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Business Tax Exemption

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Reviewed Date: July 19, 2021


Original Author: 
Darden, Ron
Date of Material: 
Sep 16, 2008

Taxes--Businesses and professions
Licenses and permits
Businesses--Licenses and permits

Business Tax Exemption

MTAS was asked about business tax exemption and business licenses.

September 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.


Ron Darden
Municipal Management Consultant

CC. MTAS Legal Consultant Josh Jones


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