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Business Tax Exemption

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Reviewed Date: October 24, 2016

Original Author: 
Darden, Ron
Date Created: 
Sep 16, 2008


Subjects:
Taxes--Businesses and professions
Licenses and permits
Businesses--Licenses and permits

Business Tax Exemption

Summary: 
MTAS was asked about business tax exemption and business licenses.

Knowledgebase-Business Tax ExemptionSeptember 16, 2008

Ms. Joyce DiCapo, Administrative Assistant
City of Lawrenceburg
233 West Gaines Street
Lawrenceburg, Tennessee 38464

Dear Joyce

Tennessee Code Annotated, 67-4-708 (3) (c) (i-xvi), states that legal and accounting services are not included as classification 3 businesses and that their gross sales are not subject to the local business tax. Medical services are also exempt. Based on this statute, these businesses are not required to purchase a business license. They purchase their license from the State Licensing Board.

The State Business Tax Guide indicates that real estate sales made by the owner of the real estate are not subject to the business tax; however, other real estate sales are subject to the business tax and are subject to the local business license requirements.

Please call me if you have questions or comments.

Sincerely



Ron Darden
Municipal Management Consultant

CC. MTAS Legal Consultant Josh Jones


Attachment(s):
PDF icon Business Tax Exemption Letter.pdf

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MTAS letters and publications were written based upon the law at the time and/or a specific sets of facts. The laws referenced in the letters and publications may have changed and/or the technical advice provided may not be applicable to your city or circumstances. Always consult with your city attorney or an MTAS consultant before taking any action based on information contained in this database.