Tenn. Code Ann. § 67-8-417 — TN Code / Title 67 / Chapter 8 / Section 67-8-417
[Not applicable to decedents who die in 2016 or after, see section 67-8-425.] Payment of tax from estate - Transfer or distribution of property
Status: in_force

(a) (1) All taxes due by an estate under this part and part 3 of this chapter shall be paid by the executor, administrator or trustee out of the funds in the executor's, administrator's or trustee's hands for distribution, and no part of the property of an estate subject to this tax shall be distributed until the tax thereon has been paid; provided, that such executor, administrator or trustee may, with the written consent of the commissioner, be authorized to sell or transfer so much of the property of the estate as may be necessary to pay the tax. (2) For the sole purpose of negotiating the sale of stocks, bonds and other registered assets, and real estate prior to the time of the payment of taxes due the state, the commissioner is authorized to waive the lien against the transferred property for taxes due by an estate pursuant to § 67-1-1403 ; however, such waiver shall not affect the lien arising in favor of the state against the estate for such taxes due. (3) Anything to the contrary notwithstanding, where a decedent's death terminates the decedent's interest in stocks, bonds or other registered assets, and/or real estate, which property was previously owned with the surviving spouse in a tenancy by the entirety or a joint tenancy with right of survivorship, the commissioner's waiver pursuant to subdivision (a)(2) is not required to permit the surviving spouse to transfer such property free of liens for taxes due by the decedent's estate under this part and part 3 of this chapter. (b) If any part of the gross estate consists of property, the value of which is includable in the gross estate by reason of § 67-8-304(10) , relating to certain property for which a marital deduction was previously allowed, the decedent's estate shall be entitled to recover from the person receiving the property the amount by which the total tax under parts 3-5 of this chapter that has been paid exceeds the total tax under parts 3-5 of this chapter that would have been payable, if the value of such property had not been included in the gross estate. (c) Subsection (b) shall not apply, if the decedent otherwise directs by will. (d) For purposes of subsections (a)-(c), penalty and/or interest attributable to such taxes shall be considered to be a part of such taxes. (e) (1) No person or persons, corporation or association, having in such person's, or its, possession or control, property of a decedent forming a part of such person's estate, or property transferred in any manner as to be subject to taxation under this part and part 3 of this chapter, shall deliver or transfer the property to representatives of the estate of the decedent, or to any other person or persons, corporation or association, or upon their order or request, unless notice of the time and place of the intended transfer or delivery be served upon the commissioner at least twenty (20) days prior thereto, nor shall any person deliver or transfer any such property without retaining a sufficient portion or amount thereof to pay any tax and interest that such property may be subject to a lien under this part and part 3 of this chapter, unless the commissioner consents in writing to such transfer. (2) The prohibitions contained in this subsection (e) shall apply to the transfer by a corporation, association or joint stock company of the shares of its capital stock or other interest in the shares, including registered bonds or other registered securities. (3) It is lawful for the commissioner to examine the property at the time of delivery or transfer. (4) Failure to serve such notice, or failure to allow such examination, or failure to retain a sufficient amount to pay the tax and interest, shall, unless the commissioner consents to the transfer, render such person or persons, corporation or association liable to the payment of the amount of the tax for which a lien is imposed upon such property by this part and part 3 of this chapter, with interest thereon and the costs of any proceeding necessary for the enforcement of same in the courts of Tennessee; provided, that the penalty provided by this subsection (e) shall not apply to any insurance company that pays the proceeds of any policy of insurance on the life of the decedent after notifying the commissioner that such payment is to be made. (5) This subsection (e) shall not apply to the delivery or transfer of property held in a safe deposit box by a bank, savings and loan association or savings bank, such delivery or transfer being subject to § 45-2-905 ; nor shall this subsection (e) apply to the delivery or transfer of property held in an account of the bank, savings and loan association or savings bank, if the bank, savings and loan association or savings bank reports to the department of revenue such delivery or transfer involving the accounts of a decedent having an aggregate value of fifty thousand dollars ($50,000) or greater, excluding accounts owned jointly with a surviving spouse. Acts 1929 (Ex. Sess.), ch. 29, § 5(1), (4); Code 1932, §§ 1288, 1291; Acts 1983, ch. 73, § 13; T.C.A. (orig. ed.), §§ 30-1631, 30-1634; Acts 1990, ch. 627, § 1; 1993, ch. 33, § 1; 1998, ch. 1085, § 2.
(a) (1) All taxes due by an estate under this part and part 3 of this chapter shall be paid by the executor, administrator or trustee out of the funds in the executor's, administrator's or trustee's hands for distribution, and no part of the property of an estate subject to this tax shall be distributed until the tax thereon has been paid; provided, that such executor, administrator or trustee may, with the written consent of the commissioner, be authorized to sell or transfer so much of the property of the estate as may be necessary to pay the tax. (2) For the sole purpose of negotiating the sale of stocks, bonds and other registered assets, and real estate prior to the time of the payment of taxes due the state, the commissioner is authorized to waive the lien against the transferred property for taxes due by an estate pursuant to § 67-1-1403 ; however, such waiver shall not affect the lien arising in favor of the state against the estate for such taxes due. (3) Anything to the contrary notwithstanding, where a decedent's death terminates the decedent's interest in stocks, bonds or other registered assets, and/or real estate, which property was previously owned with the surviving spouse in a tenancy by the entirety or a joint tenancy with right of survivorship, the commissioner's waiver pursuant to subdivision (a)(2) is not required to permit the surviving spouse to transfer such property free of liens for taxes due by the decedent's estate under this part and part 3 of this chapter.
(1) All taxes due by an estate under this part and part 3 of this chapter shall be paid by the executor, administrator or trustee out of the funds in the executor's, administrator's or trustee's hands for distribution, and no part of the property of an estate subject to this tax shall be distributed until the tax thereon has been paid; provided, that such executor, administrator or trustee may, with the written consent of the commissioner, be authorized to sell or transfer so much of the property of the estate as may be necessary to pay the tax.
(2) For the sole purpose of negotiating the sale of stocks, bonds and other registered assets, and real estate prior to the time of the payment of taxes due the state, the commissioner is authorized to waive the lien against the transferred property for taxes due by an estate pursuant to § 67-1-1403 ; however, such waiver shall not affect the lien arising in favor of the state against the estate for such taxes due.
(3) Anything to the contrary notwithstanding, where a decedent's death terminates the decedent's interest in stocks, bonds or other registered assets, and/or real estate, which property was previously owned with the surviving spouse in a tenancy by the entirety or a joint tenancy with right of survivorship, the commissioner's waiver pursuant to subdivision (a)(2) is not required to permit the surviving spouse to transfer such property free of liens for taxes due by the decedent's estate under this part and part 3 of this chapter.
(b) If any part of the gross estate consists of property, the value of which is includable in the gross estate by reason of § 67-8-304(10) , relating to certain property for which a marital deduction was previously allowed, the decedent's estate shall be entitled to recover from the person receiving the property the amount by which the total tax under parts 3-5 of this chapter that has been paid exceeds the total tax under parts 3-5 of this chapter that would have been payable, if the value of such property had not been included in the gross estate.
(c) Subsection (b) shall not apply, if the decedent otherwise directs by will.
(d) For purposes of subsections (a)-(c), penalty and/or interest attributable to such taxes shall be considered to be a part of such taxes.
(e) (1) No person or persons, corporation or association, having in such person's, or its, possession or control, property of a decedent forming a part of such person's estate, or property transferred in any manner as to be subject to taxation under this part and part 3 of this chapter, shall deliver or transfer the property to representatives of the estate of the decedent, or to any other person or persons, corporation or association, or upon their order or request, unless notice of the time and place of the intended transfer or delivery be served upon the commissioner at least twenty (20) days prior thereto, nor shall any person deliver or transfer any such property without retaining a sufficient portion or amount thereof to pay any tax and interest that such property may be subject to a lien under this part and part 3 of this chapter, unless the commissioner consents in writing to such transfer. (2) The prohibitions contained in this subsection (e) shall apply to the transfer by a corporation, association or joint stock company of the shares of its capital stock or other interest in the shares, including registered bonds or other registered securities. (3) It is lawful for the commissioner to examine the property at the time of delivery or transfer. (4) Failure to serve such notice, or failure to allow such examination, or failure to retain a sufficient amount to pay the tax and interest, shall, unless the commissioner consents to the transfer, render such person or persons, corporation or association liable to the payment of the amount of the tax for which a lien is imposed upon such property by this part and part 3 of this chapter, with interest thereon and the costs of any proceeding necessary for the enforcement of same in the courts of Tennessee; provided, that the penalty provided by this subsection (e) shall not apply to any insurance company that pays the proceeds of any policy of insurance on the life of the decedent after notifying the commissioner that such payment is to be made. (5) This subsection (e) shall not apply to the delivery or transfer of property held in a safe deposit box by a bank, savings and loan association or savings bank, such delivery or transfer being subject to § 45-2-905 ; nor shall this subsection (e) apply to the delivery or transfer of property held in an account of the bank, savings and loan association or savings bank, if the bank, savings and loan association or savings bank reports to the department of revenue such delivery or transfer involving the accounts of a decedent having an aggregate value of fifty thousand dollars ($50,000) or greater, excluding accounts owned jointly with a surviving spouse.
(1) No person or persons, corporation or association, having in such person's, or its, possession or control, property of a decedent forming a part of such person's estate, or property transferred in any manner as to be subject to taxation under this part and part 3 of this chapter, shall deliver or transfer the property to representatives of the estate of the decedent, or to any other person or persons, corporation or association, or upon their order or request, unless notice of the time and place of the intended transfer or delivery be served upon the commissioner at least twenty (20) days prior thereto, nor shall any person deliver or transfer any such property without retaining a sufficient portion or amount thereof to pay any tax and interest that such property may be subject to a lien under this part and part 3 of this chapter, unless the commissioner consents in writing to such transfer.
(2) The prohibitions contained in this subsection (e) shall apply to the transfer by a corporation, association or joint stock company of the shares of its capital stock or other interest in the shares, including registered bonds or other registered securities.
(3) It is lawful for the commissioner to examine the property at the time of delivery or transfer.
(4) Failure to serve such notice, or failure to allow such examination, or failure to retain a sufficient amount to pay the tax and interest, shall, unless the commissioner consents to the transfer, render such person or persons, corporation or association liable to the payment of the amount of the tax for which a lien is imposed upon such property by this part and part 3 of this chapter, with interest thereon and the costs of any proceeding necessary for the enforcement of same in the courts of Tennessee; provided, that the penalty provided by this subsection (e) shall not apply to any insurance company that pays the proceeds of any policy of insurance on the life of the decedent after notifying the commissioner that such payment is to be made.
(5) This subsection (e) shall not apply to the delivery or transfer of property held in a safe deposit box by a bank, savings and loan association or savings bank, such delivery or transfer being subject to § 45-2-905 ; nor shall this subsection (e) apply to the delivery or transfer of property held in an account of the bank, savings and loan association or savings bank, if the bank, savings and loan association or savings bank reports to the department of revenue such delivery or transfer involving the accounts of a decedent having an aggregate value of fifty thousand dollars ($50,000) or greater, excluding accounts owned jointly with a surviving spouse.
Acts 1929 (Ex. Sess.), ch. 29, § 5(1), (4); Code 1932, §§ 1288, 1291; Acts 1983, ch. 73, § 13; T.C.A. (orig. ed.), §§ 30-1631, 30-1634; Acts 1990, ch. 627, § 1; 1993, ch. 33, § 1; 1998, ch. 1085, § 2.
Tenn. Code Ann. § 67-6-329 — TN Code / Title 67 / Chapter 6 / Section 67-6-329
Miscellaneous exemptions
Status: in_force

(a) The sale at retail, the use, the consumption, the distribution and the storage for use or consumption in this state of the following tangible personal property is specifically exempted from the tax imposed by this chapter: (1) "Gasoline" upon which a privilege tax per gallon is paid, and not refunded; except that premixed engine fuel containing gasoline and oil, produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or any other vehicle, that is sold in containers of one gallon (1 gal.) or less, is not exempt from the tax imposed by this chapter; (2) Motor fuel taxed per gallon by chapter 3, part 2 of this title; (3) Textbooks and workbooks; (4) All sales made to the state or any county or municipality within the state; (5) Liquified gas, compressed natural gas, and hydrogen gas taxed by chapter 3, part 11 of this title; (6) [Deleted by 2023 amendment.] (7) Parking privileges sold by colleges, universities, technical institutes or state colleges of applied technology to students at those institutions; (8) Materials used for the lining or protective coating of railroad tank cars and any charges made for the installation or repair of the linings or protective coatings; (9) Chemicals and supplies used in air or water pollution control facilities for pollution control purposes; (10) Periodicals printed entirely on newsprint or bond paper and distributed no less frequently than monthly and advertising supplements or other printed matter distributed with the periodicals; (11) The sale of United States and Tennessee flags sold by a nonprofit organization; (12) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials and explosives become a component part of the finished product or are used directly in fabricating, dislodging, or sizing; (13) Materials, containers, labels, sacks, bags or bottles used for packaging tangible personal property when the property is either sold in the containers, sacks, bags or bottles directly to the consumer or when such use is incidental to the sale of the property for resale; (14) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of the business; or typesetting used in the business of printing and materials necessary for the typesetting, or typesetting, or materials necessary for typesetting provided to a business of printing to obtain the services of the business; (15) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a video programming service provider and held for sale or lease to its subscribers; (16) Utility poles, anchors, guys, and conduits; (17) Aircraft used for and owned by a person providing flight training; (18) Prepared food, as defined in § 67-6-102 , when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12). This subdivision (a)(18) shall not be interpreted to exempt a public or private school or school support group from paying sales or use taxes on the purchase price of prepared food or food and food ingredients, as defined by § 67-6-102 , purchased for resale by the school or a school support group at fund raisers, sports events and the like pursuant to § 67-6-229 , or to exempt sales from any micro market or vending machine, including micro markets and vending machines located on the premises of public or private schools, from the sales tax; (19) Copies of hospital records, as defined in § 68-11-302 , sold or otherwise provided to an attorney, agent or other authorized representative acting in a lawsuit on behalf of any hospital that has received a determination of exemption as provided in § 67-6-322(e) ; (20) OEM headquarters company vehicles; and (21) Online access to continuing education courses that meet regulatory requirements for licensed individuals and that are offered by organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3) or (c)(6) . (b) Charges for the following services are exempt from the tax imposed by this chapter: (1) Coin-operated telephone service; (2) Automatic teller machine (ATM) service. The seller of the ATM service shall be deemed the user and consumer of telecommunication services necessary to deliver the ATM service; and (3) Wire transfer or other services provided by any corporation defined as a financial institution under § 67-4-2004 . The seller of the wire transfer or other services shall be deemed the user and consumer of telecommunication services necessary to deliver the wire transfer service. (c) No provision of this section shall be construed to amend or repeal § 67-6-301 . (d) The sale at retail, use, consumption, distribution and storage for use or consumption in this state of the following specified digital goods is specifically exempted from the tax imposed by this chapter: (1) Any specified digital good, if the sale, lease, licensing and use of the equivalent in a tangible form is exempt from taxation under this chapter; and (2) Specified digital goods provided without charge for less than permanent use. Amended by 2023 Tenn. Acts, ch. 377, s 27, eff. 7/1/2024. Amended by 2024 Tenn. Acts, ch. 859,s 5, eff. 1/1/2025. Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch. 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012; Acts 1984, ch. 734, § 1; 1984, ch. 761, § 2; 1985, ch. 25, §§ 1, 5, 7; 1985, ch. 332, §§ 1, 2; 1985, ch. 352, §§ 1-3; 1986, ch. 517, § 1; 1986, ch. 565, §§ 1-3; 1987, ch. 32, § 1; 1987, ch. 255, § 1; 1987, ch. 416, § 1; 1988, ch. 561, § 1; 1989, ch. 478, § 1; 1990, ch. 856, § 1; 1990, ch. 1091, § 3; 1991, ch. 41, § 1; 1991, ch. 488, § 1; 1992, ch. 659, § 1; 1993, ch. 2, § 1; 1993, ch. 409, § 3; 1995, ch. 229, § 1; 1995, ch. 256, § 1; 1995, ch. 343, § 1; 1996, ch. 1003, § 1; 1998 , ch. 694, § 2; 2003 , ch. 357, §§ 44 - 48; 2004 , ch. 782, § 10; 2004 , ch. 959, §§ 14 - 16, 68; 2005 , ch. 311, §§ 1, 2; 2005 , ch. 499, §§ 21, 51, 70, 71; 2007 , ch. 602, §§ 51, 93, 94, 151; 2008 , ch. 1106, §§ 13, 20; 2009 , ch. 530, §§ 35, 115; 2011 , ch. 72, § 1; 2013 , ch. 473, § 26; 2014 , ch. 908, § 11; 2016 , ch. 1070, § 1; 2019 , ch. 473, § 1; 2021 , ch. 139, § 1; 2021 , ch. 289, § 3.
(a) The sale at retail, the use, the consumption, the distribution and the storage for use or consumption in this state of the following tangible personal property is specifically exempted from the tax imposed by this chapter: (1) "Gasoline" upon which a privilege tax per gallon is paid, and not refunded; except that premixed engine fuel containing gasoline and oil, produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or any other vehicle, that is sold in containers of one gallon (1 gal.) or less, is not exempt from the tax imposed by this chapter; (2) Motor fuel taxed per gallon by chapter 3, part 2 of this title; (3) Textbooks and workbooks; (4) All sales made to the state or any county or municipality within the state; (5) Liquified gas, compressed natural gas, and hydrogen gas taxed by chapter 3, part 11 of this title; (6) [Deleted by 2023 amendment.] (7) Parking privileges sold by colleges, universities, technical institutes or state colleges of applied technology to students at those institutions; (8) Materials used for the lining or protective coating of railroad tank cars and any charges made for the installation or repair of the linings or protective coatings; (9) Chemicals and supplies used in air or water pollution control facilities for pollution control purposes; (10) Periodicals printed entirely on newsprint or bond paper and distributed no less frequently than monthly and advertising supplements or other printed matter distributed with the periodicals; (11) The sale of United States and Tennessee flags sold by a nonprofit organization; (12) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials and explosives become a component part of the finished product or are used directly in fabricating, dislodging, or sizing; (13) Materials, containers, labels, sacks, bags or bottles used for packaging tangible personal property when the property is either sold in the containers, sacks, bags or bottles directly to the consumer or when such use is incidental to the sale of the property for resale; (14) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of the business; or typesetting used in the business of printing and materials necessary for the typesetting, or typesetting, or materials necessary for typesetting provided to a business of printing to obtain the services of the business; (15) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a video programming service provider and held for sale or lease to its subscribers; (16) Utility poles, anchors, guys, and conduits; (17) Aircraft used for and owned by a person providing flight training; (18) Prepared food, as defined in § 67-6-102 , when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12). This subdivision (a)(18) shall not be interpreted to exempt a public or private school or school support group from paying sales or use taxes on the purchase price of prepared food or food and food ingredients, as defined by § 67-6-102 , purchased for resale by the school or a school support group at fund raisers, sports events and the like pursuant to § 67-6-229 , or to exempt sales from any micro market or vending machine, including micro markets and vending machines located on the premises of public or private schools, from the sales tax; (19) Copies of hospital records, as defined in § 68-11-302 , sold or otherwise provided to an attorney, agent or other authorized representative acting in a lawsuit on behalf of any hospital that has received a determination of exemption as provided in § 67-6-322(e) ; (20) OEM headquarters company vehicles; and (21) Online access to continuing education courses that meet regulatory requirements for licensed individuals and that are offered by organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3) or (c)(6) .
(1) "Gasoline" upon which a privilege tax per gallon is paid, and not refunded; except that premixed engine fuel containing gasoline and oil, produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or any other vehicle, that is sold in containers of one gallon (1 gal.) or less, is not exempt from the tax imposed by this chapter;
(2) Motor fuel taxed per gallon by chapter 3, part 2 of this title;
(3) Textbooks and workbooks;
(4) All sales made to the state or any county or municipality within the state;
(5) Liquified gas, compressed natural gas, and hydrogen gas taxed by chapter 3, part 11 of this title;
(6) [Deleted by 2023 amendment.]
(7) Parking privileges sold by colleges, universities, technical institutes or state colleges of applied technology to students at those institutions;
(8) Materials used for the lining or protective coating of railroad tank cars and any charges made for the installation or repair of the linings or protective coatings;
(9) Chemicals and supplies used in air or water pollution control facilities for pollution control purposes;
(10) Periodicals printed entirely on newsprint or bond paper and distributed no less frequently than monthly and advertising supplements or other printed matter distributed with the periodicals;
(11) The sale of United States and Tennessee flags sold by a nonprofit organization;
(12) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials and explosives become a component part of the finished product or are used directly in fabricating, dislodging, or sizing;
(13) Materials, containers, labels, sacks, bags or bottles used for packaging tangible personal property when the property is either sold in the containers, sacks, bags or bottles directly to the consumer or when such use is incidental to the sale of the property for resale;
(14) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of the business; or typesetting used in the business of printing and materials necessary for the typesetting, or typesetting, or materials necessary for typesetting provided to a business of printing to obtain the services of the business;
(15) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a video programming service provider and held for sale or lease to its subscribers;
(16) Utility poles, anchors, guys, and conduits;
(17) Aircraft used for and owned by a person providing flight training;
(18) Prepared food, as defined in § 67-6-102 , when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12). This subdivision (a)(18) shall not be interpreted to exempt a public or private school or school support group from paying sales or use taxes on the purchase price of prepared food or food and food ingredients, as defined by § 67-6-102 , purchased for resale by the school or a school support group at fund raisers, sports events and the like pursuant to § 67-6-229 , or to exempt sales from any micro market or vending machine, including micro markets and vending machines located on the premises of public or private schools, from the sales tax;
(19) Copies of hospital records, as defined in § 68-11-302 , sold or otherwise provided to an attorney, agent or other authorized representative acting in a lawsuit on behalf of any hospital that has received a determination of exemption as provided in § 67-6-322(e) ;
(20) OEM headquarters company vehicles; and
(21) Online access to continuing education courses that meet regulatory requirements for licensed individuals and that are offered by organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3) or (c)(6) .
(b) Charges for the following services are exempt from the tax imposed by this chapter: (1) Coin-operated telephone service; (2) Automatic teller machine (ATM) service. The seller of the ATM service shall be deemed the user and consumer of telecommunication services necessary to deliver the ATM service; and (3) Wire transfer or other services provided by any corporation defined as a financial institution under § 67-4-2004 . The seller of the wire transfer or other services shall be deemed the user and consumer of telecommunication services necessary to deliver the wire transfer service.
(1) Coin-operated telephone service;
(2) Automatic teller machine (ATM) service. The seller of the ATM service shall be deemed the user and consumer of telecommunication services necessary to deliver the ATM service; and
(3) Wire transfer or other services provided by any corporation defined as a financial institution under § 67-4-2004 . The seller of the wire transfer or other services shall be deemed the user and consumer of telecommunication services necessary to deliver the wire transfer service.
(c) No provision of this section shall be construed to amend or repeal § 67-6-301 .
(d) The sale at retail, use, consumption, distribution and storage for use or consumption in this state of the following specified digital goods is specifically exempted from the tax imposed by this chapter: (1) Any specified digital good, if the sale, lease, licensing and use of the equivalent in a tangible form is exempt from taxation under this chapter; and (2) Specified digital goods provided without charge for less than permanent use.
(1) Any specified digital good, if the sale, lease, licensing and use of the equivalent in a tangible form is exempt from taxation under this chapter; and
(2) Specified digital goods provided without charge for less than permanent use.
Amended by 2023 Tenn. Acts, ch. 377, s 27, eff. 7/1/2024.
Amended by 2024 Tenn. Acts, ch. 859,s 5, eff. 1/1/2025.
Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch. 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012; Acts 1984, ch. 734, § 1; 1984, ch. 761, § 2; 1985, ch. 25, §§ 1, 5, 7; 1985, ch. 332, §§ 1, 2; 1985, ch. 352, §§ 1-3; 1986, ch. 517, § 1; 1986, ch. 565, §§ 1-3; 1987, ch. 32, § 1; 1987, ch. 255, § 1; 1987, ch. 416, § 1; 1988, ch. 561, § 1; 1989, ch. 478, § 1; 1990, ch. 856, § 1; 1990, ch. 1091, § 3; 1991, ch. 41, § 1; 1991, ch. 488, § 1; 1992, ch. 659, § 1; 1993, ch. 2, § 1; 1993, ch. 409, § 3; 1995, ch. 229, § 1; 1995, ch. 256, § 1; 1995, ch. 343, § 1; 1996, ch. 1003, § 1; 1998 , ch. 694, § 2; 2003 , ch. 357, §§ 44 - 48; 2004 , ch. 782, § 10; 2004 , ch. 959, §§ 14 - 16, 68; 2005 , ch. 311, §§ 1, 2; 2005 , ch. 499, §§ 21, 51, 70, 71; 2007 , ch. 602, §§ 51, 93, 94, 151; 2008 , ch. 1106, §§ 13, 20; 2009 , ch. 530, §§ 35, 115; 2011 , ch. 72, § 1; 2013 , ch. 473, § 26; 2014 , ch. 908, § 11; 2016 , ch. 1070, § 1; 2019 , ch. 473, § 1; 2021 , ch. 139, § 1; 2021 , ch. 289, § 3.
Tenn. Code Ann. § 67-8-302 — TN Code / Title 67 / Chapter 8 / Section 67-8-302
[Not applicable to decedents who die in 2016 or after, see section 67-8-318.] Classification of beneficiaries
Status: in_force

The following named beneficiaries shall be included in: (1) Class A: Husband, wife, son, daughter, lineal ancestor, lineal descendant, brother, sister, stepchild, son-in-law or daughter-in-law. For the purposes of parts 3-5 of this chapter, a person who is related to the decedent as a result of legal adoption shall be considered to have the same relationship as a natural lineal ancestor, lineal descendant, brother, sister or stepchild; and (2) Class B: Any other relative, person, association or corporation not specifically designated in Class A. Acts 1929 (Ex. Sess.), ch. 29, § 2(2); Code 1932, § 1266; Acts 1963, ch. 196; 1965, ch. 18, § 1; 1967, ch. 383, § 1; 1972, ch. 452, § 2; impl. am. Acts 1976, ch. 529, § 1; impl. am. Acts 1977, ch. 25, §§ 3-5; Acts 1978, ch. 731, § 5; 1983, ch. 73, § 4; T.C.A. (orig. ed.), § 30-1609.
The following named beneficiaries shall be included in:
(1) Class A: Husband, wife, son, daughter, lineal ancestor, lineal descendant, brother, sister, stepchild, son-in-law or daughter-in-law. For the purposes of parts 3-5 of this chapter, a person who is related to the decedent as a result of legal adoption shall be considered to have the same relationship as a natural lineal ancestor, lineal descendant, brother, sister or stepchild; and
(2) Class B: Any other relative, person, association or corporation not specifically designated in Class A.
Acts 1929 (Ex. Sess.), ch. 29, § 2(2); Code 1932, § 1266; Acts 1963, ch. 196; 1965, ch. 18, § 1; 1967, ch. 383, § 1; 1972, ch. 452, § 2; impl. am. Acts 1976, ch. 529, § 1; impl. am. Acts 1977, ch. 25, §§ 3-5; Acts 1978, ch. 731, § 5; 1983, ch. 73, § 4; T.C.A. (orig. ed.), § 30-1609.
Tenn. Code Ann. § 67-6-393 — TN Code / Title 67 / Chapter 6 / Section 67-6-393
Exemption for sales tax holiday
Status: in_force

(a) Any exemption provided by this section shall be known as a "sales tax holiday." (b) (1) There is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on the last Friday of July and 11:59 p.m. the following Sunday: (A) Clothing with a sales price of one hundred dollars ($100) or less per item; (B) School supplies with a sales price of one hundred dollars ($100) or less per item; (C) School art supplies with a sales price of one hundred dollars ($100) or less per item; and (D) Computers with a sales price of one thousand five hundred dollars ($1,500) or less per item. (2) The exemption provided by this subsection (b) does not apply to the following: (A) Computer software; (B) Clothing accessories or equipment; (C) Protective equipment; (D) Sport or recreational equipment; (E) School instructional material; (F) School computer supplies; (G) Any item for use in a trade or business; (H) The lease or rental of any item; or (I) Video game consoles. (c) Each retailer making exempt sales under this section shall report the amount of such sales to the commissioner on the retailer's sales and use tax returns. (d) The exemption provided in this section shall be subject to the following provisions: (1) Layaway Sales. A sale of eligible property under a layaway sale qualifies for exemption, if: (A) Final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period; or (B) The purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period; (2) Coupons and Discounts. A discount by the seller reduces the sales price of the property and the discounted sales price determines whether the sales price is within a sales tax holiday price threshold. A coupon that reduces the sales price is treated as a discount, if the seller is not reimbursed for the coupon amount by a third party. If a discount applies to the total amount paid by a purchaser, rather than to the sales price of a particular item, and the purchaser has purchased both eligible property and taxable property, the seller should allocate the discount based on the total sales price of the taxable property compared to the total sales price of all property sold in that same transaction; (3) Splitting of Items Normally Sold Together. Articles that are normally sold as a single unit must continue to be sold in that manner. Such articles cannot be priced separately and sold as individual items in order to obtain the exemption. For example, each shoe of a pair of shoes cannot be sold separately so that the sales price of each shoe is within a sales tax holiday price threshold; (4) Rain Checks. A rain check allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock. Eligible property that customers purchase during the exemption period with use of a rain check shall qualify for the exemption, regardless of when the rain check was issued. Issuance of a rain check during the exemption period shall not qualify eligible property for the exemption, if the property is actually purchased after the exemption period; (5) Exchanges. The procedure for an exchange regarding a sales tax holiday is as follows: (A) If a customer purchases an item of eligible property during the exemption period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due, even if the exchange is made after the exemption period; (B) If a customer purchases an item of eligible property during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item; and (C) If a customer purchases an item of eligible property before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item, if the new item is purchased during the exemption period; (6) Delivery Charges. Delivery charges, including shipping, handling and service charges, are part of the sales price of eligible property. For the purpose of determining a sales tax holiday price threshold, if all the property in a shipment qualifies as eligible property and the sales price for each item in the shipment is within the sales tax holiday price threshold, then the seller does not have to allocate the delivery, handling, or service charge to determine if the price threshold is exceeded. The shipment shall be considered a sale of eligible products. If the shipment includes eligible property and taxable property, including an eligible item with a sales price in excess of the price threshold, the seller should allocate the delivery charge by using: (A) A percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or (B) A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. The seller shall tax the percentage of the delivery charge allocated to the taxable property, but does not have to tax the percentage allocated to the eligible property; (7) Order Date and Back Orders. For the purpose of a sales tax holiday, eligible property qualifies for exemption, if: (A) The item is both delivered to and paid for by the customer during the exemption period; or (B) The customer orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an "in date" stamp on a mail order or assignment of an "order number" to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment, notwithstanding that the shipment may be delayed because of a backlog of orders, or because stock is currently unavailable to, or on back order by, the seller; (8) Returns. For a sixty-day period immediately after the sales tax holiday exemption period, when a customer returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given, unless the customer provides a receipt or invoice that shows tax was paid, or the seller has sufficient documentation to show that tax was paid on the specific item. This sixty-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that sales tax was paid on returned merchandise. The sixty-day period is not intended to change a seller's policy on the time period during which the seller will accept returns; and (9) Different Time Zones. The time zone of the seller's location determines the authorized time period for a sales tax holiday, when the purchaser is located in one time zone and a seller is located in another. (e) For purposes of subsection (d), "eligible property" means an item of a type, such as clothing, that qualifies for exemption under this section. (f) (1) Notwithstanding subsection (b), there is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on Friday, July 31, 2020, and 11:59 p.m. on Sunday, August 2, 2020: (A) Clothing with a sales price of two hundred dollars ($200) or less per item; (B) School supplies with a sales price of two hundred dollars ($200) or less per item; (C) School art supplies with a sales price of two hundred dollars ($200) or less per item; and (D) Electronic devices, including, but not limited to, computers and televisions, with a sales price of three thousand dollars ($3,000) or less per item. (2) The exemption provided by this subsection (f) does not apply to the following: (A) Computer software; (B) Clothing accessories or equipment; (C) Protective equipment; (D) Sport or recreational equipment; (E) School instructional material; (F) School computer supplies; (G) Any item for use in a trade or business; or (H) The lease or rental of any item. (g) There is exempt from the tax imposed by this chapter the retail sale of food and drink by restaurants and limited service restaurants, as defined in § 57-4-102 , if sold between 12:01 a.m. on Friday, August 7, 2020, and 11:59 p.m. on Sunday, August 9, 2020. (h) (1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021. (2) There is exempt from the tax imposed by this chapter the retail sale of prepared food, as defined in § 67-6-102 , but excluding alcoholic beverages, if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021. For purposes of this subdivision (h)(2), such prepared food qualifies for exemption if delivered or served during the exemption period and paid for by the customer either during or prior to the exemption period, notwithstanding subdivision (d)(7) to the contrary. (i) [Deleted by 2023 1st. Ex. Sess. amendment.] (j) (1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on Monday, August 1, 2022, and 11:59 p.m. on Wednesday, August 31, 2022. This subsection (j) does not exempt sales from a micro market, as defined in § 67-6-102 , or vending machine or device. (2) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on August 1, 2023, and 11:59 p.m. on October 31, 2023. This subdivision (j)(2) does not exempt sales from a micro market, as defined in § 67-6-102 , or vending machine or device. Amended by 2023EX1 Tenn. Acts, ch. 1,s 4, eff. 9/8/2023. Amended by 2023 Tenn. Acts, ch. 377, s 29, eff. 5/11/2023. Amended by 2022 Tenn. Acts, ch. 1131, s 3, eff. 7/1/2022. Amended by 2022 Tenn. Acts, ch. 1053, s 1, eff. 5/25/2022. Amended by 2021 Tenn. Acts, ch. 456, s 1, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 592, s 1, eff. 5/27/2021. Amended by 2020 Tenn. Acts, ch. 759, Secs.s 15, s 16 eff. 6/30/2020. Amended by 2016 Tenn. Acts, ch. 1048, s 1, eff. 4/28/2016. Amended by 2015 Tenn. Acts, ch. 123, s 4, eff. 4/10/2015. Acts 2005, ch. 398, § 1; 2006, ch. 1019, § 60; 2007 , ch. 534, §§ 1, 2; 2007 , ch. 602, § 101; 2008 , ch. 617, § 1.
(a) Any exemption provided by this section shall be known as a "sales tax holiday."
(b) (1) There is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on the last Friday of July and 11:59 p.m. the following Sunday: (A) Clothing with a sales price of one hundred dollars ($100) or less per item; (B) School supplies with a sales price of one hundred dollars ($100) or less per item; (C) School art supplies with a sales price of one hundred dollars ($100) or less per item; and (D) Computers with a sales price of one thousand five hundred dollars ($1,500) or less per item. (2) The exemption provided by this subsection (b) does not apply to the following: (A) Computer software; (B) Clothing accessories or equipment; (C) Protective equipment; (D) Sport or recreational equipment; (E) School instructional material; (F) School computer supplies; (G) Any item for use in a trade or business; (H) The lease or rental of any item; or (I) Video game consoles.
(1) There is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on the last Friday of July and 11:59 p.m. the following Sunday: (A) Clothing with a sales price of one hundred dollars ($100) or less per item; (B) School supplies with a sales price of one hundred dollars ($100) or less per item; (C) School art supplies with a sales price of one hundred dollars ($100) or less per item; and (D) Computers with a sales price of one thousand five hundred dollars ($1,500) or less per item.
(A) Clothing with a sales price of one hundred dollars ($100) or less per item;
(B) School supplies with a sales price of one hundred dollars ($100) or less per item;
(C) School art supplies with a sales price of one hundred dollars ($100) or less per item; and
(D) Computers with a sales price of one thousand five hundred dollars ($1,500) or less per item.
(2) The exemption provided by this subsection (b) does not apply to the following: (A) Computer software; (B) Clothing accessories or equipment; (C) Protective equipment; (D) Sport or recreational equipment; (E) School instructional material; (F) School computer supplies; (G) Any item for use in a trade or business; (H) The lease or rental of any item; or (I) Video game consoles.
(A) Computer software;
(B) Clothing accessories or equipment;
(C) Protective equipment;
(D) Sport or recreational equipment;
(E) School instructional material;
(F) School computer supplies;
(G) Any item for use in a trade or business;
(H) The lease or rental of any item; or
(I) Video game consoles.
(c) Each retailer making exempt sales under this section shall report the amount of such sales to the commissioner on the retailer's sales and use tax returns.
(d) The exemption provided in this section shall be subject to the following provisions: (1) Layaway Sales. A sale of eligible property under a layaway sale qualifies for exemption, if: (A) Final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period; or (B) The purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period; (2) Coupons and Discounts. A discount by the seller reduces the sales price of the property and the discounted sales price determines whether the sales price is within a sales tax holiday price threshold. A coupon that reduces the sales price is treated as a discount, if the seller is not reimbursed for the coupon amount by a third party. If a discount applies to the total amount paid by a purchaser, rather than to the sales price of a particular item, and the purchaser has purchased both eligible property and taxable property, the seller should allocate the discount based on the total sales price of the taxable property compared to the total sales price of all property sold in that same transaction; (3) Splitting of Items Normally Sold Together. Articles that are normally sold as a single unit must continue to be sold in that manner. Such articles cannot be priced separately and sold as individual items in order to obtain the exemption. For example, each shoe of a pair of shoes cannot be sold separately so that the sales price of each shoe is within a sales tax holiday price threshold; (4) Rain Checks. A rain check allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock. Eligible property that customers purchase during the exemption period with use of a rain check shall qualify for the exemption, regardless of when the rain check was issued. Issuance of a rain check during the exemption period shall not qualify eligible property for the exemption, if the property is actually purchased after the exemption period; (5) Exchanges. The procedure for an exchange regarding a sales tax holiday is as follows: (A) If a customer purchases an item of eligible property during the exemption period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due, even if the exchange is made after the exemption period; (B) If a customer purchases an item of eligible property during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item; and (C) If a customer purchases an item of eligible property before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item, if the new item is purchased during the exemption period; (6) Delivery Charges. Delivery charges, including shipping, handling and service charges, are part of the sales price of eligible property. For the purpose of determining a sales tax holiday price threshold, if all the property in a shipment qualifies as eligible property and the sales price for each item in the shipment is within the sales tax holiday price threshold, then the seller does not have to allocate the delivery, handling, or service charge to determine if the price threshold is exceeded. The shipment shall be considered a sale of eligible products. If the shipment includes eligible property and taxable property, including an eligible item with a sales price in excess of the price threshold, the seller should allocate the delivery charge by using: (A) A percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or (B) A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. The seller shall tax the percentage of the delivery charge allocated to the taxable property, but does not have to tax the percentage allocated to the eligible property; (7) Order Date and Back Orders. For the purpose of a sales tax holiday, eligible property qualifies for exemption, if: (A) The item is both delivered to and paid for by the customer during the exemption period; or (B) The customer orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an "in date" stamp on a mail order or assignment of an "order number" to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment, notwithstanding that the shipment may be delayed because of a backlog of orders, or because stock is currently unavailable to, or on back order by, the seller; (8) Returns. For a sixty-day period immediately after the sales tax holiday exemption period, when a customer returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given, unless the customer provides a receipt or invoice that shows tax was paid, or the seller has sufficient documentation to show that tax was paid on the specific item. This sixty-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that sales tax was paid on returned merchandise. The sixty-day period is not intended to change a seller's policy on the time period during which the seller will accept returns; and (9) Different Time Zones. The time zone of the seller's location determines the authorized time period for a sales tax holiday, when the purchaser is located in one time zone and a seller is located in another.
(1) Layaway Sales. A sale of eligible property under a layaway sale qualifies for exemption, if: (A) Final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period; or (B) The purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period;
(A) Final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period; or
(B) The purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period;
(2) Coupons and Discounts. A discount by the seller reduces the sales price of the property and the discounted sales price determines whether the sales price is within a sales tax holiday price threshold. A coupon that reduces the sales price is treated as a discount, if the seller is not reimbursed for the coupon amount by a third party. If a discount applies to the total amount paid by a purchaser, rather than to the sales price of a particular item, and the purchaser has purchased both eligible property and taxable property, the seller should allocate the discount based on the total sales price of the taxable property compared to the total sales price of all property sold in that same transaction;
(3) Splitting of Items Normally Sold Together. Articles that are normally sold as a single unit must continue to be sold in that manner. Such articles cannot be priced separately and sold as individual items in order to obtain the exemption. For example, each shoe of a pair of shoes cannot be sold separately so that the sales price of each shoe is within a sales tax holiday price threshold;
(4) Rain Checks. A rain check allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock. Eligible property that customers purchase during the exemption period with use of a rain check shall qualify for the exemption, regardless of when the rain check was issued. Issuance of a rain check during the exemption period shall not qualify eligible property for the exemption, if the property is actually purchased after the exemption period;
(5) Exchanges. The procedure for an exchange regarding a sales tax holiday is as follows: (A) If a customer purchases an item of eligible property during the exemption period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due, even if the exchange is made after the exemption period; (B) If a customer purchases an item of eligible property during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item; and (C) If a customer purchases an item of eligible property before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item, if the new item is purchased during the exemption period;
(A) If a customer purchases an item of eligible property during the exemption period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due, even if the exchange is made after the exemption period;
(B) If a customer purchases an item of eligible property during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item; and
(C) If a customer purchases an item of eligible property before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item, if the new item is purchased during the exemption period;
(6) Delivery Charges. Delivery charges, including shipping, handling and service charges, are part of the sales price of eligible property. For the purpose of determining a sales tax holiday price threshold, if all the property in a shipment qualifies as eligible property and the sales price for each item in the shipment is within the sales tax holiday price threshold, then the seller does not have to allocate the delivery, handling, or service charge to determine if the price threshold is exceeded. The shipment shall be considered a sale of eligible products. If the shipment includes eligible property and taxable property, including an eligible item with a sales price in excess of the price threshold, the seller should allocate the delivery charge by using: (A) A percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or (B) A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. The seller shall tax the percentage of the delivery charge allocated to the taxable property, but does not have to tax the percentage allocated to the eligible property;
(A) A percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or
(B) A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. The seller shall tax the percentage of the delivery charge allocated to the taxable property, but does not have to tax the percentage allocated to the eligible property;
(7) Order Date and Back Orders. For the purpose of a sales tax holiday, eligible property qualifies for exemption, if: (A) The item is both delivered to and paid for by the customer during the exemption period; or (B) The customer orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an "in date" stamp on a mail order or assignment of an "order number" to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment, notwithstanding that the shipment may be delayed because of a backlog of orders, or because stock is currently unavailable to, or on back order by, the seller;
(A) The item is both delivered to and paid for by the customer during the exemption period; or
(B) The customer orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an "in date" stamp on a mail order or assignment of an "order number" to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment, notwithstanding that the shipment may be delayed because of a backlog of orders, or because stock is currently unavailable to, or on back order by, the seller;
(8) Returns. For a sixty-day period immediately after the sales tax holiday exemption period, when a customer returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given, unless the customer provides a receipt or invoice that shows tax was paid, or the seller has sufficient documentation to show that tax was paid on the specific item. This sixty-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that sales tax was paid on returned merchandise. The sixty-day period is not intended to change a seller's policy on the time period during which the seller will accept returns; and
(9) Different Time Zones. The time zone of the seller's location determines the authorized time period for a sales tax holiday, when the purchaser is located in one time zone and a seller is located in another.
(e) For purposes of subsection (d), "eligible property" means an item of a type, such as clothing, that qualifies for exemption under this section.
(f) (1) Notwithstanding subsection (b), there is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on Friday, July 31, 2020, and 11:59 p.m. on Sunday, August 2, 2020: (A) Clothing with a sales price of two hundred dollars ($200) or less per item; (B) School supplies with a sales price of two hundred dollars ($200) or less per item; (C) School art supplies with a sales price of two hundred dollars ($200) or less per item; and (D) Electronic devices, including, but not limited to, computers and televisions, with a sales price of three thousand dollars ($3,000) or less per item. (2) The exemption provided by this subsection (f) does not apply to the following: (A) Computer software; (B) Clothing accessories or equipment; (C) Protective equipment; (D) Sport or recreational equipment; (E) School instructional material; (F) School computer supplies; (G) Any item for use in a trade or business; or (H) The lease or rental of any item.
(1) Notwithstanding subsection (b), there is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on Friday, July 31, 2020, and 11:59 p.m. on Sunday, August 2, 2020: (A) Clothing with a sales price of two hundred dollars ($200) or less per item; (B) School supplies with a sales price of two hundred dollars ($200) or less per item; (C) School art supplies with a sales price of two hundred dollars ($200) or less per item; and (D) Electronic devices, including, but not limited to, computers and televisions, with a sales price of three thousand dollars ($3,000) or less per item.
(A) Clothing with a sales price of two hundred dollars ($200) or less per item;
(B) School supplies with a sales price of two hundred dollars ($200) or less per item;
(C) School art supplies with a sales price of two hundred dollars ($200) or less per item; and
(D) Electronic devices, including, but not limited to, computers and televisions, with a sales price of three thousand dollars ($3,000) or less per item.
(2) The exemption provided by this subsection (f) does not apply to the following: (A) Computer software; (B) Clothing accessories or equipment; (C) Protective equipment; (D) Sport or recreational equipment; (E) School instructional material; (F) School computer supplies; (G) Any item for use in a trade or business; or (H) The lease or rental of any item.
(A) Computer software;
(B) Clothing accessories or equipment;
(C) Protective equipment;
(D) Sport or recreational equipment;
(E) School instructional material;
(F) School computer supplies;
(G) Any item for use in a trade or business; or
(H) The lease or rental of any item.
(g) There is exempt from the tax imposed by this chapter the retail sale of food and drink by restaurants and limited service restaurants, as defined in § 57-4-102 , if sold between 12:01 a.m. on Friday, August 7, 2020, and 11:59 p.m. on Sunday, August 9, 2020.
(h) (1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021. (2) There is exempt from the tax imposed by this chapter the retail sale of prepared food, as defined in § 67-6-102 , but excluding alcoholic beverages, if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021. For purposes of this subdivision (h)(2), such prepared food qualifies for exemption if delivered or served during the exemption period and paid for by the customer either during or prior to the exemption period, notwithstanding subdivision (d)(7) to the contrary.
(1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021.
(2) There is exempt from the tax imposed by this chapter the retail sale of prepared food, as defined in § 67-6-102 , but excluding alcoholic beverages, if sold between 12:01 a.m. on Friday, July 30, 2021, and 11:59 p.m. on Thursday, August 5, 2021. For purposes of this subdivision (h)(2), such prepared food qualifies for exemption if delivered or served during the exemption period and paid for by the customer either during or prior to the exemption period, notwithstanding subdivision (d)(7) to the contrary.
(i) [Deleted by 2023 1st. Ex. Sess. amendment.]
(j) (1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on Monday, August 1, 2022, and 11:59 p.m. on Wednesday, August 31, 2022. This subsection (j) does not exempt sales from a micro market, as defined in § 67-6-102 , or vending machine or device. (2) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on August 1, 2023, and 11:59 p.m. on October 31, 2023. This subdivision (j)(2) does not exempt sales from a micro market, as defined in § 67-6-102 , or vending machine or device.
(1) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on Monday, August 1, 2022, and 11:59 p.m. on Wednesday, August 31, 2022. This subsection (j) does not exempt sales from a micro market, as defined in § 67-6-102 , or vending machine or device.
(2) There is exempt from the tax imposed by this chapter the retail sale of food and food ingredients, as defined in § 67-6-102 , if sold between 12:01 a.m. on August 1, 2023, and 11:59 p.m. on October 31, 2023. This subdivision (j)(2) does not exempt sales from a micro market, as defined in § 67-6-102 , or vending machine or device.
Amended by 2023EX1 Tenn. Acts, ch. 1,s 4, eff. 9/8/2023.
Amended by 2023 Tenn. Acts, ch. 377, s 29, eff. 5/11/2023.
Amended by 2022 Tenn. Acts, ch. 1131, s 3, eff. 7/1/2022.
Amended by 2022 Tenn. Acts, ch. 1053, s 1, eff. 5/25/2022.
Amended by 2021 Tenn. Acts, ch. 456, s 1, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 592, s 1, eff. 5/27/2021.
Amended by 2020 Tenn. Acts, ch. 759, Secs.s 15, s 16 eff. 6/30/2020.
Amended by 2016 Tenn. Acts, ch. 1048, s 1, eff. 4/28/2016.
Amended by 2015 Tenn. Acts, ch. 123, s 4, eff. 4/10/2015.
Acts 2005, ch. 398, § 1; 2006, ch. 1019, § 60; 2007 , ch. 534, §§ 1, 2; 2007 , ch. 602, § 101; 2008 , ch. 617, § 1.