Tennessee Code Annotated

Tenn. Code Ann. § 67-4-405 (2026)

Gas, water and electric companies

✓ current as of May 2026

Find cases: SyfertCases citing this section JustiaTenn. Code CornellLII Search CasesGoogle Scholar

(a)
- (1) Each person engaged in the business of furnishing or distributing gas, water, or electric current, whether to a dealer, consumer, municipality or other customer shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to three percent (3%) of the gross receipts derived from intrastate business in the state.
- (2) Persons engaged in the business of manufacturing gas or of distributing manufactured gas or natural gas shall, in lieu of subsection (a), pay an amount equal to one and one-half percent (1.5%) of the gross receipts derived from intrastate business in this state, which payment shall be subject to the same provisions, restrictions and credits otherwise provided in this section.

(b) This tax does not apply to cities or other political subdivisions of the state owning and operating gas companies, water companies or power plants, nor does it apply to persons having not-for-profit status owning and operating water companies, nor does it apply to persons meeting the criteria of exempt wholesale generators or FERC certified wholesale power marketers under the Federal Power Act of 1992 (16 U.S.C. § 791a et seq.), nor does it apply to any governmental agency of the United States.

(c) It is the intention of this section to levy a tax for the privilege of engaging in intrastate commerce carried on wholly within this state and not a part of interstate commerce.

(d) There shall be credited upon the tax imposed by this section any taxes paid by the owner of such business on any gas, water or electric company businesses under the Excise Tax Law, compiled in part 20 of this chapter, and the Franchise Tax Law, compiled in part 21 of this chapter, during the calendar year in which the tax levied becomes due.

(e) Each person engaged in the business of furnishing or distributing electric current or water shall be exempt from the tax imposed by this section upon gross receipts up to the amount of five thousand dollars ($5,000), but shall be liable to the state tax upon all gross receipts in excess of five thousand dollars ($5,000).

(f) The taxes imposed in this section should be administered and collected in accordance with part 3 of this chapter.

Acts 1937, ch. 108, art. 2, § 2, Item G; 1937, ch. 192, §§ 19, 20-A; 1939, ch. 21, § 31; 1941, ch. 51, § 19; 1943, ch. 112, § 1; C. Supp. 1950, § 1248.3, Item H (Williams, § 1248.126); T.C.A. (orig. ed.), § 67-4102, Item H; Acts 1999, ch. 406, § 10; 1999, ch. 407, § 1; 2011 , ch. 404, § 1.

Notes of Decisions

Cited in 1 case, 1991–1991 · leading case: Nat'l Gas Distributors, Inc. v. State, 804 S.W.2d 66 (Tenn. 1991).

Sort: Relevance Newest Treatment

Nat'l Gas Distributors, Inc. v. State, 804 S.W.2d 66 (Tenn. 1991). · cites it 6× “Although subsection (a)(2) was not contained in the original enactment, it is virtually impossible to believe that the Legislature was not aware of the existence of propane as a separate element of natural gas at the time.”

— Tenn. Code Ann. § 67-4-405(a)(2) — 1 case

Nat'l Gas Distributors, Inc. v. State, 804 S.W.2d 66 (Tenn. 1991). “Although subsection (a)(2) was not contained in the original enactment, it is virtually impossible to believe that the Legislature was not aware of the existence of propane as a separate element of natural gas at the time.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.