BUS-21 - Business Tax is Filed on a Consolidated Basis

Business tax is filed on a consolidated basis, meaning that only one annual tax return is filed for each business. The business tax return is consolidated for all locations, whether in the same jurisdiction or not. However, each location's gross receipts must be accounted for separately on the consolidated return, and a separate license must be obtained for each location.

Every business located in Tennessee that is required to hold a standard business license must pay taxes on gross income received at that location. A business that is located within the limits of a Tennessee city that has a business tax must make two business tax payments for that location - one for the city and one for the state.

A business located outside Tennessee that has no business location in the state, but derives gross income based on taxable activities in Tennessee will file only a state business tax return each year.

Out-of-state contractors whose compensation exceeds $100,000 in a jurisdiction (city or county) must obtain a business license from the local business tax official(s) and file business tax with the Department of Revenue for each taxable jurisdiction on one consolidated return for all locations.

Reference: Tenn. Code Ann. ยง 67-4-715.

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