We’ve been asked to help educate our community on the legal requirement for most all vendors to possess a current Tennessee Sales Tax Certificate when participating at any special event, festival or market held within the State of Tennessee. This has been an existing law for a very long time, and we’re sure that most of you are in full compliance with the requirement.
There are a few nuances about the information published on the State of Tennessee website which often is misinterpreted, or even unclear at times. The point of this announcement is to help you to understand the meaning as interpreted by the state, and to make adjustments as needed.
TLDR: we will begin collecting copies of your sales tax certificates for your compliance records within our system.
Who needs a Tennessee Sales Tax Certificate?
In general, everyone who sells at a special event, festival or market anywhere in the State of Tennessee. This includes out of state sellers.
There are two broad segments of vendors who are exempt:
- Farmers and nurserymen: Qualifying agricultural products—including fresh produce—are exempt when purchased directly from the farmer or nurseryman who grew or produced them. TN DOR guidance
- Small sellers: Vendors with $4,800 or less in total annual retail sales of tangible personal property are not required to register for Tennessee sales tax. The $4,800 limit applies to the vendor’s total annual retail sales, not merely sales at our markets or a specific festival. TN DOR guidance
All others are required by Tennessee Law to possess a sales tax certificate.
Question: I read the TN DOR website, and it sales remote sellers with no physical presence in Tennessee and annual sales less than $100,000 are exempt? What gives?
Answer: when you cross the state line and setup to sell on Tennessee soil, you are considered to have a physical presence and the tax requirements apply.
We do have many vendors who want to try a new business idea, and have no idea if they will succeed or not – this is where the “under $4800” guideance is very helpful. It provides you with a test track to validate your idea, before having to pull a sales tax permit. But once you get your legs beneath you, it is your responsibility to comply with the legal requirement.
Location Filing Requirements
Even if you have a Tennessee Sales Tax Certificate for your business, the law also requires that you treat each location separately (there is a method to add a new location to your existing account within your online tax portal with the State of Tennessee). For all Chattanooga Market events, you must add a new location:
Chattanooga Market
1801 Reggie White Blvd
Chattanooga, TN 37408
Compliance Certificates and Reporting
We will begin collecting copies of your TN Sales Tax Certificates for our internal records, and providing your business information and TN Sales Tax Account to the State of Tennessee starting in 2027. This is due to some regulatory changes in the stadium district which redirects sales tax revenues towards maintenance and improvements.
Timeline:
- Food trucks and concessions: paperwork collection begins in September
- Packaged Foods & Grocery: paperwork collection begins late-October
- Artisan Goods: paperwork collection begins January, 2027
There will be more information shared when we begin the paperwork collection process; if you are sales tax exempt, we will have a mechanism for you to convey that to us for our records.
How to Proceed
If you need a sales tax permit, or want to learn more about adding a new special event location to your existing sales tax account, I’ve created a more detailed information page in our Vendor Handbook here:
This post provides general information and is not tax or legal advice. Vendors remain responsible for their own registration, collection, filing, and payment obligations. Questions about a vendor’s specific circumstances should be directed to the Tennessee Department of Revenue or a qualified tax professional.