Bass, Berry & Sims attorney Mike Sontag and Steve Jasper discussed two fundamental questions related to the business tax in Tennessee. More than a decade after the Department of Revenue took over administration of the business tax, there are still basic questions that must be resolved about how to calculate the tax. In the article, the authors examine two of those issues and suggest answers to the two following questions will be coming in 2022:
- What does a taxpayer need to do to use the wholesaler rate?
- When does the wholesaler-to-wholesaler exemption apply?
As the authors note, these are “core questions that are essential to knowing how a business should calculate and report its business tax liability, but the answers to these questions are still, somehow, open for debate in Tennessee. Thankfully, these two foundational issues are expected to be resolved in 2022, one through the judicial process and one legislatively.”
The full article, “Looking for Clarity on Business Tax Basics in 2022,” was published by Tax Notes State on December 20 and is available online (subscription required) or in the PDF here.