Skip to content

Tennessee Repeals Drop Shipment Rule

Tennessee Repeals Drop Shipment Rule

January 7, 2022

Tennessee Repeals Drop Shipment Rule

The Tennessee Department of Revenue has repealed its drop shipment rule, Rule 96, effective Jan. 10. This update resulted from changes ushered in by the Wayfair decision subjecting out-of-state sellers to tax more directly. The department said: “If a Tennessee supplier sells to an out-of-state dealer personal property or taxable services for resale and drop ships the goods to the out-of-state dealer’s Tennessee customer, the Tennessee supplier may accept a resale certificate issued by another state or a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes the sales tax ID number issued by the other state to make drop-shipped sales for resale without tax. Prior to the repeal of Rule 96, the Tennessee supplier had to collect Tennessee sales tax on the sales price of the product sold to the out-of-state dealer unless the out-of-state dealer provided a Tennessee resale certificate or Streamlined Sales Tax Exemption Certificate with a Tennessee sales tax ID number.” Read the full bulletin here for more information.
Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

August 26, 2025
NFIB Member Business Honored with State Resolution
Light Hill Meats was recognized for winning SBA Rural Small Business of the…
Read More
August 19, 2025
Free Webinar on Manufacturing Exemptions
The Department of Revenue will host a free webinar on manufacturing exempti…
Read More
August 15, 2025
Worried About Your Next OSHA Inspection?
Take steps to improve workplace safety and compliance.
Read More
August 13, 2025
NFIB Wisconsin Reacts to NEW July Optimism Report
NFIB Wisconsin State Director Luke Bacher reacts to Small Business Optimism…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility