67-4-709 - Tax rates.
67-4-709. Tax rates.
For the exercise of the privileges described or enumerated in § 67-4-708, persons shall pay a tax, according to the dominant business activity of the persons as follows:
(1) CLASSIFICATION 1 as described in § 67-4-708(1):
(A) One tenth of one percent (1/10 of 1%) of all sales by a retailer classified under § 67-4-708(1)(A), (1)(B) or (1)(C);
(B) One fortieth of one percent (1/40 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(A);
(C) Three eightieths of one percent (3/80 of 1%) of all sales by a wholesaler classified under § 67-4-708(1)(B) or (1)(C); and
(D) One twentieth of one percent (1/20 of 1%) of all sales by a retailer classified under § 67-4-708(1)(D);
(2) CLASSIFICATION 2 as described in § 67-4-708(2):
(A) Three twentieths of one percent (3/20 of 1%) of all sales by a retailer; and
(B) Three eightieths of one percent (3/80 of 1%) of all sales by a wholesaler;
(3) CLASSIFICATION 3 as described in § 67-4-708(3):
(A) Three sixteenths of one percent (3/16 of 1%) of all sales by a retailer; and
(B) Three eightieths of one percent (3/80 of 1%) of all sales by a wholesaler;
(4) CLASSIFICATION 4 as described in § 67-4-708(4):
(A) One tenth of one percent (1/10 of 1%) of the compensation entitled to under the contract, whether in the form of a contract price, commission, fee or wage, by the persons enumerated in § 67-4-708(4)(A);
(i) Persons who, during any taxable period, receive more than fifty thousand dollars ($50,000) of compensation from contracts in a county or incorporated municipality, or both, other than the county or incorporated municipality where domiciled or located, shall be deemed to have a location in the county or municipality, or both, where the work was performed and a business tax return shall be filed for that location for the period in question. Gross receipts reported on a deemed location return shall not be reported on the return of the business's permanent domicile;
(ii) In computing the measure of the tax, except as provided by this part, no deduction will be allowed on account of the cost of tangible property sold, the cost of materials used, labor cost, reimbursed cost, interest, discount, delivery cost, taxes, or no other expense whatsoever paid or accrued and without any deduction on account of losses; and
(B) One tenth of one percent (1/10 of 1%) of the gross commissions, margins, fees or other charges by the persons enumerated in § 67-4-708(4)(B); and
(5) CLASSIFICATION 5 as described in § 67-4-708(5):
(A) Three tenths of one percent (3/10 of 1%) of the gross income of the business; and
(B) Gross income of the business means all interest income, earned discounts, earned lease rentals, commission fees exclusive of insurance commissions, past due charges, contract earnings or charges, collection charges, loan service fees, late fee income and all other income, without any deduction except as provided by this part.
[Acts 1971, ch. 387, § 6; 1972, ch. 850, § 6; 1977, ch. 328, §§ 1, 2; 1978, ch. 714, § 4; 1978, ch. 781, § 1; 1979, ch. 325, § 1; 1981, ch. 308, § 1; 1983, ch. 394, § 3; 1983, ch. 415, § 1; T.C.A., § 67-5806; Acts 1984, ch. 832, § 27; 1986, ch. 699, §§ 2, 3; 1988, ch. 572, § 3; 1988, ch. 767, § 1; 1994, ch. 766, § 1; 1999, ch. 424, § 1; 2002, ch. 856, § 9a; 2003, ch. 418, § 3; 2004, ch. 924, § 9; 2009, ch. 530, § 75.]