile [Not applicable to decedents who die in 2016 or after, see § 67-8-507.]
§ 67-8-501. Part definitions. [Not applicable to decedents who die in 2016 or after, see § 67-8-507.]
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Executor” means any executor of the will or administrator of the estate of a decedent, except an ancillary administrator;
    2. (2) “Inheritance tax” means any tax levied by a state on account of the transfer or shifting of economic benefits in property at death, or in contemplation thereof, or intended to take effect in possession or enjoyment at or after death, whether denominated an “inheritance tax,” “transfer tax,” “succession tax,” “estate tax,” “death duty,” “death dues” or otherwise;
    3. (3) “Interested person” means any person who may be entitled to receive, or who has received, any property or interest that may be required to be considered in computing the death tax of any state involved; and
    4. (4) “Taxing official” means the commissioner of revenue, and in any other reciprocal state, the officer or body designated in the statute of such state substantially similar to this part.
History (3)
  • Acts 1951, ch. 183, § 1 (Williams, § 1295.1)
  • impl. am. Acts 1959, ch. 9, § 14
  • T.C.A. (orig. ed.), § 30-1638.
§ 67-8-502. Election of provisions — Invocation of provisions by election — Effect of election. [Not applicable to decedents who die in 2016 or after, see § 67-8-507.]
  1. In any case in which this state and one (1) or more other states each claims that it was the domicile of a decedent at the time of death, and no judicial determination of domicile for inheritance tax purposes has been made in any such states, any executor, or the taxing official of any such state, may elect to invoke this part. Such election shall be evidenced by the sending of a notice by registered mail, receipt requested, to the taxing officials of each such state, and to each executor, ancillary administrator and interested person. Any executor may reject such election by sending a notice by registered mail, receipt requested, to the taxing officials involved and to all other executors within forty (40) days after the receipt of such notice of election. If such election be rejected, no further proceedings shall be had under this part. If such election be not rejected, the dispute as to the inheritance taxes shall be determined solely as provided in this part, and no other proceedings to determine or assess such inheritance taxes shall thereafter be instituted in the courts of this state or otherwise.
Backlinks (1)
History (2)
  • Acts 1951, ch. 183, § 2 (Williams, § 1295.2)
  • T.C.A. (orig. ed.), § 30-1639.
§ 67-8-503. Agreement by states. [Not applicable to decedents who die in 2016 or after, see § 67-8-507.]
  1. (a) In any case in which an election is made as provided in § 67-8-502 and not rejected, the commissioner may enter into a written agreement with the other taxing officials involved and with the executors, to accept a certain sum in full payment of any inheritance tax, together with interest and penalties, that may be due this state; provided, that the agreement also fixes the amount to be paid the other state or states.
  2. (b) If an agreement cannot be reached and the arbitration proceedings specified in § 67-8-504 are commenced, and thereafter an agreement is arrived at, a written agreement may be entered into at any time before such proceeding is concluded, notwithstanding the commencement of such proceeding.
  3. (c) Upon the filing of such agreement or duplicate thereof with the authority that would have jurisdiction to assess the inheritance tax of this state if the decedent died domiciled in this state, an assessment shall be made as provided in the agreement, and such assessment, except as otherwise provided in this part, shall finally and conclusively fix and determine the amount of inheritance tax due this state.
  4. (d) In the event that the aggregate amount payable under such agreement to the states involved is less than the maximum credit allowable to the estate against the United States estate tax imposed with respect thereto, the executor forthwith shall also pay to the commissioner the same percentage of the difference between such aggregate amount and the amount of such credit, as the amount payable to the commissioner under the agreement bears to such aggregate amount.
Backlinks (1)
History (2)
  • Acts 1951, ch. 183, § 3 (Williams, § 1295.3)
  • T.C.A. (orig. ed.), § 30-1640.
§ 67-8-504. Arbitration. [Not applicable to decedents who die in 2016 or after, see § 67-8-507.]
  1. If in any such case it appears that an agreement cannot be reached as provided in § 67-8-503, or if one (1) year shall have elapsed from the date of the election without such an agreement having been reached, the domicile of the decedent at the time of death shall be determined solely for inheritance tax purposes as follows:
    1. (1) Where only this state and one (1) other state are involved, the commissioner and the taxing official of such other state shall each appoint a member of a board of arbitration, and the members so appointed shall select the third member of the board. If this state and more than one (1) other state are involved, the taxing officials thereof shall agree upon the authorities charged with the duty of administrating inheritance tax laws in three (3) states not involved, each of which authorities shall appoint a member of the board. The members of the board shall elect one (1) of their number as chair;
    2. (2) Such board shall hold hearings at such places as are deemed necessary, upon reasonable notice to the executors, ancillary administrators, all other interested persons, and the taxing officials of the states involved, all of whom shall be entitled to be heard;
    3. (3) Such board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of books, papers and documents and issue commissions to take testimony. Subpoenas may be issued by any members of the board. Failure to obey a subpoena may be punished by a judge of any court of record in the same manner as if the subpoena had been issued by such judge or by the court in which such judge functions;
    4. (4) Such board shall apply, whenever practicable, the rules of evidence which prevail in federal courts under the federal rules of civil procedure at the time of the hearing;
    5. (5) Such board shall, by majority vote, determine the domicile of the decedent at the time of death. Such determination shall be final and conclusive, and shall bind this state and all of its judicial and administrative officials on all questions concerning the domicile of the decedent for inheritance tax purposes;
    6. (6) The reasonable compensation and expenses of the members of the board and employees thereof shall be agreed upon among such members, the taxing officials involved, and the executors. In the event an agreement cannot be reached, such compensation and expenses shall be determined by such taxing officials, and if they cannot agree, by the appropriate probate court of the state determined to be the domicile. Such amount shall be borne by the estate and shall be deemed an administration expense; and
    7. (7) The determination of such board and the record of its proceedings shall be filed with the authority having jurisdiction to assess the inheritance tax in the state determined to be the domicile of the decedent, and with the authorities that would have had jurisdiction to assess the inheritance tax in each of the other states involved, if the decedent had been found to be domiciled in the state.
Backlinks (1)
History (2)
  • Acts 1951, ch. 183, § 4 (Williams, § 1295.4)
  • T.C.A. (orig. ed.), § 30-1641.
§ 67-8-506. Reciprocity. [Not applicable to decedents who die in 2016 or after, see § 67-8-507.]
  1. This part shall apply only in cases in which each of the states involved has in effect a law substantially similar to this part.
History (2)
  • Acts 1951, ch. 183, § 6 (Williams, § 1295.6
  • T.C.A. (orig. ed.), § 30-1643.
§ 67-8-507. Applicability of part to decedents who die in 2016 or later.
  1. This part does not apply in the case of any decedent who died in 2016 or in any subsequent year.
History (1)
  • Acts 2012, ch. 1057, § 5.
Part 6 Generation-Skipping Transfer Tax Law
§ 67-8-601. Short title.
  1. This part shall be known and may be cited as the “Generation-Skipping Transfer Tax Law.”
History (2)
  • Acts 1978, ch. 731, § 12
  • T.C.A., § 67-6101.
§ 67-8-602. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Federal generation-skipping transfer tax” means the tax imposed by 26 U.S.C. § 2601;
    2. (2) “Generation-skipping transfer” means a transfer subject to the tax imposed by 26 U.S.C. § 2601 where the original transferor is a resident of Tennessee at the date of the transfer, or the property transferred is real property or tangible personal property with an actual situs in Tennessee; and
    3. (3) “Original transferor” means any grantor, donor, trustor or testator who by grant, gift, trust or will makes a transfer of real or personal property that results in the imposition of a federal generation-skipping transfer tax under applicable provisions of the Internal Revenue Code (26 U.S.C.).
History (3)
  • Acts 1978, ch. 731, § 13
  • T.C.A., § 67-6-102
  • Acts 1988, ch. 613, § 1.
§ 67-8-603. Imposition of tax — Credits.
  1. (a) A tax is imposed upon every generation-skipping transfer in an amount equal to the amount allowable as a credit for state inheritance taxes under 26 U.S.C. § 2604.
  2. (b) If any of the property transferred is real property located in another state or is tangible personal property having an actual situs in another state that requires the payment of a tax for which credit is received against the federal generation-skipping transfer tax, any tax due pursuant to subsection (a) shall be reduced by an amount that bears the same ratio to the total state tax credit allowable for federal generation-skipping transfer tax purposes as the value of such property taxable in such other state bears to the value of the gross generation-skipping transfer for federal generation-skipping transfer tax purposes.
Backlinks (3)
History (3)
  • Acts 1978, ch. 731, § 14
  • T.C.A., § 67-6103
  • Acts 1988, ch. 613, § 2.
§ 67-8-604. Returns.
  1. (a) Every person required to file a return reporting a generation-skipping transfer under applicable federal statute and regulations shall file a return with the department of revenue on or before the last day prescribed for filing the federal return, and shall pay the tax imposed by § 67-8-603 at that time. There shall be attached to the return filed with the department a duplicate copy of the federal return.
  2. (b) The return shall contain such information and be in such form as the commissioner may prescribe and shall state the amount of tax due under § 67-8-603. The return shall be executed under penalty of perjury.
  3. (c) If, after the filing of a duplicate copy of the federal return, the federal authorities shall increase or decrease the amount of the federal generation-skipping transfer tax, then an amended return shall be filed within thirty (30) days of the notice of the increase or decrease by the federal authorities with the department showing all changes made in the original return and the amount of increase or decrease in the federal generation-skipping transfer tax. Any increase in the amount of tax due shall be paid with such amended return, and any decrease may be refunded by the department; provided, that a claim therefor, supported by proper proof, shall be filed with the commissioner within two (2) years from the date of such redetermination of tax by the federal authorities.
Backlinks (1)
History (2)
  • Acts 1978, ch. 731, § 15
  • T.C.A., § 67-6104.
§ 67-8-605. Administrative and enforcement procedures.
  1. To the extent not inconsistent with §§ 67-8-603 and 67-8-604, the administrative and enforcement provisions of the inheritance tax law, as stated in parts 3-5 of this chapter, shall be applicable to this part in the event the original transferor is not alive at the time of the transfer. Notwithstanding § 67-8-118, if the original transferor is alive at the time of the transfer, the administrative and enforcement provisions of the gift tax law, as stated in part 1 of this chapter, shall be applicable to this part. Any other administrative or enforcement provision relating to the duty and power of the commissioner of revenue to collect state taxes shall be applicable to this part to the extent not inconsistent with it.
History (4)
  • Acts 1978, ch. 731, § 16
  • T.C.A., § 67-6105
  • Acts 1988, ch. 613, § 3
  • 2012, ch. 1085, § 5.
Part 7 Payment of Transfer Taxes in Kind Act
§ 67-8-701. Short title — Purpose.
  1. (a) This part shall be known and may be cited as the “Payment of Transfer Taxes in Kind Act.”
  2. (b) It is the intent of this part, in appropriate circumstances, to allow the payment of transfer taxes under this chapter by the transfer to the state of unique objects of significant historical or artistic interest, unique sites or buildings of historical interest, or interests in real property having recreational, cultural, conservational, or wildlife value, or value to the state for a public purpose. It is not the intent to create a right in anyone to pay transfer taxes in kind.
History (1)
  • Acts 1989, ch. 236, § 2.
§ 67-8-702. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Department” means the department of revenue;
    2. (2) “Donor” means any person responsible for the payment of transfer taxes to the state, including, but not limited to, a personal representative, executor, administrator, individual taxpayer, joint tenant, heir, legatee, devisee, grantee, transferee, trustee, tenant in common, conservator, guardian, custodian, or person interested in an estate or trust;
    3. (3) “In-kind payment” means a payment of transfer taxes or a portion thereof by the transfer to a receiving entity of qualified property;
    4. (4) “Interest in real property having recreational, conservational, or wildlife value” means any interest in real property that is of unique value as a scenic, historic, archaeological, scientific, or recreational resource to the state and that will contribute to the cultural, recreational, or economic life of the people, or is a unique and critical habitat for wildlife in the state;
    5. (5) “Interest in real property having state use value” means any interest in real property that is of unique value to the receiving entity to carry out its stated purposes;
    6. (6) “Object of significant artistic or historical value” means any object of art, collection, painting, portrait, mural, photograph, statue, tablet, carving, bas-relief, engraving, relic, coin, furniture, textile, basketry, artifact, natural specimen, rare book, author's papers, or other object of artistic, historical, or technical interest or of intrinsic cultural value;
    7. (7) “Qualified property” means an object of significant artistic or historical value, a site of significant historical interest, an interest in real property having recreational, conservational or wildlife value, or an interest in real property having state use value;
    8. (8) “Receiving entity” means the state of Tennessee, any department or agency thereof, any county, city, or other political subdivision of the state, or any state museum or state institution of health or education;
    9. (9) “Site of significant historical interest” means any real property, building, or fixture, or any combination thereof, of unique and peculiar historical significance; and
    10. (10) “Transfer taxes” means all the taxes imposed by this chapter, including the inheritance, estate, gift and generation-skipping transfer taxes, and interest and penalties thereon.
History (1)
  • Acts 1989, ch. 236, § 3.
§ 67-8-703. In-kind payment of transfer taxes — Appraisal.
  1. (a) Any donor may make application to transfer qualified property to a receiving entity as an in-kind payment of transfer taxes.
  2. (b) The donor shall first obtain a written appraisal of the qualified property. The donor shall then notify the receiving entity in writing of the desire to offer the qualified property to the receiving entity. The receiving entity shall within a reasonable period of time notify the donor in writing as to whether it is willing to accept the qualified property. Any decision by a receiving entity not to accept the qualified property shall be final and not appealable.
  3. (c) If a receiving entity indicates its willingness to accept the qualified property, the donor shall then submit an application to the department for approval of an in-kind payment containing the following information:
    1. (1) Name and address of donor;
    2. (2) Copy of transfer tax return for which tax is payable, if prepared; otherwise, information concerning taxes to be paid;
    3. (3) Copy of appraisal;
    4. (4) Statement of how the qualified property meets the statutory definition;
    5. (5) A copy of the correspondence with the receiving entity evidencing its willingness to accept the qualified property; and
    6. (6) A statement from the donor or the receiving entity outlining the proposed and potential uses of the qualified property, and the source of funds for support and maintenance of the qualified property.
  4. (d) The department shall have ninety (90) days from the date of receipt of a completed application for in-kind payment to approve or deny the application. The department may request that the donor amend the application, including the valuation, as a condition of approval. If the department approves the application, the receiving entity shall assume title to the property as soon as practicable.
  5. (e) If the department fails to respond to an application for in-kind payment within ninety (90) days of its receipt, the application shall be deemed to be denied. The approval or denial of an application for in-kind payment shall be within the absolute discretion of the department. A denial of an application, either by response or by failure to respond, shall be final, and such a decision shall not be appealable under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, nor shall such decision be appealable to any court.
  6. (f) The department in its discretion may require the donor to pay for a second appraisal by an appraiser selected by the department whenever the qualified property is unusual or outside of the normal expertise of the department to appraise.
History (1)
  • Acts 1989, ch. 236, § 4.
§ 67-8-704. In-kind payment — Credit — Deferral — Limitation.
  1. (a) Upon assumption of title by a receiving entity to property accepted as an in-kind payment, the department shall credit to the donor against the amount of taxes owed the valuation of the qualified property approved in the donor's application. In no case shall any credit allowed by this part be greater than the amount of tax owed, and any excess value shall constitute a gift to the receiving entity.
  2. (b) The department shall defer payment of transfer tax, or portion thereof, that is under review for in-kind payment from the date of receipt of a completed application, so that the tax due, or portion thereof, is exempt from interest and penalties during the pendency of an application. Interest and penalties shall recommence upon the department's denial of the application.
  3. (c) The department shall not during any fiscal year approve in-kind payments that have an aggregate value of more than five million dollars ($5,000,000), unless the governor, on application from the department, permits the department to exceed that limit.
History (1)
  • Acts 1989, ch. 236, § 5.
§ 67-8-705. Promulgation of rules and regulations.
  1. The commissioner is authorized to promulgate rules and regulations and to design forms to implement this part.
History (1)
  • Acts 1989, ch. 236, § 7.
Chapter 9 Payments in Lieu of Taxes
Part 1 Tennessee Valley Authority Tennessee State Revenue Sharing Act
§ 67-9-101. Basis of apportionment.
  1. (a) Any increase in the payments received by the state from the Tennessee Valley authority in lieu of taxes under § 13 of the act of congress creating the authority, as amended, above the payments received in the fiscal year 1977-1978 shall be apportioned between the state and local governments in the following manner:
    1. (1) Forty-eight and one-half percent (48.5%) shall be paid to or retained by the state of Tennessee;
      Backlinks (1)
    2. (2) Forty-eight and one-half percent (48.5%) shall be paid to the counties and municipalities of this state as provided in this part; and
      Backlinks (2)
    3. (3) Three percent (3%) shall be paid to impacted local governing areas that are experiencing Tennessee Valley authority construction activity on facilities to produce electric power. Such impacted areas shall be designated by the Tennessee Valley authority. Such payments to impacted areas shall be made during the period of construction activity and for one (1) full fiscal year after completion of such activity. If, in any fiscal year, there are no impacted areas, these funds shall be allocated as provided in § 67-9-102(b)(3).
      Backlinks (3)
  2. (b) The state's share of such funds shall not be less than the amount of such funds received by it during the fiscal year preceding July 1, 1978.
Backlinks (1)
History (5)
  • Acts 1947, ch. 31, § 1
  • mod. C. Supp. 1950, § 1540.2 (Williams, § 1811.32)
  • Acts 1977, ch. 181, § 1
  • T.C.A. (orig. ed.), §§ 67-2401, 67-24-101
  • Acts 1990, ch. 640, § 1.
§ 67-9-102. Proration of payments to counties and municipalities — Eligibility of impacted areas — Phasing out of payments.
  1. (a)
    1. (1) Payments provided in § 67-9-101(a)(2) shall be made in accordance with the following formula:
      1. (A) Thirty percent (30%) of the available amount shall be paid to counties in accordance with the percentage that the population of each county bears to the total state population;
      2. (B) Thirty percent (30%) of the available amount shall be paid to counties in accordance with the percentage that the total acreage of each county bears to the total acreage of the state;
      3. (C) Ten percent (10%) of the available amount shall be paid to each county containing land owned by the Tennessee Valley authority in accordance with the percentage that Tennessee Valley authority owned land in that county bears to all Tennessee Valley authority owned land in Tennessee; and
      4. (D) Thirty percent (30%) of the available amount shall be paid to incorporated municipalities in accordance with the percentage that the population of that municipality bears to the population of all incorporated municipalities in Tennessee.
    2. (2) For the purpose of making calculations in accordance with the formula in subdivision (a)(1), only the population, acreage and land contained within the Tennessee Valley authority electrical power service area shall be used to make such calculations; provided, that population, acreage and land that are not contained within the Tennessee Valley authority electrical power service area on March 8, 1990, shall continue to be utilized in making such calculations. It is the legislative intent that this subdivision (a)(2) shall apply prospectively only.
    3. (3) Before distributing to the counties and incorporated municipalities any of the payments mentioned in this section, the commissioner of finance and administration shall make a monthly deduction of four thousand four hundred sixty-two dollars ($4,462) from each payment provided in subdivisions (a)(1)(A) and (D), which shall be appropriated and transmitted for use by the advisory commission on intergovernmental relations as provided by title 4, chapter 10, part 1.
    4. (4) Each local government shall receive in such payments an amount not less than the amount of such funds received by such local government from the state during the fiscal year preceding July 1, 1978, as a portion of the Tennessee Valley authority payment in lieu of taxes to the state.
    Backlinks (1)
  2. (b)
    1. (1) The commissioner of revenue shall allocate the funds apportioned by § 67-9-101(a)(3) among the counties and municipalities, lying wholly or in part, within the impacted local governing areas designated by the Tennessee Valley authority; provided, that the total amount allocated, pursuant to this subsection (b), to any county and the municipalities within such county shall not exceed ten percent (10%) of the total impact funds apportioned by § 67-9-101(a)(3); and provided further, that the weighted population formula presently being used for allocation among counties and municipalities, of those funds apportioned by § 67-9-101(a)(3), shall be continued.
    2. (2) Such payments to impacted areas shall be made during the period of construction activity and, based on the last year of entitlement according to § 67-9-101(a)(3), for a period of three (3) full fiscal years after completion or cessation of such construction activity. Such payments shall be phased out over the three-year period by decreasing the payment made in the last year of activity by an additional twenty-five percent (25%) each year, being seventy-five percent (75%) during the first year after the last year of entitlement, fifty percent (50%) during the second year after the last year of entitlement, and twenty-five percent (25%) during the third year after the last year of entitlement.
    3. (3)
      1. (A) If, in any fiscal year, there are funds remaining after the allocation provided for in subdivisions (b)(1) and (2), or there are no impacted areas, any remaining funds apportioned by § 67-9-101(a)(3) in any fiscal year, not to exceed thirty percent (30%) of the total of such impact funds, shall be allocated by the commissioner of revenue to the University of Tennessee for use in operating the county technical assistance service in its institute for public service. Such funds shall be used for studies and research in county government, publications, education, consultative and field services to counties in problems relating to fiscal administration, accounting, tax assessment and collection, economic development, environmental concerns, conservation, improvements and public works, and in any and all matters relating to county governments. If, in any fiscal year, the amount allocated to the University of Tennessee under this subdivision (b)(3)(A) for use in operating the county technical assistance service falls below thirty percent (30%) of the total of such impact funds, then the University of Tennessee shall receive, from the funds to be paid to counties under subdivision (a)(1)(A), an amount sufficient to raise the payment to the University of Tennessee to an amount equal to thirty percent (30%) of the total of the impact funds.
      2. (B) If, in any year, there are funds remaining after the allocation provided for in subdivisions (b)(1) and (2), or there are no impacted areas and after any allocation to the University of Tennessee as provided for in this subdivision (b)(3), then any remaining funds, not to exceed twenty percent (20%) of the total of such impact funds per year, shall be allocated by the commissioner of revenue to the Tennessee advisory commission on intergovernmental relations. The Tennessee advisory commission on intergovernmental relations shall utilize such funds for an annual inventory of statewide public infrastructure needs pursuant to § 4-10-109. In order to accomplish this inventory, the commission shall annually contract for the services of the state's nine (9) development districts or an agency or entity of state or local government or higher education and shall compensate each of the development districts or the agency or entity of state or local government or higher education at the rate of five cents (5¢) per capita or fifty thousand dollars ($50,000), whichever is greater. The per capita amount shall be based upon the population estimates reported by the United States department of commerce, United States bureau of the census or its federal functional equivalent. If, in any fiscal year, the amount allocated to the Tennessee advisory commission on intergovernmental relations under this subdivision (b)(3)(B) for a public infrastructure inventory falls below twenty percent (20%) of the total of such impact funds, then the Tennessee advisory commission on intergovernmental relations shall receive, from the funds to be paid to the counties and municipalities under subdivision (a)(1), an amount sufficient to raise the payment to the Tennessee advisory commission on intergovernmental relations for this purpose to an amount equal to twenty percent (20%) of the total of the impact funds.
      3. (C) If, in any year, there are funds remaining after the allocation provided for in this subdivision (b)(3) and subdivisions (b)(1) and (2), then any remaining funds, not to exceed twenty percent (20%) of the total of such impact funds per year, shall be allocated by the commissioner of revenue to the Tennessee advisory commission on intergovernmental relations. Such funds shall be used for studies and research pertaining to state-local fiscal relations, including state-shared taxes, education finance, the property tax, fiscal impacts of policy changes, and issues related to changing federalism, including federal devolution, block grants, preemptions, mandates, and the Tenth Amendment to the Constitution of the United States. If, in any fiscal year, the amount allocated to the Tennessee advisory commission on intergovernmental relations under this subdivision (b)(3)(C) falls below twenty percent (20%) of the total of such impact funds, then the Tennessee advisory commission on intergovernmental relations shall receive, from the funds to be paid to the counties and municipalities under subdivision (a)(1), an amount sufficient to raise the payment to the Tennessee advisory commission on intergovernmental relations to an amount equal to twenty percent (20%) of the total of the impact funds.
      4. (D) If, in any fiscal year, there are funds remaining after the allocation provided for in this subdivision (b)(3) and subdivisions (b)(1) and (2), then any remaining funds shall be allocated to the Tennessee central economic authority created by § 64-5-101, which has acquired a former nuclear site from the Tennessee valley authority. The commissioner of revenue shall determine each fiscal year the funds remaining after all prior authorized distributions have been made and allocate those funds to the Tennessee central economic authority. The funds shall be used to construct roads, install water and wastewater facilities, and provide other public infrastructure to assist in the development of the sites and other land as regional industrial/business and job incubator facilities consistent with regional development plans. If, in any fiscal year, the total amount of funds allocated is less than the total amount of funds available, any remaining funds shall be distributed in the same manner as the funds in subsection (a). If, in any fiscal year beginning with the 2008-2009 fiscal year and ending in the 2023-2024 fiscal year, the amount allocated to the Tennessee central economic authority under this subdivision (b)(3)(D) falls below ten percent (10%) of the total of the impact funds, then the Tennessee central economic authority shall receive, from the funds paid to or retained by this state under § 67-9-101(a)(1), an amount sufficient to raise the payment to the Tennessee central economic authority to an amount equal to ten percent (10%) of the total of the impact funds, to the extent that the payment can be made without reducing the amount paid to or retained by this state under § 67-9-101(a)(1) below the amount paid to or retained by the state in fiscal year 2007-2008.
      5. (E) If, in any fiscal year, the total amount of funds allocated is less than the total amount of funds available, any remaining funds shall be distributed in the same manner as the funds in subsection (a).
      Backlinks (2)
    4. (4) Funds allocated pursuant to subdivisions (a)(3) and (b)(3) shall not be subject to reversion, and any unspent funds shall be carried forward.
Backlinks (1)
History (21)
  • Acts 1947, ch. 31, § 2
  • C. Supp. 1950, § 1540.3 (Williams, § 1811.33)
  • Acts 1972, ch. 758, § 1
  • 1977, ch. 181, § 1
  • T.C.A. (orig. ed.), § 67-2402
  • Acts 1981, ch. 22, § 1
  • T.C.A., § 67-24-102
  • Acts 1987, ch. 186, § 1
  • 1990, ch. 634, § 1
  • 1990, ch. 638, §§ 1, 2
  • 1990, ch. 640, §§ 2, 3
  • 1996, ch. 817, § 3
  • 1997, ch. 241, §§ 1-3
  • 1999, ch. 326, §§ 1, 2
  • 2000, ch. 672, § 1
  • 2002, ch. 865, § 1
  • 2008, ch. 1158, § 1
  • 2008, ch. 1185, §§ 1-3
  • 2009, ch. 530, § 100
  • 2014, ch. 955, § 1
  • 2018, ch. 890, § 1.
§ 67-9-103. Distribution of payments.
  1. (a) Upon receipt of any payments in lieu of taxes by the Tennessee Valley authority, the commissioner of revenue shall be notified.
  2. (b) The commissioner of revenue shall determine, in accordance with this part, the payments to local governments and shall direct the commissioner of finance and administration to make such payments.
History (8)
  • Acts 1947, ch. 31, § 3
  • C. Supp. 1950, § 1540.4 (Williams, § 1811.34)
  • impl. am. Acts 1959, ch. 9, § 3
  • impl. am. Acts 1961, ch. 97, § 3
  • Acts 1977, ch. 181, § 1
  • 1981, ch. 22, § 2
  • T.C.A. (orig. ed.), §§ 67-2403, 67-24-103
  • Acts 2009, ch. 530, § 101.
Part 2 Local Hospital Authorities
§ 67-9-201. Leased commercial real property.
  1. (a) Notwithstanding any other provision of the law to the contrary, a hospital authority, created by a county or municipality pursuant to private act or local resolution, that owns real property leased for commercial purposes, separate and distinct from the real property owned by such hospital authority upon which hospitals or health care facilities are located, shall agree to the payment of tax equivalents to any municipality and county within which such leased commercial property is located.
  2. (b) The amount of such payments shall be fixed at the amount of ad valorem taxes otherwise due and payable by a tax paying entity upon the assessed value of the leased commercial property.
  3. (c) If such property is located within the boundaries of a municipality, pro rata shares of the total amount collected from such hospital authority shall be distributed to the county and municipality based on the tax rates of each.
History (2)
  • Acts 1981, ch. 141, § 1
  • T.C.A., § 67-24-201.
Chapter 10 Health Savings Account Act
§ 67-10-101. Short title.
  1. This chapter shall be known and may be cited as the “Health Savings Account Act.”
History (1)
  • Acts 2006, ch. 873, § 1.
§ 67-10-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Deductible” means the total deductible for an eligible individual and all the dependents of that eligible individual for a calendar year;
    2. (2) “Dependent” means the spouse or child of the eligible individual as defined in § 152 of the Internal Revenue Code (26 U.S.C. § 152), subject to any additional modifications imposed by § 223(d)(2) of the Internal Revenue Code (26 U.S.C. § 223(d)(2));
    3. (3) “Eligible individual” means the individual taxpayer, including employees of an employer who contributes to health savings accounts on the employees' behalf, who:
      1. (A) Must be covered by a high deductible health plan individually or with the individual's dependent;
      2. (B) May not be covered under any health plan that is not a high deductible health plan, except for:
        1. (i) Coverage for accidents, disability, dental care, vision care, and long-term care;
        2. (ii) Workers' compensation insurance;
        3. (iii) Insurance for a specified disease or illness;
        4. (iv) Insurance paying a fixed amount per day per hospitalization; and
        5. (v) Coverage for tort liabilities or liabilities relating to ownership or use of property; and
      3. (C) Establishes, or on whose behalf, the health savings account is established;
    4. (4) “Health savings account” or “account” means a trust or custodian established pursuant to a health savings account program exclusively to pay the qualified medical expenses of an eligible individual or the individual's dependents, but only if the written governing instrument creating the account meets the following requirements:
      1. (A) Except in the case of a rollover contribution, no contribution shall be accepted:
        1. (i) Unless it is in cash; or
        2. (ii) To the extent the contribution, when added to the previous contributions to the account for the calendar year, exceeds one hundred percent (100%) of the eligible individual's deductible, or two thousand six hundred dollars ($2,600) for an individual, or five thousand one hundred fifty dollars ($5,150) per family, or such dollar amounts as established in accordance with § 67-10-106, whichever is lower;
      2. (B) The trustee or custodian is a bank, an insurance company, or another person approved by the U.S. department of treasury;
      3. (C) No part of the trust assets will be invested in life insurance contracts;
      4. (D) The assets of the account will not be commingled with other property, except as allowed for under individual retirement accounts;
      5. (E) Eligible individual's interest in the account is nonforfeitable; and
      6. (F) Eligible individuals who have attained age fifty-five (55) before the end of the year may make additional catch-up contributions into the account in the amount determined in accordance with the following:
        1. (i) In 2005, six hundred dollars ($600);
        2. (ii) In 2006, seven hundred dollars ($700);
        3. (iii) In 2007, eight hundred dollars ($ 800);
        4. (iv) In 2008, nine hundred dollars ($ 900); and
        5. (v) In 2009 and thereafter, one thousand dollars ($1,000);
      Backlinks (1)
    5. (5) “Health savings account program” or “program” means a program that includes all of the following:
      1. (A) The purchase by an eligible individual or by an employer of a high deductible health plan; and
      2. (B) The contribution into a health savings account by or on behalf of an eligible individual or on behalf of an employee by the employee's employer. The total annual contribution may not exceed the amount of the plan's higher deductible or the amounts listed in subdivision (4)(A)(ii);
    6. (6) “High deductible health plan” means a health plan with:
      1. (A) In the case of self-only coverage, an annual deductible that is not less than one thousand dollars ($1,000), and the sum of the annual deductible and other out-of-pocket expenses required to be paid under the plan for covered benefits does not exceed five thousand one hundred dollars ($5,100), or such other amounts for an annual deductible and out-of-pocket expenses established in accordance with § 67-10-106;
      2. (B) In the case of family coverage, an annual deductible of not less than two thousand dollars ($2,000), and the sum of the annual deductible and other annual out-of-pocket expenses required to be paid under the plan for covered benefits does not exceed ten thousand two hundred dollars ($10,200), or such other amounts for an annual deductible or out-of-pocket expenses established in accordance with § 67-10-106; and
      3. (C) A plan shall not fail to be treated as a high deductible plan by reason of failing to have a deductible for preventive care or, in the case of network plans, for having out-of-pocket expenses or annual deductibles for services provided outside the network that exceed the limitations in this section; and
    7. (7) “Qualified medical expense” means an expense paid by the taxpayer for medical care described in § 213(d) of the Internal Revenue Code (26 U.S.C. § 213(d)).
Backlinks (1)
History (1)
  • Acts 2006, ch. 873, § 2.
§ 67-10-103. Contributions — Exemption from taxation.
  1. (a) For taxable years beginning after 2007, contributions may be made into a health savings account by or on behalf of a resident of Tennessee, pursuant to § 67-10-102.
  2. (b) Except as provided in § 67-10-105, principal contributed to and interest earned on a health savings account and money reimbursed to an eligible individual or an employee for qualified medical expenses are exempt from taxation under chapter 2 of this title.
History (1)
  • Acts 2006, ch. 873, § 3.
§ 67-10-104. Utilization of funds by trustee or custodian.
  1. The trustee or custodian shall utilize the funds held in a health savings account solely for the purpose of paying the qualified medical expenses of the eligible individual or the individual's dependents, or to purchase a health coverage policy certificate, or contract, if the eligible individual is receiving unemployment compensation, is exercising continuation privileges under federal law, is purchasing a long term care insurance contract, or to pay for health insurance other than a medicare supplemental policy for those who are medicare-eligible. Funds held in a health savings account shall not be used to cover expenses of the eligible individual or the individual's dependents who are otherwise covered, including, but not limited to, medical expense covered pursuant to an automobile insurance policy, workers' compensation insurance policy or self-insured plan, or another employer-funded health coverage policy, certificate, or contract.
Backlinks (2)
History (1)
  • Acts 2006, ch. 873, § 4.
§ 67-10-105. Withdrawal of money from health savings account.
  1. (a) Notwithstanding subsections (c), (d), (e), or (f), an eligible individual may withdraw money from the individual's health savings account for any purpose other than a purpose described in § 67-10-104.
  2. (b) Subject to subsection (c), if the eligible individual withdraws money for any purpose other than a purpose described in § 67-10-104 at any other time, then such amounts shall be treated as otherwise provided by applicable law.
  3. (c) The amount of disbursement of any assets of a health savings account pursuant to a filing for bankruptcy protection under title 11 of the United States Code (11 U.S.C. § 101 et seq.), by an eligible individual or person for whose benefit the account was established is not considered a withdrawal for purposes of this section. The amount of a disbursement is not subject to taxation under chapter 2 of this title.
  4. (d) The transfer of an eligible individual's interest in a health savings account to an eligible individual's spouse or former spouse under a divorce or separation instrument shall not be considered a taxable transfer made by the eligible individual, notwithstanding any other provision of this chapter, and the interest shall, after the transfer, be treated as a health savings account with respect to which the spouse is the eligible individual.
  5. (e) Upon the death of the eligible individual, the trustee or custodian shall distribute the principal and accumulated interest of the health savings account to the estate of the deceased.
  6. (f) If an employee becomes employed with a different employer that participates in a health savings account program, the employee may transfer the employee's health savings account to that new employer's trustee or custodian, or to an individually purchased account program.
Backlinks (1)
History (1)
  • Acts 2006, ch. 873, § 5.
§ 67-10-106. Cost of living adjustments.
  1. The United States department of treasury may make cost of living adjustments to dollar amounts for requirements for deductibles and out-of-pocket expenses in accordance with § 223 of the Internal Revenue Code (26 U.S.C § 223). If such adjustments are made, then the corresponding amounts in § 67-10-102(4) and (6) will be considered to be increased to reflect the adjustments.
Backlinks (3)
History (1)
  • Acts 2006, ch. 873, § 6.
§ 67-10-107. Rules and regulations.
  1. The commissioner of revenue is authorized to promulgate rules and regulations to effectuate the purposes of this chapter. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
History (1)
  • Acts 2006, ch. 873, § 8.