Tenn. Code Ann. § 67-1-1801 — TN Code / Title 67 / Chapter 1 / Section 67-1-1801
Enumeration of remedies
Status: in_force

(a) (1) In all cases in which any officer, charged by law with the authority to assess taxes that are collected or administered by the commissioner of revenue, shall finally assess a tax alleged or claimed to be due, if the taxpayer against whom the final assessment is made believes the final assessment to be unjust, illegal or incorrect, the taxpayer's remedies shall be as follows: (A) The taxpayer may pay the tax and file a claim for refund of the tax and proceed as provided in this part; or (B) The taxpayer may file suit against the commissioner in chancery court in the appropriate county in this state, challenging all or any portion of the final assessment of such tax, including any interest and penalty associated with the tax. Until the earlier of the expiration of ninety (90) days after an assessment becomes final, or the filing of a suit by the taxpayer as provided in subsection (b), no levy as defined in § 67-1-1404 shall be made, begun or prosecuted by the commissioner. The commissioner may, however, initiate and pursue any other action to collect an assessed deficiency under part 14 of this chapter or otherwise, including, but not limited to, the filing of a notice of lien as provided in § 67-1-1403 and the collection of a jeopardy assessment. (2) Subdivision (a)(1)(B) shall not apply to those cases where the final assessment is based on: (A) Bad checks; (B) Debit memos based on mathematical errors caused by the taxpayer's own figures; and (C) Delinquent partial payment agreements. (b) A suit challenging the final assessment of a tax or seeking a stay of collection of an inheritance or gift tax deficiency pending a final determination of a timely proceeding for review of an appraisal filed by the taxpayer before the appropriate board must be: (1) Filed within ninety (90) days from the date the assessment becomes final, with a copy of the notice of proposed assessment issued pursuant to § 67-1-1438 attached to the notice as an exhibit; and (2) Signed by the taxpayer under the penalties of perjury, affirming that the taxpayer or affiant believes that the final assessment, or the portion of the final assessment being challenged, is unjust, illegal or incorrect and that the suit is brought in good faith and not solely for the purpose of delay. (c) (1) A suit filed by a taxpayer under subsection (b) shall operate to continue the stay of collection of the tax, or portion of the tax challenged, as provided in subdivision (a)(1)(B), except as otherwise provided in subsection (d), until dismissal or final determination of the tax, if the taxpayer also files with the taxpayer's suit one (1) of the following: (A) A corporate surety bond or an irrevocable letter of credit, in the form prescribed by regulations issued by the commissioner, issued by a qualified surety company or bank, in a principal amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit; (B) A pledge or collateral assignment of assets in an amount and form satisfactory to the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment; or (C) (i) An affidavit executed by or on behalf of the taxpayer, which lists and describes with particularity: (a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and (b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and (ii) A certified copy of each notice of lien, in the form prescribed by regulations issued by the commissioner, required to be filed herein. A notice of lien in favor of the commissioner on all of the taxpayer's real property, wherever situated, shall be filed in the office of the secretary of state and in the office of the register of deeds in the county of the taxpayer's domicile or principal place of business in this state. A notice of lien in favor of the commissioner shall also be filed in other states, in the county in which the taxpayer's real estate is situated. (2) For purposes of this subsection (c): (A) In the case of a corporate taxpayer, no distribution to a shareholder of the corporation by way of a dividend, redemption, liquidation or partial liquidation, nor principal repayment of a debt by the corporate taxpayer to the shareholder shall be deemed as having been made for full and adequate consideration; (B) A corporate surety company shall be qualified to issue a surety bond, if it is authorized by the commissioner of commerce and insurance to engage in the surety insurance business in this state, and a bank shall be qualified to issue its irrevocable letter of credit if it has been designated by the state treasurer as an authorized depository bank for the deposit of state funds, unless it has been determined by the commissioner to be not qualified for this purpose, based on reasonable standards uniformly applied; (C) An asset of a taxpayer may include property assigned to the taxpayer for the limited purpose of having such asset pledged, collaterally assigned, or subjected to the lien in favor of the commissioner; (D) A notice of lien filed as provided in subsection (b) constitutes a lien against taxpayer's property, including after-acquired property and replacement property, to the extent of the amount of the final assessment or portion of the final assessment challenged by the taxpayer's suit, including all penalties and interest associated with the final assessment or imposed by the court, and shall have priority over all subsequent liens filed and perfected against the taxpayer's property, and may be collected and enforced by the commissioner in the same manner as a judicial lien or judgment, or in accordance with part 14 of this chapter; and (E) A notice of lien, whether filed by the commissioner under § 67-1-1403 or filed by the taxpayer under this subsection (c), against any inventory, stock in trade, or trade receivables of the taxpayer shall not operate to or be construed so as to preclude the sale of such inventory or stock in trade by the taxpayer to customers in the ordinary course of the taxpayer's trade or business, nor to prevent the taxpayer from using the proceeds from the sale of inventory or stock in trade to customers in the ordinary course of the taxpayer's trade or business, and the proceeds from collection of trade receivables for the ordinary and necessary conduct and continuation of the taxpayer's trade or business. (d) If the taxpayer has filed a qualified corporate surety bond or bank irrevocable letter of credit in the amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit, or has entered into a pledge or collateral assignment of assets in an amount and form satisfactory with the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment, or has filed certified copies of notices of liens on all of the taxpayer's property, or on unencumbered property of the taxpayer located in this state equal in value to at least one hundred fifty percent (150%) of the amount of the final assessment, or the portion of the final assessment challenged by the suit, proceedings or actions for the collection of the assessed tax or challenged portion of the assessed tax, including an action to enforce the lien in favor of the commissioner under part 14 of this chapter, shall be stayed pending final determination of the suit; provided, that, unless the taxpayer has filed a qualified corporate surety bond or bank irrevocable letter of credit in the amount provided in this subsection (d), the commissioner shall not be prohibited or stayed from taking action to enforce or collect a jeopardy assessment as provided in §§ 67-1-1406 and 67-1-1431 . In the event the suit is withdrawn or dismissed, or final judgment on the suit is rendered in favor of the commissioner as to all or any portion of the challenged assessment, the commissioner shall be entitled to collect the amount of the final assessment, interest accrued on the final assessment, and any penalty assessed against the taxpayer, by enforcement of the bond, the letter of credit, the pledge or collateral assignment of assets, or the lien. (e) In the event the commissioner commences a jeopardy proceeding under §§ 67-1-1406 and 67-1-1431 , a taxpayer who has filed suit under this section and who has filed a pledge or collateral assignment of assets in an amount and form acceptable and consented to by the commissioner, or has filed notices of lien on all of such taxpayer's property or on unencumbered property of the taxpayer located in this state, equal in value to at least one hundred fifty percent (150%) of the assessment or portion of the assessment challenged by the suit, shall have the right to seek a stay by the court of such jeopardy proceeding. The court shall not have jurisdiction to issue an ex parte stay or temporary restraining order. A stay or temporary order restraining such jeopardy proceeding may be issued by the court only after a hearing held upon not less than fifteen (15) nor more than thirty (30) days prior notice to the commissioner. At a hearing for stay or temporary order restraining jeopardy proceedings, the commissioner's basis for such proceeding shall be presumed to be correct, and the burden of proof shall be on the taxpayer to establish by clear and convincing evidence that the commissioner does not have a reasonable basis in fact for finding that collection of the tax is in jeopardy. (f) If the taxpayer files an amendment to the taxpayer's complaint challenging the final assessment of additional taxes, for purposes of staying action for collection under subsection (d), such amended complaint shall be treated as an original complaint, and no stay of collection shall apply, unless or until an additional qualified corporate surety bond, bank letter of credit, pledge or collateral assignment of assets consented to by the commissioner is filed, or notices of lien are filed on all taxpayer's property or on additional property of the taxpayer located in the United States, to the extent required to equal or exceed one hundred fifty percent (150%) of the amount of additional assessment challenged. The filing of an amendment to a complaint in a pending suit challenging the final assessment of additional taxes shall be deemed to be the filing of a suit as provided in subsection (b). (g) The commissioner may at any time file a motion with the court challenging the qualification, sufficiency, or validity and accuracy of any bond, letter of credit, affidavit, or notice of lien filed by a taxpayer. Such motion may also seek to increase the amount of any bond, letter of credit, pledge or collateral assignment of assets, or notice of lien, which shall be granted, if it reasonably appears to the court that the amount is not sufficient to protect the state adequately. The commissioner shall be entitled to discover any and all matters, not privileged, pursuant to the Rules of Civil Procedure. If a bond, letter of credit, or notice of lien is determined, after hearing, to be disqualified or insufficient to stay a levy or action to collect the final assessment, or portion of the final assessment challenged, such stay shall be lifted, unless made qualified or sufficient within the time, not to exceed ten (10) days, prescribed by the court. If the court, after hearing, determines that an affidavit filed by the taxpayer contains material omissions, misrepresentations, overvaluation of assets or understatement of liabilities, the court shall dismiss the taxpayer's suit with prejudice, unless the court also finds, from the preponderance of the evidence, that such omission, misrepresentation, overvaluation or understatement was not intentional and was not made for the purpose of misleading the commissioner or the court, or of concealing or disguising assets, transfer of assets, or the value of those assets. (h) The commissioner shall be entitled, upon motion with notice to the transferee or assignee of a taxpayer's assets, to have the court set aside and order restored to the taxpayer for the benefit of the commissioner all transfers and assignments of the taxpayer's assets occurring subsequent to or within one (1) year preceding the filing of suit by the taxpayer challenging an assessment by the commissioner, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of the taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth. The commissioner shall be entitled to discover any and all matters, not privileged, pursuant to the Rules of Civil Procedure. The court may order the restored assets sold and liquidated under the procedures established in part 14 of this chapter, and shall apply the net proceeds of the sale to the payment of all amounts assessed by the commissioner against the taxpayer, and shall return the balance of the proceeds, pro rata, to the person or persons from whom the assignment or transfer of such assets was set aside. (i) To the extent of any amounts collected by or paid to the commissioner with respect to an assessment, or any portion of the assessment, challenged by suit by the taxpayer, whether such collection was pursuant to a jeopardy proceeding, by application of assets restored to the taxpayer pursuant to subsection (h), or otherwise, the suit shall proceed as a timely suit for refund of taxes paid, as if a timely claim for refund had been filed by the taxpayer and denied by the commissioner. (j) Any notice of a proposed or final assessment issued by the department shall include notice that the taxpayer has the right to file suit in the appropriate chancery court of this state in accordance with this section to challenge the final assessment and collection of the tax within ninety (90) days from the date such assessment becomes final. Amended by 2014 Tenn. Acts, ch. 854, s 9, eff. 1/1/2015. Acts 1986, ch. 749, § 5; 1987, ch. 91, § 1; 1998, ch. 637, § 1; 1998, ch. 641, § 5.
(a) (1) In all cases in which any officer, charged by law with the authority to assess taxes that are collected or administered by the commissioner of revenue, shall finally assess a tax alleged or claimed to be due, if the taxpayer against whom the final assessment is made believes the final assessment to be unjust, illegal or incorrect, the taxpayer's remedies shall be as follows: (A) The taxpayer may pay the tax and file a claim for refund of the tax and proceed as provided in this part; or (B) The taxpayer may file suit against the commissioner in chancery court in the appropriate county in this state, challenging all or any portion of the final assessment of such tax, including any interest and penalty associated with the tax. Until the earlier of the expiration of ninety (90) days after an assessment becomes final, or the filing of a suit by the taxpayer as provided in subsection (b), no levy as defined in § 67-1-1404 shall be made, begun or prosecuted by the commissioner. The commissioner may, however, initiate and pursue any other action to collect an assessed deficiency under part 14 of this chapter or otherwise, including, but not limited to, the filing of a notice of lien as provided in § 67-1-1403 and the collection of a jeopardy assessment. (2) Subdivision (a)(1)(B) shall not apply to those cases where the final assessment is based on: (A) Bad checks; (B) Debit memos based on mathematical errors caused by the taxpayer's own figures; and (C) Delinquent partial payment agreements.
(1) In all cases in which any officer, charged by law with the authority to assess taxes that are collected or administered by the commissioner of revenue, shall finally assess a tax alleged or claimed to be due, if the taxpayer against whom the final assessment is made believes the final assessment to be unjust, illegal or incorrect, the taxpayer's remedies shall be as follows: (A) The taxpayer may pay the tax and file a claim for refund of the tax and proceed as provided in this part; or (B) The taxpayer may file suit against the commissioner in chancery court in the appropriate county in this state, challenging all or any portion of the final assessment of such tax, including any interest and penalty associated with the tax. Until the earlier of the expiration of ninety (90) days after an assessment becomes final, or the filing of a suit by the taxpayer as provided in subsection (b), no levy as defined in § 67-1-1404 shall be made, begun or prosecuted by the commissioner. The commissioner may, however, initiate and pursue any other action to collect an assessed deficiency under part 14 of this chapter or otherwise, including, but not limited to, the filing of a notice of lien as provided in § 67-1-1403 and the collection of a jeopardy assessment.
(A) The taxpayer may pay the tax and file a claim for refund of the tax and proceed as provided in this part; or
(B) The taxpayer may file suit against the commissioner in chancery court in the appropriate county in this state, challenging all or any portion of the final assessment of such tax, including any interest and penalty associated with the tax. Until the earlier of the expiration of ninety (90) days after an assessment becomes final, or the filing of a suit by the taxpayer as provided in subsection (b), no levy as defined in § 67-1-1404 shall be made, begun or prosecuted by the commissioner. The commissioner may, however, initiate and pursue any other action to collect an assessed deficiency under part 14 of this chapter or otherwise, including, but not limited to, the filing of a notice of lien as provided in § 67-1-1403 and the collection of a jeopardy assessment.
(2) Subdivision (a)(1)(B) shall not apply to those cases where the final assessment is based on: (A) Bad checks; (B) Debit memos based on mathematical errors caused by the taxpayer's own figures; and (C) Delinquent partial payment agreements.
(A) Bad checks;
(B) Debit memos based on mathematical errors caused by the taxpayer's own figures; and
(C) Delinquent partial payment agreements.
(b) A suit challenging the final assessment of a tax or seeking a stay of collection of an inheritance or gift tax deficiency pending a final determination of a timely proceeding for review of an appraisal filed by the taxpayer before the appropriate board must be: (1) Filed within ninety (90) days from the date the assessment becomes final, with a copy of the notice of proposed assessment issued pursuant to § 67-1-1438 attached to the notice as an exhibit; and (2) Signed by the taxpayer under the penalties of perjury, affirming that the taxpayer or affiant believes that the final assessment, or the portion of the final assessment being challenged, is unjust, illegal or incorrect and that the suit is brought in good faith and not solely for the purpose of delay.
(1) Filed within ninety (90) days from the date the assessment becomes final, with a copy of the notice of proposed assessment issued pursuant to § 67-1-1438 attached to the notice as an exhibit; and
(2) Signed by the taxpayer under the penalties of perjury, affirming that the taxpayer or affiant believes that the final assessment, or the portion of the final assessment being challenged, is unjust, illegal or incorrect and that the suit is brought in good faith and not solely for the purpose of delay.
(c) (1) A suit filed by a taxpayer under subsection (b) shall operate to continue the stay of collection of the tax, or portion of the tax challenged, as provided in subdivision (a)(1)(B), except as otherwise provided in subsection (d), until dismissal or final determination of the tax, if the taxpayer also files with the taxpayer's suit one (1) of the following: (A) A corporate surety bond or an irrevocable letter of credit, in the form prescribed by regulations issued by the commissioner, issued by a qualified surety company or bank, in a principal amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit; (B) A pledge or collateral assignment of assets in an amount and form satisfactory to the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment; or (C) (i) An affidavit executed by or on behalf of the taxpayer, which lists and describes with particularity: (a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and (b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and (ii) A certified copy of each notice of lien, in the form prescribed by regulations issued by the commissioner, required to be filed herein. A notice of lien in favor of the commissioner on all of the taxpayer's real property, wherever situated, shall be filed in the office of the secretary of state and in the office of the register of deeds in the county of the taxpayer's domicile or principal place of business in this state. A notice of lien in favor of the commissioner shall also be filed in other states, in the county in which the taxpayer's real estate is situated. (2) For purposes of this subsection (c): (A) In the case of a corporate taxpayer, no distribution to a shareholder of the corporation by way of a dividend, redemption, liquidation or partial liquidation, nor principal repayment of a debt by the corporate taxpayer to the shareholder shall be deemed as having been made for full and adequate consideration; (B) A corporate surety company shall be qualified to issue a surety bond, if it is authorized by the commissioner of commerce and insurance to engage in the surety insurance business in this state, and a bank shall be qualified to issue its irrevocable letter of credit if it has been designated by the state treasurer as an authorized depository bank for the deposit of state funds, unless it has been determined by the commissioner to be not qualified for this purpose, based on reasonable standards uniformly applied; (C) An asset of a taxpayer may include property assigned to the taxpayer for the limited purpose of having such asset pledged, collaterally assigned, or subjected to the lien in favor of the commissioner; (D) A notice of lien filed as provided in subsection (b) constitutes a lien against taxpayer's property, including after-acquired property and replacement property, to the extent of the amount of the final assessment or portion of the final assessment challenged by the taxpayer's suit, including all penalties and interest associated with the final assessment or imposed by the court, and shall have priority over all subsequent liens filed and perfected against the taxpayer's property, and may be collected and enforced by the commissioner in the same manner as a judicial lien or judgment, or in accordance with part 14 of this chapter; and (E) A notice of lien, whether filed by the commissioner under § 67-1-1403 or filed by the taxpayer under this subsection (c), against any inventory, stock in trade, or trade receivables of the taxpayer shall not operate to or be construed so as to preclude the sale of such inventory or stock in trade by the taxpayer to customers in the ordinary course of the taxpayer's trade or business, nor to prevent the taxpayer from using the proceeds from the sale of inventory or stock in trade to customers in the ordinary course of the taxpayer's trade or business, and the proceeds from collection of trade receivables for the ordinary and necessary conduct and continuation of the taxpayer's trade or business.
(1) A suit filed by a taxpayer under subsection (b) shall operate to continue the stay of collection of the tax, or portion of the tax challenged, as provided in subdivision (a)(1)(B), except as otherwise provided in subsection (d), until dismissal or final determination of the tax, if the taxpayer also files with the taxpayer's suit one (1) of the following: (A) A corporate surety bond or an irrevocable letter of credit, in the form prescribed by regulations issued by the commissioner, issued by a qualified surety company or bank, in a principal amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit; (B) A pledge or collateral assignment of assets in an amount and form satisfactory to the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment; or (C) (i) An affidavit executed by or on behalf of the taxpayer, which lists and describes with particularity: (a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and (b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and (ii) A certified copy of each notice of lien, in the form prescribed by regulations issued by the commissioner, required to be filed herein. A notice of lien in favor of the commissioner on all of the taxpayer's real property, wherever situated, shall be filed in the office of the secretary of state and in the office of the register of deeds in the county of the taxpayer's domicile or principal place of business in this state. A notice of lien in favor of the commissioner shall also be filed in other states, in the county in which the taxpayer's real estate is situated.
(A) A corporate surety bond or an irrevocable letter of credit, in the form prescribed by regulations issued by the commissioner, issued by a qualified surety company or bank, in a principal amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit;
(B) A pledge or collateral assignment of assets in an amount and form satisfactory to the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment; or
(C) (i) An affidavit executed by or on behalf of the taxpayer, which lists and describes with particularity: (a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and (b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and (ii) A certified copy of each notice of lien, in the form prescribed by regulations issued by the commissioner, required to be filed herein. A notice of lien in favor of the commissioner on all of the taxpayer's real property, wherever situated, shall be filed in the office of the secretary of state and in the office of the register of deeds in the county of the taxpayer's domicile or principal place of business in this state. A notice of lien in favor of the commissioner shall also be filed in other states, in the county in which the taxpayer's real estate is situated.
(i) An affidavit executed by or on behalf of the taxpayer, which lists and describes with particularity: (a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and (b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and
(a) All of the taxpayer's assets, the respective fair market values and present location of those assets, all of the liabilities and the amount of the liabilities, and the person's or persons' address to whom such liability is owing, that are an encumbrance or lien against such assets; and
(b) All transfers and assignments of the taxpayer's assets, whether such transfer was by gift, as collateral security, or otherwise, within the one-year period preceding the date of the final assessment, together with a description of the asset, its value, and the name and address of the transferee or assignee of the asset, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of a taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth; and
(ii) A certified copy of each notice of lien, in the form prescribed by regulations issued by the commissioner, required to be filed herein. A notice of lien in favor of the commissioner on all of the taxpayer's real property, wherever situated, shall be filed in the office of the secretary of state and in the office of the register of deeds in the county of the taxpayer's domicile or principal place of business in this state. A notice of lien in favor of the commissioner shall also be filed in other states, in the county in which the taxpayer's real estate is situated.
(2) For purposes of this subsection (c): (A) In the case of a corporate taxpayer, no distribution to a shareholder of the corporation by way of a dividend, redemption, liquidation or partial liquidation, nor principal repayment of a debt by the corporate taxpayer to the shareholder shall be deemed as having been made for full and adequate consideration; (B) A corporate surety company shall be qualified to issue a surety bond, if it is authorized by the commissioner of commerce and insurance to engage in the surety insurance business in this state, and a bank shall be qualified to issue its irrevocable letter of credit if it has been designated by the state treasurer as an authorized depository bank for the deposit of state funds, unless it has been determined by the commissioner to be not qualified for this purpose, based on reasonable standards uniformly applied; (C) An asset of a taxpayer may include property assigned to the taxpayer for the limited purpose of having such asset pledged, collaterally assigned, or subjected to the lien in favor of the commissioner; (D) A notice of lien filed as provided in subsection (b) constitutes a lien against taxpayer's property, including after-acquired property and replacement property, to the extent of the amount of the final assessment or portion of the final assessment challenged by the taxpayer's suit, including all penalties and interest associated with the final assessment or imposed by the court, and shall have priority over all subsequent liens filed and perfected against the taxpayer's property, and may be collected and enforced by the commissioner in the same manner as a judicial lien or judgment, or in accordance with part 14 of this chapter; and (E) A notice of lien, whether filed by the commissioner under § 67-1-1403 or filed by the taxpayer under this subsection (c), against any inventory, stock in trade, or trade receivables of the taxpayer shall not operate to or be construed so as to preclude the sale of such inventory or stock in trade by the taxpayer to customers in the ordinary course of the taxpayer's trade or business, nor to prevent the taxpayer from using the proceeds from the sale of inventory or stock in trade to customers in the ordinary course of the taxpayer's trade or business, and the proceeds from collection of trade receivables for the ordinary and necessary conduct and continuation of the taxpayer's trade or business.
(A) In the case of a corporate taxpayer, no distribution to a shareholder of the corporation by way of a dividend, redemption, liquidation or partial liquidation, nor principal repayment of a debt by the corporate taxpayer to the shareholder shall be deemed as having been made for full and adequate consideration;
(B) A corporate surety company shall be qualified to issue a surety bond, if it is authorized by the commissioner of commerce and insurance to engage in the surety insurance business in this state, and a bank shall be qualified to issue its irrevocable letter of credit if it has been designated by the state treasurer as an authorized depository bank for the deposit of state funds, unless it has been determined by the commissioner to be not qualified for this purpose, based on reasonable standards uniformly applied;
(C) An asset of a taxpayer may include property assigned to the taxpayer for the limited purpose of having such asset pledged, collaterally assigned, or subjected to the lien in favor of the commissioner;
(D) A notice of lien filed as provided in subsection (b) constitutes a lien against taxpayer's property, including after-acquired property and replacement property, to the extent of the amount of the final assessment or portion of the final assessment challenged by the taxpayer's suit, including all penalties and interest associated with the final assessment or imposed by the court, and shall have priority over all subsequent liens filed and perfected against the taxpayer's property, and may be collected and enforced by the commissioner in the same manner as a judicial lien or judgment, or in accordance with part 14 of this chapter; and
(E) A notice of lien, whether filed by the commissioner under § 67-1-1403 or filed by the taxpayer under this subsection (c), against any inventory, stock in trade, or trade receivables of the taxpayer shall not operate to or be construed so as to preclude the sale of such inventory or stock in trade by the taxpayer to customers in the ordinary course of the taxpayer's trade or business, nor to prevent the taxpayer from using the proceeds from the sale of inventory or stock in trade to customers in the ordinary course of the taxpayer's trade or business, and the proceeds from collection of trade receivables for the ordinary and necessary conduct and continuation of the taxpayer's trade or business.
(d) If the taxpayer has filed a qualified corporate surety bond or bank irrevocable letter of credit in the amount equal to one hundred fifty percent (150%) of the amount of the final assessment or portion of the final assessment that is challenged by the suit, or has entered into a pledge or collateral assignment of assets in an amount and form satisfactory with the commissioner as evidenced by the commissioner's written consent to the pledge or collateral assignment, or has filed certified copies of notices of liens on all of the taxpayer's property, or on unencumbered property of the taxpayer located in this state equal in value to at least one hundred fifty percent (150%) of the amount of the final assessment, or the portion of the final assessment challenged by the suit, proceedings or actions for the collection of the assessed tax or challenged portion of the assessed tax, including an action to enforce the lien in favor of the commissioner under part 14 of this chapter, shall be stayed pending final determination of the suit; provided, that, unless the taxpayer has filed a qualified corporate surety bond or bank irrevocable letter of credit in the amount provided in this subsection (d), the commissioner shall not be prohibited or stayed from taking action to enforce or collect a jeopardy assessment as provided in §§ 67-1-1406 and 67-1-1431 . In the event the suit is withdrawn or dismissed, or final judgment on the suit is rendered in favor of the commissioner as to all or any portion of the challenged assessment, the commissioner shall be entitled to collect the amount of the final assessment, interest accrued on the final assessment, and any penalty assessed against the taxpayer, by enforcement of the bond, the letter of credit, the pledge or collateral assignment of assets, or the lien.
(e) In the event the commissioner commences a jeopardy proceeding under §§ 67-1-1406 and 67-1-1431 , a taxpayer who has filed suit under this section and who has filed a pledge or collateral assignment of assets in an amount and form acceptable and consented to by the commissioner, or has filed notices of lien on all of such taxpayer's property or on unencumbered property of the taxpayer located in this state, equal in value to at least one hundred fifty percent (150%) of the assessment or portion of the assessment challenged by the suit, shall have the right to seek a stay by the court of such jeopardy proceeding. The court shall not have jurisdiction to issue an ex parte stay or temporary restraining order. A stay or temporary order restraining such jeopardy proceeding may be issued by the court only after a hearing held upon not less than fifteen (15) nor more than thirty (30) days prior notice to the commissioner. At a hearing for stay or temporary order restraining jeopardy proceedings, the commissioner's basis for such proceeding shall be presumed to be correct, and the burden of proof shall be on the taxpayer to establish by clear and convincing evidence that the commissioner does not have a reasonable basis in fact for finding that collection of the tax is in jeopardy.
(f) If the taxpayer files an amendment to the taxpayer's complaint challenging the final assessment of additional taxes, for purposes of staying action for collection under subsection (d), such amended complaint shall be treated as an original complaint, and no stay of collection shall apply, unless or until an additional qualified corporate surety bond, bank letter of credit, pledge or collateral assignment of assets consented to by the commissioner is filed, or notices of lien are filed on all taxpayer's property or on additional property of the taxpayer located in the United States, to the extent required to equal or exceed one hundred fifty percent (150%) of the amount of additional assessment challenged. The filing of an amendment to a complaint in a pending suit challenging the final assessment of additional taxes shall be deemed to be the filing of a suit as provided in subsection (b).
(g) The commissioner may at any time file a motion with the court challenging the qualification, sufficiency, or validity and accuracy of any bond, letter of credit, affidavit, or notice of lien filed by a taxpayer. Such motion may also seek to increase the amount of any bond, letter of credit, pledge or collateral assignment of assets, or notice of lien, which shall be granted, if it reasonably appears to the court that the amount is not sufficient to protect the state adequately. The commissioner shall be entitled to discover any and all matters, not privileged, pursuant to the Rules of Civil Procedure. If a bond, letter of credit, or notice of lien is determined, after hearing, to be disqualified or insufficient to stay a levy or action to collect the final assessment, or portion of the final assessment challenged, such stay shall be lifted, unless made qualified or sufficient within the time, not to exceed ten (10) days, prescribed by the court. If the court, after hearing, determines that an affidavit filed by the taxpayer contains material omissions, misrepresentations, overvaluation of assets or understatement of liabilities, the court shall dismiss the taxpayer's suit with prejudice, unless the court also finds, from the preponderance of the evidence, that such omission, misrepresentation, overvaluation or understatement was not intentional and was not made for the purpose of misleading the commissioner or the court, or of concealing or disguising assets, transfer of assets, or the value of those assets.
(h) The commissioner shall be entitled, upon motion with notice to the transferee or assignee of a taxpayer's assets, to have the court set aside and order restored to the taxpayer for the benefit of the commissioner all transfers and assignments of the taxpayer's assets occurring subsequent to or within one (1) year preceding the filing of suit by the taxpayer challenging an assessment by the commissioner, except those transfers or assignments that were bona fide, arm's length sales or pledges of noninventory assets of a value of less than one thousand dollars ($1,000), or sales from inventory occurring in the ordinary course of the taxpayer's trade or business, and for which the taxpayer received full and adequate consideration in money or money's worth. The commissioner shall be entitled to discover any and all matters, not privileged, pursuant to the Rules of Civil Procedure. The court may order the restored assets sold and liquidated under the procedures established in part 14 of this chapter, and shall apply the net proceeds of the sale to the payment of all amounts assessed by the commissioner against the taxpayer, and shall return the balance of the proceeds, pro rata, to the person or persons from whom the assignment or transfer of such assets was set aside.
(i) To the extent of any amounts collected by or paid to the commissioner with respect to an assessment, or any portion of the assessment, challenged by suit by the taxpayer, whether such collection was pursuant to a jeopardy proceeding, by application of assets restored to the taxpayer pursuant to subsection (h), or otherwise, the suit shall proceed as a timely suit for refund of taxes paid, as if a timely claim for refund had been filed by the taxpayer and denied by the commissioner.
(j) Any notice of a proposed or final assessment issued by the department shall include notice that the taxpayer has the right to file suit in the appropriate chancery court of this state in accordance with this section to challenge the final assessment and collection of the tax within ninety (90) days from the date such assessment becomes final.
Amended by 2014 Tenn. Acts, ch. 854, s 9, eff. 1/1/2015.
Acts 1986, ch. 749, § 5; 1987, ch. 91, § 1; 1998, ch. 637, § 1; 1998, ch. 641, § 5.
Tenn. Code Ann. § 67-4-2106 — TN Code / Title 67 / Chapter 4 / Section 67-4-2106
Rate of tax
Status: in_force

(a) The privilege tax imposed on all taxpayers shall be a tax of twenty-five cents (25¢) per one hundred dollars ($100), or major fraction thereof, of a taxpayer's net worth, determined in accordance with subsection (b), at the close of the tax year covered by the required return. (b) For purposes of this section, for taxpayer's filing on a separate entity basis, "net worth" is defined as the difference between a taxpayer's total assets less its total liabilities computed in accordance with generally accepted accounting principles. However, if the taxpayer does not maintain its books and records in accordance with generally accepted accounting principles, net worth shall be computed in accordance with the accounting method used by the taxpayer for federal tax purposes, so long as the method fairly reflects the taxpayer's net worth for purposes of the tax levied by this part. For taxpayers required by this part to file as a unitary group on a combined basis, "net worth" is defined as the difference between each unitary groups' taxpayers' total assets less its total liabilities computed in accordance with generally accepted accounting principles. For a taxpayer electing to compute its net worth on a consolidated basis, net worth is defined as the difference between the total assets less the total liabilities of the affiliated group at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet including all members of the group. The pro forma consolidated balance sheet shall be prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated. For a captive REIT affiliated group, "net worth" is defined as the difference between the total assets less the total liabilities of the affiliated group at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet including all members of the group. The pro forma consolidated balance sheet shall be prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated. (c) For purposes of the franchise tax levied by this part, a business entity shall be classified as a corporation, partnership, or other type business entity, consistent with the way the entity is classified for federal income tax purposes, and subject to tax in accordance with this part 21. Notwithstanding any law to the contrary, entities that are disregarded for federal income tax purposes, except for limited liability companies whose single member is a corporation, shall not be disregarded for Tennessee franchise tax purposes. Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file franchise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2112 , each taxpayer shall be considered a separate and single business entity for Tennessee franchise tax purposes and shall file its Tennessee franchise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group. Acts 1999, ch. 406, § 4; 2000, ch. 982, §§ 29 - 31; 2004, ch. 932, § 5; 2010 , ch. 1134, §§ 13, 14.
(a) The privilege tax imposed on all taxpayers shall be a tax of twenty-five cents (25¢) per one hundred dollars ($100), or major fraction thereof, of a taxpayer's net worth, determined in accordance with subsection (b), at the close of the tax year covered by the required return.
(b) For purposes of this section, for taxpayer's filing on a separate entity basis, "net worth" is defined as the difference between a taxpayer's total assets less its total liabilities computed in accordance with generally accepted accounting principles. However, if the taxpayer does not maintain its books and records in accordance with generally accepted accounting principles, net worth shall be computed in accordance with the accounting method used by the taxpayer for federal tax purposes, so long as the method fairly reflects the taxpayer's net worth for purposes of the tax levied by this part. For taxpayers required by this part to file as a unitary group on a combined basis, "net worth" is defined as the difference between each unitary groups' taxpayers' total assets less its total liabilities computed in accordance with generally accepted accounting principles. For a taxpayer electing to compute its net worth on a consolidated basis, net worth is defined as the difference between the total assets less the total liabilities of the affiliated group at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet including all members of the group. The pro forma consolidated balance sheet shall be prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated. For a captive REIT affiliated group, "net worth" is defined as the difference between the total assets less the total liabilities of the affiliated group at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet including all members of the group. The pro forma consolidated balance sheet shall be prepared in accordance with generally accepted accounting principles wherein transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
(c) For purposes of the franchise tax levied by this part, a business entity shall be classified as a corporation, partnership, or other type business entity, consistent with the way the entity is classified for federal income tax purposes, and subject to tax in accordance with this part 21. Notwithstanding any law to the contrary, entities that are disregarded for federal income tax purposes, except for limited liability companies whose single member is a corporation, shall not be disregarded for Tennessee franchise tax purposes. Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file franchise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2112 , each taxpayer shall be considered a separate and single business entity for Tennessee franchise tax purposes and shall file its Tennessee franchise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group.
Acts 1999, ch. 406, § 4; 2000, ch. 982, §§ 29 - 31; 2004, ch. 932, § 5; 2010 , ch. 1134, §§ 13, 14.
Tenn. Code Ann. § 67-4-2118 — TN Code / Title 67 / Chapter 4 / Section 67-4-2118
Apportionment - Financial institutions
Status: in_force

(a) Notwithstanding any other provision of this part, a financial institution that is not filing a combined report and that has business activity both in and outside Tennessee, and that is paying tax based on its net worth, shall apportion its tax base to Tennessee by multiplying net worth by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subsection (c), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subsection (c). "Receipts" includes all gross income derived from transactions and activities in the regular course of business, except that the receipts from the disposition of assets, such as securities and money market transactions, are included to the extent of the net taxable gain on such transactions. (b) A unitary group shall have net worth apportioned to Tennessee based on the apportioned net worth of the unitary group, as determined under subsection (a), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group. (c) "Receipts," as used in this section, shall be attributed to Tennessee as follows: (1) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee; (2) (A) Interest income and other receipts from assets, in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (B) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted; (3) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, by telephone or by other electronic means; (4) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (c)(4), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions; (5) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in either subdivision (c)(2), (c)(3) or (c)(4); (6) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed; (7) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this section; (8) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and the receipt is not otherwise attributed under subdivision (c)(7). For purposes of this subdivision (c)(8), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state; (9) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2111(i)(1)(C) ; (10) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased; (11) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (c). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and (12) Any other receipts of gross income not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (c) shall be attributed to Tennessee in the same proportion that aggregate receipts are attributed to Tennessee under subdivisions (c)(1)-(11). (d) (1) The financial institution affiliated group shall prepare a pro forma consolidated balance sheet, in accordance with generally accepted accounting principles, in which transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated. (2) (A) For tax years beginning on or after January 1, 2008, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twenty percent (20%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (B) For tax years beginning on or after January 1, 2009, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twelve and one-half percent (12.5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (C) For tax years beginning on or after January 1, 2010, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and five percent (5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (D) For tax years beginning on or after January 1, 2011, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1). (3) Each member of the group shall apportion its net worth to Tennessee by multiplying the net worth of the entire financial institution affiliated group, as computed under subdivision (d)(2), by a fraction, the numerator of which is the total gross receipts of the member attributable to Tennessee during the tax period, and the denominator of which is the aggregate gross receipts of all members of the group during the tax period. For purposes of this subdivision (d)(3), receipts shall be determined as follows: (A) Dividends and receipts resulting from transactions between members of the group shall be excluded from both the numerator and denominator; (B) If the member is a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with subsection (c); (C) If a member is not a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with § 67-4-2111(h)-(j) ; and (D) The denominator shall consist of the total gross receipts of all members of the group during the tax period, and shall be determined by adding the total gross receipts derived from the activities enumerated in subdivisions (c)(1)-(11) by the group's financial institution members, and the total gross receipts of the group's nonfinancial institution members, as determined in accordance with § 67-4-2111(g)(1) and (4) during the tax period. (4) The unitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a combined return. As such, the unitary group shall pay franchise tax on its combined apportioned equity. The nonunitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a separate entity basis. As such, the nonunitary members shall pay franchise tax on the apportioned net worth, as calculated on a consolidated basis. Amended by 2024 Tenn. Acts, ch. 950,s 15, eff. 5/10/2024. Amended by 2015 Tenn. Acts, ch. 514, Secs.s 19, s 20 eff. 7/1/2016. Amended by 2015 Tenn. Acts, ch. 514, s 18, eff. 7/1/2016. Acts 1999, ch. 406, § 4; 2004, ch. 932, § 10; 2005, ch. 499, § 83; 2008 , ch. 1106, § 53.
(a) Notwithstanding any other provision of this part, a financial institution that is not filing a combined report and that has business activity both in and outside Tennessee, and that is paying tax based on its net worth, shall apportion its tax base to Tennessee by multiplying net worth by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subsection (c), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subsection (c). "Receipts" includes all gross income derived from transactions and activities in the regular course of business, except that the receipts from the disposition of assets, such as securities and money market transactions, are included to the extent of the net taxable gain on such transactions.
(b) A unitary group shall have net worth apportioned to Tennessee based on the apportioned net worth of the unitary group, as determined under subsection (a), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group.
(c) "Receipts," as used in this section, shall be attributed to Tennessee as follows: (1) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee; (2) (A) Interest income and other receipts from assets, in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (B) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted; (3) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, by telephone or by other electronic means; (4) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (c)(4), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions; (5) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in either subdivision (c)(2), (c)(3) or (c)(4); (6) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed; (7) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this section; (8) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and the receipt is not otherwise attributed under subdivision (c)(7). For purposes of this subdivision (c)(8), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state; (9) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2111(i)(1)(C) ; (10) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased; (11) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (c). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and (12) Any other receipts of gross income not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (c) shall be attributed to Tennessee in the same proportion that aggregate receipts are attributed to Tennessee under subdivisions (c)(1)-(11).
(1) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee;
(2) (A) Interest income and other receipts from assets, in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (B) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted;
(A) Interest income and other receipts from assets, in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property;
(B) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted;
(3) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, by telephone or by other electronic means;
(4) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (c)(4), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions;
(5) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in either subdivision (c)(2), (c)(3) or (c)(4);
(6) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed;
(7) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this section;
(8) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and the receipt is not otherwise attributed under subdivision (c)(7). For purposes of this subdivision (c)(8), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state;
(9) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2111(i)(1)(C) ;
(10) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased;
(11) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (c). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and
(12) Any other receipts of gross income not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (c) shall be attributed to Tennessee in the same proportion that aggregate receipts are attributed to Tennessee under subdivisions (c)(1)-(11).
(d) (1) The financial institution affiliated group shall prepare a pro forma consolidated balance sheet, in accordance with generally accepted accounting principles, in which transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated. (2) (A) For tax years beginning on or after January 1, 2008, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twenty percent (20%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (B) For tax years beginning on or after January 1, 2009, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twelve and one-half percent (12.5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (C) For tax years beginning on or after January 1, 2010, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and five percent (5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (D) For tax years beginning on or after January 1, 2011, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1). (3) Each member of the group shall apportion its net worth to Tennessee by multiplying the net worth of the entire financial institution affiliated group, as computed under subdivision (d)(2), by a fraction, the numerator of which is the total gross receipts of the member attributable to Tennessee during the tax period, and the denominator of which is the aggregate gross receipts of all members of the group during the tax period. For purposes of this subdivision (d)(3), receipts shall be determined as follows: (A) Dividends and receipts resulting from transactions between members of the group shall be excluded from both the numerator and denominator; (B) If the member is a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with subsection (c); (C) If a member is not a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with § 67-4-2111(h)-(j) ; and (D) The denominator shall consist of the total gross receipts of all members of the group during the tax period, and shall be determined by adding the total gross receipts derived from the activities enumerated in subdivisions (c)(1)-(11) by the group's financial institution members, and the total gross receipts of the group's nonfinancial institution members, as determined in accordance with § 67-4-2111(g)(1) and (4) during the tax period. (4) The unitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a combined return. As such, the unitary group shall pay franchise tax on its combined apportioned equity. The nonunitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a separate entity basis. As such, the nonunitary members shall pay franchise tax on the apportioned net worth, as calculated on a consolidated basis.
(1) The financial institution affiliated group shall prepare a pro forma consolidated balance sheet, in accordance with generally accepted accounting principles, in which transactions and holdings between members of the group and holdings in nondomestic persons have been eliminated.
(2) (A) For tax years beginning on or after January 1, 2008, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twenty percent (20%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (B) For tax years beginning on or after January 1, 2009, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twelve and one-half percent (12.5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (C) For tax years beginning on or after January 1, 2010, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and five percent (5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet. (D) For tax years beginning on or after January 1, 2011, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1).
(A) For tax years beginning on or after January 1, 2008, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twenty percent (20%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet.
(B) For tax years beginning on or after January 1, 2009, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and twelve and one-half percent (12.5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet.
(C) For tax years beginning on or after January 1, 2010, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1), and five percent (5%) of the financial institution affiliated group's securities classified as held to maturity or available for sale as shown on the group's accounting statements, prepared in accordance with generally accepted accounting principles, at the close of business on the last day of the tax year, as shown by a pro forma consolidated balance sheet.
(D) For tax years beginning on or after January 1, 2011, the consolidated net worth of the financial institution affiliated group shall be the difference between total assets, less the sum of total liabilities shown on the consolidated balance sheet prepared pursuant to subdivision (d)(1).
(3) Each member of the group shall apportion its net worth to Tennessee by multiplying the net worth of the entire financial institution affiliated group, as computed under subdivision (d)(2), by a fraction, the numerator of which is the total gross receipts of the member attributable to Tennessee during the tax period, and the denominator of which is the aggregate gross receipts of all members of the group during the tax period. For purposes of this subdivision (d)(3), receipts shall be determined as follows: (A) Dividends and receipts resulting from transactions between members of the group shall be excluded from both the numerator and denominator; (B) If the member is a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with subsection (c); (C) If a member is not a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with § 67-4-2111(h)-(j) ; and (D) The denominator shall consist of the total gross receipts of all members of the group during the tax period, and shall be determined by adding the total gross receipts derived from the activities enumerated in subdivisions (c)(1)-(11) by the group's financial institution members, and the total gross receipts of the group's nonfinancial institution members, as determined in accordance with § 67-4-2111(g)(1) and (4) during the tax period.
(A) Dividends and receipts resulting from transactions between members of the group shall be excluded from both the numerator and denominator;
(B) If the member is a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with subsection (c);
(C) If a member is not a financial institution, then for purposes of calculating the member's numerator, receipts shall be attributed to Tennessee in a manner consistent with § 67-4-2111(h)-(j) ; and
(D) The denominator shall consist of the total gross receipts of all members of the group during the tax period, and shall be determined by adding the total gross receipts derived from the activities enumerated in subdivisions (c)(1)-(11) by the group's financial institution members, and the total gross receipts of the group's nonfinancial institution members, as determined in accordance with § 67-4-2111(g)(1) and (4) during the tax period.
(4) The unitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a combined return. As such, the unitary group shall pay franchise tax on its combined apportioned equity. The nonunitary members of the financial institution affiliated group shall report and pay the franchise tax computed under this section on a separate entity basis. As such, the nonunitary members shall pay franchise tax on the apportioned net worth, as calculated on a consolidated basis.
Amended by 2024 Tenn. Acts, ch. 950,s 15, eff. 5/10/2024.
Amended by 2015 Tenn. Acts, ch. 514, Secs.s 19, s 20 eff. 7/1/2016.
Amended by 2015 Tenn. Acts, ch. 514, s 18, eff. 7/1/2016.
Acts 1999, ch. 406, § 4; 2004, ch. 932, § 10; 2005, ch. 499, § 83; 2008 , ch. 1106, § 53.
Tenn. Code Ann. § 67-4-1025 — TN Code / Title 67 / Chapter 4 / Section 67-4-1025
Distribution of revenue
Status: in_force

(a) All of the taxes on tobacco products collected under this part shall be applied in the following manner: (1) Four percent (4%) of the amount so collected shall be allowed as the expense for carrying out this part; (2) The amount of eighty-two thousand five hundred dollars ($82,500) shall be used annually to provide the special sinking fund to pay the principal and interest on the Tennessee rural public school building and repair bonds; (3) The amount of two hundred twenty-five thousand dollars ($225,000) shall be used annually to provide the special sinking fund for the payment of the principal and interest of the University of Tennessee building bonds; and (4) The remainder shall be applied to and become a part of the general state school fund created by title 49, chapter 3. (b) The revenue from the tax on cigarettes shall be used exclusively for public education, grades one through twelve (1-12), subsection (a) to the contrary notwithstanding. All revenue collected under this part shall be distributed to the respective public school systems of the state for use in grades one through twelve (1-12) in accordance with the distribution formula governing public school systems, grades one through twelve (1-12). (c) The revenues collected from the fee levied in § 67-4-1004(b) shall be allocated to the department for the enforcement and administration of the "Unfair Retailer's Cigarette Sales Law," compiled in title 47, chapter 25, part 3. (d) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the increase in the tax rate from ten (10) mills to three cents (3¢) on each cigarette shall be deposited in the education trust fund created by title 49, chapter 3; provided, that an amount of twenty-one million dollars ($21,000,000) of that cigarette tax revenue shall be allocated to the department of agriculture's Tennessee agriculture enhancement program; provided, however, that in the fiscal year beginning July 1, 2009, the amount of sixteen million three hundred thousand dollars ($16,300,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act; and provided, further, that in the fiscal year beginning July 1, 2010, the amount of ten million dollars ($10,000,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act. (e) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the additional tax rate of one-tenth of one cent (0.1¢) on each cigarette imposed by § 67-4-1004(d) shall be deposited in the trauma system fund created by the Tennessee Trauma Center Funding Law of 2007, compiled in title 68, chapter 59. Those funds shall be distributed as required by title 68, chapter 59. Acts 1937, ch. 133, §§ 4, 13; 1937, ch. 201, § 1; 1937, ch. 295, § 1; 1937 (3rd Ex. Sess.), ch. 7, § 1; 1939, ch. 63, § 1; 1939, ch. 202, § 1; mod. C. Supp. 1950, §§ 1238.1, 1238.10 (Williams, §§ 1213.4, 1213.13); Acts 1951, ch. 60, §§ 1, 2 (Williams, § 1213.4b); modified; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 34, § 1; 1965, ch. 118, § 2; 1967, ch. 98, § 2; 1969, ch. 250, §§ 1, 2, 5; 1971, ch. 58, § 1; 1972, ch. 457, § 1; 1976, ch. 440, § 2; T.C.A. (orig. ed.), §§ 67-3102, 67-3124; Acts 1984, ch. 832, § 16; 1985, ch. 179, § 8; 2007 , ch. 368, §§ 3, 5; 2009 , ch. 531, § 11; 2010 , ch. 1134, § 64.
(a) All of the taxes on tobacco products collected under this part shall be applied in the following manner: (1) Four percent (4%) of the amount so collected shall be allowed as the expense for carrying out this part; (2) The amount of eighty-two thousand five hundred dollars ($82,500) shall be used annually to provide the special sinking fund to pay the principal and interest on the Tennessee rural public school building and repair bonds; (3) The amount of two hundred twenty-five thousand dollars ($225,000) shall be used annually to provide the special sinking fund for the payment of the principal and interest of the University of Tennessee building bonds; and (4) The remainder shall be applied to and become a part of the general state school fund created by title 49, chapter 3.
(1) Four percent (4%) of the amount so collected shall be allowed as the expense for carrying out this part;
(2) The amount of eighty-two thousand five hundred dollars ($82,500) shall be used annually to provide the special sinking fund to pay the principal and interest on the Tennessee rural public school building and repair bonds;
(3) The amount of two hundred twenty-five thousand dollars ($225,000) shall be used annually to provide the special sinking fund for the payment of the principal and interest of the University of Tennessee building bonds; and
(4) The remainder shall be applied to and become a part of the general state school fund created by title 49, chapter 3.
(b) The revenue from the tax on cigarettes shall be used exclusively for public education, grades one through twelve (1-12), subsection (a) to the contrary notwithstanding. All revenue collected under this part shall be distributed to the respective public school systems of the state for use in grades one through twelve (1-12) in accordance with the distribution formula governing public school systems, grades one through twelve (1-12).
(c) The revenues collected from the fee levied in § 67-4-1004(b) shall be allocated to the department for the enforcement and administration of the "Unfair Retailer's Cigarette Sales Law," compiled in title 47, chapter 25, part 3.
(d) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the increase in the tax rate from ten (10) mills to three cents (3¢) on each cigarette shall be deposited in the education trust fund created by title 49, chapter 3; provided, that an amount of twenty-one million dollars ($21,000,000) of that cigarette tax revenue shall be allocated to the department of agriculture's Tennessee agriculture enhancement program; provided, however, that in the fiscal year beginning July 1, 2009, the amount of sixteen million three hundred thousand dollars ($16,300,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act; and provided, further, that in the fiscal year beginning July 1, 2010, the amount of ten million dollars ($10,000,000) or a larger amount not exceeding twenty-one million dollars ($21,000,000) annually shall be allocated to the Tennessee agriculture enhancement program, such amount to be specified in the annual general appropriations act.
(e) Notwithstanding subsections (a) and (b) to the contrary, all cigarette tax revenue generated from the additional tax rate of one-tenth of one cent (0.1¢) on each cigarette imposed by § 67-4-1004(d) shall be deposited in the trauma system fund created by the Tennessee Trauma Center Funding Law of 2007, compiled in title 68, chapter 59. Those funds shall be distributed as required by title 68, chapter 59.
Acts 1937, ch. 133, §§ 4, 13; 1937, ch. 201, § 1; 1937, ch. 295, § 1; 1937 (3rd Ex. Sess.), ch. 7, § 1; 1939, ch. 63, § 1; 1939, ch. 202, § 1; mod. C. Supp. 1950, §§ 1238.1, 1238.10 (Williams, §§ 1213.4, 1213.13); Acts 1951, ch. 60, §§ 1, 2 (Williams, § 1213.4b); modified; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 34, § 1; 1965, ch. 118, § 2; 1967, ch. 98, § 2; 1969, ch. 250, §§ 1, 2, 5; 1971, ch. 58, § 1; 1972, ch. 457, § 1; 1976, ch. 440, § 2; T.C.A. (orig. ed.), §§ 67-3102, 67-3124; Acts 1984, ch. 832, § 16; 1985, ch. 179, § 8; 2007 , ch. 368, §§ 3, 5; 2009 , ch. 531, § 11; 2010 , ch. 1134, § 64.
Tenn. Code Ann. § 67-3-801 — TN Code / Title 67 / Chapter 3 / Section 67-3-801
Destination state shipping paper to be issued
Status: in_force

(a) A person operating a refinery, terminal or bulk plant facility in this state shall prepare an automated, machine-generated, shipping paper, and provide it to the driver of every transport truck receiving petroleum products into the vehicle storage tank; provided, that where a bulk plant is not equipped to provide a machine-generated paper, it shall manually prepare the shipping paper required by this section. The department may by regulation require shipping papers to meet tamper-resistant standards, and every manually prepared shipping paper shall contain a stamp indicating that the paper was prepared at the facility at which it was issued. (b) Every shipping paper shall set out on its face: (1) Identification by address of the terminal or bulk plant from which the petroleum products were removed; (2) The date the petroleum products were removed; (3) The type and amount of petroleum products removed, actual gallons and net gallons; (4) The state of destination as represented to the terminal operator by the transporter, the shipper or the shipper's agent; (5) A notation: (A) With respect to diesel fuel acquired under claim of exempt use, indicating the fuel is "DYED DIESEL FUEL, NON-TAXABLE USE ONLY, PENALTY FOR TAXABLE USE" for the load or the appropriate portion of the load; or (B) With respect to any other taxable petroleum products, indicating: "[supplier name] is responsible for [state name] motor fuel tax," or any other notation acceptable to the department, that otherwise indicates that the diesel tax imposed by this chapter, or any petroleum products taxes imposed by the destination state other than Tennessee, have been paid to the supplier with respect to the entire load or the appropriate portion of the load; and (6) Any other information reasonably required by the department for the enforcement of this chapter. (c) Unless the supplier has first directed the terminal or refinery operator to make the statement on the supplier's behalf, no terminal or refinery operator shall imprint any statement on a shipping paper relating to petroleum products to be delivered to this state, indicating: (1) Any supplier's liability for payment of the taxes and fees imposed by this chapter; or (2) The tax-paid or tax-collected status of any petroleum products. (d) A person operating a terminal or refinery, or operating a bulk plant equipped to provide machine-generated shipping papers, may manually prepare shipping papers as a result of extraordinary, unforeseen circumstances, that temporarily interfere with the operator's ability to issue automated, machine-generated, shipping papers; provided, that such operator shall, prior to manually preparing such papers, provide facsimile notice to the department, and the operator's employees shall add to such manually prepared papers, prior to removal of each affected transport load from the facility, a stamp indicating that the document was prepared at the facility. If the interruption has not been cured within twenty-four (24) hours, additional notice to the department shall be made. (e) A person operating a refinery, terminal or bulk plant may load petroleum products, a portion of which is destined for sale or use in this state and a portion of which is destined for sale or use in another state or states. However, such split loads shall be documented by the operator by issuing shipping papers designating the state of destination for each portion of the product. (f) A person operating a refinery, terminal or bulk plant shall post a conspicuous notice located near the point of receipt of shipping papers by transport truck operators, which notice shall describe in clear and concise terms the duties of the transport operator and retail dealer under §§ 67-3-802 - 67-3-805; provided, that the department may by rule or notice establish the language, type, style and format of the notice. (g) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against a person who fails to comply with this section. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1901.
(a) A person operating a refinery, terminal or bulk plant facility in this state shall prepare an automated, machine-generated, shipping paper, and provide it to the driver of every transport truck receiving petroleum products into the vehicle storage tank; provided, that where a bulk plant is not equipped to provide a machine-generated paper, it shall manually prepare the shipping paper required by this section. The department may by regulation require shipping papers to meet tamper-resistant standards, and every manually prepared shipping paper shall contain a stamp indicating that the paper was prepared at the facility at which it was issued.
(b) Every shipping paper shall set out on its face: (1) Identification by address of the terminal or bulk plant from which the petroleum products were removed; (2) The date the petroleum products were removed; (3) The type and amount of petroleum products removed, actual gallons and net gallons; (4) The state of destination as represented to the terminal operator by the transporter, the shipper or the shipper's agent; (5) A notation: (A) With respect to diesel fuel acquired under claim of exempt use, indicating the fuel is "DYED DIESEL FUEL, NON-TAXABLE USE ONLY, PENALTY FOR TAXABLE USE" for the load or the appropriate portion of the load; or (B) With respect to any other taxable petroleum products, indicating: "[supplier name] is responsible for [state name] motor fuel tax," or any other notation acceptable to the department, that otherwise indicates that the diesel tax imposed by this chapter, or any petroleum products taxes imposed by the destination state other than Tennessee, have been paid to the supplier with respect to the entire load or the appropriate portion of the load; and (6) Any other information reasonably required by the department for the enforcement of this chapter.
(1) Identification by address of the terminal or bulk plant from which the petroleum products were removed;
(2) The date the petroleum products were removed;
(3) The type and amount of petroleum products removed, actual gallons and net gallons;
(4) The state of destination as represented to the terminal operator by the transporter, the shipper or the shipper's agent;
(5) A notation: (A) With respect to diesel fuel acquired under claim of exempt use, indicating the fuel is "DYED DIESEL FUEL, NON-TAXABLE USE ONLY, PENALTY FOR TAXABLE USE" for the load or the appropriate portion of the load; or (B) With respect to any other taxable petroleum products, indicating: "[supplier name] is responsible for [state name] motor fuel tax," or any other notation acceptable to the department, that otherwise indicates that the diesel tax imposed by this chapter, or any petroleum products taxes imposed by the destination state other than Tennessee, have been paid to the supplier with respect to the entire load or the appropriate portion of the load; and
(A) With respect to diesel fuel acquired under claim of exempt use, indicating the fuel is "DYED DIESEL FUEL, NON-TAXABLE USE ONLY, PENALTY FOR TAXABLE USE" for the load or the appropriate portion of the load; or
(B) With respect to any other taxable petroleum products, indicating: "[supplier name] is responsible for [state name] motor fuel tax," or any other notation acceptable to the department, that otherwise indicates that the diesel tax imposed by this chapter, or any petroleum products taxes imposed by the destination state other than Tennessee, have been paid to the supplier with respect to the entire load or the appropriate portion of the load; and
(6) Any other information reasonably required by the department for the enforcement of this chapter.
(c) Unless the supplier has first directed the terminal or refinery operator to make the statement on the supplier's behalf, no terminal or refinery operator shall imprint any statement on a shipping paper relating to petroleum products to be delivered to this state, indicating: (1) Any supplier's liability for payment of the taxes and fees imposed by this chapter; or (2) The tax-paid or tax-collected status of any petroleum products.
(1) Any supplier's liability for payment of the taxes and fees imposed by this chapter; or
(2) The tax-paid or tax-collected status of any petroleum products.
(d) A person operating a terminal or refinery, or operating a bulk plant equipped to provide machine-generated shipping papers, may manually prepare shipping papers as a result of extraordinary, unforeseen circumstances, that temporarily interfere with the operator's ability to issue automated, machine-generated, shipping papers; provided, that such operator shall, prior to manually preparing such papers, provide facsimile notice to the department, and the operator's employees shall add to such manually prepared papers, prior to removal of each affected transport load from the facility, a stamp indicating that the document was prepared at the facility. If the interruption has not been cured within twenty-four (24) hours, additional notice to the department shall be made.
(e) A person operating a refinery, terminal or bulk plant may load petroleum products, a portion of which is destined for sale or use in this state and a portion of which is destined for sale or use in another state or states. However, such split loads shall be documented by the operator by issuing shipping papers designating the state of destination for each portion of the product.
(f) A person operating a refinery, terminal or bulk plant shall post a conspicuous notice located near the point of receipt of shipping papers by transport truck operators, which notice shall describe in clear and concise terms the duties of the transport operator and retail dealer under §§ 67-3-802 - 67-3-805; provided, that the department may by rule or notice establish the language, type, style and format of the notice.
(g) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against a person who fails to comply with this section.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1901.
Tenn. Code Ann. § 67-4-1016 — TN Code / Title 67 / Chapter 4 / Section 67-4-1016
License revocation or suspension
Status: in_force

(a) (1) The commissioner may revoke any license issued under this part upon the failure of the licensee to pay the tax or taxes imposed by this part, or for the violation of any provision of this part or any rule or regulation promulgated by the commissioner under the authority vested in the commissioner. (2) The commissioner shall, before revoking any license, notify the licensee, by letter addressed and mailed to the last known address of the licensee, and shall afford the licensee an opportunity to be heard in person or by counsel in reference to the license. This notice shall be mailed at least ten (10) days prior to a date set for hearing. (3) Pending final determination of the notice or hearing, the licensee may continue to buy, sell and distribute tobacco products. The commissioner may require bond with good and solvent surety in such amount as may be deemed necessary to protect the state's interest. (4) The commissioner has the power to issue subpoenas as provided in § 67-4-1017 . (5) The hearing authorized under this subsection (a) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021 . (b) (1) At such time and place of the hearing so designated, or at any time and/or place to which the commissioner, or the commissioner's duly authorized agent, representative or employee, may adjourn such hearing, the matters under consideration shall be gone into, and, after a full hearing the commissioner, or the commissioner's duly authorized agent, representative and/or employee, shall make such finding as, in the commissioner's opinion, the facts may warrant, and if the commissioner determines that the licensee has failed to pay the tax or taxes imposed by the terms of this part when due, or has violated any rule or regulation promulgated by the commissioner under the authority vested in the commissioner by the terms of this part, or has been guilty of a violation of any of this part, as charged, the license of such licensee shall be revoked; otherwise, the charges shall be dismissed, and the license shall continue in force unimpaired. If the commissioner finds that the licensee is guilty of the delinquency charged, but further finds that such violation by the licensee was unintentional or inadvertent, the commissioner, or the commissioner's duly authorized agent, representative or employee, may suspend the license of the licensee for a period not exceeding thirty (30) days; or may, if the licensee shall not previously have been found guilty of any delinquency by the commissioner under this part, or the dereliction charged be remedied by the licensee at or prior to the time of the hearing, dismiss the proceeding and charges against the licensee upon the payment by the licensee of all costs and fees incurred in holding and having the hearing. (2) The hearing authorized under this subsection (b) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021 . (c) The ruling or order issued by the commissioner with reference to the revocation or suspension of any tobacco license may only be reviewed in the manner and in accordance with the procedure authorized under § 67-4-1021 . Acts 1929 (Ex. Sess.), ch. 22, § 1; Code 1932, § 1236; Acts 1937, ch. 133, § 3; C. Supp. 1950, § 1233.4 (Williams, § 1213.3); modified; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 327, §§ 3-5; 1968, ch. 623, § 5; T.C.A. (orig. ed.), §§ 67-3117, 67-3119, 67-3121.
(a) (1) The commissioner may revoke any license issued under this part upon the failure of the licensee to pay the tax or taxes imposed by this part, or for the violation of any provision of this part or any rule or regulation promulgated by the commissioner under the authority vested in the commissioner. (2) The commissioner shall, before revoking any license, notify the licensee, by letter addressed and mailed to the last known address of the licensee, and shall afford the licensee an opportunity to be heard in person or by counsel in reference to the license. This notice shall be mailed at least ten (10) days prior to a date set for hearing. (3) Pending final determination of the notice or hearing, the licensee may continue to buy, sell and distribute tobacco products. The commissioner may require bond with good and solvent surety in such amount as may be deemed necessary to protect the state's interest. (4) The commissioner has the power to issue subpoenas as provided in § 67-4-1017 . (5) The hearing authorized under this subsection (a) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021 .
(1) The commissioner may revoke any license issued under this part upon the failure of the licensee to pay the tax or taxes imposed by this part, or for the violation of any provision of this part or any rule or regulation promulgated by the commissioner under the authority vested in the commissioner.
(2) The commissioner shall, before revoking any license, notify the licensee, by letter addressed and mailed to the last known address of the licensee, and shall afford the licensee an opportunity to be heard in person or by counsel in reference to the license. This notice shall be mailed at least ten (10) days prior to a date set for hearing.
(3) Pending final determination of the notice or hearing, the licensee may continue to buy, sell and distribute tobacco products. The commissioner may require bond with good and solvent surety in such amount as may be deemed necessary to protect the state's interest.
(4) The commissioner has the power to issue subpoenas as provided in § 67-4-1017 .
(5) The hearing authorized under this subsection (a) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021 .
(b) (1) At such time and place of the hearing so designated, or at any time and/or place to which the commissioner, or the commissioner's duly authorized agent, representative or employee, may adjourn such hearing, the matters under consideration shall be gone into, and, after a full hearing the commissioner, or the commissioner's duly authorized agent, representative and/or employee, shall make such finding as, in the commissioner's opinion, the facts may warrant, and if the commissioner determines that the licensee has failed to pay the tax or taxes imposed by the terms of this part when due, or has violated any rule or regulation promulgated by the commissioner under the authority vested in the commissioner by the terms of this part, or has been guilty of a violation of any of this part, as charged, the license of such licensee shall be revoked; otherwise, the charges shall be dismissed, and the license shall continue in force unimpaired. If the commissioner finds that the licensee is guilty of the delinquency charged, but further finds that such violation by the licensee was unintentional or inadvertent, the commissioner, or the commissioner's duly authorized agent, representative or employee, may suspend the license of the licensee for a period not exceeding thirty (30) days; or may, if the licensee shall not previously have been found guilty of any delinquency by the commissioner under this part, or the dereliction charged be remedied by the licensee at or prior to the time of the hearing, dismiss the proceeding and charges against the licensee upon the payment by the licensee of all costs and fees incurred in holding and having the hearing. (2) The hearing authorized under this subsection (b) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021 .
(1) At such time and place of the hearing so designated, or at any time and/or place to which the commissioner, or the commissioner's duly authorized agent, representative or employee, may adjourn such hearing, the matters under consideration shall be gone into, and, after a full hearing the commissioner, or the commissioner's duly authorized agent, representative and/or employee, shall make such finding as, in the commissioner's opinion, the facts may warrant, and if the commissioner determines that the licensee has failed to pay the tax or taxes imposed by the terms of this part when due, or has violated any rule or regulation promulgated by the commissioner under the authority vested in the commissioner by the terms of this part, or has been guilty of a violation of any of this part, as charged, the license of such licensee shall be revoked; otherwise, the charges shall be dismissed, and the license shall continue in force unimpaired. If the commissioner finds that the licensee is guilty of the delinquency charged, but further finds that such violation by the licensee was unintentional or inadvertent, the commissioner, or the commissioner's duly authorized agent, representative or employee, may suspend the license of the licensee for a period not exceeding thirty (30) days; or may, if the licensee shall not previously have been found guilty of any delinquency by the commissioner under this part, or the dereliction charged be remedied by the licensee at or prior to the time of the hearing, dismiss the proceeding and charges against the licensee upon the payment by the licensee of all costs and fees incurred in holding and having the hearing.
(2) The hearing authorized under this subsection (b) shall be held and conducted in accordance with the procedure as outlined under § 67-4-1021 .
(c) The ruling or order issued by the commissioner with reference to the revocation or suspension of any tobacco license may only be reviewed in the manner and in accordance with the procedure authorized under § 67-4-1021 .
Acts 1929 (Ex. Sess.), ch. 22, § 1; Code 1932, § 1236; Acts 1937, ch. 133, § 3; C. Supp. 1950, § 1233.4 (Williams, § 1213.3); modified; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 327, §§ 3-5; 1968, ch. 623, § 5; T.C.A. (orig. ed.), §§ 67-3117, 67-3119, 67-3121.
Tenn. Code Ann. § 67-6-712 — TN Code / Title 67 / Chapter 6 / Section 67-6-712
Distribution of revenue
Status: in_force

(a) The tax levied by a county under this part shall be distributed as follows: (1) One-half (1/2) of the proceeds shall be expended and distributed in the same manner as the county property tax for school purposes is expended and distributed; and (2) The other one-half (1/2) as follows: (A) Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct; (B) Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised; (C) However, a county and city or town may by contract provide for other distribution of the one-half (1/2) not allocated to school purposes; (3) Any out-of-state dealer making sales to a customer within this state shall report to the department information as prescribed by the commissioner, and as required under § 67-6-504(m) , that is sufficient for the commissioner to appropriately distribute revenue pursuant to subdivisions (a)(1) and (2); (4) Any county, city, town, incorporated area or special school district entitled to receive the proceeds described in subdivisions (a)(1) and (2) has the power and authority, by resolution of the governing body thereof, to pledge such proceeds to the punctual payment of principal of and interest on bonds, notes or other evidence of indebtedness issued for the purpose for which such proceeds are permitted to be spent pursuant to such subdivisions (a)(1) and (2); provided, that the pledge by a county of proceeds to which it is entitled under subdivision (a)(1) shall not be effective, unless approved by resolution of the county board of education. (b) (1) County trustees in counties having populations of seven hundred thousand (700,000) or more, according to the 1980 federal census or any subsequent federal census, shall not be entitled to receive compensation for receiving and distributing the taxes under subsection (a), notwithstanding § 8-11-110 or any other law to the contrary. (2) This subsection (b) shall have no effect, unless it is approved by a two-thirds (2/3) vote of the legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the legislative body and certified by such presiding officer to the secretary of state. (c) (1) (A) Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to the events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. (B) (i) In addition to the allocations provided in subdivision (c)(1)(A), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of local tax revenue provided in this subdivision (c)(1)(B)(i) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise. (ii) In addition to the allocation provided in subdivision (c)(1)(B)(i), an amount must also be apportioned and distributed to the municipality equal to one-half (1/2) the amount of local tax revenue derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of local tax revenue pursuant to this subdivision (c)(1)(B)(ii) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (c)(1)(B)(ii) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (c)(1)(B)(ii). (C) In addition, if an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to two-thirds (2/3) of the amount of the allocation of local tax revenue under subdivision (a)(2) derived from the sale of admissions to all other events occurring at such indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the indoor sports facility, parking charges, and related services. Such amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. (D) For the purpose of this subsection (c), "municipality" means any incorporated city or county located in this state. (E) Notwithstanding the allocations provided for in subsection (a), in a municipality with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, with a motor sports facility less than one (1) mile in circumference, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and from all sales of food, drinks, merchandise, and parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services, sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility. (2) Any bonds issued relative to the construction of a sports facility for a sports franchise listed in subdivision (c)(1)(A) shall not be issued for a term longer than thirty (30) years from the date the first game is played by the professional sports franchise in a municipality, as defined in subdivision (c)(1). (d) Notwithstanding the provisions of this section to the contrary, revenue derived from taxes imposed by this part shall be earmarked and allocated in accordance with title 7, chapter 88. (e) If any dealer fails to provide the department with the information required under § 67-6-504(m) and the department is unable to determine the proper distribution of local sales tax under subsection (a), the department shall distribute the local sales tax as follows: (1) For taxes received by the department before July 1, 2021: (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total local tax collections in all counties under this section; (B) The amount received by the county under subdivision (e)(1)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality to total local tax collections in the county and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county to total local tax collections in the county; (2) For taxes received by the department on or after July 1, 2021: (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county from dealers with no location in this state that can be identified by situs over the total local tax collections in all counties from dealers with no location in this state that can be identified by situs; (B) The amount received by the county under subdivision (e)(2)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs; (3) A county and a municipality may, by contract, provide for an alternative distribution for the amount not distributed under subdivision (a)(1). (f) Notwithstanding the allocations provided for in subsection (a), if a franchise for a minor league affiliate of a major league baseball team (American or National League) playing at the Class AA level or higher locates, as described in § 67-6-103(d)(1)(A)(iv) , in a municipality in this state and if the municipality constructs a new stadium for the franchise, then local sales tax must be apportioned and distributed to the municipality as provided in § 67-6-103(d)(1)(A)(iv) ; provided, however, that in such a case, the county and the city in which the stadium is located are authorized to agree by interlocal agreement for that portion of the local sales tax that would otherwise be allocated for school purposes under subdivision (a)(1) to continue to be so allocated and not apportioned and distributed as provided in § 67-6-103(d)(1)(A)(iv) . Amended by 2022 Tenn. Acts, ch. 1069, s 4, eff. 5/25/2022. Amended by 2021 Tenn. Acts, ch. 558, s 3, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 422, s 2, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 401, s 5, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 401, Secs.s 6, s 7 eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021. Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019. Amended by 2019 Tenn. Acts, ch. 491, Secs.s 5, s 6 eff. 10/1/2019. Amended by 2019 Tenn. Acts, ch. 491, s 4, eff. 10/1/2019. Amended by 2019 Tenn. Acts, ch. 440, s 1, eff. 5/22/2019. Acts 1963, ch. 329, § 4; 1967, ch. 90, § 1; T.C.A., § 67-3052; Acts 1987, ch. 176, § 2; 1988, ch. 848, §§ 1, 2; 1990, ch. 1096, § 2; 1993, ch. 519, §§ 3, 5; 1994, ch. 968, § 2; 1995, ch. 237, § 2; 1998, ch. 747, § 1; 1998, ch. 1055, § 13; 2004, ch. 959, §§ 28, 68; 2005, ch. 311, § 2; 2005, ch. 441, § 2; 2007 , ch. 602, §§ 52, 169; 2008 , ch. 1106, § 15; 2009 , ch. 530, §§ 35, 63; 2011 , ch. 72, § 1; 2012 , ch. 849, § 2; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.
(a) The tax levied by a county under this part shall be distributed as follows: (1) One-half (1/2) of the proceeds shall be expended and distributed in the same manner as the county property tax for school purposes is expended and distributed; and (2) The other one-half (1/2) as follows: (A) Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct; (B) Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised; (C) However, a county and city or town may by contract provide for other distribution of the one-half (1/2) not allocated to school purposes; (3) Any out-of-state dealer making sales to a customer within this state shall report to the department information as prescribed by the commissioner, and as required under § 67-6-504(m) , that is sufficient for the commissioner to appropriately distribute revenue pursuant to subdivisions (a)(1) and (2); (4) Any county, city, town, incorporated area or special school district entitled to receive the proceeds described in subdivisions (a)(1) and (2) has the power and authority, by resolution of the governing body thereof, to pledge such proceeds to the punctual payment of principal of and interest on bonds, notes or other evidence of indebtedness issued for the purpose for which such proceeds are permitted to be spent pursuant to such subdivisions (a)(1) and (2); provided, that the pledge by a county of proceeds to which it is entitled under subdivision (a)(1) shall not be effective, unless approved by resolution of the county board of education.
(1) One-half (1/2) of the proceeds shall be expended and distributed in the same manner as the county property tax for school purposes is expended and distributed; and
(2) The other one-half (1/2) as follows: (A) Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct; (B) Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised; (C) However, a county and city or town may by contract provide for other distribution of the one-half (1/2) not allocated to school purposes;
(A) Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct;
(B) Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised;
(C) However, a county and city or town may by contract provide for other distribution of the one-half (1/2) not allocated to school purposes;
(3) Any out-of-state dealer making sales to a customer within this state shall report to the department information as prescribed by the commissioner, and as required under § 67-6-504(m) , that is sufficient for the commissioner to appropriately distribute revenue pursuant to subdivisions (a)(1) and (2);
(4) Any county, city, town, incorporated area or special school district entitled to receive the proceeds described in subdivisions (a)(1) and (2) has the power and authority, by resolution of the governing body thereof, to pledge such proceeds to the punctual payment of principal of and interest on bonds, notes or other evidence of indebtedness issued for the purpose for which such proceeds are permitted to be spent pursuant to such subdivisions (a)(1) and (2); provided, that the pledge by a county of proceeds to which it is entitled under subdivision (a)(1) shall not be effective, unless approved by resolution of the county board of education.
(b) (1) County trustees in counties having populations of seven hundred thousand (700,000) or more, according to the 1980 federal census or any subsequent federal census, shall not be entitled to receive compensation for receiving and distributing the taxes under subsection (a), notwithstanding § 8-11-110 or any other law to the contrary. (2) This subsection (b) shall have no effect, unless it is approved by a two-thirds (2/3) vote of the legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the legislative body and certified by such presiding officer to the secretary of state.
(1) County trustees in counties having populations of seven hundred thousand (700,000) or more, according to the 1980 federal census or any subsequent federal census, shall not be entitled to receive compensation for receiving and distributing the taxes under subsection (a), notwithstanding § 8-11-110 or any other law to the contrary.
(2) This subsection (b) shall have no effect, unless it is approved by a two-thirds (2/3) vote of the legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the legislative body and certified by such presiding officer to the secretary of state.
(c) (1) (A) Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to the events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. (B) (i) In addition to the allocations provided in subdivision (c)(1)(A), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of local tax revenue provided in this subdivision (c)(1)(B)(i) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise. (ii) In addition to the allocation provided in subdivision (c)(1)(B)(i), an amount must also be apportioned and distributed to the municipality equal to one-half (1/2) the amount of local tax revenue derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of local tax revenue pursuant to this subdivision (c)(1)(B)(ii) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (c)(1)(B)(ii) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (c)(1)(B)(ii). (C) In addition, if an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to two-thirds (2/3) of the amount of the allocation of local tax revenue under subdivision (a)(2) derived from the sale of admissions to all other events occurring at such indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the indoor sports facility, parking charges, and related services. Such amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. (D) For the purpose of this subsection (c), "municipality" means any incorporated city or county located in this state. (E) Notwithstanding the allocations provided for in subsection (a), in a municipality with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, with a motor sports facility less than one (1) mile in circumference, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and from all sales of food, drinks, merchandise, and parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services, sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility. (2) Any bonds issued relative to the construction of a sports facility for a sports franchise listed in subdivision (c)(1)(A) shall not be issued for a term longer than thirty (30) years from the date the first game is played by the professional sports franchise in a municipality, as defined in subdivision (c)(1).
(1) (A) Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to the events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. (B) (i) In addition to the allocations provided in subdivision (c)(1)(A), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of local tax revenue provided in this subdivision (c)(1)(B)(i) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise. (ii) In addition to the allocation provided in subdivision (c)(1)(B)(i), an amount must also be apportioned and distributed to the municipality equal to one-half (1/2) the amount of local tax revenue derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of local tax revenue pursuant to this subdivision (c)(1)(B)(ii) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (c)(1)(B)(ii) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (c)(1)(B)(ii). (C) In addition, if an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to two-thirds (2/3) of the amount of the allocation of local tax revenue under subdivision (a)(2) derived from the sale of admissions to all other events occurring at such indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the indoor sports facility, parking charges, and related services. Such amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. (D) For the purpose of this subsection (c), "municipality" means any incorporated city or county located in this state. (E) Notwithstanding the allocations provided for in subsection (a), in a municipality with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, with a motor sports facility less than one (1) mile in circumference, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and from all sales of food, drinks, merchandise, and parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services, sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility.
(A) Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to the events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
(B) (i) In addition to the allocations provided in subdivision (c)(1)(A), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of local tax revenue provided in this subdivision (c)(1)(B)(i) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise. (ii) In addition to the allocation provided in subdivision (c)(1)(B)(i), an amount must also be apportioned and distributed to the municipality equal to one-half (1/2) the amount of local tax revenue derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of local tax revenue pursuant to this subdivision (c)(1)(B)(ii) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (c)(1)(B)(ii) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (c)(1)(B)(ii).
(i) In addition to the allocations provided in subdivision (c)(1)(A), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. The allocation of local tax revenue provided in this subdivision (c)(1)(B)(i) must continue so long as a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns) holds a lease on the sports facility. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise.
(ii) In addition to the allocation provided in subdivision (c)(1)(B)(i), an amount must also be apportioned and distributed to the municipality equal to one-half (1/2) the amount of local tax revenue derived from all sales in a designated area not exceeding one hundred thirty (130) acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and is subject to the approval of the commissioner of finance and administration. Such amounts are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of local tax revenue pursuant to this subdivision (c)(1)(B)(ii) must continue for a period of thirty (30) years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality in accordance with title 7, chapter 67, or such other person as designated by the sports authority, or thirty-five (35) years from July 1, 2021, whichever is sooner; provided, however, that the time periods provided in this subdivision (c)(1)(B)(ii) are not affected by the prepayment or satisfaction of underwritten debt service prior to thirty (30) years after the issuance of the initial debt service as provided in this subdivision (c)(1)(B)(ii).
(C) In addition, if an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to two-thirds (2/3) of the amount of the allocation of local tax revenue under subdivision (a)(2) derived from the sale of admissions to all other events occurring at such indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the indoor sports facility, parking charges, and related services. Such amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67.
(D) For the purpose of this subsection (c), "municipality" means any incorporated city or county located in this state.
(E) Notwithstanding the allocations provided for in subsection (a), in a municipality with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, with a motor sports facility less than one (1) mile in circumference, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount must be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and from all sales of food, drinks, merchandise, and parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services, sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility.
(2) Any bonds issued relative to the construction of a sports facility for a sports franchise listed in subdivision (c)(1)(A) shall not be issued for a term longer than thirty (30) years from the date the first game is played by the professional sports franchise in a municipality, as defined in subdivision (c)(1).
(d) Notwithstanding the provisions of this section to the contrary, revenue derived from taxes imposed by this part shall be earmarked and allocated in accordance with title 7, chapter 88.
(e) If any dealer fails to provide the department with the information required under § 67-6-504(m) and the department is unable to determine the proper distribution of local sales tax under subsection (a), the department shall distribute the local sales tax as follows: (1) For taxes received by the department before July 1, 2021: (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total local tax collections in all counties under this section; (B) The amount received by the county under subdivision (e)(1)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality to total local tax collections in the county and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county to total local tax collections in the county; (2) For taxes received by the department on or after July 1, 2021: (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county from dealers with no location in this state that can be identified by situs over the total local tax collections in all counties from dealers with no location in this state that can be identified by situs; (B) The amount received by the county under subdivision (e)(2)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs; (3) A county and a municipality may, by contract, provide for an alternative distribution for the amount not distributed under subdivision (a)(1).
(1) For taxes received by the department before July 1, 2021: (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total local tax collections in all counties under this section; (B) The amount received by the county under subdivision (e)(1)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality to total local tax collections in the county and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county to total local tax collections in the county;
(A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total local tax collections in all counties under this section;
(B) The amount received by the county under subdivision (e)(1)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality to total local tax collections in the county and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county to total local tax collections in the county;
(2) For taxes received by the department on or after July 1, 2021: (A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county from dealers with no location in this state that can be identified by situs over the total local tax collections in all counties from dealers with no location in this state that can be identified by situs; (B) The amount received by the county under subdivision (e)(2)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs;
(A) The tax shall be distributed to the counties based on the ratio of local tax collections in the county from dealers with no location in this state that can be identified by situs over the total local tax collections in all counties from dealers with no location in this state that can be identified by situs;
(B) The amount received by the county under subdivision (e)(2)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs;
(3) A county and a municipality may, by contract, provide for an alternative distribution for the amount not distributed under subdivision (a)(1).
(f) Notwithstanding the allocations provided for in subsection (a), if a franchise for a minor league affiliate of a major league baseball team (American or National League) playing at the Class AA level or higher locates, as described in § 67-6-103(d)(1)(A)(iv) , in a municipality in this state and if the municipality constructs a new stadium for the franchise, then local sales tax must be apportioned and distributed to the municipality as provided in § 67-6-103(d)(1)(A)(iv) ; provided, however, that in such a case, the county and the city in which the stadium is located are authorized to agree by interlocal agreement for that portion of the local sales tax that would otherwise be allocated for school purposes under subdivision (a)(1) to continue to be so allocated and not apportioned and distributed as provided in § 67-6-103(d)(1)(A)(iv) .
Amended by 2022 Tenn. Acts, ch. 1069, s 4, eff. 5/25/2022.
Amended by 2021 Tenn. Acts, ch. 558, s 3, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 422, s 2, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 401, s 5, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 401, Secs.s 6, s 7 eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Amended by 2019 Tenn. Acts, ch. 491, Secs.s 5, s 6 eff. 10/1/2019.
Amended by 2019 Tenn. Acts, ch. 491, s 4, eff. 10/1/2019.
Amended by 2019 Tenn. Acts, ch. 440, s 1, eff. 5/22/2019.
Acts 1963, ch. 329, § 4; 1967, ch. 90, § 1; T.C.A., § 67-3052; Acts 1987, ch. 176, § 2; 1988, ch. 848, §§ 1, 2; 1990, ch. 1096, § 2; 1993, ch. 519, §§ 3, 5; 1994, ch. 968, § 2; 1995, ch. 237, § 2; 1998, ch. 747, § 1; 1998, ch. 1055, § 13; 2004, ch. 959, §§ 28, 68; 2005, ch. 311, § 2; 2005, ch. 441, § 2; 2007 , ch. 602, §§ 52, 169; 2008 , ch. 1106, § 15; 2009 , ch. 530, §§ 35, 63; 2011 , ch. 72, § 1; 2012 , ch. 849, § 2; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.
Tenn. Code Ann. § 67-6-510 — TN Code / Title 67 / Chapter 6 / Section 67-6-510
Computation on trade-ins
Status: in_force

(a) Where used articles are taken in trade, or in a series of trades, as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference, that is, the price of the new or used article sold, less the credit for the used article taken in trade. (b) (1) A motor vehicle dealer having previously titled and registered a motor vehicle in the dealership name for business use, and having paid the appropriate sales or use tax on such vehicle, shall be allowed a trade-in credit equal to the trade-in value of such vehicle against the purchase price of a new or used vehicle purchased or extracted from such dealer's inventory to be titled and registered as a replacement vehicle for business use, and the sales or use tax shall be paid on the net difference. (2) The trade-in value authorized by this subsection (b) shall be equal to the trade-in amount for the specific make and model as established by the NADA Official Used Car Guide, Southeastern Edition. (3) It is the legislative intent that a dealer may purchase a vehicle from the dealer's dealership's inventory and receive the same trade-in credit as if the dealer purchased the vehicle from the inventory of another dealer. Acts 1947, ch. 3, subsec. 6; mod. C. Supp. 1950, § 1248.62 (Williams, § 1328.28); T.C.A. (orig. ed.), § 67-3015; Acts 1995, ch. 245, § 1.
(a) Where used articles are taken in trade, or in a series of trades, as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference, that is, the price of the new or used article sold, less the credit for the used article taken in trade.
(b) (1) A motor vehicle dealer having previously titled and registered a motor vehicle in the dealership name for business use, and having paid the appropriate sales or use tax on such vehicle, shall be allowed a trade-in credit equal to the trade-in value of such vehicle against the purchase price of a new or used vehicle purchased or extracted from such dealer's inventory to be titled and registered as a replacement vehicle for business use, and the sales or use tax shall be paid on the net difference. (2) The trade-in value authorized by this subsection (b) shall be equal to the trade-in amount for the specific make and model as established by the NADA Official Used Car Guide, Southeastern Edition. (3) It is the legislative intent that a dealer may purchase a vehicle from the dealer's dealership's inventory and receive the same trade-in credit as if the dealer purchased the vehicle from the inventory of another dealer.
(1) A motor vehicle dealer having previously titled and registered a motor vehicle in the dealership name for business use, and having paid the appropriate sales or use tax on such vehicle, shall be allowed a trade-in credit equal to the trade-in value of such vehicle against the purchase price of a new or used vehicle purchased or extracted from such dealer's inventory to be titled and registered as a replacement vehicle for business use, and the sales or use tax shall be paid on the net difference.
(2) The trade-in value authorized by this subsection (b) shall be equal to the trade-in amount for the specific make and model as established by the NADA Official Used Car Guide, Southeastern Edition.
(3) It is the legislative intent that a dealer may purchase a vehicle from the dealer's dealership's inventory and receive the same trade-in credit as if the dealer purchased the vehicle from the inventory of another dealer.
Acts 1947, ch. 3, subsec. 6; mod. C. Supp. 1950, § 1248.62 (Williams, § 1328.28); T.C.A. (orig. ed.), § 67-3015; Acts 1995, ch. 245, § 1.
Tenn. Code Ann. § 67-5-209 — TN Code / Title 67 / Chapter 5 / Section 67-5-209
Private act hospital authorities
Status: in_force

In addition to all rights and powers granted to a private act hospital authority under title 7, chapter 57, part 6, such a private act hospital authority shall be exempt from the payment of any taxes or fees to the state or any subdivisions thereof, or to any officer or employee of the state or any subdivision thereof, except as hereinafter provided. This exemption does not include fees paid by private act hospital authorities as required by § 68-11-216 . All property of an authority residing within the boundaries of its creating or participating governing authorities or entities shall be exempt from all county and municipal taxes; provided, that the authority shall pay all county and municipal fees. An authority may agree to the payment of tax equivalents to the creating or participating governing authority or entity. Authorities shall be required to apply to the state board of equalization for claims for exemption of property residing outside the boundaries of their creating or participating governing authorities or entities. The claims for exemption shall be determined by the state board of equalization, following application in the manner required by § 67-5-212 , and exemptions shall be: (1) Limited to property of the authority which would be exempt if owned and operated by a charitable hospital under § 67-5-212 ; and (2) Granted in accordance with the same criteria used by the board of equalization in granting exemptions to property owned and operated by a charitable hospital under § 67-5-212 . Amended by 2013 Tenn. Acts, ch. 417,s 1, eff. 5/16/2013. Acts 2001, ch. 385, § 1.
In addition to all rights and powers granted to a private act hospital authority under title 7, chapter 57, part 6, such a private act hospital authority shall be exempt from the payment of any taxes or fees to the state or any subdivisions thereof, or to any officer or employee of the state or any subdivision thereof, except as hereinafter provided. This exemption does not include fees paid by private act hospital authorities as required by § 68-11-216 . All property of an authority residing within the boundaries of its creating or participating governing authorities or entities shall be exempt from all county and municipal taxes; provided, that the authority shall pay all county and municipal fees. An authority may agree to the payment of tax equivalents to the creating or participating governing authority or entity. Authorities shall be required to apply to the state board of equalization for claims for exemption of property residing outside the boundaries of their creating or participating governing authorities or entities. The claims for exemption shall be determined by the state board of equalization, following application in the manner required by § 67-5-212 , and exemptions shall be:
(1) Limited to property of the authority which would be exempt if owned and operated by a charitable hospital under § 67-5-212 ; and
(2) Granted in accordance with the same criteria used by the board of equalization in granting exemptions to property owned and operated by a charitable hospital under § 67-5-212 .
Amended by 2013 Tenn. Acts, ch. 417,s 1, eff. 5/16/2013.
Acts 2001, ch. 385, § 1.