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-.41 - REAL ESTATE SALES AND RENTALS

(1) Persons who receive monies or other consideration for the sale or rental of real property belonging to them, not including rentals lasting less than 180 days, are not liable for business tax on such sales or rentals.

(2) Persons receiving or entitled to receive commissions, fees, service charges, or other income, credits or property value in money for services rendered concerning the sale or rental of real or personal property belonging to others are liable for business tax on such receipts.

(3) The employing unit, whether designated as a real estate firm, broker, agency, partnership, or corporation which owns or conducts a real estate business, but not the employees thereof, is liable for business tax. The tax shall be paid on the total receipts (as enumerated in paragraph (2) above) which are due and payable. It is immaterial, with regard to tax liability, whether the total receipts are divided between the employing unit and the employee, salesman, or other representative of the employing unit or whether the division is made by the employing unit or by the owner, purchaser or other party in interest. In any event the tax is payable on the total amount of receipts due and payable for services rendered.

(4) The business tax is due and payable to the Department for each county and city, if any, where the employing unit maintains an office or place of business, regardless of the location of the property involved in the sale or rental or the place where a contract for the sale or rental of the property is entered.

(5) Where receipts, as enumerated herein, are divided, or split, between bona fide real estate agents or brokers, as distinguished from a division between an agent or broker and one of his employees, that portion of the receipts retained or received by each business shall become a part of its gross receipts subject to business tax.