Tenn. Code Ann. 67-1-1704(d) permits the Department of Revenue to provide local governments with tax information for specific purposes, subject to certain limitations.
Pursuant to this law, the Department of Revenue may, upon written request, provide duly authorized officials of a local government with tax information “to the extent necessary to ascertain whether allocations from state levied taxes are being distributed to the correct unit of local government.”
Consistent with this legislative change initiated by the Tennessee Municipal League, which was adopted by the Tennessee General Assembly, and conversations with the Department of Revenue, the Department of Revenue will generally provide a local government with situs information for taxpayers in a zip code located either entirely or partially within the boundaries of the local government. In addition, the Department will also generally provide a local government with the situs information for taxpayers in a zip code that is adjacent to the local government’s corporate limits.
The information provided is subject to limits and may not include taxpayer’s returns, receipts, income, tax liability, tax payments, or other financial information; rather the information provided will be limited to only that necessary to determine whether allocations of state levied taxes are being distributed correctly.
Seeking Situs Information for Zip Codes Entirely or Partially Within or Adjacent to the City Limits
To obtain such situs information for a zip code entirely or partially within or adjacent to the municipality’s corporate limits, a duly authorized official of the local government must submit the request in writing to the Department of Revenue.
Such a request should include a description of the situs information that the local government wishes to obtain, including listing of zip codes seeking, and an explanation of how the information is necessary to ascertain whether allocations from state and local levied taxes are being distributed to the correct unit of local government. It is sufficient to state that such information is being sought for audit purposes.
Seeking Situs Information for Zip Codes that are Neither Within nor Adjacent to City Limits
To obtain taxpayer situs information for zip codes that are neither within nor adjacent to city limits, must the local government provide a detailed, written explanation as to why the information is necessary. The Department will evaluate such requests on a case-by-case basis.
Request for Situs Information must be sent via U.S. Mail to:
Tennessee Department of Revenue
ATTN: Rachel Hall
Financial Control Division
P.O. Box 190615
Nashville, TN 37219
OR email the request to Rachel Hall at Rachel.Hall@tn.gov
