The Finance Division collects, accounts for and disburses City funds under the direction of the City Manager and City Commission. This Division Head is also responsible for gathering and organizing accounting information, reporting financial information and making recommendations.
Finance also produces, under the direction of the City Manager, the annual budget document and the Financial Report. Other duties include accounts payable, and employee payroll.
If you have any questions about either of these reports or need additional financial information, contact John Alexander, Director of Finance at (423) 877-1103.
Starting a Business in Red Bank
All businesses must obtain a local
municipal business tax license issued by the Finance Department. Please contact City Hall at (423) 877-1103, ext. 0.
Apply for a Business License (Click Here) - Apply for a Minimum Business Tax License
Effective January 1, 2014, there are two types of licenses
- Minimal Activity Business License
This license can be obtained by businesses with gross
receipts of $3,000 to $9,999. The fee is $15.00 for this type of license made payable
to the City of Red Bank annually.
- Regular Business Tax License
This license is obtained by businesses with gross receipts of
$10,000 or more. It is possible to have this type of license even though a business does not
meet the $10,000 threshold. The initial fee is $15.00 made payable to the City of Red Bank.
If the gross receipts are less than $3000, a business does not need to obtain a business tax
license. The business does have the option of obtaining a Minimal Activity or Regular Business
Tax License if it so desires.
The fee is payable in cash, check or money order.
Mail to: City of Red Bank
ATTN: Business License
3117 Dayton Boulevard
Chattanooga, TN 37415
Or bring your application form to the Red Bank City Hall, 3117 Dayton Boulevard
In addition, a Hamilton County business tax license will also be required. Visit the Hamilton County Clerk's Website to obtain a Hamilton County Business Tax License Application.
Visit the State of Tennessee's Website for other requirements for new businesses.
Business Tax Report
Every business with a Regular Business Tax License is required by the State of Tennessee to
file a business tax report. This is a gross receipts tax. Business tax is collected and imposed
by the Tennessee Department of Revenue. The tax rate is applied to the gross sales of the
business. Effective January 1, 2014, a business must register and pay the tax electronically.
For more information Visit the State of Tennessee's Website or call The Tennessee Department of Revenue at (800) 342-1003.
Who is Liable?
Business tax is a privilege tax imposed upon all businesses
which sell tangible personal property either wholesale of
retail and businesses which render services, except those
specifically exempted by law. Generally, all for-profit
businesses must pay the local business tax to the Tennessee Department of Revenue which have imposed the tax.
Who is Exempt?
Sales of manufactured goods from a location subject to the
ad valorem tax and services furnished by professionals such
as doctors, attorneys, accountants, architects and insurance
agents are exempt. Services performed by religious charitable
, educational and non-profit organization are exempt; however,
receipts derived from sales of food, beverages or other
tangible personal property by non-profit entities are subject
to the business tax. A few business types may be exempt
totally or in part from the business tax because of their
liability for certain other privilege taxes. These include
soft drink bottlers, gas, electric and water companies,
movie theatres. Other kinds of businesses which are exempt
1. Businesses with less than $3000 a
year in sales.
2. Operators of camps and trailer parks
where only real property is rented.
3. Farmers selling farm products directly
from their farms.
For more information Visit the State of Tennessee's Online Tax Registration Website or call The Tennessee Department of Revenue at (800) 342-1003
Transfer of Ownership
If you have purchased an existing business, you must transfer
ownership by completing the application for for business
tax license and the prior owner must terminate his license
by submitting a final tax report within 15 days of transfer. Visit the State of Tennessee's Online Tax Registration Website
Tennessee Code 67-4-721. Settlement
upon termination or transfer of business states:
a. If any person liable for any
tax, penalty or interest levied hereunder shall sell out
the business or stock of goods, or shall quit the business,
the person shall make a final return and payment within
fifteen (15) days after the date of selling or quitting
b. The person's successor, successors,
or assigns, if any, shall withhold sufficient of the purchase
money to cover the amount of such taxes, interest and
penalties due and unpaid until such former owner shall
produce a receipt from Tennessee Department of Revenue showing that they have been paid, or a certificate
stating that no taxes, interest or penalties are due.
c. If the purchaser of a business
or stock of goods shall fail to withhold the purchase
money as above provided, the purchaser shall be personally
liable for the payment of the taxes, interest and penalties
accruing and unpaid on account of the operation of the
business by any former owner, owners or assigns.
Home Office Regulations
The standards for home occupations are intended to ensure
compatibility with the residential character of the neighborhood.
No home occupation shall be permitted that might interfere
with the general welfare of the surrounding area due to
potential noise, increased pedestrian or vehicular traffic,
or any other condition which would constitute an objectionable,
incompatible use of residential property.
A Home Occupation Application is required
as well as a city and county business license. This application
fee is $50.00 and is payable in cash, check or money order
in the office of Finance. The application itself is maintained
by the Codes Department of the Public Works Division. The
department head will approve or disapprove the application
and send letters to surrounding neighbors to make them aware
of the business operations in the neighborhood and to make
available to them the opportunity to come before the City
Commissioners for any discussion regarding the business.