Black Friday shopping online – Tennessee’s Use Tax

25 November 2011 Categories: All Blogs

It is a common misconception that it is better to do your shopping online because you save on sales tax. There was quite a bit of debate on Amazon opening a distribution location in Tennessee because they could be forced to collect sales tax from customers in Tennessee. While Amazon and many other online retailers are not collecting sales tax right now, that does not mean you are not taxed on items you buy online. Some of you may have noticed on recent Amazon orders the following language at the bottom of the order confirmation:
Please be aware that this order is subject to Tennessee Use Tax (T.C.A. § 67-6-210) unless an exemption exists under Tennessee law. A sale is not exempt under Tennessee law because it is made through the Internet. Payments of applicable Tennessee use tax may be made through the Tennessee Department of Revenue’s Website at

So what does this mean? If you buy items that you use in Tennessee and you did not pay a sales tax up front, you probably are required to pay a use tax and file in Tennessee. So the next time some one tells you to shop online because you don’t have to pay taxes, you now know the truth. McNulty & Associates does not specialize in tax law and this should not be taken as tax advice. We just want all Tennesseans to be aware of the laws that have a daily effect on their lives. We hope everyone had a great Thanksgiving and is having a good holiday weekend.

Don’t forget tomorrow to shop small businesses to help the local economy!

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