Local Adoption Of Business Tax

(1) Affirmative action must be taken by municipal governments in order to implement the business tax in their respective jurisdictions. The business tax may be levied only by passage of a resolution or ordinance by the appropriate governing body. (2) Upon adoption or amendment of the business tax by any municipal government, a certified copy of the resolution or ordinance adopting or amending the business tax must be furnished to the Department. (3) Municipal governments that adopt the business tax after December 31, 2013, must levy the tax at the rates provided in T.C.A. § 67-4-709. If the business tax was adopted by a municipal government prior to January 1, 2014, then it may continue to levy the tax at the same rate that was in effect as of January 1, 2014. Municipal governments may not reduce the tax rates, but they may repeal the business tax by ordinance. BUSINESS TAX RULES AND REGULATIONS CHAPTER 1320-04-05