Tennessee § 67-4-1702 - Occupations subject to tax.

§ 67-4-1702. Occupations subject to tax.

There is levied a tax on the privilege of engaging in the following vocations, professions, businesses, or occupations: Persons registered as lobbyists pursuant to § 3-6-302; Persons licensed or registered under title 48, chapter 1 as: Agents; Broker-dealers; and Investment advisers; Persons licensed or registered under title 63 as: Osteopathic physicians; and Physicians; and Persons licensed as attorneys by the supreme court of Tennessee. Acts 1992, ch. 529, § 8; 1996, ch. 999, § 2; 2001, ch. 342, §§ 2, 3; 2009, ch. 530, § 64; 2014, ch. 760, §§ 1, 3; 2019, ch. 478, § 1. Compiler's Notes. Acts 2014, ch. 760, § 5 provided that any privilege taxes that are due or owing by persons employed as players on any franchise of the NBA prior to June 1, 2016, shall be collected and distributed pursuant to the law in effect on May 30, 2016. Acts 2016, ch. 1024, § 1 provided that: “(a) The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to study and make recommendations relative to the professional privilege tax. TACIR shall study the application of this tax, or its nonapplication as the case may be, to various occupations, businesses, and professions, whether or not listed in Tennessee Code Annotated, § 67-4-1702 , and the application of this tax on both residents of this state and nonresidents. TACIR shall also study this bill as introduced (Senate Bill 556 / House Bill 678) and the following two (2) additional bills, as introduced and as amended, if applicable: Senate Bill 1919/House Bill 1951 and Senate Bill 167/House Bill 601. “(b) The department of revenue and all other appropriate state agencies shall provide assistance to TACIR upon the request of the executive director of TACIR. “(c) The study shall examine: “(1) The history of the professional privilege tax in this state; “(2) The intent of the professional privilege tax; “(3) Other states' laws imposing a professional privilege tax or similar tax; and “(4) Alternatives for eliminating or phasing out the professional privilege tax. “(d) On or before January 1, 2017, TACIR shall provide its recommendations and report regarding the professional privilege tax to the speakers of the senate and the house of representatives and the chairs of the finance, ways and means committees of the senate and the house of representatives. “(e) It is the legislative intent that this study be conducted within TACIR's existing resources.” Acts 2019, ch. 478, § 1 provided that the act, which amended this section, shall apply to privilege taxes due and payable after May 31, 2020. Amendments. The 2014 amendment by ch. 760, § 1, effective April 24, 2014, deleted “or National Hockey League (NHL)” following “National Basketball Association (NBA)”; “or NHL” following “NBA” and substituted “fifteen (15)” for “ten (10)” in the first sentence of (a)(7). The 2014 amendment by ch. 760, § 3, effective June 30, 2016, deleted (a)(7) which read: “Persons employed as players on any franchise of the National Basketball Association (NBA) for more than fifteen (15) days in the tax period who are on the roster for any NBA regular season game within the boundaries of the state. For purposes of this subdivision (a)(7), “roster” means the list of players present in this state and eligible to participate in games, regardless of whether the player actually participates in the game.” The 2019 amendment rewrote the section which read: “(a) There is levied a tax on the privilege of engaging in the following vocations, professions, businesses or occupations:“(1) Persons registered as lobbyists pursuant to § 3-6-302 ;“(2) Persons licensed or registered under title 48, chapter 1 as:“(A) Agents;“(B) Broker-dealers; and“(C) Investment advisers;“(3) Persons licensed or registered under title 62 as:“(A) Accountants;“(B) Architects;“(C) Brokers, as defined in § 62-13-102 ;“(D) Engineers; and“(E) Landscape architects.“(4) Persons licensed or registered under title 63 as:“(A) Audiologists;“(B) Chiropractors;“(C) Dentists;“(D) Optometrists;“(E) Osteopathic physicians;“(F) Pharmacists;“(G) Physicians;“(H) Podiatrists;“(I) Psychologists;“(J) Speech pathologists; and“(K) Veterinarians;“(5) Persons licensed as attorneys by the supreme court of Tennessee;“(6) Persons registered as athlete agents pursuant to title 49, chapter 7, part 21; and“(7) [Deleted by 2014 amendment, effective June 1, 2016.]“(b) The tax levied by this section does not apply to any accountant, engineer, architect, landscape architect, or real estate broker who presents to the appropriate board a certified affidavit attesting to such person's inactive status in the practice of such profession.“(c) The tax levied by this section does not apply to any pharmacist who presents to the Tennessee board of pharmacy a certified affidavit attesting to such person's inactive status in the practice of such profession.” Effective Dates. Acts 2014, ch. 760, § 5. April 24, 2014 (sections 1 and 2); June 30, 2016 (sections 3 and 4). Acts 2019, ch. 478, § 2. May 24, 2019. Attorney General Opinions. Because judges maintain active law licenses, they are subject to the professional privilege tax, OAG 03-081 (6/24/03). The Professional Privilege Tax levied does not violate the due process or equal protection provisions of the United States or Tennessee constitutions by including within the tax's scope audiologists and speech pathologists while excluding more highly paid healthcare professionals, OAG 04-154 (10/11/04).