What are the tax consequences of a drop shipment? Please read more information about this issue by reading these publications on our website: Important Notice dated December 1998, Letter Ruling #00-45, and Letter Ruling #96-37 December 11, 2017 15:45 Related articles I am an out-of-state business with no business locations in Tennessee. Do I owe business tax? Are organizations exempt from the sales tax liable for tax on sales? Are computer software maintenance contracts subject to sales and use tax?