Finance Department
Starting a Business in Red Bank | Home Occupation Regulations | Business Tax Report

The Finance Division collects, accounts for and disburses City funds under the direction of the City Manager and City Commission. This Division Head is also responsible for gathering and organizing accounting information, reporting financial information and making recommendations.

Finance also produces, under the direction of the City Manager, the annual budget document and the audited Comprehensive Annual Financial Report. Other duties include accounts payable, employee payroll and business license tax collection and maintenance.

For a complete copy of the comprehensive Annual Financial Report or the Budget, go to the Documents tab on this page and select Financial Services. They are available to down load there.

If you have any questions about either of these reports or need additional financial information, contact Carolyn Lewis, Director of Finance at 423/ 877-1103.

STARTING A BUSINESS IN RED BANK
To conduct business in the City of Red Bank, all businesses must obtain a local municipal business tax license issued by the Finance Department. Please contact Brenda Jones,Business License Clerk at 423/ 877-1103 extension # 1061.

Obtain a Business License Tax Application Form. Print out the form and submit along with the $20.00 fee. This is payable in cash, check or money order. To avoid penalty and interest, the application should be received no later than 20 days from the opening day of the business.

Mail to: City of Red Bank
Attn: Brenda Jones
P.O. Box 15069
Chattanooga, TN 37415

or bring your application form to Red Bank City Hall, 3117 Dayton Blvd.

In addition, a Hamilton County business license will also be required. The application for the county's license can be found at www.countyclerkanytime.com.

TRANSFER OF OWNERSHIP
If you have purchased an existing business, you must transfer ownership by completing the application for for business tax license and the prior owner must terminate his license by submitting a final tax report within 15days of transfer.

Tennessee Code 67-4-721. Settlement upon termination or transfer of business states:

a. If any person liable for any tax, penalty or interest levied hereunder shall sell out the business or stock of goods, or shall quit the business, the person shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business.

b. The person's successor, successors, or assigns, if any, shall withhold sufficient of the purchase money to cover the amount of such taxes, interest and penalties due and unpaid until such former owner shall produce a receipt from the county clerk or proper city collector showing that they have been paid, or a certificate stating that no taxes, interest or penalties are due.

c. If the purchaser of a business or stock of goods shall fail to withhold the purchase money as above provided, the purchaser shall be personally liable for the payment of the taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners or assigns.

 

HOME OFFICE REGULATIONS
The standards for home occupations are intended to ensure compatibility with the residential character of the neighborhood. No home occupation shall be permitted that might interfere with the general welfare of the surrounding area due to potential noise, increased pedestrian or vehicular traffic, or any other condition which would constitute an objectionable, incompatible use of residential property.

A Home Occupation Application is required as well as a city and county business license. This application fee is $50.00 and is payable in cash, check or money order in the office of Finance. The application itself is maintained by the Codes Department of the Public Works Division. The department head will approve or disapprove the application and send letters to surrounding neighbors to make them aware of the business operations in the neighborhood and to make available to them the opportunity to come before the City Commissioners for any discussion regarding the business.

View the Home Occupation Application Form.

View the Home Occupancy City Ordinance.

BUSINESS TAX REPORT
Every business is required by the State of Tennessee to file a business tax report. This is a gross receipts tax and is payable annually. Filing dates vary according to the class of business. Business Tax is collected and imposed by the local governments and not by the Tennessee Department of Revenue. The business tax has two parts: an annual license fee for $15 plus a recording fee and a tax on gross sales. The tax rate is applied to the gross sales of the business.

Who is Liable?
Business tax is a privilege tax imposed upon all businesses which sell tangible personal property either wholesale of retail and businesses which render services, except those specifically exempted by law. Generally, all for-profit businesses must pay the local business tax to the county and the municipality which have imposed the tax..

Who is Exempt?
Sales of manufactured goods from a location subject to the ad valorem tax and services furnished by professionals such as doctors, attorneys, accountants, architects and insurance agents are exempt. Services performed by religious charitable , educational and non-profit organization are exempt; however, receipts derived from sales of food, beverages or other tangible personal property by non-profit entities are subject to the business tax. A few business types may be exempt totally or in part from the business tax because of their liability for certain other privilege taxes. These include soft drink bottlers, gas, electric and water companies, movie theatres. Other kinds of businesses which are exempt include:

1. Businesses with less than $3000 a year in sales.

2. Operators of camps and trailer parks where only real property is rented.

3. Farmers selling farm products directly from their farms.

For a copy of the business tax report click here or go to www.countyclerkanytime.com for a county tax report which has a link to all city tax reports.