Amends TCA Title 67; Chapter 72 of the Public Acts of 2011; Chapter 157 of the Public Acts of 2019; Chapter 193 of the Public Acts of 2017; Chapter 273 of the Public Acts of 2015; Chapter 480 of the Public Acts of 2013; Chapter 530 of the Public Acts of 2009 and Chapter 602 of the Public Acts of 2007.
This bill deletes streamlined sales tax provisions that were first enacted by Chapter 602 of the Public Acts of 2007, the implementation of which have been delayed with subsequent legislation. Those delayed provisions, which will be removed by this bill, include: changes to the single article limitation on local option sales taxes; use of a single sales and use tax return covering multiple dealer locations instead of a consolidated filing; implementation of certain privilege taxes in lieu of sales tax; and changes allowing an out-of-state dealer to use its foreign resale certificate for purchases resold and drop shipped to a Tennessee consumer. This bill also revises other sales and use tax provisions, as follows: (1) Under present law, sales and use tax is imposed on the sales price of the property or services being sold. Present law defines "sales price" in various ways, including defining it as "the value of exempt personal property given to the purchaser where taxable and exempt personal property have been bundled together and sold by the seller as a single product or piece of merchandise." This bill revises this particular definition of "sales price" to refer to such property that has been "sold by the seller as a single product or piece of merchandise as part of a bundled transaction" instead of property that has been "bundled together and sold by the seller as a single product or piece of merchandise." This bill defines "bundled transaction" as the retail sale of two or more products, except real property and services to real property, that are otherwise distinct and identifiable products and that are sold for one nonitemized price. (2) Under present law governing the sourcing of sales for purposes of determining the applicability of sales tax to such sales, the sale of post-paid calling services is sourced to each level of taxing jurisdiction as follows: the seller's telecommunications system; or information received by the seller from its service provider, where the system used to transport such signals is not that of the seller. Under present law, a post-paid calling service includes a telecommunications service that would be a prepaid calling service except it is not exclusively a telecommunication service. This bill provides that "post-paid calling services" does not include, and, accordingly, the sourcing provisions applicable to such services do not apply to, prepaid wireless calling services. ON MARCH 25, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 85, AS AMENDED. AMENDMENT #1 removes all of the bill's provisions except the provision deleting the streamlined sales tax provisions.
This bill deletes streamlined sales tax provisions that were first enacted by Chapter 602 of the Public Acts of 2007, the implementation of which have been delayed with subsequent legislation. Those delayed provisions, which will be removed by this bill, include: changes to the single article limitation on local option sales taxes; use of a single sales and use tax return covering multiple dealer locations instead of a consolidated filing; implementation of certain privilege taxes in lieu of sales tax; and changes allowing an out-of-state dealer to use its foreign resale certificate for purchases resold and drop shipped to a Tennessee consumer. This bill also revises other sales and use tax provisions, as follows: (1) Under present law, sales and use tax is imposed on the sales price of the property or services being sold. Present law defines "sales price" in various ways, including defining it as "the value of exempt personal property given to the purchaser where taxable and exempt personal property have been bundled together and sold by the seller as a single product or piece of merchandise." This bill revises this particular definition of "sales price" to refer to such property that has been "sold by the seller as a single product or piece of merchandise as part of a bundled transaction" instead of property that has been "bundled together and sold by the seller as a single product or piece of merchandise." This bill defines "bundled transaction" as the retail sale of two or more products, except real property and services to real property, that are otherwise distinct and identifiable products and that are sold for one nonitemized price. (2) Under present law governing the sourcing of sales for purposes of determining the applicability of sales tax to such sales, the sale of post-paid calling services is sourced to each level of taxing jurisdiction as follows: the seller's telecommunications system; or information received by the seller from its service provider, where the system used to transport such signals is not that of the seller. Under present law, a post-paid calling service includes a telecommunications service that would be a prepaid calling service except it is not exclusively a telecommunication service. This bill provides that "post-paid calling services" does not include, and, accordingly, the sourcing provisions applicable to such services do not apply to, prepaid wireless calling services. ON MARCH 25, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 85, AS AMENDED. AMENDMENT #1 removes all of the bill's provisions except the provision deleting the streamlined sales tax provisions.
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