F&E-16 - Economic Nexus Standard

Out-of-state businesses not already subject to Tennessee taxes will be subject to franchise and excise and business taxes to the fullest extent allowed by the Constitution. Such nexus includes, but is not limited to, a bright-line test for presence in the state as follows:

  • Receipts:  greater than $ 500,000 or 25% of total receipts from sales in TN
  • Property: greater than $ 50,000 or 25% of total property by value in TN
  • Payroll:    greater than $ 50,000 or 25% of compensation paid in TN

Effective date: For tax years beginning on and after January 1, 2016

More information: Public Chapter 514, Revenue Modernization Act, 2015 Legislative Summary

Reference: Tenn. Code Ann. § 67-4-2004(49).

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