Whether a taxpayer is a wholesaler or a retailer for business tax purposes is determined each year based on whether the taxpayer is primarily engaged in making retail sales or wholesale sales. If more than 50 percent of the taxpayer's sales for the tax year consist of wholesale sales, the taxpayer is classified as a wholesaler. If 50 percent or more of the taxpayer's sales for the tax year consist of retail sales, the taxpayer is classified as a retailer.
Reference: Tenn. Code Ann. §§ 67-4-702(a)(16)-(17) and 67-4-702(a)(26)-(27).