Tennessee Department of Revenue details who owes $400 professional privilege tax, payment rules and exemptions

The Tennessee Department of Revenue on May 27, 2025, told licensees subject to the state’s professional privilege tax — commonly called “pro fee” — that a $400 payment is due if an individual or registration is active on June 1 (this year’s due date was moved to June 2 because June 1 falls on a Sunday). Department staff explained who is liable, how to pay, and recently enacted exemptions.

Katie Julian, a presenter with the department, said, “The professional privilege tax ... is an occupation tax that is imposed on people with an active Tennessee license or registration to practice specific professions.” She told attendees the information presented was current as of May 27, 2025.

Why this matters: the tax is a state statutory privilege tax applied by license or registration, not by residence or by how much revenue a licensee earns from Tennessee clients. That means out-of-state residents who hold an active Tennessee license on the snapshot date are liable. Department staff emphasized the payment is for the upcoming year (paid in advance) and that only one $400 payment is required per person even if a licensee holds multiple subject licenses.

Who is liable and key limits - Professions listed during the webinar as subject to the tax include persons licensed or registered as lobbyists; securities agents; broker-dealer firms or agents; investment advisers; and attorneys licensed by the Supreme Court of Tennessee. Julian cited the applicable Tennessee statutory provisions as the source for the tax. - The tax is determined by whether a license or registration is active on June 1 of each year. If a license remains active on that date, Julian said, “the $400 is due.” - Only one $400 payment is due per individual regardless of how many subject licenses the person holds. Demi Smith, the department’s subject matter expert, summarized a common broker/dealer situation: single-member LLCs that hold securities registrations may elect to have the payment made under the business or under the individual, “You wouldn’t have to pay under both,” Smith said.

Exemptions and special rules - Military: active U.S. military members who served 180 days or more in the year prior to the due date are exempt if they supply orders or other documentation proving eligibility. The department said a deployed service member may also qualify to delay filing and payment until 180 days after deployment ends or after transfer out of a combat zone. Staff warned the exemption is not automatic year-to-year; affected members must provide supporting documentation. - Age 65 paper-filing exception: a law passed the prior year (referenced in the webinar as public chapter 672) allows persons age 65 or older to file and remit the tax on paper rather than electronically. - Recent legislative changes: presenters noted that in prior years the Tennessee General Assembly removed many professions from pro fee (presenters referenced past public chapters that exempted several occupation groups) and that the department administers the law but does not write it.

Payment, bulk filing and timelines - Online/electronic filing through the department’s TenTap portal is the general requirement. To identify an account for payment, the system accepts two of three identifiers (Social Security number/ITIN, account ID, license number). Lobbyists with no license number should enter 0 in that field. - Bulk filing: firms that remit a single payment for multiple individuals must submit a CSV file in a specified format that lists each person’s identifying information (name, Social Security number, license number, address and account numbers). The department provides a bulk-filing guide and a dedicated email (broker.dealers@tn.gov) for assistance. - Receipts and clearances: taxpayers with TenTap accounts can print submission confirmations; the department also provided steps to retrieve saved submissions. A professional privilege status lookup in the portal can be used to obtain tax clearance information if the licensing board issues license numbers. - Delinquency: about 90 days after the due date the department transmits lists of delinquent accounts to the licensing boards and regulatory agencies that issue the licenses. The department said interest and penalties may apply if payment is not timely made.

Unresolved questions and contact points - The presenters repeatedly stressed that the Department of Revenue enforces and administers the statute but cannot change who the law covers; questions about why certain professions remain taxable should be directed to legislators. For payment or account issues the department gave its call center number (615-253-0600) and the support email (revenue.support@tn.gov).

Ending: Department staff encouraged licensees to act early — set ACH debit or submit payments in advance — and, if they intend to terminate a Tennessee license to avoid the tax, to contact the licensing board well ahead of June 1 so the license can be deactivated in time.