Tennessee Code Title 67. Taxes and Licenses § 67-3-610

(a) No wholesaler tax deferral election under § 67-3-506 is valid unless and until the licensed wholesaler files with the department a surety bond, in a form acceptable to the department, in the amount of two hundred fifty percent (250%) of the greatest monthly taxes and fees paid by the wholesaler through all of its suppliers and importers during the immediately preceding twelve (12) months. If a wholesaler has been in business less than twelve (12) months, the amount of the bond shall be determined in reference to the average monthly tax liability for the time the wholesaler has been engaged in business. The penal amount of the bond under this section shall not be less than fifty thousand dollars ($50,000). The bond shall indemnify the department against credits allowed licensed suppliers and importers under § 67-3-507.

(b) If the required penal amount of the bond in subsection (a) exceeds two hundred thousand dollars ($200,000), the commissioner may agree to reduce the penal amount of a bond, if the commissioner determines that any potential tax liability is otherwise adequately secured or protected, or if the commissioner determines that the past good filing and payment record of the taxpayer indicate that lowering the penal amount of the bond would not result in a substantially increased risk of loss to the state. The required penal amount of the bond in subsection (a) may not, however, be reduced to an amount less than fifty thousand dollars ($50,000).