Taxes for City of Bristol, Sullivan County and State of Tennessee

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 – City of Bristol, Tennessee and Sullivan County

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 is 2.25% (the state sales tax rate is 7%, for a total of 9.25%). 
  • Municipal Hotel/Motel Tax – Five percent (5%) of the consideration charged by the operator. 
  • Temporary Campgrounds Tax – Five percent (5%) of the consideration charged by the operator. 

State Taxes – State of Tennessee

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 – No State Property Tax
  • Tangible Property Tax – No State Tangible Property Tax
  • Sales and Use Tax – The State sales tax rate is 7%, except it is 5.5% 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%, 7.75% on food).
  • Franchise and Excise Tax – Excise Tax is 6.5% of net earnings.  Franchise Tax is $0.25 per $100 of capital. 
  • Unemployment Tax (Premiums) - For new employers, the rate is 2.7% of first $7,000 paid per employee during a calendar year.
  • Gross Receipts Tax – 1.5% to 3% depending on type of business. 

For detailed information about each tax and forms, please go to the State of Tennessee Department of Revenue's site at http://www.tennessee.gov/revenue/business/instructions.htm.  

Four "Tax Guides" with detailed information are also available on the State of Tennessee Department of Revenue's web site at http://state.tn.us/revenue/taxguides/

  • Sales and Use Tax Guide
  • Franchise and Excise Tax Guide
  • Alcoholic Beverage and Beer Tax Guide
  • Business Tax Guide