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Gross Receipts Taxes

Taxes at a Glance

Gross Receipts: Bottlers - Any person within Tennessee manufacturing or producing or causing to be imported bottled soft drinks must report and pay this privilege tax. Also, any person importing bottled soft drinks into Tennessee from outside the state must report and pay this privilege tax. "Bottled soft drinks" include all nonalcoholic beverages, whether carbonated or not, such as soda water, cola drinks, orangeade, grapeade, ginger ale and the like, and all bottled preparations commonly referred to as soft drinks of whatever kind or description which are closed and sealed in glass, paper, metal, plastic, or any type of container or bottle, whether manufactured with or without the use of syrup.

Gross Receipts: Utilities-Gas, Water, Electric - Each person engaged in the business of furnishing or distributing gas, water or electric current, whether to a dealer, consumer, municipality or other customer must pay this privilege tax. This tax does not apply to cities or other political subdivisions of the state owning and operating gas companies, water companies or power plants, nor does it apply to any governmental agency of the United States.

Gross Receipts: Vending - Any person within Tennessee who is operating a vending machine that: (1) is operated for the benefit of a charitable nonprofit organization, (2) dispenses merchandise with a market value of 25 cents or less, and (3) is built so that only a fixed, predetermined price can be paid for the item dispensed by the machine has the option of registering with the Department of Revenue and paying gross receipts tax in lieu of sales tax, in accordance with Tenn. Code Ann. Section 67-4-506. The machine must not be able to return or make change or be able to be adjusted by mechanical, electronic or other means to change the price charged for the items dispensed by the machine. Vending machines of the type described above that are not operated for the benefit of a charitable nonprofit organization are not subject to this gross receipts tax; they are subject to the full rate of state and appropriate local sales and use tax.

Operators of machines that are subject to the gross receipts tax must register each organization for which such machines are operated and obtain a machine decal for each machine operated.

Due Dates:

Gross Receipts: Bottlers - Annual - August 1
Gross Receipts: Utilities-Gas, Water, Electric - Annual - August 1
Gross Receipts: Vending - Quarterly - October 20, January 20, April 20, and July 20.

Tax Rates:

Gross Receipts: Bottlers - 1.9% of gross receipts
Gross Receipts: Utilities-Gas, Water, Electric - 3% of the gross receipts derived from intrastate business. Persons in the business of manufacturing gas or distributing manufactured gas or natural gas pay an amount of 1.5% of the gross receipts.
Gross Receipts: Vending - Tax on gross receipts from machine product sales - 1.5% for non-tobacco sales; 2.5% for tobacco sales.
Registration fee of $2 for each separate charitable nonprofit organization and a machine decal fee of $1 for each machine in operation for the benefit of that organization - due at time of registration.

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