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-.19 - FUNERAL DIRECTORS

Universal Citation: TN Comp Rules and Regs 1320-04-05-.19

Current through September 24, 2024

(1) Persons engaged in business as a funeral director shall be liable for the Business Tax as determined by the manner in which they indicate the billing to their customers.

(a) In the case of a "unit price," (such as where there is one stated price for the casket, burial vault, and all services furnished) the transaction shall be regarded as a sale of tangible personal property and taxed under Classification 2 of the Business Tax Act.

(b) In the case of a "functional price," or "itemization," (such as where there is a segregation of the price of the casket, burial vault and other tangible personal property sold and charges for services rendered) the tax rate shall be determined by the classification comprising the dominant business activity, either Classification 2 or Classification 3.

(2) In cases where a funeral director makes "cash advances" for opening graves, transportation, newspaper notices, telephone calls and other similar services, and furnishes items such as flowers and clothing, acting as an agent for his customer and making a charge for reimbursement for the advances without adding any profit to the charges for himself, such charges shall be included in the gross sales of the funeral director but may be deducted on the Business Tax Return in computing the Business Tax due and payable.

Authority: T.C.A. §§67-5822 and 67-101.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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