{"id":376426,"date":"2016-03-31T21:36:48","date_gmt":"2016-04-01T02:36:48","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/tennessee-law\/tennessee-consumer-tax-laws.html"},"modified":"2016-06-20T23:00:00","modified_gmt":"2016-06-21T04:00:00","slug":"tennessee-consumer-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/tennessee-law\/tennessee-consumer-tax-laws.html","title":{"rendered":"Tennessee Consumer Tax Laws"},"content":{"rendered":"\n
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Tennessee Consumer Tax Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The taxes charged on consumer purchases are controlled by state consumer tax laws<\/a>. Normally, states will charge higher consumer taxes for goods or services that are either unhealthy or not considered essential, such as alcohol, tobacco, and gambling. While the majority of gasoline taxes go to fund highway construction and maintenance, the remainder of sales tax revenue goes into a state’s general fund. In Tennessee\u2019s case, a portion is allocated for commercial development districts.<\/p>\r\n

Consumer Tax Statutes in Tennessee<\/h2>\r\n

Consumer tax laws can vary from state to state. Tennessee\u2019s consumer tax laws are highlighted in the table below.<\/p>\r\n\r\n

Sales Tax<\/p>\r\n<\/td>\r\n

7% 67-6-202<\/p>\r\n<\/td>\r\n<\/tr>

Cigarette Tax<\/p>\r\n<\/td>\r\n

10 mills per cigarette plus 0.05\u00a2\/pack for dealers or distributors<\/p>\r\n<\/td>\r\n<\/tr>

Gasoline Tax per Gallon<\/p>\r\n<\/td>\r\n

20\u00a2 67-3-1301<\/p>\r\n<\/td>\r\n<\/tr>

Use Tax<\/p>\r\n<\/td>\r\n

7% 67-6-209<\/p>\r\n<\/td>\r\n<\/tr>

Liquor Tax<\/p>\r\n<\/td>\r\n

Beer $4.29 per barrel; Wine $1.21\/gal.; Spirits $4.40\/gal. \u00a7\u00a757-3-302; 57-5-201<\/p>\r\n<\/td>\r\n<\/tr>

Gambling Tax<\/p>\r\n<\/td>\r\n

NA<\/p>\r\n<\/td>\r\n<\/tr><\/tbody><\/table>\r\n

(Here the term "mills" means one one-thousandth of a dollar, so 10 mills = 10 one-thousandths of a dollar, or .01.)<\/p>\r\n

As consumers, we are purchasing more and more goods online, and them from anywhere in the world. And it\u2019s hard not to think you\u2019re getting those items free of Volunteer State sales tax. Tennessee law, however, requires you to pay a \u201cuse tax<\/a>\u201d for any goods or services delivered into or used in Tennessee if the out-of-state vendor hasn\u2019t already charged their own state sales tax. Like most states, Tennessee ties their use tax rate to the normal consumer sales tax rate at 7 percent. To make sure you\u2019re abiding by Tennessee\u2019s use tax, make sure you pay:<\/p>\r\n