Business Tax
Phone: 865.215.2392
Fax: 865.215.3156
Email: business.taxes@knoxcounty.org
(Follow links for more information)
- Application for Business Tax License
- Exemptions from the Business Tax
- Classifications for Tax Purposes
- Gross Receipt Business Tax Reporting Periods
- Gross Receipts Business Tax Rates
- Deductions from Gross Receipts Reported for Business Tax Purposes
- Credits Taken on Gross Receipts Business Taxes Due
- Gross Receipts Business Tax Filing & Payment Due Dates
- Delinquent Gross Receipts Business Taxes
- Settlement Upon Termination of Business
- Taxpayer Records
- Other Taxes Imposed on Various Business Activities
The Knox County Clerk’s Office now accepts Visa and MasterCard Credit & Debit card
payments for most services.*Convenience fees do apply. See Clerk for details.
Application for Business Tax License
Prior to engaging in business inside Knox County, every person taxable under the Business Tax Act must register with the Knox County Clerk and the City of Knoxville Department of Finance, if located within the municipal boundaries of Knoxville. However, businesses located outside the Knoxville City limits are not required to register with the city tax collector, nor are those businesses required to pay the City of Knoxville Gross Receipts Business Taxes. (TCA 67-4-706)
It shall be the duty of each taxpayer to exhibit the license so received.(TCA 67-4-723)
- $22.00 Fee ($15.00 Minimum Tax + $7.00 Recording Fee)
- 20 grace period to obtain Business License
- Application contains information regarding: Business Name, Location Address, Mailing Information, Ownership, Structure, Date Business will or did start, Dominant Item or Activity, Estimated Percentage of Retail and Wholesale Receipts.
- Application used to determine Classification.
- Click here to download an application for a Knox County Business Tax License
Exemptions from the Business Tax:
State Privilege Tax Laws exempt a number of business activities from
the Gross Receipts Business Tax
(T.C.A. Code 67-4-712).
The list below contains some, but not all, activities which do not require a
Knox County Business Tax License or the payment of the tax:
- Certain Blind Persons.
- Disabled Veterans.
- Persons in capacity as employee.
- Orders for future delivery.
- Manufacturers.
- Newspaper Carriers.
- Religious or Charitable Organizations.
- Participants in State Fairs.
- Sales of Produce or Livestock by Farm Owner.
- Admissions to Amusements, Shows, or Theatrical Productions within an enterprise zone.
- Persons required to pay Professional Privilege Tax and obtain license from the State,
(Doctors, Lawyers, Architects, Engineers, Surveyors, Banks, etc.). - Domestic Services Provided in Private Residence.
- Insurance Carriers and Agents.
- Disposition or Management of One’s Own Property.
- Accounting, Auditing, Bookkeeping Services.
- Public Utilities.
- Educational Services by Schools, Colleges, Universities, etc.
- Businesses Licensed by FCC, SEC, or ICC.
Classifications for Tax Purposes
Businesses, vocations and occupations which are taxable are set forth in the following classifications; provided, that each person shall be classified according to the dominant business activity:
(TCA 67-4-708)
- Class 1- Food and/or beer generally destined for home consumption; Sales of Lumber, Building materials, Tools, Paint and Glass, Electrical supplies, HVAC components and supplies; Lawn and Garden/ Farm Supplies; Motor Vehicle Fuel.
- Class 2- New & Used Motor Vehicles, Off-Road Vehicles, Recreational Vehicles, Boats; Sales of Apparel and Accessories; Sales of Home Furnishings, Radio and Television Equipment, Musical Instruments, Household Appliances, Cleaning Supplies; Prescription Drugs and Patented Medicines; Prepared Food and Drinks; Sales of Coal, Wood, Ice, Fuel Oil and LP Gas.
- Class 3- Business and Personal Services; Book Stores; Stationery and Art Supplies; Antiques; Tobacco Products; Sporting Goods; Toys, Games, Novelties and Gifts; Cameras and Photographic Supplies; Optical Supplies; Jewelry and Gemstones; Pets and Pet Supplies; Pawn Shops; Swimming Pools; Luggage; Fireworks; Delicatessens; Custom Clothing; Office Supplies; Bait and Tackle; Collectibles.
- Class 4- Construction Contractors; Special Trades; Excavation; Quality Testing; Exterminating/ Pest Control; Transmission Line Installations; Sales of Farm Produce.
Gross Receipt Business Tax Reporting Periods:
- Class 1- January 1st to December 31st.
- Class 2- April 1st to March 31st.
- Class 3- July 1st to June 30th.
- Class 4- October 1st to September 30th.
All Classes have a 60-Day Grace Period to Report and Pay Taxes.
Gross Receipts Business Tax Rates
For the exercise of the privileges described or enumerated in § 67-4-708, a minimum tax of fifteen dollars ($15.00) shall be payable by each person for each fixed place, location or outlet from which business is carried on, and;
In addition to the minimum tax, persons shall pay a tax, according to the dominant business activity of such persons as follows:
- Class 1(A/B/C)- Retail- 1/10th of 1%. (Gross Receipts X 0.001= $________)
(A)-Wholesale- 1/40th of 1%. (Gross Receipts X 0.00025= $________)
(B/C)- 3/80th of 1%. (Gross Receipts X 0.000375= $________)
(D)- Retail- 1/20th of 1%. (Gross Receipts X 0.0005= $________)
- Class 2- Retail- 3/20th of 1%. (Gross Receipts X 0.0015= $________)
Wholesale- 3/80th of 1%. (Gross Receipts X 0.000375= $________)
- Class 3- Retail- 3/16th of 1%. (Gross Receipts X 0.001875= $________)
Wholesale- 3/80th of 1%. (Gross Receipts X 0.000375= $________)
- Class 4- Retail- 1/10th of 1%. (Gross Receipts X 0.001= $________)
20% of Retail or Wholesale to take rate if outside of dominant activity.
Deductions from Gross Receipts Reported for Business Tax Purposes:
(Schedule A of Knox County Business Tax Reporting Form)- Cash discounts allowed and taken on sales.
- Merchandise returns for cash or credit.
- Amounts allowed as trade-in on like items.
- Sales of services performed in other states.
- Sales where delivery is taken out of state.
- Amounts paid to subcontractors. (Some Restrictions)
- Balances due on repossessions.
- Charge-off debts for un-collectible accounts (during tax period).
- Federal excise tax on beer, motor fuel, and tobacco products.
- Tennessee taxes on beer, motor fuel, and tobacco products.
Credits Taken on Gross Receipts Business Taxes Due:
The following credits may be taken by persons filing and paying the tax imposed by this part:
(TCA 67-4-713)
(1) The minimum tax actually paid; ($15.00 Paid with initial license or license renewal)
(2) Except as provided in subdivision (a)(4) or (a)(8), personal property taxes properly paid pursuant to chapter 5, part 5 of this title;
(A) Personal property taxes assessed pursuant to audit and subsequently paid may be taken as a credit either on the business tax return filed for the year in which the additional personal property tax was paid or on the return covering the immediately previous year. If the credit is taken in the previous year, an amended business tax return must be filed for that year; NO CREDIT MAY BE TAKEN AGAINST THE 50% INCREASE ENACTED UNDER THE TAX REFORM ACT OF 2002.
(3) In cases where a lease or rental agreement provides specifically for payment of personal property taxes by the lessee or renter to the lessor or owner, personal property taxes paid by the lessee or renter to the lessor or owner covering any period of time extending beyond June 1, 1971, arising from assessments referred to in subdivision (a)(3) and made against the lessor or owner. The credit authorized in this subdivision (a)(4) to the lessee or renter may not be taken by the lessor or owner;
The sum of the credits allowable under subdivisions (2) and (3) may not exceed the amount owed from applying the prescribed tax rate against the measure of the tax.
Gross Receipts Business Tax Filing & Payment Due Dates:
The minimum tax per annum for each location or outlet, imposed under § 67-4-709, shall be due and payable by all persons taxable under this part on the following dates:
(1) On the date of commencement of each business and the opening of each additional outlet;
(2) For all persons taxable under the following classifications, on the following dates:
- Each December 31 for Classification 1;
- Each March 31 for Classification 2;
- Each June 30 for Classification 3;
- Each September 30 for Classification 4.
Delinquent Gross Receipts Business Taxes
The taxes imposed in this part shall become delinquent as follows:
(1) The minimum tax due and payable by all persons who open additional outlets or begin to engage in business shall be delinquent twenty (20) days after such opening or commencement; and
(2) On the following dates, including the minimum taxes imposed by § 67-4-714(3) by the following classifications:
(A) On each March 1, for all persons taxable under Classification 1;
(B) On each June 1, for all persons taxable under Classification 2;
(C) On each September 1, for all persons taxable under Classification 3;
(D) On each December 1, for all persons taxable under Classification 4;
Settlement Upon Termination of Business
(a) If any person liable for any tax, penalty or interest levied by this part shall sell out the person's business or stock of goods, or shall quit the business, the person shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business. If no taxes are due, the $5.00 collecting and recording fee shall be paid over to the appropriate taxing authorities.
(b) The person's successor, successors, or assigns, if any, shall withhold sufficient of the purchase money to cover the amount of such taxes, interest, and penalties due and unpaid until such former owner shall produce a receipt from the county clerk in the case of counties, and proper city collector in the case of cities, showing that they have been paid, or a certificate stating that no taxes, interest or penalties are due.
(c) If the purchaser of a business or stock of goods shall fail to withhold the purchase money as provided in subsection (b), the purchaser shall be personally liable for the payment of the taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners, or assigns.
(d) (1) Nothing in this section shall apply to any licensee transferring a business from one location to another,
within the same municipality, on a one-time basis during any annual taxable period.
Taxpayer Records
It is the duty of every person required to pay a tax under this part to keep and preserve records showing the gross amount of sales tax owed to the state, and the amount of such person's gross receipts taxable under this part, and such other books of account as may be necessary to determine the amount of tax due under this part, and all such books and records shall be open to inspection at all reasonable hours to the commissioner, commissioner of commerce and insurance, county clerk or other proper city tax collecting official or any person duly authorized by either of them.
All such books and records shall be maintained by the taxpayer for a period of three (3) years.
All statements, reports or returns of taxpayers and all audits of their records and files made as authorized by this part are confidential. Additionally, it is unlawful for anyone to make known in any manner any information contained in the statements, reports or returns except as follows:
(A) To the taxpayer personally;
(B) To an attorney or other agent duly authorized by the taxpayer;
(C) To employees of the department or of the other tax collectors for the purpose of checking, comparing and correcting returns;
(D) To any collection, regulatory or inspection agency of this state, the United States, or another state; or
(E) In accordance with proper judicial order or as otherwise required by law.
Other Taxes Imposed on Various Business Activities
- Hotel/Motel Taxes
(Monthly, 5% of Gross, added to room invoice- Paid by occupant). - Transient Vendor Permits
($55.00/14 Days). - Amusement Tax
(Monthly, 5% of Gross) - Amusement Ride/ Attraction Permit
($25.00 per ride/ attraction) - Solicitor’s Permit (Door-to-Door Sales)
($50.00/month). - Mobile Home Installation Decals
($45.00 each) - Going Out of Business Permits
($50.00/90 days).
Contact the Knox County Clerk’s Business Tax Office for further details.
The Business Tax Roll in Knox County is divided into 6 service areas, with a representative of the Knox County Clerk’s Business Tax Division, to better serve the business community. To identify the representative assigned to your account, find the zip code for your business location in the table below and the corresponding name and contact information:
|
37902 37909, 37916, 37920, 37929, 37931 |
|
37754, 37779, 37912, 37918, 37938 |
|
37764 37806, 37901, 37914, 37915, 37917, 37924 |
|
37721, 37871, 37919 |
|
37849 37922, 37934 |
|
37830, 37921, 37923, 37930, 37932, 37933 |
