Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-04 - General Revenue Law
Section 1320-04-04-.03 - PRIVILEGE TAX ON VENDING MACHINES

(1) Each vending machine operator who has elected to pay privilege tax under the option afforded in Item 65(c) (1) of Section 67-4203, Tennessee Code Annotated, who first commences business after July 1 of any given year, shall within 30 days following the effective date of business registration with the Department of Revenue, and each 30 days thereafter remove all monies from each and every vending machine and report the aggregate of all such monies to the Commissioner of Revenue, and shall pay tax measured by such gross receipts at the rate specified in the appropriate taxing item. This tax shall be paid not later than the 10th day of the following month. On or before August 1 following the effective date of business registration he shall pay the annual tax for the year commencing on the next prior July 1. The measure of the tax shall be ascertained by multiplying such person's gross receipts by the ratio which the period during which he has engaged in business bears to an entire year, but he shall not thereafter make monthly payments.

(2) Any person required to file monthly reports during the initial tax year who fails to remove all monies from each and every vending machine and report the aggregate of all such monies to the Commissioner of Revenue in the manner prescribed above, shall be arbitrarily assessed on the basis provided under T.C.A. §67-4322.