Tennessee was scheduled to become a full member of the Streamlined Sales and Use Tax Agreement (SSUTA) on July 1, 2017. In April, however, Tennessee’s General Assembly enacted legislation further delaying implementation until July 1, 2019. Tennessee remains an Associate Member of the SSUTA.
Changes that have been delayed include:
- Requirements that sales delivered or shipped to the customer be sourced to the delivery or shipping destination;
- Changes to the single article limitation on local option sales taxes;
- Use of a single sales and use tax return covering multiple dealer locations; and
- Implementation of certain privilege taxes in lieu of sales tax.
Although these significant changes are yet to be made to bring Tennessee into full compliance with the SSUTA and for the state to achieve full member status, it appears substantial strides have been made to comply with the Agreement. In 2007, the Tennessee General Assembly enacted Public Chapter 602 making numerous changes to bring Tennessee into compliance. These changes, which became effective January 1, 2008, include:
- Most of the SSUTA uniform definitions;
- Provisions concerning the registration of farmers for sales tax exemption purposes;
- Provisions concerning the optional use of the Streamlined Centralized Registration System; and
- Provisions concerning the optional use of certified service providers (CSP) or certified automated systems (CAS) for sales tax collection and remittance.
For a detailed listing of Tennessee’s steps toward full compliance and work still to be accomplished, see the state’s 2016 Recertification Letter on the Streamlined Sales Tax Governing Board website here.
Tennessee’s 2016 Certificate of Compliance is also available here.