Tax Law

Recent Posts

Tennessee provides guidance on upcoming marketplace facilitator duties regarding occupancy taxes
Posted on 10 Nov 2020 by Eversheds Sutherland LLP

In  Notice 20-20 , the Tennessee Department of Revenue addressed the implementation of S.B. 1778, which will require marketplace facilitators to collect and remit local occupancy taxes levied on short-term rental units beginning January 1, 2021. Marketplace... Read More

Ownership of Tennessee Mortgages Does Not Create Nexus for Foreign Investment Fund
Posted on 30 Oct 2020 by Eversheds Sutherland LLP

A recent letter ruling from the Tennessee Department of Revenue concludes that the ownership of mortgages backed by Tennessee property was insufficient to subject a foreign investment fund (“Fund”) to the state’s franchise and excise taxes. Tennessee... Read More

Tennessee DOR answers FAQs on sales of pre-recorded instructional videos
Posted on 23 Sep 2020 by Eversheds Sutherland LLP

The Tennessee DOR issued three FAQs ( 1 ,  2 ,  3 ) explaining that the sale of a pre-recorded video of an online course is subject to sales tax as the sale of a specified digital product. The tax result is the same whether the video is on-demand or must... Read More

Tennessee Requires Marketplace Facilitators to Collect Occupancy Taxes
Posted on 6 Aug 2020 by Eversheds Sutherland LLP

On July 22, the Tennessee Governor signed into law S.B. 1778, which requires short-term rental unit marketplace facilitators to collect and remit local occupancy tax. The bill, as amended, defines “short-term rental unit marketplace” to mean any person... Read More

On Call: Tennessee DOR Says B2B Digital Services Subject to Sales Tax as “Specified Digital Products”
Posted on 13 Jul 2020 by Eversheds Sutherland LLP

In a recently issued revenue ruling, the Tennessee Department of Revenue determined that a taxpayer’s digital services provided to other businesses were taxable “specified digital products,” a broad term based on definitions (and subject to detailed operating... Read More

Tennessee Enacts Lower Remote Seller and Marketplace Sales Threshold
Posted on 8 Jul 2020 by Eversheds Sutherland LLP

On June 30, Tennessee’s governor signed SB 2932 into law as Public Chapter 759. Effective October 1, 2020, the law requires a dealer or marketplace facilitator with no physical presence in the state and $100,000 in total sales in the state in the previous... Read More

Tennessee Ruling Clarifies Scope of “Digital Products”
Posted on 2 Jul 2020 by Eversheds Sutherland LLP

Tennessee’s sales tax applies to the sale, lease or licensing of specified digital products. By revenue ruling , the Tennessee Department of Revenue explained that sales tax applies to customized on-hold messaging services, digital signage services, and... Read More

Tennessee Court of Appeals Holds Legal Malpractice Settlement Proceeds are Taxable Business Earnings
Posted on 15 Jun 2020 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a manufacturer’s proceeds from a legal malpractice action are business earnings subject to the Tennessee excise tax. The malpractice action arose when the taxpayer’s attorneys improperly filed a European patent... Read More

Tennessee legislature passes marketplace facilitator legislation
Posted on 26 Mar 2020 by Eversheds Sutherland LLP

The Tennessee General Assembly passed S.B. 2182 on March 19 and the measure awaits execution by the Governor. The bill would require marketplace facilitators to collect and remit tax on behalf of their third-party sellers. Specifically, marketplace facilitators... Read More

Tennessee Proposes Marketplace Facilitator Law
Posted on 14 Feb 2020 by Eversheds Sutherland LLP

S.B. 2182 was introduced at the request of the governor. The bill would require marketplace facilitators with over $500,000 of annual in-state sales to collect and remit sales and use tax. If passed, the law would take effect on October 1. Read More

Tennessee Proposes Marketplace Facilitator Law
Posted on 14 Feb 2020 by Eversheds Sutherland LLP

S.B. 2182 was introduced at the request of the governor. The bill would require marketplace facilitators with over $500,000 of annual in-state sales to collect and remit sales and use tax. If passed, the law would take effect on October 1. Read More

This Blows! Tennessee Court of Appeals Says Blow-In Cards, Other Printed Materials Did Not Qualify for Sales Tax Exemptions
Posted on 6 Aug 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a commercial printing company’s sales of bank checks and other printed products were subject to Tennessee sales tax even though the products ultimately were sent to out-of-state destinations. Under the company... Read More

Glass Half-Full: Tennessee Court of Appeals Applies “Dominant Business Activity” Test, Rules for Taxpayer in Business Tax Dispute
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a business that sold and installed automotive glass and also made repairs to automotive glass was properly classified as a seller of tangible personal property (glass), and not as a seller of services, for purposes... Read More

Glass Half-Full: Tennessee Court of Appeals Applies “Dominant Business Activity” Test, Rules for Taxpayer in Business Tax Dispute
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a business that sold and installed automotive glass and also made repairs to automotive glass was properly classified as a seller of tangible personal property (glass), and not as a seller of services, for purposes... Read More

Tennessee rules the “true object” of a bundled transaction is nontaxable data analytics services, not remotely accessed software
Posted on 1 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Department of Revenue issued a letter ruling finding that a taxpayer’s mobile and web data analytics services were not subject to sales and use tax. The taxpayer’s customers installed the taxpayer’s software code, which collected user data... Read More