* Please note that tax laws and regulations change regularly. We strive to keep information on our website up-to-date, but the information you see here may or may not be the most current information available. If you have any questions regarding information on this page, or any other page, please feel free to give us a call.
Taxes and Public Finance
Tax assessments in Martin and Weakley County are made by the County Assessor
of Property. Every effort is made to assess property on a fair and equitable basis.
There is no State tax on real property in Tennessee. The following property tax rates per $100.00
of assessed value are in effect for Martin and Weakley County. (County taxes are included in the total for the city).
City Tax Rate
County Tax Rate
|
Within City Limits
$1.64
$2.17
$3.81 |
Outside of City
$0.00
$2.17
$2.17 |
Sales Tax
State: 7%
(6% for food and
food ingredients for
human consumption)
County: 2.75%
Assessed Valuation
City: $96,796,677
County: $299,069,099
Bonded Debt
City: $7,040,000
County: $31,725,000
TAXES
AND TAX INCENTIVES
Tax
|
State
|
Local
|
Sales
and Use
|
7%
|
1 - 2.75%
|
General
Business
Tax
|
None
|
$0.10 -
$3.89 for
each $100 of
assessed
value (city)
$1.42 -
$5.17 for
each $100 of
assessed
value
(county)
|
Local
Business
Tax
|
None
|
up to 1/8 of
1% gross
sales
|
Corporate/Excise
|
6.5%
|
None
|
Franchise
|
.25 per $100
|
None
|
Personal
Income
|
6% of
interest,
dividends
|
None
|
Initial
Corporate
Organization
Fee
|
$100 - $600
|
None
|
Unemployment
Insurance
|
2.7% new
employers
|
None
|
Utility
Gross
Receipts
|
3%
|
None
|
CORPORATE
EXCISE TAX
*Excise tax
credit equal to 1%
of the purchase,
installation, and
repairs of qualified
industrial
machinery.
*Excise tax
credit equal to 1%
of the purchase
price of qualified
equipment associated
with the required
capital investment
of $500,000 by a
distribution of
warehouse facility.
*Net operating
loss carry forward
of 15 years.
*All capital
losses can be
claimed in the year
incurred.
FRANCHISE TAX
*Jobs tax
credit of $2,000 or
$3,000 (in
economically
distressed counties)
per new full-time
employee for
eligible businesses
that meet
requirements of a
minimum 25 new
full-time jobs and
additional capital
investment of
$500,000. Credit may
also be taken for
new jobs in future
years, which result
in additional net
increase in jobs.
*Finished goods
inventory, in excess
of $30 million for
fiscal years on or
after July 15, 1998,
may be excluded from
the franchise tax.
*Property under
construction, not
being utilized by
corporation, is
excluded from
franchise tax.
*Property rented
from an industrial
development board
may be capitalized
on the corporate
books.
*Pollution control
equipment is exempt
from the franchise
tax.
*Effective 12/15/98,
the sales factor is
double-weighted for
the franchise and
excise apportionment
formula for
multi-state
corporations.
SALES TAX
*Tax Rate
- State sales tax: 7%
- Local option sales tax: 1% - 2.75%
*No sales tax on
purchases,
installation and
repairs of qualified
industrial
machinery.
*No sales tax on
purchases of
equipment associated
with the required
capital investment
of $10 million by a
distribution or
warehouse facility.
*No sales tax on raw
materials for
processing.
*No sales tax on
pollution control
equipment.
Other pollution
control equipment
may be eligible for
sales tax credit.
*Reduced sales tax
rates for
manufacturers' use
of energy fuel and
water; tax-exempt if
used directly in the
manufacturing
process.
*Credit of 5.5% for
state sales and use
taxes paid on
building materials,
machinery, and
equipment for new or
expanded corporate
headquarters
(regional, national
or international)
meeting capital
investment
requirement of $50
million.
*Refund on taxes
paid on goods and
services by motion
picture production
companies filming or
producing in
Tennessee that meet
expenditures
requirement of
$500,000.
PROPERTY TAX
*There is no
property tax on
goods-in-process.
*There is no
property tax on
finished goods
inventories in hands
of manufacturers and
inventories of
merchandise for
sale.
*There is no
property tax on
goods-in-transit
(Freeport).
*Pollution control
equipment required
for compliance with
federal, state, or
local environmental
protection laws is
exempt.
PERSONAL
INCOME TAX
*There is no state
personal income tax
on wages or
salaries; however,
certain dividend and
interest income
received by a
Tennessee resident
is taxable.
ADDITIONAL TAX
CREDITS
*The Day Care
Incentive Act
establishes credit
against corporate
franchise and excise
taxes for any
business that
established a day
care center for
children of
employees.
UTILITY GROSS RECEIPTS TAX
*The utility gross receipts tax of 3% is based on intrastate gross receipts. Gross receipts taxes are paid by utilities; gas, water, electric power and light companies; and sewage companies. Tennessee offers the following incentives and exemptions:
-Manufacturers and distributors of manufactured or natural gas are taxed at a
rate of 1.5%
-Utilities operated by the United States, cities, or political subdivisions of the state are exempt from the gross receipts tax.
- Credit is allowed for corporate franchise and excise taxes paid. Water and electric companies may deduct $5,000 annually from gross receipts.
*The gross receipts tax is due August 1 each year but may be paid in installments.
LOCAL BUSINESS TAX
The business tax is administered by the state Department of Revenue but collected and imposed by local governments. The owners or operators of all for-profit businesses, except manufacturers subject to personal property taxation and professionals, must pay the local business tax for each place of business located in either the county or the city which imposes the business tax.
Businesses are classified into four groups in which the rate imposed upon the gross sales varies from 1/60 of 1% to 1/8 of 1%. Due dates vary by classification of taxpayers. The tax is levied as a substitute for a property tax on inventories. Businesses exempted include: manufacturers, employees of businesses, certain blind persons, disabled veterans, and the services of certain professionals.
UNEMPLOYMENT COMPENSATION TAX
The Tax
*Collected by both the federal and state governments, Tennessee's portion is a credit against part of the federal taxes owed.
*Tax is paid by employers only. Cannot be deducted from employee's wages.
*The first $7,000 in wages paid to each employee is subject to this tax.
-Taxable wages include: tips, meals, lodging and other
payments in kind.
-Non-taxable wages
include: payments
made by employer for
insurance,
retirement, or
annuities.
Tax Rate
*State tax rate: 2.7% for most new employers to Tennessee.
*After three (3) full calendar years, the employer is evaluated and a tax rate is assigned.
-Employer's history of taxes and employees laid off determines the tax.
-Minimum rate: 0%; Maximum rate: 10%
*Unemployment compensation taxes are paid on a calendar year basis regardless of the employers fiscal year.
Reporting
*New employers must file an initial report to determine their taxpaying status and receive their Tennessee account number.
*Wage reports and contribution reports must be filed quarterly.
*All employers reporting wages on 250 or more employees must provide information via magnetic media (tape or diskette).
MOTOR VEHICLE REGISTRATION
Fees for titling and
registering motor
vehicles in
Tennessee are as
follows:
Title Fee:$10.50
Passenger Cars: $24.00
Motorcycles: Private: $17.00
Trucks
- Private, Farm use, and Logging : weight classes $38.25 - $497.25
- Private Carriers : weight classes $44.25 - $1,371.25
- Public Carriers : weight classes $44.25 - $1,371.25
House Trailers : weight and length classes $20.75 - $52.75
Passenger Carrying Vehicles
- Operating for Hire (Taxi Cabs) : $39.00 (3 - 5 seats), $45.00 (6 - 7 seats)