Sellers in Classifications 1 (except for 1D and 1E), 2, and 3 are classified as either a wholesaler or a retailer based on the taxpayer's primary sales activity. All sales by a wholesaler are subject to tax at the wholesale tax rate for the wholesaler's designated classification. All sales by a retailer will be subject to tax at the retail tax rate for the retailer's designated classification.
Reference: Tenn. Code Ann. §§ 67-4-708 and 709.