reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 1 - GENERAL PROVISIONS (§§ 67-1-101 — 67-1-1808) › Part 18 - TAXPAYER REMEDIES FOR DISPUTED TAXES (§§ 67-1-1801 — 67-1-1808) › Section 67-1-1804 - Exclusivity of procedures

The procedure established by this part is the sole and exclusive jurisdiction for determining liability for all taxes collected or administered by the commissioner of revenue, except that the state board of equalization shall have jurisdiction concurrent with the chancery court in inheritance tax cases in which only issues of valuation are raised, as provided by §
67-8-411
, and the board designated in §
67-8-116
shall have jurisdiction concurrent with the chancery court in gift tax cases in which only issues of valuation are raised, as provided by §
67-8-116
.
Acts 1986, ch. 749, § 8.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 1 - GENERAL PROVISIONS (§§ 67-1-101 — 67-1-1808) › Part 18 - TAXPAYER REMEDIES FOR DISPUTED TAXES (§§ 67-1-1801 — 67-1-1808) › Section 67-1-1806 - Rules and regulations

The commissioner of revenue is authorized to promulgate rules and regulations and to prescribe forms to implement this part.
Acts 1986, ch. 749, § 10.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 1 - GENERAL PROVISIONS (§§ 67-1-101 — 67-1-1808) › Part 18 - TAXPAYER REMEDIES FOR DISPUTED TAXES (§§ 67-1-1801 — 67-1-1808) › Section 67-1-1807 - Applicable laws - Conditions precedent for recovery - Conflicting laws

(a)
All taxes paid on or after January 1, 1986, shall be governed by the laws regarding refunds and suits for the recovery of taxes as set out in this part.
(b)
(1)
It shall not be a condition precedent for suit for recovery of taxes paid on or after January 1, 1986, that the taxes be paid under protest, involuntarily, or under duress.
(2)
No suit for the recovery of any tax paid prior to January 1, 1986, shall be allowed unless such tax was paid under protest.
(c)
To the extent that this section conflicts with any other law, this section shall control and supersede all such laws.
Acts 1986, ch. 749, § 11; 1987, ch. 92, § 1.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-101 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
(A)
"Bond" means all obligations issued by any person, firm, joint-stock company, business trust or corporation organized and doing business under the laws of this state, or any other state, evidenced by an instrument whereby the obligor is bound to pay interest to the obligee regardless of whether the obligor is doing business in this state, or whether the obligation under the terms of which the interest accrues is a mortgage or lien on property located in this state or beyond the jurisdiction of the state;
(B)
"Bond" does not include:
(i)
Ordinary commercial paper, trade acceptance, etc., maturing in six (6) months or less from the date of issuance; or
(ii)
Certificates of deposit, repurchase agreements or similar evidences of indebtedness;
(2)
"Commissioner" means the commissioner of revenue;
(3)
"Corporate property" means the franchise, corporate excess or intangible value of the corporation as well as all other property;
(4)
"Deficiency" means:
(A)
The amount by which the tax imposed by this chapter exceeds the amount shown as the tax by the taxpayer upon the taxpayer's return; or
(B)
If no amount is shown as the tax by the taxpayer upon the taxpayer's return, or if no return is made, the correct amount of the tax;
(5)
"Person," "it," or any other singular pronoun means every natural person, inhabitant, resident, beneficiary of every trust or estate, partnership, joint-stock company, business trust, corporation or any other form of organization in receipt of dividends from corporate stocks and/or interest on bonds as defined in this section, regardless of the sources from which such income is derived, except as otherwise expressly provided. Any person who has a legal domicile in Tennessee shall be subject to the tax imposed; every person who maintains a place of residence in Tennessee for more than six (6) months in the tax year shall be subject to the tax imposed by this chapter, regardless of what place such person may claim as a legal domicile;
(6)
"Stocks" means shares of stock issued by corporations chartered and organized under the laws of the state of Tennessee, or of any other state, or of the United States, or of any foreign government, and all interests in partnerships, associations, or trusts represented by transferable evidence of such interest; and
(7)
"Taxpayer's tax year" means the calendar year, unless a fiscal year is elected by the taxpayer when the first fiscal year return is due to be filed.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 3; 1933, ch. 60, § 1; 1949, ch. 185, § 3; C. Supp. 1950, § 1123.3; Acts 1959, ch. 290, § 1; 1963, ch. 271, § 2; 1967, ch. 176, §1; 1982, ch. 652, § 1; T.C.A. (orig. ed.), §§ 67-2601, 67-2624; Acts 1985, ch. 58, § 1; 1985, ch. 364, § 1; 1989, ch. 186, § 1.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-102 - Imposition, rate and collection of tax

An income tax shall be levied and collected annually on incomes derived by way of dividends from stocks or by way of interest on bonds of each person, partnership, association, trust and corporation in this state who received, or to whom accrued, or to whom was credited during any year income from the sources enumerated in this section, except as otherwise provided in this chapter. The rate of the tax imposed by this chapter shall be:
(1)
For any tax year that begins on or after January 1, 2017, and prior to January 1, 2018, four percent (4%);
(2)
For any tax year that begins on or after January 1, 2018, and prior to January 1, 2019, three percent (3%);
(3)
For any tax year that begins on or after January 1, 2019, and prior to January 1, 2020, two percent (2%);
(4)
For any tax year that begins on or after January 1, 2020, and prior to January 1, 2021, one percent (1%); and
(5)
For any tax year that begins on or after January 1, 2021, and for subsequent tax years, zero percent (0%).
Amended by 2017 Tenn. Acts, ch. 181, s 13, eff. 4/26/2017.
Amended by 2016 Tenn. Acts, ch. 1064, s 1, eff. 5/20/2016.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 1; 1937, ch. 117, § 1; 1937, ch. 297, § 1; C. Supp. 1950, § 1123.1; modified; Acts 1967, ch. 176, § 2; T.C.A. (orig. ed.), §§ 67-2602, 67-2603; Acts 1985, ch. 395, § 2.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-103 - Tax for state purposes only

Subject to §
67-2-119
, the tax provided for in this part is for state purposes only, and no county or municipality shall have power to levy the tax.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 2; mod. C. Supp. 1950, § 1123.2; modified; T.C.A. (orig. ed.), § 67-2604.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-105 - Back assessments prohibited

Stocks and bonds upon the income from which a tax is imposed under this chapter shall not be back assessed for taxation by the state or any municipality, county or political subdivision of the state and the state of Tennessee and municipalities, counties and political subdivisions of this state, and the officials and representatives of the state are expressly prohibited from back assessing for ad valorem tax any such stocks and/or bonds for any year or years.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 11; C. Supp. 1950, § 1123.26; T.C.A. (orig. ed.), § 67-2608.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-108 - Confidentiality of returns

(a)
Except in accordance with proper judicial order or as otherwise required by law, it is unlawful for the commissioner and any deputy, agent, clerk or other officer or employee, to make known in any manner the amount of income or any particular set forth in any report or return required under this chapter, nor shall the information contained in any report filed by any taxpayer under the requirements of this chapter be used by the state or any county or municipality for the purpose of imposing any other or different tax on any such taxpayer; provided, that nothing in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns by legal representatives of the state in any suit or suits for the collection of the tax or any part of the tax or for the penalty and interest imposed by this chapter.
(b)
A violation of any of this section is a Class A misdemeanor.
(c)
The commissioner of revenue may permit the commissioner of the internal revenue service, or the proper officer of any state imposing a tax similar to that imposed by this chapter, or the authorized representative of either such officer, to inspect the tax return of any corporation, or may furnish to such officer or to the officer's authorized representative an abstract of the return of any corporation or supply the officer or representative with information concerning any item contained in any return; but such permission shall be granted or such information furnished to such officer or representative only if the statutes or regulations of the United States or of such other state, as the case may be, grant substantially similar privileges to the governor or the proper officers of this state charged with the administration of this chapter.
(d)
Municipal and county assessors of property shall be permitted by the commissioner and any deputy, agent, clerk, or other officer or employee, to inspect the tax return of any corporation and, upon request of such municipal or county assessors of property, the commissioner and any deputy, agent, clerk, or other officer or employee, shall be required to furnish to such assessor of property or the assessor of property's authorized representative an abstract of the return of any corporation or supply the assessor of property or representative with information concerning any item contained in any return.
Acts 1931 (2nd Ex. Sess.), ch 20, § 12; 1937, ch. 117, § 5; C. Supp. 1950, § 1123.27; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 271, § 3; T.C.A. (orig. ed.), § 67-2630; Acts 1989, ch. 591, §§1, 6; 2008 , ch. 971, § 1.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-109 - Brokers - Liability for return and tax

When and if a broker or commission dealer does not make physical delivery to the broker's or commission dealer's customers of stocks and bonds, income from which is taxable under this chapter, but retains possession or title, or both, in such broker or commission dealer or through a nominee agent depository of such security and receives such income or credit for the stocks and bonds, the broker or commission dealer shall report such income to the commissioner, and pay the tax on the income measured by the dividends or interest credited, or which should be credited, to the accounts of the broker's or commission dealer's customers, unless the broker or commission dealer furnishes to the commissioner a list of the broker's or commission dealer's customers, with the last known address of each, to whom such dividends or interest have been paid or credited and the amount of the dividends or interest.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 13; C. Supp. 1950, § 1123.28; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 67-2615.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-110 - Fiduciaries - Liability for return and tax

(a)
Trustees, guardians, administrators, executors, and other persons acting in a fiduciary capacity who receive income taxable under this chapter for the benefit of residents of Tennessee shall be required to make returns under this chapter and to pay the tax levied by this chapter. However, a trustee of a charitable remainder trust, as defined in Internal Revenue Code § 664 (
26 U.S.C. § 664
), shall not be required to make returns under this chapter nor to pay the tax, but shall report to each resident beneficiary the amount of taxable income distributed to such resident beneficiary, who shall be liable for the tax under this chapter. Additionally, the trustee of a trust, which is treated under
26 U.S.C. §§ 671-678
as owned by one (1) grantor or one (1) other person and which does not obtain a taxpayer identification number, as permitted under the Internal Revenue Code and accompanying regulations, shall not be required to file returns under this chapter nor to pay the tax, but shall report the total amount of income received by the trustee to the resident grantor or other person, who shall file the return and pay the tax levied by this chapter.
(b)
Trustees, guardians, and other persons acting in a fiduciary capacity who are residents of Tennessee, and who receive income on behalf of nonresident beneficiaries, shall not be required to pay tax under this chapter even though such income be derived from stocks or bonds that would otherwise be assessable under this chapter. However, executors or administrators receiving income taxable under this chapter from stocks or bonds that were the property of a decedent who, at the time of death, resided in Tennessee shall pay tax upon the stocks or bonds until the time as such stocks or bonds have been distributed or transferred to distributees or legatees of the decedent.
Amended by 2013 Tenn. Acts, ch. 480, s 2, eff. 5/20/2013.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 14; 1937, ch. 117, § 3; C. Supp. 1950, §1123.30; T.C.A. (orig. ed.), § 67-2616; Acts 1995, ch. 71, § 1.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-111 - Foreign trust beneficiaries - Liability for return and tax

(a)
Any resident of Tennessee who receives income from a trust estate located outside this state, any portion of which is invested in securities, the income from which is taxable under this chapter, whether the trust estate be revocable or irrevocable, shall file with the commissioner, as part of the resident's income tax return, a sworn statement of the trustee, executor or other administrator of the trust estate showing what portion of the total income received by such Tennessee resident from such estates was derived from securities, the income from which is taxable under this chapter.
(b)
If such resident fails to file such sworn statement from the trustee, executor or other administrator, then the resident shall report for income taxation in the manner otherwise provided in this chapter the entire amount of income received by the resident from such trust estate.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 14; C. Supp. 1950, § 1123.29; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 67-2617.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-112 - Date tax due - Member of armed forces serving during period of hostilities

(a)
The tax or taxes due and payable on account of income received during a taxpayer's tax year shall be paid in full on or before the fifteenth day of the fourth month commencing after the end of the taxpayer's tax year.
(b)
(1)
No tax owed under this chapter by a person in the armed forces of the United States, or called into active military service of the United States, as defined in §
58-1-102
, from a reserve or national guard unit, shall be due until one hundred eighty (180) days following the conclusion of hostilities in which such person is actually engaged outside the United States or one hundred eighty (180) days after such person is transferred from the theater of operations of such hostilities, whichever is sooner.
(2)
A person claiming this delay shall present proof, satisfactory to the commissioner, of such person's deployment and stationing outside the United States during a period of hostilities and proof of such person's return from such deployment.
(3)
This subsection (b) shall expressly apply to personnel stationed outside the United States during Operation Enduring Freedom or other hostilities where the military personnel are entitled to combat compensation as determined by the United States department of defense.
(4)
The estate of any such person who is killed in action in such hostilities shall owe no tax under this chapter, and any liability for any such tax, penalty or interest is forgiven.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 7; 1933, ch. 60, § 3; 1939, ch. 64, § 1; C. Supp. 1950, § 1123.7; Acts 1955, ch. 135, § 1; 1967, ch. 176, § 4; T.C.A. (orig. ed.), § 67-2618; Acts 1991, ch. 397, § 2; 2002, ch. 664, §3; 2003 , ch. 87, § 2; 2004, ch. 800, § 1.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-113 - Powers of commissioner - Assistants

(a)
The commissioner has full supervision of the administration and enforcement of this chapter and of the collection of all taxes imposed under this chapter.
(b)
The commissioner is empowered to call upon other departments of the state for such information and assistance as the commissioner may deem necessary.
(c)
The commissioner has the power to compel the attendance of witnesses and the production of evidence, by subpoena, to administer oaths and to take testimony in relation to any matter under this chapter.
(d)
The commissioner may designate such deputies, appraisers, agents and other assistants as may be necessary for carrying out the full purpose and intent of this chapter. Such deputies, appraisers, agents and assistants, so designated by the commissioner, shall be empowered to represent the commissioner and to perform such duties as are, by this chapter, required of the commissioner, including the power to issue subpoenas and administer oaths, and shall make bonds for the faithful performance of their duties, such bonds to be in such amounts and with such surety or sureties as the commissioner may prescribe.
(e)
The commissioner is further authorized and empowered to and the commissioner shall make all necessary rules and regulations not inconsistent with the terms of this chapter, which rules and regulations shall have the force and effect of law, for the purpose of fully carrying out, interpreting properly, enforcing, and giving effect to this chapter.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 15; C. Supp. 1950, § 1123.31; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 271, §§ 2, 3; T.C.A. (orig. ed.), §§ 67-2619, 67-2620, 67-2634.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-114 - Interest and penalties - Armed forces exclusion - Assessment or collection of tax or liability

(a)
In computing the interest and penalty payable under this section, there shall be excluded, in the case of an individual serving in the armed forces of the United States, or serving in support of such armed forces in an area designated by the president of the United States by executive order as a "combat zone," at any time during the period designated by the president by executive order as the period of combatant activities in such zone, or hospitalized outside the states of the union and the District of Columbia as a result of injury received or disease incurred while serving in such an area during such time, the period of service in such area, plus the period of continuous hospitalization outside the states of the union and the District of Columbia attributable to such injury or disease and the next ninety (90) days thereafter.
(b)
The assessment or collection of any income tax or of any liability to the state of Tennessee with respect to any such tax, or any action or proceeding by or on behalf of the state in connection with the tax, may be made, taken, begun, or prosecuted in accordance with law, without regard to subsection (a), unless prior to such assessment, collection action or proceeding it is ascertained that the individual concerned is entitled to the benefits of subsection (a).
Acts 1963, ch. 271, § 2; 1969, ch. 63, § 1; 1970, ch. 363, § 1; 1980, ch. 885, § 10; T.C.A., § 67-2622; Acts 1985, ch. 396, § 9; 1988, ch. 526, § 21; 2005, ch. 499, § 15.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-115 - Determination of tax by commissioner

(a)
As soon as practicable after the return required is filed, the commissioner shall examine it and determine the correct amount of the tax. If the required return is not filed on or before the date due, the commissioner shall determine the amount of the tax upon the basis of any information the commissioner may possess or obtain.
(b)
Whenever in the judgment of the commissioner it is deemed necessary, the commissioner may require any person, by notice served upon the person by mail, to render under oath such statements or to reveal such information and records as the commissioner deems sufficient to show whether or not such person is liable for tax under this chapter.
(c)
(1)
If the commissioner, in determining the correct amount of the tax, determines that there is a deficiency in respect of the tax imposed by this chapter, the commissioner shall send notice of the deficiency to the taxpayer by mail and shall make demand for the amount of the deficiency, which amount shall be paid by the taxpayer.
(2)
The deficiency, regardless of when paid, shall, for purposes of computing interest and penalty on the deficiency, be deemed to have been due on the due date provided in §
67-2-112
, that is, the fifteenth day of the fourth month commencing after the end of the taxpayer's tax year.
(3)
Notice of deficiency may be issued for the purpose of making or revising, correcting, and/or increasing assessments and/or returns or reports of persons for the year in which such notice may be issued and/or five (5) years preceding such year, but no longer or otherwise; provided, that in the case of a fraudulent return with intent to evade tax or of a failure to file a return, the statute of limitations will not apply.
Acts 1963, ch. 271, § 2; 1967, ch. 176, § 5; T.C.A., §§ 67-2623, 67-2625, 67-2628.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-116 - Distress warrant

The commissioner may issue a distress warrant for the collection of the tax imposed by this chapter, together with interest and penalty on the tax, in accordance with §
67-4-110(a)-(d)
.
Acts 1963, ch. 271, § 2; T.C.A., § 67-2626.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-117 - Commissioner - Payment of revenue to comptroller of the treasury

It is the duty of the commissioner, within thirty (30) days after the receipt by the commissioner of any taxes imposed by the terms of this chapter, to turn over to the comptroller of the treasury the tax or taxes collected in accordance with the terms and provisions of this chapter, less the necessary expenses for the administration of this chapter, which expenses shall not exceed ten percent (10%) of the first two hundred thousand dollars ($200,000), of taxes collected under this chapter during any fiscal year, and five percent (5%) of taxes so received in excess of the sum of two hundred thousand dollars ($200,000). At the time the commissioner turns over such tax to the comptroller of the treasury, the commissioner shall furnish to the comptroller of the treasury a duplicate statement giving the names of the taxpayers, their respective addresses and the amounts paid and dates of payment, and the comptroller of the treasury shall cause such list so furnished to be checked back with the original records in the office of the commissioner, to the end that the statement so furnished to the comptroller of the treasury may be audited and verified.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 9; C. Supp. 1950, § 1123.25; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 271, § 3; T.C.A. (orig. ed.), § 67-2631.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-118 - Disposition of proceeds from penalties

A sum not to exceed three-fifths (
3
/
5
) of all penalties collected during the preceding fiscal year may be used for administrative purposes and for the collection of the tax or taxes imposed by this chapter, such sum to be in addition to that authorized by §
67-2-117
.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 8; C. Supp. 1950, § 1123.23; Acts 1963, ch. 271, § 3; T.C.A. (orig. ed.), § 67-2632.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-119 - Disposition of revenue

(a)
Of the taxes collected under this chapter upon income from stocks and bonds taxable at the rate provided in §
67-2-102
per annum, five-eighths (
5
/
8
) shall be paid into the general fund of the state treasury and the remaining three-eighths (
3
/
5
) shall be distributed among the cities and counties of the state.
(b)
Where a taxpayer residing within the corporate limits of any municipality pays a tax imposed at the rate provided in §
67-2-102
per annum, then three-eighths (
3
/
5
) of the net tax collected from such taxpayer shall be returned to the city within which such taxpayer resides.
(c)
Where a taxpayer residing in a county, but outside the corporate limits of any municipality, pays a tax imposed by this chapter at the rate provided in §
67-2-102
per annum, then three-eighths (
3
/
5
) of the net tax collected from such taxpayer shall be returned to the county within which such taxpayer resides.
(d)
In each instance, the payment to cities and counties covering collections made under this section during any fiscal year shall be made on or before July 31 immediately following the close of that year.
Amended by 2017 Tenn. Acts, ch. 181, s 14, eff. 4/26/2017.
Amended by 2016 Tenn. Acts, ch. 1064, s 2, eff. 5/20/2016.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 17; 1933, ch. 60, § 5; 1937, ch. 117, § 4; 1937, ch. 297, § 2; mod. C. Supp. 1950, § 1123.33; impl. am. Acts 1959, ch. 9, §14; Acts 1963, ch. 271, § 3; 1978, ch. 507, § 1; T.C.A. (orig. ed.), § 67-2633; Acts 1985, ch. 395, §4; 2003 , ch. 355, § 32; 2005, ch. 500, § 4; 2006, ch. 989, § 9.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-120 - Taxpayer remedies

Nothing contained in this chapter shall be construed, in any way, to prevent any taxpayer from showing any legal remedy provided by law, and the taxpayer shall have all the remedy, legal and equitable, now allowed any person for the recovery of taxes and revenue improperly collected by paying the tax under protest.
Acts 1931 (2nd Ex. Sess.), ch. 20, §§ 8, 8-A; C. Supp. 1950, §§ 1123.21, 1123.24; impl. am. Acts 1959, ch. 9, §§ 3, 14; impl. am. Acts 1961, ch. 97, § 1; Acts 1963, ch. 271, §§ 2, 3; T.C.A. (orig. ed.), §§ 67-2627, 67-2629; Acts 1984, ch. 832, § 36.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-121 - Violations - Criminal penalties

(a)
Any person failing to file a return, as required by §
67-2-107
, or any person violating any rule or regulation that may be promulgated by the commissioner under the authority vested in the commissioner in this chapter, commits a Class C misdemeanor.
(b)
The making of a false return with intent to defeat the tax constitutes a Class E felony.
Acts 1931 (2nd Ex. Sess.), ch. 20, § 16; C. Supp. 1950, § 1123.32; Acts 1955, ch. 135, § 4; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 271, §§ 2, 3; 1972, ch. 484, § 1; T.C.A. (orig. ed.), §§ 67-2621, 67-2635; Acts 1989, ch. 591, §§95, 113; 2010 , ch. 1134, § 47.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-122 - Taxes paid on out-of-state shares of Subchapter S corporation

A resident individual who is a shareholder of a Subchapter S corporation that is incorporated and doing business in another state may deduct from the tax otherwise due under this chapter the tax paid to the other state as a result of such income, distributions or dividends; provided, that there exists a tax credit reciprocity agreement between Tennessee and the other state. In no case shall the credit permitted under this section exceed the tax that would be payable to this state.
Acts 1994, ch. 787, § 1.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-123 - Implementation of income tax incentive for participation in college savings plans

(a)
The department shall assist the board of trustees of the college savings trust fund program in the implementation of an income tax incentive established under §
49-7-805(4)
that shall include, but not be limited to, college savings plan incentive inserts in the department's income tax notifications, providing college savings plan incentives information with any website tax payment form, sending other notifications about college savings incentives by electronic means, and providing information about college savings incentives through any other web-based means.
(b)
For any insert included in the mailing of renewal notices that causes the total postal weight to be over one ounce (1 oz.) as permitted by the United States postal service, the board of trustees of the college savings trust fund program shall pay the increased cost of mailing.
Amended by 2017 Tenn. Acts, ch. 400, s 12, eff. 7/1/2017.
Added by 2014 Tenn. Acts, ch. 910, s 28, eff. 5/13/2014.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 2 - INCOME TAXATION (§§ 67-2-101 — 67-2-125) › Section 67-2-124 - Effect of reduction to rate of tax - Annual reduction of tax - Elimination of tax

(a)
The reduction to the rate of tax made by chapter 1064 of the Public Acts of 2016 shall not be construed to absolve any taxpayer of liability for any tax duly levied by this chapter, during a tax year that began prior to January 1, 2016.
(b)
It is the legislative intent that the tax be reduced by one percent (1%) annually through enactments of general bills beginning with the first annual session of the 110th general assembly.
(c)
The income tax levied by this chapter is eliminated for tax years that begin on or after January 1, 2021; provided, however, that this subsection (c) shall not be construed to absolve any taxpayer of liability for any tax duly levied by this section, during a tax year that began prior to January 1, 2021.
Amended by 2017 Tenn. Acts, ch. 181,s 15, eff. 4/26/2017.
Added by 2016 Tenn. Acts, ch. 1064,s 3, eff. 5/20/2016.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 1 - GENERAL PROVISIONS (§§ 67-3-101 — 67-3-103) › Section 67-3-101 - Short title

This chapter shall be known and may be cited as the "Petroleum Products and Alternative Fuels Tax Law."
Acts 1997, ch. 316, § 1; T.C.A., §
67-3-1201
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 1 - GENERAL PROVISIONS (§§ 67-3-101 — 67-3-103) › Section 67-3-102 - Purpose of chapter - Construction

It is the intent of the general assembly in enacting this chapter to:
(1)
Establish an efficient and effective motor fuel tax collection and enforcement system adequate to substantially deter motor fuel tax evasion emanating from sources inside and outside this state;
(2)
Amend prior Tennessee law to change the point of taxation of diesel fuel; and
(3)
Maintain the previously existing system of taxation of petroleum products to the greatest extent possible within the framework of the modifications listed in subdivisions (1) and (2).
Acts 1997, ch. 316, § 1; T.C.A., §
67-3-1202
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 2 - IMPOSITION OF TAXES AND FEES (§§ 67-3-201 — 67-3-206) › Section 67-3-201 - Gasoline tax

(a)
Subject to exemptions provided in part 4 of this chapter, a privilege tax is imposed upon all gasoline, fuel alcohol and substitutes therefor, imported into the state; the tax being levied when the product first comes to rest in the state. The tax shall also be imposed on all gasoline or substitutes therefor refined, manufactured, produced, or compounded in this state, and thereafter sold, stored or distributed in this state. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter. The rate of the tax imposed by this section shall be:
(1)
On or after July 1, 2017, through June 30, 2018, twenty-four cents (24¢) per gallon;
(2)
On or after July 1, 2018, through June 30, 2019, twenty-five cents (25¢) per gallon; and
(3)
On or after July 1, 2019, twenty-six cents (26¢) per gallon.
(b)
No fuel shall be included in the measure of the tax liability under this section unless it shall have previously come to rest within the meaning of the commerce clause of the Constitution of the United States.
Amended by 2017 Tenn. Acts, ch. 181,s 16, eff. 7/1/2017.
Acts 1997, ch. 316, § 1; T.C.A., §
67-3-1301
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 2 - IMPOSITION OF TAXES AND FEES (§§ 67-3-201 — 67-3-206) › Section 67-3-202 - Diesel tax

(a)
Subject to exemptions provided in part 4 of this chapter, and except as provided in subsection (c), a use tax is imposed upon all diesel fuel and all fuel other than gasoline that is suitable for use in a diesel-powered vehicle or that is used or consumed in this state to produce power for propelling motor vehicles; it being the purpose and intent of this section that the taxes being levied on taxable motor fuels under this chapter are in fact a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the state for the collection of such tax. The rate of the tax imposed by this section shall be:
(1)
On or after July 1, 2017, through June 30, 2018, twenty-one cents (21¢) per gallon;
(2)
On or after July 1, 2018, through June 30, 2019, twenty-four cents (24¢) per gallon; and
(3)
On or after July 1, 2019, twenty-seven cents (27¢) per gallon.
(b)
The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
(c)
Notwithstanding subsection (a), diesel fuel that is indelibly dyed in accordance with internal revenue service regulations and is legal for exempt use only shall not be considered subject to the diesel tax imposed under this section, except when used by a commercial carrier to produce power for a means of transportation, as defined in the Transportation Fuel Equity Act, compiled in part 14 of this chapter, in which case a use tax of seventeen cents (17¢) per gallon is imposed on such fuel.
Amended by 2017 Tenn. Acts, ch. 181,s 18, eff. 7/1/2017.
Amended by 2017 Tenn. Acts, ch. 181,s 17, eff. 7/1/2017.
Amended by 2014 Tenn. Acts, ch. 908,s 1, eff. 7/1/2014.
Acts 1997, ch. 316, § 1; T.C.A., §
67-3-1302
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 2 - IMPOSITION OF TAXES AND FEES (§§ 67-3-201 — 67-3-206) › Section 67-3-203 - Special privilege tax

Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on motor fuels in §§
67-3-201
and
67-3-202
, a special privilege tax of one cent (1¢) per gallon is imposed on all petroleum products. The tax 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., §
67-3-1303
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 2 - IMPOSITION OF TAXES AND FEES (§§ 67-3-201 — 67-3-206) › Section 67-3-204 - Environmental assurance fee

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
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 2 - IMPOSITION OF TAXES AND FEES (§§ 67-3-201 — 67-3-206) › Section 67-3-205 - Export tax

An export tax of one-twentieth of one cent (
1
/
20
of 1¢) per gallon is levied upon all of the petroleum products, subject to the special privilege tax provided at §
67-3-203
, which are stored in this state, or have come to rest after shipment in interstate commerce and are stored in this state, and are subsequently exported to points outside of this state. If with respect to these petroleum products the special privilege tax has already been paid, then nineteen-twentieths (
19
/
20
) of the special privilege tax may be credited on a monthly return, or in the alternative, refunded.
Acts 1997 , ch. 316, § 1; T.C.A., §
67-3-1305
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 2 - IMPOSITION OF TAXES AND FEES (§§ 67-3-201 — 67-3-206) › Section 67-3-206 - Maintenance of funding under highway trust fund

Notwithstanding any law to the contrary, if the federal government reduces or eliminates any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title of the federal highway trust fund (
26 U.S.C. § 9501
et seq.), the existing state tax imposed on the sale and/or use of such products shall be adjusted so as to maintain the amount of funding for the Tennessee department of transportation generated by the federal tax. The adjustment in the state tax shall become effective simultaneously with the reduction in the federal tax. The department of revenue is directed to collect such taxes and allocate such taxes in their entirety, less the appropriate cost of administration, to the state highway trust fund for use by the department of transportation. If the federal government elects to increase any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title to the federal highway trust fund after it has reduced or eliminated such taxes, the state tax on the sale and/or use of such products is reduced equal to the amount of the increase by the federal government. No amounts of revenue received pursuant to this section shall be pledged specifically to the payment of debt service on any state bond or note.
Amended by 2013 Tenn. Acts, ch. 164, s 4, eff. 7/1/2013.
Acts 1997 , ch. 323, § 1; T.C.A., §
67-3-1306
; Acts 2006, ch. 1019, § 58; 2008 , ch. 1106, § 40.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 3 - MEASUREMENT OF TAX (§§ 67-3-301 — 67-3-304) › Section 67-3-301 - Measurement of gasoline tax

The tax imposed by §
67-3-201
on taxable gallons imported into this state by a licensed importer shall be measured and levied at the time the product first comes to rest in this state. On a product refined, produced, or compounded in this state, the tax shall be measured and levied on any finished product when first placed into storage for sale or use. For a product removed from a qualified terminal or refinery outside this state, destined for this state under a tax precollection election provided in §
67-3-503
, the tax shall be measured and levied at the time the product is removed across the terminal rack of such out-of-state facility, as if the product were imported and came to rest in this state.
Acts 1997 , ch. 316, § 1; T.C.A., §
67-3-1401
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 3 - MEASUREMENT OF TAX (§§ 67-3-301 — 67-3-304) › Section 67-3-302 - Measurement of diesel tax

(a)
The tax imposed by §
67-3-202
shall be measured by taxable gallons removed, other than through a bulk transfer, by a licensed supplier:
(1)
From the bulk transfer/terminal system or from a qualified terminal or refinery within this state;
(2)
From the bulk transfer/terminal system or from a qualified terminal or refinery outside this state for delivery to a location in this state as represented on the shipping papers; provided, that the supplier imports such taxable motor fuel for the supplier's own account, or such supplier has made a tax precollection election under §
67-3-503
;
(3)
Upon sale in a qualified terminal or refinery in this state to an unlicensed supplier; or
(4)
In other cases in the same manner as the tax imposed by § 4081 of the Internal Revenue Code of 1986 (
26 U.S.C. § 4081
) or the Code of Federal Regulations.
(b)
With respect to the operator of a terminal in this state, the tax imposed by §
67-3-202
shall be measured and levied annually on taxable motor fuel by the amount by which net gallons lost or unaccounted for, including transmix, within the terminal exceed the sum of net gallon gains, plus one-half of one percent (0.5%) times the number of all net gallons removed from such terminal across the rack or in bulk.
Acts 1997 , ch. 316, § 1; T.C.A., §
67-3-1402
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 3 - MEASUREMENT OF TAX (§§ 67-3-301 — 67-3-304) › Section 67-3-303 - Measurement of special privilege tax and environmental assurance fee

(a)
The tax imposed by §
67-3-203
and the fee imposed by §
67-3-204
on petroleum products shall be measured by gallons of petroleum products removed, other than through a bulk transfer, by a licensed supplier:
(1)
From the bulk transfer/terminal system or from a qualified terminal or refinery within this state;
(2)
From the bulk transfer/terminal system or from a qualified terminal or refinery outside this state for delivery to a location in this state as represented on the shipping papers; provided, that the supplier imports such taxable petroleum products for the supplier's own account, or such supplier has made a tax precollection election under §
67-3-503
;
(3)
Upon sale in qualified terminal or refinery in this state to an unlicensed supplier; or
(4)
In other cases in the same manner as the tax imposed by § 4081 of the Internal Revenue Code of 1986 (
26 U.S.C. § 4081
) or the Code of Federal Regulations.
(b)
Anything to the contrary notwithstanding, the special privilege tax and the environmental assurance fee on gasoline shall be measured and levied at the time the product first comes to rest in this state.
(c)
With respect to the operator of a terminal in this state, the tax imposed by §
67-3-203
and the fee imposed by §
67-3-204
, shall be measured and levied annually on petroleum products other than gasoline by the amount by which net gallons lost or unaccounted for, including transmix, within the terminal exceed the sum of net gallon gains, plus one-half of one percent (0.5%) times the number of all net gallons removed from such terminal across the rack or in bulk.
Acts 1997 , ch. 316, § 1; T.C.A., §
67-3-1403
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 3 - MEASUREMENT OF TAX (§§ 67-3-301 — 67-3-304) › Section 67-3-304 - Measurement of floorstock tax

(a)
The taxes and fees imposed by §§
67-3-202
- 67-3-204, on the date of an increase in the tax rate, shall be applicable to previously taxed petroleum products in inventory held for sale by a wholesaler.
(b)
The tax imposed by §
67-3-201
, on the date of an increase in the tax rate, shall be applicable to previously taxed gasoline in inventory held by a supplier, bonded importer, importer or wholesaler, except inventory held at retail.
(c)
The tax imposed by §
67-3-202
shall be applicable to all nonexempt inventory held by any person outside of the bulk transfer/terminal system in this state to the extent such inventory has not previously been subject to the tax imposed by this state under the predecessor motor fuel tax statute; provided, that no tax shall be payable with respect to dyed diesel fuel or fuel held by an exempt user, including governmental agencies described under §
67-3-401
.
(d)
Persons in possession of taxable petroleum products subject to this section shall take an inventory at the start of business on the date that the increased tax rate becomes effective and on January 1, 1998, to determine the gallons in storage for purposes of determining the taxes and/or fees; provided, that in determining the amount of taxable petroleum products taxes and fees due under this section:
(1)
The person may exclude the amount of taxable petroleum products in dead storage;
(2)
For the inventory taken on January 1, 1998, the person may exclude gallons on which taxes and fees at the full rate have previously been paid;
(3)
The person may exclude gallons of dyed diesel fuel from the tax imposed by §
67-3-202
only; and
(4)
The person shall report the gallons listed in this section on forms provided by the commissioner.
(e)
Where gallons in taxable inventory have not previously been subject to the predecessor motor fuel tax statute, the amount of the inventory tax is equal to the tax rate times the gallons in storage, as determined under subsection (c). In the case of an increase in the tax rate, the inventory tax is equal to the new tax rate minus the previous tax rate times the number of gallons previously taxed.
(f)
Payment of this floorstock tax shall be made in accordance with §
67-3-511
.
Acts 1997, ch. 316, § 1; T.C.A., §
67-3-1404
.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 4 - EXEMPTIONS AND REFUNDS (§§ 67-3-401 — 67-3-422) › Section 67-3-402 - Consumer imports exemption

There shall be exempt from the taxes and fees imposed in part 2 of this chapter, taxable motor fuel acquired by an end user out of state, carried into this state in a vehicle fuel supply tank, and consumed from the same tank in which it was imported.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1502.
2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 4 - EXEMPTIONS AND REFUNDS (§§ 67-3-401 — 67-3-422) › Section 67-3-403 - Industrial chemicals and solvents exemption

Industrial chemicals or solvents classified as volatile substances shall not be subject to the taxes or fees imposed in part 2 of this chapter when these industrial chemicals or solvents are neither intended for use nor used as fuels.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1503.