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-.31 - MOTOR VEHICLE, TRAINER, AND/OR SIMILAR RENTALS

(1) Persons engaging in the business of motor vehicle and/or trailer rentals, or having contracts with service stations or other business entitles to act as their agent for the rental of such equipment to customers, are liable for the Business Tax imposed on rentals in their counties and/or municipalities at each location where such vehicles are maintained and rented, including their own locations as well as those of their agents. Agents operating the service stations or other business locations where such rentals are made are liable for the Business Tax on the commissions they receive for the services performed.

(2) Payments by service stations or other businesses in regard to the tax shall be made to the locality where the customers pay for the rental of the equipment.

(3) Deposits made by customers and which are refundable when a motor vehicle, trailer, and/or similar rentals are left at the destination, and which are actually refunded to the customer, may be deducted from the gross receipts in determining the Business Tax.