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Termination of Business License

Tennessee Code Annotated 67-4-721 states the following with regard to termination of a business:

• If any person liable for any tax, penalty or interest levied hereunder shall sell out the person's business or stock of goods, or shall quit the business, the person shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business.

• The person's successor, successors, or assigns, if any, shall withhold sufficient of the purchase money to cover the amount of such taxes, interest and penalties due and unpaid until such former owner shall produce a receipt from the County Clerk in the case of counties, and proper city collector in the case of cities, showing that they have been paid, or a certificate stating that no taxes, interest or penalties are due.

• If the purchaser of a business or stock of goods shall fail to withhold the purchase money as above provided, the purchaser shall be personally liable for the payment of the taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners, or assigns.

• Nothing in this section shall apply to any licensee transferring a business from one location to another, within the same municipality, on a one-time basis during any annual taxable period.

• In this event a licensee shall notify the local tax collector at least five (5) days prior to the last day of business at the old location, submitting information and payment of a five dollar ($7.00) recording fee for the new location.

• Succeeding transfers by the same licensee, within the same annual taxable period, shall be subject to a final return and payment within fifteen (15) days, plus a new minimum business license and recording fee for the new location.

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