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Who needs a Rutherford County Business License?

Who is exempt from a Rutherford County Business License?

How can I obtain a Rutherford County Business License?

How do I obtain and complete a Rutherford County Business License/Tax Report Form?

What is the Tangible Personal Property Tax, and how does it affect my business?

How do I obtain a State Sales Tax Number?

When is a Federal I.D. Number needed?

What is a Transient Vendor Permit and can I obtain an application?

What is required upon termination of a Rutherford County Business License?

Frequently asked questions

WHO NEEDS A RUTHERFORD COUNTY BUSINESS LICENSE?

bulletA business located in Rutherford County, Tennessee with a total gross income of over $3,000.00 in a twelve-month period is required to obtain a Rutherford County Business License.
bulletA business may operate no more than twenty (20) days before obtaining a Rutherford County Business License.
bulletA Rutherford County Business License is required whether gross income consists of wholesale and/or retail sales or services.

WHO IS EXEMPT FROM A RUTHERFORD COUNTY BUSINESS LICENSE?

bulletState Law requires that all businesses have a business license issued by local government, except:
bulletProfessions that pay the Professional Privilege Tax - accountants, security agent/broker/dealer/investment advisor, attorney, audiologist, chiropractor, dentist, engineer, landscape architect, lobbyist, optometrist, pharmacist, physician, psychologist, real estate broker, speech pathologist, veterinarian.
bulletManufacturers - The ruling is complex; but if a manufacturer sells at retail, a business license is required.
bulletDisabled-Certain blind persons and certain disabled veterans.
bulletOther-Newspaper route carriers, farmers selling directly; and businesses with annual gross sales under $3,000.00.
bulletFor a complete list of exemptions, please see Tennessee Code Annotated 67-4-712 at Michie.com

HOW CAN I OBTAIN A RUTHERFORD COUNTY BUSINESS LICENSE?

bulletComplete an application form from the Business Tax Department in the Office of the Rutherford County Clerk or print an application from this website. Once completed, the form provides the information necessary to create a record of your business; classify the business; and issue a license. The Business Tax Department charges $20.00 for the initial, minimal business license, and classifies your business into one of the following categories:
bulletCLASS ONE - TAX PERIOD:  JANUARY 1 THROUGH DECEMBER 31
bulletGasoline service stations; grocery stores; food wholesalers; hardware stores; building materials; feed stores; food brokers; beer package stores; beer wholesalers; wholesale gasoline and diesel fuel.  
bulletCLASS TWO - TAX PERIOD:  APRIL 1 THROUGH MARCH 31
bulletAdvertising specialties; automobile, motorcycle dealers; boat dealers, camper dealers; department stores; florist and plant stores; home furnishings; appliances and electronic; restaurants; liquor stores and liquor wholesales.
bulletCLASS THREE - TAX PERIOD:  JULY 1 THROUGH JUNE 30
bulletAntique dealers; delicatessens; jewelry stores; card shops and book stores; pawn shops; beauty shops, barber shops and schools; architectural and artist supply sales; hearing aids; razors; luggage; optical and ophthalmologic supplies, typewriters; sporting goods; sales of services or engaging in the business of furnishing or rendering services.  
bulletCLASS FOUR - TAX PERIOD:  OCTOBER 1 THROUGH SEPTEMBER 30
bulletGeneral contractors; subcontractors; and selling livestock, poultry or other farm products not exempted by Tennessee Code Annotated 67-4-712. 
bulletOTHER BUSINESSES NOT LISTED
bulletPlease contact the Business Tax Department in the office of the Rutherford County Clerk at (615) 898-7800 if type of business is not listed to verify classification of business.
bullet RUTHERFORD COUNTY BUSINESS LICENSE APPLICATION (PDF format, click here for further instruction)
bulletUpon receipt of the Rutherford County Business License, it shall be the duty of the owner to exhibit the said license.
bulletIt is the duty of every business owner to keep and preserve records showing the gross amount of sales tax owed to the State of Tennessee, and the amount of gross receipts taxable under the Business Tax Act, and other books of account as may be necessary to determine the amount of business tax to be collected.  All such books and records shall be open to inspection at all reasonable hours to the County Clerk or other proper tax collecting official or any person duly authorized by the State or County Clerk.  All such books and records shall be maintained by the taxpayer for a period of three (3) years.
bulletContact the Business Tax Department in the Office of the Rutherford County Clerk at (615) 898-7800.

HOW CAN I OBTAIN AND COMPLETE A RUTHERFORD COUNTY BUSINESS LICENSE/TAX REPORT FORM?

bulletOnce you have obtained a business license, you will automatically receive a renewal form at the end of the fiscal year for your specific business classification. The renewal form is also the form used to assess your gross receipts for business taxes. If you do not have any gross receipts, the charge to renew is still only $22.00.
bulletIt is the duty of every business owner to keep and preserve records showing the gross amount of sales tax owed to the State of Tennessee, and the amount of gross receipts taxable under the Business Tax Act, and other books of account as may be necessary to determine the amount of business tax to be collected.  All such books and records shall be open to inspection at all reasonable hours to the County Clerk or other proper tax collecting official or any person duly authorized by the State or County Clerk. All such books and records shall be maintained by the taxpayer for a period of three (3) years.
bullet BUSINESS LICENSE/TAX REPORT FORM (PDF format, click here for further instruction)
bulletUpon receipt of the Rutherford County Business License, it shall be the duty of the owner to exhibit the said license.
bulletContact the Business Tax Department in the Office of the Rutherford County Clerk at (615) 898-7800.

WHAT IS THE TANGIBLE PERSONAL PROPERTY TAX, AND HOW DOES IT AFFECT MY BUSINESS?

bulletAll personal property used in your business such as furniture, fixtures, machinery, equipment, raw materials and supplies are subject to Tangible Personal Property Tax. You may deduct the Tangible Personal Property Tax from the amount of business tax owed only if the Tangible Personal Property Tax was paid within your Class Period. Contact the Office of the Rutherford County Trustee at (615) 898-7705 to obtain the amount of tax paid; date tax paid and the receipt number and record this information in the appropriate space on the Business Tax Return.  

HOW DO I OBTAIN A STATE SALES TAX NUMBER?

bulletFor a State Sales Tax number call the Tennessee Sales Tax Division at (615) 253-0600.

WHEN IS A FEDERAL I.D. NUMBER NEEDED?

bulletYour business is only required to obtain a Federal I.D. number if you employ others. Please contact 1-800-829-1040.

WHAT IS A TRANSIENT VENDOR PERMIT AND HOW CAN I OBTAIN AN APPLICATION?

bullet"Transient Vendor" means any person who brings into temporary premises and exhibits stocks of merchandise to the public for the purpose of selling or offering to sell the merchandise to the public.
bullet"Transient Vendor" does not include any person selling goods by sample, brochure, or sales catalog for future delivery; or to sales resulting from the prior invitation to the seller by the owner or occupant of a residence.
bulletFor purposes of this definition, "merchandise" means any consumer item that is or is represented to be new or not previously owned by a consumer, and "temporary premises" means any public or quasi-public place including a hotel, rooming house, storeroom, building or part of a building, tent, vacant lot, railroad car, or motor vehicle which is temporarily occupied for the purpose of exhibiting stocks of merchandise to the public.
bulletPremises are not temporary if the same person has conducted business at those premises for more than six (6) consecutive months or has occupied the premises as his or her permanent resident for more than six (6) consecutive months.
bulletTRANSIENT VENDOR PERMIT IS VALID FOR ONLY FOURTEEN (14) DAYS.
bullet TRANSIENT VENDOR APPLICATION (PDF format, click here for further instruction)
bulletContact the Business Tax Department in the Office of the Rutherford County Clerk at (615) 898-7800.

WHAT IS REQUIRED UPON TERMINATION OF A RUTHERFORD COUNTY BUSINESS LICENSE?

bulletTennessee Code Annotated 67-4-721 states the following with regard to termination of a business:
bulletIf any person liable for any tax, penalty or interest levied hereunder shall sell out the person's business or stock of goods, or shall quit the business, the person shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business.
bulletThe person's successor, successors, or assigns, if any, shall withhold sufficient of the purchase money to cover the amount of such taxes, interest and penalties due and unpaid until such former owner shall produce a receipt from the County Clerk in the case of counties, and proper city collector in the case of cities, showing that they have been paid, or a certificate stating that no taxes, interest or penalties are due.
bulletIf the purchaser of a business or stock of goods shall fail to withhold the purchase money as above provided, the purchaser shall be personally liable for the payment of the taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners, or assigns.
bulletNothing in this section shall apply to any licensee transferring a business from one location to another, within the same municipality, on a one-time basis during any annual taxable period.
bulletIn this event a licensee shall notify the local tax collector at least five (5) days prior to the last day of business at the old location, submitting information and payment of a five dollar ($5.00) recording fee for the new location.
bulletSucceeding transfers by the same licensee, within the same annual taxable period, shall be subject to a final return and payment within fifteen (15) days, plus a new minimum business license and recording fee for the new location.

FREQUENTLY ASKED QUESTIONS

Q. Is Sales Tax included in gross income? 
A. No.

Q. Is Business Tax due on Commissions?
A. Yes.

Q. Is a City Business License required if a business is located within the city limits of LaVergne, Murfreesboro or   Smyrna?
A. Yes. Contact the appropriate City Hall as listed.

bulletLaVergne City Hall
5093 Murfreesboro Road
LaVergne, TN 37086
(615) 793-3388
bulletMurfreesboro City Hall
111 West Vine Street
Murfreesboro, TN 37130
(615) 893-5210
bulletSmyrna City Hall
315 South Lowry Street
Smyrna, TN 37167
(615) 459-2553

Q. Is a Rutherford County Business License required if a truck driver is regulated through the ICC?
A. No.

Q. Is a Rutherford County Business License required for Manufacturers and Non-Profit Organizations?
A. No.

Q. Can a business deduct the Rutherford County Tangible Personal Property Tax paid from the Rutherford County Business Tax due?
A. Yes, if the Rutherford County Tangible Personal Property Tax is paid within the Class Period. Please contact the Office of the Rutherford County Trustee at (615) 898-7705 to obtain the amount of tax paid, date tax paid and receipt number.

Q. Can sub-contractors be deducted from Rutherford County Business Tax due?
A. Yes, only if the name, address, occupation and amount paid to sub-contractor is listed and attached to Business Tax Form.

Q. Is a Daycare required to obtain a Rutherford County Business License?
A. Yes, after a permit is obtain from the Rutherford County Health Department if keeping over four (4) children.

bulletRutherford County Health Department
303 North Church Street
Murfreesboro, TN 37130
(615) 898-7785

Q. When can I pay a wholesale business tax rate?
A. When at least 20% of gross income is wholesale.

Q. Is a sub-contractor required to obtain a Rutherford County Business License if not on a Contractors' regular payroll?
A. Yes.

Q. Where can a Contractor's License be obtained?
A. Contact the State of Tennessee at (615) 741-8307.

Q. How is a Corporation formed?
A. Contact the State of Tennessee at (615) 741-2286.

Q. If I pay rent on a booth for hair cutting &/or manicures do I need a Rutherford County Business License?
A. Yes.

Q. Are Sales Representatives for Avon, Mary Kay Cosmetics, Tupperware and etc. required to obtain a Rutherford County Business License?
A. Yes, if gross sales are more than $3,000.00 in a twelve-month period.

Q. Where can I obtain a Tennessee Sales Tax Number Form?
A. The Office of the Rutherford County Clerk or you may call the State Sales Tax Division at (615) 253-0600.

Q. Where can I obtain a Federal Identification Number?
A. Please call 1-800-829-1040.