On May 3, 2021, the Tennessee Legislature passed Senate Bill 883 and House Bill 913, significantly changing the requirements for a customer to request a refund of sales tax paid to a Tennessee dealer. Prior to the passage of these bills, a customer who paid sales tax to a dealer in error was unable to request a refund directly from the commissioner and was required to request the refund from the dealer who collected and remitted the sales tax.
Senate Bill 883 and House Bill 913, which are effective October 1, 2021, allow a customer to file a refund claim of at least $2,500 directly with the commissioner if the customer obtains the dealer’s sales tax account number, confirms the tax amount was collected and remitted, and verifies the dealer has not claimed credit or refunded the tax amount in question. The bill further provides attestation requirements are satisfied if the customer documents two attempts in writing to get the refund directly from the dealer or obtains the required dealer information at least 90 days before the limitations period expires.
These revisions to Tenn. Code Ann. § 67-1-1802 are a welcome change to the long-standing Tennessee law that restricted recovery opportunities for Tennessee customers who paid sales tax to a dealer in error. Ryan anticipates the Tennessee Department of Revenue will release additional guidance on the necessary format of the dealer-requested information prior to the effective date. The governor will have 10 days to sign or veto the bill once transmitted to his office.
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