Tenn. Code Ann. § 67-1-1501 — TN Code / Title 67 / Chapter 1 / Section 67-1-1501
Limitation on assessment and collection of taxes
Status: in_force

(a) Locally Collected Privilege Taxes. All state, county or municipal privilege taxes, including, but not limited to, business, litigation, real estate transfer and mortgage taxes collected by the state or by local officials for the benefit of cities, counties or the state, shall be barred, and any lien for such taxes shall be cancelled and extinguished, unless the liens are collected or suits for the collection shall have been instituted within six (6) years from January 1 of the year for which such taxes accrued. (b) State Taxes Requiring the Filing of Returns - Assessment. Notwithstanding subsection (a), the amount of any tax imposed under any title, in which the filing of a return is required by the state, shall be assessed within three (3) years from December 31 of the year in which the return was filed, and no levy or other proceeding to enforce the collection of such tax without assessment shall be made or begun after expiration of such period; provided, that: (1) In the case of a failure to file a return, the tax may be assessed or a levy or other proceeding to enforce the collection of such tax may be begun, with or without assessment, at any time; (2) In the case of a false or fraudulent return with the intent to evade the tax, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be begun, with or without assessment, at any time; (3) In the case of a redetermination of net income by the internal revenue service resulting in a taxpayer owing the state additional franchise or excise tax, the statutory period for the assessment of additional franchise or excise tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revision; (4) In the case of a revision of any federal estate tax resulting from an examination by the internal revenue service that results in an estate owing the state additional estate or inheritance tax, the statutory period for the assessment of additional estate or inheritance tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revisions; and (5) In the case of an agreement in writing entered into by the commissioner or the commissioner's delegate and the taxpayer within the time prescribed in this subsection (b) for assessment, consenting to an assessment after such time, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be made or begun with or without assessment at any time within the agreed upon period. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon period. (c) State Taxes Requiring the Filing of Returns - Collection. The amount of any tax assessed as prescribed by subsection (b) may be collected within the period of limitation provided in § 67-1-1429 . (d) Nonapplicable to ad valorem taxes. Nothing in this section shall apply to the collection of ad valorem taxes assessed against real or personal property by any county or municipality in this state. (e) For purposes of this section, the term "assessed" or "assessment" shall be deemed to include any notice of proposed assessment issued by the commissioner or any other authorized person under § 67-1-1438 , and the time periods set forth in subsection (b) are met if the commissioner issues a notice of proposed assessment within the period of time prescribed for an assessment. Amended by 2014 Tenn. Acts, ch. 854, s 8, eff. 1/1/2015. Acts 1885, ch. 24, § 1; Shan., § 821; mod. Code 1932, § 1494; Acts 1949, ch. 229, § 1; impl. am. Acts 1949, ch. 236, § 1; C. Supp. 1950, § 1494; Acts 1972, ch. 492, § 1; 1973, ch. 368, § 3; 1974, ch. 484, § 2; T.C.A. (orig. ed.), § 67-1323; Acts 1985, ch. 373, § 1; 1988, ch. 526, § 1; 1999, ch. 162, § 3; 1999, ch. 406, § 7; 2008 , ch. 1106, § 33.
(a) Locally Collected Privilege Taxes. All state, county or municipal privilege taxes, including, but not limited to, business, litigation, real estate transfer and mortgage taxes collected by the state or by local officials for the benefit of cities, counties or the state, shall be barred, and any lien for such taxes shall be cancelled and extinguished, unless the liens are collected or suits for the collection shall have been instituted within six (6) years from January 1 of the year for which such taxes accrued.
(b) State Taxes Requiring the Filing of Returns - Assessment. Notwithstanding subsection (a), the amount of any tax imposed under any title, in which the filing of a return is required by the state, shall be assessed within three (3) years from December 31 of the year in which the return was filed, and no levy or other proceeding to enforce the collection of such tax without assessment shall be made or begun after expiration of such period; provided, that: (1) In the case of a failure to file a return, the tax may be assessed or a levy or other proceeding to enforce the collection of such tax may be begun, with or without assessment, at any time; (2) In the case of a false or fraudulent return with the intent to evade the tax, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be begun, with or without assessment, at any time; (3) In the case of a redetermination of net income by the internal revenue service resulting in a taxpayer owing the state additional franchise or excise tax, the statutory period for the assessment of additional franchise or excise tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revision; (4) In the case of a revision of any federal estate tax resulting from an examination by the internal revenue service that results in an estate owing the state additional estate or inheritance tax, the statutory period for the assessment of additional estate or inheritance tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revisions; and (5) In the case of an agreement in writing entered into by the commissioner or the commissioner's delegate and the taxpayer within the time prescribed in this subsection (b) for assessment, consenting to an assessment after such time, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be made or begun with or without assessment at any time within the agreed upon period. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon period.
(1) In the case of a failure to file a return, the tax may be assessed or a levy or other proceeding to enforce the collection of such tax may be begun, with or without assessment, at any time;
(2) In the case of a false or fraudulent return with the intent to evade the tax, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be begun, with or without assessment, at any time;
(3) In the case of a redetermination of net income by the internal revenue service resulting in a taxpayer owing the state additional franchise or excise tax, the statutory period for the assessment of additional franchise or excise tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revision;
(4) In the case of a revision of any federal estate tax resulting from an examination by the internal revenue service that results in an estate owing the state additional estate or inheritance tax, the statutory period for the assessment of additional estate or inheritance tax resulting from such revision shall not expire prior to the expiration of two (2) years from the date the commissioner or the commissioner's delegate is notified in writing by the taxpayer of such revisions; and
(5) In the case of an agreement in writing entered into by the commissioner or the commissioner's delegate and the taxpayer within the time prescribed in this subsection (b) for assessment, consenting to an assessment after such time, the tax may be assessed or a levy or other proceeding to enforce collection of such tax may be made or begun with or without assessment at any time within the agreed upon period. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon period.
(c) State Taxes Requiring the Filing of Returns - Collection. The amount of any tax assessed as prescribed by subsection (b) may be collected within the period of limitation provided in § 67-1-1429 .
(d) Nonapplicable to ad valorem taxes. Nothing in this section shall apply to the collection of ad valorem taxes assessed against real or personal property by any county or municipality in this state.
(e) For purposes of this section, the term "assessed" or "assessment" shall be deemed to include any notice of proposed assessment issued by the commissioner or any other authorized person under § 67-1-1438 , and the time periods set forth in subsection (b) are met if the commissioner issues a notice of proposed assessment within the period of time prescribed for an assessment.
Amended by 2014 Tenn. Acts, ch. 854, s 8, eff. 1/1/2015.
Acts 1885, ch. 24, § 1; Shan., § 821; mod. Code 1932, § 1494; Acts 1949, ch. 229, § 1; impl. am. Acts 1949, ch. 236, § 1; C. Supp. 1950, § 1494; Acts 1972, ch. 492, § 1; 1973, ch. 368, § 3; 1974, ch. 484, § 2; T.C.A. (orig. ed.), § 67-1323; Acts 1985, ch. 373, § 1; 1988, ch. 526, § 1; 1999, ch. 162, § 3; 1999, ch. 406, § 7; 2008 , ch. 1106, § 33.
Tenn. Code Ann. § 67-6-337 — TN Code / Title 67 / Chapter 6 / Section 67-6-337
Sales paid for with food stamps
Status: in_force

There are exempt from the tax imposed by this chapter all sales for which the consideration given is food stamps, food coupons or for which an electronic debit card or other electronic benefits transfer system is used or that utilizes such other means as the department of human services may approve, and which cards, systems or other means may be issued, authorized or used by the department or the federal government, their agents or contractors to assist persons, on a means-tested basis, to purchase eligible food and food ingredients, prepared food, candy and dietary supplements in accordance with the laws and regulations issued by the federal government pursuant to the Food Stamp Act of 1964 ( 7 U.S.C. § 2011 et seq.), or the department pursuant to title 71, chapter 5, part 3, or in accordance with any other current enabling legislation or subsequent enabling legislation or regulations authorizing issuance of food coupons, food stamps or the use of any electronics benefits transfer process, including, but not limited to, the use of any electronic debit card system or other system that the department may approve. If any other consideration other than that provided for in this section is used in any sale, that portion of the sale shall be fully taxable. Acts 1986, ch. 876, § 1; 1996, ch. 950, § 19; 2004, ch. 959, § 17; 2005, ch. 311, § 2; 2007, ch. 602, §§ 52, 96.
There are exempt from the tax imposed by this chapter all sales for which the consideration given is food stamps, food coupons or for which an electronic debit card or other electronic benefits transfer system is used or that utilizes such other means as the department of human services may approve, and which cards, systems or other means may be issued, authorized or used by the department or the federal government, their agents or contractors to assist persons, on a means-tested basis, to purchase eligible food and food ingredients, prepared food, candy and dietary supplements in accordance with the laws and regulations issued by the federal government pursuant to the Food Stamp Act of 1964 ( 7 U.S.C. § 2011 et seq.), or the department pursuant to title 71, chapter 5, part 3, or in accordance with any other current enabling legislation or subsequent enabling legislation or regulations authorizing issuance of food coupons, food stamps or the use of any electronics benefits transfer process, including, but not limited to, the use of any electronic debit card system or other system that the department may approve. If any other consideration other than that provided for in this section is used in any sale, that portion of the sale shall be fully taxable.
Acts 1986, ch. 876, § 1; 1996, ch. 950, § 19; 2004, ch. 959, § 17; 2005, ch. 311, § 2; 2007, ch. 602, §§ 52, 96.
Tenn. Code Ann. § 67-3-1119 — TN Code / Title 67 / Chapter 3 / Section 67-3-1119
Nonassignable compressed natural gas dealer permit
Status: in_force

(a) A dealer shall file an application with the commissioner for a compressed natural gas dealer permit, which is not assignable. (b) An application for a permit shall be filed on a form provided by the commissioner. (c) The permit shall be posted in a conspicuous place or kept available for inspection at the principal place of business of the permittee. A dealer permittee shall reproduce the permit and display it in a conspicuous place at each additional place of business from which natural gas is sold, delivered or used in motor vehicles. (d) Application for a permit shall be accompanied by a bond, payable to this state, as provided in part 6 of this chapter. (e) A permit is permanent and valid as long as the permittee furnishes timely reports and remits the taxes when due, or until surrendered by the holder or cancelled by the commissioner. Acts 2012, ch. 822, § 2.
(a) A dealer shall file an application with the commissioner for a compressed natural gas dealer permit, which is not assignable.
(b) An application for a permit shall be filed on a form provided by the commissioner.
(c) The permit shall be posted in a conspicuous place or kept available for inspection at the principal place of business of the permittee. A dealer permittee shall reproduce the permit and display it in a conspicuous place at each additional place of business from which natural gas is sold, delivered or used in motor vehicles.
(d) Application for a permit shall be accompanied by a bond, payable to this state, as provided in part 6 of this chapter.
(e) A permit is permanent and valid as long as the permittee furnishes timely reports and remits the taxes when due, or until surrendered by the holder or cancelled by the commissioner.
Acts 2012, ch. 822, § 2.
Tenn. Code Ann. § 67-4-1108 — TN Code / Title 67 / Chapter 4 / Section 67-4-1108
Distribution of revenue
Status: in_force

All revenues collected from each taxpayer under this part shall be allocated in the following manner: (1) Two percent (2%) of the tax collected from each taxpayer shall be retained by the department and credited to its current service revenue to cover the expenses of administration and collection of the tax and penalties and interest on the tax; and (2) The remainder shall be remitted to the county and municipality designated on the return filed together with the tax payment, pursuant to § 67-4-1106 , or, if the taxpayer fails to follow this part, the county or municipality that would have been so designated had the taxpayer acted according to this part. Acts 1981, ch. 206, § 7; T.C.A., § 67-6206.
All revenues collected from each taxpayer under this part shall be allocated in the following manner:
(1) Two percent (2%) of the tax collected from each taxpayer shall be retained by the department and credited to its current service revenue to cover the expenses of administration and collection of the tax and penalties and interest on the tax; and
(2) The remainder shall be remitted to the county and municipality designated on the return filed together with the tax payment, pursuant to § 67-4-1106 , or, if the taxpayer fails to follow this part, the county or municipality that would have been so designated had the taxpayer acted according to this part.
Acts 1981, ch. 206, § 7; T.C.A., § 67-6206.
Tenn. Code Ann. § 67-1-1440 — TN Code / Title 67 / Chapter 1 / Section 67-1-1440
Crimes against revenue officers
Status: in_force

(a) It is a Class E felony for any person to assault any officer or employee of the department while performing duties as such officer or employee, or to assault any such officer or employee or a member of such officer's or employee's immediate family at any other time, if it is shown that such assault was by reason of the fact that such officer or employee had at some time performed an official duty as an officer or employee of the department with respect to any person. Any violation of this subsection (a) committed by any person with a pistol or other deadly weapon is a Class C felony. Each act done in violation of this subsection (a) is a separate offense. (b) It is a Class E felony for any person to corruptly obstruct, delay, hinder, impede or intimidate, or to attempt to corruptly obstruct, delay, hinder, impede or intimidate, any officer or employee of the department from performing the officer's or employee's duty while acting in an official capacity under this part or any other laws of this state. It is also a Class E felony for any person in any other way to corruptly obstruct, delay, hinder or impede the administration of this part or any other revenue laws of this state. Each act done in violation of this subsection (b) is a separate offense. (c) It is a Class C misdemeanor for any person to rescue or cause to be rescued, either forcibly or by any unlawful manner, any property after it shall have been seized under this part or any other revenue laws of this state, or to attempt or endeavor so to do. Each act done in violation of this subsection (c) is a separate offense. (d) It is a Class E felony for any person to delay, hamper, hinder, impede, obstruct or thwart the state of Tennessee in the collection of any of its lawful revenue, or to deprive the state of the realization of such revenue at the time it is lawfully entitled thereto by any artifice, design, false weight or measure, stratagem, or by the falsification of any record, report or return required by law. Each act done in violation of this subsection (d) is a separate offense. (e) It is a Class E felony for any two (2) persons to conspire to delay, hamper, hinder, impede, obstruct or thwart the state of Tennessee in the collection of any of its lawful revenue, or to deprive the state of the realization of such revenue at the time it is lawfully entitled thereto by any artifice, design, false weight or measure, stratagem, or by the falsification of any record, report or return required by law. Each act done in violation of this subsection (e) is a separate offense. (f) It is a Class E felony for any person to falsely, corruptly, or knowingly misrepresent any material statement of fact while testifying under oath as a witness at any hearing held by the commissioner or the commissioner's delegate while acting in an official capacity under this part or any other laws of this state. Each act done in violation of this subsection (f) is a separate offense. (g) It is a Class E felony for any person willfully to attempt in any manner to evade or defeat any tax due the state of Tennessee; provided, that if use tax of less than five hundred dollars ($500) is involved, the offense is a Class A misdemeanor. Each act done in violation of this subsection (g) is a separate offense. Acts 1973, ch. 368, § 4; T.C.A., § 67-6045(a)-(f); Acts 1984, ch. 734, § 2; 1989, ch. 591, §§ 90-94, 113; 1999, ch. 406, § 6; 2000, ch. 982, § 44.
(a) It is a Class E felony for any person to assault any officer or employee of the department while performing duties as such officer or employee, or to assault any such officer or employee or a member of such officer's or employee's immediate family at any other time, if it is shown that such assault was by reason of the fact that such officer or employee had at some time performed an official duty as an officer or employee of the department with respect to any person. Any violation of this subsection (a) committed by any person with a pistol or other deadly weapon is a Class C felony. Each act done in violation of this subsection (a) is a separate offense.
(b) It is a Class E felony for any person to corruptly obstruct, delay, hinder, impede or intimidate, or to attempt to corruptly obstruct, delay, hinder, impede or intimidate, any officer or employee of the department from performing the officer's or employee's duty while acting in an official capacity under this part or any other laws of this state. It is also a Class E felony for any person in any other way to corruptly obstruct, delay, hinder or impede the administration of this part or any other revenue laws of this state. Each act done in violation of this subsection (b) is a separate offense.
(c) It is a Class C misdemeanor for any person to rescue or cause to be rescued, either forcibly or by any unlawful manner, any property after it shall have been seized under this part or any other revenue laws of this state, or to attempt or endeavor so to do. Each act done in violation of this subsection (c) is a separate offense.
(d) It is a Class E felony for any person to delay, hamper, hinder, impede, obstruct or thwart the state of Tennessee in the collection of any of its lawful revenue, or to deprive the state of the realization of such revenue at the time it is lawfully entitled thereto by any artifice, design, false weight or measure, stratagem, or by the falsification of any record, report or return required by law. Each act done in violation of this subsection (d) is a separate offense.
(e) It is a Class E felony for any two (2) persons to conspire to delay, hamper, hinder, impede, obstruct or thwart the state of Tennessee in the collection of any of its lawful revenue, or to deprive the state of the realization of such revenue at the time it is lawfully entitled thereto by any artifice, design, false weight or measure, stratagem, or by the falsification of any record, report or return required by law. Each act done in violation of this subsection (e) is a separate offense.
(f) It is a Class E felony for any person to falsely, corruptly, or knowingly misrepresent any material statement of fact while testifying under oath as a witness at any hearing held by the commissioner or the commissioner's delegate while acting in an official capacity under this part or any other laws of this state. Each act done in violation of this subsection (f) is a separate offense.
(g) It is a Class E felony for any person willfully to attempt in any manner to evade or defeat any tax due the state of Tennessee; provided, that if use tax of less than five hundred dollars ($500) is involved, the offense is a Class A misdemeanor. Each act done in violation of this subsection (g) is a separate offense.
Acts 1973, ch. 368, § 4; T.C.A., § 67-6045(a)-(f); Acts 1984, ch. 734, § 2; 1989, ch. 591, §§ 90-94, 113; 1999, ch. 406, § 6; 2000, ch. 982, § 44.
Tenn. Code Ann. § 67-1-1204 — TN Code / Title 67 / Chapter 1 / Section 67-1-1204
Levy on real estate
Status: in_force

If the officer cannot find personal property to satisfy the distress warrant, the officer may levy the distress warrant upon any real estate in the officer's county belonging to the taxpayer. If levying on land, the distress warrant, together with the officers' return on the distress warrant, shall be returned to the circuit court of the county in which the land lies, and the land shall be condemned and sold under the orders of the circuit court in the same manner as in the case of the levy on land of an execution issued by a general sessions court. Acts 1941, ch. 36, § 3; C. Supp. 1950, § 1613.8 (Williams, § 1613.13); impl. am. Acts 1979, ch. 68, § 3; T.C.A. (orig. ed.), § 67-2204.
If the officer cannot find personal property to satisfy the distress warrant, the officer may levy the distress warrant upon any real estate in the officer's county belonging to the taxpayer. If levying on land, the distress warrant, together with the officers' return on the distress warrant, shall be returned to the circuit court of the county in which the land lies, and the land shall be condemned and sold under the orders of the circuit court in the same manner as in the case of the levy on land of an execution issued by a general sessions court.
Acts 1941, ch. 36, § 3; C. Supp. 1950, § 1613.8 (Williams, § 1613.13); impl. am. Acts 1979, ch. 68, § 3; T.C.A. (orig. ed.), § 67-2204.
Tenn. Code Ann. § 67-6-216 — TN Code / Title 67 / Chapter 6 / Section 67-6-216
Nonmaterial costs of manufactured homes
Status: in_force

(a) Notwithstanding any other provisions of this chapter to the contrary, state tax equal to one-half (1/2) the rate of tax provided for in § 67-6-202 is levied on the gross receipts or gross proceeds from the retail sale of a manufactured home, including any accessories, parts, furniture, appliances, delivery fees, installation fees, and other additional or incidental items or services that are part of the sale of the manufactured home, whether or not separately billed. (b) As used in this section, "manufactured home" means a structure as defined in § 68-126-202 . (c) The tax levied by this section shall apply whether or not the manufactured home is installed as an improvement to the realty. Acts 1986, ch. 733, § 1; 1997 , ch. 194, §§ 1, 2.
(a) Notwithstanding any other provisions of this chapter to the contrary, state tax equal to one-half (1/2) the rate of tax provided for in § 67-6-202 is levied on the gross receipts or gross proceeds from the retail sale of a manufactured home, including any accessories, parts, furniture, appliances, delivery fees, installation fees, and other additional or incidental items or services that are part of the sale of the manufactured home, whether or not separately billed.
(b) As used in this section, "manufactured home" means a structure as defined in § 68-126-202 .
(c) The tax levied by this section shall apply whether or not the manufactured home is installed as an improvement to the realty.
Acts 1986, ch. 733, § 1; 1997 , ch. 194, §§ 1, 2.
Tenn. Code Ann. § 67-1-1708 — TN Code / Title 67 / Chapter 1 / Section 67-1-1708
Manner of disclosure - Legal effect
Status: in_force

(a) Requests for the inspection or disclosure of a return or tax information and such inspection or disclosure shall be made in such manner and at such time and place as shall be prescribed by the commissioner. (b) A reproduction or certified reproduction of a return shall, upon written request, be furnished to any person to whom disclosure or inspection of such return is authorized by law. A reasonable fee may be prescribed by the commissioner for furnishing such reproduction or certified reproduction. (c) Tax information disclosed to any person under the provisions of law may be provided in the form of written documents, reproductions of such documents, films or photo impressions, or electronically produced tapes, discs or records, or by any other mode or means which the commissioner determines is necessary or appropriate. A reasonable fee may be prescribed by the commissioner for furnishing such tax information. (d) Any reproduction of any return, document or other material made in accordance with this section shall have the same legal status as the original, and any such reproduction shall, if properly authenticated, be admissible in evidence in any judicial or administrative proceeding as if it were the original, whether or not the original is in existence. Acts 1977, ch. 152, § 1; T.C.A., § 67-138.
(a) Requests for the inspection or disclosure of a return or tax information and such inspection or disclosure shall be made in such manner and at such time and place as shall be prescribed by the commissioner.
(b) A reproduction or certified reproduction of a return shall, upon written request, be furnished to any person to whom disclosure or inspection of such return is authorized by law. A reasonable fee may be prescribed by the commissioner for furnishing such reproduction or certified reproduction.
(c) Tax information disclosed to any person under the provisions of law may be provided in the form of written documents, reproductions of such documents, films or photo impressions, or electronically produced tapes, discs or records, or by any other mode or means which the commissioner determines is necessary or appropriate. A reasonable fee may be prescribed by the commissioner for furnishing such tax information.
(d) Any reproduction of any return, document or other material made in accordance with this section shall have the same legal status as the original, and any such reproduction shall, if properly authenticated, be admissible in evidence in any judicial or administrative proceeding as if it were the original, whether or not the original is in existence.
Acts 1977, ch. 152, § 1; T.C.A., § 67-138.
Tenn. Code Ann. § 67-4-1702 — TN Code / Title 67 / Chapter 4 / Section 67-4-1702
Occupations subject to tax
Status: in_force

There is levied a tax on the privilege of engaging in the following vocations, professions, businesses, or occupations: (1) Persons registered as lobbyists pursuant to § 3-6-302 ; (2) Persons licensed or registered under title 48, chapter 1 as: (A) Agents; (B) Broker-dealers; and (C) Investment advisers; and (3) Persons licensed as attorneys by the supreme court of Tennessee. Amended by 2022 Tenn. Acts, ch. 1083, s 1, eff. 5/27/2022. Amended by 2019 Tenn. Acts, ch. 478, s 1, eff. 5/24/2019. Amended by 2014 Tenn. Acts, ch. 760, s 3, eff. 6/1/2016. Amended by 2014 Tenn. Acts, ch. 760, Secs.s 1, s 1 eff. 4/24/2014. Acts 1992, ch. 529, § 8; 1996, ch. 999, § 2; 2001, ch. 342, §§ 2, 3; 2009 , ch. 530, § 64.
There is levied a tax on the privilege of engaging in the following vocations, professions, businesses, or occupations:
(1) Persons registered as lobbyists pursuant to § 3-6-302 ;
(2) Persons licensed or registered under title 48, chapter 1 as: (A) Agents; (B) Broker-dealers; and (C) Investment advisers; and
(A) Agents;
(B) Broker-dealers; and
(C) Investment advisers; and
(3) Persons licensed as attorneys by the supreme court of Tennessee.
Amended by 2022 Tenn. Acts, ch. 1083, s 1, eff. 5/27/2022.
Amended by 2019 Tenn. Acts, ch. 478, s 1, eff. 5/24/2019.
Amended by 2014 Tenn. Acts, ch. 760, s 3, eff. 6/1/2016.
Amended by 2014 Tenn. Acts, ch. 760, Secs.s 1, s 1 eff. 4/24/2014.
Acts 1992, ch. 529, § 8; 1996, ch. 999, § 2; 2001, ch. 342, §§ 2, 3; 2009 , ch. 530, § 64.
Tenn. Code Ann. § 67-1-1617 — TN Code / Title 67 / Chapter 1 / Section 67-1-1617
Action on collector's bond
Status: in_force

(a) A motion or suit lies in favor of the state, county, or municipality against the trustee and sureties on the trustee's official bonds for any moneys, in the trustee's hands officially, not paid over or accounted for according to law or for failure to collect. (b) No surety on the bond of any trustee or other officer shall be liable for any penalty or attorney's fees until after demand has been made on the surety or sureties, and the surety or sureties have failed or refused to perform the duties required by law of the surety's or sureties' principal, or have failed or refused to pay over the sums of money due from such trustee or other officer. (c) Where a judgment has been obtained against any collector of revenue or other such officer, either alone or with a part of such collector's or officer's sureties, a similar motion may be made against the sureties against whom no judgment has been obtained, whether the suretyship appears in the same or another bond. (d) The person moved against shall have five (5) days' notice of the motion; provided, that this applies only to cumulative bonds, or where two (2) or more bonds have been given to secure the same object, and only to bonds already executed. Acts 1875, ch. 86, §§ 1, 2; 1907, ch. 602, § 71; Shan., §§ 928a1, 928a2, 965, 966; mod. Code 1932, §§ 1635, 1636, 1674, 1675; Acts 1933, ch. 95, § 1; C. Supp. 1950, § 1635; T.C.A. (orig. ed.), §§ 67-1615, 67-1616, 67-1622, 67-1623.
(a) A motion or suit lies in favor of the state, county, or municipality against the trustee and sureties on the trustee's official bonds for any moneys, in the trustee's hands officially, not paid over or accounted for according to law or for failure to collect.
(b) No surety on the bond of any trustee or other officer shall be liable for any penalty or attorney's fees until after demand has been made on the surety or sureties, and the surety or sureties have failed or refused to perform the duties required by law of the surety's or sureties' principal, or have failed or refused to pay over the sums of money due from such trustee or other officer.
(c) Where a judgment has been obtained against any collector of revenue or other such officer, either alone or with a part of such collector's or officer's sureties, a similar motion may be made against the sureties against whom no judgment has been obtained, whether the suretyship appears in the same or another bond.
(d) The person moved against shall have five (5) days' notice of the motion; provided, that this applies only to cumulative bonds, or where two (2) or more bonds have been given to secure the same object, and only to bonds already executed.
Acts 1875, ch. 86, §§ 1, 2; 1907, ch. 602, § 71; Shan., §§ 928a1, 928a2, 965, 966; mod. Code 1932, §§ 1635, 1636, 1674, 1675; Acts 1933, ch. 95, § 1; C. Supp. 1950, § 1635; T.C.A. (orig. ed.), §§ 67-1615, 67-1616, 67-1622, 67-1623.
Tenn. Code Ann. § 67-1-109 — TN Code / Title 67 / Chapter 1 / Section 67-1-109
Revenue and letter rulings
Status: in_force

(a) The commissioner has the power to issue revenue and letter rulings, at the commissioner's discretion. (b) Revenue rulings shall be statements regarding the substantive application of law and statements of procedure that affect the rights and duties of taxpayers and other members of the public. Revenue rulings shall be advisory in nature and shall not be binding upon the department. (c) (1) Letter rulings shall interpret and apply the tax law to a specific set of existing facts furnished by a particular taxpayer. These rulings shall be binding upon the department and are applicable only to the individual taxpayer being addressed. (2) Letter rulings can be revoked or modified by the commissioner at any time. Such revocation or modification shall be effective retroactively, unless the following conditions are met, in which case the revocation shall be prospective only: (A) The taxpayer must not have misstated or omitted material facts involved in the transaction; (B) Facts that develop later must not be materially different from the facts upon which the ruling was based; (C) The applicable law must not have been changed or amended; (D) The ruling must have been issued originally with respect to a prospective or proposed transaction; and (E) The taxpayer directly involved must have acted in good faith in relying upon the ruling, and a retroactive revocation of the ruling must inure to the taxpayer's detriment. (d) When prompt consideration of an issue is needed, a party can request an expedited letter or revenue ruling by expressly requesting an expedited ruling and by submitting the fee required to receive an expedited ruling, as such fee is established by the commissioner. When an expedited letter or revenue ruling is requested as provided in this subsection (d), the commissioner shall either issue a ruling within sixty (60) days of the date on which the request for an expedited ruling was submitted or deny the request and return the fee to the requesting party within seven (7) days of the date on which the request was submitted. (e) Requests for revenue and letter rulings shall be submitted in the form and manner prescribed by regulations issued by the commissioner. (f) A reasonable fee may be set and prescribed by the commissioner for issuing revenue and letter rulings. The fee shall not exceed ten thousand dollars ($10,000) for expedited revenue or letter rulings requested pursuant to subsection (d) and shall not exceed five hundred dollars ($500) for all other revenue and letter rulings. Acts 1988, ch. 562, § 1; 2011, ch. 449, § 2.
(a) The commissioner has the power to issue revenue and letter rulings, at the commissioner's discretion.
(b) Revenue rulings shall be statements regarding the substantive application of law and statements of procedure that affect the rights and duties of taxpayers and other members of the public. Revenue rulings shall be advisory in nature and shall not be binding upon the department.
(c) (1) Letter rulings shall interpret and apply the tax law to a specific set of existing facts furnished by a particular taxpayer. These rulings shall be binding upon the department and are applicable only to the individual taxpayer being addressed. (2) Letter rulings can be revoked or modified by the commissioner at any time. Such revocation or modification shall be effective retroactively, unless the following conditions are met, in which case the revocation shall be prospective only: (A) The taxpayer must not have misstated or omitted material facts involved in the transaction; (B) Facts that develop later must not be materially different from the facts upon which the ruling was based; (C) The applicable law must not have been changed or amended; (D) The ruling must have been issued originally with respect to a prospective or proposed transaction; and (E) The taxpayer directly involved must have acted in good faith in relying upon the ruling, and a retroactive revocation of the ruling must inure to the taxpayer's detriment.
(1) Letter rulings shall interpret and apply the tax law to a specific set of existing facts furnished by a particular taxpayer. These rulings shall be binding upon the department and are applicable only to the individual taxpayer being addressed.
(2) Letter rulings can be revoked or modified by the commissioner at any time. Such revocation or modification shall be effective retroactively, unless the following conditions are met, in which case the revocation shall be prospective only: (A) The taxpayer must not have misstated or omitted material facts involved in the transaction; (B) Facts that develop later must not be materially different from the facts upon which the ruling was based; (C) The applicable law must not have been changed or amended; (D) The ruling must have been issued originally with respect to a prospective or proposed transaction; and (E) The taxpayer directly involved must have acted in good faith in relying upon the ruling, and a retroactive revocation of the ruling must inure to the taxpayer's detriment.
(A) The taxpayer must not have misstated or omitted material facts involved in the transaction;
(B) Facts that develop later must not be materially different from the facts upon which the ruling was based;
(C) The applicable law must not have been changed or amended;
(D) The ruling must have been issued originally with respect to a prospective or proposed transaction; and
(E) The taxpayer directly involved must have acted in good faith in relying upon the ruling, and a retroactive revocation of the ruling must inure to the taxpayer's detriment.
(d) When prompt consideration of an issue is needed, a party can request an expedited letter or revenue ruling by expressly requesting an expedited ruling and by submitting the fee required to receive an expedited ruling, as such fee is established by the commissioner. When an expedited letter or revenue ruling is requested as provided in this subsection (d), the commissioner shall either issue a ruling within sixty (60) days of the date on which the request for an expedited ruling was submitted or deny the request and return the fee to the requesting party within seven (7) days of the date on which the request was submitted.
(e) Requests for revenue and letter rulings shall be submitted in the form and manner prescribed by regulations issued by the commissioner.
(f) A reasonable fee may be set and prescribed by the commissioner for issuing revenue and letter rulings. The fee shall not exceed ten thousand dollars ($10,000) for expedited revenue or letter rulings requested pursuant to subsection (d) and shall not exceed five hundred dollars ($500) for all other revenue and letter rulings.
Acts 1988, ch. 562, § 1; 2011, ch. 449, § 2.
Tenn. Code Ann. § 67-4-203 — TN Code / Title 67 / Chapter 4 / Section 67-4-203
Administration by commissioner
Status: in_force

(a) (1) The authority to administer parts 2-6 of this chapter and the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and the authority to collect the taxes thereby imposed, is vested in the commissioner of revenue under this part. (2) Any reference in this part to the commissioner shall be deemed a reference to the commissioner of revenue. (b) The commissioner is authorized to prescribe all rules necessary for the administration of parts 2-6 of this chapter, and for the administration of the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and for the collection of the taxes thereby imposed. Acts 1937, ch. 108, art. 3, § 1; C. Supp. 1950, § 1248.4 (Williams, § 1248.137); impl. am. Acts 1959, ch. 9, § 14; Acts 1978, ch. 839, §§ 10, 11; T.C.A. (orig. ed.), §§ 67-4301, 67-4302.
(a) (1) The authority to administer parts 2-6 of this chapter and the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and the authority to collect the taxes thereby imposed, is vested in the commissioner of revenue under this part. (2) Any reference in this part to the commissioner shall be deemed a reference to the commissioner of revenue.
(1) The authority to administer parts 2-6 of this chapter and the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and the authority to collect the taxes thereby imposed, is vested in the commissioner of revenue under this part.
(2) Any reference in this part to the commissioner shall be deemed a reference to the commissioner of revenue.
(b) The commissioner is authorized to prescribe all rules necessary for the administration of parts 2-6 of this chapter, and for the administration of the various laws of this state imposing taxes upon the privilege of litigation in the various courts of this state, and for the collection of the taxes thereby imposed.
Acts 1937, ch. 108, art. 3, § 1; C. Supp. 1950, § 1248.4 (Williams, § 1248.137); impl. am. Acts 1959, ch. 9, § 14; Acts 1978, ch. 839, §§ 10, 11; T.C.A. (orig. ed.), §§ 67-4301, 67-4302.
Tenn. Code Ann. § 67-5-1505 — TN Code / Title 67 / Chapter 5 / Section 67-5-1505
Hearing examiners
Status: in_force

(a) As used in this part, "hearing examiner" includes an administrative judge serving by appointment of the state board of equalization or an administrative judge serving on behalf of the board under appointment by the secretary of state. (b) The state board of equalization may appoint members of the staff of the division of property assessments or such other persons as it may employ, to serve in the capacity of hearing examiners to conduct preliminary hearings and to make investigations for the board regarding complaints and appeals from assessments and classifications, or regarding any other matter for which the board has responsibility by law. (c) The hearing examiners shall prepare proposed findings of fact and conclusions and recommend the same to the board. (d) Upon the evidence presented before the hearing examiner in a preliminary hearing or upon facts gained in the hearing examiner's investigation of any matter, the hearing examiner shall prepare proposed findings of fact and conclusions for the state board and shall notify each property owner who may be affected by the hearing examiner's recommendation. (e) Notwithstanding a contrary provision of law, and unless a party to the appeal objects in writing, the administrative judge or hearing examiner may render a proposed decision that is limited to words or figures, or both, reflecting conclusions as to the proper classification or valuation of the subject property. (f) The hearing examiner shall receive and consider all admissible evidence, as defined in § 4-5-313 , presented in a hearing and shall conduct the hearing in an informal manner. All hearings conducted on behalf of, or before the state board of equalization, must be conducted in a manner that gives deference to the position of neither the taxpayer nor the assessor, but treats both parties in an objective manner. This subsection (f) does not affect the burden of proof in property tax appeals or other contested cases as otherwise provided by law. Amended by 2023 Tenn. Acts, ch. 184, s 4, eff. 7/1/2023. Amended by 2017 Tenn. Acts, ch. 133, s 1, eff. 7/1/2017. Acts 1973, ch. 226, § 10; 1975, ch. 171, § 4; T.C.A., § 67-834; Acts 1991, ch. 434, § 1; 1995, ch. 305, § 127; 1998, ch. 606, § 2; 2006, ch. 823, § 1.
(a) As used in this part, "hearing examiner" includes an administrative judge serving by appointment of the state board of equalization or an administrative judge serving on behalf of the board under appointment by the secretary of state.
(b) The state board of equalization may appoint members of the staff of the division of property assessments or such other persons as it may employ, to serve in the capacity of hearing examiners to conduct preliminary hearings and to make investigations for the board regarding complaints and appeals from assessments and classifications, or regarding any other matter for which the board has responsibility by law.
(c) The hearing examiners shall prepare proposed findings of fact and conclusions and recommend the same to the board.
(d) Upon the evidence presented before the hearing examiner in a preliminary hearing or upon facts gained in the hearing examiner's investigation of any matter, the hearing examiner shall prepare proposed findings of fact and conclusions for the state board and shall notify each property owner who may be affected by the hearing examiner's recommendation.
(e) Notwithstanding a contrary provision of law, and unless a party to the appeal objects in writing, the administrative judge or hearing examiner may render a proposed decision that is limited to words or figures, or both, reflecting conclusions as to the proper classification or valuation of the subject property.
(f) The hearing examiner shall receive and consider all admissible evidence, as defined in § 4-5-313 , presented in a hearing and shall conduct the hearing in an informal manner. All hearings conducted on behalf of, or before the state board of equalization, must be conducted in a manner that gives deference to the position of neither the taxpayer nor the assessor, but treats both parties in an objective manner. This subsection (f) does not affect the burden of proof in property tax appeals or other contested cases as otherwise provided by law.
Amended by 2023 Tenn. Acts, ch. 184, s 4, eff. 7/1/2023.
Amended by 2017 Tenn. Acts, ch. 133, s 1, eff. 7/1/2017.
Acts 1973, ch. 226, § 10; 1975, ch. 171, § 4; T.C.A., § 67-834; Acts 1991, ch. 434, § 1; 1995, ch. 305, § 127; 1998, ch. 606, § 2; 2006, ch. 823, § 1.
Tenn. Code Ann. § 67-4-2004 — TN Code / Title 67 / Chapter 4 / Section 67-4-2004
Parts 20 and 21 definitions
Status: in_force

As used in parts 20 and 21 of this chapter, unless the context otherwise requires: (1) (A) "Affiliate" means any entity: (i) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (ii) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (iii) In which an entity described in subdivision (1)(A)(ii), directly or indirectly, has more than fifty percent (50%) ownership interest; (B) For purposes of this subdivision (1), a noncorporate entity is more than fifty percent (50%) owned, if, upon liquidation, more than fifty percent (50%) of the assets of the noncorporate entity, directly or indirectly, accrue to the entity having the ownership interest; (C) For purposes of this subdivision (1), an entity described in subdivision (1)(A)(ii) can include a natural person, and for such purposes, indirect ownership by an individual includes ownership by any family member of the individual, which means, with respect to the individual: (i) An ancestor of the individual; (ii) The spouse or former spouse of the individual; (iii) A lineal descendant of the individual, of the individual's spouse or former spouse, or of a parent of the individual; (iv) The spouse or former spouse of any lineal descendant described in subdivision (1)(C)(iii); or (v) The estate or trust of a deceased individual who, while living, was as described in any of the subdivisions (1)(C)(i)-(iv); (2) (A) "Affiliated group" means: (i) A taxpayer that, standing alone, is subject to the Tennessee franchise tax; (ii) All other domestic persons in which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (iii) All other domestic persons that, directly or indirectly, have more than fifty percent (50%) ownership interest in the taxpayer; and (iv) All other domestic persons in which a person described in subdivision (2)(A)(iii), directly or indirectly, has more than fifty percent (50%) ownership interest, regardless of whether such persons do business in Tennessee; (B) For purposes of this subdivision (2), a noncorporate taxable entity is more than fifty percent (50%) owned, if, upon liquidation more than fifty percent (50%) of the assets of the noncorporate taxable entity, directly or indirectly, accrue to a member or members of the affiliated group; (3) "Average occupational wage" means the average wage for all industries as reported by the department of labor and workforce development in the most recent annual quarterly census of employment and wages super sector data for the state, aggregate of all ownerships; (4) "Business earnings" mean earnings arising from transactions and activity in the regular course of the taxpayer's trade or business or earnings from tangible and intangible property, if the acquisition, use, management or disposition of the property constitutes an integral part of the taxpayer's regular trade or business operations. In essence, earnings that arise from the conduct of the trade or trades or business operations of a taxpayer are "business earnings," and the taxpayer must show by clear and cogent evidence that particular earnings are classifiable as nonbusiness earnings. A taxpayer may have more than one (1) regular trade or business in determining whether income is "business earnings." This subdivision (4) expresses the legislative intent to implement and clarify the distinctions between business and nonbusiness earnings, as found in the Uniform Division of Income for Tax Purposes Act, as generally interpreted by states adopting the act; (5) (A) "Business of a financial institution" means: (i) The business that a regulated financial corporation may be authorized to do under state or federal law or the business that its subsidiary is authorized to do by the proper regulatory authorities; (ii) The business that any person organized under the authority of the United States or organized under the laws of any other taxing jurisdiction or country does or has authority to do that is substantially similar to the business that a corporation may be created to do under title 45, or any business that a corporation or its subsidiary is authorized to do by title 45; (iii) Otherwise making, acquiring, selling or servicing loans or extensions of credit, including, but not limited to, the following: (a) Secured or unsecured consumer loans; (b) Installment loans; (c) Mortgages or deeds of trust or other secured loans on real or tangible personal property; (d) Credit card loans; (e) Secured or unsecured commercial loans of any type; (f) Letters of credit and acceptance of drafts; (g) The holding of participation loans in which more than one (1) lender is a creditor to a common borrower; (h) Loans arising in factoring; and (i) Any other transactions of a comparable economic effect; (iv) Leasing or acting as an agent, broker or adviser in connection with leasing real and personal property that is the economic equivalent of an extension of credit; or (v) Operating a credit card business; (B) Notwithstanding subdivision (5)(A), if the business of a financial institution generates less than fifty percent (50%) of a person's gross income, the person shall not be considered to be a financial institution under subdivision (17). For purposes of this subdivision (5)(B), the computation of gross income of a person does not include income from nonrecurring, extraordinary transactions; (6) "Campus affiliate" means any person within the footprint of a project site, as determined by the commissioner of revenue, that directly or indirectly owns a material interest in a person that qualifies for, or controls, is owned or controlled by, or under common control with a person that qualifies for the credits provided in § 67-4-2109(b)(2)(B)(i) in connection with a required capital investment in excess of one billion dollars ($1,000,000,000) and the credits provided in § 67-4-2109(m)(3) . For such purpose "material interest" means the direct or indirect beneficial ownership, as defined in Rule 13d-3, 17 CFR 240.13d-3 , under the Securities Exchange Act of 1934 ( 15 U.S.C. § 78a et seq.), of voting securities or other voting interests representing at least ten percent (10%) of the outstanding voting power or equity securities or other equity interests representing at least ten percent (10%) of the outstanding equity securities, or equity interests; and "control," including "controlling", "controlled by", and "under common control with," means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract or otherwise, and shall be construed as "control" is used in the rules promulgated under the Securities Act of 1933 ( 15 U.S.C. § 77a et seq.); (7) "Captive real estate investment trust" or "captive REIT" means an entity with an election in effect under § 856(c)(1) of the Internal Revenue Code ( 26 U.S.C. § 856(c)(1) ), in which any other entity or individual, directly or indirectly, has at least eighty percent (80%) ownership interest by value determined in accordance with generally accepted accounting principles and whose shares are not traded on a national stock exchange; (8) "Captive REIT affiliated group" means a captive REIT and any entity in which the captive REIT, directly or indirectly, has more than fifty percent (50%) ownership interest; provided, however, that a "captive REIT affiliated group" does not include a group in which the captive REIT is owned, directly or indirectly, by a bank, a bank holding company, or a public REIT; (9) "Certified green energy production facility" means: (A) A facility certified by the department of environment and conservation as producing or storing electricity using clean energy technology. For the purposes of this subdivision (9)(A), clean energy technology means technology used to generate energy from geothermal, hydrogen, solar, and wind sources; (B) A facility certified by the department of environment and conservation as an alternative motor vehicle fueling station that utilizes natural gas in compressed or liquid form for the purpose of fueling motor vehicles and that is projected to displace more than six thousand gallons (6,000 gals.) of petroleum annually; or (C) A facility which utilizes natural gas in a combined heat and power configuration (CHP) for production of heat and electricity for consumption onsite; (10) "Commercial domicile" means the principal place from which the trade or business of a business entity is directed or managed; (11) "Commissioner" means the commissioner of revenue; (12) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services; (13) "Department" means the department of revenue; (14) (A) "Doing business in Tennessee" or "doing business within this state" means any activity purposefully engaged in within Tennessee, by a person with the object of gain, benefit, or advantage, consistent with the intent of the general assembly to subject such persons to the Tennessee franchise/excise tax to the extent permitted by the United States Constitution and the Constitution of Tennessee; (B) A financial institution shall be presumed, subject to rebuttal, to be doing business in this state, if the sum of its assets and the absolute value of its deposits attributable to sources within this state is five million dollars ($5,000,000) or more. For purposes of this part, tangible assets shall be attributable to this state, if they are located in this state. Intangible assets shall be attributable to this state if the income earned on those assets is attributable to this state pursuant to this part. Deposits shall be attributed to this state, if they are deposits made by this state or any of its agencies, instrumentalities or subdivisions or by any resident of this state, regardless of whether the deposits are accepted or maintained at locations in this state. Additionally, a financial institution shall be deemed to be doing business in this state, if the institution: (i) Maintains an office in this state; (ii) Has an employee, representative or independent contractor conducting business in this state; (iii) Regularly sells products or services of any kind or nature to customers in this state that receive the product or service in this state; (iv) Regularly solicits business from potential customers in this state; (v) Regularly performs services outside this state that are consumed in this state; (vi) Regularly engages in transactions with customers in this state that involve intangible property, including loans, and result in receipts flowing to the taxpayer from within this state; (vii) Owns or leases property located in this state; or (viii) Regularly solicits and receives deposits from customers in this state; (C) Notwithstanding any other law to the contrary, a financial institution is not considered to be conducting the business of a financial institution in this state, if the only activity of the financial institution in this state is the ownership of an interest in one (1) or more of the following types of property, including those activities within this state that are reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property or the income from it, the collection of income from the property, or the acquisition or liquidation of collateral relating to the property: (i) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company as those terms are defined by the Internal Revenue Code of 1986; (ii) An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates; (iii) An interest in a loan, lease, note or other assets attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner; (iv) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner; (v) An interest in demand deposit clearing accounts, federal funds, certificates of deposit and other similar wholesale banking instruments issued by other financial institutions; (vi) An interest in a security; or (vii) An interest of a financial institution in any intangible, tangible, real or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation that is in default, whether secured or unsecured, if the ownership of the interest would be exempt otherwise as provided in subdivisions (14)(C)(i)-(v); (D) For the purposes of subdivisions (14)(C)(iii) and (iv), an "independent person who is not acting on behalf of the owner" means: (i) At the time of the acquisition of the assets, the owner of the asset does not directly or indirectly own fifteen percent (15%) or more of the outstanding stock or, in the case of a partnership or limited liability company, fifteen percent (15%) or more of the capital or profits interest, of the entity from which the owner originally acquired the asset. In determining indirect ownership, an owner is deemed to own all of the stock, capital interest or profits interest owned by another person if the owner directly owns fifteen percent (15%) or more of the stock, capital interest or profits interest in that other person. Also, the owner is deemed to own all stock, capital interest and profits interest directly owned by any intermediary parties in the transaction, to the extent a fifteen percent (15%) or more chain of ownership of stock, capital interest or profits interest exists between the owner and any intermediary party; (ii) The entity from which the owner acquired the asset regularly sells, assigns or transfers interest in such assets to three (3) or more persons during the full twelve-month period immediately preceding the month of acquisition; and (iii) The entity from which the owner acquired the asset does not sell, assign or transfer ninety percent (90%) or more of its exempt assets to the owner during the full twelve-month period immediately preceding the month of acquisition; (E) A person shall not be considered to be "doing business in Tennessee" or "doing business within this state" for purposes of this part or part 21 of this chapter solely because of any one (1) of the following activities: (i) The presence of employees and/or product samples and/or other promotional materials at one (1) or more trade shows, exhibits, conventions, or similar events in this state for a total of not more than twenty (20) days per calendar year; provided, that the activities of the entity's employees while in Tennessee are limited to maintaining or facilitating the trade show or convention; the purchasing of goods on behalf of their employer; the solicitation of sales; and the gathering of samples, promotional material or other information offered at the event; (ii) Activities by publishers of magazines and books who contract with Tennessee printers for the printing of their magazines or books, when such activities in Tennessee are limited solely to activities having to do with the printing, storage, labeling and/or delivery to the United States mail or common carrier of such magazines or books; or the maintenance of raw materials with respect to such activities; or the maintenance of employees solely in connection with the production and quality control of such printing, storage, labeling and/or delivery; provided, that the publisher and printer are not affiliated with one another. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; (iii) Physical presence in this state of an out-of-state person's equipment, tooling, inventory, and employees on a temporary basis, when: (a) The activity in which such items and employees are engaged is not the pursuit, creation or maintenance, by the out-of-state person or any person that is affiliated with it, of a market in this state; (b) The equipment and tooling are not used, worked on or held in this state by a person that is affiliated with the out-of-state person; (c) The out-of-state person's employees have no control over the use or work done in this state by the in-state person; and (d) The extent and value of such items, the number of such employees, and the number of days the employees work in this state, in light of all the facts and circumstances, are qualitatively and quantitatively de minimis. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; or (iv) The temporary presence in this state of employees solely for the purpose of purchasing goods from vendors in this state for use in the employer's business out-of-state; provided, that the total number of days the employer has one (1) or more employees present in this state does not exceed thirty (30) per calendar year; and provided, further, that the employer does not furnish, directly or indirectly, any office in this state for their use; (15) "Domestic person" means any person with more than twenty percent (20%) of the average of its property, payroll and receipts factors, as each factor is calculated for a separate entity under § 67-4-2111 , in the United States; (16) "Final return status" means the status of any person or taxpayer that has commenced the process of effecting a surrender of charter, withdrawal of qualification to do business in this state, merger, consolidation, liquidation, complete sale, transfer or distribution of assets, conversion, dissolution, or any similar event that results in, or is intended to result in, the taxpayer ceasing to exist, or no longer being subject to the tax imposed by this part, or no longer having any substantial remaining business or financial activity; (17) "Financial institution" means a holding company, any regulated financial corporation, a subsidiary of a holding company or a regulated financial corporation, an investment entity that is indirectly more than fifty percent (50%) owned by a holding company or a regulated financial corporation, or any other person that is carrying on the business of a financial institution. However, "financial institution" does not include insurance companies subject to tax under §§ 56-4-201 - 56-4-208, [former] 56-4-209 [repealed], 56-4-210 - 56-4-214; (18) "Financial institution affiliated group" means any affiliated group in which more than fifty percent (50%) of the group's aggregate gross income, excluding dividends and receipts resulting from transactions between members, is derived from conducting the business of a financial institution as defined in subdivision (5)(A). For purposes of this subdivision (18), the computation of gross income of a member does not include income from nonrecurring, extraordinary transactions; (19) "General partnership" means a partnership in which all partners, as defined by state law, are fully liable for the debts of, or the claims against, the partnership. For purposes of this subdivision (19), partners may be "fully liable" even though one (1) or more persons or individuals dealing with the partnership have by contract agreed to limit their claims against one (1) or more partners or against the partnership as a whole; (20) "Gross receipts," "total gross receipts," "receipts," and "total receipts" mean, within the context of the statute in which used, all receipts from whatever sources derived before any deductions, but not including actual sales returns and allowances; (21) "Holding company" means any corporation defined as a "bank holding company" under 12 U.S.C. § 1841(a) of the Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq.) or any corporation defined as a "savings and loan holding company," "multiple savings and loan holding company," or "diversified savings and loan holding company," under 12 U.S.C. § 1467a(a)(1) ; (22) "Hospital" has the definition provided at § 68-11-201 ; provided, that, as used in this part, a "hospital" must be licensed as a hospital by the board of licensing health care facilities pursuant to title 68, chapter 11, part 2; and provided, further, that "hospital" does not include a nursing home, ambulatory surgical treatment center or other health care facility enumerated and defined in title 68, chapter 11, unless operated as a part of and in connection with a "hospital"; (23) "Hospital company" means a corporation or other entity subject to the taxes imposed under this part and part 21 of this chapter and that qualified before January 1, 1999, with the department as a hospital company as defined under prior law; (24) (A) "Intangible expense" means an expense related to, or in connection with, the acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are allowed or allowable as deductions or costs in determining federal taxable income on a separate entity basis; (B) "Intangible expense" also means interest expenses directly or indirectly allowed as deductions or costs in determining federal taxable income on a separate entity basis to the extent such interest expenses are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property; (25) "Intangible income" means income related to, or in connection with, the acquisition, use, maintenance or management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are included or includable in determining federal taxable income; (26) "Intangible property" means patents, patent applications, trade names, trademarks, service marks, franchise rights, copyrights, licenses, research, formulas, designs, patterns, processes, formats, and similar types of intangible assets; (27) "Internal Revenue Code" means title 26 of the United States Code as effective during the year in which net earnings are determined under this part; (28) "Investment entity" means any person that receives more than fifty percent (50%) of its gross income from investment securities and from the business of a financial institution; (29) "Investment securities" means, for purposes of this section, any note, United States treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate debt securities, participations in securities backed by mortgages held by the United States or state government agencies, loan-backed securities, bonds, debentures, evidence of indebtedness, and other similar debt investments; (30) "Key tenant" means any tenant, located within a qualified medical trade center, that leases and occupies a significant portion of the facility and is determined, in the sole discretion of the commissioner of economic and community development and the commissioner of revenue, to be essential to the initial establishment and viability of the trade center; (31) "Nonbusiness earnings" means all earnings other than business earnings; (32) "Not-for-profit" means any person described in § 401, § 408, § 408A, § 409, § 501, § 526, § 527, § 528, § 529 or § 530 of the Internal Revenue Code ( 26 U.S.C. § 401 , § 408 , § 408A , § 409 , § 501 , § 526 , § 527 , § 528 , § 529 or § 530 ); (33) "Obligated member" means a member or partner of an obligated member entity that is fully liable for the debts, obligations and liabilities of the entity, as provided in § 67-4-2008(b)-(d) , and that has filed appropriate documentation to that effect with the secretary of state; (34) "Obligated member entity" means a limited liability company, limited partnership or limited liability partnership, all of whose members or partners are fully liable for the debts, obligations and liabilities of the entity, as provided in § 67-4-2008(b)-(d) , and that have filed appropriate documentation to that effect with the secretary of state; (35) "Pass-through entity" means an S corporation, an entity treated as a partnership for federal income tax purposes, an entity treated as a trust for federal income tax purposes or a business entity that has a single owner and that is disregarded as an entity separate from its owner for federal income tax purposes, but not for purposes of this part and part 21 of this chapter; (36) "Person" or "taxpayer" means every corporation, subchapter S corporation, limited liability company, professional limited liability company, registered limited liability partnership, professional registered limited liability partnership, limited partnership, cooperative, joint-stock association, business trust, regulated investment company, REIT, state-chartered or national bank, or state-chartered or federally chartered savings and loan association; (37) "Publicly traded real estate investment trust" or "public REIT" means an entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code that files with the securities and exchange commission and whose shares are traded on a securities exchange that is either registered as a national securities exchange with the securities and exchange commission under § 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78f ) or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority; (38) "Qualified commercial financing entity" means a person that qualified for the credit in § 67-6-224 that primarily finances wholesale and retail transactions related to the purchase or lease of industrial equipment, machinery, vehicles, or goods manufactured by its affiliates and is certified for that designation by the commissioner of revenue and the commissioner of economic and community development. Notwithstanding § 47-14-103 , a qualified commercial financing entity shall be allowed to charge a rate of interest not to exceed twenty-four percent (24%) per annum; (39) "Qualified medical trade center" means any facility, located in a county with a metropolitan form of government, that is substantially composed of permanent and temporary show rooms for medical product suppliers as well as educational space and conference facilities for medical trade shows; provided, that such facility is constructed, expanded, or remodeled through an investment of more than two hundred fifty million dollars ($250,000,000) and contains more than one million square feet (1,000,000 sq. ft.) of space upon completion; (40) "Qualified medical trade center relocation expenses" means those expenses that both the commissioner of revenue and the commissioner of economic and community development determine, in their sole discretion, are necessary to the creation of a permanent show room within a qualified medical trade center in conjunction with the initial establishment of such facility; (41) "Qualified new or expanded warehouse or distribution facility" means a new or expanded facility for the storage or distribution of finished tangible personal property; provided, that the facility also meets all the qualifications necessary to allow the taxpayer to make purchases of material handling and racking systems exempt from sales and use tax under the definition of "industrial machinery" in § 67-6-102 ; (42) "Real estate investment trust (REIT)" means an entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code; (43) "Regulated financial corporation" means an institution, the deposits, shares, or accounts of which are insured under the Federal Deposit Insurance Act ( 12 U.S.C. § 1811 et seq.) or any institution that is a member of a federal home loan bank, any other bank or thrift institution incorporated or organized under the laws of any taxing jurisdiction, or any foreign country that is engaged in the business of receiving deposits, any corporation organized under 12 U.S.C. §§ 611 - 631 , Edge Act corporations, and any agency of a foreign depository as defined in 12 U.S.C. § 3101 ; (44) "Sales" means all gross receipts of the taxpayer not allocated under this part; (45) "Securities" means United States treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate stock and other securities, participations in securities backed by mortgages held by the United States or state government agencies, loan-backed securities and similar investments; (46) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof; (47) (A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part and part 21 of this chapter. Such connection includes, but is not limited to, the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; (iv) The taxpayer licenses intangible property for use by another party in this state and derives income from that use of intangible property in this state; or (v) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined under § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer; (B) Notwithstanding subdivision (47)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state"; (C) To the extent a company that is treated as a foreign corporation under the Internal Revenue Code has income effectively connected with a United States trade or business, such company's net earnings and net worth for purposes of the taxes imposed by this part and part 21 of this chapter shall be its net earnings and net worth connected with its United States trade or business, and only property used in, payroll attributable to, and receipts effectively connected with such company's United States trade or business shall be considered for purposes of calculating such company's apportionment fraction; (D) For purposes of subdivisions (47)(B) and (C), whether a company has income effectively connected with a United States trade or business and the amount of its net earnings and net worth connected with its United States trade or business shall be determined in accordance with the Internal Revenue Code; (48) "Taxing jurisdiction" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico or a territory or possession of the United States; (49) "Tennessee historic property preservation or rehabilitation entity" means an entity that satisfies all of the following requirements: (A) The Tennessee historic property preservation or rehabilitation entity must be a corporation or limited liability company organized under the laws of Tennessee, that is directly or indirectly controlled by a not-for-profit entity, as defined in this part. Such not-for-profit entity must directly or indirectly hold not less than fifty-one percent (51%) of the Tennessee historic property preservation or rehabilitation entity's ownership interest and voting control; (B) The Tennessee historic property preservation or rehabilitation entity must be organized for the purpose of preserving or rehabilitating an historic property listed on the National Register of Historic Places; (C) The not-for-profit entity must receive approval of its historic certification application-Part 3 by the United States department of the interior national park service; and (D) The historic property must be used in the performance of the exempt activity or function of the controlling not-for-profit entity; and (50) "Unitary business" or "unitary group" means business activities or operations of financial institutions that are of mutual benefit, dependent upon, or contributory to one another, individually or as a group, in transacting the business of a financial institution. "Unitary business" may be applied within a single legal entity or between multiple entities. "Unitary business" or "unitary group" includes those entities that are engaged in a unitary business transacted wholly in, or in and out of the state of Tennessee, even if some of the entities would not be subject to tax in this state, if considered apart from their unitary group. Amended by 2022 Tenn. Acts, ch. 1139, s 1, eff. 7/1/2022. Amended by 2015 Tenn. Acts, ch. 514, s 6, eff. 1/1/2016. Amended by 2015 Tenn. Acts, ch. 504, s 3, eff. 7/1/2015. Amended by 2015 Tenn. Acts, ch. 504, s 2, eff. 7/1/2015. Amended by 2013 Tenn. Acts, ch. 423, s 5, eff. 5/16/2013. Amended by 2013 Tenn. Acts, ch. 321, s 1, eff. 5/13/2013. Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 1 - 7, 45; 2003 , ch. 355, §§ 37, 39-41; 2003 , ch. 418, §§ 10, 12-14; 2004, ch. 924, § 1; 2004, ch. 932, § 1; 2005, ch. 499, §§ 2, 29, 75, 86; 2006, ch. 1019, §§ 6, 11, 30, 31; 2007 , ch. 602, § 7; 2008 , ch. 1106, §§ 35, 45; 2009 , ch. 530, §§ 26, 34, 105; 2010 , ch. 1134, §§ 5, 6, 20, 24, 38; 2012 , ch. 842, § 1.
As used in parts 20 and 21 of this chapter, unless the context otherwise requires:
(1) (A) "Affiliate" means any entity: (i) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (ii) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (iii) In which an entity described in subdivision (1)(A)(ii), directly or indirectly, has more than fifty percent (50%) ownership interest; (B) For purposes of this subdivision (1), a noncorporate entity is more than fifty percent (50%) owned, if, upon liquidation, more than fifty percent (50%) of the assets of the noncorporate entity, directly or indirectly, accrue to the entity having the ownership interest; (C) For purposes of this subdivision (1), an entity described in subdivision (1)(A)(ii) can include a natural person, and for such purposes, indirect ownership by an individual includes ownership by any family member of the individual, which means, with respect to the individual: (i) An ancestor of the individual; (ii) The spouse or former spouse of the individual; (iii) A lineal descendant of the individual, of the individual's spouse or former spouse, or of a parent of the individual; (iv) The spouse or former spouse of any lineal descendant described in subdivision (1)(C)(iii); or (v) The estate or trust of a deceased individual who, while living, was as described in any of the subdivisions (1)(C)(i)-(iv);
(A) "Affiliate" means any entity: (i) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (ii) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or (iii) In which an entity described in subdivision (1)(A)(ii), directly or indirectly, has more than fifty percent (50%) ownership interest;
(i) In which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest;
(ii) That, directly or indirectly, has more than fifty percent (50%) ownership interest in the taxpayer; or
(iii) In which an entity described in subdivision (1)(A)(ii), directly or indirectly, has more than fifty percent (50%) ownership interest;
(B) For purposes of this subdivision (1), a noncorporate entity is more than fifty percent (50%) owned, if, upon liquidation, more than fifty percent (50%) of the assets of the noncorporate entity, directly or indirectly, accrue to the entity having the ownership interest;
(C) For purposes of this subdivision (1), an entity described in subdivision (1)(A)(ii) can include a natural person, and for such purposes, indirect ownership by an individual includes ownership by any family member of the individual, which means, with respect to the individual: (i) An ancestor of the individual; (ii) The spouse or former spouse of the individual; (iii) A lineal descendant of the individual, of the individual's spouse or former spouse, or of a parent of the individual; (iv) The spouse or former spouse of any lineal descendant described in subdivision (1)(C)(iii); or (v) The estate or trust of a deceased individual who, while living, was as described in any of the subdivisions (1)(C)(i)-(iv);
(i) An ancestor of the individual;
(ii) The spouse or former spouse of the individual;
(iii) A lineal descendant of the individual, of the individual's spouse or former spouse, or of a parent of the individual;
(iv) The spouse or former spouse of any lineal descendant described in subdivision (1)(C)(iii); or
(v) The estate or trust of a deceased individual who, while living, was as described in any of the subdivisions (1)(C)(i)-(iv);
(2) (A) "Affiliated group" means: (i) A taxpayer that, standing alone, is subject to the Tennessee franchise tax; (ii) All other domestic persons in which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (iii) All other domestic persons that, directly or indirectly, have more than fifty percent (50%) ownership interest in the taxpayer; and (iv) All other domestic persons in which a person described in subdivision (2)(A)(iii), directly or indirectly, has more than fifty percent (50%) ownership interest, regardless of whether such persons do business in Tennessee; (B) For purposes of this subdivision (2), a noncorporate taxable entity is more than fifty percent (50%) owned, if, upon liquidation more than fifty percent (50%) of the assets of the noncorporate taxable entity, directly or indirectly, accrue to a member or members of the affiliated group;
(A) "Affiliated group" means: (i) A taxpayer that, standing alone, is subject to the Tennessee franchise tax; (ii) All other domestic persons in which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest; (iii) All other domestic persons that, directly or indirectly, have more than fifty percent (50%) ownership interest in the taxpayer; and (iv) All other domestic persons in which a person described in subdivision (2)(A)(iii), directly or indirectly, has more than fifty percent (50%) ownership interest, regardless of whether such persons do business in Tennessee;
(i) A taxpayer that, standing alone, is subject to the Tennessee franchise tax;
(ii) All other domestic persons in which the taxpayer, directly or indirectly, has more than fifty percent (50%) ownership interest;
(iii) All other domestic persons that, directly or indirectly, have more than fifty percent (50%) ownership interest in the taxpayer; and
(iv) All other domestic persons in which a person described in subdivision (2)(A)(iii), directly or indirectly, has more than fifty percent (50%) ownership interest, regardless of whether such persons do business in Tennessee;
(B) For purposes of this subdivision (2), a noncorporate taxable entity is more than fifty percent (50%) owned, if, upon liquidation more than fifty percent (50%) of the assets of the noncorporate taxable entity, directly or indirectly, accrue to a member or members of the affiliated group;
(3) "Average occupational wage" means the average wage for all industries as reported by the department of labor and workforce development in the most recent annual quarterly census of employment and wages super sector data for the state, aggregate of all ownerships;
(4) "Business earnings" mean earnings arising from transactions and activity in the regular course of the taxpayer's trade or business or earnings from tangible and intangible property, if the acquisition, use, management or disposition of the property constitutes an integral part of the taxpayer's regular trade or business operations. In essence, earnings that arise from the conduct of the trade or trades or business operations of a taxpayer are "business earnings," and the taxpayer must show by clear and cogent evidence that particular earnings are classifiable as nonbusiness earnings. A taxpayer may have more than one (1) regular trade or business in determining whether income is "business earnings." This subdivision (4) expresses the legislative intent to implement and clarify the distinctions between business and nonbusiness earnings, as found in the Uniform Division of Income for Tax Purposes Act, as generally interpreted by states adopting the act;
(5) (A) "Business of a financial institution" means: (i) The business that a regulated financial corporation may be authorized to do under state or federal law or the business that its subsidiary is authorized to do by the proper regulatory authorities; (ii) The business that any person organized under the authority of the United States or organized under the laws of any other taxing jurisdiction or country does or has authority to do that is substantially similar to the business that a corporation may be created to do under title 45, or any business that a corporation or its subsidiary is authorized to do by title 45; (iii) Otherwise making, acquiring, selling or servicing loans or extensions of credit, including, but not limited to, the following: (a) Secured or unsecured consumer loans; (b) Installment loans; (c) Mortgages or deeds of trust or other secured loans on real or tangible personal property; (d) Credit card loans; (e) Secured or unsecured commercial loans of any type; (f) Letters of credit and acceptance of drafts; (g) The holding of participation loans in which more than one (1) lender is a creditor to a common borrower; (h) Loans arising in factoring; and (i) Any other transactions of a comparable economic effect; (iv) Leasing or acting as an agent, broker or adviser in connection with leasing real and personal property that is the economic equivalent of an extension of credit; or (v) Operating a credit card business; (B) Notwithstanding subdivision (5)(A), if the business of a financial institution generates less than fifty percent (50%) of a person's gross income, the person shall not be considered to be a financial institution under subdivision (17). For purposes of this subdivision (5)(B), the computation of gross income of a person does not include income from nonrecurring, extraordinary transactions;
(A) "Business of a financial institution" means: (i) The business that a regulated financial corporation may be authorized to do under state or federal law or the business that its subsidiary is authorized to do by the proper regulatory authorities; (ii) The business that any person organized under the authority of the United States or organized under the laws of any other taxing jurisdiction or country does or has authority to do that is substantially similar to the business that a corporation may be created to do under title 45, or any business that a corporation or its subsidiary is authorized to do by title 45; (iii) Otherwise making, acquiring, selling or servicing loans or extensions of credit, including, but not limited to, the following: (a) Secured or unsecured consumer loans; (b) Installment loans; (c) Mortgages or deeds of trust or other secured loans on real or tangible personal property; (d) Credit card loans; (e) Secured or unsecured commercial loans of any type; (f) Letters of credit and acceptance of drafts; (g) The holding of participation loans in which more than one (1) lender is a creditor to a common borrower; (h) Loans arising in factoring; and (i) Any other transactions of a comparable economic effect; (iv) Leasing or acting as an agent, broker or adviser in connection with leasing real and personal property that is the economic equivalent of an extension of credit; or (v) Operating a credit card business;
(i) The business that a regulated financial corporation may be authorized to do under state or federal law or the business that its subsidiary is authorized to do by the proper regulatory authorities;
(ii) The business that any person organized under the authority of the United States or organized under the laws of any other taxing jurisdiction or country does or has authority to do that is substantially similar to the business that a corporation may be created to do under title 45, or any business that a corporation or its subsidiary is authorized to do by title 45;
(iii) Otherwise making, acquiring, selling or servicing loans or extensions of credit, including, but not limited to, the following: (a) Secured or unsecured consumer loans; (b) Installment loans; (c) Mortgages or deeds of trust or other secured loans on real or tangible personal property; (d) Credit card loans; (e) Secured or unsecured commercial loans of any type; (f) Letters of credit and acceptance of drafts; (g) The holding of participation loans in which more than one (1) lender is a creditor to a common borrower; (h) Loans arising in factoring; and (i) Any other transactions of a comparable economic effect;
(a) Secured or unsecured consumer loans;
(b) Installment loans;
(c) Mortgages or deeds of trust or other secured loans on real or tangible personal property;
(d) Credit card loans;
(e) Secured or unsecured commercial loans of any type;
(f) Letters of credit and acceptance of drafts;
(g) The holding of participation loans in which more than one (1) lender is a creditor to a common borrower;
(h) Loans arising in factoring; and
(i) Any other transactions of a comparable economic effect;
(iv) Leasing or acting as an agent, broker or adviser in connection with leasing real and personal property that is the economic equivalent of an extension of credit; or
(v) Operating a credit card business;
(B) Notwithstanding subdivision (5)(A), if the business of a financial institution generates less than fifty percent (50%) of a person's gross income, the person shall not be considered to be a financial institution under subdivision (17). For purposes of this subdivision (5)(B), the computation of gross income of a person does not include income from nonrecurring, extraordinary transactions;
(6) "Campus affiliate" means any person within the footprint of a project site, as determined by the commissioner of revenue, that directly or indirectly owns a material interest in a person that qualifies for, or controls, is owned or controlled by, or under common control with a person that qualifies for the credits provided in § 67-4-2109(b)(2)(B)(i) in connection with a required capital investment in excess of one billion dollars ($1,000,000,000) and the credits provided in § 67-4-2109(m)(3) . For such purpose "material interest" means the direct or indirect beneficial ownership, as defined in Rule 13d-3, 17 CFR 240.13d-3 , under the Securities Exchange Act of 1934 ( 15 U.S.C. § 78a et seq.), of voting securities or other voting interests representing at least ten percent (10%) of the outstanding voting power or equity securities or other equity interests representing at least ten percent (10%) of the outstanding equity securities, or equity interests; and "control," including "controlling", "controlled by", and "under common control with," means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract or otherwise, and shall be construed as "control" is used in the rules promulgated under the Securities Act of 1933 ( 15 U.S.C. § 77a et seq.);
(7) "Captive real estate investment trust" or "captive REIT" means an entity with an election in effect under § 856(c)(1) of the Internal Revenue Code ( 26 U.S.C. § 856(c)(1) ), in which any other entity or individual, directly or indirectly, has at least eighty percent (80%) ownership interest by value determined in accordance with generally accepted accounting principles and whose shares are not traded on a national stock exchange;
(8) "Captive REIT affiliated group" means a captive REIT and any entity in which the captive REIT, directly or indirectly, has more than fifty percent (50%) ownership interest; provided, however, that a "captive REIT affiliated group" does not include a group in which the captive REIT is owned, directly or indirectly, by a bank, a bank holding company, or a public REIT;
(9) "Certified green energy production facility" means: (A) A facility certified by the department of environment and conservation as producing or storing electricity using clean energy technology. For the purposes of this subdivision (9)(A), clean energy technology means technology used to generate energy from geothermal, hydrogen, solar, and wind sources; (B) A facility certified by the department of environment and conservation as an alternative motor vehicle fueling station that utilizes natural gas in compressed or liquid form for the purpose of fueling motor vehicles and that is projected to displace more than six thousand gallons (6,000 gals.) of petroleum annually; or (C) A facility which utilizes natural gas in a combined heat and power configuration (CHP) for production of heat and electricity for consumption onsite;
(A) A facility certified by the department of environment and conservation as producing or storing electricity using clean energy technology. For the purposes of this subdivision (9)(A), clean energy technology means technology used to generate energy from geothermal, hydrogen, solar, and wind sources;
(B) A facility certified by the department of environment and conservation as an alternative motor vehicle fueling station that utilizes natural gas in compressed or liquid form for the purpose of fueling motor vehicles and that is projected to displace more than six thousand gallons (6,000 gals.) of petroleum annually; or
(C) A facility which utilizes natural gas in a combined heat and power configuration (CHP) for production of heat and electricity for consumption onsite;
(10) "Commercial domicile" means the principal place from which the trade or business of a business entity is directed or managed;
(11) "Commissioner" means the commissioner of revenue;
(12) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services;
(13) "Department" means the department of revenue;
(14) (A) "Doing business in Tennessee" or "doing business within this state" means any activity purposefully engaged in within Tennessee, by a person with the object of gain, benefit, or advantage, consistent with the intent of the general assembly to subject such persons to the Tennessee franchise/excise tax to the extent permitted by the United States Constitution and the Constitution of Tennessee; (B) A financial institution shall be presumed, subject to rebuttal, to be doing business in this state, if the sum of its assets and the absolute value of its deposits attributable to sources within this state is five million dollars ($5,000,000) or more. For purposes of this part, tangible assets shall be attributable to this state, if they are located in this state. Intangible assets shall be attributable to this state if the income earned on those assets is attributable to this state pursuant to this part. Deposits shall be attributed to this state, if they are deposits made by this state or any of its agencies, instrumentalities or subdivisions or by any resident of this state, regardless of whether the deposits are accepted or maintained at locations in this state. Additionally, a financial institution shall be deemed to be doing business in this state, if the institution: (i) Maintains an office in this state; (ii) Has an employee, representative or independent contractor conducting business in this state; (iii) Regularly sells products or services of any kind or nature to customers in this state that receive the product or service in this state; (iv) Regularly solicits business from potential customers in this state; (v) Regularly performs services outside this state that are consumed in this state; (vi) Regularly engages in transactions with customers in this state that involve intangible property, including loans, and result in receipts flowing to the taxpayer from within this state; (vii) Owns or leases property located in this state; or (viii) Regularly solicits and receives deposits from customers in this state; (C) Notwithstanding any other law to the contrary, a financial institution is not considered to be conducting the business of a financial institution in this state, if the only activity of the financial institution in this state is the ownership of an interest in one (1) or more of the following types of property, including those activities within this state that are reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property or the income from it, the collection of income from the property, or the acquisition or liquidation of collateral relating to the property: (i) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company as those terms are defined by the Internal Revenue Code of 1986; (ii) An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates; (iii) An interest in a loan, lease, note or other assets attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner; (iv) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner; (v) An interest in demand deposit clearing accounts, federal funds, certificates of deposit and other similar wholesale banking instruments issued by other financial institutions; (vi) An interest in a security; or (vii) An interest of a financial institution in any intangible, tangible, real or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation that is in default, whether secured or unsecured, if the ownership of the interest would be exempt otherwise as provided in subdivisions (14)(C)(i)-(v); (D) For the purposes of subdivisions (14)(C)(iii) and (iv), an "independent person who is not acting on behalf of the owner" means: (i) At the time of the acquisition of the assets, the owner of the asset does not directly or indirectly own fifteen percent (15%) or more of the outstanding stock or, in the case of a partnership or limited liability company, fifteen percent (15%) or more of the capital or profits interest, of the entity from which the owner originally acquired the asset. In determining indirect ownership, an owner is deemed to own all of the stock, capital interest or profits interest owned by another person if the owner directly owns fifteen percent (15%) or more of the stock, capital interest or profits interest in that other person. Also, the owner is deemed to own all stock, capital interest and profits interest directly owned by any intermediary parties in the transaction, to the extent a fifteen percent (15%) or more chain of ownership of stock, capital interest or profits interest exists between the owner and any intermediary party; (ii) The entity from which the owner acquired the asset regularly sells, assigns or transfers interest in such assets to three (3) or more persons during the full twelve-month period immediately preceding the month of acquisition; and (iii) The entity from which the owner acquired the asset does not sell, assign or transfer ninety percent (90%) or more of its exempt assets to the owner during the full twelve-month period immediately preceding the month of acquisition; (E) A person shall not be considered to be "doing business in Tennessee" or "doing business within this state" for purposes of this part or part 21 of this chapter solely because of any one (1) of the following activities: (i) The presence of employees and/or product samples and/or other promotional materials at one (1) or more trade shows, exhibits, conventions, or similar events in this state for a total of not more than twenty (20) days per calendar year; provided, that the activities of the entity's employees while in Tennessee are limited to maintaining or facilitating the trade show or convention; the purchasing of goods on behalf of their employer; the solicitation of sales; and the gathering of samples, promotional material or other information offered at the event; (ii) Activities by publishers of magazines and books who contract with Tennessee printers for the printing of their magazines or books, when such activities in Tennessee are limited solely to activities having to do with the printing, storage, labeling and/or delivery to the United States mail or common carrier of such magazines or books; or the maintenance of raw materials with respect to such activities; or the maintenance of employees solely in connection with the production and quality control of such printing, storage, labeling and/or delivery; provided, that the publisher and printer are not affiliated with one another. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; (iii) Physical presence in this state of an out-of-state person's equipment, tooling, inventory, and employees on a temporary basis, when: (a) The activity in which such items and employees are engaged is not the pursuit, creation or maintenance, by the out-of-state person or any person that is affiliated with it, of a market in this state; (b) The equipment and tooling are not used, worked on or held in this state by a person that is affiliated with the out-of-state person; (c) The out-of-state person's employees have no control over the use or work done in this state by the in-state person; and (d) The extent and value of such items, the number of such employees, and the number of days the employees work in this state, in light of all the facts and circumstances, are qualitatively and quantitatively de minimis. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; or (iv) The temporary presence in this state of employees solely for the purpose of purchasing goods from vendors in this state for use in the employer's business out-of-state; provided, that the total number of days the employer has one (1) or more employees present in this state does not exceed thirty (30) per calendar year; and provided, further, that the employer does not furnish, directly or indirectly, any office in this state for their use;
(A) "Doing business in Tennessee" or "doing business within this state" means any activity purposefully engaged in within Tennessee, by a person with the object of gain, benefit, or advantage, consistent with the intent of the general assembly to subject such persons to the Tennessee franchise/excise tax to the extent permitted by the United States Constitution and the Constitution of Tennessee;
(B) A financial institution shall be presumed, subject to rebuttal, to be doing business in this state, if the sum of its assets and the absolute value of its deposits attributable to sources within this state is five million dollars ($5,000,000) or more. For purposes of this part, tangible assets shall be attributable to this state, if they are located in this state. Intangible assets shall be attributable to this state if the income earned on those assets is attributable to this state pursuant to this part. Deposits shall be attributed to this state, if they are deposits made by this state or any of its agencies, instrumentalities or subdivisions or by any resident of this state, regardless of whether the deposits are accepted or maintained at locations in this state. Additionally, a financial institution shall be deemed to be doing business in this state, if the institution: (i) Maintains an office in this state; (ii) Has an employee, representative or independent contractor conducting business in this state; (iii) Regularly sells products or services of any kind or nature to customers in this state that receive the product or service in this state; (iv) Regularly solicits business from potential customers in this state; (v) Regularly performs services outside this state that are consumed in this state; (vi) Regularly engages in transactions with customers in this state that involve intangible property, including loans, and result in receipts flowing to the taxpayer from within this state; (vii) Owns or leases property located in this state; or (viii) Regularly solicits and receives deposits from customers in this state;
(i) Maintains an office in this state;
(ii) Has an employee, representative or independent contractor conducting business in this state;
(iii) Regularly sells products or services of any kind or nature to customers in this state that receive the product or service in this state;
(iv) Regularly solicits business from potential customers in this state;
(v) Regularly performs services outside this state that are consumed in this state;
(vi) Regularly engages in transactions with customers in this state that involve intangible property, including loans, and result in receipts flowing to the taxpayer from within this state;
(vii) Owns or leases property located in this state; or
(viii) Regularly solicits and receives deposits from customers in this state;
(C) Notwithstanding any other law to the contrary, a financial institution is not considered to be conducting the business of a financial institution in this state, if the only activity of the financial institution in this state is the ownership of an interest in one (1) or more of the following types of property, including those activities within this state that are reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property or the income from it, the collection of income from the property, or the acquisition or liquidation of collateral relating to the property: (i) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company as those terms are defined by the Internal Revenue Code of 1986; (ii) An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates; (iii) An interest in a loan, lease, note or other assets attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner; (iv) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner; (v) An interest in demand deposit clearing accounts, federal funds, certificates of deposit and other similar wholesale banking instruments issued by other financial institutions; (vi) An interest in a security; or (vii) An interest of a financial institution in any intangible, tangible, real or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation that is in default, whether secured or unsecured, if the ownership of the interest would be exempt otherwise as provided in subdivisions (14)(C)(i)-(v);
(i) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company as those terms are defined by the Internal Revenue Code of 1986;
(ii) An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates;
(iii) An interest in a loan, lease, note or other assets attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner;
(iv) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed to this state and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner;
(v) An interest in demand deposit clearing accounts, federal funds, certificates of deposit and other similar wholesale banking instruments issued by other financial institutions;
(vi) An interest in a security; or
(vii) An interest of a financial institution in any intangible, tangible, real or personal property acquired in satisfaction, whether in whole or in part, of any asset embodying a payment obligation that is in default, whether secured or unsecured, if the ownership of the interest would be exempt otherwise as provided in subdivisions (14)(C)(i)-(v);
(D) For the purposes of subdivisions (14)(C)(iii) and (iv), an "independent person who is not acting on behalf of the owner" means: (i) At the time of the acquisition of the assets, the owner of the asset does not directly or indirectly own fifteen percent (15%) or more of the outstanding stock or, in the case of a partnership or limited liability company, fifteen percent (15%) or more of the capital or profits interest, of the entity from which the owner originally acquired the asset. In determining indirect ownership, an owner is deemed to own all of the stock, capital interest or profits interest owned by another person if the owner directly owns fifteen percent (15%) or more of the stock, capital interest or profits interest in that other person. Also, the owner is deemed to own all stock, capital interest and profits interest directly owned by any intermediary parties in the transaction, to the extent a fifteen percent (15%) or more chain of ownership of stock, capital interest or profits interest exists between the owner and any intermediary party; (ii) The entity from which the owner acquired the asset regularly sells, assigns or transfers interest in such assets to three (3) or more persons during the full twelve-month period immediately preceding the month of acquisition; and (iii) The entity from which the owner acquired the asset does not sell, assign or transfer ninety percent (90%) or more of its exempt assets to the owner during the full twelve-month period immediately preceding the month of acquisition;
(i) At the time of the acquisition of the assets, the owner of the asset does not directly or indirectly own fifteen percent (15%) or more of the outstanding stock or, in the case of a partnership or limited liability company, fifteen percent (15%) or more of the capital or profits interest, of the entity from which the owner originally acquired the asset. In determining indirect ownership, an owner is deemed to own all of the stock, capital interest or profits interest owned by another person if the owner directly owns fifteen percent (15%) or more of the stock, capital interest or profits interest in that other person. Also, the owner is deemed to own all stock, capital interest and profits interest directly owned by any intermediary parties in the transaction, to the extent a fifteen percent (15%) or more chain of ownership of stock, capital interest or profits interest exists between the owner and any intermediary party;
(ii) The entity from which the owner acquired the asset regularly sells, assigns or transfers interest in such assets to three (3) or more persons during the full twelve-month period immediately preceding the month of acquisition; and
(iii) The entity from which the owner acquired the asset does not sell, assign or transfer ninety percent (90%) or more of its exempt assets to the owner during the full twelve-month period immediately preceding the month of acquisition;
(E) A person shall not be considered to be "doing business in Tennessee" or "doing business within this state" for purposes of this part or part 21 of this chapter solely because of any one (1) of the following activities: (i) The presence of employees and/or product samples and/or other promotional materials at one (1) or more trade shows, exhibits, conventions, or similar events in this state for a total of not more than twenty (20) days per calendar year; provided, that the activities of the entity's employees while in Tennessee are limited to maintaining or facilitating the trade show or convention; the purchasing of goods on behalf of their employer; the solicitation of sales; and the gathering of samples, promotional material or other information offered at the event; (ii) Activities by publishers of magazines and books who contract with Tennessee printers for the printing of their magazines or books, when such activities in Tennessee are limited solely to activities having to do with the printing, storage, labeling and/or delivery to the United States mail or common carrier of such magazines or books; or the maintenance of raw materials with respect to such activities; or the maintenance of employees solely in connection with the production and quality control of such printing, storage, labeling and/or delivery; provided, that the publisher and printer are not affiliated with one another. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; (iii) Physical presence in this state of an out-of-state person's equipment, tooling, inventory, and employees on a temporary basis, when: (a) The activity in which such items and employees are engaged is not the pursuit, creation or maintenance, by the out-of-state person or any person that is affiliated with it, of a market in this state; (b) The equipment and tooling are not used, worked on or held in this state by a person that is affiliated with the out-of-state person; (c) The out-of-state person's employees have no control over the use or work done in this state by the in-state person; and (d) The extent and value of such items, the number of such employees, and the number of days the employees work in this state, in light of all the facts and circumstances, are qualitatively and quantitatively de minimis. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; or (iv) The temporary presence in this state of employees solely for the purpose of purchasing goods from vendors in this state for use in the employer's business out-of-state; provided, that the total number of days the employer has one (1) or more employees present in this state does not exceed thirty (30) per calendar year; and provided, further, that the employer does not furnish, directly or indirectly, any office in this state for their use;
(i) The presence of employees and/or product samples and/or other promotional materials at one (1) or more trade shows, exhibits, conventions, or similar events in this state for a total of not more than twenty (20) days per calendar year; provided, that the activities of the entity's employees while in Tennessee are limited to maintaining or facilitating the trade show or convention; the purchasing of goods on behalf of their employer; the solicitation of sales; and the gathering of samples, promotional material or other information offered at the event;
(ii) Activities by publishers of magazines and books who contract with Tennessee printers for the printing of their magazines or books, when such activities in Tennessee are limited solely to activities having to do with the printing, storage, labeling and/or delivery to the United States mail or common carrier of such magazines or books; or the maintenance of raw materials with respect to such activities; or the maintenance of employees solely in connection with the production and quality control of such printing, storage, labeling and/or delivery; provided, that the publisher and printer are not affiliated with one another. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent;
(iii) Physical presence in this state of an out-of-state person's equipment, tooling, inventory, and employees on a temporary basis, when: (a) The activity in which such items and employees are engaged is not the pursuit, creation or maintenance, by the out-of-state person or any person that is affiliated with it, of a market in this state; (b) The equipment and tooling are not used, worked on or held in this state by a person that is affiliated with the out-of-state person; (c) The out-of-state person's employees have no control over the use or work done in this state by the in-state person; and (d) The extent and value of such items, the number of such employees, and the number of days the employees work in this state, in light of all the facts and circumstances, are qualitatively and quantitatively de minimis. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; or
(a) The activity in which such items and employees are engaged is not the pursuit, creation or maintenance, by the out-of-state person or any person that is affiliated with it, of a market in this state;
(b) The equipment and tooling are not used, worked on or held in this state by a person that is affiliated with the out-of-state person;
(c) The out-of-state person's employees have no control over the use or work done in this state by the in-state person; and
(d) The extent and value of such items, the number of such employees, and the number of days the employees work in this state, in light of all the facts and circumstances, are qualitatively and quantitatively de minimis. Persons are affiliated with one another, if, either directly or indirectly, one controls the other, or if the persons are directly or indirectly controlled by a common parent; or
(iv) The temporary presence in this state of employees solely for the purpose of purchasing goods from vendors in this state for use in the employer's business out-of-state; provided, that the total number of days the employer has one (1) or more employees present in this state does not exceed thirty (30) per calendar year; and provided, further, that the employer does not furnish, directly or indirectly, any office in this state for their use;
(15) "Domestic person" means any person with more than twenty percent (20%) of the average of its property, payroll and receipts factors, as each factor is calculated for a separate entity under § 67-4-2111 , in the United States;
(16) "Final return status" means the status of any person or taxpayer that has commenced the process of effecting a surrender of charter, withdrawal of qualification to do business in this state, merger, consolidation, liquidation, complete sale, transfer or distribution of assets, conversion, dissolution, or any similar event that results in, or is intended to result in, the taxpayer ceasing to exist, or no longer being subject to the tax imposed by this part, or no longer having any substantial remaining business or financial activity;
(17) "Financial institution" means a holding company, any regulated financial corporation, a subsidiary of a holding company or a regulated financial corporation, an investment entity that is indirectly more than fifty percent (50%) owned by a holding company or a regulated financial corporation, or any other person that is carrying on the business of a financial institution. However, "financial institution" does not include insurance companies subject to tax under §§ 56-4-201 - 56-4-208, [former] 56-4-209 [repealed], 56-4-210 - 56-4-214;
(18) "Financial institution affiliated group" means any affiliated group in which more than fifty percent (50%) of the group's aggregate gross income, excluding dividends and receipts resulting from transactions between members, is derived from conducting the business of a financial institution as defined in subdivision (5)(A). For purposes of this subdivision (18), the computation of gross income of a member does not include income from nonrecurring, extraordinary transactions;
(19) "General partnership" means a partnership in which all partners, as defined by state law, are fully liable for the debts of, or the claims against, the partnership. For purposes of this subdivision (19), partners may be "fully liable" even though one (1) or more persons or individuals dealing with the partnership have by contract agreed to limit their claims against one (1) or more partners or against the partnership as a whole;
(20) "Gross receipts," "total gross receipts," "receipts," and "total receipts" mean, within the context of the statute in which used, all receipts from whatever sources derived before any deductions, but not including actual sales returns and allowances;
(21) "Holding company" means any corporation defined as a "bank holding company" under 12 U.S.C. § 1841(a) of the Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq.) or any corporation defined as a "savings and loan holding company," "multiple savings and loan holding company," or "diversified savings and loan holding company," under 12 U.S.C. § 1467a(a)(1) ;
(22) "Hospital" has the definition provided at § 68-11-201 ; provided, that, as used in this part, a "hospital" must be licensed as a hospital by the board of licensing health care facilities pursuant to title 68, chapter 11, part 2; and provided, further, that "hospital" does not include a nursing home, ambulatory surgical treatment center or other health care facility enumerated and defined in title 68, chapter 11, unless operated as a part of and in connection with a "hospital";
(23) "Hospital company" means a corporation or other entity subject to the taxes imposed under this part and part 21 of this chapter and that qualified before January 1, 1999, with the department as a hospital company as defined under prior law;
(24) (A) "Intangible expense" means an expense related to, or in connection with, the acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are allowed or allowable as deductions or costs in determining federal taxable income on a separate entity basis; (B) "Intangible expense" also means interest expenses directly or indirectly allowed as deductions or costs in determining federal taxable income on a separate entity basis to the extent such interest expenses are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property;
(A) "Intangible expense" means an expense related to, or in connection with, the acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are allowed or allowable as deductions or costs in determining federal taxable income on a separate entity basis;
(B) "Intangible expense" also means interest expenses directly or indirectly allowed as deductions or costs in determining federal taxable income on a separate entity basis to the extent such interest expenses are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, license, or any other disposition of intangible property;
(25) "Intangible income" means income related to, or in connection with, the acquisition, use, maintenance or management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are included or includable in determining federal taxable income;
(26) "Intangible property" means patents, patent applications, trade names, trademarks, service marks, franchise rights, copyrights, licenses, research, formulas, designs, patterns, processes, formats, and similar types of intangible assets;
(27) "Internal Revenue Code" means title 26 of the United States Code as effective during the year in which net earnings are determined under this part;
(28) "Investment entity" means any person that receives more than fifty percent (50%) of its gross income from investment securities and from the business of a financial institution;
(29) "Investment securities" means, for purposes of this section, any note, United States treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate debt securities, participations in securities backed by mortgages held by the United States or state government agencies, loan-backed securities, bonds, debentures, evidence of indebtedness, and other similar debt investments;
(30) "Key tenant" means any tenant, located within a qualified medical trade center, that leases and occupies a significant portion of the facility and is determined, in the sole discretion of the commissioner of economic and community development and the commissioner of revenue, to be essential to the initial establishment and viability of the trade center;
(31) "Nonbusiness earnings" means all earnings other than business earnings;
(32) "Not-for-profit" means any person described in § 401, § 408, § 408A, § 409, § 501, § 526, § 527, § 528, § 529 or § 530 of the Internal Revenue Code ( 26 U.S.C. § 401 , § 408 , § 408A , § 409 , § 501 , § 526 , § 527 , § 528 , § 529 or § 530 );
(33) "Obligated member" means a member or partner of an obligated member entity that is fully liable for the debts, obligations and liabilities of the entity, as provided in § 67-4-2008(b)-(d) , and that has filed appropriate documentation to that effect with the secretary of state;
(34) "Obligated member entity" means a limited liability company, limited partnership or limited liability partnership, all of whose members or partners are fully liable for the debts, obligations and liabilities of the entity, as provided in § 67-4-2008(b)-(d) , and that have filed appropriate documentation to that effect with the secretary of state;
(35) "Pass-through entity" means an S corporation, an entity treated as a partnership for federal income tax purposes, an entity treated as a trust for federal income tax purposes or a business entity that has a single owner and that is disregarded as an entity separate from its owner for federal income tax purposes, but not for purposes of this part and part 21 of this chapter;
(36) "Person" or "taxpayer" means every corporation, subchapter S corporation, limited liability company, professional limited liability company, registered limited liability partnership, professional registered limited liability partnership, limited partnership, cooperative, joint-stock association, business trust, regulated investment company, REIT, state-chartered or national bank, or state-chartered or federally chartered savings and loan association;
(37) "Publicly traded real estate investment trust" or "public REIT" means an entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code that files with the securities and exchange commission and whose shares are traded on a securities exchange that is either registered as a national securities exchange with the securities and exchange commission under § 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78f ) or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority;
(38) "Qualified commercial financing entity" means a person that qualified for the credit in § 67-6-224 that primarily finances wholesale and retail transactions related to the purchase or lease of industrial equipment, machinery, vehicles, or goods manufactured by its affiliates and is certified for that designation by the commissioner of revenue and the commissioner of economic and community development. Notwithstanding § 47-14-103 , a qualified commercial financing entity shall be allowed to charge a rate of interest not to exceed twenty-four percent (24%) per annum;
(39) "Qualified medical trade center" means any facility, located in a county with a metropolitan form of government, that is substantially composed of permanent and temporary show rooms for medical product suppliers as well as educational space and conference facilities for medical trade shows; provided, that such facility is constructed, expanded, or remodeled through an investment of more than two hundred fifty million dollars ($250,000,000) and contains more than one million square feet (1,000,000 sq. ft.) of space upon completion;
(40) "Qualified medical trade center relocation expenses" means those expenses that both the commissioner of revenue and the commissioner of economic and community development determine, in their sole discretion, are necessary to the creation of a permanent show room within a qualified medical trade center in conjunction with the initial establishment of such facility;
(41) "Qualified new or expanded warehouse or distribution facility" means a new or expanded facility for the storage or distribution of finished tangible personal property; provided, that the facility also meets all the qualifications necessary to allow the taxpayer to make purchases of material handling and racking systems exempt from sales and use tax under the definition of "industrial machinery" in § 67-6-102 ;
(42) "Real estate investment trust (REIT)" means an entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code;
(43) "Regulated financial corporation" means an institution, the deposits, shares, or accounts of which are insured under the Federal Deposit Insurance Act ( 12 U.S.C. § 1811 et seq.) or any institution that is a member of a federal home loan bank, any other bank or thrift institution incorporated or organized under the laws of any taxing jurisdiction, or any foreign country that is engaged in the business of receiving deposits, any corporation organized under 12 U.S.C. §§ 611 - 631 , Edge Act corporations, and any agency of a foreign depository as defined in 12 U.S.C. § 3101 ;
(44) "Sales" means all gross receipts of the taxpayer not allocated under this part;
(45) "Securities" means United States treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate stock and other securities, participations in securities backed by mortgages held by the United States or state government agencies, loan-backed securities and similar investments;
(46) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof;
(47) (A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part and part 21 of this chapter. Such connection includes, but is not limited to, the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; (iv) The taxpayer licenses intangible property for use by another party in this state and derives income from that use of intangible property in this state; or (v) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined under § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer; (B) Notwithstanding subdivision (47)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state"; (C) To the extent a company that is treated as a foreign corporation under the Internal Revenue Code has income effectively connected with a United States trade or business, such company's net earnings and net worth for purposes of the taxes imposed by this part and part 21 of this chapter shall be its net earnings and net worth connected with its United States trade or business, and only property used in, payroll attributable to, and receipts effectively connected with such company's United States trade or business shall be considered for purposes of calculating such company's apportionment fraction; (D) For purposes of subdivisions (47)(B) and (C), whether a company has income effectively connected with a United States trade or business and the amount of its net earnings and net worth connected with its United States trade or business shall be determined in accordance with the Internal Revenue Code;
(A) "Substantial nexus in this state" means any direct or indirect connection of the taxpayer to this state such that the taxpayer can be required under the Constitution of the United States to remit the tax imposed under this part and part 21 of this chapter. Such connection includes, but is not limited to, the following: (i) The taxpayer is organized or commercially domiciled in this state; (ii) The taxpayer owns or uses its capital in this state; (iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state; (iv) The taxpayer licenses intangible property for use by another party in this state and derives income from that use of intangible property in this state; or (v) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined under § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer;
(i) The taxpayer is organized or commercially domiciled in this state;
(ii) The taxpayer owns or uses its capital in this state;
(iii) The taxpayer has systematic and continuous business activity in this state that has produced gross receipts attributable to customers in this state;
(iv) The taxpayer licenses intangible property for use by another party in this state and derives income from that use of intangible property in this state; or
(v) The taxpayer has bright-line presence in this state. A person has bright-line presence in this state for a tax period if any of the following applies: (a) The taxpayer's total receipts in this state during the tax period, as determined under § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period; (b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or (c) The total amount paid in this state during the tax period by the taxpayer for compensation, determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer;
(a) The taxpayer's total receipts in this state during the tax period, as determined under § 67-4-2012 , exceed the lesser of five hundred thousand dollars ($500,000) or twenty-five percent (25%) of the taxpayer's total receipts everywhere during the tax period;
(b) The average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, as determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the average value of all the taxpayer's total real and tangible personal property; or
(c) The total amount paid in this state during the tax period by the taxpayer for compensation, determined under § 67-4-2012 , exceeds the lesser of fifty thousand dollars ($50,000) or twenty-five percent (25%) of the total compensation paid by the taxpayer;
(B) Notwithstanding subdivision (47)(A), no company that is treated as a foreign corporation under the Internal Revenue Code and that has no income effectively connected with a United States trade or business shall be considered to have a "substantial nexus in this state";
(C) To the extent a company that is treated as a foreign corporation under the Internal Revenue Code has income effectively connected with a United States trade or business, such company's net earnings and net worth for purposes of the taxes imposed by this part and part 21 of this chapter shall be its net earnings and net worth connected with its United States trade or business, and only property used in, payroll attributable to, and receipts effectively connected with such company's United States trade or business shall be considered for purposes of calculating such company's apportionment fraction;
(D) For purposes of subdivisions (47)(B) and (C), whether a company has income effectively connected with a United States trade or business and the amount of its net earnings and net worth connected with its United States trade or business shall be determined in accordance with the Internal Revenue Code;
(48) "Taxing jurisdiction" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico or a territory or possession of the United States;
(49) "Tennessee historic property preservation or rehabilitation entity" means an entity that satisfies all of the following requirements: (A) The Tennessee historic property preservation or rehabilitation entity must be a corporation or limited liability company organized under the laws of Tennessee, that is directly or indirectly controlled by a not-for-profit entity, as defined in this part. Such not-for-profit entity must directly or indirectly hold not less than fifty-one percent (51%) of the Tennessee historic property preservation or rehabilitation entity's ownership interest and voting control; (B) The Tennessee historic property preservation or rehabilitation entity must be organized for the purpose of preserving or rehabilitating an historic property listed on the National Register of Historic Places; (C) The not-for-profit entity must receive approval of its historic certification application-Part 3 by the United States department of the interior national park service; and (D) The historic property must be used in the performance of the exempt activity or function of the controlling not-for-profit entity; and
(A) The Tennessee historic property preservation or rehabilitation entity must be a corporation or limited liability company organized under the laws of Tennessee, that is directly or indirectly controlled by a not-for-profit entity, as defined in this part. Such not-for-profit entity must directly or indirectly hold not less than fifty-one percent (51%) of the Tennessee historic property preservation or rehabilitation entity's ownership interest and voting control;
(B) The Tennessee historic property preservation or rehabilitation entity must be organized for the purpose of preserving or rehabilitating an historic property listed on the National Register of Historic Places;
(C) The not-for-profit entity must receive approval of its historic certification application-Part 3 by the United States department of the interior national park service; and
(D) The historic property must be used in the performance of the exempt activity or function of the controlling not-for-profit entity; and
(50) "Unitary business" or "unitary group" means business activities or operations of financial institutions that are of mutual benefit, dependent upon, or contributory to one another, individually or as a group, in transacting the business of a financial institution. "Unitary business" may be applied within a single legal entity or between multiple entities. "Unitary business" or "unitary group" includes those entities that are engaged in a unitary business transacted wholly in, or in and out of the state of Tennessee, even if some of the entities would not be subject to tax in this state, if considered apart from their unitary group.
Amended by 2022 Tenn. Acts, ch. 1139, s 1, eff. 7/1/2022.
Amended by 2015 Tenn. Acts, ch. 514, s 6, eff. 1/1/2016.
Amended by 2015 Tenn. Acts, ch. 504, s 3, eff. 7/1/2015.
Amended by 2015 Tenn. Acts, ch. 504, s 2, eff. 7/1/2015.
Amended by 2013 Tenn. Acts, ch. 423, s 5, eff. 5/16/2013.
Amended by 2013 Tenn. Acts, ch. 321, s 1, eff. 5/13/2013.
Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 1 - 7, 45; 2003 , ch. 355, §§ 37, 39-41; 2003 , ch. 418, §§ 10, 12-14; 2004, ch. 924, § 1; 2004, ch. 932, § 1; 2005, ch. 499, §§ 2, 29, 75, 86; 2006, ch. 1019, §§ 6, 11, 30, 31; 2007 , ch. 602, § 7; 2008 , ch. 1106, §§ 35, 45; 2009 , ch. 530, §§ 26, 34, 105; 2010 , ch. 1134, §§ 5, 6, 20, 24, 38; 2012 , ch. 842, § 1.
Tenn. Code Ann. § 67-4-606 — TN Code / Title 67 / Chapter 4 / Section 67-4-606
Apportionment of revenue
Status: in_force

(a) The privilege tax collected under this part shall be paid into the state treasury and the proceeds shall be divided as follows: (1) Three hundred twenty ten thousandths percent (0.0320%) of the proceeds shall be deposited in a fund established for the operation of the Tennessee corrections institute. This amount shall not revert to the state general fund and shall not be subject to impoundment or allotment reserve, but shall be managed on a revolving non-quarter basis; (2) Four and four thousand four hundred thirty ten thousandths percent (4.4430%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the departments of education and safety to promote and expand driver education through the public schools of this state, and to promote safety on the highways, subject to the general law with respect to the allocation of funds by the commissioner of finance and administration as follows: (A) Seventy-five percent (75%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of education to be used only for the purposes as set forth in this subdivision (a)(2); and (B) Twenty-five percent (25%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of safety to be used only for the purposes as set forth in this subdivision (a)(2); (3) Thirty-two and one thousand five hundred two ten thousandths percent (32.1502%) of the proceeds shall be allocated to the general fund; (4) Six thousand five hundred fifty-three ten thousandths percent (0.6553%) of the proceeds shall be held in the state treasury and disbursed only upon request of the administrative director of the courts and used only for the purpose of funding the state court clerks' conference established in § 18-1-501 . No state funds shall be obligated or expended pursuant to this section for the purpose of funding the state court clerk's conference, unless such meeting is held in a state facility when practical. In the event it is not practical to hold such meeting in a state park, the reasons and cost therefor must be set forth in writing by the affected agency head and shall be forwarded to the commissioner of finance and administration; (5) Eight thousand four hundred six ten thousandths percent (0.8406%) of the proceeds shall be allocated to the victims of crime assistance fund, created pursuant to § 9-4-205 ; (6) Twenty-four and twenty ten thousandths percent (24.0020%) of the proceeds shall be allocated to the criminal injuries compensation fund; (7) One and three thousand seven hundred fifty-five ten thousandths percent (1.3755%) of the proceeds shall be allocated to the victims of drunk drivers compensation fund; (8) Three and seven thousand six hundred fifty-three ten thousandths percent (3.7653%) of the proceeds shall be transferred to the state treasury and used entirely to fund § 40-14-207 ; (9) Five thousand five hundred twenty-nine ten thousandths percent (0.5529%) of the proceeds shall be credited to the account of the administrative director of the courts, to be used to defray the expenses of serving the general sessions courts and the Tennessee general sessions judges' conference; (10) Nineteen and two thousand nine hundred two ten thousandths percent (19.2902%) of the proceeds shall be transferred to the state treasurer, who shall credit that amount to the public defender program; (11) Seven and four thousand seven hundred one ten thousandths percent (7.4701%) of the proceeds shall be credited to the civil legal representation of indigents fund, authorized and created under § 16-3-808 ; (12) Two and three thousand fifty-six ten thousandths percent (2.3056%) of the proceeds shall be deposited in the state general fund and earmarked for grants to local governments for the purchase and maintenance of and line charges for electronic fingerprint imaging systems. These grants shall be awarded and administered by the office of criminal justice in the department of finance and administration. The general assembly may appropriate a portion of the earmarked funds derived from this subdivision (a)(12) to the Tennessee bureau of investigation for the purchase, installation, maintenance, and line charges for electronic fingerprint imaging systems. Prior to the purchase of any electronic fingerprint imaging system, a law enforcement agency or local government shall obtain certification from the Tennessee bureau of investigation that such equipment is compatible with the Tennessee bureau of investigation's and the federal bureau of investigation's integrated automated fingerprint identification system; (13) Three thousand four hundred twenty-six ten thousandths percent (0.3426%) of the proceeds shall be credited to the sex offender treatment fund, created pursuant to § 39-13-708 ; and (14) Two and seven thousand seven hundred forty-seven ten thousandths percent (2.7747%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the department of education to promote and expand driver education through the public schools of this state. (b) Notwithstanding any provision of this section to the contrary, the total amount allocated to a fund or program for any fiscal year pursuant to subsection (a), except the general fund, shall not be less than the amount allocated to such fund or program during the fiscal year ending June 30, 2005; provided, that, if the statewide amount of litigation tax collected during such fiscal year is less than the amount collected during the fiscal year ending June 30, 2005, then the total amount allocated to a fund or program for that fiscal year shall be reduced by a percentage equal to the percentage reduction in statewide litigation tax collections for that fiscal year. Acts 1981, ch. 488, § 1; 1982, ch. 725, § 1; 1983, ch. 426, § 1; 1983, ch. 449, §§ 1, 2, 4; T.C.A., § 67-4102, Item J; Acts 1986, ch. 880, § 4; 1987, ch. 54, § 16; 1987, ch. 110, § 5; 1992, ch. 761, §§ 7, 8; 1993, ch. 66, § 73; 1998, ch. 946, §§ 1, 2; 2000, ch. 983, § 6; 2005, ch. 429, § 26; 2006, ch. 989, §§ 4, 5; 2007, ch. 234, §§ 1, 2.
(a) The privilege tax collected under this part shall be paid into the state treasury and the proceeds shall be divided as follows: (1) Three hundred twenty ten thousandths percent (0.0320%) of the proceeds shall be deposited in a fund established for the operation of the Tennessee corrections institute. This amount shall not revert to the state general fund and shall not be subject to impoundment or allotment reserve, but shall be managed on a revolving non-quarter basis; (2) Four and four thousand four hundred thirty ten thousandths percent (4.4430%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the departments of education and safety to promote and expand driver education through the public schools of this state, and to promote safety on the highways, subject to the general law with respect to the allocation of funds by the commissioner of finance and administration as follows: (A) Seventy-five percent (75%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of education to be used only for the purposes as set forth in this subdivision (a)(2); and (B) Twenty-five percent (25%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of safety to be used only for the purposes as set forth in this subdivision (a)(2); (3) Thirty-two and one thousand five hundred two ten thousandths percent (32.1502%) of the proceeds shall be allocated to the general fund; (4) Six thousand five hundred fifty-three ten thousandths percent (0.6553%) of the proceeds shall be held in the state treasury and disbursed only upon request of the administrative director of the courts and used only for the purpose of funding the state court clerks' conference established in § 18-1-501 . No state funds shall be obligated or expended pursuant to this section for the purpose of funding the state court clerk's conference, unless such meeting is held in a state facility when practical. In the event it is not practical to hold such meeting in a state park, the reasons and cost therefor must be set forth in writing by the affected agency head and shall be forwarded to the commissioner of finance and administration; (5) Eight thousand four hundred six ten thousandths percent (0.8406%) of the proceeds shall be allocated to the victims of crime assistance fund, created pursuant to § 9-4-205 ; (6) Twenty-four and twenty ten thousandths percent (24.0020%) of the proceeds shall be allocated to the criminal injuries compensation fund; (7) One and three thousand seven hundred fifty-five ten thousandths percent (1.3755%) of the proceeds shall be allocated to the victims of drunk drivers compensation fund; (8) Three and seven thousand six hundred fifty-three ten thousandths percent (3.7653%) of the proceeds shall be transferred to the state treasury and used entirely to fund § 40-14-207 ; (9) Five thousand five hundred twenty-nine ten thousandths percent (0.5529%) of the proceeds shall be credited to the account of the administrative director of the courts, to be used to defray the expenses of serving the general sessions courts and the Tennessee general sessions judges' conference; (10) Nineteen and two thousand nine hundred two ten thousandths percent (19.2902%) of the proceeds shall be transferred to the state treasurer, who shall credit that amount to the public defender program; (11) Seven and four thousand seven hundred one ten thousandths percent (7.4701%) of the proceeds shall be credited to the civil legal representation of indigents fund, authorized and created under § 16-3-808 ; (12) Two and three thousand fifty-six ten thousandths percent (2.3056%) of the proceeds shall be deposited in the state general fund and earmarked for grants to local governments for the purchase and maintenance of and line charges for electronic fingerprint imaging systems. These grants shall be awarded and administered by the office of criminal justice in the department of finance and administration. The general assembly may appropriate a portion of the earmarked funds derived from this subdivision (a)(12) to the Tennessee bureau of investigation for the purchase, installation, maintenance, and line charges for electronic fingerprint imaging systems. Prior to the purchase of any electronic fingerprint imaging system, a law enforcement agency or local government shall obtain certification from the Tennessee bureau of investigation that such equipment is compatible with the Tennessee bureau of investigation's and the federal bureau of investigation's integrated automated fingerprint identification system; (13) Three thousand four hundred twenty-six ten thousandths percent (0.3426%) of the proceeds shall be credited to the sex offender treatment fund, created pursuant to § 39-13-708 ; and (14) Two and seven thousand seven hundred forty-seven ten thousandths percent (2.7747%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the department of education to promote and expand driver education through the public schools of this state.
(1) Three hundred twenty ten thousandths percent (0.0320%) of the proceeds shall be deposited in a fund established for the operation of the Tennessee corrections institute. This amount shall not revert to the state general fund and shall not be subject to impoundment or allotment reserve, but shall be managed on a revolving non-quarter basis;
(2) Four and four thousand four hundred thirty ten thousandths percent (4.4430%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the departments of education and safety to promote and expand driver education through the public schools of this state, and to promote safety on the highways, subject to the general law with respect to the allocation of funds by the commissioner of finance and administration as follows: (A) Seventy-five percent (75%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of education to be used only for the purposes as set forth in this subdivision (a)(2); and (B) Twenty-five percent (25%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of safety to be used only for the purposes as set forth in this subdivision (a)(2);
(A) Seventy-five percent (75%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of education to be used only for the purposes as set forth in this subdivision (a)(2); and
(B) Twenty-five percent (25%) of the amount provided for in this subdivision (a)(2) shall be allocated to the department of safety to be used only for the purposes as set forth in this subdivision (a)(2);
(3) Thirty-two and one thousand five hundred two ten thousandths percent (32.1502%) of the proceeds shall be allocated to the general fund;
(4) Six thousand five hundred fifty-three ten thousandths percent (0.6553%) of the proceeds shall be held in the state treasury and disbursed only upon request of the administrative director of the courts and used only for the purpose of funding the state court clerks' conference established in § 18-1-501 . No state funds shall be obligated or expended pursuant to this section for the purpose of funding the state court clerk's conference, unless such meeting is held in a state facility when practical. In the event it is not practical to hold such meeting in a state park, the reasons and cost therefor must be set forth in writing by the affected agency head and shall be forwarded to the commissioner of finance and administration;
(5) Eight thousand four hundred six ten thousandths percent (0.8406%) of the proceeds shall be allocated to the victims of crime assistance fund, created pursuant to § 9-4-205 ;
(6) Twenty-four and twenty ten thousandths percent (24.0020%) of the proceeds shall be allocated to the criminal injuries compensation fund;
(7) One and three thousand seven hundred fifty-five ten thousandths percent (1.3755%) of the proceeds shall be allocated to the victims of drunk drivers compensation fund;
(8) Three and seven thousand six hundred fifty-three ten thousandths percent (3.7653%) of the proceeds shall be transferred to the state treasury and used entirely to fund § 40-14-207 ;
(9) Five thousand five hundred twenty-nine ten thousandths percent (0.5529%) of the proceeds shall be credited to the account of the administrative director of the courts, to be used to defray the expenses of serving the general sessions courts and the Tennessee general sessions judges' conference;
(10) Nineteen and two thousand nine hundred two ten thousandths percent (19.2902%) of the proceeds shall be transferred to the state treasurer, who shall credit that amount to the public defender program;
(11) Seven and four thousand seven hundred one ten thousandths percent (7.4701%) of the proceeds shall be credited to the civil legal representation of indigents fund, authorized and created under § 16-3-808 ;
(12) Two and three thousand fifty-six ten thousandths percent (2.3056%) of the proceeds shall be deposited in the state general fund and earmarked for grants to local governments for the purchase and maintenance of and line charges for electronic fingerprint imaging systems. These grants shall be awarded and administered by the office of criminal justice in the department of finance and administration. The general assembly may appropriate a portion of the earmarked funds derived from this subdivision (a)(12) to the Tennessee bureau of investigation for the purchase, installation, maintenance, and line charges for electronic fingerprint imaging systems. Prior to the purchase of any electronic fingerprint imaging system, a law enforcement agency or local government shall obtain certification from the Tennessee bureau of investigation that such equipment is compatible with the Tennessee bureau of investigation's and the federal bureau of investigation's integrated automated fingerprint identification system;
(13) Three thousand four hundred twenty-six ten thousandths percent (0.3426%) of the proceeds shall be credited to the sex offender treatment fund, created pursuant to § 39-13-708 ; and
(14) Two and seven thousand seven hundred forty-seven ten thousandths percent (2.7747%) of the proceeds shall be credited to a separate reserve account in the general fund, to be used only by the department of education to promote and expand driver education through the public schools of this state.
(b) Notwithstanding any provision of this section to the contrary, the total amount allocated to a fund or program for any fiscal year pursuant to subsection (a), except the general fund, shall not be less than the amount allocated to such fund or program during the fiscal year ending June 30, 2005; provided, that, if the statewide amount of litigation tax collected during such fiscal year is less than the amount collected during the fiscal year ending June 30, 2005, then the total amount allocated to a fund or program for that fiscal year shall be reduced by a percentage equal to the percentage reduction in statewide litigation tax collections for that fiscal year.
Acts 1981, ch. 488, § 1; 1982, ch. 725, § 1; 1983, ch. 426, § 1; 1983, ch. 449, §§ 1, 2, 4; T.C.A., § 67-4102, Item J; Acts 1986, ch. 880, § 4; 1987, ch. 54, § 16; 1987, ch. 110, § 5; 1992, ch. 761, §§ 7, 8; 1993, ch. 66, § 73; 1998, ch. 946, §§ 1, 2; 2000, ch. 983, § 6; 2005, ch. 429, § 26; 2006, ch. 989, §§ 4, 5; 2007, ch. 234, §§ 1, 2.
Tenn. Code Ann. § 67-5-607 — TN Code / Title 67 / Chapter 5 / Section 67-5-607
Emergency response frameworks - Joint preliminary damage assessments - Rights of assessors of property
Status: in_force

(a) Countywide emergency response frameworks must include assessors of property at the option of an assessor to monitor events related to disasters or emergencies that have affected or have the potential to affect the condition of real or tangible personal property within individual assessors' jurisdictions. (b) Assessors of property and county emergency management officials shall coordinate when their respective jurisdictions conduct joint preliminary damage assessments. Final copies of joint preliminary damage assessments must be made available to assessors upon request. (c) Assessors of property, through coordination with county emergency management officials, have unrestricted rights in the performance of official duties to enter and inspect property within disaster areas to include all property having been affected or potentially affected by disaster or other related events. Added by 2023 Tenn. Acts, ch. 259, s 1, eff. 4/28/2023.
(a) Countywide emergency response frameworks must include assessors of property at the option of an assessor to monitor events related to disasters or emergencies that have affected or have the potential to affect the condition of real or tangible personal property within individual assessors' jurisdictions.
(b) Assessors of property and county emergency management officials shall coordinate when their respective jurisdictions conduct joint preliminary damage assessments. Final copies of joint preliminary damage assessments must be made available to assessors upon request.
(c) Assessors of property, through coordination with county emergency management officials, have unrestricted rights in the performance of official duties to enter and inspect property within disaster areas to include all property having been affected or potentially affected by disaster or other related events.
Added by 2023 Tenn. Acts, ch. 259, s 1, eff. 4/28/2023.
Tenn. Code Ann. § 67-6-505 — TN Code / Title 67 / Chapter 6 / Section 67-6-505
Alternative filing and payments
Status: in_force

(a) The commissioner is specifically authorized to establish by rule periodic filing and payment dates, other than monthly, in those instances where the commissioner deems it to be in the best interests of the state to do so. (b) In cases where the commissioner determines, based on the best information available, that a taxpayer either has or may have an average monthly liability of five hundred dollars ($500) or more, the commissioner shall require advance estimated payments of tax in such amounts as the commissioner deems necessary to protect the state's interest, as a condition precedent to the payment and filing of tax returns on any basis other than monthly. (c) (1) Notwithstanding § 67-6-504(a) , dealers whose sales and use tax liability for twelve (12) consecutive months has averaged one thousand dollars ($1,000) or less per month, adjusted every five (5) years to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers, are authorized to file monthly or quarterly. (2) Any sales and use tax liability amount that is adjusted for inflation in accordance with subdivision (c)(1) must be rounded to the nearest ten dollars ($10.00), and the first adjustment for inflation must commence on January 1, 2026. Amended by 2021 Tenn. Acts, ch. 275, s 1, eff. 7/1/2021. Acts 1947, ch. 3, § 8; 1949, ch. 245, § 3; C. Supp. 1950, § 1248.66 (Williams, § 1328.30); Acts 1965, ch. 4, § 1; 1969, ch. 164, §§ 1, 2; 1970, ch. 360, § 1; 1977, ch. 64, § 1; 1980, ch. 885, § 13; 1983, ch. 238, §§ 1, 2; T.C.A. (orig. ed.), § 67-3026; Acts 1986, ch. 571, § 1.
(a) The commissioner is specifically authorized to establish by rule periodic filing and payment dates, other than monthly, in those instances where the commissioner deems it to be in the best interests of the state to do so.
(b) In cases where the commissioner determines, based on the best information available, that a taxpayer either has or may have an average monthly liability of five hundred dollars ($500) or more, the commissioner shall require advance estimated payments of tax in such amounts as the commissioner deems necessary to protect the state's interest, as a condition precedent to the payment and filing of tax returns on any basis other than monthly.
(c) (1) Notwithstanding § 67-6-504(a) , dealers whose sales and use tax liability for twelve (12) consecutive months has averaged one thousand dollars ($1,000) or less per month, adjusted every five (5) years to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers, are authorized to file monthly or quarterly. (2) Any sales and use tax liability amount that is adjusted for inflation in accordance with subdivision (c)(1) must be rounded to the nearest ten dollars ($10.00), and the first adjustment for inflation must commence on January 1, 2026.
(1) Notwithstanding § 67-6-504(a) , dealers whose sales and use tax liability for twelve (12) consecutive months has averaged one thousand dollars ($1,000) or less per month, adjusted every five (5) years to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers, are authorized to file monthly or quarterly.
(2) Any sales and use tax liability amount that is adjusted for inflation in accordance with subdivision (c)(1) must be rounded to the nearest ten dollars ($10.00), and the first adjustment for inflation must commence on January 1, 2026.
Amended by 2021 Tenn. Acts, ch. 275, s 1, eff. 7/1/2021.
Acts 1947, ch. 3, § 8; 1949, ch. 245, § 3; C. Supp. 1950, § 1248.66 (Williams, § 1328.30); Acts 1965, ch. 4, § 1; 1969, ch. 164, §§ 1, 2; 1970, ch. 360, § 1; 1977, ch. 64, § 1; 1980, ch. 885, § 13; 1983, ch. 238, §§ 1, 2; T.C.A. (orig. ed.), § 67-3026; Acts 1986, ch. 571, § 1.
Tenn. Code Ann. § 67-4-1908 — TN Code / Title 67 / Chapter 4 / Section 67-4-1908
Local tax for the convention center fund
Status: in_force

(a) (1) In addition to the state tax provided in § 67-4-1901 , a metropolitan government having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, is authorized to levy a surcharge or tax of one percent (1%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck, or trailer for a period of five (5) days or less; provided, that the surcharge or tax shall not apply to any automobile rented as a replacement vehicle, the cost of which is covered by insurance or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced, or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is the renter. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales tax imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided by § 67-4-1906 . The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue and of the remainder of this chapter. (2) The surcharge or tax in subdivision (a)(1) shall only be effective upon the adoption of an ordinance by the metropolitan council to impose the surcharge or tax. (b) All revenue received by the metropolitan government from the surcharge or tax in subsection (a) shall be deposited into a metropolitan fund entitled "the convention center fund," which shall be used for the purpose of paying costs incurred in modification or construction of a publicly owned convention center in excess of four hundred million dollars ($400,000,000) of cost within the territory of the metropolitan government. If the revenue from the surcharge or tax in any fiscal year exceeds the total of the debt service requirements for that year, the surplus revenue thus accruing shall be retained by the metropolitan government as a reserve fund for future debt service requirements. (c) In the event the total bonded indebtedness incurred for the construction of the convention center facility by the metropolitan government shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, the metropolitan government's taxing resolution shall be repealed and this surcharge or tax shall no longer be levied; provided, however, that any funds remaining in the reserve fund after all obligations imposed under this section have been fulfilled, shall be used by the governmental board or agency responsible for operation of the convention center for use by it in the promotion and advertisement of the convention center facilities. (d) For the purposes of this section, "convention center" means any land, improvement, structure, building or part of a building comprised of facilities for conventions, public assemblies, conferences, trade exhibitions or other business, social, cultural, scientific and public interest events, along with any associated hotel accommodations; transportation infrastructure; tourism, theatre, retail business and commercial office space facilities; parking facilities or any other structure or facility constructed, leased, equipped, renovated or acquired for any of the purposes set forth in this chapter, and also includes, but is not limited to, parks, greenways, open spaces, roads, streets, highways, curbs, bridges, flood control facilities and utility services, such as water, sanitary sewer, electricity, gas and natural gas and telecommunications that are constructed, leased, equipped, renovated or acquired as a supporting system or facility for any of the purposes set forth in title 7, chapter 89; provided, that any such supporting system or facility is dedicated for public use. Acts 2007, ch. 422, § 5; 2009, ch. 474, § 8.
(a) (1) In addition to the state tax provided in § 67-4-1901 , a metropolitan government having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, is authorized to levy a surcharge or tax of one percent (1%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck, or trailer for a period of five (5) days or less; provided, that the surcharge or tax shall not apply to any automobile rented as a replacement vehicle, the cost of which is covered by insurance or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced, or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is the renter. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales tax imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided by § 67-4-1906 . The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue and of the remainder of this chapter. (2) The surcharge or tax in subdivision (a)(1) shall only be effective upon the adoption of an ordinance by the metropolitan council to impose the surcharge or tax.
(1) In addition to the state tax provided in § 67-4-1901 , a metropolitan government having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, is authorized to levy a surcharge or tax of one percent (1%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck, or trailer for a period of five (5) days or less; provided, that the surcharge or tax shall not apply to any automobile rented as a replacement vehicle, the cost of which is covered by insurance or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced, or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is the renter. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales tax imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided by § 67-4-1906 . The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue and of the remainder of this chapter.
(2) The surcharge or tax in subdivision (a)(1) shall only be effective upon the adoption of an ordinance by the metropolitan council to impose the surcharge or tax.
(b) All revenue received by the metropolitan government from the surcharge or tax in subsection (a) shall be deposited into a metropolitan fund entitled "the convention center fund," which shall be used for the purpose of paying costs incurred in modification or construction of a publicly owned convention center in excess of four hundred million dollars ($400,000,000) of cost within the territory of the metropolitan government. If the revenue from the surcharge or tax in any fiscal year exceeds the total of the debt service requirements for that year, the surplus revenue thus accruing shall be retained by the metropolitan government as a reserve fund for future debt service requirements.
(c) In the event the total bonded indebtedness incurred for the construction of the convention center facility by the metropolitan government shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, the metropolitan government's taxing resolution shall be repealed and this surcharge or tax shall no longer be levied; provided, however, that any funds remaining in the reserve fund after all obligations imposed under this section have been fulfilled, shall be used by the governmental board or agency responsible for operation of the convention center for use by it in the promotion and advertisement of the convention center facilities.
(d) For the purposes of this section, "convention center" means any land, improvement, structure, building or part of a building comprised of facilities for conventions, public assemblies, conferences, trade exhibitions or other business, social, cultural, scientific and public interest events, along with any associated hotel accommodations; transportation infrastructure; tourism, theatre, retail business and commercial office space facilities; parking facilities or any other structure or facility constructed, leased, equipped, renovated or acquired for any of the purposes set forth in this chapter, and also includes, but is not limited to, parks, greenways, open spaces, roads, streets, highways, curbs, bridges, flood control facilities and utility services, such as water, sanitary sewer, electricity, gas and natural gas and telecommunications that are constructed, leased, equipped, renovated or acquired as a supporting system or facility for any of the purposes set forth in title 7, chapter 89; provided, that any such supporting system or facility is dedicated for public use.
Acts 2007, ch. 422, § 5; 2009, ch. 474, § 8.