By Kala Hyder
The Tire Environmental Act goes into effect on October 1, 2015. This new act charges a fee that will be added to the sales receipt as a separate line for any new vehicle purchased. The fee will be remitted on the Tire Pre-Disposal Fee Return as a separate line and credited to the tire environmental fund. The fee is not taxable to businesses for sales or business tax purposes. The fee schedule is as follows:
- $5.00 for a motor vehicle with four or fewer wheels
- $10.00 for a motor vehicle with more than four but fewer than 11 wheels
- $15.00 for a motor vehicle with 11 or more wheels
Streamlined sales tax has been delayed until July 1, 2017.
The following is a list of new Tennessee sales and use tax legislation that went into effect July 1, 2015:
- Diabetic testing supplies including lancets, test strips for blood glucose monitors, visual read test strips, and urine test strips will be exempt from sales tax.
- Software sold as per use, per user, per license, or subscription that is remotely accessed by a customer from a location in Tennessee will now be subject to sales tax.
- Digital video game products sold as per use, per user, per license, or subscription will now be subject to sales tax.
- If an out-of-state retailer enters into and agreement or contract with a business located in Tennessee to refer potential customers to the out-of-state retailer’s website, the out-of-state retailer must charge Tennessee sales tax if the gross receipts derived from the referrals exceeds $10,000 in Tennessee during the preceding 12 months.
- The minimum markup for cigarettes will increase from eight percent to eleven percent.
If you would like to read more about these and other changes, please visit this link.