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
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
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
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
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
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’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
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
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
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
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
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
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