The Tennessee Department of Revenue held a meeting on January 1, 2025, to discuss the Consumer Use Tax, focusing on filing procedures, deadlines, and tax rates. The session aimed to clarify the process for taxpayers and ensure compliance with state tax regulations.

The meeting began with an overview of the filing timeline. Taxpayers are required to file and pay use tax at least annually, with a deadline set for January 20 of the year following the purchase. For instance, purchases made throughout 2024 must be reported by January 20, 2025. The discussion emphasized the importance of meeting this deadline to avoid penalties and interest.

A key point raised was the grace period for filing. Taxpayers have until January 20 to submit their returns without incurring interest, even though the tax is due at the time of the transaction. If a taxpayer fails to file by the deadline, interest will accrue retroactively from the date of purchase. This was illustrated with a credit card analogy, highlighting the consequences of missing the payment timeline.

The meeting also covered the ease of filing through the Tennessee Online Taxpayer Access Point (10 TAP). Participants were informed that filing the Consumer Use Tax return does not require a 10 TAP login, making the process more accessible. Instructions were provided for navigating the online system, including verifying addresses during registration.

Regarding tax rates, it was noted that the use tax rate aligns with the state sales tax rate, typically set at 7% plus any applicable local rates. Special rates apply for certain items, such as food and digital products, which have different tax structures.

The session concluded with a walkthrough of the online filing process, detailing how to report total purchases, digital items, and any single items exceeding $1,600. The system is designed to assist taxpayers by calculating the tax owed based on the information provided.

Overall, the meeting served to inform Tennessee taxpayers about their obligations regarding the Consumer Use Tax, emphasizing the importance of timely filing and the resources available to facilitate compliance.