Professional Car Washing: ICA Forms TN Chapter
After a carwash operator was assessed by the Tennessee Department of Revenue and subsequently faced a retroactive tax liability of more than $3.5 million, other operators rallied to discuss the issue, that the tax code, written nearly 50 years ago, did not address modern carwashes.
The group engaged Waller to find a solution.
Ultimately, "The effort led to the passing of a new bill that clarifies the language for express carwash models to not collect sales tax, provided that the customer remains in custody, control and care of the vehicle." This does not apply to full-service carwash models in which customers exit their vehicles.
To learn more about the situation, read the full article here.