2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 4 - PRIVILEGE AND EXCISE TAXES (§§ 67-4-101 — 67-4-3206) › Part 7 - BUSINESS TAX ACT (§§ 67-4-701 — 67-4-730) › Section 67-4-709 - Tax rates

For the exercise of the privileges described, enumerated, or referred to in §
67-4-708
, every person shall pay the taxes imposed by §§
67-4-704
and
67-4-705
according to the dominant business activity of the person as follows:
(1)
CLASSIFICATION 1 as described in §
67-4-708(1)
:
(A)
One-tenth of one percent (
1
/
10
of 1%) of all sales by a retailer classified under §
67-4-708(1)(A), (1)(B) or (1)(C)
;
(B)
One-fortieth of one percent (
1
/
40
of 1%) of all sales by a wholesaler classified under §
67-4-708(1)(A)
;
(C)
Three-eightieths of one percent (
3
/
80
of 1%) of all sales by a wholesaler classified under §
67-4-708(1)(B) or (1)(C)
;
(D)
One-twentieth of one percent (
1
/
20
of 1%) of all sales by a retailer classified under §
67-4-708(1)(D)
; and
(E)
One thirty-second of one percent (
1
/
32
of 1%) of all sales by a wholesaler classified under §
67-4-708(1)(E)
;
(2)
CLASSIFICATION 2 as described in §
67-4-708(2)
:
(A)
Three-twentieths of one percent (
3
/
20
of 1%) of all sales by a retailer; and
(B)
Three-eightieths of one percent (
3
/
80
of 1%) of all sales by a wholesaler;
(3)
CLASSIFICATION 3 as described in §
67-4-708(3)
:
(A)
Three-sixteenths of one percent (
3
/
16
of 1%) of all sales by a retailer; and
(B)
Three-eightieths of one percent (
3
/
80
of 1%) of all sales by a wholesaler;
(4)
CLASSIFICATION 4 as described in §
67-4-708(4)
:
(A)
(i)
One-tenth of one percent (
1
/
10
of 1%) of the compensation entitled to under the contract, whether in the form of a contract price, commission, fee or wage, by the persons enumerated in §
67-4-708(4)(A)
;
(ii)
Persons who, during any taxable period, receive more than one hundred thousand dollars ($100,000) of compensation from contracts in a county or incorporated municipality, or both, other than the county or incorporated municipality where domiciled or located, shall be deemed to have a location in the county or municipality, or both, where the work was performed and a business tax return shall be filed for that location for the period in question. Gross receipts reported on a deemed location return shall not be reported on the return of the business's permanent domicile;
(iii)
In computing the measure of the tax, except as provided by this part, no deduction will be allowed on account of the cost of tangible property sold, the cost of materials used, labor cost, reimbursed cost, interest, discount, delivery cost, taxes, or no other expense whatsoever paid or accrued and without any deduction on account of losses; and
(B)
One-tenth of one percent (
1
/
10
of 1%) of the gross commissions, margins, fees or other charges by the persons enumerated in §
67-4-708(4)(B)
; and
(5)
CLASSIFICATION 5 as described in §
67-4-708(5)
:
(A)
(i)
One-tenth of one percent (
1
/
10
of 1%) of the gross income of a business classified under §
67-4-708(5)(A)
; and
(ii)
"Gross income of the business" means all interest income, earned discounts, earned lease rentals, commission fees exclusive of insurance commissions, past due charges, contract earnings or charges, collection charges, loan service fees, late fee income and all other income, without any deduction except as provided by this part;
(B)
One-fiftieth of one percent (
1
/
50
of 1%) of all sales within the state of a person classified under §
67-4-708(5)(B)
.
Amended by 2023 Tenn. Acts, ch. 377, s 2, eff. 5/11/2023.
Amended by 2023 Tenn. Acts, ch. 377, s 1, eff. 5/11/2023.
Amended by 2014 Tenn. Acts, ch. 942,s 3, eff. 7/1/2014.
Amended by 2013 Tenn. Acts, ch. 313, s 8, eff. 1/1/2014.
Acts 1971, ch. 387, § 6; 1972, ch. 850, § 6; 1977, ch. 328, §§ 1, 2; 1978, ch. 714, § 4; 1978, ch. 781, § 1; 1979, ch. 325, § 1; 1981, ch. 308, § 1; 1983, ch. 394, § 3; 1983, ch. 415, § 1; T.C.A., § 67-5806; Acts 1984, ch. 832, § 27; 1986, ch. 699, §§ 2, 3; 1988, ch. 572, § 3; 1988, ch. 767, § 1; 1994, ch. 766, § 1; 1999, ch. 424, § 1; 2002, ch. 856, § 9a; 2003 , ch. 418, § 3; 2004, ch. 924, § 9; 2009 , ch. 530, § 75.