Tennessee Small Businesses No Longer Have to File Business Tax

NASHVILLE – It’s almost time to file your 2023 business tax return. Thanks to recent legislation, beginning this year over 100,000 small businesses will no longer be required to file a return and pay this tax.The Tennessee Works Tax Act eliminated the annual business tax filing obligation for businesses with annual gross sales under $100,000 within a county and/or city. This change applies to tax periods ending on or after December 31, 2023. To help raise awareness of this change, the Department of Revenue recently sent letters with instructions to business owners who may be affected asking them to confirm locations that are no longer subject to business tax.Businesses not liable for tax are still required to keep their business licenses up to date. For jurisdiction(s) where a business’ total gross sales are between $3,000 and $100,000, they must obtain a minimal activity license directly from the local county or city jurisdiction. More information is available on the Department of Revenue’s website here.“We’re happy to be able to provide this tax relief to businesses,” Revenue Commissioner David Gerregano said. “We want to make sure business owners are aware of this change and know that they need to contact us so...