Tenn. Code Ann. § 67-4-2003 — TN Code / Title 67 / Chapter 4 / Section 67-4-2003
Administration by department of revenue - Forms and reports
Status: in_force

(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. (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. (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. Acts 1999, ch. 406, § 3.
(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.
(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.
(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.
Acts 1999, ch. 406, § 3.
Tenn. Code Ann. § 67-4-702 — TN Code / Title 67 / Chapter 4 / Section 67-4-702
Part definitions
Status: in_force

(a) As used in this part, unless the context otherwise requires: (1) "Affiliated business entity" means a business entity: (A) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (B) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (C) In which a person described in subdivision (a)(1)(B) directly or indirectly has more than fifty percent (50%) ownership interest. For purposes of this subdivision (a)(1)(C), a noncorporate entity is more than fifty-percent owned if upon liquidation more than fifty percent (50%) of the assets of the noncorporate entity directly or indirectly accrue to the entity having the ownership interest; (2) "Business" includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. "Business" does not include occasional and isolated sales or transactions by a person not routinely engaged in business. "Business" does not include an individual property owner who utilizes a property management company to manage a vacation lodging for overnight rentals; provided, however, that "business" shall include any other activity of such individual property owner that is subject to any tax levied by this part; (3) "Commissioner" means the commissioner of revenue or the commissioner's duly authorized assistants, except as otherwise provided in this part; (4) "Department" means the department of revenue, except as otherwise provided in this part; (5) "Dominant business activity" means the business activity that is the major and principal source of taxable gross sales of the business; (6) "Fabricating or processing tangible personal property for resale" includes only tangible personal property that is fabricated or processed for ultimate use or consumption off the premises of the one engaging in such fabricating or processing; (7) "Gross sales" means the sum total of all sales under this part as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this part; (8) "Individual property owner" means a person who owns a vacation lodging; (9) "Inventories of merchandise held for sale or exchange" includes tangible personal property held by a merchant or business for lease or rental, but does not include such property in the possession of a lessee; (10) "Lease or rental" means the leasing or renting of tangible personal property and the possession or use of the property by the lessee or renter for a consideration, without transfer of the title of such property; (11) "Natural gas marketer" means any business that is not regulated as to rates and services by the Tennessee public utility commission; that provides natural gas to customers located within this state through the procurement and shipping or transportation of such natural gas, and any ancillary services thereto; and that is required by the Federal Energy Regulatory Commission to take title to the natural gas, pursuant to Federal Energy Regulatory Commission Order No. 636-A, 57 Fed. Reg. 36128 (1992), in connection with the sale of such gas to its customers; (12) "Overnight rentals" means rental of a vacation lodging to one (1) or more individuals for temporary human lodging not to exceed a period of one hundred eighty (180) consecutive days; provided, however, that a tenancy or lease to an individual who has no other place of residence or abode during the lease period to which such individual may return after the lease terminates is not "overnight rentals"; (13) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number; (14) "Property management company" means a person who, for consideration, manages a vacation lodging for an individual property owner that provides such lodging for a rental fee to consumers; (15) "Resale" means a subsequent, bona fide sale of the property, services or taxable item by the purchaser. "Sale for resale" means the sale of the property, services, or taxable item intended for subsequent resale by the purchaser. Any sales for resale shall, however, be in strict compliance with rules and regulations promulgated by the commissioner. Sales of tangible personal property or taxable services made by a dealer to an out-of-state vendor who directs that the dealer act as the out-of-state vendor's agent to deliver or ship tangible personal property or taxable services to the out-of-state vendor's customer, who is a user or consumer, are sales for resale; (16) "Retail sale" or "sale at retail" means any sale other than a wholesale sale; (17) "Retailer" means any person primarily engaged in the business of making retail sales. For purposes of this subdivision (a)(17), "primarily" means that at least fifty percent (50%) of the taxable gross sales of the business are retail sales; (18) (A) (i) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property; (ii) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price is deemed a sale; (iii) "Sale" includes the furnishing of any of the things or services taxable under this part; (B) "Sale" does not include the transfer of tangible personal property from a wholesaler to another wholesaler or from a retailer to another retailer where the amount paid by the transferee to the transferor does not exceed the transferor's cost including freight in and storage costs, and transportation costs incurred in the transfer from the transferor to the transferee; (19) "Sales price" means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether such additional consideration shall be known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it shall be known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract. "Sales price" for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service. "Sales price" does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of such payment is retained as profit by the auctioneer, and when such payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller; (20) (A) "Seller" means every consignee, bailee, factor or auctioneer having either actual or constructive possession of tangible personal property, or having possession of the documents of title to tangible personal property, with power to sell such tangible personal property in the consignee's, bailee's, factor's or auctioneer's own name and actually so selling, is deemed the seller of such tangible personal property within the meaning of this part; and further, the consignor, bailor, principal or owner is deemed the seller of such tangible personal property to the consignee, bailee, factor or auctioneer; (B) The burden shall be upon the taxpayer in every case to establish the fact that the taxpayer is not engaged in the business of selling tangible personal property, but is acting merely as broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer's accounting records are kept in such manner as the commissioner shall by regulation provide; (21) "Services" means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever. "Services" does not include sales of tangible personal property; (22) (A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part. Such connection includes, but is not limited to, any of the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or (iv) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer; (B) Notwithstanding subdivision (a)(22)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state." For these purposes, whether a company has income effectively connected with a United States trade or business shall be determined in accordance with the Internal Revenue Code; (23) "Tangible personal property" means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. "Tangible personal property" does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; (24) "Transient vendor" means any person who brings into temporary premises and exhibits stocks of merchandise to the public for the purpose of selling or offering to sell the merchandise to the public. "Transient vendor" does not include any person selling goods by sample, brochure or sales catalog for future delivery; or to sales resulting from the prior invitation to the seller by the owner or occupant of a residence. For purposes of this definition, "merchandise" means any consumer item that is or is represented to be new or not previously owned by a consumer, and "temporary premises" means any public or quasi-public place, including a hotel, rooming house, storeroom, building or part of a building, tent, vacant lot, railroad car or motor vehicle that is temporarily occupied for the purpose of exhibiting stocks of merchandise to the public. Premises are not temporary if the same person has conducted business at those premises for more than six (6) consecutive months or has occupied the premises as the person's permanent residence for more than six (6) consecutive months; (25) "Vacation lodging" means real property, other than the primary and regular residence or abode of an individual property owner, that is utilized, or can be utilized, for overnight rentals in the absence of the individual property owner; (26) (A) "Wholesale sale" or "sale at wholesale" means any sale to a retailer for resale; (B) "Wholesale sale" or "sale at wholesale" includes the sale of industrial materials for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials become a component part of the finished product. This subdivision (a)(26)(B) shall not apply to raw or unprocessed agricultural products; (C) "Wholesale sale" or "sale at wholesale" includes the sale by a wholesaler of tangible personal property to the state of Tennessee or any county or municipality or subdivision thereof, or the sale to any religious, educational or charitable institution as defined in § 67-6-322 ; and (D) "Wholesale sale" or "sale at wholesale" includes the sale by a franchised motor vehicle dealer to a manufacturer or distributor of motor vehicles or an obligor under an extended service contract of parts or repair services, or both, necessary for repairs performed by the dealer under the manufacturer's, distributor's or obligor's warranty, and also includes predelivery inspection charges paid to a franchised motor vehicle dealer by a manufacturer or distributor of the motor vehicle; and (27) "Wholesaler" means any person primarily engaged in the business of making wholesale sales. For purposes of this subdivision (a)(26), "primarily" means that more than fifty percent (50%) of the taxable gross sales of the business are wholesale sales. (b) In any county where a metropolitan government prevails, the general services district constitutes the county and the urban services district, as well as any incorporated towns therein, constitutes the municipalities insofar as this part is concerned. Amended by 2015 Tenn. Acts, ch. 514, s 3, eff. 1/1/2016. Amended by 2014 Tenn. Acts, ch. 942,s 1, eff. 7/1/2014. 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.
(a) As used in this part, unless the context otherwise requires: (1) "Affiliated business entity" means a business entity: (A) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (B) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (C) In which a person described in subdivision (a)(1)(B) directly or indirectly has more than fifty percent (50%) ownership interest. For purposes of this subdivision (a)(1)(C), a noncorporate entity is more than fifty-percent owned if upon liquidation more than fifty percent (50%) of the assets of the noncorporate entity directly or indirectly accrue to the entity having the ownership interest; (2) "Business" includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. "Business" does not include occasional and isolated sales or transactions by a person not routinely engaged in business. "Business" does not include an individual property owner who utilizes a property management company to manage a vacation lodging for overnight rentals; provided, however, that "business" shall include any other activity of such individual property owner that is subject to any tax levied by this part; (3) "Commissioner" means the commissioner of revenue or the commissioner's duly authorized assistants, except as otherwise provided in this part; (4) "Department" means the department of revenue, except as otherwise provided in this part; (5) "Dominant business activity" means the business activity that is the major and principal source of taxable gross sales of the business; (6) "Fabricating or processing tangible personal property for resale" includes only tangible personal property that is fabricated or processed for ultimate use or consumption off the premises of the one engaging in such fabricating or processing; (7) "Gross sales" means the sum total of all sales under this part as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this part; (8) "Individual property owner" means a person who owns a vacation lodging; (9) "Inventories of merchandise held for sale or exchange" includes tangible personal property held by a merchant or business for lease or rental, but does not include such property in the possession of a lessee; (10) "Lease or rental" means the leasing or renting of tangible personal property and the possession or use of the property by the lessee or renter for a consideration, without transfer of the title of such property; (11) "Natural gas marketer" means any business that is not regulated as to rates and services by the Tennessee public utility commission; that provides natural gas to customers located within this state through the procurement and shipping or transportation of such natural gas, and any ancillary services thereto; and that is required by the Federal Energy Regulatory Commission to take title to the natural gas, pursuant to Federal Energy Regulatory Commission Order No. 636-A, 57 Fed. Reg. 36128 (1992), in connection with the sale of such gas to its customers; (12) "Overnight rentals" means rental of a vacation lodging to one (1) or more individuals for temporary human lodging not to exceed a period of one hundred eighty (180) consecutive days; provided, however, that a tenancy or lease to an individual who has no other place of residence or abode during the lease period to which such individual may return after the lease terminates is not "overnight rentals"; (13) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number; (14) "Property management company" means a person who, for consideration, manages a vacation lodging for an individual property owner that provides such lodging for a rental fee to consumers; (15) "Resale" means a subsequent, bona fide sale of the property, services or taxable item by the purchaser. "Sale for resale" means the sale of the property, services, or taxable item intended for subsequent resale by the purchaser. Any sales for resale shall, however, be in strict compliance with rules and regulations promulgated by the commissioner. Sales of tangible personal property or taxable services made by a dealer to an out-of-state vendor who directs that the dealer act as the out-of-state vendor's agent to deliver or ship tangible personal property or taxable services to the out-of-state vendor's customer, who is a user or consumer, are sales for resale; (16) "Retail sale" or "sale at retail" means any sale other than a wholesale sale; (17) "Retailer" means any person primarily engaged in the business of making retail sales. For purposes of this subdivision (a)(17), "primarily" means that at least fifty percent (50%) of the taxable gross sales of the business are retail sales; (18) (A) (i) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property; (ii) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price is deemed a sale; (iii) "Sale" includes the furnishing of any of the things or services taxable under this part; (B) "Sale" does not include the transfer of tangible personal property from a wholesaler to another wholesaler or from a retailer to another retailer where the amount paid by the transferee to the transferor does not exceed the transferor's cost including freight in and storage costs, and transportation costs incurred in the transfer from the transferor to the transferee; (19) "Sales price" means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether such additional consideration shall be known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it shall be known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract. "Sales price" for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service. "Sales price" does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of such payment is retained as profit by the auctioneer, and when such payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller; (20) (A) "Seller" means every consignee, bailee, factor or auctioneer having either actual or constructive possession of tangible personal property, or having possession of the documents of title to tangible personal property, with power to sell such tangible personal property in the consignee's, bailee's, factor's or auctioneer's own name and actually so selling, is deemed the seller of such tangible personal property within the meaning of this part; and further, the consignor, bailor, principal or owner is deemed the seller of such tangible personal property to the consignee, bailee, factor or auctioneer; (B) The burden shall be upon the taxpayer in every case to establish the fact that the taxpayer is not engaged in the business of selling tangible personal property, but is acting merely as broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer's accounting records are kept in such manner as the commissioner shall by regulation provide; (21) "Services" means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever. "Services" does not include sales of tangible personal property; (22) (A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part. Such connection includes, but is not limited to, any of the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or (iv) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer; (B) Notwithstanding subdivision (a)(22)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state." For these purposes, whether a company has income effectively connected with a United States trade or business shall be determined in accordance with the Internal Revenue Code; (23) "Tangible personal property" means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. "Tangible personal property" does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; (24) "Transient vendor" means any person who brings into temporary premises and exhibits stocks of merchandise to the public for the purpose of selling or offering to sell the merchandise to the public. "Transient vendor" does not include any person selling goods by sample, brochure or sales catalog for future delivery; or to sales resulting from the prior invitation to the seller by the owner or occupant of a residence. For purposes of this definition, "merchandise" means any consumer item that is or is represented to be new or not previously owned by a consumer, and "temporary premises" means any public or quasi-public place, including a hotel, rooming house, storeroom, building or part of a building, tent, vacant lot, railroad car or motor vehicle that is temporarily occupied for the purpose of exhibiting stocks of merchandise to the public. Premises are not temporary if the same person has conducted business at those premises for more than six (6) consecutive months or has occupied the premises as the person's permanent residence for more than six (6) consecutive months; (25) "Vacation lodging" means real property, other than the primary and regular residence or abode of an individual property owner, that is utilized, or can be utilized, for overnight rentals in the absence of the individual property owner; (26) (A) "Wholesale sale" or "sale at wholesale" means any sale to a retailer for resale; (B) "Wholesale sale" or "sale at wholesale" includes the sale of industrial materials for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials become a component part of the finished product. This subdivision (a)(26)(B) shall not apply to raw or unprocessed agricultural products; (C) "Wholesale sale" or "sale at wholesale" includes the sale by a wholesaler of tangible personal property to the state of Tennessee or any county or municipality or subdivision thereof, or the sale to any religious, educational or charitable institution as defined in § 67-6-322 ; and (D) "Wholesale sale" or "sale at wholesale" includes the sale by a franchised motor vehicle dealer to a manufacturer or distributor of motor vehicles or an obligor under an extended service contract of parts or repair services, or both, necessary for repairs performed by the dealer under the manufacturer's, distributor's or obligor's warranty, and also includes predelivery inspection charges paid to a franchised motor vehicle dealer by a manufacturer or distributor of the motor vehicle; and (27) "Wholesaler" means any person primarily engaged in the business of making wholesale sales. For purposes of this subdivision (a)(26), "primarily" means that more than fifty percent (50%) of the taxable gross sales of the business are wholesale sales.
(1) "Affiliated business entity" means a business entity: (A) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (B) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (C) In which a person described in subdivision (a)(1)(B) directly or indirectly has more than fifty percent (50%) ownership interest. For purposes of this subdivision (a)(1)(C), a noncorporate entity is more than fifty-percent owned if upon liquidation more than fifty percent (50%) of the assets of the noncorporate entity directly or indirectly accrue to the entity having the ownership interest;
(A) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest;
(B) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or
(C) In which a person described in subdivision (a)(1)(B) directly or indirectly has more than fifty percent (50%) ownership interest. For purposes of this subdivision (a)(1)(C), a noncorporate entity is more than fifty-percent owned if upon liquidation more than fifty percent (50%) of the assets of the noncorporate entity directly or indirectly accrue to the entity having the ownership interest;
(2) "Business" includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. "Business" does not include occasional and isolated sales or transactions by a person not routinely engaged in business. "Business" does not include an individual property owner who utilizes a property management company to manage a vacation lodging for overnight rentals; provided, however, that "business" shall include any other activity of such individual property owner that is subject to any tax levied by this part;
(3) "Commissioner" means the commissioner of revenue or the commissioner's duly authorized assistants, except as otherwise provided in this part;
(4) "Department" means the department of revenue, except as otherwise provided in this part;
(5) "Dominant business activity" means the business activity that is the major and principal source of taxable gross sales of the business;
(6) "Fabricating or processing tangible personal property for resale" includes only tangible personal property that is fabricated or processed for ultimate use or consumption off the premises of the one engaging in such fabricating or processing;
(7) "Gross sales" means the sum total of all sales under this part as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this part;
(8) "Individual property owner" means a person who owns a vacation lodging;
(9) "Inventories of merchandise held for sale or exchange" includes tangible personal property held by a merchant or business for lease or rental, but does not include such property in the possession of a lessee;
(10) "Lease or rental" means the leasing or renting of tangible personal property and the possession or use of the property by the lessee or renter for a consideration, without transfer of the title of such property;
(11) "Natural gas marketer" means any business that is not regulated as to rates and services by the Tennessee public utility commission; that provides natural gas to customers located within this state through the procurement and shipping or transportation of such natural gas, and any ancillary services thereto; and that is required by the Federal Energy Regulatory Commission to take title to the natural gas, pursuant to Federal Energy Regulatory Commission Order No. 636-A, 57 Fed. Reg. 36128 (1992), in connection with the sale of such gas to its customers;
(12) "Overnight rentals" means rental of a vacation lodging to one (1) or more individuals for temporary human lodging not to exceed a period of one hundred eighty (180) consecutive days; provided, however, that a tenancy or lease to an individual who has no other place of residence or abode during the lease period to which such individual may return after the lease terminates is not "overnight rentals";
(13) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number;
(14) "Property management company" means a person who, for consideration, manages a vacation lodging for an individual property owner that provides such lodging for a rental fee to consumers;
(15) "Resale" means a subsequent, bona fide sale of the property, services or taxable item by the purchaser. "Sale for resale" means the sale of the property, services, or taxable item intended for subsequent resale by the purchaser. Any sales for resale shall, however, be in strict compliance with rules and regulations promulgated by the commissioner. Sales of tangible personal property or taxable services made by a dealer to an out-of-state vendor who directs that the dealer act as the out-of-state vendor's agent to deliver or ship tangible personal property or taxable services to the out-of-state vendor's customer, who is a user or consumer, are sales for resale;
(16) "Retail sale" or "sale at retail" means any sale other than a wholesale sale;
(17) "Retailer" means any person primarily engaged in the business of making retail sales. For purposes of this subdivision (a)(17), "primarily" means that at least fifty percent (50%) of the taxable gross sales of the business are retail sales;
(18) (A) (i) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property; (ii) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price is deemed a sale; (iii) "Sale" includes the furnishing of any of the things or services taxable under this part; (B) "Sale" does not include the transfer of tangible personal property from a wholesaler to another wholesaler or from a retailer to another retailer where the amount paid by the transferee to the transferor does not exceed the transferor's cost including freight in and storage costs, and transportation costs incurred in the transfer from the transferor to the transferee;
(A) (i) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property; (ii) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price is deemed a sale; (iii) "Sale" includes the furnishing of any of the things or services taxable under this part;
(i) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property;
(ii) A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price is deemed a sale;
(iii) "Sale" includes the furnishing of any of the things or services taxable under this part;
(B) "Sale" does not include the transfer of tangible personal property from a wholesaler to another wholesaler or from a retailer to another retailer where the amount paid by the transferee to the transferor does not exceed the transferor's cost including freight in and storage costs, and transportation costs incurred in the transfer from the transferor to the transferee;
(19) "Sales price" means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether such additional consideration shall be known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it shall be known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract. "Sales price" for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service. "Sales price" does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of such payment is retained as profit by the auctioneer, and when such payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller;
(20) (A) "Seller" means every consignee, bailee, factor or auctioneer having either actual or constructive possession of tangible personal property, or having possession of the documents of title to tangible personal property, with power to sell such tangible personal property in the consignee's, bailee's, factor's or auctioneer's own name and actually so selling, is deemed the seller of such tangible personal property within the meaning of this part; and further, the consignor, bailor, principal or owner is deemed the seller of such tangible personal property to the consignee, bailee, factor or auctioneer; (B) The burden shall be upon the taxpayer in every case to establish the fact that the taxpayer is not engaged in the business of selling tangible personal property, but is acting merely as broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer's accounting records are kept in such manner as the commissioner shall by regulation provide;
(A) "Seller" means every consignee, bailee, factor or auctioneer having either actual or constructive possession of tangible personal property, or having possession of the documents of title to tangible personal property, with power to sell such tangible personal property in the consignee's, bailee's, factor's or auctioneer's own name and actually so selling, is deemed the seller of such tangible personal property within the meaning of this part; and further, the consignor, bailor, principal or owner is deemed the seller of such tangible personal property to the consignee, bailee, factor or auctioneer;
(B) The burden shall be upon the taxpayer in every case to establish the fact that the taxpayer is not engaged in the business of selling tangible personal property, but is acting merely as broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer's accounting records are kept in such manner as the commissioner shall by regulation provide;
(21) "Services" means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever. "Services" does not include sales of tangible personal property;
(22) (A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part. Such connection includes, but is not limited to, any of the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or (iv) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer; (B) Notwithstanding subdivision (a)(22)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state." For these purposes, whether a company has income effectively connected with a United States trade or business shall be determined in accordance with the Internal Revenue Code;
(A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part. Such connection includes, but is not limited to, any of the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or (iv) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer;
(i) The taxpayer is organized or commercially domiciled in this state;
(ii) The taxpayer owns or uses its capital in this state;
(iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; or
(iv) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer;
(a) The taxpayer's total receipts in this state during the tax period, as determined consistent with § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period;
(b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or
(c) The total amount paid in this state during the tax period by the taxpayer for compensation, as determined consistent with § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer;
(B) Notwithstanding subdivision (a)(22)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state." For these purposes, whether a company has income effectively connected with a United States trade or business shall be determined in accordance with the Internal Revenue Code;
(23) "Tangible personal property" means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. "Tangible personal property" does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients;
(24) "Transient vendor" means any person who brings into temporary premises and exhibits stocks of merchandise to the public for the purpose of selling or offering to sell the merchandise to the public. "Transient vendor" does not include any person selling goods by sample, brochure or sales catalog for future delivery; or to sales resulting from the prior invitation to the seller by the owner or occupant of a residence. For purposes of this definition, "merchandise" means any consumer item that is or is represented to be new or not previously owned by a consumer, and "temporary premises" means any public or quasi-public place, including a hotel, rooming house, storeroom, building or part of a building, tent, vacant lot, railroad car or motor vehicle that is temporarily occupied for the purpose of exhibiting stocks of merchandise to the public. Premises are not temporary if the same person has conducted business at those premises for more than six (6) consecutive months or has occupied the premises as the person's permanent residence for more than six (6) consecutive months;
(25) "Vacation lodging" means real property, other than the primary and regular residence or abode of an individual property owner, that is utilized, or can be utilized, for overnight rentals in the absence of the individual property owner;
(26) (A) "Wholesale sale" or "sale at wholesale" means any sale to a retailer for resale; (B) "Wholesale sale" or "sale at wholesale" includes the sale of industrial materials for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials become a component part of the finished product. This subdivision (a)(26)(B) shall not apply to raw or unprocessed agricultural products; (C) "Wholesale sale" or "sale at wholesale" includes the sale by a wholesaler of tangible personal property to the state of Tennessee or any county or municipality or subdivision thereof, or the sale to any religious, educational or charitable institution as defined in § 67-6-322 ; and (D) "Wholesale sale" or "sale at wholesale" includes the sale by a franchised motor vehicle dealer to a manufacturer or distributor of motor vehicles or an obligor under an extended service contract of parts or repair services, or both, necessary for repairs performed by the dealer under the manufacturer's, distributor's or obligor's warranty, and also includes predelivery inspection charges paid to a franchised motor vehicle dealer by a manufacturer or distributor of the motor vehicle; and
(A) "Wholesale sale" or "sale at wholesale" means any sale to a retailer for resale;
(B) "Wholesale sale" or "sale at wholesale" includes the sale of industrial materials for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials become a component part of the finished product. This subdivision (a)(26)(B) shall not apply to raw or unprocessed agricultural products;
(C) "Wholesale sale" or "sale at wholesale" includes the sale by a wholesaler of tangible personal property to the state of Tennessee or any county or municipality or subdivision thereof, or the sale to any religious, educational or charitable institution as defined in § 67-6-322 ; and
(D) "Wholesale sale" or "sale at wholesale" includes the sale by a franchised motor vehicle dealer to a manufacturer or distributor of motor vehicles or an obligor under an extended service contract of parts or repair services, or both, necessary for repairs performed by the dealer under the manufacturer's, distributor's or obligor's warranty, and also includes predelivery inspection charges paid to a franchised motor vehicle dealer by a manufacturer or distributor of the motor vehicle; and
(27) "Wholesaler" means any person primarily engaged in the business of making wholesale sales. For purposes of this subdivision (a)(26), "primarily" means that more than fifty percent (50%) of the taxable gross sales of the business are wholesale sales.
(b) In any county where a metropolitan government prevails, the general services district constitutes the county and the urban services district, as well as any incorporated towns therein, constitutes the municipalities insofar as this part is concerned.
Amended by 2015 Tenn. Acts, ch. 514, s 3, eff. 1/1/2016.
Amended by 2014 Tenn. Acts, ch. 942,s 1, eff. 7/1/2014.
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.
Tenn. Code Ann. § 67-4-402 — TN Code / Title 67 / Chapter 4 / Section 67-4-402
[Contingent repeal date. See subdivision (b)
Status: in_force

(a) Definitions. As used in this section, unless the context otherwise requires: (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 (2) "Nonalcoholic beverages" means all beverages containing less than one-half of one percent (0.5%) alcohol by volume. (b) (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) 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) 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) 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) 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. (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. (d) (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) 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) 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. Amended by 2022 Tenn. Acts, ch. 903, s 2, eff. 7/1/2022. Amended by 2021 Tenn. Acts, ch. 158, Secs.s3, s4 eff. 7/1/2021. Amended by 2016 Tenn. Acts, ch. 704, s 4, eff. 6/1/2016. Amended by 2016 Tenn. Acts, ch. 704, s 3, eff. 6/1/2016. 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.
(a) Definitions. As used in this section, unless the context otherwise requires: (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 (2) "Nonalcoholic beverages" means all beverages containing less than one-half of one percent (0.5%) alcohol by volume.
(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
(2) "Nonalcoholic beverages" means all beverages containing less than one-half of one percent (0.5%) alcohol by volume.
(b) (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) 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) 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) 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) 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.
(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) 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) 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) 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) 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.
(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.
(d) (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) 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) 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.
(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) 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) 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.
Amended by 2022 Tenn. Acts, ch. 903, s 2, eff. 7/1/2022.
Amended by 2021 Tenn. Acts, ch. 158, Secs.s3, s4 eff. 7/1/2021.
Amended by 2016 Tenn. Acts, ch. 704, s 4, eff. 6/1/2016.
Amended by 2016 Tenn. Acts, ch. 704, s 3, eff. 6/1/2016.
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.
Tenn. Code Ann. § 67-6-105 — TN Code / Title 67 / Chapter 6 / Section 67-6-105
Event Tourism Act
Status: in_force

(a) This section shall be known and may be cited as the "Event Tourism Act." (b) As used in this section: (1) "Department" means the department of finance and administration; (2) "Endorsing local authority" means a county or municipality that contains a site suitable for hosting an event; (3) "Event": (A) Means an event: (i) Organized by a site selection organization or a sanctioning body; (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 (iii) That is a new or non-annual event not exceeding two (2) years; and (B) Includes any activities related to or associated with an event; (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) "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) "Event venue" means the facility or facilities where an event will take place; (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) "Fund" means the event tourism fund established by this section; (9) "Local organizing committee" means a nonprofit corporation that: (A) (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; (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 (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 (B) Is governed by a board of at least three (3) members, of whom: (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; (ii) One (1) or more is a local elected official; and (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) "Qualified expense": (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; (B) Includes the following, if approved by the department: (i) Reasonable labor and equipment costs directly related to the event beyond the scope of normal employment; (ii) Reasonable costs related to improvements or renovations to existing facilities in preparation for the event; and (iii) Reasonable costs related to acquisition or construction of new facilities for the event; and (C) Does not include usual and customary maintenance of a facility; and (11) "State building commission" means the state building commission created by § 4-15-101 . (c) (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) No payment shall be made from the event tourism fund unless authorized by the department. (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) A proposed event venue and event period; (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) Estimated attendance at the event; (4) Financial information related to the projected revenue and expenses of the event; (5) An estimate of the number of out-of-state visitors who will attend the event; (6) A marketing plan for the event; and (7) Any other relevant information as determined by the department. (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) The event is expected to have a measurable economic impact; (2) The event would not be held in this state without certification of the event; (3) An event venue and an event period have been approved; (4) The state building commission has defined the boundaries of the event venue for the purposes of the event; (5) The proposed expenses of the event are directly related to the event; and (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 . (f) (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) 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) 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. (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. (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. Acts 2018 , ch. 959, § 1. Acts 2018 , ch. 959, § 4 provides: the provisions contained in this act shall terminate on July 1,2023.
(a) This section shall be known and may be cited as the "Event Tourism Act."
(b) As used in this section: (1) "Department" means the department of finance and administration; (2) "Endorsing local authority" means a county or municipality that contains a site suitable for hosting an event; (3) "Event": (A) Means an event: (i) Organized by a site selection organization or a sanctioning body; (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 (iii) That is a new or non-annual event not exceeding two (2) years; and (B) Includes any activities related to or associated with an event; (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) "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) "Event venue" means the facility or facilities where an event will take place; (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) "Fund" means the event tourism fund established by this section; (9) "Local organizing committee" means a nonprofit corporation that: (A) (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; (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 (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 (B) Is governed by a board of at least three (3) members, of whom: (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; (ii) One (1) or more is a local elected official; and (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) "Qualified expense": (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; (B) Includes the following, if approved by the department: (i) Reasonable labor and equipment costs directly related to the event beyond the scope of normal employment; (ii) Reasonable costs related to improvements or renovations to existing facilities in preparation for the event; and (iii) Reasonable costs related to acquisition or construction of new facilities for the event; and (C) Does not include usual and customary maintenance of a facility; and (11) "State building commission" means the state building commission created by § 4-15-101 .
(1) "Department" means the department of finance and administration;
(2) "Endorsing local authority" means a county or municipality that contains a site suitable for hosting an event;
(3) "Event": (A) Means an event: (i) Organized by a site selection organization or a sanctioning body; (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 (iii) That is a new or non-annual event not exceeding two (2) years; and (B) Includes any activities related to or associated with an event;
(A) Means an event: (i) Organized by a site selection organization or a sanctioning body; (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 (iii) That is a new or non-annual event not exceeding two (2) years; and
(i) Organized by a site selection organization or a sanctioning body;
(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
(iii) That is a new or non-annual event not exceeding two (2) years; and
(B) Includes any activities related to or associated with an event;
(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) "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) "Event venue" means the facility or facilities where an event will take place;
(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) "Fund" means the event tourism fund established by this section;
(9) "Local organizing committee" means a nonprofit corporation that: (A) (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; (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 (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 (B) Is governed by a board of at least three (3) members, of whom: (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; (ii) One (1) or more is a local elected official; and (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;
(A) (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; (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 (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
(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;
(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
(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
(B) Is governed by a board of at least three (3) members, of whom: (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; (ii) One (1) or more is a local elected official; and (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;
(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;
(ii) One (1) or more is a local elected official; and
(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) "Qualified expense": (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; (B) Includes the following, if approved by the department: (i) Reasonable labor and equipment costs directly related to the event beyond the scope of normal employment; (ii) Reasonable costs related to improvements or renovations to existing facilities in preparation for the event; and (iii) Reasonable costs related to acquisition or construction of new facilities for the event; and (C) Does not include usual and customary maintenance of a facility; and
(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;
(B) Includes the following, if approved by the department: (i) Reasonable labor and equipment costs directly related to the event beyond the scope of normal employment; (ii) Reasonable costs related to improvements or renovations to existing facilities in preparation for the event; and (iii) Reasonable costs related to acquisition or construction of new facilities for the event; and
(i) Reasonable labor and equipment costs directly related to the event beyond the scope of normal employment;
(ii) Reasonable costs related to improvements or renovations to existing facilities in preparation for the event; and
(iii) Reasonable costs related to acquisition or construction of new facilities for the event; and
(C) Does not include usual and customary maintenance of a facility; and
(11) "State building commission" means the state building commission created by § 4-15-101 .
(c) (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) No payment shall be made from the event tourism fund unless authorized by the department.
(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) No payment shall be made from the event tourism fund unless authorized by the department.
(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) A proposed event venue and event period; (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) Estimated attendance at the event; (4) Financial information related to the projected revenue and expenses of the event; (5) An estimate of the number of out-of-state visitors who will attend the event; (6) A marketing plan for the event; and (7) Any other relevant information as determined by the department.
(1) A proposed event venue and event period;
(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) Estimated attendance at the event;
(4) Financial information related to the projected revenue and expenses of the event;
(5) An estimate of the number of out-of-state visitors who will attend the event;
(6) A marketing plan for the event; and
(7) Any other relevant information as determined by the department.
(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) The event is expected to have a measurable economic impact; (2) The event would not be held in this state without certification of the event; (3) An event venue and an event period have been approved; (4) The state building commission has defined the boundaries of the event venue for the purposes of the event; (5) The proposed expenses of the event are directly related to the event; and (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 .
(1) The event is expected to have a measurable economic impact;
(2) The event would not be held in this state without certification of the event;
(3) An event venue and an event period have been approved;
(4) The state building commission has defined the boundaries of the event venue for the purposes of the event;
(5) The proposed expenses of the event are directly related to the event; and
(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 .
(f) (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) 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) 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.
(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) 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) 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.
(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.
(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.
Acts 2018 , ch. 959, § 1.
Acts 2018 , ch. 959, § 4 provides: the provisions contained in this act shall terminate on July 1,2023.