Tennessee Code Title 67. Taxes and Licenses § 67-4-309

(1) The measure of the tax shall be ascertained by multiplying such person's gross receipts by the ratio that the period during which the person has engaged in business bears to an entire year; and

(2) Any person who first commences business on or after July 1, 1937, shall, at the conclusion of each month, report to the commissioner that person's gross receipts for such month and shall pay tax, measured by such monthly gross receipts, at the rate specified in the appropriate taxing section. This tax shall be paid not later than the tenth day of the following month. On August 1 following the date when such person entered business, the person shall pay the annual tax for the year commencing on the next prior July 1, computed according to subdivision (a)(1), but the person shall not later make monthly payments.