Securing a Business License

To start or expand a business in Mountain City or Johnson County an entrepreneur will require a business license.

County of Johnson County

• initial cost: $20.00 per fiscal year (Year ends each June 30)
• required if a business does $3,000 or more in receipts per year
• need the following information: name of owner(s), name of business, physical location of business, telephone number of business, date business started
• Contact:
  Danny Cullop
  County Court Clerk
  222 West Main Street
  Mountain City, TN 37683
  (423) 727-9633

City of Mountain City

• initial cost: $20.00 per fiscal year (Year ends each June 30)
• need the following information: name of owner(s), name of business, physical location of business, telephone number of business, date business started
• Contact:
  Donna Burgess
  City Hall Clerk
  210 South Church Street
  Mountain City, TN 37683
  (423) 727-8005

Note: if an entrepreneur does business in both the City and the County, a license from each is required to be filed.

When renewing the business licenses, tax rates are variable and are based on gross sales and company classification. Tax rates rnage from 1/10 of 1% for small retail stores, to 3/80 of 1% for food wholesalers.

General

Counties and municipalities are each permitted to collect a tax on the privilege of conducting a business. In addition to State law, the Commissioner of Revenue is authorized under certain conditions to establish rules and regulations with regard to the procedures to be followed for the collection of this tax.

Under the Tennessee Business Tax Act most businesses, vocations, and occupations operating within Johnson County are required to obtain a business license and report their gross receipts to the County Clerk on a yearly basis.

When a business closes it is necessary to file a final return within 15 days. Anyone purchasing a business should be certain final returns have been filed by the previous owner, or the new owner can be held liable for any tax due.

After a business is licensed a gross receipts report must be filed annually and the appropriate tax paid. Businesses failing to report their gross or to obtain a license are subject to a distress warrant which may be issued directly by the Clerk's office.

Exempt Businesses

Businesses that gross less than $3,000 a year are exempt. Also the following businesses are exempt regardless of their gross: manufacturers, doctors, dentists, veterinarians, attorneys, accountants, schools, religious organizations, insurance agents, loan companies, security exchanges, or public utilities.