Tennessee Code 67-4-705 – Levy of local privilege tax for making sales by engaging in any vocation, occupation, business or business activity – Election to continue imposition of tax – Levy of tax by ordinance – Tax on receipts from sales by direct-t…
(a) The making of sales by engaging in any vocation, occupation, business, or business activity enumerated, described, or referred to in § 67-4-708(1)-(4) is declared to be a privilege upon which each incorporated municipality in which the vocation, occupation, business, or business activity is carried on, by ordinance of its governing body, may levy a privilege tax at the rates fixed and provided in § 67-4-709. The tax imposed by this subsection (a) shall be collected by the commissioner in the same manner as the tax imposed by § 67-4-704.
Terms Used In Tennessee Code 67-4-705
Business: includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. See Tennessee Code 67-4-702
Commissioner: means the commissioner of revenue or the commissioner's duly authorized assistants, except as otherwise provided in this part. See Tennessee Code 67-4-702
Sales: means all gross receipts of the taxpayer not allocated under this part. See Tennessee Code 67-4-2004
Services: means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. See Tennessee Code 67-4-702
(b) Notwithstanding subsection (a) or any other provision to the contrary, every incorporated municipality levying such tax as of January 1, 2014, shall be deemed to have made an effective election to continue the imposition of such tax at the same rate that was in effect on such date and shall not be required to pass any additional ordinance. Any incorporated municipality that elects after January 1, 2014, to levy the tax authorized by this section, or elects to change the rate of tax imposed by the municipality, must levy such tax at the rates fixed and provided in § 67-4-709. Every municipality that levies the tax described in subsection (a) is authorized to repeal such tax by ordinance of its governing body.(c) The making of sales by engaging in any vocation, occupation, business, or business activity enumerated, described, or referred to in § 67-4-710 is declared to be a privilege upon which each county or incorporated municipality, or both, in which the business, business activity, vocation, or occupation is carried on, by ordinance of its governing body, may levy a privilege tax at the rates fixed and provided in § 67-4-710.(d) Notwithstanding subsection (a) or any other provision to the contrary, no incorporated municipality shall impose the tax provided for in this section on receipts from sales of any services or tangible personal property made by a provider of direct-to-home satellite television programming services.
