NASHVILLE, Tenn. — Get ready to file your 2023 business tax return! A new law in place is allowing more than 100,000 small businesses to no longer file a return and pay this tax. The Tennessee Works Tax Act eliminated the annual business tax filing obligation for businesses with annual gross sales under $100,000 within a county and/or city. This change applies to tax periods ending on or after December 31, 2023.
To make sure everyone knows about this change, the Department of Revenue recently sent letters with instructions to business owners who may be affected asking them to confirm locations that are no longer subject to business tax. Even if a business doesn't have to pay this tax, it still needs to keep its business licenses up to date. If a business's sales are between $3,000 and $100,000, the Tennessee Department of Revenue say the business will need to get a minimal activity license from their local county or city. You can find more info on the Tennessee Department of Revenue’s website.
“We’re happy to be able to provide this tax relief to businesses,” Tennessee Revenue Commissioner David Gerregano said. “We want to make sure business owners are aware of this change and know that they need to contact us so we can update their accounts.”
If your business is no longer paying business tax, call the department at 615-253-0600 or email revenue.support@tn.gov to update your account.
The Department of Revenue is in charge of state tax laws and vehicle title and registration laws. They collect most of the state's revenue. In the 2022 fiscal year, they collected $20.9 billion in state taxes and fees, and more than $4.3 billion for local governments. Visit here to learn more about them.
Last year, Governor Kay Ivey announced the implementation of a major tax reform initiative to help Alabama small businesses. Effective October 1, 2023, more than 3,000 Alabama small businesses will no longer be required to pay monthly estimated sales taxes to the Alabama Department of Revenue.
