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Reviewed Date: October 24, 2016
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, 2008Ms. Joyce DiCapo, Administrative AssistantCity of Lawrenceburg233 West Gaines StreetLawrenceburg, Tennessee 38464Dear JoyceTennessee 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. SincerelyRon DardenMunicipal Management ConsultantCC. MTAS Legal Consultant Josh Jones
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