Tennessee already applies a 7% "Sales and use tax" on services. This means it taxes contract programming work done for any company located in-state, whether the contractor is resident in Tennessee or not. Even if the work is done out-of-state, if an invoice is sent to a Tennessee company, that company is expected to collect the tax and send it to Nashville. There may also be a 2% local tax in some counties, when the work is done on-site.
This tax targets all "professional services", not just programming. And they don't tax custom programming performed by a company's own employees. Yet.
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Tennessee already applies a 7% "Sales and use tax" on services. This means it taxes contract programming work done for any company located in-state, whether the contractor is resident in Tennessee or not. Even if the work is done out-of-state, if an invoice is sent to a Tennessee company, that company is expected to collect the tax and send it to Nashville. There may also be a 2% local tax in some counties, when the work is done on-site.
This tax targets all "professional services", not just programming. And they don't tax custom programming performed by a company's own employees. Yet.