May out-of-state leasing companies that previously elected to collect the local Tennessee sales tax at the uniform 2.25% rate from their Tennessee customers continue to do so for leases entered into before October 1, 2019?

No. The election to use a uniform local Tennessee sales tax rate will no longer be available beginning on October 1, 2019. Regardless of when a lease contract was signed, the vendor will collect local sales tax at the local jurisdiction’s rate starting on October 1. This includes leases that were entered into before October 1 where the vendor was collecting local sales tax using the uniform rate.

 The Department of Revenue maintains a list of local sales tax rates on its website here.

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