Middle Tennessee - Recent Tennessee legislation has lightened the tax load for over 100,000 small businesses. The Tennessee Works Tax Act exempts businesses with annual gross sales under $100,000 from filing business tax returns, effective this year. This change, applicable to tax periods ending after December 31, 2023, streamlines tax obligations for small businesses statewide.
To ensure affected businesses are aware of the change, the Department of Revenue has sent instructions via letters, prompting them to confirm locations no longer subject to business tax. While exempt businesses are spared from tax filings, they must maintain current business licenses. Businesses with sales ranging from $3,000 to $100,000 in a jurisdiction must obtain a minimal activity license directly from the local county or city jurisdiction.
For further guidance on compliance, visit the Department of Revenue’s website. Responsible for administering state tax laws and collecting associated taxes and fees, the department collected $20.9 billion in state taxes and fees and over $4.3 billion for local governments during the 2022 fiscal year.
Businesses no longer subject to business tax should update their accounts by contacting the Department of Revenue at 615-253-0600 or revenue.support@tn.gov.
This legislative move aims to alleviate the tax burden on small businesses, fostering an environment conducive to economic growth and entrepreneurship statewide. For more information you can visit https://www.tn.gov/revenue.
