Why do car dealerships in Tennessee collect a business and metro/county tax and the county does not?

Posted in: car dealerships |

When you purchase a car in Tennessee from a dealership they collect a business and metro/county tax in addition to state taxes and if you purchase a car from an individual and pay taxes yourself the county only collects the state tax? Is this profit to the dealership?

No, most likely it’s a gross receipts tax levied on the dealership. Most businesses pass on gross receipts taxes to their customers although they are not specifically required to do so.

One Response to “Why do car dealerships in Tennessee collect a business and metro/county tax and the county does not?”

  1. bostonianinmo Says:

    No, most likely it’s a gross receipts tax levied on the dealership. Most businesses pass on gross receipts taxes to their customers although they are not specifically required to do so.
    References :

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