Local Taxes & Fees in Memphis, TN

If you live in Memphis or are thinking about moving there, local taxes & fees are one of those things you probably won't think about until they affect you directly. Memphis has 2 specific rules on the books covering different aspects of local taxes & fees, and some of them might surprise you.

Business Tax Classification

Memphis does not run its own business-tax classification system: it adopts Tennessee's Business Tax Act by reference and layers on two local rate carve-outs for contractors. The city treasurer, as collector of licenses and privileges, applies the state's classification schedule, with a local minimum cut to $15.00 per year for contractors.

Key details: Governing act: T.C.A. § 67-5801 et seq. (Business Tax Act). Local rate change: Road/other contractors: $15/yr minimum. State default minimum: $400 (road) / $100 (other) reduced locally. Effective date: June 1, 1971 (Ord. No. 981). Collector: City treasurer, collector of licenses & privileges.

The code does not spell out a separate local penalty for misclassification or nonpayment. Because Memphis levies the tax 'in the manner prescribed by' the state Business Tax Act, delinquent business tax is pursued under the Act's own collection and penalty framework (T.C.A. § 67-5801 et seq.), with the city treasurer as collector of licenses and privileges responsible for enforcement, license issuance, and recordkeeping under Section 5-12-1.

If you are coming from a city with tighter rules, you will find Memphis gives residents more flexibility on business tax classification.

Vacancy Tax

Memphis doesn't levy a formal vacancy tax, but Code § 9-94-3(D) requires a $200 non-refundable annual registration fee per parcel for any single-family or condo property declared vacant, abandoned or tax-delinquent, paid by the mortgagee, on top of a separate $50-per-violation penalty for failing to register.

Key details: Registration fee: $200/year per parcel, non-refundable. Who pays: Mortgagee or agent. Trigger: Vacancy, abandonment, or tax delinquency. Deadline to register: 30 days after notice. Cure option: Pay delinquent taxes within 30 days.

Failing to register or update the registration is a violation of Article 1 punishable, under § 9-94-4(A) and (C), by an administrative fee of $50.00 per violation, assessed against the mortgagee. Where the failure is 'willful and intentional', meaning the responsible party ignored three documented notification attempts from a housing code official, the $50.00 fee is assessed daily until the property is registered, and that daily-fee amount can't be raised without a super-majority (9-vote) City Council hearing.

Compared to other cities, Memphis takes a harder line on vacancy tax. The enforcement and penalty structure reflects that.

The Bottom Line

Memphis's local taxes & fees rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Memphis is broadly strict or permissive.

These rules come from Memphis's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.