Tenn. Code Ann. § 67-5-601 — TN Code / Title 67 / Chapter 5 / Section 67-5-601
General policy - Legislative findings
Status: in_force

(a) The value of all property shall be ascertained from the evidence of its sound, intrinsic and immediate value, for purposes of sale between a willing seller and a willing buyer without consideration of speculative values, and when appropriate, subject to the Agricultural, Forest and Open Space Land Act of 1976, compiled in part 10 of this chapter. (b) It is the legislative intent that no appraisal under this part shall be influenced by inflated values resulting from speculative purchases in particular areas in anticipation of uncertain future real estate markets; but all property of every kind shall be appraised according to its sound, intrinsic and immediate economic value, which shall be ascertained in accordance with such official assessment manuals as may be promulgated and issued by the state division of property assessments and approved by the state board of equalization pursuant to law. (c) (1) The general assembly finds that the increased market value of certain residential property zoned for commercial use has caused an increase in taxes to the extent that citizens are faced with the necessity of selling dwelling houses in which they have lived for many years. The general assembly finds that present use valuation has been extended to others, and is warranted under certain circumstances to relieve the burden of increased taxation to residential owners. (2) It is the policy of this state that the owners of residential property who have lived on that property for a significant period of time should be allowed to continue to live on that property without a disproportionate increase in taxes due to the property being zoned for commercial use. (3) For the purposes of this subsection (c): (A) "Dwelling house" means a residence occupied by the owner of an estate in that property, with such residence being zoned for commercial use, used solely for residential purposes, and occupied by that owner or a person to whom the current owner is a lineal descendant for a period of twenty-five (25) years or more, together with the real estate upon which it is situated up to a maximum five (5) acres; and (B) "Owner" means a citizen and resident of Tennessee who occupies the citizen's or resident's dwelling house, as opposed to occupying any other residence, for at least nine (9) months out of each calendar year. (4) Any owner of a dwelling house may make application to the assessor of property of the county in which the property is located for its classification under this subsection (c). Property that has been determined by the assessor of property to qualify under this subsection (c) shall be valued for ad valorem tax purposes at its market value for residential purposes. The assessment on such property shall include the entire year in which the land is classified under this subsection (c). Any person who is denied such classification shall have the same rights and remedies for appeal and relief as are provided taxpayers for any action of assessors of property. (5) Should the use or ownership of the property change so that it no longer qualifies under this subsection (c), then the property owner shall have the duty of informing the assessor of property. Upon discovering that a property no longer qualifies for classification under this subsection (c), the assessor of property shall reclassify the property and shall value the property according to its current market value for subsequent tax years. In the event such change in use or ownership does not timely come to the attention of the assessor of property, and upon the assessor discovering that the property no longer qualifies, such reclassification shall affect each year that the property has failed to qualify, and the taxpayer shall be liable for the difference in taxes, including penalty and interest. (6) It is the legislative intent that the twenty-five-year time period is an integral part of this subsection (c). If this provision is held by a court of competent jurisdiction to be an unreasonable classification or otherwise declared unconstitutional, then this entire subsection (c) shall be null and void. (7) The unmarried spouse of a deceased owner, occupying the dwelling house as a surviving joint tenant or tenant by the entireties, may continue to reside in the dwelling house without disqualifying the property from the benefits of this subsection (c). The term of occupancy by that spouse shall not be deemed to interrupt the twenty-five-year time period required for continued eligibility of the property for the benefits of this subsection (c). (d) The general assembly finds that due to the abundance of limestone, sand and gravel in this state and the difficulty in valuing the contributory interest in limestone, sand and gravel that such contributory interest in limestone, sand and gravel shall be deemed to have no value for property tax purposes. This does not affect the commercial classification of real property used for quarry purposes. (e) (1) The general assembly finds that any property that generates electricity using green sources such as geothermal, hydrogen, solar or wind, is generally capable of producing less electricity than conventional sources due to uncertain or intermittent energy sources or other factors, that net operating income will be affected by unusual cost and market conditions, and that the commercially competitive disadvantage of these green energy source properties evidences that their sound, intrinsic and immediate value is significantly less than their total installed costs. The general assembly further finds that unless these circumstances are considered in the determination of value for tax purposes under this chapter, investment in property to generate electricity from green sources will be unreasonably discouraged, denying the citizens of Tennessee the environmental benefits associated with the greater use of these domestic renewable energy sources for power generation. (2) Based on the foregoing findings, the sound, intrinsic and immediate value of green energy source property should not initially exceed a percentage of total installed costs equal to the ratio of projected electricity output over a period of one (1) year to the maximum capacity of the property, as follows: (A) The sound, intrinsic and immediate value of wind source property should not initially exceed one-third (1/3) of total installed costs; (B) The sound, intrinsic and immediate value of solar source property should not initially exceed twelve and one-half percent (12.5%) of total installed costs; and (C) The sound, intrinsic and immediate value of other green source property should not initially exceed its appropriate capacity factor as determined by the state board of equalization in consultation with the department of environment and conservation. (3) The assessor of property, or the comptroller of the treasury, in the case of public utility property, shall take the foregoing findings into account in determining the sound, intrinsic and immediate value of green source property when the property is initially appraised and each time the property is reappraised. A copy of the green energy production facility certification issued by the department of environment and conservation, or filing of a schedule or statement pursuant to § 67-5-1303 , effective as of January 1 of the year for which valuation under this subsection (e) is claimed, shall be required and shall be provided by the property owner to the comptroller's office by March 1 of the first year for which valuation under this subsection (e) is claimed. The department of environment and conservation shall report each month to the comptroller of the treasury a listing of certifications approved in the preceding month, and shall provide copies of certification records to the comptroller of the treasury on request. On or before the scheduled reappraisal in each county, the comptroller of the treasury shall advise the assessor of known locations of certified or other green energy property and whether the property is assessable locally or centrally. (f) The general assembly finds that any public utility property or commercial and industrial property that is used to engage in the fueling of natural gas vehicles and that is a certified alternative fueling site as described in the definition of "certified green energy production facility" in § 67-4-2004 , is generally capable of fueling fewer types of vehicles due to limited availability from original equipment manufacturers, that use of such alternative, domestically produced transportation fuels should be encouraged to improve air quality and to enhance our nation's energy security, and immediate economic value for all purposes under this chapter should not initially exceed thirty percent (30%) of its total installed costs. The general assembly further finds that, unless the findings are considered in the determination of the sound, intrinsic, and immediate economic value of such property for all purposes under this chapter, investment in property for fueling alternative fuel vehicles will be unreasonably discouraged, denying the citizens of this state the environmental benefits and domestic energy security associated with the use of natural gas as a transportation fuel. The assessor of property, in assessing any such commercial and industrial property, or the comptroller of the treasury, in assessing any such public utility property, that engages in the fueling of motor vehicles with natural gas, shall take these findings by the general assembly into account in determining the sound, intrinsic, and immediate economic value of such property, when the property is initially appraised and each time the property is reappraised. A copy of the facility certification issued by the department of environment and conservation shall be required in order to qualify for such valuation. The valuation of personal property under this section shall also apply to machinery and equipment utilized in a natural gas vehicle fueling station. Such equipment shall include, but not be limited to, storage vessels, compressors, dryers, dispensers, piping, compressed or liquefied gas appliances, or any other item that is installed by a natural gas provider. Amended by 2015 Tenn. Acts, ch. 471,s 1, eff. 5/18/2015. Amended by 2013 Tenn. Acts, ch. 423,s 4, eff. 5/16/2013. Amended by 2013 Tenn. Acts, ch. 297,s 1, eff. 4/29/2013. Acts 1973, ch. 226, § 6; 1974, ch. 771, § 8; 1976, ch. 782, § 13; 1977, ch. 262, § 1; T.C.A., § 67-606; Acts 1987, ch. 430, §§ 2-4; 1994, ch. 786, § 1; 1997, ch. 195, §§ 1, 2; 2003, ch. 377, § 1.
(a) The value of all property shall be ascertained from the evidence of its sound, intrinsic and immediate value, for purposes of sale between a willing seller and a willing buyer without consideration of speculative values, and when appropriate, subject to the Agricultural, Forest and Open Space Land Act of 1976, compiled in part 10 of this chapter.
(b) It is the legislative intent that no appraisal under this part shall be influenced by inflated values resulting from speculative purchases in particular areas in anticipation of uncertain future real estate markets; but all property of every kind shall be appraised according to its sound, intrinsic and immediate economic value, which shall be ascertained in accordance with such official assessment manuals as may be promulgated and issued by the state division of property assessments and approved by the state board of equalization pursuant to law.
(c) (1) The general assembly finds that the increased market value of certain residential property zoned for commercial use has caused an increase in taxes to the extent that citizens are faced with the necessity of selling dwelling houses in which they have lived for many years. The general assembly finds that present use valuation has been extended to others, and is warranted under certain circumstances to relieve the burden of increased taxation to residential owners. (2) It is the policy of this state that the owners of residential property who have lived on that property for a significant period of time should be allowed to continue to live on that property without a disproportionate increase in taxes due to the property being zoned for commercial use. (3) For the purposes of this subsection (c): (A) "Dwelling house" means a residence occupied by the owner of an estate in that property, with such residence being zoned for commercial use, used solely for residential purposes, and occupied by that owner or a person to whom the current owner is a lineal descendant for a period of twenty-five (25) years or more, together with the real estate upon which it is situated up to a maximum five (5) acres; and (B) "Owner" means a citizen and resident of Tennessee who occupies the citizen's or resident's dwelling house, as opposed to occupying any other residence, for at least nine (9) months out of each calendar year. (4) Any owner of a dwelling house may make application to the assessor of property of the county in which the property is located for its classification under this subsection (c). Property that has been determined by the assessor of property to qualify under this subsection (c) shall be valued for ad valorem tax purposes at its market value for residential purposes. The assessment on such property shall include the entire year in which the land is classified under this subsection (c). Any person who is denied such classification shall have the same rights and remedies for appeal and relief as are provided taxpayers for any action of assessors of property. (5) Should the use or ownership of the property change so that it no longer qualifies under this subsection (c), then the property owner shall have the duty of informing the assessor of property. Upon discovering that a property no longer qualifies for classification under this subsection (c), the assessor of property shall reclassify the property and shall value the property according to its current market value for subsequent tax years. In the event such change in use or ownership does not timely come to the attention of the assessor of property, and upon the assessor discovering that the property no longer qualifies, such reclassification shall affect each year that the property has failed to qualify, and the taxpayer shall be liable for the difference in taxes, including penalty and interest. (6) It is the legislative intent that the twenty-five-year time period is an integral part of this subsection (c). If this provision is held by a court of competent jurisdiction to be an unreasonable classification or otherwise declared unconstitutional, then this entire subsection (c) shall be null and void. (7) The unmarried spouse of a deceased owner, occupying the dwelling house as a surviving joint tenant or tenant by the entireties, may continue to reside in the dwelling house without disqualifying the property from the benefits of this subsection (c). The term of occupancy by that spouse shall not be deemed to interrupt the twenty-five-year time period required for continued eligibility of the property for the benefits of this subsection (c).
(1) The general assembly finds that the increased market value of certain residential property zoned for commercial use has caused an increase in taxes to the extent that citizens are faced with the necessity of selling dwelling houses in which they have lived for many years. The general assembly finds that present use valuation has been extended to others, and is warranted under certain circumstances to relieve the burden of increased taxation to residential owners.
(2) It is the policy of this state that the owners of residential property who have lived on that property for a significant period of time should be allowed to continue to live on that property without a disproportionate increase in taxes due to the property being zoned for commercial use.
(3) For the purposes of this subsection (c): (A) "Dwelling house" means a residence occupied by the owner of an estate in that property, with such residence being zoned for commercial use, used solely for residential purposes, and occupied by that owner or a person to whom the current owner is a lineal descendant for a period of twenty-five (25) years or more, together with the real estate upon which it is situated up to a maximum five (5) acres; and (B) "Owner" means a citizen and resident of Tennessee who occupies the citizen's or resident's dwelling house, as opposed to occupying any other residence, for at least nine (9) months out of each calendar year.
(A) "Dwelling house" means a residence occupied by the owner of an estate in that property, with such residence being zoned for commercial use, used solely for residential purposes, and occupied by that owner or a person to whom the current owner is a lineal descendant for a period of twenty-five (25) years or more, together with the real estate upon which it is situated up to a maximum five (5) acres; and
(B) "Owner" means a citizen and resident of Tennessee who occupies the citizen's or resident's dwelling house, as opposed to occupying any other residence, for at least nine (9) months out of each calendar year.
(4) Any owner of a dwelling house may make application to the assessor of property of the county in which the property is located for its classification under this subsection (c). Property that has been determined by the assessor of property to qualify under this subsection (c) shall be valued for ad valorem tax purposes at its market value for residential purposes. The assessment on such property shall include the entire year in which the land is classified under this subsection (c). Any person who is denied such classification shall have the same rights and remedies for appeal and relief as are provided taxpayers for any action of assessors of property.
(5) Should the use or ownership of the property change so that it no longer qualifies under this subsection (c), then the property owner shall have the duty of informing the assessor of property. Upon discovering that a property no longer qualifies for classification under this subsection (c), the assessor of property shall reclassify the property and shall value the property according to its current market value for subsequent tax years. In the event such change in use or ownership does not timely come to the attention of the assessor of property, and upon the assessor discovering that the property no longer qualifies, such reclassification shall affect each year that the property has failed to qualify, and the taxpayer shall be liable for the difference in taxes, including penalty and interest.
(6) It is the legislative intent that the twenty-five-year time period is an integral part of this subsection (c). If this provision is held by a court of competent jurisdiction to be an unreasonable classification or otherwise declared unconstitutional, then this entire subsection (c) shall be null and void.
(7) The unmarried spouse of a deceased owner, occupying the dwelling house as a surviving joint tenant or tenant by the entireties, may continue to reside in the dwelling house without disqualifying the property from the benefits of this subsection (c). The term of occupancy by that spouse shall not be deemed to interrupt the twenty-five-year time period required for continued eligibility of the property for the benefits of this subsection (c).
(d) The general assembly finds that due to the abundance of limestone, sand and gravel in this state and the difficulty in valuing the contributory interest in limestone, sand and gravel that such contributory interest in limestone, sand and gravel shall be deemed to have no value for property tax purposes. This does not affect the commercial classification of real property used for quarry purposes.
(e) (1) The general assembly finds that any property that generates electricity using green sources such as geothermal, hydrogen, solar or wind, is generally capable of producing less electricity than conventional sources due to uncertain or intermittent energy sources or other factors, that net operating income will be affected by unusual cost and market conditions, and that the commercially competitive disadvantage of these green energy source properties evidences that their sound, intrinsic and immediate value is significantly less than their total installed costs. The general assembly further finds that unless these circumstances are considered in the determination of value for tax purposes under this chapter, investment in property to generate electricity from green sources will be unreasonably discouraged, denying the citizens of Tennessee the environmental benefits associated with the greater use of these domestic renewable energy sources for power generation. (2) Based on the foregoing findings, the sound, intrinsic and immediate value of green energy source property should not initially exceed a percentage of total installed costs equal to the ratio of projected electricity output over a period of one (1) year to the maximum capacity of the property, as follows: (A) The sound, intrinsic and immediate value of wind source property should not initially exceed one-third (1/3) of total installed costs; (B) The sound, intrinsic and immediate value of solar source property should not initially exceed twelve and one-half percent (12.5%) of total installed costs; and (C) The sound, intrinsic and immediate value of other green source property should not initially exceed its appropriate capacity factor as determined by the state board of equalization in consultation with the department of environment and conservation. (3) The assessor of property, or the comptroller of the treasury, in the case of public utility property, shall take the foregoing findings into account in determining the sound, intrinsic and immediate value of green source property when the property is initially appraised and each time the property is reappraised. A copy of the green energy production facility certification issued by the department of environment and conservation, or filing of a schedule or statement pursuant to § 67-5-1303 , effective as of January 1 of the year for which valuation under this subsection (e) is claimed, shall be required and shall be provided by the property owner to the comptroller's office by March 1 of the first year for which valuation under this subsection (e) is claimed. The department of environment and conservation shall report each month to the comptroller of the treasury a listing of certifications approved in the preceding month, and shall provide copies of certification records to the comptroller of the treasury on request. On or before the scheduled reappraisal in each county, the comptroller of the treasury shall advise the assessor of known locations of certified or other green energy property and whether the property is assessable locally or centrally.
(1) The general assembly finds that any property that generates electricity using green sources such as geothermal, hydrogen, solar or wind, is generally capable of producing less electricity than conventional sources due to uncertain or intermittent energy sources or other factors, that net operating income will be affected by unusual cost and market conditions, and that the commercially competitive disadvantage of these green energy source properties evidences that their sound, intrinsic and immediate value is significantly less than their total installed costs. The general assembly further finds that unless these circumstances are considered in the determination of value for tax purposes under this chapter, investment in property to generate electricity from green sources will be unreasonably discouraged, denying the citizens of Tennessee the environmental benefits associated with the greater use of these domestic renewable energy sources for power generation.
(2) Based on the foregoing findings, the sound, intrinsic and immediate value of green energy source property should not initially exceed a percentage of total installed costs equal to the ratio of projected electricity output over a period of one (1) year to the maximum capacity of the property, as follows: (A) The sound, intrinsic and immediate value of wind source property should not initially exceed one-third (1/3) of total installed costs; (B) The sound, intrinsic and immediate value of solar source property should not initially exceed twelve and one-half percent (12.5%) of total installed costs; and (C) The sound, intrinsic and immediate value of other green source property should not initially exceed its appropriate capacity factor as determined by the state board of equalization in consultation with the department of environment and conservation.
(A) The sound, intrinsic and immediate value of wind source property should not initially exceed one-third (1/3) of total installed costs;
(B) The sound, intrinsic and immediate value of solar source property should not initially exceed twelve and one-half percent (12.5%) of total installed costs; and
(C) The sound, intrinsic and immediate value of other green source property should not initially exceed its appropriate capacity factor as determined by the state board of equalization in consultation with the department of environment and conservation.
(3) The assessor of property, or the comptroller of the treasury, in the case of public utility property, shall take the foregoing findings into account in determining the sound, intrinsic and immediate value of green source property when the property is initially appraised and each time the property is reappraised. A copy of the green energy production facility certification issued by the department of environment and conservation, or filing of a schedule or statement pursuant to § 67-5-1303 , effective as of January 1 of the year for which valuation under this subsection (e) is claimed, shall be required and shall be provided by the property owner to the comptroller's office by March 1 of the first year for which valuation under this subsection (e) is claimed. The department of environment and conservation shall report each month to the comptroller of the treasury a listing of certifications approved in the preceding month, and shall provide copies of certification records to the comptroller of the treasury on request. On or before the scheduled reappraisal in each county, the comptroller of the treasury shall advise the assessor of known locations of certified or other green energy property and whether the property is assessable locally or centrally.
(f) The general assembly finds that any public utility property or commercial and industrial property that is used to engage in the fueling of natural gas vehicles and that is a certified alternative fueling site as described in the definition of "certified green energy production facility" in § 67-4-2004 , is generally capable of fueling fewer types of vehicles due to limited availability from original equipment manufacturers, that use of such alternative, domestically produced transportation fuels should be encouraged to improve air quality and to enhance our nation's energy security, and immediate economic value for all purposes under this chapter should not initially exceed thirty percent (30%) of its total installed costs. The general assembly further finds that, unless the findings are considered in the determination of the sound, intrinsic, and immediate economic value of such property for all purposes under this chapter, investment in property for fueling alternative fuel vehicles will be unreasonably discouraged, denying the citizens of this state the environmental benefits and domestic energy security associated with the use of natural gas as a transportation fuel. The assessor of property, in assessing any such commercial and industrial property, or the comptroller of the treasury, in assessing any such public utility property, that engages in the fueling of motor vehicles with natural gas, shall take these findings by the general assembly into account in determining the sound, intrinsic, and immediate economic value of such property, when the property is initially appraised and each time the property is reappraised. A copy of the facility certification issued by the department of environment and conservation shall be required in order to qualify for such valuation. The valuation of personal property under this section shall also apply to machinery and equipment utilized in a natural gas vehicle fueling station. Such equipment shall include, but not be limited to, storage vessels, compressors, dryers, dispensers, piping, compressed or liquefied gas appliances, or any other item that is installed by a natural gas provider.
Amended by 2015 Tenn. Acts, ch. 471,s 1, eff. 5/18/2015.
Amended by 2013 Tenn. Acts, ch. 423,s 4, eff. 5/16/2013.
Amended by 2013 Tenn. Acts, ch. 297,s 1, eff. 4/29/2013.
Acts 1973, ch. 226, § 6; 1974, ch. 771, § 8; 1976, ch. 782, § 13; 1977, ch. 262, § 1; T.C.A., § 67-606; Acts 1987, ch. 430, §§ 2-4; 1994, ch. 786, § 1; 1997, ch. 195, §§ 1, 2; 2003, ch. 377, § 1.
Tenn. Code Ann. § 67-6-537 — TN Code / Title 67 / Chapter 6 / Section 67-6-537
Release from liability for sales or use taxes for certain sellers - Exceptions
Status: in_force

(a) This section applies to sellers who satisfy all of the following requirements: (1) The seller registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in this state, in accordance with the terms of the Streamlined Sales and Use Tax Agreement within twelve (12) months of the effective date of this state's becoming a member in substantial compliance with the agreement; (2) (A) During the twelve-month period preceding the state's becoming a member in substantial compliance with the agreement, the seller was not registered to collect and remit tax under this chapter; or (B) During the twelve-month period preceding the state's becoming an associate member of the agreement, the seller was not registered to collect and remit tax under this chapter; and (3) There is no audit or assessment pending with respect to the seller, and the department has not notified the seller that it will be the subject of an audit. (b) A seller who satisfies the criteria set out in subsection (a) is not liable for sales or use tax not collected from its customers prior to the date of its registration, nor liable for any related interest or penalty, subject to the limitations contained in subsection (c). (c) (1) A seller remains liable for tax collected from its customers but not remitted to the state, and remains liable for any related interest and penalty. (2) A seller remains liable for any use tax due that arises from its capacity as a buyer and user or consumer of taxable items. (3) The release from liability provided by subsection (b) is void, unless the seller maintains its registration and continues to collect and remit applicable sales and use taxes for at least thirty-six (36) months. The statute of limitations provided in § 67-1-1501 is tolled during the thirty-six month period. (4) Fraud or intentional misrepresentation of a material fact voids the release from liability provided by subsection (b). (d) A dealer or certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if the taxpayer or certified service provider charged and collected or remitted an incorrect amount of sales or use tax in reliance on erroneous data in the taxability matrix provided by the department pursuant to § 328(A) of the Streamlined Sales and Use Tax Agreement. The erroneous data in the taxability matrix provided by the department shall be the most recent published information utilized by the taxpayer or certified service provider that is effective on the date of the transaction. Taxpayers and certified service providers shall provide records evidencing reliance on the erroneous data. Section 328(A) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or defined category included in the taxability matrix. Acts 2003, ch. 357, § 61; 2004, ch. 959, §§ 22, 68; 2005, ch. 311, §§ 1, 2; 2005, ch. 499, §§ 65, 66; 2007, ch. 602, §§ 51, 114.
(a) This section applies to sellers who satisfy all of the following requirements: (1) The seller registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in this state, in accordance with the terms of the Streamlined Sales and Use Tax Agreement within twelve (12) months of the effective date of this state's becoming a member in substantial compliance with the agreement; (2) (A) During the twelve-month period preceding the state's becoming a member in substantial compliance with the agreement, the seller was not registered to collect and remit tax under this chapter; or (B) During the twelve-month period preceding the state's becoming an associate member of the agreement, the seller was not registered to collect and remit tax under this chapter; and (3) There is no audit or assessment pending with respect to the seller, and the department has not notified the seller that it will be the subject of an audit.
(1) The seller registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in this state, in accordance with the terms of the Streamlined Sales and Use Tax Agreement within twelve (12) months of the effective date of this state's becoming a member in substantial compliance with the agreement;
(2) (A) During the twelve-month period preceding the state's becoming a member in substantial compliance with the agreement, the seller was not registered to collect and remit tax under this chapter; or (B) During the twelve-month period preceding the state's becoming an associate member of the agreement, the seller was not registered to collect and remit tax under this chapter; and
(A) During the twelve-month period preceding the state's becoming a member in substantial compliance with the agreement, the seller was not registered to collect and remit tax under this chapter; or
(B) During the twelve-month period preceding the state's becoming an associate member of the agreement, the seller was not registered to collect and remit tax under this chapter; and
(3) There is no audit or assessment pending with respect to the seller, and the department has not notified the seller that it will be the subject of an audit.
(b) A seller who satisfies the criteria set out in subsection (a) is not liable for sales or use tax not collected from its customers prior to the date of its registration, nor liable for any related interest or penalty, subject to the limitations contained in subsection (c).
(c) (1) A seller remains liable for tax collected from its customers but not remitted to the state, and remains liable for any related interest and penalty. (2) A seller remains liable for any use tax due that arises from its capacity as a buyer and user or consumer of taxable items. (3) The release from liability provided by subsection (b) is void, unless the seller maintains its registration and continues to collect and remit applicable sales and use taxes for at least thirty-six (36) months. The statute of limitations provided in § 67-1-1501 is tolled during the thirty-six month period. (4) Fraud or intentional misrepresentation of a material fact voids the release from liability provided by subsection (b).
(1) A seller remains liable for tax collected from its customers but not remitted to the state, and remains liable for any related interest and penalty.
(2) A seller remains liable for any use tax due that arises from its capacity as a buyer and user or consumer of taxable items.
(3) The release from liability provided by subsection (b) is void, unless the seller maintains its registration and continues to collect and remit applicable sales and use taxes for at least thirty-six (36) months. The statute of limitations provided in § 67-1-1501 is tolled during the thirty-six month period.
(4) Fraud or intentional misrepresentation of a material fact voids the release from liability provided by subsection (b).
(d) A dealer or certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if the taxpayer or certified service provider charged and collected or remitted an incorrect amount of sales or use tax in reliance on erroneous data in the taxability matrix provided by the department pursuant to § 328(A) of the Streamlined Sales and Use Tax Agreement. The erroneous data in the taxability matrix provided by the department shall be the most recent published information utilized by the taxpayer or certified service provider that is effective on the date of the transaction. Taxpayers and certified service providers shall provide records evidencing reliance on the erroneous data. Section 328(A) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or defined category included in the taxability matrix.
Acts 2003, ch. 357, § 61; 2004, ch. 959, §§ 22, 68; 2005, ch. 311, §§ 1, 2; 2005, ch. 499, §§ 65, 66; 2007, ch. 602, §§ 51, 114.
Tenn. Code Ann. § 67-4-2013 — TN Code / Title 67 / Chapter 4 / Section 67-4-2013
Apportionment - Special provisions
Status: in_force

(a) If the principal business in this state is that of a common carrier of persons or property for hire, then the appropriate ratios shall be as follows: (1) Railroads. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from railway operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and (B) The mileage owned and operated inside Tennessee, plus mileage leased and operated inside Tennessee, as compared with the total of such mileage in and outside the state; (2) Motor Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from operations on business beginning and ending in this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and (B) The ratio of the total franchise miles, or odometer miles, if there are no franchise miles, to which it holds or uses under lease, contract or otherwise, certificates of convenience and necessity from the interstate commerce commission or the department of safety inside the state, to the total franchise or odometer miles to which it holds or uses certificates from such commission or department, and like commissions, departments or agencies of other states, in and outside the state, all as shown by the annual reports made by such motor carrier to the various commissions, departments or agencies from which it holds certificates; (3) Rail and Motor Carriers. Where the taxpayer is engaged in transporting passengers and property by both rail and motor, then the ratio of the sum of the miles in the state as computed under subdivisions (a)(1) and (2) to the sum of the miles under such subdivisions in and outside the state; (4) Pipelines. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations inside and outside the state; and (B) The ratio of the pipeline miles owned, operated, or owned and operated inside the state to the miles of pipeline owned, operated or owned and operated inside and outside the state; (5) Air Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The originating revenue in the state as compared with the entire originating revenue in and outside the state; and (B) The ratio of the total air miles flown in the state to the total air miles flown in and outside the state. "Air miles flown in the state" only includes miles in the state from flights originating from or ending in the state, or both originating from and ending in the state; (6) Air Express Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The originating revenue inside the state as compared with the entire originating revenue in and outside the state; and (B) The ratio of the total air miles flown and ground miles traveled in the state to the total air miles flown and ground miles traveled in and outside the state. Air miles flown in the state shall only include miles in the state, from flights originating from or ending in the state, or both originating from and ending in the state. Ground miles traveled in the state or traveled in and outside the state shall only include miles traveled with respect to the actual common carriage of persons or property for hire; and (7) Barges. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The revenue from the transportation of cargo loaded in this state as compared with the entire revenue from the transportation of cargo loaded in and outside the state; and (B) (i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state; (ii) "Mile operated" means one (1) mile of movement of each barge. (b) (1) Notwithstanding any other provision of this part, net earnings of a financial institution that is not a member of a unitary group and therefore not filing a combined return, and that has business activities both in and outside this state, shall be apportioned by multiplying such earnings by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subdivision (b)(3), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subdivision (b)(3). "Receipts" means all gross income derived from transactions and activities in the regular course of business, except that receipts from the disposition of assets such as securities and money market transactions are included to the extent of the net taxable gain on such transactions. (2) A unitary group shall have earnings apportioned to Tennessee that consists of the apportioned net earnings of the unitary group, as determined under subdivision (b)(1), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group. (3) Receipts, as used in this section, shall be attributed to Tennessee as follows: (A) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee; (B) (i) Interest income and other receipts from assets in the nature of loans or installment sales contracts, that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (ii) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security, or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted; (C) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, telephone or other electronic means; (D) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (b)(3)(D), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit clearing accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions; (E) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit, shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in subdivision (b)(3)(B), (b)(3)(C), or (b)(3)(D); (F) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed; (G) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this subsection (b); (H) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and such receipt is not otherwise attributed under subdivision (b)(3)(G). For purposes of this subdivision (b)(3)(H), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state; (I) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2012(i)(1)(C) ; (J) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased; (K) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (b). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and (L) Any other receipts not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (b) shall be attributed to Tennessee in the same proportion that the enumerated receipts are attributed to Tennessee under subdivisions (b)(3)(A)-(K). (c) Insurance companies shall apportion net earnings by a ratio of their premiums on policies, persons and property in and outside the state; however, foreign insurance companies, not domiciled in Tennessee, shall not consider nor include any annuity considerations as premiums for purposes of this section. (d) (1) For tax years beginning prior to July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and double weighted receipts as provided in § 67-4-2012(a)(1) , including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(1). (2) For tax years beginning on or after July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and triple weighted receipts as provided in § 67-4-2012(a)(2) , including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(2). Amended by 2015 Tenn. Acts, ch. 514, Secs.s 13, s 13, eff. 5/20/2015 and Secs.s 11, s 12 eff. 7/1/2016. Amended by 2015 Tenn. Acts, ch. 514, s 10, eff. 7/1/2016. Acts 1999, ch. 406, § 3; 2005, ch. 499, § 78; 2007 , ch. 602, § 13; 2010 , ch. 1134, § 12.
(a) If the principal business in this state is that of a common carrier of persons or property for hire, then the appropriate ratios shall be as follows: (1) Railroads. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from railway operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and (B) The mileage owned and operated inside Tennessee, plus mileage leased and operated inside Tennessee, as compared with the total of such mileage in and outside the state; (2) Motor Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from operations on business beginning and ending in this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and (B) The ratio of the total franchise miles, or odometer miles, if there are no franchise miles, to which it holds or uses under lease, contract or otherwise, certificates of convenience and necessity from the interstate commerce commission or the department of safety inside the state, to the total franchise or odometer miles to which it holds or uses certificates from such commission or department, and like commissions, departments or agencies of other states, in and outside the state, all as shown by the annual reports made by such motor carrier to the various commissions, departments or agencies from which it holds certificates; (3) Rail and Motor Carriers. Where the taxpayer is engaged in transporting passengers and property by both rail and motor, then the ratio of the sum of the miles in the state as computed under subdivisions (a)(1) and (2) to the sum of the miles under such subdivisions in and outside the state; (4) Pipelines. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations inside and outside the state; and (B) The ratio of the pipeline miles owned, operated, or owned and operated inside the state to the miles of pipeline owned, operated or owned and operated inside and outside the state; (5) Air Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The originating revenue in the state as compared with the entire originating revenue in and outside the state; and (B) The ratio of the total air miles flown in the state to the total air miles flown in and outside the state. "Air miles flown in the state" only includes miles in the state from flights originating from or ending in the state, or both originating from and ending in the state; (6) Air Express Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The originating revenue inside the state as compared with the entire originating revenue in and outside the state; and (B) The ratio of the total air miles flown and ground miles traveled in the state to the total air miles flown and ground miles traveled in and outside the state. Air miles flown in the state shall only include miles in the state, from flights originating from or ending in the state, or both originating from and ending in the state. Ground miles traveled in the state or traveled in and outside the state shall only include miles traveled with respect to the actual common carriage of persons or property for hire; and (7) Barges. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The revenue from the transportation of cargo loaded in this state as compared with the entire revenue from the transportation of cargo loaded in and outside the state; and (B) (i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state; (ii) "Mile operated" means one (1) mile of movement of each barge.
(1) Railroads. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from railway operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and (B) The mileage owned and operated inside Tennessee, plus mileage leased and operated inside Tennessee, as compared with the total of such mileage in and outside the state;
(A) The gross receipts from railway operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and
(B) The mileage owned and operated inside Tennessee, plus mileage leased and operated inside Tennessee, as compared with the total of such mileage in and outside the state;
(2) Motor Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from operations on business beginning and ending in this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and (B) The ratio of the total franchise miles, or odometer miles, if there are no franchise miles, to which it holds or uses under lease, contract or otherwise, certificates of convenience and necessity from the interstate commerce commission or the department of safety inside the state, to the total franchise or odometer miles to which it holds or uses certificates from such commission or department, and like commissions, departments or agencies of other states, in and outside the state, all as shown by the annual reports made by such motor carrier to the various commissions, departments or agencies from which it holds certificates;
(A) The gross receipts from operations on business beginning and ending in this state without entering or passing through any other state as compared with its entire gross receipts from such operations in and outside the state; and
(B) The ratio of the total franchise miles, or odometer miles, if there are no franchise miles, to which it holds or uses under lease, contract or otherwise, certificates of convenience and necessity from the interstate commerce commission or the department of safety inside the state, to the total franchise or odometer miles to which it holds or uses certificates from such commission or department, and like commissions, departments or agencies of other states, in and outside the state, all as shown by the annual reports made by such motor carrier to the various commissions, departments or agencies from which it holds certificates;
(3) Rail and Motor Carriers. Where the taxpayer is engaged in transporting passengers and property by both rail and motor, then the ratio of the sum of the miles in the state as computed under subdivisions (a)(1) and (2) to the sum of the miles under such subdivisions in and outside the state;
(4) Pipelines. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The gross receipts from operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations inside and outside the state; and (B) The ratio of the pipeline miles owned, operated, or owned and operated inside the state to the miles of pipeline owned, operated or owned and operated inside and outside the state;
(A) The gross receipts from operations on business beginning and ending inside this state without entering or passing through any other state as compared with its entire gross receipts from such operations inside and outside the state; and
(B) The ratio of the pipeline miles owned, operated, or owned and operated inside the state to the miles of pipeline owned, operated or owned and operated inside and outside the state;
(5) Air Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The originating revenue in the state as compared with the entire originating revenue in and outside the state; and (B) The ratio of the total air miles flown in the state to the total air miles flown in and outside the state. "Air miles flown in the state" only includes miles in the state from flights originating from or ending in the state, or both originating from and ending in the state;
(A) The originating revenue in the state as compared with the entire originating revenue in and outside the state; and
(B) The ratio of the total air miles flown in the state to the total air miles flown in and outside the state. "Air miles flown in the state" only includes miles in the state from flights originating from or ending in the state, or both originating from and ending in the state;
(6) Air Express Carriers. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The originating revenue inside the state as compared with the entire originating revenue in and outside the state; and (B) The ratio of the total air miles flown and ground miles traveled in the state to the total air miles flown and ground miles traveled in and outside the state. Air miles flown in the state shall only include miles in the state, from flights originating from or ending in the state, or both originating from and ending in the state. Ground miles traveled in the state or traveled in and outside the state shall only include miles traveled with respect to the actual common carriage of persons or property for hire; and
(A) The originating revenue inside the state as compared with the entire originating revenue in and outside the state; and
(B) The ratio of the total air miles flown and ground miles traveled in the state to the total air miles flown and ground miles traveled in and outside the state. Air miles flown in the state shall only include miles in the state, from flights originating from or ending in the state, or both originating from and ending in the state. Ground miles traveled in the state or traveled in and outside the state shall only include miles traveled with respect to the actual common carriage of persons or property for hire; and
(7) Barges. The ratio obtained by taking the arithmetical average of the following two (2) ratios: (A) The revenue from the transportation of cargo loaded in this state as compared with the entire revenue from the transportation of cargo loaded in and outside the state; and (B) (i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state; (ii) "Mile operated" means one (1) mile of movement of each barge.
(A) The revenue from the transportation of cargo loaded in this state as compared with the entire revenue from the transportation of cargo loaded in and outside the state; and
(B) (i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state; (ii) "Mile operated" means one (1) mile of movement of each barge.
(i) The ratio of the total miles operated in the state to the total miles operated in and outside the state. Miles operated in the state shall be fifty percent (50%) of the miles operated on the Mississippi River adjacent to the Tennessee shoreline, plus all miles operated on inland waterways within the state;
(ii) "Mile operated" means one (1) mile of movement of each barge.
(b) (1) Notwithstanding any other provision of this part, net earnings of a financial institution that is not a member of a unitary group and therefore not filing a combined return, and that has business activities both in and outside this state, shall be apportioned by multiplying such earnings by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subdivision (b)(3), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subdivision (b)(3). "Receipts" means all gross income derived from transactions and activities in the regular course of business, except that receipts from the disposition of assets such as securities and money market transactions are included to the extent of the net taxable gain on such transactions. (2) A unitary group shall have earnings apportioned to Tennessee that consists of the apportioned net earnings of the unitary group, as determined under subdivision (b)(1), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group. (3) Receipts, as used in this section, shall be attributed to Tennessee as follows: (A) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee; (B) (i) Interest income and other receipts from assets in the nature of loans or installment sales contracts, that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (ii) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security, or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted; (C) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, telephone or other electronic means; (D) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (b)(3)(D), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit clearing accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions; (E) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit, shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in subdivision (b)(3)(B), (b)(3)(C), or (b)(3)(D); (F) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed; (G) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this subsection (b); (H) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and such receipt is not otherwise attributed under subdivision (b)(3)(G). For purposes of this subdivision (b)(3)(H), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state; (I) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2012(i)(1)(C) ; (J) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased; (K) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (b). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and (L) Any other receipts not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (b) shall be attributed to Tennessee in the same proportion that the enumerated receipts are attributed to Tennessee under subdivisions (b)(3)(A)-(K).
(1) Notwithstanding any other provision of this part, net earnings of a financial institution that is not a member of a unitary group and therefore not filing a combined return, and that has business activities both in and outside this state, shall be apportioned by multiplying such earnings by the quotient of the institution's total receipts attributable to the transaction of business in Tennessee, as determined under subdivision (b)(3), divided by the institution's total receipts attributable to transacting business in all taxing jurisdictions, as determined under subdivision (b)(3). "Receipts" means all gross income derived from transactions and activities in the regular course of business, except that receipts from the disposition of assets such as securities and money market transactions are included to the extent of the net taxable gain on such transactions.
(2) A unitary group shall have earnings apportioned to Tennessee that consists of the apportioned net earnings of the unitary group, as determined under subdivision (b)(1), including the receipts of those members of the unitary business that would not be subject to taxation in this state, if considered apart from the unitary group.
(3) Receipts, as used in this section, shall be attributed to Tennessee as follows: (A) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee; (B) (i) Interest income and other receipts from assets in the nature of loans or installment sales contracts, that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (ii) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security, or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted; (C) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, telephone or other electronic means; (D) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (b)(3)(D), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit clearing accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions; (E) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit, shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in subdivision (b)(3)(B), (b)(3)(C), or (b)(3)(D); (F) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed; (G) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this subsection (b); (H) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and such receipt is not otherwise attributed under subdivision (b)(3)(G). For purposes of this subdivision (b)(3)(H), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state; (I) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2012(i)(1)(C) ; (J) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased; (K) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (b). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and (L) Any other receipts not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (b) shall be attributed to Tennessee in the same proportion that the enumerated receipts are attributed to Tennessee under subdivisions (b)(3)(A)-(K).
(A) Receipts from the lease or rental of real or tangible personal property shall be attributed to Tennessee, if the property is located in Tennessee;
(B) (i) Interest income and other receipts from assets in the nature of loans or installment sales contracts, that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property; (ii) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security, or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted;
(i) Interest income and other receipts from assets in the nature of loans or installment sales contracts, that are primarily secured by or deal with real or tangible personal property, shall be attributed to Tennessee, if the security or sale property is located in Tennessee. If any part of the sale property or property standing as security for the payment of the debt is located part in and part outside the state, only such proportion of the interest income or other receipts shall be attributed to Tennessee as the value of the property in the state bears to the whole property;
(ii) "Value" means only that value that the property would command at a fair and voluntary sale. Value shall be determined at the time the loan is made and shall not vary from year to year. In the event additional real or tangible personal property is pledged as security, or otherwise covered under a loan or installment sales contract after the time the loan is made, the ratio based on the value of the property in the state compared to the whole property shall be adjusted;
(C) Interest income and other receipts from consumer loans not secured by real or tangible personal property shall be attributed to Tennessee, if the loan is made to a resident of Tennessee, whether at a place of business, by a traveling loan officer, by mail, telephone or other electronic means;
(D) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property shall be attributed to Tennessee, if the proceeds of the loan are to be applied in Tennessee. If it cannot be determined where the funds are to be applied, the receipts are to be attributed to the state in which the business applied for the loan. As used in this subdivision (b)(3)(D), "applied for" means initial inquiry, including customer assistance in preparing the loan application, or submission of a completed loan application, whichever occurs first. For attribution purposes, "loan" does not include demand deposit clearing accounts, federal funds, certificates of deposit, and other similar wholesale banking instruments issued by other financial institutions;
(E) All receipts and fee income from the issuance of letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing a loan or credit, shall be attributed in the same manner as interest income and other receipts from the loan are attributed, as set out in subdivision (b)(3)(B), (b)(3)(C), or (b)(3)(D);
(F) Interest income, merchant discount, other receipts, including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders, and fees shall be attributed to the state to which the card charges and fees are regularly billed;
(G) Receipts from the sale of an asset, tangible or intangible, shall be attributed in the same manner that the income from the asset would be attributed under this subsection (b);
(H) Receipts equal to the net gain or income from the sale of a security made by a person who is a dealer in such security within the meaning of 26 U.S.C. § 475 shall be attributed to Tennessee if such person's customer is located in Tennessee and such receipt is not otherwise attributed under subdivision (b)(3)(G). For purposes of this subdivision (b)(3)(H), a customer is in this state if the customer is an individual, trust, or estate that is a resident of this state and, for all other customers, if the customer's commercial domicile is in this state. Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this state if the billing address of the customer, as shown in the records of the dealer, is in this state;
(I) Receipts from the performance of fiduciary and other services shall be attributed in accordance with § 67-4-2012(i)(1)(C) ;
(J) Receipts from the issuance of traveler's checks, money orders or United States savings bonds shall be attributed to the state where such items are purchased;
(K) Receipts from a participating financial institution's portion of participation loans shall be attributed as otherwise provided under this subsection (b). A participation loan is any loan in which more than one (1) lender is a creditor to a common borrower; and
(L) Any other receipts not specifically attributed to Tennessee or to another taxing jurisdiction when applying this subsection (b) shall be attributed to Tennessee in the same proportion that the enumerated receipts are attributed to Tennessee under subdivisions (b)(3)(A)-(K).
(c) Insurance companies shall apportion net earnings by a ratio of their premiums on policies, persons and property in and outside the state; however, foreign insurance companies, not domiciled in Tennessee, shall not consider nor include any annuity considerations as premiums for purposes of this section.
(d) (1) For tax years beginning prior to July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and double weighted receipts as provided in § 67-4-2012(a)(1) , including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(1). (2) For tax years beginning on or after July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and triple weighted receipts as provided in § 67-4-2012(a)(2) , including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(2).
(1) For tax years beginning prior to July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and double weighted receipts as provided in § 67-4-2012(a)(1) , including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(1).
(2) For tax years beginning on or after July 1, 2016, the net earnings of a captive REIT affiliated group shall be apportioned to this state based on property, payroll, and triple weighted receipts as provided in § 67-4-2012(a)(2) , including the factors of those members of the affiliated group that would not be subject to taxation in this state if considered apart from the affiliated group; provided, however, that dividends, receipts, and expenses resulting from transactions between members of the affiliated group shall be excluded for purposes of apportionment under this subdivision (d)(2).
Amended by 2015 Tenn. Acts, ch. 514, Secs.s 13, s 13, eff. 5/20/2015 and Secs.s 11, s 12 eff. 7/1/2016.
Amended by 2015 Tenn. Acts, ch. 514, s 10, eff. 7/1/2016.
Acts 1999, ch. 406, § 3; 2005, ch. 499, § 78; 2007 , ch. 602, § 13; 2010 , ch. 1134, § 12.
Tenn. Code Ann. § 67-1-401 — TN Code / Title 67 / Chapter 1 / Section 67-1-401
Composition of boards
Status: in_force

(a) (1) The county legislative body of each county shall, at the April session of each even year, from the different sections of the county, elect, for a term of two (2) years, five (5) freeholders and taxpayers who shall constitute a county board of equalization. (2) In any county having a population greater than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census, the county board of equalization shall be appointed for a term of two (2) years, consisting of thirteen (13) freeholders and taxpayers, of which three (3) members shall be appointed by the county commission or governing board, four (4) members shall be appointed by the city council or governing board of the largest municipality, and one (1) member each shall be appointed by the city councils or governing boards of each of the six (6) largest remaining cities having a population greater than ten thousand (10,000). (3) In counties having one (1) or more cities with a population exceeding sixty thousand (60,000), according to the federal census of 1970 or any subsequent federal census, two (2) of the members of the board shall be appointed by the governing body of the largest city. (4) In counties having one (1) or more cities with a population of not less than ten thousand (10,000) nor more than sixty thousand (60,000), one (1) member of the board shall be appointed by the city council or governing body of each of the two (2) largest cities with a population in excess of ten thousand (10,000), within the county. (5) In counties that have no city with a population of ten thousand (10,000) or more, one (1) member of the board shall be appointed by the city council or governing board of the largest city or town in the counties. (6) (A) In a county with a metropolitan form of government, the charter for the metropolitan government may provide for the creation of a metropolitan board of equalization consisting of either five (5) or seven (7) members. Appointments to such board shall include members selected from minorities, as well as members of the sex that historically has been under-represented on the board of equalization. This subdivision (a)(5)(A) shall not apply to such counties having a population of less than ten thousand (10,000), according to the 1980 federal census or any subsequent federal census. (B) If a county with a metropolitan form of government having a population of not less than four hundred seventy thousand (470,000) nor more than five hundred thousand (500,000), according to the 1980 federal census or any subsequent federal census, creates a board of equalization consisting of seven (7) members, at least two (2) of the members of the board shall be appointed consistent with subdivision (a)(6)(A). (b) If the county legislative body fails to elect, the county mayor shall appoint the members of the board and shall also fill such vacancies as the vacancies occur. (c) (1) Magistrates or state, municipal or county legislative or executive officials or employees shall all be ineligible for positions on a county board of equalization, but this prohibition does not apply to persons who receive only compensation in lieu of expenses or a per diem payment for services. No member of any county board of equalization shall represent any taxpayer in an assessment appeal. This subsection (c) does not apply to municipal officials or employees whose city, located in a county with a population of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, is not eligible to appoint a member to the board. (2) (A) Notwithstanding other provisions of this subsection (c), except in counties having a population of more than eighty-five thousand (85,000) but less than eighty-six thousand (86,000), according to the 1990 federal census or any subsequent federal census, state employees may be appointed to the county board of equalization, if their employment responsibilities do not include property assessments, except that in counties having a population of more than eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, state employees shall not be appointed to the county board of equalization. (B) No state employee serving on the county board of equalization shall be compensated by the state for time served on the county board, except that an otherwise eligible employee may use accumulated annual leave to serve on the county board with approval of the employee's supervisor. (d) In addition to its regular appointments under this section, an appointing authority may designate one (1) or more alternates, and the board of equalization chair may call upon an alternate to sit for a regular member who becomes unavailable for a particular hearing due to disqualification or other reason. A duly appointed alternate shall be sworn in the same manner as regular members, and any action taken by a duly appointed alternate shall be as effective as if taken by the unavailable individual. Amended by 2017 Tenn. Acts, ch. 231, s 1, eff. 4/28/2017. Amended by 2013 Tenn. Acts, ch. 209, Secs.s 1, s 2 eff. 4/23/2013. Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; Acts 1982, ch. 832, § 1; T.C.A., § 67-251; Acts 1985, ch. 115, § 1; 1988, ch. 793, § 1; 1991, ch. 419, § 1; 1992, ch. 866, § 1; 1997 , ch. 419, § 1; 2000, ch. 957, §§ 1, 2; 2003 , ch. 90, § 2; 2003 , ch. 363, § 1; 2006, ch. 734, § 1.
(a) (1) The county legislative body of each county shall, at the April session of each even year, from the different sections of the county, elect, for a term of two (2) years, five (5) freeholders and taxpayers who shall constitute a county board of equalization. (2) In any county having a population greater than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census, the county board of equalization shall be appointed for a term of two (2) years, consisting of thirteen (13) freeholders and taxpayers, of which three (3) members shall be appointed by the county commission or governing board, four (4) members shall be appointed by the city council or governing board of the largest municipality, and one (1) member each shall be appointed by the city councils or governing boards of each of the six (6) largest remaining cities having a population greater than ten thousand (10,000). (3) In counties having one (1) or more cities with a population exceeding sixty thousand (60,000), according to the federal census of 1970 or any subsequent federal census, two (2) of the members of the board shall be appointed by the governing body of the largest city. (4) In counties having one (1) or more cities with a population of not less than ten thousand (10,000) nor more than sixty thousand (60,000), one (1) member of the board shall be appointed by the city council or governing body of each of the two (2) largest cities with a population in excess of ten thousand (10,000), within the county. (5) In counties that have no city with a population of ten thousand (10,000) or more, one (1) member of the board shall be appointed by the city council or governing board of the largest city or town in the counties. (6) (A) In a county with a metropolitan form of government, the charter for the metropolitan government may provide for the creation of a metropolitan board of equalization consisting of either five (5) or seven (7) members. Appointments to such board shall include members selected from minorities, as well as members of the sex that historically has been under-represented on the board of equalization. This subdivision (a)(5)(A) shall not apply to such counties having a population of less than ten thousand (10,000), according to the 1980 federal census or any subsequent federal census. (B) If a county with a metropolitan form of government having a population of not less than four hundred seventy thousand (470,000) nor more than five hundred thousand (500,000), according to the 1980 federal census or any subsequent federal census, creates a board of equalization consisting of seven (7) members, at least two (2) of the members of the board shall be appointed consistent with subdivision (a)(6)(A).
(1) The county legislative body of each county shall, at the April session of each even year, from the different sections of the county, elect, for a term of two (2) years, five (5) freeholders and taxpayers who shall constitute a county board of equalization.
(2) In any county having a population greater than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census, the county board of equalization shall be appointed for a term of two (2) years, consisting of thirteen (13) freeholders and taxpayers, of which three (3) members shall be appointed by the county commission or governing board, four (4) members shall be appointed by the city council or governing board of the largest municipality, and one (1) member each shall be appointed by the city councils or governing boards of each of the six (6) largest remaining cities having a population greater than ten thousand (10,000).
(3) In counties having one (1) or more cities with a population exceeding sixty thousand (60,000), according to the federal census of 1970 or any subsequent federal census, two (2) of the members of the board shall be appointed by the governing body of the largest city.
(4) In counties having one (1) or more cities with a population of not less than ten thousand (10,000) nor more than sixty thousand (60,000), one (1) member of the board shall be appointed by the city council or governing body of each of the two (2) largest cities with a population in excess of ten thousand (10,000), within the county.
(5) In counties that have no city with a population of ten thousand (10,000) or more, one (1) member of the board shall be appointed by the city council or governing board of the largest city or town in the counties.
(6) (A) In a county with a metropolitan form of government, the charter for the metropolitan government may provide for the creation of a metropolitan board of equalization consisting of either five (5) or seven (7) members. Appointments to such board shall include members selected from minorities, as well as members of the sex that historically has been under-represented on the board of equalization. This subdivision (a)(5)(A) shall not apply to such counties having a population of less than ten thousand (10,000), according to the 1980 federal census or any subsequent federal census. (B) If a county with a metropolitan form of government having a population of not less than four hundred seventy thousand (470,000) nor more than five hundred thousand (500,000), according to the 1980 federal census or any subsequent federal census, creates a board of equalization consisting of seven (7) members, at least two (2) of the members of the board shall be appointed consistent with subdivision (a)(6)(A).
(A) In a county with a metropolitan form of government, the charter for the metropolitan government may provide for the creation of a metropolitan board of equalization consisting of either five (5) or seven (7) members. Appointments to such board shall include members selected from minorities, as well as members of the sex that historically has been under-represented on the board of equalization. This subdivision (a)(5)(A) shall not apply to such counties having a population of less than ten thousand (10,000), according to the 1980 federal census or any subsequent federal census.
(B) If a county with a metropolitan form of government having a population of not less than four hundred seventy thousand (470,000) nor more than five hundred thousand (500,000), according to the 1980 federal census or any subsequent federal census, creates a board of equalization consisting of seven (7) members, at least two (2) of the members of the board shall be appointed consistent with subdivision (a)(6)(A).
(b) If the county legislative body fails to elect, the county mayor shall appoint the members of the board and shall also fill such vacancies as the vacancies occur.
(c) (1) Magistrates or state, municipal or county legislative or executive officials or employees shall all be ineligible for positions on a county board of equalization, but this prohibition does not apply to persons who receive only compensation in lieu of expenses or a per diem payment for services. No member of any county board of equalization shall represent any taxpayer in an assessment appeal. This subsection (c) does not apply to municipal officials or employees whose city, located in a county with a population of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, is not eligible to appoint a member to the board. (2) (A) Notwithstanding other provisions of this subsection (c), except in counties having a population of more than eighty-five thousand (85,000) but less than eighty-six thousand (86,000), according to the 1990 federal census or any subsequent federal census, state employees may be appointed to the county board of equalization, if their employment responsibilities do not include property assessments, except that in counties having a population of more than eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, state employees shall not be appointed to the county board of equalization. (B) No state employee serving on the county board of equalization shall be compensated by the state for time served on the county board, except that an otherwise eligible employee may use accumulated annual leave to serve on the county board with approval of the employee's supervisor.
(1) Magistrates or state, municipal or county legislative or executive officials or employees shall all be ineligible for positions on a county board of equalization, but this prohibition does not apply to persons who receive only compensation in lieu of expenses or a per diem payment for services. No member of any county board of equalization shall represent any taxpayer in an assessment appeal. This subsection (c) does not apply to municipal officials or employees whose city, located in a county with a population of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, is not eligible to appoint a member to the board.
(2) (A) Notwithstanding other provisions of this subsection (c), except in counties having a population of more than eighty-five thousand (85,000) but less than eighty-six thousand (86,000), according to the 1990 federal census or any subsequent federal census, state employees may be appointed to the county board of equalization, if their employment responsibilities do not include property assessments, except that in counties having a population of more than eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, state employees shall not be appointed to the county board of equalization. (B) No state employee serving on the county board of equalization shall be compensated by the state for time served on the county board, except that an otherwise eligible employee may use accumulated annual leave to serve on the county board with approval of the employee's supervisor.
(A) Notwithstanding other provisions of this subsection (c), except in counties having a population of more than eighty-five thousand (85,000) but less than eighty-six thousand (86,000), according to the 1990 federal census or any subsequent federal census, state employees may be appointed to the county board of equalization, if their employment responsibilities do not include property assessments, except that in counties having a population of more than eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, state employees shall not be appointed to the county board of equalization.
(B) No state employee serving on the county board of equalization shall be compensated by the state for time served on the county board, except that an otherwise eligible employee may use accumulated annual leave to serve on the county board with approval of the employee's supervisor.
(d) In addition to its regular appointments under this section, an appointing authority may designate one (1) or more alternates, and the board of equalization chair may call upon an alternate to sit for a regular member who becomes unavailable for a particular hearing due to disqualification or other reason. A duly appointed alternate shall be sworn in the same manner as regular members, and any action taken by a duly appointed alternate shall be as effective as if taken by the unavailable individual.
Amended by 2017 Tenn. Acts, ch. 231, s 1, eff. 4/28/2017.
Amended by 2013 Tenn. Acts, ch. 209, Secs.s 1, s 2 eff. 4/23/2013.
Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; Acts 1982, ch. 832, § 1; T.C.A., § 67-251; Acts 1985, ch. 115, § 1; 1988, ch. 793, § 1; 1991, ch. 419, § 1; 1992, ch. 866, § 1; 1997 , ch. 419, § 1; 2000, ch. 957, §§ 1, 2; 2003 , ch. 90, § 2; 2003 , ch. 363, § 1; 2006, ch. 734, § 1.
Tenn. Code Ann. § 67-4-2007 — TN Code / Title 67 / Chapter 4 / Section 67-4-2007
Tax imposed
Status: in_force

(a) All persons, except those having not-for-profit status, doing business in this state and having a substantial nexus in this state shall, without exception other than as provided in this part, pay to the commissioner, annually, an excise tax, in addition to all other taxes, equal to six and one-half percent (6 1/2%) of the net earnings for the next preceding fiscal year for business done in this state during that fiscal year. Notwithstanding the fact that a person is not-for-profit, such person shall be subject to excise tax on all of its Tennessee net earnings to the extent such earnings constitute unrelated business taxable income as defined in § 512 of the Internal Revenue Code ( 26 U.S.C. § 512 ) or are otherwise subject to income taxes under Subtitle A of such code. Notwithstanding the fact that a person is otherwise exempted from the excise tax, such person shall be subject to excise tax on all of its Tennessee net earnings that are attributable to any activities unrelated to and outside the scope of the activities that give it an exemption status. (b) Every such person, now or hereafter doing business in this state, shall, as a recompense for the protection of its local activities and as compensation for the benefits it receives from doing business in Tennessee, pay the tax imposed by this part. A person doing business in Tennessee without incorporating, domesticating, qualifying or otherwise registering in Tennessee, or doing business in Tennessee while its charter, domestication, qualification or other registration is forfeited, revoked or suspended, is not relieved from filing a return and paying the excise tax levied by this part for each tax year that such person does business in Tennessee. (c) The tax imposed by this part shall apply to taxpayers whose business is being conducted by a receivership or trusteeship appointed by any court of competent jurisdiction, and shall continue to accrue until such time as the taxpayer has been actually and legally dissolved or withdrawn from this state. (d) For purposes of the excise tax levied by this part, a business entity shall be classified as a corporation, partnership, or other type business entity, consistent with the way the entity is classified for federal income tax purposes, and subject to tax in accordance with this part. Notwithstanding any law to the contrary, entities that are disregarded for federal income tax purposes, except for limited liability companies whose single member is a corporation, shall not be disregarded for Tennessee excise tax purposes. (e) (1) Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file excise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2014 , each taxpayer shall be considered a separate and single business entity for Tennessee excise tax purposes and shall file its Tennessee excise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group. The federal taxable income computed on a separate entity basis excise tax return and subject to adjustments set forth in § 67-4-2006 shall be the same federal taxable income that would have been computed on the taxpayer's federal return if it had been filed on a separate entity basis rather than a consolidated basis. (2) (A) Financial institutions subject to tax in this state, that are members of a unitary group, shall file a combined return and pay tax based on the apportioned combined net earnings of the entire unitary group, as defined in § 67-4-2006(a)(3) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Except as provided in subdivision (e)(2)(B), each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the unitary business. (B) Joint and several liability for the tax imposed by this part with regard to the unitary business shall not apply to any member that is a limited liability company, limited liability partnership, or limited partnership and meets the criteria set forth either in subdivision (e)(2)(B)(i) or (e)(2)(B)(ii): (i) (a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and (b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or (ii) Substantially all of the member's assets consist of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (e)(2)(B)(i). (C) For the purposes of subdivision (e)(2)(B), the following shall apply: (i) The requirements of subdivision (e)(2)(B)(i)( a ) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (e)(2)(C)(i) and necessary or appropriate for the purposes in this subdivision (e)(2)(C)(i); (ii) "Substantially all" as set forth in subdivision (e)(2)(B) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value. (3) Persons subject to tax in this state that are members of a captive REIT affiliated group shall file a combined return and pay tax based on the apportioned combined net earnings of the entire captive REIT affiliated group, as defined in § 67-4-2006(a) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the affiliated group. (f) (1) Any entity or individual not otherwise subject to the tax imposed by this part shall pay to the commissioner an excise tax equal to six and one-half percent (6.5%) of the gain from the sale of any asset if any of the following criteria is met: (A) The entity or individual received the asset through a distribution from a taxpayer within the twelve-month period immediately prior to the sale and the taxpayer making the asset distribution ceased to exist prior to the sale; (B) The entity or individual received the asset through a merger, liquidation, or any similar transaction involving a taxpayer subject to the tax imposed by this part during the twelve-month period immediately prior to the sale; (C) The entity or individual qualified for the exemption provided in § 67-4-2008(a)(9) during the twelve-month period immediately prior to the sale; or (D) The asset was owned, during the twelve-month period immediately prior to the sale, by an affiliate subject to the tax imposed by this part. (2) Tax on such gain shall be reported and paid in accordance with § 67-4-2015 ; provided, however, that such tax shall not apply to any person having not-for-profit status. In no event shall the gain from the sale of such asset be taxed twice as a result of the same transaction. (3) Any entity or individual who fails to report and pay the tax as required by this subsection (f) shall be subject to a penalty as set forth in § 67-1-804(b)(3) . Amended by 2015 Tenn. Acts, ch. 514, s 7, eff. 1/1/2016. Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 15 - 17; 2002, ch. 856, § 3c; 2004, ch. 592, § 6; 2005, ch. 499, § 77; 2006, ch. 1019, § 32; 2007 , ch. 602, § 19; 2008 , ch. 1106, § 37; 2010 , ch. 1134, §§ 10, 11, 22.
(a) All persons, except those having not-for-profit status, doing business in this state and having a substantial nexus in this state shall, without exception other than as provided in this part, pay to the commissioner, annually, an excise tax, in addition to all other taxes, equal to six and one-half percent (6 1/2%) of the net earnings for the next preceding fiscal year for business done in this state during that fiscal year. Notwithstanding the fact that a person is not-for-profit, such person shall be subject to excise tax on all of its Tennessee net earnings to the extent such earnings constitute unrelated business taxable income as defined in § 512 of the Internal Revenue Code ( 26 U.S.C. § 512 ) or are otherwise subject to income taxes under Subtitle A of such code. Notwithstanding the fact that a person is otherwise exempted from the excise tax, such person shall be subject to excise tax on all of its Tennessee net earnings that are attributable to any activities unrelated to and outside the scope of the activities that give it an exemption status.
(b) Every such person, now or hereafter doing business in this state, shall, as a recompense for the protection of its local activities and as compensation for the benefits it receives from doing business in Tennessee, pay the tax imposed by this part. A person doing business in Tennessee without incorporating, domesticating, qualifying or otherwise registering in Tennessee, or doing business in Tennessee while its charter, domestication, qualification or other registration is forfeited, revoked or suspended, is not relieved from filing a return and paying the excise tax levied by this part for each tax year that such person does business in Tennessee.
(c) The tax imposed by this part shall apply to taxpayers whose business is being conducted by a receivership or trusteeship appointed by any court of competent jurisdiction, and shall continue to accrue until such time as the taxpayer has been actually and legally dissolved or withdrawn from this state.
(d) For purposes of the excise tax levied by this part, a business entity shall be classified as a corporation, partnership, or other type business entity, consistent with the way the entity is classified for federal income tax purposes, and subject to tax in accordance with this part. Notwithstanding any law to the contrary, entities that are disregarded for federal income tax purposes, except for limited liability companies whose single member is a corporation, shall not be disregarded for Tennessee excise tax purposes.
(e) (1) Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file excise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2014 , each taxpayer shall be considered a separate and single business entity for Tennessee excise tax purposes and shall file its Tennessee excise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group. The federal taxable income computed on a separate entity basis excise tax return and subject to adjustments set forth in § 67-4-2006 shall be the same federal taxable income that would have been computed on the taxpayer's federal return if it had been filed on a separate entity basis rather than a consolidated basis. (2) (A) Financial institutions subject to tax in this state, that are members of a unitary group, shall file a combined return and pay tax based on the apportioned combined net earnings of the entire unitary group, as defined in § 67-4-2006(a)(3) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Except as provided in subdivision (e)(2)(B), each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the unitary business. (B) Joint and several liability for the tax imposed by this part with regard to the unitary business shall not apply to any member that is a limited liability company, limited liability partnership, or limited partnership and meets the criteria set forth either in subdivision (e)(2)(B)(i) or (e)(2)(B)(ii): (i) (a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and (b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or (ii) Substantially all of the member's assets consist of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (e)(2)(B)(i). (C) For the purposes of subdivision (e)(2)(B), the following shall apply: (i) The requirements of subdivision (e)(2)(B)(i)( a ) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (e)(2)(C)(i) and necessary or appropriate for the purposes in this subdivision (e)(2)(C)(i); (ii) "Substantially all" as set forth in subdivision (e)(2)(B) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value. (3) Persons subject to tax in this state that are members of a captive REIT affiliated group shall file a combined return and pay tax based on the apportioned combined net earnings of the entire captive REIT affiliated group, as defined in § 67-4-2006(a) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the affiliated group.
(1) Except for unitary groups of financial institutions, captive REIT affiliated groups, and business entities that have been required or permitted to file excise tax returns on a combined, consolidated or separate accounting basis under § 67-4-2014 , each taxpayer shall be considered a separate and single business entity for Tennessee excise tax purposes and shall file its Tennessee excise tax return on a separate entity basis reflecting only its own business activities even though it may have filed a consolidated federal income tax return with other members of its unitary group. The federal taxable income computed on a separate entity basis excise tax return and subject to adjustments set forth in § 67-4-2006 shall be the same federal taxable income that would have been computed on the taxpayer's federal return if it had been filed on a separate entity basis rather than a consolidated basis.
(2) (A) Financial institutions subject to tax in this state, that are members of a unitary group, shall file a combined return and pay tax based on the apportioned combined net earnings of the entire unitary group, as defined in § 67-4-2006(a)(3) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Except as provided in subdivision (e)(2)(B), each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the unitary business. (B) Joint and several liability for the tax imposed by this part with regard to the unitary business shall not apply to any member that is a limited liability company, limited liability partnership, or limited partnership and meets the criteria set forth either in subdivision (e)(2)(B)(i) or (e)(2)(B)(ii): (i) (a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and (b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or (ii) Substantially all of the member's assets consist of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (e)(2)(B)(i). (C) For the purposes of subdivision (e)(2)(B), the following shall apply: (i) The requirements of subdivision (e)(2)(B)(i)( a ) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (e)(2)(C)(i) and necessary or appropriate for the purposes in this subdivision (e)(2)(C)(i); (ii) "Substantially all" as set forth in subdivision (e)(2)(B) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value.
(A) Financial institutions subject to tax in this state, that are members of a unitary group, shall file a combined return and pay tax based on the apportioned combined net earnings of the entire unitary group, as defined in § 67-4-2006(a)(3) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Except as provided in subdivision (e)(2)(B), each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the unitary business.
(B) Joint and several liability for the tax imposed by this part with regard to the unitary business shall not apply to any member that is a limited liability company, limited liability partnership, or limited partnership and meets the criteria set forth either in subdivision (e)(2)(B)(i) or (e)(2)(B)(ii): (i) (a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and (b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or (ii) Substantially all of the member's assets consist of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (e)(2)(B)(i).
(i) (a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and (b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or
(a) The member was formed and operated for the primary purpose of acquiring, from one (1) or more of its direct or indirect owners, notes, accounts receivable, installment sale contracts, or similar evidences of indebtedness; and
(b) The member has pledged substantially all of its assets as security, directly or indirectly, for third party borrowings or securitized indebtedness acquired by third parties; or
(ii) Substantially all of the member's assets consist of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, third party debt securities, or equity interests in entities satisfying the requirements of subdivision (e)(2)(B)(i).
(C) For the purposes of subdivision (e)(2)(B), the following shall apply: (i) The requirements of subdivision (e)(2)(B)(i)( a ) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (e)(2)(C)(i) and necessary or appropriate for the purposes in this subdivision (e)(2)(C)(i); (ii) "Substantially all" as set forth in subdivision (e)(2)(B) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value.
(i) The requirements of subdivision (e)(2)(B)(i)( a ) shall be satisfied by the presence of language in the entity's organizational or other governing documents expressly stating that the purpose of the entity is to acquire, own, manage, protect, conserve and sell or otherwise dispose of assets described in subdivision (e)(2)(B)(i)( a ), cash and cash equivalents, and third party debt securities; to enter into and perform its obligations under its organizational documents, any documents relating to the acquisition of the assets or any third party borrowing or securitized indebtedness to which the entity is a party; and to engage in activities related or incidental to the purposes in this subdivision (e)(2)(C)(i) and necessary or appropriate for the purposes in this subdivision (e)(2)(C)(i);
(ii) "Substantially all" as set forth in subdivision (e)(2)(B) means at least two-thirds (66.67%) of the entity's assets as determined by fair market value.
(3) Persons subject to tax in this state that are members of a captive REIT affiliated group shall file a combined return and pay tax based on the apportioned combined net earnings of the entire captive REIT affiliated group, as defined in § 67-4-2006(a) . The members of the group shall designate one (1) member that is subject to tax in this state to file the combined return. Each member subject to tax in this state shall be jointly and severally liable for the tax imposed by this part with regard to the affiliated group.
(f) (1) Any entity or individual not otherwise subject to the tax imposed by this part shall pay to the commissioner an excise tax equal to six and one-half percent (6.5%) of the gain from the sale of any asset if any of the following criteria is met: (A) The entity or individual received the asset through a distribution from a taxpayer within the twelve-month period immediately prior to the sale and the taxpayer making the asset distribution ceased to exist prior to the sale; (B) The entity or individual received the asset through a merger, liquidation, or any similar transaction involving a taxpayer subject to the tax imposed by this part during the twelve-month period immediately prior to the sale; (C) The entity or individual qualified for the exemption provided in § 67-4-2008(a)(9) during the twelve-month period immediately prior to the sale; or (D) The asset was owned, during the twelve-month period immediately prior to the sale, by an affiliate subject to the tax imposed by this part. (2) Tax on such gain shall be reported and paid in accordance with § 67-4-2015 ; provided, however, that such tax shall not apply to any person having not-for-profit status. In no event shall the gain from the sale of such asset be taxed twice as a result of the same transaction. (3) Any entity or individual who fails to report and pay the tax as required by this subsection (f) shall be subject to a penalty as set forth in § 67-1-804(b)(3) .
(1) Any entity or individual not otherwise subject to the tax imposed by this part shall pay to the commissioner an excise tax equal to six and one-half percent (6.5%) of the gain from the sale of any asset if any of the following criteria is met: (A) The entity or individual received the asset through a distribution from a taxpayer within the twelve-month period immediately prior to the sale and the taxpayer making the asset distribution ceased to exist prior to the sale; (B) The entity or individual received the asset through a merger, liquidation, or any similar transaction involving a taxpayer subject to the tax imposed by this part during the twelve-month period immediately prior to the sale; (C) The entity or individual qualified for the exemption provided in § 67-4-2008(a)(9) during the twelve-month period immediately prior to the sale; or (D) The asset was owned, during the twelve-month period immediately prior to the sale, by an affiliate subject to the tax imposed by this part.
(A) The entity or individual received the asset through a distribution from a taxpayer within the twelve-month period immediately prior to the sale and the taxpayer making the asset distribution ceased to exist prior to the sale;
(B) The entity or individual received the asset through a merger, liquidation, or any similar transaction involving a taxpayer subject to the tax imposed by this part during the twelve-month period immediately prior to the sale;
(C) The entity or individual qualified for the exemption provided in § 67-4-2008(a)(9) during the twelve-month period immediately prior to the sale; or
(D) The asset was owned, during the twelve-month period immediately prior to the sale, by an affiliate subject to the tax imposed by this part.
(2) Tax on such gain shall be reported and paid in accordance with § 67-4-2015 ; provided, however, that such tax shall not apply to any person having not-for-profit status. In no event shall the gain from the sale of such asset be taxed twice as a result of the same transaction.
(3) Any entity or individual who fails to report and pay the tax as required by this subsection (f) shall be subject to a penalty as set forth in § 67-1-804(b)(3) .
Amended by 2015 Tenn. Acts, ch. 514, s 7, eff. 1/1/2016.
Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 15 - 17; 2002, ch. 856, § 3c; 2004, ch. 592, § 6; 2005, ch. 499, § 77; 2006, ch. 1019, § 32; 2007 , ch. 602, § 19; 2008 , ch. 1106, § 37; 2010 , ch. 1134, §§ 10, 11, 22.
Tenn. Code Ann. § 67-1-910 — TN Code / Title 67 / Chapter 1 / Section 67-1-910
Refusal of unrecognized money
Status: in_force

Nothing in this part shall be construed to subject any officer of the state to any suit for a refusal on the officer's part to accept, in payment of revenue of the state, any kind or description of funds or securities or papers other than such as the officer may be authorized and required to receive for the time being by law. Acts 1873, ch. 44, § 5; Shan., § 1068; Code 1932, § 1799; T.C.A. (orig. ed.), § 67-2312.
Nothing in this part shall be construed to subject any officer of the state to any suit for a refusal on the officer's part to accept, in payment of revenue of the state, any kind or description of funds or securities or papers other than such as the officer may be authorized and required to receive for the time being by law.
Acts 1873, ch. 44, § 5; Shan., § 1068; Code 1932, § 1799; T.C.A. (orig. ed.), § 67-2312.
Tenn. Code Ann. § 67-4-2112 — TN Code / Title 67 / Chapter 4 / Section 67-4-2112
Variances from standard apportionment formula - Notice of discontinuation - Hospital companies
Status: in_force

(a) If the tax computation, allocation or apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this state, or the taxpayer's net worth, as adjusted, the taxpayer may petition for, or the department through its delegates may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (1) Separate accounting; (2) The exclusion of any one (1) or more of the formula factors; (3) The inclusion of one (1) or more additional apportionment formula factors that will fairly represent the taxpayer's business activity in this state; (4) The use of any other method to source receipts for purposes of the receipts factor or factors of the apportionment formula numerator or numerators; or (5) The employment of any other method to effectuate an equitable computation, allocation and apportionment of the taxpayer's net worth, as adjusted, that fairly represents the extent of the business entity's activities in Tennessee. (b) If any factors are excluded from or added to the statutory apportionment formula, an appropriate change shall be made in the number used as the denominator of the fraction. (c) (1) In any case of two (2) or more persons, organizations, trades or businesses, whether or not incorporated and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the commissioner through delegates may distribute, apportion, or allocate net worth, income, deductions, credits, or allowances between or among such persons, organizations, trades or businesses, if the commissioner determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes, excessive use or abuse of exemptions, or to clearly reflect the net worth or gross receipts of such persons, organizations, trades or businesses. In addition, the commissioner through delegates may require combined reports utilizing a common apportionment formula covering members of an affiliated group. It is the intent of the general assembly that the federal regulations, rulings and court interpretations with respect to 26 U.S.C. § 482 be used as guidance in the administration of this subdivision (c)(1). (2) In the case of two (2) or more entities owned or controlled directly or indirectly by the same persons, including but not limited to affiliated groups, the commissioner, through the commissioner's delegates, may require combined reports and, if applicable, the utilization of a common apportionment formula covering such entities. (3) The commissioner may apply federal taxation concepts, including, but not limited to, "assignment of income," "arms length" and "fair market value" to dealings between and among affiliates. (4) The commissioner may disregard any entity created or transaction made that has no business purpose or is created or made with the primary purpose of evading either the federal income tax or the franchise tax. (d) When another method of tax computation, allocation or apportionment has once been established, it shall continue in effect so long as the circumstances justifying the variation remain substantially unchanged, or until changed or discontinued by the department, whichever occurs first. In the event that the department changes or discontinues a variation from the statutory computation, allocation or apportionment provisions that has been granted to or required of a taxpayer, reasonable notice shall be given to the taxpayer affected, and any such change or discontinuation shall apply prospectively to the first tax period and to the subsequent tax periods that begin on or after the date of such notice. (e) For tax years beginning on or before December 31, 2006, a hospital company, as defined in § 67-4-2004 , shall file its franchise and excise tax return on a combined basis, together with all other corporations or other entities subject to the taxes imposed under parts 20 and 21 of this chapter that are members of its controlled group, as defined in § 267(f)(1) of the Internal Revenue Code ( 26 U.S.C. § 267(f)(1) ) and that are doing business in and taxable by this state, apportioned or allocated as to each member separately as provided in §§ 67-4-2110 and 67-4-2111 , and then combined. Such combined franchise and excise tax returns shall be signed on behalf of one (1) member of the combined controlled group for itself and on behalf of the other members of the combined controlled group, and such signature shall constitute representation and evidence of authority to file on behalf of all members of the combined controlled group. The combined return shall contain all financial statements and schedules that would be required of each member filing a separate franchise tax return. Each member's net earnings or losses subject to carryover, as the case may be, and each member's apportionment ratio, and applicable supporting schedules shall be computed separately as would be required by law if no combined return were required. The franchise and excise tax shall be computed for the combined group based on the combined net earnings or net losses of the members as combined and shown on the combined return filed for members of the controlled group of companies doing business in this state. The losses available to each member of the controlled group under current or prior law shall be available for offset against the net earnings of the combined group in the first year of filing on a combined basis, and any portion that is not used to offset net earnings of the combined group in the first combined year shall be carried forward on a combined basis to be available as an offset to future net earnings of the combined group in accordance with and subject to the time limitations set forth in § 67-4-2006(c)(2) ; provided, that such combination shall not extend the time limitation of any then existing net operating losses. No member of the combined group may file its franchise and excise tax return on a separate basis without the consent of the commissioner. Acts 1999, ch. 406, § 4; 2005, ch. 499, §§ 44 - 46.
(a) If the tax computation, allocation or apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this state, or the taxpayer's net worth, as adjusted, the taxpayer may petition for, or the department through its delegates may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (1) Separate accounting; (2) The exclusion of any one (1) or more of the formula factors; (3) The inclusion of one (1) or more additional apportionment formula factors that will fairly represent the taxpayer's business activity in this state; (4) The use of any other method to source receipts for purposes of the receipts factor or factors of the apportionment formula numerator or numerators; or (5) The employment of any other method to effectuate an equitable computation, allocation and apportionment of the taxpayer's net worth, as adjusted, that fairly represents the extent of the business entity's activities in Tennessee.
(1) Separate accounting;
(2) The exclusion of any one (1) or more of the formula factors;
(3) The inclusion of one (1) or more additional apportionment formula factors that will fairly represent the taxpayer's business activity in this state;
(4) The use of any other method to source receipts for purposes of the receipts factor or factors of the apportionment formula numerator or numerators; or
(5) The employment of any other method to effectuate an equitable computation, allocation and apportionment of the taxpayer's net worth, as adjusted, that fairly represents the extent of the business entity's activities in Tennessee.
(b) If any factors are excluded from or added to the statutory apportionment formula, an appropriate change shall be made in the number used as the denominator of the fraction.
(c) (1) In any case of two (2) or more persons, organizations, trades or businesses, whether or not incorporated and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the commissioner through delegates may distribute, apportion, or allocate net worth, income, deductions, credits, or allowances between or among such persons, organizations, trades or businesses, if the commissioner determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes, excessive use or abuse of exemptions, or to clearly reflect the net worth or gross receipts of such persons, organizations, trades or businesses. In addition, the commissioner through delegates may require combined reports utilizing a common apportionment formula covering members of an affiliated group. It is the intent of the general assembly that the federal regulations, rulings and court interpretations with respect to 26 U.S.C. § 482 be used as guidance in the administration of this subdivision (c)(1). (2) In the case of two (2) or more entities owned or controlled directly or indirectly by the same persons, including but not limited to affiliated groups, the commissioner, through the commissioner's delegates, may require combined reports and, if applicable, the utilization of a common apportionment formula covering such entities. (3) The commissioner may apply federal taxation concepts, including, but not limited to, "assignment of income," "arms length" and "fair market value" to dealings between and among affiliates. (4) The commissioner may disregard any entity created or transaction made that has no business purpose or is created or made with the primary purpose of evading either the federal income tax or the franchise tax.
(1) In any case of two (2) or more persons, organizations, trades or businesses, whether or not incorporated and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the commissioner through delegates may distribute, apportion, or allocate net worth, income, deductions, credits, or allowances between or among such persons, organizations, trades or businesses, if the commissioner determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes, excessive use or abuse of exemptions, or to clearly reflect the net worth or gross receipts of such persons, organizations, trades or businesses. In addition, the commissioner through delegates may require combined reports utilizing a common apportionment formula covering members of an affiliated group. It is the intent of the general assembly that the federal regulations, rulings and court interpretations with respect to 26 U.S.C. § 482 be used as guidance in the administration of this subdivision (c)(1).
(2) In the case of two (2) or more entities owned or controlled directly or indirectly by the same persons, including but not limited to affiliated groups, the commissioner, through the commissioner's delegates, may require combined reports and, if applicable, the utilization of a common apportionment formula covering such entities.
(3) The commissioner may apply federal taxation concepts, including, but not limited to, "assignment of income," "arms length" and "fair market value" to dealings between and among affiliates.
(4) The commissioner may disregard any entity created or transaction made that has no business purpose or is created or made with the primary purpose of evading either the federal income tax or the franchise tax.
(d) When another method of tax computation, allocation or apportionment has once been established, it shall continue in effect so long as the circumstances justifying the variation remain substantially unchanged, or until changed or discontinued by the department, whichever occurs first. In the event that the department changes or discontinues a variation from the statutory computation, allocation or apportionment provisions that has been granted to or required of a taxpayer, reasonable notice shall be given to the taxpayer affected, and any such change or discontinuation shall apply prospectively to the first tax period and to the subsequent tax periods that begin on or after the date of such notice.
(e) For tax years beginning on or before December 31, 2006, a hospital company, as defined in § 67-4-2004 , shall file its franchise and excise tax return on a combined basis, together with all other corporations or other entities subject to the taxes imposed under parts 20 and 21 of this chapter that are members of its controlled group, as defined in § 267(f)(1) of the Internal Revenue Code ( 26 U.S.C. § 267(f)(1) ) and that are doing business in and taxable by this state, apportioned or allocated as to each member separately as provided in §§ 67-4-2110 and 67-4-2111 , and then combined. Such combined franchise and excise tax returns shall be signed on behalf of one (1) member of the combined controlled group for itself and on behalf of the other members of the combined controlled group, and such signature shall constitute representation and evidence of authority to file on behalf of all members of the combined controlled group. The combined return shall contain all financial statements and schedules that would be required of each member filing a separate franchise tax return. Each member's net earnings or losses subject to carryover, as the case may be, and each member's apportionment ratio, and applicable supporting schedules shall be computed separately as would be required by law if no combined return were required. The franchise and excise tax shall be computed for the combined group based on the combined net earnings or net losses of the members as combined and shown on the combined return filed for members of the controlled group of companies doing business in this state. The losses available to each member of the controlled group under current or prior law shall be available for offset against the net earnings of the combined group in the first year of filing on a combined basis, and any portion that is not used to offset net earnings of the combined group in the first combined year shall be carried forward on a combined basis to be available as an offset to future net earnings of the combined group in accordance with and subject to the time limitations set forth in § 67-4-2006(c)(2) ; provided, that such combination shall not extend the time limitation of any then existing net operating losses. No member of the combined group may file its franchise and excise tax return on a separate basis without the consent of the commissioner.
Acts 1999, ch. 406, § 4; 2005, ch. 499, §§ 44 - 46.
Tenn. Code Ann. § 67-6-348 — TN Code / Title 67 / Chapter 6 / Section 67-6-348
Used clothing - Exemption from sales tax
Status: in_force

(a) There is exempt from this chapter the sale at retail of used clothing, if such clothing is sold by an institution or organization that has received a determination of exemption from the internal revenue service under 26 U.S.C. § 501(c)(3) . (b) The exemption granted under subsection (a) shall be limited to such institutions or organizations that are not organized or operated for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual. (c) No institution or organization shall be exempt under subsection (a), unless the institution or organization shall have issued to it by the commissioner an exemption certificate declaring that such institution or organization is entitled to the exemption provided for by subsection (a). (d) The commissioner is authorized to make final determination after a hearing, if demanded, as to whether any institution or organization is entitled to the benefit of the exemption established by subsection (a). (e) All proceeds from sales exempted by this section must be for 26 U.S.C. § 501(c)(3) purposes. Acts 1994, ch. 788, § 1; 2003, ch. 357, § 52; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, § 51.
(a) There is exempt from this chapter the sale at retail of used clothing, if such clothing is sold by an institution or organization that has received a determination of exemption from the internal revenue service under 26 U.S.C. § 501(c)(3) .
(b) The exemption granted under subsection (a) shall be limited to such institutions or organizations that are not organized or operated for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
(c) No institution or organization shall be exempt under subsection (a), unless the institution or organization shall have issued to it by the commissioner an exemption certificate declaring that such institution or organization is entitled to the exemption provided for by subsection (a).
(d) The commissioner is authorized to make final determination after a hearing, if demanded, as to whether any institution or organization is entitled to the benefit of the exemption established by subsection (a).
(e) All proceeds from sales exempted by this section must be for 26 U.S.C. § 501(c)(3) purposes.
Acts 1994, ch. 788, § 1; 2003, ch. 357, § 52; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, § 51.
Tenn. Code Ann. § 67-3-204 — TN Code / Title 67 / Chapter 3 / Section 67-3-204
Environmental assurance fee
Status: in_force

Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on petroleum products in §§ 67-3-201 - 67-3-203, an environmental assurance fee as provided in § 68-215-110 is imposed on all petroleum products. The fee imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1304 .
Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on petroleum products in §§ 67-3-201 - 67-3-203, an environmental assurance fee as provided in § 68-215-110 is imposed on all petroleum products. The fee imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1304 .
Tenn. Code Ann. § 67-3-1107 — TN Code / Title 67 / Chapter 3 / Section 67-3-1107
Liquified gas - Duration of permits
Status: in_force

(a) A dealer permit is permanent and valid as long as the permittee furnishes timely reports and remits the taxes when due, or until surrendered by the holder or cancelled by the commissioner. (b) A user permit shall be issued annually and is valid from the date of issuance through June 30 of each year, unless a motor vehicle for which the tax is prepaid is sold or no longer used on the public highways. Application must be made each year for a current user permit. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-2207.
(a) A dealer permit is permanent and valid as long as the permittee furnishes timely reports and remits the taxes when due, or until surrendered by the holder or cancelled by the commissioner.
(b) A user permit shall be issued annually and is valid from the date of issuance through June 30 of each year, unless a motor vehicle for which the tax is prepaid is sold or no longer used on the public highways. Application must be made each year for a current user permit.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-2207.
Tenn. Code Ann. § 67-1-403 — TN Code / Title 67 / Chapter 1 / Section 67-1-403
Officers - Quorum - Record of daily transactions - Compensation - Training
Status: in_force

(a) Each county board of equalization shall elect one (1) of its members chair and one (1) secretary of the board. (b) A majority of the board shall constitute a quorum for the transaction of business. (c) The board shall keep a daily record of its transactions, and sign the record. (d) Board members shall be paid by the county a compensation for their services. The county legislative body shall by resolution establish the compensation of the members and the chair of the county board of equalization. (e) (1) The county mayor shall require board members and county board hearing officers to complete annual continuing education and training on duties and responsibilities of their office as a condition of appointment or continued service. (2) The county legislative body shall by resolution establish the minimum of at least four (4) hours of training for board members to complete annually and minimum recordkeeping requirements related to members' certificates of attendance. (3) The subjects for the training and continuing education shall include board governance, open meetings requirements, and other topics reasonably related to the duties of the members of the county board of equalization. (4) Any association or organization with appropriate knowledge and experience may prepare a training and continuing education curriculum for county boards of equalization covering the subjects set forth in subdivision (e)(3) to be submitted to the comptroller of the treasury for review and approval prior to use. (5) Mandatory annual continuing education and training is only required under this subsection (e) to the extent that such education and training is provided by the comptroller of the treasury free of charge. Amended by 2017 Tenn. Acts, ch. 13,s 1, eff. 3/24/2017. Amended by 2014 Tenn. Acts, ch. 691,s 1, eff. 4/15/2014. Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A., § 67-253; Acts 1997, ch. 168, § 1.
(a) Each county board of equalization shall elect one (1) of its members chair and one (1) secretary of the board.
(b) A majority of the board shall constitute a quorum for the transaction of business.
(c) The board shall keep a daily record of its transactions, and sign the record.
(d) Board members shall be paid by the county a compensation for their services. The county legislative body shall by resolution establish the compensation of the members and the chair of the county board of equalization.
(e) (1) The county mayor shall require board members and county board hearing officers to complete annual continuing education and training on duties and responsibilities of their office as a condition of appointment or continued service. (2) The county legislative body shall by resolution establish the minimum of at least four (4) hours of training for board members to complete annually and minimum recordkeeping requirements related to members' certificates of attendance. (3) The subjects for the training and continuing education shall include board governance, open meetings requirements, and other topics reasonably related to the duties of the members of the county board of equalization. (4) Any association or organization with appropriate knowledge and experience may prepare a training and continuing education curriculum for county boards of equalization covering the subjects set forth in subdivision (e)(3) to be submitted to the comptroller of the treasury for review and approval prior to use. (5) Mandatory annual continuing education and training is only required under this subsection (e) to the extent that such education and training is provided by the comptroller of the treasury free of charge.
(1) The county mayor shall require board members and county board hearing officers to complete annual continuing education and training on duties and responsibilities of their office as a condition of appointment or continued service.
(2) The county legislative body shall by resolution establish the minimum of at least four (4) hours of training for board members to complete annually and minimum recordkeeping requirements related to members' certificates of attendance.
(3) The subjects for the training and continuing education shall include board governance, open meetings requirements, and other topics reasonably related to the duties of the members of the county board of equalization.
(4) Any association or organization with appropriate knowledge and experience may prepare a training and continuing education curriculum for county boards of equalization covering the subjects set forth in subdivision (e)(3) to be submitted to the comptroller of the treasury for review and approval prior to use.
(5) Mandatory annual continuing education and training is only required under this subsection (e) to the extent that such education and training is provided by the comptroller of the treasury free of charge.
Amended by 2017 Tenn. Acts, ch. 13,s 1, eff. 3/24/2017.
Amended by 2014 Tenn. Acts, ch. 691,s 1, eff. 4/15/2014.
Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A., § 67-253; Acts 1997, ch. 168, § 1.
Tenn. Code Ann. § 67-1-1704 — TN Code / Title 67 / Chapter 1 / Section 67-1-1704
Disclosure for administrative purposes - Tax collection
Status: in_force

(a) Returns and tax information shall, without written request, be open to inspection by or disclosure to officers and employees of the department whose official duties require such inspection or disclosure for tax administration purposes. (b) (1) A return or tax information may be disclosed in a federal or state judicial or administrative proceeding pertaining to tax administration, but only if: (A) The taxpayer is a party to such proceeding; (B) The treatment of an item reflected on such return is directly related to the resolution of an issue in the proceedings; or (C) Such return or tax information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding. (2) Such return or tax information shall not be disclosed as provided in subsections (a) and (b) and in §§ 67-1-1705(a) and 67-1-1707(a) , however, if the commissioner determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation. (c) Returns and tax information may be disclosed to any person to the extent necessary in connection with the processing, storage, transmission, and reproduction of returns and tax information, and the programming, maintenance, repair, testing and procurement of equipment and software, for purposes of tax administration. (d) Upon request in writing, returns and tax information may be disclosed to duly authorized officials of a unit of local government of this state for the purpose of ascertaining whether proper local taxes or the tax imposed by § 67-4-704 is being paid. Upon written request, tax information may also be disclosed to duly authorized officials of a unit of local government of this state to the extent necessary to ascertain whether allocations from state levied taxes are being distributed to the correct unit of local government; provided, that such information shall not include the taxpayer's returns, receipts, income, tax liability, tax payments, or other financial information. For purposes of ascertaining whether proper local severance taxes are being paid pursuant to chapter 7, part 2 of this title, "authorized officials of a unit of local government" means the county mayor or a member of the county governing body. No unit of local government nor any official or employee of a unit of local government who receives returns or tax information under this subsection (d) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law. Any official or employee of a unit of local government who has or has had, at any time, access to any return or tax information under this subsection (d) shall be subject to all of the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709 . (e) A unit of local government receiving tax information under subsection (d) may disclose to a contractor or consultant the name, address, and situs of one (1) or more taxpayers for the purpose of ascertaining whether allocations of state and local taxes are being distributed to the correct unit of local government. Such information shall not include the taxpayer's returns, receipts, income, tax liability, tax payments, or other financial information. No consultant or contractor of a unit of local government who receives tax information under this subsection (e) shall disclose such information to any other person. Any consultant or contractor of a unit of local government who has or has had, at any time, access to any tax information under this subsection (e) shall be subject to all the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709 . (f) Returns and tax information may be disclosed for the purposes of tax administration to either house of the general assembly, or to any committee or subcommittee of the general assembly, but only upon a lawfully executed subpoena being served on the commissioner who demands such returns or information. (g) Returns and tax information shall be open to inspection by, and/or disclosure to, any person contracting for the collection of unpaid taxes under part 14 of this chapter. This disclosure is authorized only to the extent necessary for the collection of unpaid taxes by that person. Any person receiving returns and/or tax information under this section shall be subject to the confidentiality provisions, including penalties, provided by this part. (h) Returns, tax information and tax administration information may, in the commissioner's discretion, be disclosed for the exclusive purpose of participating in the multistate tax commission joint audit program. Any person receiving returns, tax information or tax administration information under this subsection (h) shall be subject to the confidentiality provisions, including penalties, set out in this part; and the commissioner is authorized to take such actions as deemed necessary to ensure that any such persons receiving returns, tax information or tax administration information shall maintain the confidentiality provisions set out in this part. (i) Tax information may, in such form and manner as prescribed by the commissioner, be disclosed to the extent reasonably necessary to facilitate accurate reporting by entities required to file duplicate information returns pursuant to § 67-6-411 . Such tax information shall not be used by the recipient for any purpose other than producing and filing duplicate information returns pursuant to § 67-6-411 . Any person who receives such tax information under this subsection (i) is prohibited from disclosing such information and shall be subject to the confidentiality provisions, including penalties, set out in this part. The commissioner is authorized to take such actions as deemed necessary to ensure that any persons receiving such tax information shall maintain the confidentiality provisions set out in this part. Amended by 2018 Tenn. Acts, ch. 1011,s 3, eff. 5/21/2018. Amended by 2016 Tenn. Acts, ch. 705,s 1, eff. 4/6/2016. Amended by 2015 Tenn. Acts, ch. 342,s 5, eff. 5/4/2015. Amended by 2015 Tenn. Acts, ch. 273,s 1, eff. 4/28/2015. Amended by 2014 Tenn. Acts, ch. 764,s 3, eff. 4/24/2014. Acts 1977, ch. 152, § 1; T.C.A., § 67-134; Acts 1991, ch. 79, § 2; 2006, ch. 553, § 1; 2009, ch. 530, § 96.
(a) Returns and tax information shall, without written request, be open to inspection by or disclosure to officers and employees of the department whose official duties require such inspection or disclosure for tax administration purposes.
(b) (1) A return or tax information may be disclosed in a federal or state judicial or administrative proceeding pertaining to tax administration, but only if: (A) The taxpayer is a party to such proceeding; (B) The treatment of an item reflected on such return is directly related to the resolution of an issue in the proceedings; or (C) Such return or tax information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding. (2) Such return or tax information shall not be disclosed as provided in subsections (a) and (b) and in §§ 67-1-1705(a) and 67-1-1707(a) , however, if the commissioner determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(1) A return or tax information may be disclosed in a federal or state judicial or administrative proceeding pertaining to tax administration, but only if: (A) The taxpayer is a party to such proceeding; (B) The treatment of an item reflected on such return is directly related to the resolution of an issue in the proceedings; or (C) Such return or tax information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.
(A) The taxpayer is a party to such proceeding;
(B) The treatment of an item reflected on such return is directly related to the resolution of an issue in the proceedings; or
(C) Such return or tax information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.
(2) Such return or tax information shall not be disclosed as provided in subsections (a) and (b) and in §§ 67-1-1705(a) and 67-1-1707(a) , however, if the commissioner determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(c) Returns and tax information may be disclosed to any person to the extent necessary in connection with the processing, storage, transmission, and reproduction of returns and tax information, and the programming, maintenance, repair, testing and procurement of equipment and software, for purposes of tax administration.
(d) Upon request in writing, returns and tax information may be disclosed to duly authorized officials of a unit of local government of this state for the purpose of ascertaining whether proper local taxes or the tax imposed by § 67-4-704 is being paid. Upon written request, tax information may also be disclosed to duly authorized officials of a unit of local government of this state to the extent necessary to ascertain whether allocations from state levied taxes are being distributed to the correct unit of local government; provided, that such information shall not include the taxpayer's returns, receipts, income, tax liability, tax payments, or other financial information. For purposes of ascertaining whether proper local severance taxes are being paid pursuant to chapter 7, part 2 of this title, "authorized officials of a unit of local government" means the county mayor or a member of the county governing body. No unit of local government nor any official or employee of a unit of local government who receives returns or tax information under this subsection (d) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law. Any official or employee of a unit of local government who has or has had, at any time, access to any return or tax information under this subsection (d) shall be subject to all of the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709 .
(e) A unit of local government receiving tax information under subsection (d) may disclose to a contractor or consultant the name, address, and situs of one (1) or more taxpayers for the purpose of ascertaining whether allocations of state and local taxes are being distributed to the correct unit of local government. Such information shall not include the taxpayer's returns, receipts, income, tax liability, tax payments, or other financial information. No consultant or contractor of a unit of local government who receives tax information under this subsection (e) shall disclose such information to any other person. Any consultant or contractor of a unit of local government who has or has had, at any time, access to any tax information under this subsection (e) shall be subject to all the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709 .
(f) Returns and tax information may be disclosed for the purposes of tax administration to either house of the general assembly, or to any committee or subcommittee of the general assembly, but only upon a lawfully executed subpoena being served on the commissioner who demands such returns or information.
(g) Returns and tax information shall be open to inspection by, and/or disclosure to, any person contracting for the collection of unpaid taxes under part 14 of this chapter. This disclosure is authorized only to the extent necessary for the collection of unpaid taxes by that person. Any person receiving returns and/or tax information under this section shall be subject to the confidentiality provisions, including penalties, provided by this part.
(h) Returns, tax information and tax administration information may, in the commissioner's discretion, be disclosed for the exclusive purpose of participating in the multistate tax commission joint audit program. Any person receiving returns, tax information or tax administration information under this subsection (h) shall be subject to the confidentiality provisions, including penalties, set out in this part; and the commissioner is authorized to take such actions as deemed necessary to ensure that any such persons receiving returns, tax information or tax administration information shall maintain the confidentiality provisions set out in this part.
(i) Tax information may, in such form and manner as prescribed by the commissioner, be disclosed to the extent reasonably necessary to facilitate accurate reporting by entities required to file duplicate information returns pursuant to § 67-6-411 . Such tax information shall not be used by the recipient for any purpose other than producing and filing duplicate information returns pursuant to § 67-6-411 . Any person who receives such tax information under this subsection (i) is prohibited from disclosing such information and shall be subject to the confidentiality provisions, including penalties, set out in this part. The commissioner is authorized to take such actions as deemed necessary to ensure that any persons receiving such tax information shall maintain the confidentiality provisions set out in this part.
Amended by 2018 Tenn. Acts, ch. 1011,s 3, eff. 5/21/2018.
Amended by 2016 Tenn. Acts, ch. 705,s 1, eff. 4/6/2016.
Amended by 2015 Tenn. Acts, ch. 342,s 5, eff. 5/4/2015.
Amended by 2015 Tenn. Acts, ch. 273,s 1, eff. 4/28/2015.
Amended by 2014 Tenn. Acts, ch. 764,s 3, eff. 4/24/2014.
Acts 1977, ch. 152, § 1; T.C.A., § 67-134; Acts 1991, ch. 79, § 2; 2006, ch. 553, § 1; 2009, ch. 530, § 96.
Tenn. Code Ann. § 67-7-106 — TN Code / Title 67 / Chapter 7 / Section 67-7-106
Returns - Payment of tax
Status: in_force

(a) The tax levied by this part shall be due and payable monthly on the first day of the month next succeeding the month in which the coal is severed from the soil. (b) (1) For the purpose of ascertaining the amount of tax payable, it is the duty of all operators to transmit to the commissioner, on or before the fifteenth day of the month next succeeding the month in which the tax accrues, a return upon forms provided by the commissioner. (2) A separate return shall be filed for each county from which coal is severed showing the month or period covered, the total number of tons of all coal products severed from each production unit operated, owned or controlled by the taxpayer during the period covered, the county in which produced, the amount of the tax, and such other information as the commissioner may require. (3) A copy of such separate return shall also be sent by the operator to the county trustee of the county from which the coal is severed. (c) The return shall be accompanied by a remittance covering the amount of tax due as computed by the taxpayer. Acts 1972, ch. 795, § 3; 1973, ch. 12, § 2; 1973, ch. 96, § 3; 1979, ch. 70, § 1; T.C.A., § 67-5903.
(a) The tax levied by this part shall be due and payable monthly on the first day of the month next succeeding the month in which the coal is severed from the soil.
(b) (1) For the purpose of ascertaining the amount of tax payable, it is the duty of all operators to transmit to the commissioner, on or before the fifteenth day of the month next succeeding the month in which the tax accrues, a return upon forms provided by the commissioner. (2) A separate return shall be filed for each county from which coal is severed showing the month or period covered, the total number of tons of all coal products severed from each production unit operated, owned or controlled by the taxpayer during the period covered, the county in which produced, the amount of the tax, and such other information as the commissioner may require. (3) A copy of such separate return shall also be sent by the operator to the county trustee of the county from which the coal is severed.
(1) For the purpose of ascertaining the amount of tax payable, it is the duty of all operators to transmit to the commissioner, on or before the fifteenth day of the month next succeeding the month in which the tax accrues, a return upon forms provided by the commissioner.
(2) A separate return shall be filed for each county from which coal is severed showing the month or period covered, the total number of tons of all coal products severed from each production unit operated, owned or controlled by the taxpayer during the period covered, the county in which produced, the amount of the tax, and such other information as the commissioner may require.
(3) A copy of such separate return shall also be sent by the operator to the county trustee of the county from which the coal is severed.
(c) The return shall be accompanied by a remittance covering the amount of tax due as computed by the taxpayer.
Acts 1972, ch. 795, § 3; 1973, ch. 12, § 2; 1973, ch. 96, § 3; 1979, ch. 70, § 1; T.C.A., § 67-5903.
Tenn. Code Ann. § 67-4-727 — TN Code / Title 67 / Chapter 4 / Section 67-4-727
Municipal airports outside municipal boundaries
Status: in_force

(a) Where there exists an airport or any other navigation facility, as defined in § 42-4-103 or § 42-5-102 , that is located outside the territorial limits of the creating municipality or the municipality that controls or operates the airport or air navigation facility, the creating municipality or municipality that controls or operates the airport or air navigation facility may levy and collect a privilege tax, in the same manner authorized by this part, upon any vocation, occupation, business or business activity enumerated, described, or referred to in § 67-4-708 that is conducted or located upon the premises, grounds, and/or property of such airport or air navigation facility, and the municipality may levy and collect such privilege tax in the same manner and to the same extent as if the airport or air navigation facility were within the territorial limits of the municipality. (b) (1) This section shall not apply to any county having a population, according to the 1980 federal census or any subsequent federal census, of: not less than nor more than 100,000 200,000 285,000 290,000 450,000 550,000 600,001 (2) This section shall not apply to any county having a metropolitan form of government. (3) This section shall not apply to any municipality or county creating, controlling, or operating, in part, an airport or air navigation facility created, controlled, or operated, in part, by at least four (4) political subdivisions of this state and a political subdivision of an adjacent state, which airport is located outside the territorial limits of such municipality or county. Acts 1971, ch. 387, § 2; 1972, ch. 850, § 2; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., § 67-5802.
(a) Where there exists an airport or any other navigation facility, as defined in § 42-4-103 or § 42-5-102 , that is located outside the territorial limits of the creating municipality or the municipality that controls or operates the airport or air navigation facility, the creating municipality or municipality that controls or operates the airport or air navigation facility may levy and collect a privilege tax, in the same manner authorized by this part, upon any vocation, occupation, business or business activity enumerated, described, or referred to in § 67-4-708 that is conducted or located upon the premises, grounds, and/or property of such airport or air navigation facility, and the municipality may levy and collect such privilege tax in the same manner and to the same extent as if the airport or air navigation facility were within the territorial limits of the municipality.
(b) (1) This section shall not apply to any county having a population, according to the 1980 federal census or any subsequent federal census, of: not less than nor more than 100,000 200,000 285,000 290,000 450,000 550,000 600,001 (2) This section shall not apply to any county having a metropolitan form of government. (3) This section shall not apply to any municipality or county creating, controlling, or operating, in part, an airport or air navigation facility created, controlled, or operated, in part, by at least four (4) political subdivisions of this state and a political subdivision of an adjacent state, which airport is located outside the territorial limits of such municipality or county.
(1) This section shall not apply to any county having a population, according to the 1980 federal census or any subsequent federal census, of: not less than nor more than 100,000 200,000 285,000 290,000 450,000 550,000 600,001
not less than nor more than 100,000 200,000 285,000 290,000 450,000 550,000 600,001
not less than
nor more than
100,000
200,000
285,000
290,000
450,000
550,000
600,001
(2) This section shall not apply to any county having a metropolitan form of government.
(3) This section shall not apply to any municipality or county creating, controlling, or operating, in part, an airport or air navigation facility created, controlled, or operated, in part, by at least four (4) political subdivisions of this state and a political subdivision of an adjacent state, which airport is located outside the territorial limits of such municipality or county.
Acts 1971, ch. 387, § 2; 1972, ch. 850, § 2; 1983, ch. 386, § 7; 1983, ch. 466, §§ 3-7; T.C.A., § 67-5802.
Tenn. Code Ann. § 67-6-314 — TN Code / Title 67 / Chapter 6 / Section 67-6-314
Medical equipment and devices
Status: in_force

There is exempt from the sales or use tax imposed by this chapter: (1) Prosthetic devices for human use and repair services for the repair and maintenance of those prosthetic devices; (2) Durable medical equipment for home use sold pursuant to a prescription for human use and repair services for the repair and maintenance of durable medical equipment qualifying for exemption under this subdivision (2); (3) Oxygen delivery equipment, including: (A) Repair services and repair or replacement parts for oxygen delivery equipment; (B) Components or attachments for oxygen delivery equipment that are items for single patient use; and (C) Disposable medical supplies necessary to administer or deliver medical oxygen for human use; (4) Kidney dialysis equipment, including repair services and repair or replacement parts for kidney dialysis equipment, and including components or attachments for kidney dialysis equipment that are items for single patient use; (5) Enteral feeding systems, including repair services and repair or replacement parts for enteral feeding systems, and including components or attachments for enteral feeding systems that are items for single patient use; (6) Mobility enhancing equipment sold pursuant to a prescription for human use and repair service for the repair and maintenance of mobility enhancing equipment qualifying for exemption under this subdivision (6); (7) Any syringe used to dispense insulin for human use and diabetic testing supplies for human use, including lancets, test strips for blood glucose monitors, visual read test strips, and urine test strips; (8) (A) Disposable medical supplies such as bags, tubing, needles and syringes dispensed by a licensed pharmacist in accordance with an individual prescription written for the use of a human being by a practitioner of the healing arts licensed by the state that are used for the intravenous administration of any prescription drug and that come into direct contact with the prescription drug or medicine; (B) This exemption applies only to supplies to be used in the treatment of a patient outside of a hospital, skilled nursing facility or ambulatory surgical treatment center; (9) Computer software designed for use in the treatment of individuals with a learning disability and having no residual value for any other purpose that is prescribed by a licensed practitioner of the healing arts for use in the treatment of an individual; and (10) The sale or use of disposable, nonprosthetic ostomy products for use by humans who have had colostomies, ileostomies, or urostomies. Amended by 2015 Tenn. Acts, ch. 274,s 1, eff. 7/1/2015. Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch. 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012; Acts 1995, ch. 144, § 1; 1995, ch. 230, § 1; 1998, ch. 766, § 1; 2003, ch. 357, § 40; 2004, ch. 959, §§ 11, 68; 2005, ch. 311, §§ 1, 2; 2007, ch. 602, §§ 51, 89; 2008, ch. 1106, § 7.
There is exempt from the sales or use tax imposed by this chapter:
(1) Prosthetic devices for human use and repair services for the repair and maintenance of those prosthetic devices;
(2) Durable medical equipment for home use sold pursuant to a prescription for human use and repair services for the repair and maintenance of durable medical equipment qualifying for exemption under this subdivision (2);
(3) Oxygen delivery equipment, including: (A) Repair services and repair or replacement parts for oxygen delivery equipment; (B) Components or attachments for oxygen delivery equipment that are items for single patient use; and (C) Disposable medical supplies necessary to administer or deliver medical oxygen for human use;
(A) Repair services and repair or replacement parts for oxygen delivery equipment;
(B) Components or attachments for oxygen delivery equipment that are items for single patient use; and
(C) Disposable medical supplies necessary to administer or deliver medical oxygen for human use;
(4) Kidney dialysis equipment, including repair services and repair or replacement parts for kidney dialysis equipment, and including components or attachments for kidney dialysis equipment that are items for single patient use;
(5) Enteral feeding systems, including repair services and repair or replacement parts for enteral feeding systems, and including components or attachments for enteral feeding systems that are items for single patient use;
(6) Mobility enhancing equipment sold pursuant to a prescription for human use and repair service for the repair and maintenance of mobility enhancing equipment qualifying for exemption under this subdivision (6);
(7) Any syringe used to dispense insulin for human use and diabetic testing supplies for human use, including lancets, test strips for blood glucose monitors, visual read test strips, and urine test strips;
(8) (A) Disposable medical supplies such as bags, tubing, needles and syringes dispensed by a licensed pharmacist in accordance with an individual prescription written for the use of a human being by a practitioner of the healing arts licensed by the state that are used for the intravenous administration of any prescription drug and that come into direct contact with the prescription drug or medicine; (B) This exemption applies only to supplies to be used in the treatment of a patient outside of a hospital, skilled nursing facility or ambulatory surgical treatment center;
(A) Disposable medical supplies such as bags, tubing, needles and syringes dispensed by a licensed pharmacist in accordance with an individual prescription written for the use of a human being by a practitioner of the healing arts licensed by the state that are used for the intravenous administration of any prescription drug and that come into direct contact with the prescription drug or medicine;
(B) This exemption applies only to supplies to be used in the treatment of a patient outside of a hospital, skilled nursing facility or ambulatory surgical treatment center;
(9) Computer software designed for use in the treatment of individuals with a learning disability and having no residual value for any other purpose that is prescribed by a licensed practitioner of the healing arts for use in the treatment of an individual; and
(10) The sale or use of disposable, nonprosthetic ostomy products for use by humans who have had colostomies, ileostomies, or urostomies.
Amended by 2015 Tenn. Acts, ch. 274,s 1, eff. 7/1/2015.
Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch. 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012; Acts 1995, ch. 144, § 1; 1995, ch. 230, § 1; 1998, ch. 766, § 1; 2003, ch. 357, § 40; 2004, ch. 959, §§ 11, 68; 2005, ch. 311, §§ 1, 2; 2007, ch. 602, §§ 51, 89; 2008, ch. 1106, § 7.
Tenn. Code Ann. § 67-5-2412 — TN Code / Title 67 / Chapter 5 / Section 67-5-2412
Collection of delinquent property taxes pursuant to section 67-5-2502 (c)
Status: in_force

(a) In all proceedings defined by § 67-5-2502(c)(1)(D) , for the collection of delinquent property taxes, an officer serving an execution issued in such proceeding shall conduct a search of the person of the defendant and such items and areas under the control of the defendant and shall seize such cash, property, and other assets belonging to the defendant, as is necessary to satisfy the execution and such additional fees as may be incurred by the officer. If the defendant objects to the search, the defendant shall reduce the defendant's objections to writing and give them to the officer. Thereupon, the defendant must be escorted by the officer to appear before a judicial commissioner or other official authorized to issue warrants, to state the defendant's grounds for the objection. The commissioner shall determine the validity of such grounds and either grant or refuse to allow the search. The commissioner shall retain the written objections of the defendant and the commissioner's written decision and deliver both to the clerk of the court from which the execution issued. (b) The exemptions set out in §§ 26-2-113 , 26-2-301 , and 26-2-306 and such other laws that provide that exemptions do not apply to sales of property of the defendant in regard to sales for taxes include executions issued in proceedings defined by § 67-5-2502(c)(1)(D) . Added by 2024 Tenn. Acts, ch. 967,s 21, eff. 5/21/2024.
(a) In all proceedings defined by § 67-5-2502(c)(1)(D) , for the collection of delinquent property taxes, an officer serving an execution issued in such proceeding shall conduct a search of the person of the defendant and such items and areas under the control of the defendant and shall seize such cash, property, and other assets belonging to the defendant, as is necessary to satisfy the execution and such additional fees as may be incurred by the officer. If the defendant objects to the search, the defendant shall reduce the defendant's objections to writing and give them to the officer. Thereupon, the defendant must be escorted by the officer to appear before a judicial commissioner or other official authorized to issue warrants, to state the defendant's grounds for the objection. The commissioner shall determine the validity of such grounds and either grant or refuse to allow the search. The commissioner shall retain the written objections of the defendant and the commissioner's written decision and deliver both to the clerk of the court from which the execution issued.
(b) The exemptions set out in §§ 26-2-113 , 26-2-301 , and 26-2-306 and such other laws that provide that exemptions do not apply to sales of property of the defendant in regard to sales for taxes include executions issued in proceedings defined by § 67-5-2502(c)(1)(D) .
Added by 2024 Tenn. Acts, ch. 967,s 21, eff. 5/21/2024.
Tenn. Code Ann. § 67-1-1629 — TN Code / Title 67 / Chapter 1 / Section 67-1-1629
Rights of collector's sureties
Status: in_force

(a) If a collector leaves the state without accounting for the county and state taxes, whereby the collector's sureties become liable for the taxes, or dies shortly before or during the time appointed for the collection of public taxes, so that a successor cannot be appointed in time to collect the taxes, it is lawful for the sureties of such collector to go before the county legislative body of the county for which their principal was elected, and prove to the court the existence of such absence or death of their principal. It shall then be the duty of the county legislative body to make a record of such proof, and upon it to make an order authorizing the sureties of such dead or absent collector to collect all arrearages of taxes not collected by their principal, and that it was the principal's duty to collect. Such order, when made, shall be made ample authority for such sureties to collect all such arrearages of taxes; and for this purpose the order shall vest them with all rights and powers to distrain and sell the property, whether real or personal, of those in arrears for taxes, the same as their principal could have done, if the principal had not been absent or died; and they shall have all the powers, authorities, privileges, and emoluments in and for the receipt and collection of the public taxes that the absent or deceased collector possessed and enjoyed. (b) In case of such death or absence, as is contemplated in subsection (a), it shall and may be competent for the sureties of such dead or absent principal, or, in case of the death of any of the sureties, then their representatives, to go before the county legislative body and agree for any one (1) of such sureties to be appointed to collect such arrearages of taxes, and upon such agreement, it shall be competent for the county legislative body to appoint such surety so agreed upon to collect such arrearages of taxes, and a record shall be made of such agreement and choice, which appointment shall be as ample power to that surety as if all were authorized to collect them; but nothing in subsection (a) or this subsection (b) shall have the effect to release any of such sureties or their representatives from liability as such. (c) If any person liable to pay such taxes fails to pay them to such designated surety, they may make distress and sale for such arrears in the same manner as the collector could have done. But no such distress or sale shall be made until public notice be first given in the manner prescribed in former §§ 67-5-1801 and 67-5-2005 . (d) The sureties of such defaulting collectors, or the authorized agents of such sureties, in all cases where they have paid the amount charged against such defaulting collectors, may sue for the collection of such delinquent taxes in the name of the state for their use, and in all cases where they have not paid, but have become liable for, such uncollected revenue, they may sue in their names, or the names of their duly authorized agents, for the use of the state, county, or municipality, to enforce the collection of such uncollected revenue or any revenues due the state, county, or municipality for which they, in any way, may have become liable. (e) When a collector is deprived of the power of office, and suspended from acting as collector, on account of the collector's failure or refusal to give sureties in place of sureties discharged, the sureties may receive and collect all taxes not already paid to their principal that the principal was bound to collect; and, for such purpose, they shall have all the powers, authorities, privileges and emoluments that belong officially to the collector so suspended. (f) Sureties, or the duly authorized agents of sureties of revenue collectors whose terms of office have expired, and whose successors in office have been elected, or, where two (2) years or more have elapsed after the expiration of the terms of office of such collectors, leaving uncollected taxes due the state, county, or municipality for the time during which such trustees held such office, whenever the trustees have paid into the treasury the amount charged against such collectors, on account of the state, county, or municipal revenue, or have become liable for the amount because of the collector's default, shall have the same privileges and rights in enforcing the collection of such uncollected revenue that are applicable by law to revenue collectors. Code 1858, §§ 663-667 (deriv. Acts 1770, ch. 6, § 2; 1815, ch. 14, § 2); Acts 1859-1860, ch. 17, §§ 1, 2; 1875, ch. 135, §§ 1, 2; Shan., §§ 954-957, 957a1, 959, 960; Code 1932, §§ 1663-1667, 1669, 1670; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), §§ 67-1503 -- 67-1508.
(a) If a collector leaves the state without accounting for the county and state taxes, whereby the collector's sureties become liable for the taxes, or dies shortly before or during the time appointed for the collection of public taxes, so that a successor cannot be appointed in time to collect the taxes, it is lawful for the sureties of such collector to go before the county legislative body of the county for which their principal was elected, and prove to the court the existence of such absence or death of their principal. It shall then be the duty of the county legislative body to make a record of such proof, and upon it to make an order authorizing the sureties of such dead or absent collector to collect all arrearages of taxes not collected by their principal, and that it was the principal's duty to collect. Such order, when made, shall be made ample authority for such sureties to collect all such arrearages of taxes; and for this purpose the order shall vest them with all rights and powers to distrain and sell the property, whether real or personal, of those in arrears for taxes, the same as their principal could have done, if the principal had not been absent or died; and they shall have all the powers, authorities, privileges, and emoluments in and for the receipt and collection of the public taxes that the absent or deceased collector possessed and enjoyed.
(b) In case of such death or absence, as is contemplated in subsection (a), it shall and may be competent for the sureties of such dead or absent principal, or, in case of the death of any of the sureties, then their representatives, to go before the county legislative body and agree for any one (1) of such sureties to be appointed to collect such arrearages of taxes, and upon such agreement, it shall be competent for the county legislative body to appoint such surety so agreed upon to collect such arrearages of taxes, and a record shall be made of such agreement and choice, which appointment shall be as ample power to that surety as if all were authorized to collect them; but nothing in subsection (a) or this subsection (b) shall have the effect to release any of such sureties or their representatives from liability as such.
(c) If any person liable to pay such taxes fails to pay them to such designated surety, they may make distress and sale for such arrears in the same manner as the collector could have done. But no such distress or sale shall be made until public notice be first given in the manner prescribed in former §§ 67-5-1801 and 67-5-2005 .
(d) The sureties of such defaulting collectors, or the authorized agents of such sureties, in all cases where they have paid the amount charged against such defaulting collectors, may sue for the collection of such delinquent taxes in the name of the state for their use, and in all cases where they have not paid, but have become liable for, such uncollected revenue, they may sue in their names, or the names of their duly authorized agents, for the use of the state, county, or municipality, to enforce the collection of such uncollected revenue or any revenues due the state, county, or municipality for which they, in any way, may have become liable.
(e) When a collector is deprived of the power of office, and suspended from acting as collector, on account of the collector's failure or refusal to give sureties in place of sureties discharged, the sureties may receive and collect all taxes not already paid to their principal that the principal was bound to collect; and, for such purpose, they shall have all the powers, authorities, privileges and emoluments that belong officially to the collector so suspended.
(f) Sureties, or the duly authorized agents of sureties of revenue collectors whose terms of office have expired, and whose successors in office have been elected, or, where two (2) years or more have elapsed after the expiration of the terms of office of such collectors, leaving uncollected taxes due the state, county, or municipality for the time during which such trustees held such office, whenever the trustees have paid into the treasury the amount charged against such collectors, on account of the state, county, or municipal revenue, or have become liable for the amount because of the collector's default, shall have the same privileges and rights in enforcing the collection of such uncollected revenue that are applicable by law to revenue collectors.
Code 1858, §§ 663-667 (deriv. Acts 1770, ch. 6, § 2; 1815, ch. 14, § 2); Acts 1859-1860, ch. 17, §§ 1, 2; 1875, ch. 135, §§ 1, 2; Shan., §§ 954-957, 957a1, 959, 960; Code 1932, §§ 1663-1667, 1669, 1670; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), §§ 67-1503 -- 67-1508.
Tenn. Code Ann. § 67-3-419 — TN Code / Title 67 / Chapter 3 / Section 67-3-419
Exemption for methanol sold for use in highway or nonhighway vehicles
Status: in_force

There shall be exempt from the taxes imposed in §§ 67-3-201 and 67-3-202 and by chapter 6 of this title methanol sold for use in highway or nonhighway vehicles that is not composed of or blended with gasoline, diesel fuel, or other fuels or petroleum products.