Taxes that are imposed on a consumer and separately stated on the invoice are not included in the sales price for purposes of computing the sales tax.
For example, the city of Sevierville imposes two separate special local privilege taxes: a two percent tax on the purchase of food at restaurants and a two percent tax on the purchase of admissions into amusements, such as theaters, shows, dance halls, and exhibitions. Both taxes are levied on the purchaser or consumer, and the taxes are required to be separately stated on the invoice.
Because the two Sevierville local privilege taxes are imposed on the consumer and are separately stated on invoices, they are not included in the sales price for purposes of calculating the sales tax.
Reference: Important Notice 15-04. Tenn. Code Ann. §§ 67-4-504 and 67-6-102 (79)(B)(iii). Sevierville Code 5-901 et seq. and 5-1001 et seq.