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Counties and municipalities are each permitted
to collect a tax on the privilege of conducting a business. In addition to State law, the
Commissioner of Revenue is authorized under certain conditions to establish rules and
regulations with regard to the procedures to be followed for the collection of this tax. Under
the Tennessee Business Tax Act most businesses, vocations, and occupations operating
within Hamilton County are required to obtain a business license and report their gross
receipts to the County Clerk on a yearly basis.
When a
business opens:
License must be
obtained from the County Clerk within 20
days after commencement of business. Applications are also available at the
County Clerk's office or via our
forms webpage.
Anyone purchasing an existing business
should be certain final returns have been
filed by the previous owner, or the new
owner can be held liable for any tax due.
When a business
closes:
1) A final
Business Tax Return must be filed with the
Department of
Revenue
within 15 days of closing.
2) The Hamilton
County Assessor’s Personal Property
department must be contacted at
423-209-7323 to close your account.
Failing to close your account will result
in future forced assessments.
3) The Hamilton
County Trustee’s office must be contacted
at 423-209-7270 to determine if any
personalty tax is owed.An applicant for a business license must remit $15 with completed application.
A tax year is not necessarily based on the calendar year. Tax rates vary from 1/8 of 1%
to 1/60 of 1% based on the classification established by State law.
EXEMPT BUSINESSES - Businesses that gross
less than $3,000 a year are exempt. Also the following businesses are
exempt regardless of their gross: manufacturers, doctors, dentists,
veterinarians, attorneys, accountants, schools, religious organizations,
insurance agents, loan companies, security exchanges, or public
utilities.
DEDUCTIONS ALLOWED FROM BUSINESS TAX:
Credit for minimum tax of $15. Also, credit for any “Personal Property
Tax” paid to Trustee's Office if paid during the period of time
covered by the business tax return.
Following the closing date of the tax period taxpayers have two months during which to
compute and pay the business tax before penalty and interest accrue.
After a business is licensed, a gross
receipts report must be filed annually and the appropriate tax paid. In
instances where the taxpayer submits more than the tax due, refunds of
less than $5.00 will not be issued unless specifically requested by the
taxpayer. Businesses failing to report their gross or to obtain a
license are subject to a distress warrant which may be issued directly
by the Clerk's office.
The issuance of a warrant results in more costs to the taxpayer, and is taken only as a
last resort.
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