Tennessee County Business Tax Return - Classification 4

County Business Tax Return - Classification 4
BUS428 - Business Tax Return
TENNESSEE DEPARTMENT OF REVENUE

RV-R00107 (12/23)

Business Tax Return

BUS
428

Filing Period

Due Date

Account Number

FEIN/SSN

Legal Name

Amended return

Remit amount on Line 7 to:
Tennessee Department of Revenue
Andrew Jackson State
Office Building
500 Deaderick Street
Nashville, Tennessee 37242

Mailing Address
City
State

Check if applicable:

ZIP Code

You may file your return and
payment at www.tn.gov/revenue.

The business tax rates vary, depending on your classification and whether you are a retailer or a wholesaler. However, every Class
1-4 and 5B taxpayer must pay at least a minimum tax of $22 per location. Out-of-state Class 1-4 and 5B taxpayers must pay a single
$22 minimum tax. Class 5A taxpayers must pay a minimum tax of $450 per location, but will not be liable for more than $1,500
per location.
Round to nearest dollar

1. Total state tax (total of all locations from Schedule A, Line 6)................ (1)
2. Total city tax (total of all locations from Schedule A, Line 12)................. (2)
3. Total tax (add Lines 1 and 2)....................................................................... (3)
4. Credit memo balance................................................................................... (4)
5. Penalty (see instructions)............................................................................. (5)
6. Interest (see instructions)............................................................................ (6)
7. Total amount due (add Lines 3, 5, and 6 then subtract Line 4).............. (7)

Under penalties of perjury, I declare that I have examined this report, and to the best of my knowledge and belief,
it is true, correct, and complete.
____________________________________________________ ______________________ ___________________________________________
Taxpayer's Signature	
Date	
Title
____________________________________________________ ______________________ _________________ _________________________
Tax Preparer's Signature	
Preparer's PTIN	
Date	
Telephone
____________________________________________________ _____________________________ _________ _________________________
Preparer's Address	
City	
State	
ZIP Code
Preparer's Email Address____________________________________________________________________________________________
For Office Use Only

Schedule A - Tax Computation by Location
Attach additional schedules as needed.
Location ID......................................................................
Business tax classification (see instructions)..............
Enter R for Retailer or W for Wholesaler for
each location..................................................................
County for this location.................................................
City (if applicable) for this location..............................
1. Total
	
gross state sales (excluding
sales tax)...................................................................
2. Enter
	
deductions from Schedule B, Line 20
less Schedule B, Line 9 (Class 4 only) or enter
deductions from Schedule B, Line 20 (nonClass 4)......................................................................
3. Taxable
	
gross state sales (subtract
Line 2 from Line 1)..................................................
4. 	State tax (multiply Line 3 by the applicable rate)
5. Amount
	
of county personal property tax paid
(cannot exceed 50% of Line 4)...............................
6. Total
	
state tax due (subtract Line 5
from Line 4)..............................................................
7.	 Total gross city sales (excluding sales tax)...........
8. Enter
	
deductions from Schedule B, Line 20
less Schedule B, Line 8 (Class 4 only) or enter
deductions from Schedule B, Line 20 (nonClass 4)......................................................................
9. Taxable
	
gross city sales (subtract Line 8
from Line 7)..............................................................
10. 	City tax (multiply Line 9 by the applicable
rate)...........................................................................
11. 	Amount of city personal property tax paid
(cannot exceed 50% of Line 10).............................
12. 	Total city tax due (subtract Line 11 from
Line 10).....................................................................

Location

Location

Location

Location

Schedule B - Deductions, Privilege and Excise Taxes by Location
Attach additional schedules as needed.
Location ID......................................................................
1.	Sales of services received by persons located
in other states..........................................................
	 2.	Returned merchandise when the sales price
is refunded to the customer..................................
	 3.	Sales of tangible personal property in
interstate commerce..............................................
	 4.	 Cash discounts allowed and taken on sales........
	5.	Repossessions.........................................................
	 6.	Amount allowed as trade-in value for any
articles sold..............................................................
	 7.	Bad debts written off during the reporting
period.......................................................................
	 8.	County amounts paid by a contractor to a
subcontractor (must complete Schedule C)
(see instructions).....................................................
	 9.	City amounts paid by a contractor to a
subcontractor (must complete Schedule C)
(see instructions).....................................................
10.	 Federal and Tennessee gasoline tax.....................
11.	 Federal and Tennessee motor fuel tax.................
12.	Federal and Tennessee tobacco tax on
cigarettes..................................................................
13.	Federal and Tennessee tobacco tax on all
other tobacco products..........................................
14.	 Federal and Tennessee beer tax...........................
15.	Tennessee special tax on petroleum
products...................................................................
16.	Tennessee liquified gas tax for certain motor
vehicles.....................................................................
17.	 Tennessee beer wholesale tax..............................
18.	 Tennessee bail bonds tax.......................................
19.	Other deductions not taken elsewhere on the
return........................................................................
	 a. Specify (see instructions)........................................
20.	Total deductions (add Lines 1 through 19)..........

Location

Location

Location

Location

Taxable Year

Taxpayer Name

Account No./FEIN/SSN
Location ID

Schedule C - Payment to Subcontractor Worksheet
Attach additional schedules as needed per location. See instructions for claiming this deduction.
Subcontractor Name

Contractor License Number

Address

Business License Number

City

State

ZIP Code

Description of business activities provided

Issued By (County or City)
Date Paid
Amount Paid

Subcontractor Name

Contractor License Number

Address

Business License Number

City

State

ZIP Code

Description of business activities provided

Issued By (County or City)
Date Paid
Amount Paid

Subcontractor Name

Contractor License Number

Address

Business License Number

City

State

ZIP Code

Description of business activities provided

Issued By (County or City)
Date Paid
Amount Paid

Subcontractor Name

Contractor License Number

Address

Business License Number

City

State

ZIP Code

Description of business activities provided

Issued By (County or City)
Date Paid
Amount Paid

Subcontractor Name

Contractor License Number

Address

Business License Number

City
Description of business activities provided

State

ZIP Code

Issued By (County or City)
Date Paid
Amount Paid

Instructions: Business Tax
General Information
Filing: Every person subject to Tennessee business tax should file only one business tax return per filing period
which includes all business tax due.
Due Dates: Your business tax return is due on the 15th day of the fourth month following the end of your fiscal
year. For example, if your fiscal year coincides with the calendar year, then your return will be due on April 15th.
Tax Rates: The business tax rates vary, depending on your classification and whether you are a retailer or a
wholesaler. However, every Class 1-4 and 5B taxpayer must pay at least a minimum tax of $22 per location. Out-ofstate Class 1-4 and 5B taxpayers must pay a single $22 minimum tax. Class 5A taxpayers must pay a minimum tax
of $450 per location, but will not be liable for more than $1,500 per location.
Classification

Retailer Rates

Wholesaler Rates

General Rate

Class 1A

0.001

0.00025

Class 1B and 1C

0.001

0.000375

Class 1D

0.0005

Not applicable

Class 1E

Not applicable

0.0003125

Class 2

0.0015

0.000375

Class 3

0.001875

0.000375

Class 4

Not applicable

Not applicable

0.001

Class 5A

Not applicable

Not applicable

0.001

Class 5B

Not applicable

Not applicable

0.0002

Classifications
Each taxpayer is classified by its dominant business activity (the activity that produces its largest portion of taxable
sales) on a per location basis. Every classification has its own tax rate, so your classification determines the tax rate
you must apply to all of your taxable sales at that location. You must choose only one classification per location. See
www.tn.gov/revenue for more information on classifications.
Retailer vs. Wholesaler
Your tax rate is also affected by whether you are a retailer or a wholesaler at a given location. Most classifications
include both a retailer rate and a wholesaler rate. Once you determine whether you are a retailer or a wholesaler at
a particular location, you will apply that rate to all of your taxable gross sales at that location.
You are a retailer if at least 50% of your taxable gross sales are retail sales. You are a wholesaler if more than 50% of
your taxable gross sales are wholesale sales.
A wholesale sale may include, but is not limited to:
• a sale to a retailer for resale,
• a sale of industrial materials that become a component part of a product that is for resale, or
• a sale of goods to the government or a governmental agency or to a nonprofit.
A retail sale is anything that is not a wholesale sale.
Exempt Services
Receipts derived from the sale of some services are exempt. The categories of exempt services can be found at
Tenn. Code Ann. § 67-4-708(3)(C). Note, however, that if you also sell tangible personal property or taxable services,
you must file and pay business tax on your taxable receipts based on the dominant taxable business activity.

Return
Line 1:	

Enter the total state tax due for every location entered on Schedule A, Line 6.

Line 2:	

Enter the total city tax due for every location entered on Schedule A, Line 12.

Line 3:	

Add Lines 1 and 2.

Line 4:	If your account has a credit balance from an overpayment on a prior return, enter the amount on
this line.
Line 5:	Penalty is calculated at a rate of 5% for each 30-day period, or portion thereof, that a return is
delinquent, up to a maximum of 25% of the delinquent amount. The minimum penalty is $15 for the
delinquent filing of a return. If your return is delinquent, apply the appropriate penalty rate to the total
tax due from Line 3.
Line 6:	Interest is due on any amount of tax that is paid after the statutory due date of the return. The interest
rate is determined in accordance with Tenn. Code Ann. § 67-1-801. The current interest rate can be
found at www.tn.gov/revenue by clicking the Tax Resources tab. If the payment is late, apply the interest
rate to the total tax due from Line.
Line 7:	

Add Lines 3, 5, and 6, and subtract Line 4 for the total amount of tax due.

Schedule A - Tax Computation by Location
You must provide the information in this Schedule for every location in this state. If you have an out-of-state
location ID, you should enter all information in a separate column for that location ID. If you have more than four
location IDs, please attach additional Schedules A and B.
Enter the location ID and classification for each of your locations in the state. A Class 4 contractor must separately
list its domicile location or out-of-state location, as well as any locations in which it receives more than $100,000 in
contracts during the business tax reporting period (deemed locations). Also enter your out-of-state location ID and
classification, if applicable.
If the return is a final return for any of the listed locations, you will need to close out those locations in your TNTAP
account. A Class 4 contractor will need to close out any deemed locations, unless the contract for a deemed
locations extends into the next reporting period and the contractor is sure that it will receive more than $100,000 in
receipts the next reporting period.
Indicate whether you qualify as a retailer or wholesaler for each location. If the location is a Class 4, 5A, or 5B, leave
these lines empty. Enter the city (if applicable) and county for each in-state location ID. These lines will be left blank
for out-of-state location IDs.
Line 1:	Enter the total state gross sales and gross income that are subject to business tax. Do not include in this
amount sales tax and liquor-by-the-drink tax collected, commissions from lottery ticket sales, or exempt
sales.
Line 2:	Class 4 contractors should enter the total amount of deductions entered on Schedule B, Line 20 less
the amount on Schedule B, Line 9 for the location. All other taxpayers should enter the total amount of
deductions entered on Schedule B, Line 20.
Line 3:	

Subtract Line 2 from Line 1 and enter here.

Line 4:	To determine the state tax, multiply Line 3 by the applicable rate from the rate table on page 1
of these instructions.
Line 5:	Enter the amount of county personal property tax actually paid on property located at the specific
location. The amount entered on this line cannot exceed 50% of Line 4. The tax must be paid prior to or
during the reporting period of this return. This amount cannot include real property taxes. Enter zero if
no personal property tax was paid for the location or if the location is out-of-state.
Line 6:	Subtract Line 5 from Line 4. For Class 1, 2, 3, 4, and 5B locations, if the amount is less than $22, enter
$22 on this line. For Class 5A locations, if the amount is less than $450, enter $450 on this line, and if the
amount is more than $1,500, enter $1,500 on this line.

Line 7:	Enter the total gross sales and gross income that are subject to the city business tax. Do not include
in this amount sales tax and liquor-by-the-drink tax collected, commissions from lottery ticket sales,
or exempt sales. Unless you are a Class 4 contractor, this amount should be the same as the amount
entered on Line 1.
Line 8:	Class 4 contractors should enter the total amount of deductions entered on Schedule B, Line 20 less
the amount on Schedule B, Line 8 for the location. All other taxpayers should enter the total amount of
deductions entered on Schedule B, Line 20.
Line 9:	Subtract Line 8 from Line 7 and enter here. Unless you are a Class 4 contractor, this amount should be
the same as the amount entered on Line 3.
Line 10:	To determine the city tax, multiply Line 9 by the applicable rate from the rate table on page 1 of these
instructions. If the location is out-of-state or is not in an incorporated municipality, or if the municipality
has not enacted the city business tax, enter zero.
Line 11:	Enter the amount of city personal property tax actually paid for the location, up to 50% of Line 10. Enter
zero if no personal property tax was paid for the location. If the location is out-of-state or is not in an
incorporated municipality, or if the municipality has not enacted the city business tax, enter zero.
Line 12:	Subtract Line 11 from Line 10. For Class 1, 2, 3, 4, and 5B locations, if the amount is less than $22, enter
$22 on this line. For Class 5A locations, if the amount is less than $450, enter $450 on this line, and if the
amount is more than $1,500, enter $1,500 on this line.
Schedule B - Deductions, Privilege and Excise Taxes by Location
You must provide the information in this Schedule for every location in this state. If you have an out-of-state
location ID, you should enter all information in a separate column for that location ID. If you have more than three
location IDs, please attach additional Schedules A and B.
Line 1:	

Enter all sales of services that are delivered to locations outside of Tennessee.

Line 2:	Enter the amount of returned goods, wares, or merchandise for which the sales price was refunded,
either in cash or credit, to the purchaser. This amount should equal the amount reported on the
Tennessee Sales and Use Tax Return, Schedule A, Line 5, for the business tax reporting period.
Line 3:	Enter all sales of tangible personal property that were delivered, either by the taxpayer or by common
carrier, where the purchaser took possession of the property outside of Tennessee for use or
consumption outside of Tennessee.
Line 4:	Enter the amount of cash discounts allowed and taken on sales made during the taxpayer’s business tax
reporting period.
Line 5:	Enter the portion of the unpaid principal balance in excess of $500 due on all items of tangible personal
property repossessed from customers during the taxpayer’s business tax reporting period. This amount
should equal the amount reported on the Tennessee Sales and Use Tax Return, Schedule A, Line 8, for
the business tax reporting period.
Line 6:	Enter the total amount allowed as trade-in value for any articles sold during the taxpayer’s business tax
reporting period.
Line 7:	Enter the total amount of bad debts written off during the business tax reporting period and eligible to
be deducted for federal income tax purposes.
Line 8:	Enter the total amount paid in the county by a Class 4 contractor to a subcontractor(s) holding either a
business license or a contractor’s license for performing activities described in Tenn. Code Ann. § 67-4708(4)(A). To receive the deduction, Class 4 contractors must complete a Schedule C for each location for
which they are claiming the deduction.
Line 9:	Enter the total amount paid in the city by a Class 4 contractor to a subcontractor(s) holding either a
business license or a contractor’s license for performing activities described in Tenn. Code Ann. § 67-4708(4)(A). To receive the deduction, Class 4 contractors must complete a Schedule C for each location for
which they are claiming the deduction.
Line 10:	Enter the amount of all federal and Tennessee privilege and excise taxes paid on gasoline sold by
the taxpayer.

Line 11:	Enter the amount of all federal and Tennessee privilege and excise taxes paid on motor fuel sold by
the taxpayer.
Line 12:	Enter the amount of all federal and Tennessee privilege and excise taxes paid on cigarettes sold by
the taxpayer.
Line 13:	Enter the amount of all federal and Tennessee privilege and excise taxes paid on all other tobacco
products sold by the taxpayer.
Line 14:	Enter the amount of all federal and Tennessee privilege and excise taxes paid on beer sold by
the taxpayer.
Line 15:	

Enter the amount of Tennessee special tax paid on petroleum products sold by the taxpayer.

Line 16:	Enter the amount of Tennessee liquified gas tax paid on liquified gas for motor vehicles sold by
the taxpayer.
Line 17:	

Enter the amount of Tennessee beer wholesale tax paid on beer sold by the taxpayer.

Line 18:	

Enter the amount of Tennessee bail bonds tax paid.

Line 19:	Enter any other deductions from business tax for the business tax reporting period. Specify which
deductions are taken by using the letters listed below. Note that these deductions may be taken only if
included in Schedule A, Line 1. Other deductions include:
	

a)	accommodation sales (sale for resale of tangible personal property at cost plus freight, storage, and
transportation costs by a person who regularly sells such property to another person who regularly
sells such property)

	

b)	 casual and isolated sales of tangible personal property

	

c)	sales of school supplies and meals to students and school employees on campus by secondary or
elementary schools (but not such sales made by independent contractors)

Line 20:	

Calculate the total deductions by adding Lines 1 through 19.

Schedule C - Payment to Subcontractor Worksheet
Only Class 4 contractors that actually paid amounts during the business tax year to a subcontractor holding a
business license or contractor’s license issued by the board for licensing contractors for performing contracting
activities should complete this schedule.
Examples of such activities include rendering extermination services, installing personal property, constructing,
building, erecting, repairing, grading, excavating, drilling, exploring, testing, or adding to any building, highway,
street, sidewalk, bridge, culvert, sewer, irrigation or water system, drainage or dredging system, levee or levee
system or any part thereof, railway, reservoir, dam, power plant, electrical system, air conditioning system, heating
system, transmission line, pipeline, tower, dock, storage tank, wharf, excavation, grading, water well, or any other
improvement or structure or any part thereof.
You must complete a Schedule C for each location ID for which you are claiming the subcontractor deduction
on Schedule B, Line 8. If you paid more than five subcontractors for a particular location during the business
tax reporting period, please attach additional schedules. You must maintain in your records a copy of the
subcontractor’s business license or contractor’s license.
Fill in all applicable information for each subcontractor. Enter either the contractor license number or the business
license number (both are not required). Enter the total amount paid to the subcontractor for that location during
the entire reporting period. If you paid the subcontractor multiple times during the reporting period, enter the final
date of payment in the “date paid” box.