Out-of-state dealers engaged in the following activities are considered to have nexus in this state:
- Use of employees, agents, or independent contractors to solicit sales in Tennessee;
- Use of third parties in Tennessee to conduct substantial business activities in Tennessee;
- Maintaining inventory in Tennessee and using in-state independent contractors to fulfill Tennessee retail sales of that inventory;
- In-state promotional activity by company personnel, including participation in trade shows;
- Physical Tennessee business presence of a subsidiary that is acting as an agent of the out-of-state dealer or that is conducting activities in Tennessee on behalf of such a dealer (e.g., a retail store that takes returns of purchases made online from parent);
- Use of company-owned trucks or use of contract-carriers acting as an agent for the seller;
- Maintaining a store, office, warehouse, showroom, or other place of business in Tennessee;
- Leasing or renting tangible personal property in Tennessee;
- Repairing, installing, or assembling tangible personal property in Tennessee or the use of an agent or independent contractor to perform those services in Tennessee;
- Providing telecommunication services to subscribers located in Tennessee;
- Providing any taxable service in Tennessee; and
- Use of an in-state party to route customers to the out-of-state dealer (commonly known as “click-through nexus”).
Currently, out-of-state dealers with no physical presence in Tennessee who make $100,000 or more in sales to Tennessee customers must register and collect Tennessee sales and use tax. The $100,000 threshold includes all retail sales made by the out-of-state dealer, including exempt sales but does not include sales for resale. Out-of-state dealers with no physical presence in Tennessee who make $100,000 or more in sales to Tennessee customers are required to register and collect Tennessee sales and use tax.