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Tennessee Department of Revenue outlines taxes, TenTap registration in new-business workshop
Summary
Department officials walked new and prospective business owners through Tennessee sales/use, business, and franchise & excise taxes, explained filing thresholds and penalties, and demonstrated TenTap account registration and tools for managing tax accounts and resale certificates.
The Tennessee Department of Revenue hosted a New Business Tax Workshop to walk new and prospective business owners through state tax obligations and online tools.
Jeremy Kane, with the Department of Revenue’s Taxpayer Services division, opened the session and said the goal was to give attendees ‘the right foot’ start for registering and managing tax accounts. ‘‘Sales tax applies to retailers with over $4,800 annually in the sale of tangible personal property and…providers of $1,200 annually in taxable services,’’ Kane said, summarizing the workshop’s central filing thresholds.
Why it matters: Kane and colleagues stressed that missing registrations or filing obligations can trigger automated bills and penalties, and that many small businesses can avoid headaches by using the Department’s online resources and the TenTap portal.
Key takeaways
- Business tax and minimal-activity license: Kane explained that businesses with gross receipts between $3,000 and $100,000 qualify for a $15 minimal-activity license and are not required to file an annual business-tax return; businesses over $100,000 generally must hold a standard business license and file returns. Kane said the higher thresholds reflect changes enacted in 2023.
- Sales and use tax thresholds and scope: Sales tax is location-based and Tennessee’s state rate is 7 percent; local rates vary. Kane emphasized that sales tax applies not only to sales of tangible goods but to services performed on tangible personal property (for example, repair services) and noted the practical difference between tangible personal property and real property (construction/remodeling).
- Franchise and excise tax: Kane summarized that franchise tax is based on net worth while excise tax is based on net earnings; these taxes generally apply to corporations and entities registered with the Tennessee Secretary of State and have annual filing deadlines (the 15th day of the 4th month after fiscal-year end). Extensions and estimated payments may apply to some businesses.
- TenTap portal demonstrated: ‘‘TenTap is like online banking for your business,’’ Kane said, showing how to register a new business, select tax accounts, create user IDs, file returns, schedule payments, view letters and certificates (including resale certificates), and manage access for accountants or bookkeepers. Kane advised that if a county or city clerk has already registered a business, that record will exist in TenTap and taxpayers should create credentials rather than duplicate registrations.
- Resale certificates and marketplace sellers: The presenters advised wholesalers and retailers to keep resale certificates on file, and that each physical location needs its own certificate. For marketplace sellers (platforms that collect and remit tax), sellers should review platform agreements; sales shipped out of state may be exempt as interstate commerce.
- Penalties, delinquency and closing accounts: Kane warned that penalties are assessed at 5 percent of unpaid amounts per month (or partial month) up to a 25 percent maximum, plus interest, and urged businesses to file even zero returns when required. He also underscored the need to close accounts in TenTap and file final returns when a business permanently closes to stop recurring notices.
Quotes and exchanges
- Jeremy Kane: ‘‘TenTap is like online banking for your business,’’ illustrating the portal’s central role in account management. - Dan Vincent (Taxpayer Education/assistant director): ‘‘There’s almost 30 different kinds of taxes in Tennessee,’’ underscoring why the department focuses workshops on the most common obligations.
Resources and next steps
Kane and staff pointed attendees to the Department’s Taxpayer Education pages and tax manuals on www.tn.gov/revenue, provided the email revenue.support@tn.gov and phone lines ((615) 253-0600; franchise/excise 615-253-0700), and said the webinar recording and materials would be posted to the department’s website and YouTube channel within one to two days. They also reminded attendees to complete the CPE survey if applicable.
The session concluded with a reminder about upcoming webinars on TenTap navigation and legislative updates.
