Chapter 530 of the Public Acts of 2009 amended the Tennessee Business Tax Act. Effective
January 1, 2010, all businesses operating within Davidson County are required to obtain a business license and report their gross receipts to the Tennessee Department of Revenue on an annual basis.
All businesses will continue to register with the County Clerk within 20 days after commencement of business to receive a business license. Businesses located within the Nashville city limits (Urban Service District - USD) must remit $30 for a business license. Businesses located in the county only (General Service District – GSD) must remit $15 for a business license.
The annual business tax return will be filed on updated tax forms with the Department of Revenue. Additional information is available on the Department of Revenue website at www.TN.gov/revenue/onlinefiling or you may contact them at 1-615-253-0600 (Nashville local and out-of-state) or 1-800-342-1003 (toll-free in Tennessee). The TN Dept. of Revenue’s call center is open 8:00 to 5:00, Central time, Monday through Friday.
The following businesses are exempt: manufacturers, doctors, dentists, veterinarians, attorneys, accountants, schools, religious organizations, insurance agents, loan companies, security exchanges, public utilities or businesses that gross less than $3000 per year.
The following information is designed to inform you of Business Tax in general. It is not intended to completely address the lengthy and complex business tax laws and regulations. After you’ve read the information below, please contact this office if you have any questions. Business Tax is administered and collected by the Tennessee Department of Revenue. Business Tax is classified as a privilege tax for the right to do business within the counties and cities of Tennessee.
HOW DO I OBTAIN A BUSINESS LICENSE
When applying for a business tax license, you must provide the following:
- Business name, business address, business telephone number
- Owner’s name(s), home address, home telephone number, social security number
- Copy of owner(s) driver’s license
- Signature of each owner
The “Application for New Business Tax License“ form is available for download and/or printing
* Also when applying, you will be required to give your dominant business activity of item(s) sold or services rendered that will generate the most sales and/or revenues. This office will properly classify you according to your dominant business activity. Business tax has four (4) different classifications, each with its own tax period and its own tax rate, as shown below. Each classification contains a variety of businesses.
Effective September 1, 2002, Chapter 856 of the Public Acts of 2002 amends the Business Tax by increasing the Business Tax rates
||Tax Rate Per Class for transactions on or after
||01/01 to 12/31
|– 1/10 & 1/20 of 1%
– 1/40 & 3/80 of 1%
||04/01 to 03/31
|– 3/20 of 1%
– 3/80 of 1%
||07/01 to 06/30
|– 3/16 of 1%
– 3/80 of 1%
||10/01 to 09/30
|– 1/10 of 1%
|* Tax rate depends on type of business in this classification
As a courtesy, the Tennessee Departement of Revenue will mail you the appropriate business tax report form at the end of your designated tax period. If for some reason you do not receive your business tax report form, please click here to download. You are required to complete the form, provide the total gross sales and/or revenues for items sold and services rendered, apply the appropriate tax rate and return the form with payment by the assigned due date. Retail sales are sales used to users or consumers who so not resale. Wholesale sales are sales to retailers who resale to users or consumers. If a business has both retail and wholesale sales, then you must determine which sales are 50% or more of the business and apply the appropriate rate. In other words, if retail sales make up more than 50% of the net taxable sales, then they are treated as 100% retail sales, and vice versa.
APPLICATION FOR 2008/2009 BUSINESS TAX REPORT
The “License and Tax Report” form, the “Deduction Sheet,” and the “Instruction Sheet.” The FREE Adobe Acrobat Reader is required to view/print this document. If you have any questions, please call 615-862-6254.
HELP DESK FOR FILING AND RENEWING
You may contact this office in person or by telephone for general assistance in the filing or renewing of your business tax and licenses. Document the clerk’s name and ask for his/her extension for answers to future questions. For additional information please contact (615) 862-6254 extension 77550.
TRANSIENT VENDOR LICENSE
A person/business selling or offering to sell new merchandise to the public on temporary premises and does not have a permanent, fixed location in Tennessee where the business is conducted is considered a transient vendor. A transient vendor can be both a Tennessee resident or an out of Tennessee resident. A transient vendor is required to obtain a 14-day permit from this office to conduct business in this county and/or city. If the permit expires prior to the scheduled ending date, then a new permit must be obtained for an additional 14 days. If the temporary premises is located in the Urban Services District (USD), then the permit fee is $112.00. If located in the General Services District (GSD), the permit fee is $57.00. For additional information please contact (615) 862-6254 extension 77129.
Application for Transient Vendor License
Examples of businesses requiring a transient vendor license are: Convention show booth tenants where products are sold; seminars where products are sold; out of state parades or special event participants.
OTHER LICENSES & PERMITS ISSUED BY THIS DEPARTMENT:
Pawnbroker License – For additional information please call (615) 862-6254 extension 77150.
Sidewalk Encroachment Permit – For additional information please call (615) 862-6254 extension 77150, or 77135.
WHY SOME BUSINESSES ARE AUDITED
All businesses subject to business tax must keep and preserve records showing the gross sales and any other books of account needed to determine the amount of tax due. All such books and records shall be open to inspection at all reasonable hours by this office, and are subject to an audit. Audits are performed to ensure the proper payment of business tax, as well as, the understanding of the tax by the taxpayers. Audit candidates are normally chosen randomly. However, if several businesses in a specific industry do not have an understanding of the law, audits may be performed primarily to assist. By reviewing the records and obtaining an understanding of a specific business, the audit results will determine if the gross sales reported are accurate; the proper deductions are taken; the wholesale and/or retail rate should be applied; all the appropriate credits are applied; the business is required to pay the business tax; as well as, other findings. Some audits may result in a finding of overpayment of the business tax and a refund may be due.