Tax & Accounting Blog

Tennessee Another State to Look Outside the Box for Revenue

Indirect Tax, ONESOURCE, Sales and Use Tax March 15, 2012

A Tennessee County Representative is proposing a 25 percent tax on adult businesses and products to help generate an estimated $55 million in state revenue.  This “sin” tax would be levied on things such as adult material, escort services, and establishments and products where you must be at least 18 to enter or purchase, with the incentive that having this tax may also help to lower or eliminate the sales tax on food.  With Tennessee having one of the highest divorce rates in the country, Representative Carr hopes that his proposal will help to indirectly help marriages within the state.   Some believe that the Constitutionality of this tax would be challenged in the court.