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Taxes & Business Costs

 

State Taxes

Tax Rate

Sales Tax

7.0% (added to local option sales tax, so total sales tax in Sullivan Co. is 7.0% + 2.25% = 9.25%)

*Exemptions include items bought for resale and manufacturers’ exemption for materials that become a component part of the finished product, containers, labeling and packaging; and materials coming into direct contact with the product and consumed in the manufacturing process.

Property Tax

None

Corporate Excise Tax

6.5% on net income from business conducted in Tennessee

Franchise Tax

Equity Method: $0.25 per $100, or major fraction thereof, of the issued and outstanding capital stock, surplus and undivided profits; minimum $100
Book Value Method: $0.25 per $100 on book value of all real and tangible goods owned or used by the corporation in Tennessee. Same rate applies to finished goods inventory for distribution facilities, but caps at $30 million

Unemployment Compensation Tax

Varies: 0.01% to 10% of first $9,000 of wages paid to each employee in calendar year depending on quoted rate
*New employers: 2.7% other than construction, manufacturing and mining (applies for the first 4 years before moving to an experience-based rate)

 Inventory Tax

 None on finished goods inventory

Personal Income Tax

 No income tax on wages

 Hall Income Tax

Taxable dividend and interest incomes are taxed at the rate of 6%. The first $1,250 on an individual return and the first $2,500 on a joint return are not taxed. Any person 65 years of age or older having a total annual income derived from any and all sources of $26,200 or less, or $37,000 or less for joint filers are completely exempt from the tax.

 

 

Local Taxes

2014 Property Tax Rate (Residential is Taxed at 25% of Assessed Value, Commercial and Industrial are Taxed at 40% of Assessed Value).

County City School Dist./Fire Dist. Special Rates
County City SSD/Fire Total

Sullivan

    $2.3054     $2.3054

Sullivan

Bluff City

  $2.3054 $1.2800   $3.5854

Sullivan

Bristol

  $2.3054 $2.2500   $4.5554

Sullivan

Johnson City

  $2.3054 $1.6200   $3.9254

Sullivan

Kingsport

  $2.3054 $2.0700   $4.3754

 

 

Local Business License and Fees

  •  Sullivan County has no adequate facilities tax

Click on links below to see individual area's business license and fees

 

Sullivan County

Kingsport

Bristol

Johnston City

Bluff City

 

Unemployment Tax Rate

  • The Tennessee unemployment rate for new employers is 2.7% on the first $9,000 of wages.

 

Workers Compensation

Click here to read more information on Tennesee's Workers Compensation Reform

Our Community

Sullivan County, Tennessee is home to companies and attractions known around the world.  Browse our website to learn all the reasons you should join Eastman, Bell Helicopter, Domtar, Teleperformance, Home Shopping Network, Bristol Motor Speedway, and many others by locating a facility in Sullivan County!

Contacts

  This email address is being protected from spambots. You need JavaScript enabled to view it.
423.279.7681
  10368 Wallace Alley St., Suite 1, Kingsport, TN 37663
PO Box 747, Blountville, TN 37617

Keep in Touch