SUT-112 - Hemp - Tennessee Tax Implications

In Tennessee, growers of agricultural products are exempt from the business tax and the sales tax on the sales of agricultural products that they grow. Hemp producers who sell the hemp they grow are therefore exempt from the business tax. They do not need to get a business license from the city or county. Also, hemp growers are exempt from the Tennessee sales and use tax on sales of hemp they grow.

Hemp producers, distributors, and retailers that operate in Tennessee under a corporate form including, but not limited to, corporations, S corporations, LLCs (including single-member LLCs owned by individuals), and LPs are subject to Tennessee's franchise and excise taxes.

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