I am an out-of-state dealer with no physical presence in Tennessee. If my sales exceed the $500,000 threshold set out in Sales and Use Tax Rule 1320-05-01-.129(2) during August or September of 2019, do I have to begin collecting tax on October 1, 2019?

No.  If an out-of-state dealer has no physical presence in Tennessee and meets the $500,000 threshold after July 31, 2019, it is required to register and begin collecting sales and use tax on the first day of the third month following the month in which it meets the threshold. Therefore, if you exceed the threshold in August or September, you are required to begin collecting tax in November or December, respectively.

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