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Tennessee Central Business Improvement Districts


 Professional services are exempt from the new Tennessee Community Improvement District Fee, effective January 1, 2014.

Tennessee law Public Chapter 347, which takes effect January 1, 2014, grants Tennessee metropolitan governments with an established “tourism development zone” the right to pass a law requiring retailers located in central business improvement districts of tourism zones to “charge a fee of no more than … 0.25% on the sales price of services and tangible personal property sold.”

Metropolitan Government of Davidson County

Under this authority, the Metropolitan Government of Davidson County has “approved a 0.25% fee on the price of services, food, beer and other goods that are subject to sales tax sold within the downtown central business improvement district.”

Exemptions

The following items are exempt from the fee:

  • “Professional services;
  • Lodging provided to transients;
  • Tickets to sporting events or other live ticketed events;
  • Alcoholic beverages which are subject to the liquor-by-the-drink tax and sales tax;
  • Newspapers and other publications; and
  • Long-term parking.”

Additional information is available at the Tennessee Department of Revenue, on Notice #13-11.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.