Information regarding use tax on online purchases

Tennessee Public Chapter 624 was signed into law on March 23, 2012. This law requires certain companies meeting specific statutory requirements (e.g. Amazon, LLC) to notify their Tennessee customers regarding existing use tax requirements under Tennessee law. Amazon customers in Tennessee have started receiving such notices regarding their 2011 purchases.

Use tax is owed whenever items are purchased outside Tennessee and brought into the state by Tennessee residents. This tax, enacted in 1947, allows taxation of merchandise coming from out-of-state sources that do not collect the state's sales tax. Click here for more information about consumer use tax. Click here to view frequently asked questions about consumer use tax.

Please contact our office for assistance with any reporting needs or questions.

To comply with the requirements of IRS Circular 230, we must inform you that the information discussed above is not intended or written to be used, and cannot be used by the recipient or any other taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or any other applicable tax law, or to promote, market or recommend to another party any transaction, entity, investment plan, arrangement or other matter.