Finance Department

  >Starting a Business in Red Bank >Home Occupation Regulations >Business Tax Report

John Alexander
Finance Director

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.

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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. EMAIL US

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 include:

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 the business.

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.

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Red Bank, TN | 3117 Dayton Blvd | Chattanooga, TN | (423) 877-1103
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