Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-05 - Business Tax Rules and Regulations
Section 1320-04-05-.02 - BROKERS

(1) A person who acts as a broker or an agent for another in making sales of tangible personal property or services without maintaining a stock of merchandise or taking title to any such property and who receives a commission or fee for his service is performing a taxable service and, with the exception of a food broker, is taxable under classification 3 at the retail service rate on his total commissions and fees. A food broker is taxable under classification 1 also on his commissions and fees.

(2) A person who makes sales of tangible personal property or services without acquiring possession thereof, but who acquires title thereto, is a wholesaler or retailer, and is liable for the Business Tax as a vendor.

(3) A person, who, as a part of his normal business activities, buys and sells intangible personal property or real property is not liable for the business tax on receipts from such sales.