Taxes

There are many different types of local and state taxes to keep in mind when you open your business.  You will find below a summary of the local taxes and where to go to find out more about the different state taxes. 

Local Taxes
The City of Bristol Tennessee Finance Department is responsible for the collection of all revenue of the city including city property taxes, business taxes, and municipal fines.  This office also oversees the billing process for utility services, such as water, sewer, and solid waste. 

The Sullivan County Property Assessor's office is responsible for assessment of property and the Sullivan County Trustee's office is responsible for collection of county property taxes.

Municipal Property Tax
The 2013 rate is $2.25 per $100 of assessed value.  Commercial uses are assessed at a rate of 40%.  Tangible Business Property is assessed at a rate of 30%.  (Combined with the county rate of $2.3054, the total property tax rate is $4.5554.) 

County Property Tax
The 2013 rate is $2.3054 per $100 of assessed value.  Commercial uses are assessed at a rate of 40%.  Tangible Business Property is assessed at a rate of 30%.  (Combined with the city rate of $2.25, the total property tax rate is $4.5554.)  

Municipal Sales Tax
The rate of Municipal Sales Tax is 2.25% (the state sales tax rate is 7%, for a total of 9.25%). 

Municipal Hotel / Motel Tax
The Municipal Hotel / Motel Tax is 5% of the consideration charged by the operator. 

Temporary Campgrounds Tax
The Temporary Campgrounds Tax is 5% of the consideration charged by the operator. 

State Taxes
Below is a brief summary of a few of the taxes assessed by the State of Tennessee: 

Income Tax
The State of Tennessee has no general income tax.  However, if you live in Virginia and work in Tennessee, or if you live in Tennessee and work in Virginia, the income tax of the State of Virginia will apply.

Property Tax
There is no State Property Tax in Tennessee.

Tangible Property Tax
There is no State Tangible Property Tax in Tennessee.

Sales & Use Tax
The State sales tax rate is 7%, except it is 5% for food items, in addition to the local sales tax rate (the City of Bristol sales tax rate is 2.25% for a total of 9.25%, 7.25% on food).

Franchise & Excise Tax
Excise Tax is 6.5% of net earnings and the Franchise Tax is $0.25 per $100 of capital. 

Unemployment Tax (Premiums)
For new employers, the rate of unemployment tax 2.7% of first $7,000 paid per employee during a calendar year.

Gross Receipts Tax
The Gross Receipts Tax in Tennessee is 1.5% to 3% depending on type of business. 

More Information
For detailed information about each tax and forms, please visit the State of Tennessee Department of Revenue. There are 4 "Tax Guides" with detailed information are available on this website:
  • Alcoholic Beverage and Beer Tax Guide
  • Business Tax Guide
  • Franchise and Excise Tax Guide
  • Sales and Use Tax Guide