Tennessee Delays Start Date for Streamlined Sales Tax Compliance

Tennessee has enacted legislation delaying the start date of the sales and use tax provisions that bring Tennessee sales and use tax law into compliance with the Streamlined Sales and Use Tax Agreement. The provisions are now set to take effect July 1, 2019 (previously July 1, 2017). Tennessee continues its history of delaying the date for full implementation of Streamlined. It is the only associate member state under the agreement. The sales and use tax 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;
• acceptance of alternative documentation to support a resale exemption for drop shipments into the state
• use of a single sales and use tax return covering multiple dealer locations; and
• implementation of certain privilege taxes in lieu of sales tax.

(Tenn. Code Ann. §67-6-702; Important Notice No. 17-06, Tennessee Department of Revenue, April 2017)