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Occupation Regulations | Business
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
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.
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
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.
the Home Occupation Application Form.
View the Home Occupancy
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
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