According to the state, while the legislation does not introduce any new taxes, it should raise revenue and create an even playing field in Tennessee for both in-state and out-of-state businesses by updating Tennessee's tax laws to reflect the realities of the constantly growing e-commerce economy. Although new taxes are not created, the Act does expand the state's taxing authority in a number of ways that will affect both in-state and, more importantly, out-of-state companies generating revenue in Tennessee.

In adopting the Act, Tennessee joins the movement by the states to determine a taxpayer's nexus (for purposes of levying business, franchise, and excise taxes) based upon the taxpayer's economic relationship to the state.

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