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 67-4-723 - License - Issuance and renewal - Duty to exhibit license - Use of collected funds

(a)
(1)
Upon receipt of the prescribed application and payment of fifteen dollars ($15.00), together with any other information reasonably required, it shall be the duty of the county clerk, in the case of taxpayers located within the county, and the appropriate city official, in the case of taxpayers located within the incorporated municipality, to issue a license to the taxpayer. If a taxpayer has more than one (1) location within the county or incorporated municipality, a separate license, including payment of the fifteen-dollar fee required by this subsection (a), shall be required for each location. In the case of the county clerk, three dollars ($3.00) of the fifteen-dollar fee shall be earmarked for computer hardware purchases or replacement, but may be used for other usual and necessary computer-related expenses at the discretion of the county clerk. The earmarked amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended.
(2)
In addition to the initial license issued under subdivision (a)(1), the issuing official shall renew the license upon notification from the department that the taxpayer has filed the return required under §
67-4-715
and remitted the amount shown to be due on the return. There shall be no fee charged for the renewal of a license issued under this subsection (a).
(3)
Each license issued under this subsection (a) shall expire thirty (30) days after the date that the taxpayer's return is due under §
67-4-715
.
(4)
No person shall conduct business in this state without first acquiring the license required by this subsection (a).
(5)
Notwithstanding subdivisions (a)(1) and (2), any county or municipality may, but shall not be required to, enter an agreement with the commissioner pursuant to which the department will issue or renew, or both, the license required by this subsection (a) on behalf of the county or municipality.
(6)
Persons described in §
67-4-708(5)
and taxable under §
67-4-709(5)
shall not be required to obtain a license under this subsection (a).
(b)
(1)
Notwithstanding any provision to the contrary, any incorporated municipality that imposes the tax authorized by §
67-4-705(a)
and every county shall issue a minimal activity license to any person that is exempt from taxation and licensing pursuant to §
67-4-712(d)
, provided that such person has sales of more than three thousand dollars ($3,000) but less than one hundred thousand dollars ($100,000) per year within the jurisdiction. Such license shall be issued upon receipt of an application, to be prescribed by the department, and payment of fifteen dollars ($15.00). The application shall require the applicant to attest that the applicant is engaged in business within such county or incorporated municipality but has sales of less than one hundred thousand dollars ($100,000) per year within such county or incorporated municipality. No person with sales of more than three thousand dollars ($3,000) but less than one hundred thousand dollars ($100,000) per year within such county or incorporated municipality shall conduct business in such county or incorporated municipality without first acquiring the license required by this subsection (b). If a person has more than one (1) location within the county or incorporated municipality, a separate minimal activity license, including payment of the fifteen-dollar fee required by this subsection (b), shall be required for each location. Every county or incorporated municipality that issues minimal activity licenses pursuant to this subsection (b) shall provide the department, if requested, with the identity of each licensee and any other information reasonably required by the department to verify the licensee's compliance with this part.
(2)
Persons with sales of three thousand dollars ($3,000) or less per year in any incorporated municipality or county may, but do not have to, apply for a minimal activity license, as provided for in this subsection (b).
(3)
Each minimal activity license issued under this subsection (b) shall expire thirty (30) days after the dates set forth in §
67-4-715
as if the person were filing a return.
(4)
This subsection (b) shall not operate to exempt any person from filing a tax return pursuant to §
67-4-715
in the event that the person's sales exceed one hundred thousand dollars ($100,000) during their tax year as otherwise provided in §
67-4-715
.
(5)
Notwithstanding subdivision (b)(1), any county or municipality may, but shall not be required to, enter an agreement with the commissioner pursuant to which the department will issue or renew, or both, the license required by this subsection (b) on behalf of the county or municipality.
(c)
It shall be the duty of each taxpayer that receives a license under this section to exhibit such license.
(d)
An amount equal to three dollars ($3.00) per minimal activity license shall be retained by the county clerk or city official that issues such license. In the case of a county clerk, such amount shall be earmarked for computer hardware purchases or replacement but may be used for other usual and necessary computer-related expenses at the discretion of the county clerk. The amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended. Notwithstanding §
8-21-701
, no additional fee shall be charged to any person for the filing of the application or issuance of the license provided for in this section.
(e)
Licenses already in effect as of January 1, 2014, continue to be valid until their original renewal date.
Amended by 2023 Tenn. Acts, ch. 377,s 10, eff. 5/11/2023, app. to tax years ending on or after December 31, 2023.
Amended by 2023 Tenn. Acts, ch. 377,s 9, eff. 5/11/2023, app. to tax years ending on or after December 31, 2023.
Amended by 2018 Tenn. Acts, ch. 756, s 1, eff. 4/18/2018.
Amended by 2014 Tenn. Acts, ch. 942,s 6, eff. 7/1/2014.
Amended by 2013 Tenn. Acts, ch. 313, s 20, eff. 1/1/2014.
Acts 1971, ch. 387, § 20; T.C.A., § 67-5819; Acts 2009 , ch. 530, § 91.