Pet grooming, boarding, and bathing services are subject to business tax. Charges for boarding, bathing, and grooming animals are only exempt from business tax when provided by a veterinarian in connection with a nontaxable veterinary service.
For example, if a veterinarian provides boarding services to a pet to monitor the pet following a surgery, the charges for boarding services would be exempt from business tax. However, if a veterinarian provides boarding services that are not in connection with a nontaxable veterinarian service, then the charges for these boarding services would be taxable.
Reference: Tenn. Code Ann. § 67-4-708.