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Revenue Headlines
- Sales Tax Rate on Food to Decrease Beginning July 1, 2012
May 9, 2012 - Revenue Appoints Sampson Assistant Commissioner
May 9, 2012 - Professional Privilege Tax Deadline Approaching - Utilize Revenue's Online Resources to File With Ease
May 3, 2012 - Tennessee Department of Revenue to Hold Free Tax Workshops for New Businesses
May 2, 2012
State Tax Rate Change on Food
House Bill 3761/Senate Bill 3763, passed by the legislature on April 27, 2012, provides for a reduction in the state sales and use tax rate on sales of food and food ingredients. Effective July 1, 2012, the state sales and use tax rate on sales of food and food ingredients is reduced from 5.5% to 5.25%. More information is available in sales tax notice #12-04.
Food and food ingredients are subject to a reduced state sales and use tax rate of 5.25% plus the applicable local tax rate. Prepared food, dietary supplements, candy, alcoholic beverages and tobacco continue to be subject to the general state sales and use tax rate of 7% plus the applicable local tax rate. Businesses selling food items subject to the reduced rate of tax are advised to make necessary changes to allow for this new rate beginning July 1, 2012.
Gift Tax Laws Changed Beginning January 1, 2012
Senate Bill 2777/House Bill 2840, passed by the General Assembly on May 1, 2012, repeals Tennessee's tax on gifts effective January 1, 2012. This means taxpayers giving gifts currently taxed in accordance with Tenn. Code Annotated Section 67-8-101 will not be subject to gift tax. Federal gift tax laws remain in effect - for more information on federal gift tax, please visit www.irs.gov.
Please note that taxpayers giving gifts prior to January 1, 2012 may be subject to Tennessee's gift tax. For more information, click here.
Information Regarding Use Tax on Online Purchases
Public Chapter 624 was signed into law on March 23, 2012. This law requires certain companies meeting specific statutory requirements to notify their Tennessee customers regarding existing use tax requirements under Tennessee law.
Use tax is owed whenever items are purchased outside Tennessee and brought into the state by Tennessee residents. This tax, enacted in 1947, allows taxation of merchandise coming from out-of-state sources that do not collect the state's sales tax. Click here for more information about consumer use tax. Click here to view frequently asked questions about consumer use tax.
Professional Privilege Tax is Due June 1
The Department of Revenue reminds professional privilege tax filers that the deadline for filing and paying Tennessee’s professional privilege tax is June 1. Taxpayers are encouraged to take advantage of the department’s convenient online tax filing and payment options. Utilizing online filing allows taxpayers to submit their return, make a payment and receive confirmation in just minutes. Click here for more information about professional privilege tax.
More Revenue News...
- Revenue Announces Additional Time to File Taxes - Tax bill passed to allow additional time to file Franchise and Excise Tax, Individual Income Tax and Gift Tax returns in certain circumstances. ...More
- Revenue Offers New Electronic Filing Options for Francise & Excise Tax Filings - As part of the Tennessee Department of Revenue’s on-going effort to provide more electronic filing options, tax preparers can now submit Franchise and Excise Tax returns and payments electronically using software commercially-available through approved vendors. ...More
Hot Topics
Alcoholic beverage registrations or renewals require a new registration form to be completed. Click here for more information. - Business Tax returns for taxpayers in Classification 2 are due May 31, 2012.
- Professional Privilege Tax is due June 1, 2012.
Click here to e-file your taxes. - April Collections Information