Retail Accountability Program
October 2024
Authors: Matthew Veach and Lance Iverson
In 2012, the Tennessee General Assembly created Tennessee’s Retail Accountability Program (RAP) to improve sales tax compliance among retailers and wholesalers of certain products. The Tennessee Department of Revenue (TDOR) administers RAP.
RAP was initially limited to beer and tobacco products. In 2015, legislation expanded the program to include items such as nonalcoholic beverages (e.g., bottled fruit juice, bottled water), soft drinks, candy, and certain nonperishable foods, such as chips. Following the program’s expansion, a legislative sunset was introduced for all items other than beer and tobacco. Originally set for 2019, the sunset was extended by the General Assembly to 2022, and then again to 2025.
A 2022 law requires the Comptroller of the Treasury to “determine the effectiveness and efficiency of the program.” This report fulfills that requirement by explaining how the program works, examining its financial impact, and presenting feedback from the business community about the program. The report also includes six conclusions and one policy option.
Authors: Matthew Veach and Lance Iverson
This publication provides a legislative history and overview of RAP. The Comptroller’s Office will also publish an efficiency and effectiveness review of the program as required by state law. The review is due by November 1, 2024.