Tennessee DOR outlines sales tax rules, rates and exemptions for new businesses

Tennessee Department of Revenue staff spent a workshop session explaining sales tax obligations for in-state and out-of-state sellers, the state/local rate split, exemptions and how to use resale and exemption certificates.

Katie Julian, workshop host, said sales tax "is our principal source of revenue here in the state of Tennessee. It accounts for approximately 60% of all tax collections." The presentation stressed differences between tangible personal property (TPP) and services, and the specific statutory thresholds that trigger registration for in-state sellers.

Why this matters: Sales tax is the largest state revenue source and it is the tax most often collected at the point of sale. Errors in rate selection, improper use of resale certificates, or failure to file zero returns when required can…