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What is the Central Business Improvement District fee?

Overview

You are now required to file the Central Business Improvement District fee on your TN sales and use tax return and would like to know what that is for.

Environment

Avalara Returns

Tennessee

Resolution

  • The Nashville Metropolitan Government is imposing a fee on retailers located in the Central Business Improvement District on the sales price of certain tangible personal property (TPP) and services that are also subject to Tennessee sales tax

  • Central Business Improvement District (CBID) fee is 0.25% of the sales price of the property or service sold.

  • The amounts calculated from the fee are reported and remitted on Schedule D of the sales and use tax return.

Next Steps

For more information on the Central Business Improvement District fee, please review Notice #17-02 Central Business Improvement District Fee from the Tennessee State website.