How do I pay Tennessee professional privilege tax?
All professional privilege tax returns must be filed and paid electronically using the Tennessee Taxpayer Access Point (TNTAP). We no longer process paper returns for professional privilege tax. Returns and payments must be made through TNTAP, unless you have a hardship exception.
The Professional Privilege Tax is due on June 1 of each year. The Tennessee Securities Division “shall not process and shall hold in abeyance the application for renewal of the license or registration of any taxpayer” who fails to pay this tax.
Overview. Professional privilege tax is due June 1 each year for individuals licensed or registered to practice in Tennessee any one of the professions listed in Tenn. Code Ann. §67-4-1702.
The $400 professional privilege tax is an annual tax imposed on certain professionals who hold an active license or registration on the June 1 due date, regardless of whether the person practices his or her profession in Tennessee.
Present law levies a tax in the amount of $400 per year on the privilege of engaging in the profession of lobbyist, agent, broker-dealer, investment adviser, or attorney.
State law requires all professional privilege tax returns to be filed electronically. Taxable professionals holding an active license in Tennessee must pay the $400 tax, which is due June 1 each year.
Beginning June 1,2023, only the following professions are subject to professional privilege tax: lobbyists; agents, broker-dealers, and investment advisors registered under Title 48 of the Tennessee Code; and attorneys.
Some goods are exempt from sales tax under Tennessee law. Examples include some industrial machinery, agricultural equipment, fuel, and medical supplies.
| Type of Privilege Tax | Participating State(s) |
|---|---|
| Franchise tax | Alabama Arkansas California* Delaware Georgia Illinois Louisiana Mississippi New York North Carolina Oklahoma Tennessee Texas |
| Transaction privilege tax (TPT) | Arizona |
| State privilege tax (or professional privilege tax) | Tennessee |
Services such as grass cutting, trimming, bush trimming, leaf raking, and similar activities are all services performed on real property. Charges for such services are not subject to sales tax.
What qualifies as doing business in Tennessee?
Doing business in Tennessee" or "doing business within this state" means any activity purposefully engaged in, within Tennessee, by a person with the object of gain, benefit, or advantage, consistent with the intent of the general assembly to subject such persons to the Tennessee franchise, excise tax to the extent ...
Legal and professional services is a broad category that generally includes expenses for your lawyer, accountant and any other professional consultants you may hire.
The motor vehicle privilege tax levied under this act, when paid, together with full, complete, and explicit performance of and compliance with all provisions of this act by the owner, shall entitle the owner of the motor vehicle for which said tax was paid to operate the vehicle or allow the vehicle to be operated ...
These fees can be charged based on an hourly basis or a fixed amount. Firstly this amount is charged when you meet a lawyer for the first time to check whether a lawyer can assist in your case or not. These types of cases may vary depending on the situation.
How much does it cost to form an LLC in Tennessee? The Tennessee Secretary of State charges $50 per LLC member included in the filing, with a minimum total fee of $300. The filing fee cannot exceed $3,000 for the Articles of Organization. A convenience fee will also be charged when paying online by credit card.
The annual report fee for LLCs is $300 minimum up to a maximum of $3000. The fee increases by an additional $50 per member for every member over 6 members up to a maximum of $3,000. An officer is not listed. If the business is a Tennessee for-profit corporation, the corporation must list at least one officer.
Privilege taxes are usually based on the gross receipts or net worth of a business, but some are levied as a flat fee. States often use terms like franchise tax, business entity tax, or business and occupation tax to refer to their local privilege tax.
Restaurant Privilege Tax is 1% of total food sales making a total of 10.75% (9.75% Sales Tax and 1% Restaurant tax to the customer).
Under Tenn. Code Ann. § 67-6-212(a)(1) and Sales Tax Rule 116, dues or fees paid to health clubs or other facilities featuring exercise or other active physical fitness conditioning are subject to sales tax, unless a specific exemption applies.
Overview. Generally, if you conduct business within any county and/or incorporated municipality in Tennessee, and your business grosses $100,000 or more, then you should register for and remit business tax.
What is the Tennessee PE license tax?
The professional privilege tax is an occupation tax imposed on people with an active Tennessee license or registration to practice specific professions. The amount due is $400 annually.
Software is commonly licensed under agreements that include taxable and nontaxable services. License agreements constitute a lease of tangible personal property under Tennessee law and the payments made pursuant to the license agreements are subject to sales and use tax.
In 2005, Tennessee began collecting tax revenue from a so called “crack tax” on illegal substances that drug dealers can report without fear of prosecution and raked in over a million dollars. The Tennessee Court of Appeals ruled it unconstitutional in 2007.
Tennessee Tax Rates, Collections, and Burdens
Tennessee has a flat 6.50 percent corporate income tax rate and levies a gross receipts tax. Tennessee has a 7.00 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 9.55 percent.
Because Tennessee taxes do not include personal income, individuals are not subject to income tax on earnings.
