For the exercise of the privileges described, enumerated, or referred to in § 67-4-708, every person shall pay the taxes imposed by §§ 67-4-704 and 67-4-705 according to the dominant business activity of the person as follows:

(1) CLASSIFICATION 1 as described in § 67-4-708(1):

Terms Used In Tennessee Code 67-4-709

  • 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
  • Compensation: means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. See Tennessee Code 67-4-2004
  • Contract: A legal written agreement that becomes binding when signed.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number. See Tennessee Code 67-4-702
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Retailer: means any person primarily engaged in the business of making retail sales. 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
  • State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof. See Tennessee Code 67-4-2004
  • Wholesaler: means any person primarily engaged in the business of making wholesale sales. See Tennessee Code 67-4-702
(A) One-tenth of one percent (1/10 of 1%) of all sales by a retailer classified under § 67-4-708(1)(A), (1)(B) or (1)(C);
(B) One-fortieth of one percent (1/40 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(A);
(C) Three-eightieths of one percent (3/80 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(B) or (1)(C);
(D) One-twentieth of one percent (1/20 of 1%) of all sales by a retailer classified under § 67-4-708(1)(D); and
(E) One thirty-second of one percent (1/32 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(E);
(2) CLASSIFICATION 2 as described in § 67-4-708(2):

(A) Three-twentieths of one percent (3/20 of 1%) of all sales by a retailer; and
(B) Three-eightieths of one percent (3/80 of 1%) of all sales by a wholesaler;
(3) CLASSIFICATION 3 as described in § 67-4-708(3):

(A) Three-sixteenths of one percent (3/16 of 1%) of all sales by a retailer; and
(B) Three-eightieths of one percent (3/80 of 1%) of all sales by a wholesaler;
(4) CLASSIFICATION 4 as described in § 67-4-708(4):

(A)

(i) One-tenth of one percent (1/10 of 1%) of the compensation entitled to under the contract, whether in the form of a contract price, commission, fee or wage, by the persons enumerated in § 67-4-708(4)(A);
(ii) Persons who, during any taxable period, receive more than one hundred thousand dollars ($100,000) of compensation from contracts in a county or incorporated municipality, or both, other than the county or incorporated municipality where domiciled or located, shall be deemed to have a location in the county or municipality, or both, where the work was performed and a business tax return shall be filed for that location for the period in question. Gross receipts reported on a deemed location return shall not be reported on the return of the business’s permanent domicile;
(iii) In computing the measure of the tax, except as provided by this part, no deduction will be allowed on account of the cost of tangible property sold, the cost of materials used, labor cost, reimbursed cost, interest, discount, delivery cost, taxes, or no other expense whatsoever paid or accrued and without any deduction on account of losses; and
(B) One-tenth of one percent (1/10 of 1%) of the gross commissions, margins, fees or other charges by the persons enumerated in § 67-4-708(4)(B); and
(5) CLASSIFICATION 5 as described in § 67-4-708(5):

(A)

(i) One-tenth of one percent (1/10 of 1%) of the gross income of a business classified under § 67-4-708(5)(A); and
(ii) “Gross income of the business” means all interest income, earned discounts, earned lease rentals, commission fees exclusive of insurance commissions, past due charges, contract earnings or charges, collection charges, loan service fees, late fee income and all other income, without any deduction except as provided by this part;
(B) One-fiftieth of one percent (1/50 of 1%) of all sales within the state of a person classified under § 67-4-708(5)(B).
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