Effective Immediately — Tennessee Internet access no longer taxable.

In Tennessee, ISP’s should no longer collect sales tax on sales of Internet access. If sales tax has been collected, refund requests may be submitted as long as (1) claims are filed within 3 years of December 31 of the year tax was collected; (2) proof of refund paid to the retail customer is submitted with claims; and (3) documentation of sales tax paid is provided if services were purchased on a resale certificate. Internet service providers should no longer use and telecommunication companies should no longer accept resale certificates for purchases services which provide Internet access. (Sales and Use Tax Notice 04-03, Tennessee Department of Revenue, January 30, 2004)

Posted on February 15, 2004