Summary of State and Local Taxes

STATE FRANCHISE AND EXCISE TAX

Franchise and excise taxes are privilege taxes imposed on each corporation, limited partnership, limited liability company and business trust chartered/organized in Tennessee or doing business in this state.

DUE DATES
Annual – 15th day of the fourth month following the close of your books and records.

Quarterly estimated payments - 15th day of the fourth, sixth, and ninth months of the current tax year and the 15th day of the first month of the next succeeding tax year.

Extension – 6-month extension upon request

TAX RATES
Franchise tax – .25% of the greater of net worth or real and tangible property in Tennessee. The minimum tax is $100.

Excise tax – 6.5% of Tennessee taxable income

CONTACT PHONE NUMBERS
Statewide toll-free: (800) 397-8395
Nashville and Out-of-state: (615) 253-0700

STATE SALES AND USE TAX

State sales and use tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services.

Tennessee cities and counties have the option of imposing an additonal local option sales tax.

Use Tax

The use tax is the counterpart to the sales tax. Use tax is applied when merchandise (tangible personal property) is purchased from outside the state of Tennessee and imported into the state for use or consumption. The 45 states that impose a sales tax also levy a use tax.

DUE DATES
Monthly, Quarterly, Annually (based on qualifications): 20th day of the month following the end of the reporting period.

Depending upon the frequency of your purchases, you may file quarterly or annually.

Quarterly - 20th of the month following the end of the quarter.

Annually - January 20.

TAX RATES

State tax - 6% tax on food and food ingredients; 7% on all other tangible personal property unless specifically exempted.

State Single Article Rates - 2.75% on any single item sold in excess of $1,600 but not more than $3,200.

The use tax rate is the same as the sales tax rate.

Local tax - set by the local government - see local tax chart.

CONTACT PHONE NUMBERS

State of Tennessee Department of Revenue

Statewide toll-free: (800) 342-1003
Nashville and Out-of-state: (615) 253-0600

LOCAL BUSINESS TAX

The business tax may be assessed for the privilege of conducting business within any county and/or incorporated municipality.

REGISTRATION
Business owners should contact their local county or municipal clerk for registration information and forms.

TAX RATES AND DUE DATES

Business owners should contact their local county or municipal clerk for tax rate, payment information and tax return forms.

CONTACT PHONE NUMBERS
Business owners should contact their local county or municipal clerk.

LOCAL PROPERTY TAXES

Property taxes are assessed and collected by the local governments. County assessors of property appraises real estate for assessment purposes. The county commission and city governing bodies determine local property tax rates. The property taxes are collected by county trustees and city collecting officials.

The State Board of Equalization establishes policies and procedures for local assessors of property and hears property appeals beyond the county level. The Division of Property Assessments, a division of the Comptroller of the Treasury, monitors the work of assessors to ensure proper procedures are followed, provide technical assistance during re-appraisal programs, and provide manuals and educational programs for use by assessors.

To calculate your property tax, multiply the appraised value by the assessment ratio for the property's classification; then multiply this sum times the tax rate.

The assessment ratio for the different classes of property is established by state law (residential and farm @ 25% of appraised value, commercial/industrial @ 40% of appraised value).

For more information, contact your local assessor of property. For Wilson County, Tennessee Property Assessor's office call 615.444.8661