Tennessee DOR Announces Sales Tax on International Money Transmission Services Effective Jan. 1, 2027

The Tennessee Department of Revenue (DOR) issued a notice, announcing that Public Chapter 1035 (2026), effective Jan. 1, 2027, imposes sales tax on the service of transmitting money from a location originating in Tennessee to a location outside the United States or its territories. The tax applies only to entities licensed under the Tennessee Money Transmission Modernization Act. The tax rate is $10 per transaction, plus an additional 2 percent on the amount transmitted in excess of $500 (e.g., a $1,500 transfer results in $30 total tax). The tax does not apply to the local option sales tax. Sourcing rules ...