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Classification 3

Classification 3 is for service businesses. Some businesses that provide services are listed in this section as exempt and are not required to have a business license. Additonally, some businesses selling tangible personal property are also included in this classification.

Sellers of these types of tangible personal property are classified under Classification 3 include:

  • Antiques, including antique furniture, furnishings and objects of art
  • Architectural supplies
  • Artist paints and supplies
  • Artificial flowers
  • Awnings
  • Baby carriages
  • Bait
  • Banners
  • Binoculars
  • Books
  • Cameras, film and other photographic supplies and equipment
  • Candy
  • Cigars, cigarettes, tobacco and smoking supplies
  • Clothing made to individual order
  • Coins
  • Delicatessens
  • Electric razors
  • Fireworks
  • Flags
  • Gemstones
  • Gifts and novelty merchandise, souvenirs and miscellaneous small art goods, such as greeting cards and holiday decorations
  • Hearing aids
  • Jewelry, diamonds and other stones mounted in precious metals, rings, bracelets, brooches, sterling and plated silverware, watches and clocks
  • Leather goods
  • Luggage
  • Office supplies, including stationery, accounting and legal forms, office forms and supplies, pens and pencils, school supplies and writing supplies
  • Optical lenses and other related tangible personal property dispensed by an optometrist or ophthalmologist in conjunction with professional services rendered to patients
  • Orthopedic and artificial limbs
  • Pawn shops
  • Pet foods
  • Pets
  • Piers and floats
  • Rock and stone specimens
  • Rubber stamps
  • Sporting goods and equipment, including stores that sell bicycles, bicycle parts and accessories
  • Stamps
  • Swimming pools
  • Telescopes
  • Tents
  • Theater programs
  • Trophies
  • Trunks
  • Typewriters
  • Toupees, wigs and wiglets
  • Toys, games and hobby kits and supplies

Exempt Services - Receipts derived from the sale of the services listed below are exempt. No business license is needed and no tax is due.

  • Accounting services
  • Architecture
  • Banks, building and loan associations, mortgage bankers and other similar organizations
  • Camps and trailer parks where charges are made only for rental of real property. Persons who rent trailers to transients or sell tangible personal property or make separate charges for specific services furnished are not exempt.
  • Charitable
  • Domestic
  • Educational
  • Educational research agencies
  • Engineering
  • Insurance companies and holding companies
  • Legal
  • Lessors of agricultural, forestry, mining, oil, public utility and airport properties
  • Medical, dental and allied health services to human beings, except services to persons engaged in making dentures and artificial teeth
  • Non-profit membership organization services that are for the promotion of the interests of the members
  • Operators of residential and non-residential buildings other than hotels, motels and rooming houses
  • Public utilities as defined in Tenn. Code Ann. Section 65-4-101
  • Religious
  • Surveying
  • Veterinary services

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