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2020 Tennessee Code
Title 67 - Taxes and Licenses
Chapter 6 - Sales and Use Taxes
Part 5 - Collection and Enforcement Generally
§ 67-6-501. Tax Collected From Dealer — Property Management Company Tax on Vacation Lodging — Mobile Telecommunications Service Tax — Liability of Marketplace Facilitator
Universal Citation: TN Code § 67-6-501 (2020)
- Except as otherwise provided in § 67-6-524(b), every dealer making sales, whether within or outside the state, of tangible personal property, for distribution, storage, use, or other consumption in this state, or furnishing any of the things or services taxable under this chapter, is liable for the tax imposed by this chapter.
- The tax shall be collected from the dealer as defined in § 67-6-102 and paid at the time and in the manner as provided for in this part.
- The tax imposed in this part shall be at the rate provided by law of the retail sales price, as of the moment of sale, or of the purchase price, as of the moment of purchase, as the case may be, shall be collectible from all persons, as defined in § 67-6-102, engaged as dealers, as defined in § 67-6-102, in the sale at retail, the use, the consumption, the distribution, and the storage for use or consumption in this state, of tangible personal property, or in the furnishing of any of the things or services taxable under this chapter.
- When an individual property owner utilizes a property management company to manage a vacation lodging owned by the individual property owner, the tax levied by this chapter on the sales price of such rental shall be imposed on, and shall be remitted by, the property management company to the commissioner. This provision shall not be construed to prohibit the property management company from collecting the tax from the consumer as provided for in § 67-6-502. For the purposes of this subsection (d), the terms “individual property owner,” “property management company,” and “vacation lodging” shall have the same meanings as in § 67-4-702.
- A home service provider's liability for sales taxes due on mobile telecommunications services shall be determined in accordance with the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116-126). The home service provider's responsibility for determining the place of primary use of the mobile telecommunications services shall be controlled by federal law.
- When a marketplace seller uses a marketplace facilitator to facilitate sales of tangible personal property or any of the things or services taxable under this chapter, the marketplace facilitator is liable for the taxes imposed by this chapter on the sales price of the tangible personal property or the things or services taxable under this chapter regardless of whether the marketplace seller has a sales tax certificate of registration or would have been required to collect sales or use taxes had the sale not been facilitated by the marketplace facilitator unless:
- The marketplace facilitator made or facilitated total sales to consumers in this state of one hundred thousand dollars ($100,000) or less during the previous twelve-month period;
- The marketplace facilitator demonstrates, to the satisfaction of the commissioner, that substantially all of the marketplace sellers for whom the marketplace facilitator facilitates sales are registered dealers under this section, in which case the commissioner is authorized to waive the requirements of this subsection (f). If a waiver is granted pursuant to this subdivision (f)(2), the taxes levied under this chapter shall be collectible from the marketplace sellers; or
- The marketplace facilitator and the marketplace seller contractually agree that the marketplace seller will collect and remit all applicable taxes under this chapter and the marketplace seller:
- Has annual gross sales in the United States of over one billion dollars ($1,000,000,000), including the gross sales of any related entities, and in the case of franchised entities, including the combined sales of all franchisees of a single franchisor;
- Provides evidence to the marketplace facilitator that it is registered in this state under § 67-6-601; and
- Notifies the commissioner in a manner prescribed by the commissioner that the marketplace seller will collect and remit all applicable taxes under this chapter on its sales through the marketplace facilitator and is liable for failure to collect or remit applicable taxes on its sales.
- A marketplace seller shall not be obligated to collect and remit or be liable for the taxes levied or imposed by this chapter on any retail sale for which a marketplace facilitator has collected and remitted such tax.
- When a marketplace seller uses a marketplace facilitator to facilitate sales of tangible personal property or the things or services taxable under this chapter, the marketplace facilitator is not liable for the fee imposed under § 7-88-117, regardless of whether the marketplace seller is located within the district.
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