Yes, out-of-state taxpayers that are registered to collect Tennessee sales and use tax are required to collect both the local and state sales tax from Tennessee purchasers. If you have in-state locations as well as out-of-state locations, you must collect the local tax at the local rate of the purchaser’s location on your sales from outside of Tennessee and at the local rate of your in-state locations on your sales from inside of Tennessee. If you only have out-of-state locations, you have the option to collect the local tax at the local rate of the purchaser’s location or at a fixed local rate of 2.25%.
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