NASHVILLE, Tenn. - As part of its ongoing efforts to discover and collect unpaid use taxes, the Tennessee Department of Revenue will contact many professional service firms. Over the next few weeks, the department will begin mailing letters to dentists and doctors to request a review of their records for use tax liabilities. Other types of professional service firms will be contacted in the coming months.

When a professional service firm purchases equipment or supplies used in conducting their business from out-of-state retailers without the payment of tax, use tax is due on the cost of the equipment or supplies. Use tax, the counterpart to the state's sales tax which has been on the law books since 1947, is the same rate as the sales tax. When someone buys merchandise outside of Tennessee, 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. Purchasing items outside of Tennessee, physically or electronically, does 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.

"Voluntary compliance serves as the basis for an effective tax system," said Revenue Commissioner Loren L. Chumley. "This new program to remind professional service firms of their use tax obligations represents just one way the department encourages voluntary compliance among Tennessee taxpayers."

Use tax can be filed online filing via Revenue's Web site, www.Tennessee.gov/revenue. The statewide electronic commerce toll-free phone number is (866) 368-6374. Nashville-area and out-of-state callers should call (615) 253-0704.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 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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