REMINDER FOR HOLIDAY SHOPPERS: FILE CONSUMER USE
TAX ONLINE
REVENUE OFFERS E-FILING OF USE TAX
NASHVILLE, Tenn. - Holiday shopping is upon us. As shoppers search for the perfect gifts, the Tennessee Department of Revenue reminds all online shoppers, mail-order customers, and out-of-state bargain hunters that they can e-file their consumer use tax, the counterpart to the state's sales tax. The Department of Revenue offers online filing of consumer use tax via its Web site, www.Tennessee.gov/revenue.
"Electronic tax administration is one of the Department of Revenue's top priorities. Our customers are experiencing for themselves the convenient, secure tax filing options as the number of returns filed online continues to grow," said Revenue Commissioner Loren L. Chumley.
An online demonstration of the online consumer use application is available at www.tennesseeanytime.org/usetax/demo.
What is the consumer use tax?
Contrary to popular opinion, online and catalog sales are subject to use tax. This tax has been on the law books since 1947 and is the same rate as the sales tax. When someone buys merchandise online or through a catalog and the seller of the merchandise does not collect sales tax, the consumer who bought the item has a legal obligation to file and pay use tax on the merchandise.
And, purchasing merchandise outside of Tennessee, whether done physically or electronically, will not exempt someone from paying use tax if an equal amount of sales tax was not paid to another state at the time of purchase.
Online Tax Filing Options
Currently, the department's Web site, www.Tennessee.gov/revenue, offers online filing of the following taxes: sales and use tax, consumer use tax, individual income tax, professional privilege tax, and franchise and excise tax minimum and estimated payment returns and extensions. The newest application launched allows bill payments to be made online. Many business tax registration activities also can be done online. Information about motor fuel tax electronic data interchange and sales and use tax certified software providers is available on Revenue's Web site. Electronic funds transfer is also available on the Web site.
All taxpayer data, whether paper or electronic, filed with the Department of Revenue is confidential data protected under Tennessee law.
The department offers an electronic commerce hot line to assist taxpayers and tax practitioners who use the department's ever-expanding suite of electronic tax filing options. The statewide toll-free phone number is (866) 368-6374. Nashville-area and out-of-state callers should dial (615) 253-0704.
Computer Access
The Department of Revenue offers computer access to customers who don't have such technology, so they can file their taxes online. Computer access is available in the department's offices located in Chattanooga, Jackson, Johnson City, Knoxville, Memphis and Nashville. Interested tax filers must be registered and have an account with the Department of Revenue.
The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.
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