Tenn. Code Ann. § 67-4-2018 — TN Code / Title 67 / Chapter 4 / Section 67-4-2018
Criteria for job tax credit
Status: in_force

(a) This section shall apply to any person who meets all of the following criteria, notwithstanding any other law to the contrary: (1) The person was formed as a business entity after December 31, 1995; (2) The person was not subject to Tennessee franchise or excise taxes prior to the date chapter 406 of the Public Acts of 1999 became applicable to it; and (3) Had the person been subject to franchise taxes, it could have, under former § 67-4-908(c) prior to its repeal by chapter 406, qualified for the job tax credit and any carryover thereof for the calendar tax years 1997 and 1998. (b) Any person who meets the criteria set forth in subdivisions (a)(1)-(3) shall be entitled to: (1) In accordance with the provisions and limitations of former § 67-4-908(c) prior to its repeal, compute any job tax credit that it would have been entitled to for the calendar tax years 1997 and 1998, had it been subject to the Tennessee franchise tax for those tax years; (2) Apply the job tax credit computed under subdivision (b)(1) to the franchise tax that it would have had in that tax year, had it been subject to such tax, and apply any remaining unused carryover thereof to the franchise tax that it had, or would have had, if it had been subject to the franchise tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated; (3) In accordance with the provisions and limitations of former § 67-4-808(5) prior to its repeal, compute any industrial machinery excise tax credit that it would have had for the calendar tax years 1997 and 1998, had it been subject to the Tennessee excise tax for those tax years; (4) Apply the industrial machinery excise tax credit computed under subdivision (3) to the excise tax that it would have had, if it had been subject to the excise tax in that tax year, and apply any remaining unused carryover thereof to the excise tax that it had, or that it would have had, if it had it been subject to such tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated. The recapture provisions of former § 67-4-808(4)(D) prior to its repeal shall apply, if any of the industrial machinery purchased in 1997 or 1998 is sold or removed from Tennessee before the expiration of its useful life as established according to the depreciation guidelines in effect for excise tax purposes; (5) In accordance with the provisions and limitations of former § 67-4-805(b)(2)(C) prior to its repeal, compute any net operating loss carryover that it would have had for the calendar tax years 1997 and 1998 had it been subject to Tennessee excise tax for those tax years; and (6) Apply any net operating loss carryover computed under subdivision (b)(5) to any Tennessee net earnings subject to Tennessee excise tax, or that would have been subject to excise tax had the person been liable to pay such a tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the loss originated. Acts 2000, ch. 982, § 26.
(a) This section shall apply to any person who meets all of the following criteria, notwithstanding any other law to the contrary: (1) The person was formed as a business entity after December 31, 1995; (2) The person was not subject to Tennessee franchise or excise taxes prior to the date chapter 406 of the Public Acts of 1999 became applicable to it; and (3) Had the person been subject to franchise taxes, it could have, under former § 67-4-908(c) prior to its repeal by chapter 406, qualified for the job tax credit and any carryover thereof for the calendar tax years 1997 and 1998.
(1) The person was formed as a business entity after December 31, 1995;
(2) The person was not subject to Tennessee franchise or excise taxes prior to the date chapter 406 of the Public Acts of 1999 became applicable to it; and
(3) Had the person been subject to franchise taxes, it could have, under former § 67-4-908(c) prior to its repeal by chapter 406, qualified for the job tax credit and any carryover thereof for the calendar tax years 1997 and 1998.
(b) Any person who meets the criteria set forth in subdivisions (a)(1)-(3) shall be entitled to: (1) In accordance with the provisions and limitations of former § 67-4-908(c) prior to its repeal, compute any job tax credit that it would have been entitled to for the calendar tax years 1997 and 1998, had it been subject to the Tennessee franchise tax for those tax years; (2) Apply the job tax credit computed under subdivision (b)(1) to the franchise tax that it would have had in that tax year, had it been subject to such tax, and apply any remaining unused carryover thereof to the franchise tax that it had, or would have had, if it had been subject to the franchise tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated; (3) In accordance with the provisions and limitations of former § 67-4-808(5) prior to its repeal, compute any industrial machinery excise tax credit that it would have had for the calendar tax years 1997 and 1998, had it been subject to the Tennessee excise tax for those tax years; (4) Apply the industrial machinery excise tax credit computed under subdivision (3) to the excise tax that it would have had, if it had been subject to the excise tax in that tax year, and apply any remaining unused carryover thereof to the excise tax that it had, or that it would have had, if it had it been subject to such tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated. The recapture provisions of former § 67-4-808(4)(D) prior to its repeal shall apply, if any of the industrial machinery purchased in 1997 or 1998 is sold or removed from Tennessee before the expiration of its useful life as established according to the depreciation guidelines in effect for excise tax purposes; (5) In accordance with the provisions and limitations of former § 67-4-805(b)(2)(C) prior to its repeal, compute any net operating loss carryover that it would have had for the calendar tax years 1997 and 1998 had it been subject to Tennessee excise tax for those tax years; and (6) Apply any net operating loss carryover computed under subdivision (b)(5) to any Tennessee net earnings subject to Tennessee excise tax, or that would have been subject to excise tax had the person been liable to pay such a tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the loss originated.
(1) In accordance with the provisions and limitations of former § 67-4-908(c) prior to its repeal, compute any job tax credit that it would have been entitled to for the calendar tax years 1997 and 1998, had it been subject to the Tennessee franchise tax for those tax years;
(2) Apply the job tax credit computed under subdivision (b)(1) to the franchise tax that it would have had in that tax year, had it been subject to such tax, and apply any remaining unused carryover thereof to the franchise tax that it had, or would have had, if it had been subject to the franchise tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated;
(3) In accordance with the provisions and limitations of former § 67-4-808(5) prior to its repeal, compute any industrial machinery excise tax credit that it would have had for the calendar tax years 1997 and 1998, had it been subject to the Tennessee excise tax for those tax years;
(4) Apply the industrial machinery excise tax credit computed under subdivision (3) to the excise tax that it would have had, if it had been subject to the excise tax in that tax year, and apply any remaining unused carryover thereof to the excise tax that it had, or that it would have had, if it had it been subject to such tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated. The recapture provisions of former § 67-4-808(4)(D) prior to its repeal shall apply, if any of the industrial machinery purchased in 1997 or 1998 is sold or removed from Tennessee before the expiration of its useful life as established according to the depreciation guidelines in effect for excise tax purposes;
(5) In accordance with the provisions and limitations of former § 67-4-805(b)(2)(C) prior to its repeal, compute any net operating loss carryover that it would have had for the calendar tax years 1997 and 1998 had it been subject to Tennessee excise tax for those tax years; and
(6) Apply any net operating loss carryover computed under subdivision (b)(5) to any Tennessee net earnings subject to Tennessee excise tax, or that would have been subject to excise tax had the person been liable to pay such a tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the loss originated.
Acts 2000, ch. 982, § 26.
Tenn. Code Ann. § 67-5-2012 — TN Code / Title 67 / Chapter 5 / Section 67-5-2012
Election to sell tax receivables
Status: in_force

(a) As used in this section, unless the context otherwise requires: (1) "Tax collector" means, in the case a taxing agency that is a county or for which a county acts as its tax collector, the county trustee; and, in the case of a taxing agency that is a governmental entity that, under existing laws, collects its own taxes, assessments, or other charges secured by real property, the officer of the taxing agency responsible for collecting the taxes or charges; (2) "Tax receivable" means the right to receive revenue from a tax, assessment, or other charge secured by a lien on real property that has become delinquent in whole or in part, including all penalties and interest on the taxes, assessments, or other charges accrued pursuant to law; and (3) "Taxing agency" means: (A) Any county having a population of not less than three hundred eighty thousand (380,000), according to the 2000 federal census or any subsequent federal census; or (B) Any city, town, taxing district, municipal corporation, political subdivision or any other state or local governmental entity that is authorized to assess taxes on real property that is wholly or partially within a county described in subdivision (a)(3)(A). (b) Any taxing agency, by resolution of its governing body, may elect to sell its tax receivables to public or private parties. In the case of a taxing agency that is a county or for which a county acts as its tax collector, prior to the governing body electing to sell its tax receivables, the county trustee must certify to the governing body the trustee's consent to administer the program; provided, however, that upon a two-thirds (2/3) vote of the legislative body of the taxing agency, this certification shall not be necessary. All interest and penalties imposed by law shall continue to accrue on the unpaid original amount of the tax in the same manner as if the tax receivables had not been sold. Sales of tax receivables may be by individual parcel or in bulk. The taxing agency may establish such criteria for eligible purchasers of tax receivables and may make such sales pursuant to negotiated sale for such prices as the taxing agency determines to be in the best interest of the taxing agency. (c) A taxing agency may enter into purchase and sale agreements for the sale of tax receivables, which purchase and sale agreements may, consistent with this section, contain such terms, covenants, representations and warranties as, in the judgment of the taxing agency, shall be necessary or desirable. The agreement may require the taxing agency to repurchase a tax receivable, or to substitute another tax receivable of equivalent value, for prices and under conditions specified in the agreement. In the case of a taxing agency for which the applicable county trustee acts as tax collector, upon the execution of a purchase and sale agreement for the sale of tax receivables by the appropriate officer of the taxing agency, a taxing agency may enter into an agreement with the county trustee to act as the taxing agency's agent in connection with the administration of the purchase and sale agreements and of the related tax receivables. (d) The order of priority of the application of collections of tax receivables with respect to a particular property shall not be changed by reason of the sale of all or a portion of the tax receivables. All amounts collected on account of the tax receivables shall be promptly paid by the taxing agency to the holder of the tax receivable; provided, however, that the taxing agency shall have the right to retain all amounts that are charged and collected as trustee's fees, attorney's fees and costs of collection or that are otherwise collected in excess of the amount due on the tax receivables sold. (e) Unless provided otherwise in the purchase and sale agreement with respect to tax receivables sold: (1) The amount bid in a tax sale on behalf of the governmental entities for which the taxes are owing shall include the amount of all tax receivables sold, including the costs incident to the collection thereof; (2) In the event that the property is acquired by a governmental entity in a tax sale and is not redeemed by the end of the redemption period, then the governmental entity shall promptly offer the property for sale to private purchasers by appropriate means and shall make diligent efforts to sell the property at its reasonable market value, unless the governmental entity pays to the purchasers of the tax receivables the full amount of the tax receivables then due and unpaid; (3) After a tax sale to a governmental entity, interest pursuant to § 67-5-2010(a)(1) shall continue to accrue on any tax receivables sold until paid in full; however, under no circumstances shall the cost of redemption be greater than if the receivable had not been sold; and (4) If a governmental entity chooses to discharge, reduce, delay or otherwise compromise the payment of any tax receivables that have been sold, then the discharge, reduction, delay or compromise shall not be effective unless the government entity first pays to the purchaser of the tax receivables the amount of the tax receivable payments that have been discharged, reduced, delayed or otherwise compromised. (f) Tax receivables and the penalties and interest accrued on the tax receivables shall be exempt from taxation by any governmental entity. The real property affected by any tax receivable shall not be exempt from taxation by reason of this section. (g) It shall be the duty of the tax collector and all other state, county and municipal officers to continue to enforce the collection of tax receivables that have been sold pursuant to this section, in the same manner as if the tax receivables had not been sold. Nothing in this subsection (g) shall be construed to require of the tax collector or its officers, employees, agents or attorneys a standard of performance of their statutory or contractual duties in the collection of a tax receivable that is different from the standard of performance otherwise required of those persons. Amended by 2017 Tenn. Acts, ch. 299, s 5, eff. 7/1/2017. Acts 2006, ch. 881, § 1; 2007 , ch. 58, §§ 1, 2.
(a) As used in this section, unless the context otherwise requires: (1) "Tax collector" means, in the case a taxing agency that is a county or for which a county acts as its tax collector, the county trustee; and, in the case of a taxing agency that is a governmental entity that, under existing laws, collects its own taxes, assessments, or other charges secured by real property, the officer of the taxing agency responsible for collecting the taxes or charges; (2) "Tax receivable" means the right to receive revenue from a tax, assessment, or other charge secured by a lien on real property that has become delinquent in whole or in part, including all penalties and interest on the taxes, assessments, or other charges accrued pursuant to law; and (3) "Taxing agency" means: (A) Any county having a population of not less than three hundred eighty thousand (380,000), according to the 2000 federal census or any subsequent federal census; or (B) Any city, town, taxing district, municipal corporation, political subdivision or any other state or local governmental entity that is authorized to assess taxes on real property that is wholly or partially within a county described in subdivision (a)(3)(A).
(1) "Tax collector" means, in the case a taxing agency that is a county or for which a county acts as its tax collector, the county trustee; and, in the case of a taxing agency that is a governmental entity that, under existing laws, collects its own taxes, assessments, or other charges secured by real property, the officer of the taxing agency responsible for collecting the taxes or charges;
(2) "Tax receivable" means the right to receive revenue from a tax, assessment, or other charge secured by a lien on real property that has become delinquent in whole or in part, including all penalties and interest on the taxes, assessments, or other charges accrued pursuant to law; and
(3) "Taxing agency" means: (A) Any county having a population of not less than three hundred eighty thousand (380,000), according to the 2000 federal census or any subsequent federal census; or (B) Any city, town, taxing district, municipal corporation, political subdivision or any other state or local governmental entity that is authorized to assess taxes on real property that is wholly or partially within a county described in subdivision (a)(3)(A).
(A) Any county having a population of not less than three hundred eighty thousand (380,000), according to the 2000 federal census or any subsequent federal census; or
(B) Any city, town, taxing district, municipal corporation, political subdivision or any other state or local governmental entity that is authorized to assess taxes on real property that is wholly or partially within a county described in subdivision (a)(3)(A).
(b) Any taxing agency, by resolution of its governing body, may elect to sell its tax receivables to public or private parties. In the case of a taxing agency that is a county or for which a county acts as its tax collector, prior to the governing body electing to sell its tax receivables, the county trustee must certify to the governing body the trustee's consent to administer the program; provided, however, that upon a two-thirds (2/3) vote of the legislative body of the taxing agency, this certification shall not be necessary. All interest and penalties imposed by law shall continue to accrue on the unpaid original amount of the tax in the same manner as if the tax receivables had not been sold. Sales of tax receivables may be by individual parcel or in bulk. The taxing agency may establish such criteria for eligible purchasers of tax receivables and may make such sales pursuant to negotiated sale for such prices as the taxing agency determines to be in the best interest of the taxing agency.
(c) A taxing agency may enter into purchase and sale agreements for the sale of tax receivables, which purchase and sale agreements may, consistent with this section, contain such terms, covenants, representations and warranties as, in the judgment of the taxing agency, shall be necessary or desirable. The agreement may require the taxing agency to repurchase a tax receivable, or to substitute another tax receivable of equivalent value, for prices and under conditions specified in the agreement. In the case of a taxing agency for which the applicable county trustee acts as tax collector, upon the execution of a purchase and sale agreement for the sale of tax receivables by the appropriate officer of the taxing agency, a taxing agency may enter into an agreement with the county trustee to act as the taxing agency's agent in connection with the administration of the purchase and sale agreements and of the related tax receivables.
(d) The order of priority of the application of collections of tax receivables with respect to a particular property shall not be changed by reason of the sale of all or a portion of the tax receivables. All amounts collected on account of the tax receivables shall be promptly paid by the taxing agency to the holder of the tax receivable; provided, however, that the taxing agency shall have the right to retain all amounts that are charged and collected as trustee's fees, attorney's fees and costs of collection or that are otherwise collected in excess of the amount due on the tax receivables sold.
(e) Unless provided otherwise in the purchase and sale agreement with respect to tax receivables sold: (1) The amount bid in a tax sale on behalf of the governmental entities for which the taxes are owing shall include the amount of all tax receivables sold, including the costs incident to the collection thereof; (2) In the event that the property is acquired by a governmental entity in a tax sale and is not redeemed by the end of the redemption period, then the governmental entity shall promptly offer the property for sale to private purchasers by appropriate means and shall make diligent efforts to sell the property at its reasonable market value, unless the governmental entity pays to the purchasers of the tax receivables the full amount of the tax receivables then due and unpaid; (3) After a tax sale to a governmental entity, interest pursuant to § 67-5-2010(a)(1) shall continue to accrue on any tax receivables sold until paid in full; however, under no circumstances shall the cost of redemption be greater than if the receivable had not been sold; and (4) If a governmental entity chooses to discharge, reduce, delay or otherwise compromise the payment of any tax receivables that have been sold, then the discharge, reduction, delay or compromise shall not be effective unless the government entity first pays to the purchaser of the tax receivables the amount of the tax receivable payments that have been discharged, reduced, delayed or otherwise compromised.
(1) The amount bid in a tax sale on behalf of the governmental entities for which the taxes are owing shall include the amount of all tax receivables sold, including the costs incident to the collection thereof;
(2) In the event that the property is acquired by a governmental entity in a tax sale and is not redeemed by the end of the redemption period, then the governmental entity shall promptly offer the property for sale to private purchasers by appropriate means and shall make diligent efforts to sell the property at its reasonable market value, unless the governmental entity pays to the purchasers of the tax receivables the full amount of the tax receivables then due and unpaid;
(3) After a tax sale to a governmental entity, interest pursuant to § 67-5-2010(a)(1) shall continue to accrue on any tax receivables sold until paid in full; however, under no circumstances shall the cost of redemption be greater than if the receivable had not been sold; and
(4) If a governmental entity chooses to discharge, reduce, delay or otherwise compromise the payment of any tax receivables that have been sold, then the discharge, reduction, delay or compromise shall not be effective unless the government entity first pays to the purchaser of the tax receivables the amount of the tax receivable payments that have been discharged, reduced, delayed or otherwise compromised.
(f) Tax receivables and the penalties and interest accrued on the tax receivables shall be exempt from taxation by any governmental entity. The real property affected by any tax receivable shall not be exempt from taxation by reason of this section.
(g) It shall be the duty of the tax collector and all other state, county and municipal officers to continue to enforce the collection of tax receivables that have been sold pursuant to this section, in the same manner as if the tax receivables had not been sold. Nothing in this subsection (g) shall be construed to require of the tax collector or its officers, employees, agents or attorneys a standard of performance of their statutory or contractual duties in the collection of a tax receivable that is different from the standard of performance otherwise required of those persons.
Amended by 2017 Tenn. Acts, ch. 299, s 5, eff. 7/1/2017.
Acts 2006, ch. 881, § 1; 2007 , ch. 58, §§ 1, 2.
Tenn. Code Ann. § 67-2-125 — TN Code / Title 67 / Chapter 2 / Section 67-2-125
Angel investor tax credit
Status: in_force

(a) (1) For tax years beginning January 1, 2017, and thereafter, there shall be allowed a credit of thirty-three percent (33%) of the value of a direct or indirect cash investment by an angel investor against the liability of such angel investor under this chapter in the tax year in which the investment was made. All credits allowed under this subsection (a) are nonrefundable and nontransferable. Any unused credit allowed under this subsection (a) may be carried forward for five (5) years after the tax year in which the credit originated. (2) For purposes of this section, "angel investor" means a natural person who: (A) Is an accredited investor as defined in 17 CFR 230.501(a)(5) or (a)(6) ; and (B) Invests in a company that, at the time of the investment: (i) Is an innovative small business with high-growth potential, including, but not limited to, tech-enabled startups and companies in the fields of consumer products, medical devices, life science, or additive manufacturing; or is a company that has received small business innovation research/small business technology transfer (SBIR/STTR) funding; or is commercializing technology developed at a research institution within this state; (ii) Is not a professional service firm and is not primarily engaged in the provision of goods or services within the following industries: construction, leisure, hospitality, retail, real estate, insurance, banking, lobbying, consulting, alcohol, or gambling; (iii) Has been in business for five (5) or fewer years; (iv) Has, based on the prior fiscal year, three million dollars ($3,000,000) or less in gross annual revenue; and (v) Has fifty (50) or fewer full-time employees, as defined in § 67-4-2109(f)(1)(A) , and at least sixty percent (60%) of those employees perform the majority of their job duties within this state. (3) The credit allowed under this subsection (a) shall be limited to fifty thousand dollars ($50,000) per angel investor in any tax year. (4) For tax years beginning in 2017, a maximum of three million dollars ($3,000,000) in tax credits may be allowed under this subsection (a). For tax years beginning in 2018, a maximum of four million dollars ($4,000,000) of credits may be allowed under this subsection (a). For tax years beginning January 1, 2019, and thereafter, a maximum of five million dollars ($5,000,000) of credits may be allowed under this subsection (a). (5) (A) A credit may be allowed under this subsection (a) only if the investment is at least fifteen thousand dollars ($15,000) and represents no more than forty percent (40%) of the capitalization of the company at the time of the investment. (B) Within sixty (60) days of the date of the investment, the angel investor shall apply to the Tennessee technology development corporation, in a manner to be determined by the Tennessee technology development corporation, for a certificate of qualification under this section. The angel investor shall affirm that all requirements for qualification under subdivision (a)(2) have been met, and shall provide proof of the investment in a form to be determined by the Tennessee technology development corporation. Certificates of qualification shall be issued by the Tennessee technology development corporation on a first-come, first-served basis. The Tennessee technology development corporation shall ensure that the amount of all certificates of qualification issued under this subdivision (a)(5)(B) does not exceed the maximum annual amounts described in subdivision (a)(4). (C) The angel investor shall submit the certificate of qualification described in subdivision (a)(5)(B) to the department of revenue when claiming a credit under this section. (6) A qualified angel investor who invests in a company located in a Tier 4 county, as defined in § 67-4-2109(a)(2)(C) , shall be allowed a credit of fifty percent (50%) of the value of such investment against the liability of such angel investor under this chapter. The angel investor shall otherwise be subject to all other requirements described in this section. (b) A review of the cumulative effectiveness of the credit authorized under this section shall be conducted by the Tennessee technology development corporation by July 1, 2020. Such review shall include, but is not limited to, the number and type of businesses that received angel investments, the number of angel investors and the aggregate amount of cash investments, the current status of each business that received angel investments, and the estimated economic impact to the state of businesses that received an investment under this section. A report containing the findings of the review conducted pursuant to this subsection (b) shall be generated. A copy of the report shall be transmitted to the governor, the speaker of the senate, the speaker of the house of representatives, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, the commissioner of economic and community development, and the commissioner of revenue. Amended by 2018 Tenn. Acts, ch. 892, s 1, eff. 5/3/2018. Added by 2016 Tenn. Acts, ch. 1055, s 1, eff. 1/1/2017.
(a) (1) For tax years beginning January 1, 2017, and thereafter, there shall be allowed a credit of thirty-three percent (33%) of the value of a direct or indirect cash investment by an angel investor against the liability of such angel investor under this chapter in the tax year in which the investment was made. All credits allowed under this subsection (a) are nonrefundable and nontransferable. Any unused credit allowed under this subsection (a) may be carried forward for five (5) years after the tax year in which the credit originated. (2) For purposes of this section, "angel investor" means a natural person who: (A) Is an accredited investor as defined in 17 CFR 230.501(a)(5) or (a)(6) ; and (B) Invests in a company that, at the time of the investment: (i) Is an innovative small business with high-growth potential, including, but not limited to, tech-enabled startups and companies in the fields of consumer products, medical devices, life science, or additive manufacturing; or is a company that has received small business innovation research/small business technology transfer (SBIR/STTR) funding; or is commercializing technology developed at a research institution within this state; (ii) Is not a professional service firm and is not primarily engaged in the provision of goods or services within the following industries: construction, leisure, hospitality, retail, real estate, insurance, banking, lobbying, consulting, alcohol, or gambling; (iii) Has been in business for five (5) or fewer years; (iv) Has, based on the prior fiscal year, three million dollars ($3,000,000) or less in gross annual revenue; and (v) Has fifty (50) or fewer full-time employees, as defined in § 67-4-2109(f)(1)(A) , and at least sixty percent (60%) of those employees perform the majority of their job duties within this state. (3) The credit allowed under this subsection (a) shall be limited to fifty thousand dollars ($50,000) per angel investor in any tax year. (4) For tax years beginning in 2017, a maximum of three million dollars ($3,000,000) in tax credits may be allowed under this subsection (a). For tax years beginning in 2018, a maximum of four million dollars ($4,000,000) of credits may be allowed under this subsection (a). For tax years beginning January 1, 2019, and thereafter, a maximum of five million dollars ($5,000,000) of credits may be allowed under this subsection (a). (5) (A) A credit may be allowed under this subsection (a) only if the investment is at least fifteen thousand dollars ($15,000) and represents no more than forty percent (40%) of the capitalization of the company at the time of the investment. (B) Within sixty (60) days of the date of the investment, the angel investor shall apply to the Tennessee technology development corporation, in a manner to be determined by the Tennessee technology development corporation, for a certificate of qualification under this section. The angel investor shall affirm that all requirements for qualification under subdivision (a)(2) have been met, and shall provide proof of the investment in a form to be determined by the Tennessee technology development corporation. Certificates of qualification shall be issued by the Tennessee technology development corporation on a first-come, first-served basis. The Tennessee technology development corporation shall ensure that the amount of all certificates of qualification issued under this subdivision (a)(5)(B) does not exceed the maximum annual amounts described in subdivision (a)(4). (C) The angel investor shall submit the certificate of qualification described in subdivision (a)(5)(B) to the department of revenue when claiming a credit under this section. (6) A qualified angel investor who invests in a company located in a Tier 4 county, as defined in § 67-4-2109(a)(2)(C) , shall be allowed a credit of fifty percent (50%) of the value of such investment against the liability of such angel investor under this chapter. The angel investor shall otherwise be subject to all other requirements described in this section.
(1) For tax years beginning January 1, 2017, and thereafter, there shall be allowed a credit of thirty-three percent (33%) of the value of a direct or indirect cash investment by an angel investor against the liability of such angel investor under this chapter in the tax year in which the investment was made. All credits allowed under this subsection (a) are nonrefundable and nontransferable. Any unused credit allowed under this subsection (a) may be carried forward for five (5) years after the tax year in which the credit originated.
(2) For purposes of this section, "angel investor" means a natural person who: (A) Is an accredited investor as defined in 17 CFR 230.501(a)(5) or (a)(6) ; and (B) Invests in a company that, at the time of the investment: (i) Is an innovative small business with high-growth potential, including, but not limited to, tech-enabled startups and companies in the fields of consumer products, medical devices, life science, or additive manufacturing; or is a company that has received small business innovation research/small business technology transfer (SBIR/STTR) funding; or is commercializing technology developed at a research institution within this state; (ii) Is not a professional service firm and is not primarily engaged in the provision of goods or services within the following industries: construction, leisure, hospitality, retail, real estate, insurance, banking, lobbying, consulting, alcohol, or gambling; (iii) Has been in business for five (5) or fewer years; (iv) Has, based on the prior fiscal year, three million dollars ($3,000,000) or less in gross annual revenue; and (v) Has fifty (50) or fewer full-time employees, as defined in § 67-4-2109(f)(1)(A) , and at least sixty percent (60%) of those employees perform the majority of their job duties within this state.
(A) Is an accredited investor as defined in 17 CFR 230.501(a)(5) or (a)(6) ; and
(B) Invests in a company that, at the time of the investment: (i) Is an innovative small business with high-growth potential, including, but not limited to, tech-enabled startups and companies in the fields of consumer products, medical devices, life science, or additive manufacturing; or is a company that has received small business innovation research/small business technology transfer (SBIR/STTR) funding; or is commercializing technology developed at a research institution within this state; (ii) Is not a professional service firm and is not primarily engaged in the provision of goods or services within the following industries: construction, leisure, hospitality, retail, real estate, insurance, banking, lobbying, consulting, alcohol, or gambling; (iii) Has been in business for five (5) or fewer years; (iv) Has, based on the prior fiscal year, three million dollars ($3,000,000) or less in gross annual revenue; and (v) Has fifty (50) or fewer full-time employees, as defined in § 67-4-2109(f)(1)(A) , and at least sixty percent (60%) of those employees perform the majority of their job duties within this state.
(i) Is an innovative small business with high-growth potential, including, but not limited to, tech-enabled startups and companies in the fields of consumer products, medical devices, life science, or additive manufacturing; or is a company that has received small business innovation research/small business technology transfer (SBIR/STTR) funding; or is commercializing technology developed at a research institution within this state;
(ii) Is not a professional service firm and is not primarily engaged in the provision of goods or services within the following industries: construction, leisure, hospitality, retail, real estate, insurance, banking, lobbying, consulting, alcohol, or gambling;
(iii) Has been in business for five (5) or fewer years;
(iv) Has, based on the prior fiscal year, three million dollars ($3,000,000) or less in gross annual revenue; and
(v) Has fifty (50) or fewer full-time employees, as defined in § 67-4-2109(f)(1)(A) , and at least sixty percent (60%) of those employees perform the majority of their job duties within this state.
(3) The credit allowed under this subsection (a) shall be limited to fifty thousand dollars ($50,000) per angel investor in any tax year.
(4) For tax years beginning in 2017, a maximum of three million dollars ($3,000,000) in tax credits may be allowed under this subsection (a). For tax years beginning in 2018, a maximum of four million dollars ($4,000,000) of credits may be allowed under this subsection (a). For tax years beginning January 1, 2019, and thereafter, a maximum of five million dollars ($5,000,000) of credits may be allowed under this subsection (a).
(5) (A) A credit may be allowed under this subsection (a) only if the investment is at least fifteen thousand dollars ($15,000) and represents no more than forty percent (40%) of the capitalization of the company at the time of the investment. (B) Within sixty (60) days of the date of the investment, the angel investor shall apply to the Tennessee technology development corporation, in a manner to be determined by the Tennessee technology development corporation, for a certificate of qualification under this section. The angel investor shall affirm that all requirements for qualification under subdivision (a)(2) have been met, and shall provide proof of the investment in a form to be determined by the Tennessee technology development corporation. Certificates of qualification shall be issued by the Tennessee technology development corporation on a first-come, first-served basis. The Tennessee technology development corporation shall ensure that the amount of all certificates of qualification issued under this subdivision (a)(5)(B) does not exceed the maximum annual amounts described in subdivision (a)(4). (C) The angel investor shall submit the certificate of qualification described in subdivision (a)(5)(B) to the department of revenue when claiming a credit under this section.
(A) A credit may be allowed under this subsection (a) only if the investment is at least fifteen thousand dollars ($15,000) and represents no more than forty percent (40%) of the capitalization of the company at the time of the investment.
(B) Within sixty (60) days of the date of the investment, the angel investor shall apply to the Tennessee technology development corporation, in a manner to be determined by the Tennessee technology development corporation, for a certificate of qualification under this section. The angel investor shall affirm that all requirements for qualification under subdivision (a)(2) have been met, and shall provide proof of the investment in a form to be determined by the Tennessee technology development corporation. Certificates of qualification shall be issued by the Tennessee technology development corporation on a first-come, first-served basis. The Tennessee technology development corporation shall ensure that the amount of all certificates of qualification issued under this subdivision (a)(5)(B) does not exceed the maximum annual amounts described in subdivision (a)(4).
(C) The angel investor shall submit the certificate of qualification described in subdivision (a)(5)(B) to the department of revenue when claiming a credit under this section.
(6) A qualified angel investor who invests in a company located in a Tier 4 county, as defined in § 67-4-2109(a)(2)(C) , shall be allowed a credit of fifty percent (50%) of the value of such investment against the liability of such angel investor under this chapter. The angel investor shall otherwise be subject to all other requirements described in this section.
(b) A review of the cumulative effectiveness of the credit authorized under this section shall be conducted by the Tennessee technology development corporation by July 1, 2020. Such review shall include, but is not limited to, the number and type of businesses that received angel investments, the number of angel investors and the aggregate amount of cash investments, the current status of each business that received angel investments, and the estimated economic impact to the state of businesses that received an investment under this section. A report containing the findings of the review conducted pursuant to this subsection (b) shall be generated. A copy of the report shall be transmitted to the governor, the speaker of the senate, the speaker of the house of representatives, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, the commissioner of economic and community development, and the commissioner of revenue.
Amended by 2018 Tenn. Acts, ch. 892, s 1, eff. 5/3/2018.
Added by 2016 Tenn. Acts, ch. 1055, s 1, eff. 1/1/2017.
Tenn. Code Ann. § 67-1-404 — TN Code / Title 67 / Chapter 1 / Section 67-1-404
Sessions
Status: in_force

(a) The county board of equalization and the board of equalization of any metropolitan government organized and existing pursuant to title 7, chapters 1-3 shall, on June 1 each year, meet and sit in regular session as necessity may require until the equalization has been completed; provided, that in any county having a population of not less than twenty-six thousand (26,000) nor more than twenty-six thousand one hundred (26,100), according to the 1970 federal census or any subsequent federal census, the county legislative body may by resolution or ordinance set an earlier date for such board's initial meeting. (b) (1) The board shall not sit longer than: (A) Six (6) days in counties having a population of ten thousand (10,000) or less, according to the 1970 federal census or any subsequent federal census; (B) Ten (10) days in counties having a population of over ten thousand (10,000) and under twenty thousand (20,000), according to the 1970 federal census or any subsequent federal census; (C) Fifteen (15) days in counties having a population of over twenty thousand (20,000) and under thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census; and (D) For a number of days fixed by the respective county legislative bodies, but not in excess of thirty (30) days, in counties having a population of over thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census. (2) The county mayor, when the county legislative body cannot act, may extend the time or may call the board in special session at any time, if in the county mayor's judgment the public welfare requires it. (c) Any county board of equalization, having jurisdiction over a municipality with a beginning tax due date different from that of the county, shall meet as required by the county legislative body, but at least one (1) month prior to the applicable beginning tax due date. Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; Acts 1980, ch. 856, § 1; T.C.A., § 67-254; Acts 2003, ch. 90, § 2.
(a) The county board of equalization and the board of equalization of any metropolitan government organized and existing pursuant to title 7, chapters 1-3 shall, on June 1 each year, meet and sit in regular session as necessity may require until the equalization has been completed; provided, that in any county having a population of not less than twenty-six thousand (26,000) nor more than twenty-six thousand one hundred (26,100), according to the 1970 federal census or any subsequent federal census, the county legislative body may by resolution or ordinance set an earlier date for such board's initial meeting.
(b) (1) The board shall not sit longer than: (A) Six (6) days in counties having a population of ten thousand (10,000) or less, according to the 1970 federal census or any subsequent federal census; (B) Ten (10) days in counties having a population of over ten thousand (10,000) and under twenty thousand (20,000), according to the 1970 federal census or any subsequent federal census; (C) Fifteen (15) days in counties having a population of over twenty thousand (20,000) and under thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census; and (D) For a number of days fixed by the respective county legislative bodies, but not in excess of thirty (30) days, in counties having a population of over thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census. (2) The county mayor, when the county legislative body cannot act, may extend the time or may call the board in special session at any time, if in the county mayor's judgment the public welfare requires it.
(1) The board shall not sit longer than: (A) Six (6) days in counties having a population of ten thousand (10,000) or less, according to the 1970 federal census or any subsequent federal census; (B) Ten (10) days in counties having a population of over ten thousand (10,000) and under twenty thousand (20,000), according to the 1970 federal census or any subsequent federal census; (C) Fifteen (15) days in counties having a population of over twenty thousand (20,000) and under thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census; and (D) For a number of days fixed by the respective county legislative bodies, but not in excess of thirty (30) days, in counties having a population of over thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census.
(A) Six (6) days in counties having a population of ten thousand (10,000) or less, according to the 1970 federal census or any subsequent federal census;
(B) Ten (10) days in counties having a population of over ten thousand (10,000) and under twenty thousand (20,000), according to the 1970 federal census or any subsequent federal census;
(C) Fifteen (15) days in counties having a population of over twenty thousand (20,000) and under thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census; and
(D) For a number of days fixed by the respective county legislative bodies, but not in excess of thirty (30) days, in counties having a population of over thirty-five thousand (35,000), according to the 1970 federal census or any subsequent federal census.
(2) The county mayor, when the county legislative body cannot act, may extend the time or may call the board in special session at any time, if in the county mayor's judgment the public welfare requires it.
(c) Any county board of equalization, having jurisdiction over a municipality with a beginning tax due date different from that of the county, shall meet as required by the county legislative body, but at least one (1) month prior to the applicable beginning tax due date.
Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; Acts 1980, ch. 856, § 1; T.C.A., § 67-254; Acts 2003, ch. 90, § 2.
Tenn. Code Ann. § 67-3-103 — TN Code / Title 67 / Chapter 3 / Section 67-3-103
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Agricultural purposes" means operating tractors or other farm equipment used exclusively, whether for hire or not, in plowing, planting, harvesting, raising or processing of farm products at a farm, nursery or greenhouse; or operating farm irrigation systems; when such vehicles or equipment are not operated upon the public highways of this state; (2) "Alternative fuel" means a liquefied petroleum gas or compressed natural gas product used in an internal combustion engine or motor, or a hydrogen gas product used to power a fuel cell, to propel any form of motor vehicle, machine, or mechanical contrivance. "Alternative fuel" includes all forms of fuel commonly known as butane, propane, or compressed natural gas; (3) "Blend stock" means any petroleum product component of gasoline, such as naphtha, reformate, or toluene, that can be blended for use in a motor fuel. However, "blend stock" does not include any substance that will be ultimately used for consumer nonmotor fuel use and is sold or removed in drum quantities of not more than fifty-five gallons (55 gals.) at the time of the removal or sale; (4) "Blended fuel" means a mixture composed of gasoline or diesel fuel and another liquid, other than a minimal amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle; (5) "Blender" means any person that produces blended motor fuel outside the bulk transfer/terminal system; (6) "Blending" means the mixing of one (1) or more petroleum products, with or without another product, regardless of the original character of the product blended, if the product obtained by the blending is capable of use or otherwise sold for use in the generation of power to propel a motor vehicle, an airplane, a motorboat, or other mechanical contrivance. "Blending" does not include blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil and greases; (7) "Bonded importer" means a person with a valid bonded importer's license under § 67-3-606 ; (8) "Bulk end user" means a person who receives into the person's own storage facilities, for the person's own consumption, transport lots of taxable motor fuel; (9) "Bulk export" means the movement of petroleum products from a point in Tennessee to another state by means of transport truck, pipeline, marine vessel or rail, including any quantity of petroleum product placed by the manufacturer into the vehicle fuel supply tank of a newly manufactured motor vehicle; (10) "Bulk plant" means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack; (11) "Bulk transfer" means any transfer of a petroleum product within the bulk transfer/terminal system from one location to another by pipeline or marine delivery; (12) "Bulk transfer/terminal system" means the motor fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Thus, gasoline in a refinery, pipeline, vessel, or terminal is in the bulk transfer/terminal system. Taxable motor fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system; (13) "Commissioner" means the commissioner of revenue or the commissioner's designated subordinate official; (14) "Computer-type pump" means a pump used to dispense fuel, that has meters for registering the total sales price and gallons sold, and displays the price per gallon on the dispenser; (15) "Customer-controlled pump" means a pump used for dispensing motor fuel directly to a customer who can access the pump by way of a personal key, an identification number, or a customer card that is assigned to the customer by a licensed wholesaler; (16) "Dead storage" means the amount of taxable motor fuel that will not be pumped out of a storage tank because the motor fuel is below the mouth of the draw pipe. For this purpose, a vendor may assume that the amount of motor fuel in dead storage is two hundred gallons (200 gals.) for a tank with a capacity of less than ten thousand gallons (10,000 gals.), and four hundred gallons (400 gals.) for a tank with a capacity of ten thousand gallons (10,000 gals.) or more; (17) "Department" means the department of revenue; (18) "Destination state" means the state, territory, or foreign country to which petroleum products are directed for resale or use; (19) "Diesel fuel" means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle. "Diesel fuel" does not include jet fuel or kerosene unless sold for use in a diesel-powered highway vehicle or used in such vehicles, in which case the fuel shall be deemed diesel fuel for taxation purposes. With regard to jet fuel, it is further provided that the buyer must be registered to purchase jet fuel subject to federal taxes applicable to jet fuel, and the vendor must obtain certification of such fact satisfactory to the department prior to making the sale; (20) "Diesel-powered highway vehicle" means a motor vehicle, propelled by a diesel-powered engine, that is operated, or intended to be operated, on a highway; (21) "Distributor report" means the report required under § 67-3-701 ; (22) "Diverted shipment" means any shipment of a petroleum product where the movement of that product by a transporter is changed from the original point of destination to another point of destination; (23) "Dyed diesel fuel" means diesel fuel dyed under United States environmental protection agency rules for high sulfur diesel fuel, or dyed under internal revenue service rules for low sulphur fuel, or dyed pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service, including any invisible marker requirements; (24) "Ethanol" means fuel grade ethanol; (25) "Export" means to obtain petroleum products in this state for sale, use, or distribution in another state. In applying this definition, the delivery of petroleum products outside Tennessee by or for the vendor constitutes an export by the vendor, and the delivery of petroleum products outside Tennessee by or for the purchaser constitutes an export by the purchaser; (26) "Exporter" means any person, other than a supplier, who purchases or otherwise holds title to taxable petroleum products in this state for the purpose of transporting or delivering the products to another state or country; (27) "Farm products" means flowers and plants, including cut flowers, flowering plants, potted plants, vegetables and vegetable plants, trees, shrubs, vines, ornamentals, sod, and mushrooms. "Farm products" also means livestock and poultry raised for food, including dairy products; (28) "Fuel alcohol" means any alcohol used or intended for use as fuel in a combustion engine or heating oil system; (29) "Fuel grade ethanol" means a product that meets the American Society for Testing and Materials (ASTM) standard in effect on January 1, 1995, and any successor rule, as the D-4806 specification for denatured fuel grade ethanol, for blending with gasoline for use as automatic spark-ignition engine fuels; (30) "Fuel transportation vehicle" means a vehicle designed for highway use that is also designed or used to transport motor fuels, including transport trucks and tank wagons; (31) "Gallon" or "net gallon" means the amount of petroleum product, corrected to a temperature of sixty degrees Fahrenheit (60°F) and a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.), necessary to completely fill a standard United States gallon liquid measure; (32) "Gasohol" means a blended fuel composed of gasoline and ethanol; (33) "Gasoline" means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel, but does not include any product that is sold as a product other than gasoline and has an ASTM octane number of less than seventy-five (75) as determined by the "motor method"; and does not include aviation gasoline; provided, that the buyer is registered to purchase aviation gasoline free of tax, and the vendor obtains certification of such fact satisfactory to the department prior to making the sale; (34) "Governmental agency" means a department of a local, state or federal government, where such department is organized by and accountable to the authority of the executive, legislative, or judicial branch of that government; but does not include a private organization, association, or contractor, whether for profit or not, unless specifically identified in this chapter. For the purpose of this chapter, "governmental agency" includes a rescue squad chartered by the state as a nonprofit corporation or association and that is a member of the Tennessee Association of Rescue Squads, and a volunteer fire department chartered by the state as a nonprofit corporation or association; (35) "Gross gallons" means the total measured product, exclusive of any temperature or pressure adjustments, considerations or deductions; (36) "Heating oil" means a motor fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes; (37) "Highway vehicle" means a self-propelled vehicle that is designed for use on a highway; (38) "Import" means to bring petroleum products into this state by any means of conveyance other than in the fuel supply tank of a motor vehicle. In applying this definition, the delivery of petroleum products into this state from outside Tennessee by or for the vendor constitutes an import by the vendor, and the delivery of petroleum products into this state from outside Tennessee by or for the purchaser constitutes an import by the purchaser; (39) "In this state" means the area inside the boundaries of Tennessee, but does not include the midstream of waterways that border the state; (40) "Invoiced gallons" means the gallons actually billed on an invoice from a vendor; (41) "K-1 kerosene" means burner fuel designed for unvented space heaters which meets ASTM standard D-3699, in effect on January 1, 1995, and any successor rule, as the specification for K-1 kerosene; (42) "Kerosene" has the same meaning as defined by the ASTM standards for kerosene; (43) "Liquid" means any substance that is liquid at temperatures in excess of sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.) absolute; (44) "Local transit company" means a person that is a scheduled, common carrier, public passenger, land transportation service, serving regular routes within a municipality and the territory adjacent to the municipality, or within a metropolitan government created under title 7, chapters 1-3, and that generates at least sixty percent (60%) of the total passenger fare from such routes; provided, that the operation is supervised, regulated, and controlled as a street railway company, under [former] § 65-16-101 [repealed], and all legislative and statutory provisions applicable thereto; (45) "Local transit service" means service furnished by a local transit company; (46) "Motor fuel" means gasoline, diesel fuel and blended fuel; (47) "Motor fuel transporter" means a person who transports motor fuel by transport truck, railroad tank car, marine vessel or pipeline; (48) "Motor vehicle" means a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's use on highways. "Motor vehicle" does not include: (A) Farm machinery, including machinery designed for off-road use but capable of movement on roads at low speeds; (B) A vehicle operated on rails; or (C) Machinery designed principally for off-road use, unless such machinery is licensed to operate on Tennessee highways; (49) "Permissive supplier" means any person who is not subject to the general taxing jurisdiction of this state, but who: (A) Is a position holder in a federally qualified terminal located outside this state; (B) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal distribution system; and (C) Acquires product in such out-of-state terminals from position holders in transactions that otherwise qualify as two-party exchanges; (50) "Person" means a natural person, partnership, firm, association, corporation, limited liability company, court appointed representative, state, political subdivision or any other entity, group, or syndicate; (51) "Petroleum products" means all benzol, gasoline, burning oil, distillate, fuel oil, gas oil, kerosene, naphtha, or any other volatile substance, excluding propane, reflecting a gravity of sixteen degrees (16°) or above on the American Petroleum Institute (API) scale; with the exception of those substances with a kinematic viscosity greater than seventy (70) centistokes at one hundred twenty-two degrees Fahrenheit (122°F) and a flash point greater than one hundred fifty degrees Fahrenheit (150°F); produced from petroleum, natural gas, oil shale or coal, by whatever trade name known, or substitutes therefor, including fuel alcohol, sold or used or stored in this state, separately or in combination, for any purpose whatever, by any user or storer, whether or not manufactured in this state; (52) "Position holder" means the person who holds the inventory position in petroleum products in a terminal, as reflected on the records of the terminal operator. A person holds the inventory position in petroleum products when that person has a contract with the operator for the use of storage facilities and terminaling services for petroleum products at the terminal. "Position holder" includes a terminal operator who owns petroleum products in the terminal; (53) "Public highway" means the entire width between boundary lines of each public-maintained way in this state, including streets and alleys in cities and towns, when any part of the way is open to the public use for vehicle travel; (54) "Qualified terminal" means a qualified terminal as defined under the Internal Revenue Code, regulation and practices, that has been assigned a terminal control number (TCN) by the internal revenue service; (55) "Rack" means a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a railroad tank car, a transport truck or another means of bulk transfer outside of the bulk transfer/terminal system; (56) "Refiner" means a person that owns, operates, or otherwise controls a refinery within the United States; (57) "Refinery" means a facility used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons, and from which motor fuel may be removed by pipeline, by marine vessel, or at a rack; provided, that "refinery" also means a facility used to produce fuel alcohol; (58) "Removal" means any physical transfer other than by evaporation, loss, or destruction, of petroleum products from a terminal, manufacturing plant, customs custody, pipeline, marine vessel (e.g., barge or tanker), refinery or any receptacle that stores petroleum products; (59) "Retail station" means any service station, garage, truck stop or other outlet dispensing motor fuel from a container equipped with a computer-type pump that measures fuel passing through it; (60) "Retailer" means a person that engages in the business of selling or distributing petroleum products to the end user within this state through a retail station; (61) "State" means the state of Tennessee; (62) (A) "Supplier" means a person that meets all the following conditions: (i) Is subject to the general taxing jurisdiction of this state; (ii) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal system; and (iii) Is one (1) of the following: (a) Is the "position holder" in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state; (b) Imports taxable petroleum products into this state from a foreign country; (c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account; (d) Produces fuel alcohol or alcohol derivative substances in this state; or (e) Is the receiving supplier on a two-party exchange; (B) A terminal operator shall not be considered a "supplier" merely because the terminal operator handles taxable petroleum products consigned to it within a terminal. When used in this chapter, other than in this section, "supplier" shall be deemed to also refer to the term "permissive supplier" unless provided otherwise; (63) "Tank wagon" means a straight truck having multiple compartments designed or used to carry petroleum products; (64) "Taxable motor fuel" means gasoline, diesel fuel, kerosene, and blends thereof, and any other substance blended with any of these fuels; (65) "Terminal" means a storage and distribution facility for taxable motor fuel, supplied by pipeline or marine vessel, that is registered as a qualified terminal by the internal revenue service; (66) "Terminal bulk transfer" means a transfer of petroleum products in any of the following instances: (A) Marine barge movements of fuel from a refinery or terminal to a refinery or terminal; (B) Pipeline movements of fuel from a refinery or terminal to a refinery or terminal; (C) Rail movements of fuel from a refinery or terminal to a refinery or terminal; (D) Book transfers of product within a terminal between suppliers prior to completion of removal across the rack; or (E) Two-party exchanges between licensed suppliers within a terminal; (67) (A) "Terminal operator" means a person that: (i) Owns, operates, or otherwise controls a terminal; and (ii) Does not use a substantial portion of the taxable motor fuel that is transferred through or stored in the terminal for its own use, i.e., for its own consumption or in the manufacture of products other than motor fuel; (B) A terminal operator may own the taxable motor fuel that is transferred through or stored in the terminal; (68) "Transmix" means the buffer or interface between two (2) different products in a pipeline shipment, or a mix of two (2) different products within a refinery or terminal that results in an off-grade mixture; (69) "Transport truck" means a semi-trailer combination rig or tank wagon designed or used for the purpose of transporting petroleum products over the highways; (70) "Transporter" means any operator of a pipeline, barge, railroad or transport truck engaged in the business of transporting petroleum products; (71) "Two-party exchange" means a transaction in which a petroleum product is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier pursuant to an exchange agreement: (A) Which transaction includes a transfer from the person that holds the inventory position for taxable motor fuel in the terminal as reflected on the records of the terminal operator; and (B) The exchange transaction is completed prior to removal of the product from the terminal by the receiving exchange partner; (72) "Undyed diesel fuel" means diesel fuel not dyed under United States environmental protection agency rules for high sulfur diesel fuel nor dyed under internal revenue service rules for low sulphur fuel, nor pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service; (73) "Vehicle fuel supply tank" means any receptacle on a motor vehicle designed to supply fuel for the propulsion of the motor vehicle or from which fuel is supplied for the propulsion of the motor vehicle; (74) "Vessel" means a barge or other marine conveyance used to transport petroleum products in bulk; and (75) "Wholesaler" means a person who acquires petroleum products from a supplier, importer or from another wholesaler, for subsequent sale and distribution at wholesale by tank cars, transport trucks or vessels. Amended by 2024 Tenn. Acts, ch. 859,s 1, eff. 1/1/2025. Acts 1997 , ch. 316, § 1; T.C.A., § 67-3-1203 ; Acts 2007 , ch. 580, § 1.
As used in this chapter, unless the context otherwise requires:
(1) "Agricultural purposes" means operating tractors or other farm equipment used exclusively, whether for hire or not, in plowing, planting, harvesting, raising or processing of farm products at a farm, nursery or greenhouse; or operating farm irrigation systems; when such vehicles or equipment are not operated upon the public highways of this state;
(2) "Alternative fuel" means a liquefied petroleum gas or compressed natural gas product used in an internal combustion engine or motor, or a hydrogen gas product used to power a fuel cell, to propel any form of motor vehicle, machine, or mechanical contrivance. "Alternative fuel" includes all forms of fuel commonly known as butane, propane, or compressed natural gas;
(3) "Blend stock" means any petroleum product component of gasoline, such as naphtha, reformate, or toluene, that can be blended for use in a motor fuel. However, "blend stock" does not include any substance that will be ultimately used for consumer nonmotor fuel use and is sold or removed in drum quantities of not more than fifty-five gallons (55 gals.) at the time of the removal or sale;
(4) "Blended fuel" means a mixture composed of gasoline or diesel fuel and another liquid, other than a minimal amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle;
(5) "Blender" means any person that produces blended motor fuel outside the bulk transfer/terminal system;
(6) "Blending" means the mixing of one (1) or more petroleum products, with or without another product, regardless of the original character of the product blended, if the product obtained by the blending is capable of use or otherwise sold for use in the generation of power to propel a motor vehicle, an airplane, a motorboat, or other mechanical contrivance. "Blending" does not include blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil and greases;
(7) "Bonded importer" means a person with a valid bonded importer's license under § 67-3-606 ;
(8) "Bulk end user" means a person who receives into the person's own storage facilities, for the person's own consumption, transport lots of taxable motor fuel;
(9) "Bulk export" means the movement of petroleum products from a point in Tennessee to another state by means of transport truck, pipeline, marine vessel or rail, including any quantity of petroleum product placed by the manufacturer into the vehicle fuel supply tank of a newly manufactured motor vehicle;
(10) "Bulk plant" means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack;
(11) "Bulk transfer" means any transfer of a petroleum product within the bulk transfer/terminal system from one location to another by pipeline or marine delivery;
(12) "Bulk transfer/terminal system" means the motor fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Thus, gasoline in a refinery, pipeline, vessel, or terminal is in the bulk transfer/terminal system. Taxable motor fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system;
(13) "Commissioner" means the commissioner of revenue or the commissioner's designated subordinate official;
(14) "Computer-type pump" means a pump used to dispense fuel, that has meters for registering the total sales price and gallons sold, and displays the price per gallon on the dispenser;
(15) "Customer-controlled pump" means a pump used for dispensing motor fuel directly to a customer who can access the pump by way of a personal key, an identification number, or a customer card that is assigned to the customer by a licensed wholesaler;
(16) "Dead storage" means the amount of taxable motor fuel that will not be pumped out of a storage tank because the motor fuel is below the mouth of the draw pipe. For this purpose, a vendor may assume that the amount of motor fuel in dead storage is two hundred gallons (200 gals.) for a tank with a capacity of less than ten thousand gallons (10,000 gals.), and four hundred gallons (400 gals.) for a tank with a capacity of ten thousand gallons (10,000 gals.) or more;
(17) "Department" means the department of revenue;
(18) "Destination state" means the state, territory, or foreign country to which petroleum products are directed for resale or use;
(19) "Diesel fuel" means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle. "Diesel fuel" does not include jet fuel or kerosene unless sold for use in a diesel-powered highway vehicle or used in such vehicles, in which case the fuel shall be deemed diesel fuel for taxation purposes. With regard to jet fuel, it is further provided that the buyer must be registered to purchase jet fuel subject to federal taxes applicable to jet fuel, and the vendor must obtain certification of such fact satisfactory to the department prior to making the sale;
(20) "Diesel-powered highway vehicle" means a motor vehicle, propelled by a diesel-powered engine, that is operated, or intended to be operated, on a highway;
(21) "Distributor report" means the report required under § 67-3-701 ;
(22) "Diverted shipment" means any shipment of a petroleum product where the movement of that product by a transporter is changed from the original point of destination to another point of destination;
(23) "Dyed diesel fuel" means diesel fuel dyed under United States environmental protection agency rules for high sulfur diesel fuel, or dyed under internal revenue service rules for low sulphur fuel, or dyed pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service, including any invisible marker requirements;
(24) "Ethanol" means fuel grade ethanol;
(25) "Export" means to obtain petroleum products in this state for sale, use, or distribution in another state. In applying this definition, the delivery of petroleum products outside Tennessee by or for the vendor constitutes an export by the vendor, and the delivery of petroleum products outside Tennessee by or for the purchaser constitutes an export by the purchaser;
(26) "Exporter" means any person, other than a supplier, who purchases or otherwise holds title to taxable petroleum products in this state for the purpose of transporting or delivering the products to another state or country;
(27) "Farm products" means flowers and plants, including cut flowers, flowering plants, potted plants, vegetables and vegetable plants, trees, shrubs, vines, ornamentals, sod, and mushrooms. "Farm products" also means livestock and poultry raised for food, including dairy products;
(28) "Fuel alcohol" means any alcohol used or intended for use as fuel in a combustion engine or heating oil system;
(29) "Fuel grade ethanol" means a product that meets the American Society for Testing and Materials (ASTM) standard in effect on January 1, 1995, and any successor rule, as the D-4806 specification for denatured fuel grade ethanol, for blending with gasoline for use as automatic spark-ignition engine fuels;
(30) "Fuel transportation vehicle" means a vehicle designed for highway use that is also designed or used to transport motor fuels, including transport trucks and tank wagons;
(31) "Gallon" or "net gallon" means the amount of petroleum product, corrected to a temperature of sixty degrees Fahrenheit (60°F) and a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.), necessary to completely fill a standard United States gallon liquid measure;
(32) "Gasohol" means a blended fuel composed of gasoline and ethanol;
(33) "Gasoline" means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel, but does not include any product that is sold as a product other than gasoline and has an ASTM octane number of less than seventy-five (75) as determined by the "motor method"; and does not include aviation gasoline; provided, that the buyer is registered to purchase aviation gasoline free of tax, and the vendor obtains certification of such fact satisfactory to the department prior to making the sale;
(34) "Governmental agency" means a department of a local, state or federal government, where such department is organized by and accountable to the authority of the executive, legislative, or judicial branch of that government; but does not include a private organization, association, or contractor, whether for profit or not, unless specifically identified in this chapter. For the purpose of this chapter, "governmental agency" includes a rescue squad chartered by the state as a nonprofit corporation or association and that is a member of the Tennessee Association of Rescue Squads, and a volunteer fire department chartered by the state as a nonprofit corporation or association;
(35) "Gross gallons" means the total measured product, exclusive of any temperature or pressure adjustments, considerations or deductions;
(36) "Heating oil" means a motor fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes;
(37) "Highway vehicle" means a self-propelled vehicle that is designed for use on a highway;
(38) "Import" means to bring petroleum products into this state by any means of conveyance other than in the fuel supply tank of a motor vehicle. In applying this definition, the delivery of petroleum products into this state from outside Tennessee by or for the vendor constitutes an import by the vendor, and the delivery of petroleum products into this state from outside Tennessee by or for the purchaser constitutes an import by the purchaser;
(39) "In this state" means the area inside the boundaries of Tennessee, but does not include the midstream of waterways that border the state;
(40) "Invoiced gallons" means the gallons actually billed on an invoice from a vendor;
(41) "K-1 kerosene" means burner fuel designed for unvented space heaters which meets ASTM standard D-3699, in effect on January 1, 1995, and any successor rule, as the specification for K-1 kerosene;
(42) "Kerosene" has the same meaning as defined by the ASTM standards for kerosene;
(43) "Liquid" means any substance that is liquid at temperatures in excess of sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14.7 p.s.i.) absolute;
(44) "Local transit company" means a person that is a scheduled, common carrier, public passenger, land transportation service, serving regular routes within a municipality and the territory adjacent to the municipality, or within a metropolitan government created under title 7, chapters 1-3, and that generates at least sixty percent (60%) of the total passenger fare from such routes; provided, that the operation is supervised, regulated, and controlled as a street railway company, under [former] § 65-16-101 [repealed], and all legislative and statutory provisions applicable thereto;
(45) "Local transit service" means service furnished by a local transit company;
(46) "Motor fuel" means gasoline, diesel fuel and blended fuel;
(47) "Motor fuel transporter" means a person who transports motor fuel by transport truck, railroad tank car, marine vessel or pipeline;
(48) "Motor vehicle" means a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's use on highways. "Motor vehicle" does not include: (A) Farm machinery, including machinery designed for off-road use but capable of movement on roads at low speeds; (B) A vehicle operated on rails; or (C) Machinery designed principally for off-road use, unless such machinery is licensed to operate on Tennessee highways;
(A) Farm machinery, including machinery designed for off-road use but capable of movement on roads at low speeds;
(B) A vehicle operated on rails; or
(C) Machinery designed principally for off-road use, unless such machinery is licensed to operate on Tennessee highways;
(49) "Permissive supplier" means any person who is not subject to the general taxing jurisdiction of this state, but who: (A) Is a position holder in a federally qualified terminal located outside this state; (B) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal distribution system; and (C) Acquires product in such out-of-state terminals from position holders in transactions that otherwise qualify as two-party exchanges;
(A) Is a position holder in a federally qualified terminal located outside this state;
(B) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal distribution system; and
(C) Acquires product in such out-of-state terminals from position holders in transactions that otherwise qualify as two-party exchanges;
(50) "Person" means a natural person, partnership, firm, association, corporation, limited liability company, court appointed representative, state, political subdivision or any other entity, group, or syndicate;
(51) "Petroleum products" means all benzol, gasoline, burning oil, distillate, fuel oil, gas oil, kerosene, naphtha, or any other volatile substance, excluding propane, reflecting a gravity of sixteen degrees (16°) or above on the American Petroleum Institute (API) scale; with the exception of those substances with a kinematic viscosity greater than seventy (70) centistokes at one hundred twenty-two degrees Fahrenheit (122°F) and a flash point greater than one hundred fifty degrees Fahrenheit (150°F); produced from petroleum, natural gas, oil shale or coal, by whatever trade name known, or substitutes therefor, including fuel alcohol, sold or used or stored in this state, separately or in combination, for any purpose whatever, by any user or storer, whether or not manufactured in this state;
(52) "Position holder" means the person who holds the inventory position in petroleum products in a terminal, as reflected on the records of the terminal operator. A person holds the inventory position in petroleum products when that person has a contract with the operator for the use of storage facilities and terminaling services for petroleum products at the terminal. "Position holder" includes a terminal operator who owns petroleum products in the terminal;
(53) "Public highway" means the entire width between boundary lines of each public-maintained way in this state, including streets and alleys in cities and towns, when any part of the way is open to the public use for vehicle travel;
(54) "Qualified terminal" means a qualified terminal as defined under the Internal Revenue Code, regulation and practices, that has been assigned a terminal control number (TCN) by the internal revenue service;
(55) "Rack" means a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a railroad tank car, a transport truck or another means of bulk transfer outside of the bulk transfer/terminal system;
(56) "Refiner" means a person that owns, operates, or otherwise controls a refinery within the United States;
(57) "Refinery" means a facility used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons, and from which motor fuel may be removed by pipeline, by marine vessel, or at a rack; provided, that "refinery" also means a facility used to produce fuel alcohol;
(58) "Removal" means any physical transfer other than by evaporation, loss, or destruction, of petroleum products from a terminal, manufacturing plant, customs custody, pipeline, marine vessel (e.g., barge or tanker), refinery or any receptacle that stores petroleum products;
(59) "Retail station" means any service station, garage, truck stop or other outlet dispensing motor fuel from a container equipped with a computer-type pump that measures fuel passing through it;
(60) "Retailer" means a person that engages in the business of selling or distributing petroleum products to the end user within this state through a retail station;
(61) "State" means the state of Tennessee;
(62) (A) "Supplier" means a person that meets all the following conditions: (i) Is subject to the general taxing jurisdiction of this state; (ii) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal system; and (iii) Is one (1) of the following: (a) Is the "position holder" in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state; (b) Imports taxable petroleum products into this state from a foreign country; (c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account; (d) Produces fuel alcohol or alcohol derivative substances in this state; or (e) Is the receiving supplier on a two-party exchange; (B) A terminal operator shall not be considered a "supplier" merely because the terminal operator handles taxable petroleum products consigned to it within a terminal. When used in this chapter, other than in this section, "supplier" shall be deemed to also refer to the term "permissive supplier" unless provided otherwise;
(A) "Supplier" means a person that meets all the following conditions: (i) Is subject to the general taxing jurisdiction of this state; (ii) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal system; and (iii) Is one (1) of the following: (a) Is the "position holder" in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state; (b) Imports taxable petroleum products into this state from a foreign country; (c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account; (d) Produces fuel alcohol or alcohol derivative substances in this state; or (e) Is the receiving supplier on a two-party exchange;
(i) Is subject to the general taxing jurisdiction of this state;
(ii) Is registered under § 4101 of the Internal Revenue Code ( 26 U.S.C. § 4101 ) for transactions in taxable motor fuels in the bulk transfer/terminal system; and
(iii) Is one (1) of the following: (a) Is the "position holder" in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state; (b) Imports taxable petroleum products into this state from a foreign country; (c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account; (d) Produces fuel alcohol or alcohol derivative substances in this state; or (e) Is the receiving supplier on a two-party exchange;
(a) Is the "position holder" in a terminal or refinery in this state, or is one who receives fuel or fuel alcohol from a position holder within a terminal or refinery in this state;
(b) Imports taxable petroleum products into this state from a foreign country;
(c) Acquires taxable petroleum products from a terminal or refinery outside this state for import into this state on such person's account;
(d) Produces fuel alcohol or alcohol derivative substances in this state; or
(e) Is the receiving supplier on a two-party exchange;
(B) A terminal operator shall not be considered a "supplier" merely because the terminal operator handles taxable petroleum products consigned to it within a terminal. When used in this chapter, other than in this section, "supplier" shall be deemed to also refer to the term "permissive supplier" unless provided otherwise;
(63) "Tank wagon" means a straight truck having multiple compartments designed or used to carry petroleum products;
(64) "Taxable motor fuel" means gasoline, diesel fuel, kerosene, and blends thereof, and any other substance blended with any of these fuels;
(65) "Terminal" means a storage and distribution facility for taxable motor fuel, supplied by pipeline or marine vessel, that is registered as a qualified terminal by the internal revenue service;
(66) "Terminal bulk transfer" means a transfer of petroleum products in any of the following instances: (A) Marine barge movements of fuel from a refinery or terminal to a refinery or terminal; (B) Pipeline movements of fuel from a refinery or terminal to a refinery or terminal; (C) Rail movements of fuel from a refinery or terminal to a refinery or terminal; (D) Book transfers of product within a terminal between suppliers prior to completion of removal across the rack; or (E) Two-party exchanges between licensed suppliers within a terminal;
(A) Marine barge movements of fuel from a refinery or terminal to a refinery or terminal;
(B) Pipeline movements of fuel from a refinery or terminal to a refinery or terminal;
(C) Rail movements of fuel from a refinery or terminal to a refinery or terminal;
(D) Book transfers of product within a terminal between suppliers prior to completion of removal across the rack; or
(E) Two-party exchanges between licensed suppliers within a terminal;
(67) (A) "Terminal operator" means a person that: (i) Owns, operates, or otherwise controls a terminal; and (ii) Does not use a substantial portion of the taxable motor fuel that is transferred through or stored in the terminal for its own use, i.e., for its own consumption or in the manufacture of products other than motor fuel; (B) A terminal operator may own the taxable motor fuel that is transferred through or stored in the terminal;
(A) "Terminal operator" means a person that: (i) Owns, operates, or otherwise controls a terminal; and (ii) Does not use a substantial portion of the taxable motor fuel that is transferred through or stored in the terminal for its own use, i.e., for its own consumption or in the manufacture of products other than motor fuel;
(i) Owns, operates, or otherwise controls a terminal; and
(ii) Does not use a substantial portion of the taxable motor fuel that is transferred through or stored in the terminal for its own use, i.e., for its own consumption or in the manufacture of products other than motor fuel;
(B) A terminal operator may own the taxable motor fuel that is transferred through or stored in the terminal;
(68) "Transmix" means the buffer or interface between two (2) different products in a pipeline shipment, or a mix of two (2) different products within a refinery or terminal that results in an off-grade mixture;
(69) "Transport truck" means a semi-trailer combination rig or tank wagon designed or used for the purpose of transporting petroleum products over the highways;
(70) "Transporter" means any operator of a pipeline, barge, railroad or transport truck engaged in the business of transporting petroleum products;
(71) "Two-party exchange" means a transaction in which a petroleum product is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier pursuant to an exchange agreement: (A) Which transaction includes a transfer from the person that holds the inventory position for taxable motor fuel in the terminal as reflected on the records of the terminal operator; and (B) The exchange transaction is completed prior to removal of the product from the terminal by the receiving exchange partner;
(A) Which transaction includes a transfer from the person that holds the inventory position for taxable motor fuel in the terminal as reflected on the records of the terminal operator; and
(B) The exchange transaction is completed prior to removal of the product from the terminal by the receiving exchange partner;
(72) "Undyed diesel fuel" means diesel fuel not dyed under United States environmental protection agency rules for high sulfur diesel fuel nor dyed under internal revenue service rules for low sulphur fuel, nor pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service;
(73) "Vehicle fuel supply tank" means any receptacle on a motor vehicle designed to supply fuel for the propulsion of the motor vehicle or from which fuel is supplied for the propulsion of the motor vehicle;
(74) "Vessel" means a barge or other marine conveyance used to transport petroleum products in bulk; and
(75) "Wholesaler" means a person who acquires petroleum products from a supplier, importer or from another wholesaler, for subsequent sale and distribution at wholesale by tank cars, transport trucks or vessels.
Amended by 2024 Tenn. Acts, ch. 859,s 1, eff. 1/1/2025.
Acts 1997 , ch. 316, § 1; T.C.A., § 67-3-1203 ; Acts 2007 , ch. 580, § 1.
Tenn. Code Ann. § 67-4-1906 — TN Code / Title 67 / Chapter 4 / Section 67-4-1906
Exemptions
Status: in_force

This part does not apply to the rental of motor vehicles to a church, or the rental of motor vehicles to a nonprofit religious organization that has received a determination of exemption from the internal revenue service under § 501(c)(3) of the Internal Revenue Code ( 26 U.S.C. § 501(c)(3) ) and is currently operating under it; provided, that the church or nonprofit religious organization holds a current certificate of sales or use tax exemption from the department of revenue pursuant to § 67-6-322 . Acts 1994, ch. 835, § 1.
This part does not apply to the rental of motor vehicles to a church, or the rental of motor vehicles to a nonprofit religious organization that has received a determination of exemption from the internal revenue service under § 501(c)(3) of the Internal Revenue Code ( 26 U.S.C. § 501(c)(3) ) and is currently operating under it; provided, that the church or nonprofit religious organization holds a current certificate of sales or use tax exemption from the department of revenue pursuant to § 67-6-322 .
Acts 1994, ch. 835, § 1.
Tenn. Code Ann. § 67-4-1029 — TN Code / Title 67 / Chapter 4 / Section 67-4-1029
Delivery sales of cigarettes - Enforcement
Status: in_force

(a) As used in this section: (1) "Cigarette" has the same meaning as in § 47-31-102 ; and (2) "Person" means and includes every individual, partnership, firm, association, corporation, limited liability company, joint-stock company, state, political subdivision, Native American tribe, tribal government or subdivision, or any other entity, group, or syndicate. (b) Except for sales to licensed wholesale dealers and jobbers, it is unlawful for any person to cause cigarettes either ordered by or through or purchased by or through the mail, a delivery service, the internet, telephone, or some other electronic method to be shipped or transported to any person in this state without such products having the appropriate Tennessee tax paid by a licensed wholesale dealer and jobber pursuant to the rates set forth in §§ 67-4-1004 and 67-4-1005 . (c) After becoming a licensed wholesale dealer and jobber pursuant to § 67-4-1015 , the wholesale dealer and jobber may sell cigarettes to state retail dealers after applying the appropriate tax stamp to all packs of cigarettes sold, and after paying the appropriate tobacco tax on roll your own tobacco products. (d) It is unlawful for a wholesale dealer and jobber or a distributor to sell cigarettes directly to a consumer located within the state. (e) Retail dealers may receive and sell directly to state consumers cigarettes, including roll your own tobacco products, provided that a wholesale dealer and jobber has paid the Tennessee tobacco tax on the products. (f) In addition to any act that may be taken by the commissioner to enforce this section, the attorney general and reporter may bring an action to prevent or restrain violations of this section by any person, or any person controlling such person. Such action may be brought in Davidson County circuit or chancery court or any competent jurisdiction in the county where the alleged violation of this part took place or is about to take place, or in a county in which such person resides, conducts, transacts or has transacted business, or in the county in which such person can be found. (g) In addition to other remedies available pursuant to law, regulation, or rule, the attorney general and reporter may also seek the following: (1) Orders and statutory injunctions to prevent violations of this section. Such orders and injunctions shall be issued without bond being given by the state, and shall be statutory injunctions requiring a substantial showing that the nonmoving party is violating or has violated this section. In seeking such orders and injunctions, the attorney general and reporter is not required to show a likelihood of irreparable harm; (2) An order temporarily or permanently revoking a license or certificate authorizing the person to engage in business in this state; (3) A civil penalty of up to five thousand dollars ($5,000) for each violation of this section. For purposes of this subdivision (g)(3), each shipment or transport of cigarettes constitutes a separate violation; or (4) A civil penalty of up to ten thousand dollars ($10,000) for each and every knowing violation of the terms of an injunction or order issued under this section. (h) When considering the amount of civil penalties to be awarded under this section, the court should give weight and consideration to the following factors: (1) Whether the violation is intentional; (2) The good or bad faith of the violator; (3) Whether the person engaged in the prohibited act has violated any laws, regulations or rules relating to tobacco; (4) The violator's ability to pay; (5) The amount, number, volume, weight, cost, or other measure of cigarettes involved in the violation; (6) The number of packages or mailings involved in the violation; (7) Whether the violation is an isolated act or part of a sequence or series of violations; (8) The potential injury to the public; (9) The public's interest in eliminating the benefits derived by the violators from the violations; and (10) The need to deter future violations. (i) In any successful action initiated by the attorney general and reporter, the court shall order reimbursement to the attorney general and reporter for the reasonable costs and expenses of investigation and prosecution of actions under this section, including attorneys' fees. (j) Nothing in this section shall be construed to directly or indirectly modify or amend any aspect of any provisions of the Tennessee Tobacco Manufacturers Escrow Fund Act of 1999, compiled in title 47, chapter 31, the related provisions regarding the tobacco settlement funds, compiled in part 26 of this chapter, or any provisions related to civil penalties not contained in this section. (k) Unless otherwise expressly provided herein, the remedies and penalties provided by this section are cumulative and supplemental to each other and to the remedies and penalties available under any other laws, regulations or rules. Amended by 2014 Tenn. Acts, ch. 749, s 6, eff. 4/22/2014. Acts 2005, ch. 388, §§ 2 - 4.
(a) As used in this section: (1) "Cigarette" has the same meaning as in § 47-31-102 ; and (2) "Person" means and includes every individual, partnership, firm, association, corporation, limited liability company, joint-stock company, state, political subdivision, Native American tribe, tribal government or subdivision, or any other entity, group, or syndicate.
(1) "Cigarette" has the same meaning as in § 47-31-102 ; and
(2) "Person" means and includes every individual, partnership, firm, association, corporation, limited liability company, joint-stock company, state, political subdivision, Native American tribe, tribal government or subdivision, or any other entity, group, or syndicate.
(b) Except for sales to licensed wholesale dealers and jobbers, it is unlawful for any person to cause cigarettes either ordered by or through or purchased by or through the mail, a delivery service, the internet, telephone, or some other electronic method to be shipped or transported to any person in this state without such products having the appropriate Tennessee tax paid by a licensed wholesale dealer and jobber pursuant to the rates set forth in §§ 67-4-1004 and 67-4-1005 .
(c) After becoming a licensed wholesale dealer and jobber pursuant to § 67-4-1015 , the wholesale dealer and jobber may sell cigarettes to state retail dealers after applying the appropriate tax stamp to all packs of cigarettes sold, and after paying the appropriate tobacco tax on roll your own tobacco products.
(d) It is unlawful for a wholesale dealer and jobber or a distributor to sell cigarettes directly to a consumer located within the state.
(e) Retail dealers may receive and sell directly to state consumers cigarettes, including roll your own tobacco products, provided that a wholesale dealer and jobber has paid the Tennessee tobacco tax on the products.
(f) In addition to any act that may be taken by the commissioner to enforce this section, the attorney general and reporter may bring an action to prevent or restrain violations of this section by any person, or any person controlling such person. Such action may be brought in Davidson County circuit or chancery court or any competent jurisdiction in the county where the alleged violation of this part took place or is about to take place, or in a county in which such person resides, conducts, transacts or has transacted business, or in the county in which such person can be found.
(g) In addition to other remedies available pursuant to law, regulation, or rule, the attorney general and reporter may also seek the following: (1) Orders and statutory injunctions to prevent violations of this section. Such orders and injunctions shall be issued without bond being given by the state, and shall be statutory injunctions requiring a substantial showing that the nonmoving party is violating or has violated this section. In seeking such orders and injunctions, the attorney general and reporter is not required to show a likelihood of irreparable harm; (2) An order temporarily or permanently revoking a license or certificate authorizing the person to engage in business in this state; (3) A civil penalty of up to five thousand dollars ($5,000) for each violation of this section. For purposes of this subdivision (g)(3), each shipment or transport of cigarettes constitutes a separate violation; or (4) A civil penalty of up to ten thousand dollars ($10,000) for each and every knowing violation of the terms of an injunction or order issued under this section.
(1) Orders and statutory injunctions to prevent violations of this section. Such orders and injunctions shall be issued without bond being given by the state, and shall be statutory injunctions requiring a substantial showing that the nonmoving party is violating or has violated this section. In seeking such orders and injunctions, the attorney general and reporter is not required to show a likelihood of irreparable harm;
(2) An order temporarily or permanently revoking a license or certificate authorizing the person to engage in business in this state;
(3) A civil penalty of up to five thousand dollars ($5,000) for each violation of this section. For purposes of this subdivision (g)(3), each shipment or transport of cigarettes constitutes a separate violation; or
(4) A civil penalty of up to ten thousand dollars ($10,000) for each and every knowing violation of the terms of an injunction or order issued under this section.
(h) When considering the amount of civil penalties to be awarded under this section, the court should give weight and consideration to the following factors: (1) Whether the violation is intentional; (2) The good or bad faith of the violator; (3) Whether the person engaged in the prohibited act has violated any laws, regulations or rules relating to tobacco; (4) The violator's ability to pay; (5) The amount, number, volume, weight, cost, or other measure of cigarettes involved in the violation; (6) The number of packages or mailings involved in the violation; (7) Whether the violation is an isolated act or part of a sequence or series of violations; (8) The potential injury to the public; (9) The public's interest in eliminating the benefits derived by the violators from the violations; and (10) The need to deter future violations.
(1) Whether the violation is intentional;
(2) The good or bad faith of the violator;
(3) Whether the person engaged in the prohibited act has violated any laws, regulations or rules relating to tobacco;
(4) The violator's ability to pay;
(5) The amount, number, volume, weight, cost, or other measure of cigarettes involved in the violation;
(6) The number of packages or mailings involved in the violation;
(7) Whether the violation is an isolated act or part of a sequence or series of violations;
(8) The potential injury to the public;
(9) The public's interest in eliminating the benefits derived by the violators from the violations; and
(10) The need to deter future violations.
(i) In any successful action initiated by the attorney general and reporter, the court shall order reimbursement to the attorney general and reporter for the reasonable costs and expenses of investigation and prosecution of actions under this section, including attorneys' fees.
(j) Nothing in this section shall be construed to directly or indirectly modify or amend any aspect of any provisions of the Tennessee Tobacco Manufacturers Escrow Fund Act of 1999, compiled in title 47, chapter 31, the related provisions regarding the tobacco settlement funds, compiled in part 26 of this chapter, or any provisions related to civil penalties not contained in this section.
(k) Unless otherwise expressly provided herein, the remedies and penalties provided by this section are cumulative and supplemental to each other and to the remedies and penalties available under any other laws, regulations or rules.
Amended by 2014 Tenn. Acts, ch. 749, s 6, eff. 4/22/2014.
Acts 2005, ch. 388, §§ 2 - 4.
Tenn. Code Ann. § 67-5-1313 — TN Code / Title 67 / Chapter 5 / Section 67-5-1313
Electric light companies and electric cooperatives
Status: in_force

In addition to the information required by § 67-5-1303 , the schedules and statements submitted by electric light companies and electric cooperatives, not municipally owned, shall include: (1) The number of miles of poles and wires of its entire system, the nature of its wire system and the number of miles inside and outside the corporate limits of the city or town in which its property is located; (2) The total number of transformers owned by the company, their location and their value; (3) The description and location of all of its property, real and personal; and (4) The gross income of the company from its operation and from all other sources and its operating expenses, which operating expenses are to be set out in detail. Acts 1973, ch. 226, § 11; T.C.A., § 67-913.
In addition to the information required by § 67-5-1303 , the schedules and statements submitted by electric light companies and electric cooperatives, not municipally owned, shall include:
(1) The number of miles of poles and wires of its entire system, the nature of its wire system and the number of miles inside and outside the corporate limits of the city or town in which its property is located;
(2) The total number of transformers owned by the company, their location and their value;
(3) The description and location of all of its property, real and personal; and
(4) The gross income of the company from its operation and from all other sources and its operating expenses, which operating expenses are to be set out in detail.
Acts 1973, ch. 226, § 11; T.C.A., § 67-913.
Tenn. Code Ann. § 67-1-1808 — TN Code / Title 67 / Chapter 1 / Section 67-1-1808
Offset of the taxpayer's refund of taxes by the amount of debt owed to a claimant
Status: in_force

(a) As used in this section, unless the context otherwise requires: (1) "Claimant" means any state agency, department, board, bureau, commission, or authority to which a taxpayer owes any debt listed in subsection (d) or that acts on behalf of a person to collect such debt. Such term may also include a clerk who serves a court of criminal jurisdiction, if the clerk has determined to participate in the offset provisions of this section; (2) "Debt" means any money, unpaid account, or sum due and owing any claimant by a taxpayer, or any money, unpaid account, or sum that is due and owing any person and is legally enforceable by the claimant; (3) "Debtor" means a person owing a debt to a claimant and who files a claim for a tax refund, subject to the further requirements of this section; (4) "Offset" or "set off" means the application of all or part of a taxpayer's refund of taxes to pay a taxpayer's debt owed to a claimant; and (5) "Person" or "taxpayer" means every individual, firm, partnership, joint venture, association, corporation, limited liability company, cooperative, trust, regulated investment company, receiver, and syndicate. (b) Whenever a taxpayer has, on the date of payment, paid taxes in error or paid taxes against any statute, rule, regulation or clause of the constitution of the state or of the United States, and is due a refund pursuant to this part, and the taxpayer reports to be a debtor in the manner provided by § 67-1-1802(a)(1)(B)(ii) , the commissioner shall offset the taxpayer's refund of taxes by the amount of the debt as provided in this section. (c) This section shall apply to any claim for refund of state taxes filed by any taxpayer in the amount of two hundred dollars ($200) or more that is not eligible for automatic credit or refund pursuant to § 67-1-1802(a)(1)(A) . A tax refund shall not be offset to pay the debt of any person who is not the taxpayer due the refund. Whenever a claim for refund is filed by two (2) or more persons, who were jointly and severally liable for the taxes paid, the entire refund amount shall be subject to offset to pay the debt or debts of one (1) or more of the taxpayers. (d) The following debts shall be used to offset a refund of taxes: (1) State tax liabilities due pursuant to this title; (2) Child support due pursuant to title 36, chapters 2, 5, or 6, or pursuant to title 37, chapter 1; (3) Amounts owed to the unemployment compensation fund pursuant to title 50, chapter 7; (4) Obligations owing to the bureau of TennCare for overpayment of medical assistance benefits pursuant to title 71, chapter 5; (5) Student loan or other obligation due to the Tennessee student assistance corporation pursuant to title 49, chapter 4; (6) Fees, costs or restitution collected by a clerk who serves a court of criminal jurisdiction, if reported pursuant to subsection (f); (7) Costs of incarceration due pursuant to title 41, chapter 21, part 9; (8) Judgments and liens in favor of a claimant; and (9) All other debts owed to any other claimant. (e) In the event that a taxpayer owes debts to several claimants, priority of set off against any refund shall be as follows: (1) State tax liabilities; (2) Child support; (3) Judgments and liens in favor of a claimant in order of the date entered or perfected; and (4) All other debts owed to any other claimant in the order in which the debt was incurred. (f) (1) When a taxpayer reports that any debt is owed to a claimant in the manner provided by § 67-1-1802(a)(1)(B)(ii) , and if the commissioner determines such taxpayer is entitled to a refund, then the commissioner shall notify the treasurer and each claimant identified in the documentation accompanying the claim for refund of the department's intent to issue a refund. Such notification shall also include: (A) The name and address of the taxpayer; (B) The original tax refund amount; (C) The proposed offset amount; and (D) The proposed net tax refund amount. (2) The notification to the treasurer may include any other information that would assist the treasurer in determining whether the taxpayer may be the owner of unclaimed property held in trust on the owner's behalf. Following receipt of the notification, the treasurer shall verify to the department whether or not the taxpayer is the owner of unclaimed property. The amount of the debt owing to a claimant shall be set off against the amount of the unclaimed property otherwise due the taxpayer. (3) Following receipt of the notification provided in subdivision (f)(1) and prior to an offset of a tax refund, a claimant shall provide written notice to the debtor, and to the commissioner of revenue, of the claimant's intent to set off all or part of the tax refund to pay the debt. Such notice shall set forth the: (A) Original tax refund amount; (B) Proposed offset amount; (C) Proposed net tax refund amount; (D) Basis for a claim to the debt and set off; (E) Taxpayer's right to appeal the proposed offset as provided in subsection (g); and (F) A toll-free telephone number or other contact information which the debtor may use in obtaining information from the claimant concerning the debt and the proposed offset action. (g) (1) (A) If any debt has been previously determined to exist and to be due and owing as a result of a final order issued pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or a judgment entered by any court of record, then a debtor shall be afforded an opportunity for a hearing to determine the continued existence of the debt and whether it remains outstanding. No hearing shall be conducted as provided in this subdivision (g)(1)(A) unless the time limits for appealing any prior final order or judgment have expired as provided by law. (B) Any debtor who desires a hearing shall submit to the department of revenue a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). If a hearing is requested, then it shall be held by the commissioner of revenue or the commissioner's designee as provided in the Uniform Administrative Procedures Act. The commissioner may request that an administrative judge or hearing officer employed in the office of the secretary of state conduct the hearing as provided in the Uniform Administrative Procedures Act. (2) (A) If any debt has not been determined to exist, or to be due and owing as a result of a prior final order or judgment, as provided in subdivision (g)(1)(A), then a debtor shall be afforded an opportunity for a hearing, in accordance with subdivision (g)(2)(B), to determine the existence of the debt, and if so, whether the claimed debt asserted as due and owing is correct. (B) Any debtor who desires a hearing shall submit to the claimant a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). The claimant shall notify the department of revenue as to whether the taxpayer filed a timely request for hearing upon the expiration of the twenty-day period for filing such request or receipt of a request for a hearing. If a hearing is requested, then it shall be held by the claimant or the claimant's designee as provided in the Uniform Administrative Procedures Act. If the amount due is incorrect, a proper adjustment shall be made. After entry of a final order following any hearing, the claimant shall send a copy of the final order to the commissioner of revenue. (3) All final orders issued pursuant to the Uniform Administrative Procedures Act, as provided in subdivision (g)(1) or (g)(2), shall set forth the amount owed by the taxpayer to the claimant that is subject to set off. (h) (1) The commissioner of revenue shall set off the appropriate amount of a debt against the tax refund if a taxpayer fails to file a timely request for a hearing, or upon receipt of a final order, or as soon thereafter as practicable. Any portion of a tax refund remaining after the offset shall be refunded or credited to a taxpayer, as requested in the claim for refund. The commissioner shall ensure that the appropriate amount of the refund subject to set off is used to satisfy any debts owed by the taxpayer. (2) The commissioner of revenue shall notify the taxpayer in writing and provide an accounting of the action taken on any refund whenever the commissioner sets off a taxpayer's refund pursuant to this section. (3) The commissioner of revenue may require a claimant to pay a fee to reimburse the department of revenue's costs of collecting the debt on behalf of a claimant; provided, that the fee shall not exceed five dollars ($5.00) per offset action. (i) (1) On an annual basis, the department of revenue shall submit to the following claimants a list of taxpayers for the previous year who filed claims for refunds and received such refunds in the amount of two hundred dollars ($200) or more and for which no debts were reported in accordance with § 67-1-1802(a)(1)(B)(i) : (A) Department of human services; (B) Department of labor and workforce development; (C) Bureau of TennCare; (D) Tennessee student assistance corporation; (E) Administrative office of the courts; and (F) Attorney general and reporter. (2) If any such claimant receiving such list has information in its records verifying that a named taxpayer owed a debt as of the date of the claim for refund, such claimant shall notify the department of revenue of the name of the debtor, the amount of the debt, and the date on which the debt was incurred. The clerk who serves a court of criminal jurisdiction shall notify the department if the clerk has determined to participate in the offset provisions of this section. Notwithstanding any other law to the contrary, the department of revenue shall make an assessment against the taxpayer to recover the amount of the debt that would have otherwise been offset against the refund payment. The procedures established in subsection (g) to challenge a proposed offset shall be the sole and exclusive remedies for challenging an assessment made pursuant to this subsection (i); provided, that the debtor is provided information in the notice of assessment about the procedures for challenging such assessment and the twenty-day period for requesting a hearing shall begin from the date of the notice of assessment. Nothing in this section shall require any state agency or its employees or officers to violate strict standards of confidentiality set forth in applicable federal or state law or regulations. (j) Notwithstanding part 17 of this chapter, or any other law prohibiting disclosure of a taxpayer's identity or tax information, all information exchanged among the department of revenue, the department of treasury, and any claimant necessary to accomplish the purpose of this section is lawful. Acts 2010, ch. 1113, § 7.
(a) As used in this section, unless the context otherwise requires: (1) "Claimant" means any state agency, department, board, bureau, commission, or authority to which a taxpayer owes any debt listed in subsection (d) or that acts on behalf of a person to collect such debt. Such term may also include a clerk who serves a court of criminal jurisdiction, if the clerk has determined to participate in the offset provisions of this section; (2) "Debt" means any money, unpaid account, or sum due and owing any claimant by a taxpayer, or any money, unpaid account, or sum that is due and owing any person and is legally enforceable by the claimant; (3) "Debtor" means a person owing a debt to a claimant and who files a claim for a tax refund, subject to the further requirements of this section; (4) "Offset" or "set off" means the application of all or part of a taxpayer's refund of taxes to pay a taxpayer's debt owed to a claimant; and (5) "Person" or "taxpayer" means every individual, firm, partnership, joint venture, association, corporation, limited liability company, cooperative, trust, regulated investment company, receiver, and syndicate.
(1) "Claimant" means any state agency, department, board, bureau, commission, or authority to which a taxpayer owes any debt listed in subsection (d) or that acts on behalf of a person to collect such debt. Such term may also include a clerk who serves a court of criminal jurisdiction, if the clerk has determined to participate in the offset provisions of this section;
(2) "Debt" means any money, unpaid account, or sum due and owing any claimant by a taxpayer, or any money, unpaid account, or sum that is due and owing any person and is legally enforceable by the claimant;
(3) "Debtor" means a person owing a debt to a claimant and who files a claim for a tax refund, subject to the further requirements of this section;
(4) "Offset" or "set off" means the application of all or part of a taxpayer's refund of taxes to pay a taxpayer's debt owed to a claimant; and
(5) "Person" or "taxpayer" means every individual, firm, partnership, joint venture, association, corporation, limited liability company, cooperative, trust, regulated investment company, receiver, and syndicate.
(b) Whenever a taxpayer has, on the date of payment, paid taxes in error or paid taxes against any statute, rule, regulation or clause of the constitution of the state or of the United States, and is due a refund pursuant to this part, and the taxpayer reports to be a debtor in the manner provided by § 67-1-1802(a)(1)(B)(ii) , the commissioner shall offset the taxpayer's refund of taxes by the amount of the debt as provided in this section.
(c) This section shall apply to any claim for refund of state taxes filed by any taxpayer in the amount of two hundred dollars ($200) or more that is not eligible for automatic credit or refund pursuant to § 67-1-1802(a)(1)(A) . A tax refund shall not be offset to pay the debt of any person who is not the taxpayer due the refund. Whenever a claim for refund is filed by two (2) or more persons, who were jointly and severally liable for the taxes paid, the entire refund amount shall be subject to offset to pay the debt or debts of one (1) or more of the taxpayers.
(d) The following debts shall be used to offset a refund of taxes: (1) State tax liabilities due pursuant to this title; (2) Child support due pursuant to title 36, chapters 2, 5, or 6, or pursuant to title 37, chapter 1; (3) Amounts owed to the unemployment compensation fund pursuant to title 50, chapter 7; (4) Obligations owing to the bureau of TennCare for overpayment of medical assistance benefits pursuant to title 71, chapter 5; (5) Student loan or other obligation due to the Tennessee student assistance corporation pursuant to title 49, chapter 4; (6) Fees, costs or restitution collected by a clerk who serves a court of criminal jurisdiction, if reported pursuant to subsection (f); (7) Costs of incarceration due pursuant to title 41, chapter 21, part 9; (8) Judgments and liens in favor of a claimant; and (9) All other debts owed to any other claimant.
(1) State tax liabilities due pursuant to this title;
(2) Child support due pursuant to title 36, chapters 2, 5, or 6, or pursuant to title 37, chapter 1;
(3) Amounts owed to the unemployment compensation fund pursuant to title 50, chapter 7;
(4) Obligations owing to the bureau of TennCare for overpayment of medical assistance benefits pursuant to title 71, chapter 5;
(5) Student loan or other obligation due to the Tennessee student assistance corporation pursuant to title 49, chapter 4;
(6) Fees, costs or restitution collected by a clerk who serves a court of criminal jurisdiction, if reported pursuant to subsection (f);
(7) Costs of incarceration due pursuant to title 41, chapter 21, part 9;
(8) Judgments and liens in favor of a claimant; and
(9) All other debts owed to any other claimant.
(e) In the event that a taxpayer owes debts to several claimants, priority of set off against any refund shall be as follows: (1) State tax liabilities; (2) Child support; (3) Judgments and liens in favor of a claimant in order of the date entered or perfected; and (4) All other debts owed to any other claimant in the order in which the debt was incurred.
(1) State tax liabilities;
(2) Child support;
(3) Judgments and liens in favor of a claimant in order of the date entered or perfected; and
(4) All other debts owed to any other claimant in the order in which the debt was incurred.
(f) (1) When a taxpayer reports that any debt is owed to a claimant in the manner provided by § 67-1-1802(a)(1)(B)(ii) , and if the commissioner determines such taxpayer is entitled to a refund, then the commissioner shall notify the treasurer and each claimant identified in the documentation accompanying the claim for refund of the department's intent to issue a refund. Such notification shall also include: (A) The name and address of the taxpayer; (B) The original tax refund amount; (C) The proposed offset amount; and (D) The proposed net tax refund amount. (2) The notification to the treasurer may include any other information that would assist the treasurer in determining whether the taxpayer may be the owner of unclaimed property held in trust on the owner's behalf. Following receipt of the notification, the treasurer shall verify to the department whether or not the taxpayer is the owner of unclaimed property. The amount of the debt owing to a claimant shall be set off against the amount of the unclaimed property otherwise due the taxpayer. (3) Following receipt of the notification provided in subdivision (f)(1) and prior to an offset of a tax refund, a claimant shall provide written notice to the debtor, and to the commissioner of revenue, of the claimant's intent to set off all or part of the tax refund to pay the debt. Such notice shall set forth the: (A) Original tax refund amount; (B) Proposed offset amount; (C) Proposed net tax refund amount; (D) Basis for a claim to the debt and set off; (E) Taxpayer's right to appeal the proposed offset as provided in subsection (g); and (F) A toll-free telephone number or other contact information which the debtor may use in obtaining information from the claimant concerning the debt and the proposed offset action.
(1) When a taxpayer reports that any debt is owed to a claimant in the manner provided by § 67-1-1802(a)(1)(B)(ii) , and if the commissioner determines such taxpayer is entitled to a refund, then the commissioner shall notify the treasurer and each claimant identified in the documentation accompanying the claim for refund of the department's intent to issue a refund. Such notification shall also include: (A) The name and address of the taxpayer; (B) The original tax refund amount; (C) The proposed offset amount; and (D) The proposed net tax refund amount.
(A) The name and address of the taxpayer;
(B) The original tax refund amount;
(C) The proposed offset amount; and
(D) The proposed net tax refund amount.
(2) The notification to the treasurer may include any other information that would assist the treasurer in determining whether the taxpayer may be the owner of unclaimed property held in trust on the owner's behalf. Following receipt of the notification, the treasurer shall verify to the department whether or not the taxpayer is the owner of unclaimed property. The amount of the debt owing to a claimant shall be set off against the amount of the unclaimed property otherwise due the taxpayer.
(3) Following receipt of the notification provided in subdivision (f)(1) and prior to an offset of a tax refund, a claimant shall provide written notice to the debtor, and to the commissioner of revenue, of the claimant's intent to set off all or part of the tax refund to pay the debt. Such notice shall set forth the: (A) Original tax refund amount; (B) Proposed offset amount; (C) Proposed net tax refund amount; (D) Basis for a claim to the debt and set off; (E) Taxpayer's right to appeal the proposed offset as provided in subsection (g); and (F) A toll-free telephone number or other contact information which the debtor may use in obtaining information from the claimant concerning the debt and the proposed offset action.
(A) Original tax refund amount;
(B) Proposed offset amount;
(C) Proposed net tax refund amount;
(D) Basis for a claim to the debt and set off;
(E) Taxpayer's right to appeal the proposed offset as provided in subsection (g); and
(F) A toll-free telephone number or other contact information which the debtor may use in obtaining information from the claimant concerning the debt and the proposed offset action.
(g) (1) (A) If any debt has been previously determined to exist and to be due and owing as a result of a final order issued pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or a judgment entered by any court of record, then a debtor shall be afforded an opportunity for a hearing to determine the continued existence of the debt and whether it remains outstanding. No hearing shall be conducted as provided in this subdivision (g)(1)(A) unless the time limits for appealing any prior final order or judgment have expired as provided by law. (B) Any debtor who desires a hearing shall submit to the department of revenue a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). If a hearing is requested, then it shall be held by the commissioner of revenue or the commissioner's designee as provided in the Uniform Administrative Procedures Act. The commissioner may request that an administrative judge or hearing officer employed in the office of the secretary of state conduct the hearing as provided in the Uniform Administrative Procedures Act. (2) (A) If any debt has not been determined to exist, or to be due and owing as a result of a prior final order or judgment, as provided in subdivision (g)(1)(A), then a debtor shall be afforded an opportunity for a hearing, in accordance with subdivision (g)(2)(B), to determine the existence of the debt, and if so, whether the claimed debt asserted as due and owing is correct. (B) Any debtor who desires a hearing shall submit to the claimant a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). The claimant shall notify the department of revenue as to whether the taxpayer filed a timely request for hearing upon the expiration of the twenty-day period for filing such request or receipt of a request for a hearing. If a hearing is requested, then it shall be held by the claimant or the claimant's designee as provided in the Uniform Administrative Procedures Act. If the amount due is incorrect, a proper adjustment shall be made. After entry of a final order following any hearing, the claimant shall send a copy of the final order to the commissioner of revenue. (3) All final orders issued pursuant to the Uniform Administrative Procedures Act, as provided in subdivision (g)(1) or (g)(2), shall set forth the amount owed by the taxpayer to the claimant that is subject to set off.
(1) (A) If any debt has been previously determined to exist and to be due and owing as a result of a final order issued pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or a judgment entered by any court of record, then a debtor shall be afforded an opportunity for a hearing to determine the continued existence of the debt and whether it remains outstanding. No hearing shall be conducted as provided in this subdivision (g)(1)(A) unless the time limits for appealing any prior final order or judgment have expired as provided by law. (B) Any debtor who desires a hearing shall submit to the department of revenue a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). If a hearing is requested, then it shall be held by the commissioner of revenue or the commissioner's designee as provided in the Uniform Administrative Procedures Act. The commissioner may request that an administrative judge or hearing officer employed in the office of the secretary of state conduct the hearing as provided in the Uniform Administrative Procedures Act.
(A) If any debt has been previously determined to exist and to be due and owing as a result of a final order issued pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or a judgment entered by any court of record, then a debtor shall be afforded an opportunity for a hearing to determine the continued existence of the debt and whether it remains outstanding. No hearing shall be conducted as provided in this subdivision (g)(1)(A) unless the time limits for appealing any prior final order or judgment have expired as provided by law.
(B) Any debtor who desires a hearing shall submit to the department of revenue a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). If a hearing is requested, then it shall be held by the commissioner of revenue or the commissioner's designee as provided in the Uniform Administrative Procedures Act. The commissioner may request that an administrative judge or hearing officer employed in the office of the secretary of state conduct the hearing as provided in the Uniform Administrative Procedures Act.
(2) (A) If any debt has not been determined to exist, or to be due and owing as a result of a prior final order or judgment, as provided in subdivision (g)(1)(A), then a debtor shall be afforded an opportunity for a hearing, in accordance with subdivision (g)(2)(B), to determine the existence of the debt, and if so, whether the claimed debt asserted as due and owing is correct. (B) Any debtor who desires a hearing shall submit to the claimant a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). The claimant shall notify the department of revenue as to whether the taxpayer filed a timely request for hearing upon the expiration of the twenty-day period for filing such request or receipt of a request for a hearing. If a hearing is requested, then it shall be held by the claimant or the claimant's designee as provided in the Uniform Administrative Procedures Act. If the amount due is incorrect, a proper adjustment shall be made. After entry of a final order following any hearing, the claimant shall send a copy of the final order to the commissioner of revenue.
(A) If any debt has not been determined to exist, or to be due and owing as a result of a prior final order or judgment, as provided in subdivision (g)(1)(A), then a debtor shall be afforded an opportunity for a hearing, in accordance with subdivision (g)(2)(B), to determine the existence of the debt, and if so, whether the claimed debt asserted as due and owing is correct.
(B) Any debtor who desires a hearing shall submit to the claimant a written request for a hearing within twenty (20) days of receipt of the notice provided in subdivision (f)(3). The claimant shall notify the department of revenue as to whether the taxpayer filed a timely request for hearing upon the expiration of the twenty-day period for filing such request or receipt of a request for a hearing. If a hearing is requested, then it shall be held by the claimant or the claimant's designee as provided in the Uniform Administrative Procedures Act. If the amount due is incorrect, a proper adjustment shall be made. After entry of a final order following any hearing, the claimant shall send a copy of the final order to the commissioner of revenue.
(3) All final orders issued pursuant to the Uniform Administrative Procedures Act, as provided in subdivision (g)(1) or (g)(2), shall set forth the amount owed by the taxpayer to the claimant that is subject to set off.
(h) (1) The commissioner of revenue shall set off the appropriate amount of a debt against the tax refund if a taxpayer fails to file a timely request for a hearing, or upon receipt of a final order, or as soon thereafter as practicable. Any portion of a tax refund remaining after the offset shall be refunded or credited to a taxpayer, as requested in the claim for refund. The commissioner shall ensure that the appropriate amount of the refund subject to set off is used to satisfy any debts owed by the taxpayer. (2) The commissioner of revenue shall notify the taxpayer in writing and provide an accounting of the action taken on any refund whenever the commissioner sets off a taxpayer's refund pursuant to this section. (3) The commissioner of revenue may require a claimant to pay a fee to reimburse the department of revenue's costs of collecting the debt on behalf of a claimant; provided, that the fee shall not exceed five dollars ($5.00) per offset action.
(1) The commissioner of revenue shall set off the appropriate amount of a debt against the tax refund if a taxpayer fails to file a timely request for a hearing, or upon receipt of a final order, or as soon thereafter as practicable. Any portion of a tax refund remaining after the offset shall be refunded or credited to a taxpayer, as requested in the claim for refund. The commissioner shall ensure that the appropriate amount of the refund subject to set off is used to satisfy any debts owed by the taxpayer.
(2) The commissioner of revenue shall notify the taxpayer in writing and provide an accounting of the action taken on any refund whenever the commissioner sets off a taxpayer's refund pursuant to this section.
(3) The commissioner of revenue may require a claimant to pay a fee to reimburse the department of revenue's costs of collecting the debt on behalf of a claimant; provided, that the fee shall not exceed five dollars ($5.00) per offset action.
(i) (1) On an annual basis, the department of revenue shall submit to the following claimants a list of taxpayers for the previous year who filed claims for refunds and received such refunds in the amount of two hundred dollars ($200) or more and for which no debts were reported in accordance with § 67-1-1802(a)(1)(B)(i) : (A) Department of human services; (B) Department of labor and workforce development; (C) Bureau of TennCare; (D) Tennessee student assistance corporation; (E) Administrative office of the courts; and (F) Attorney general and reporter. (2) If any such claimant receiving such list has information in its records verifying that a named taxpayer owed a debt as of the date of the claim for refund, such claimant shall notify the department of revenue of the name of the debtor, the amount of the debt, and the date on which the debt was incurred. The clerk who serves a court of criminal jurisdiction shall notify the department if the clerk has determined to participate in the offset provisions of this section. Notwithstanding any other law to the contrary, the department of revenue shall make an assessment against the taxpayer to recover the amount of the debt that would have otherwise been offset against the refund payment. The procedures established in subsection (g) to challenge a proposed offset shall be the sole and exclusive remedies for challenging an assessment made pursuant to this subsection (i); provided, that the debtor is provided information in the notice of assessment about the procedures for challenging such assessment and the twenty-day period for requesting a hearing shall begin from the date of the notice of assessment. Nothing in this section shall require any state agency or its employees or officers to violate strict standards of confidentiality set forth in applicable federal or state law or regulations.
(1) On an annual basis, the department of revenue shall submit to the following claimants a list of taxpayers for the previous year who filed claims for refunds and received such refunds in the amount of two hundred dollars ($200) or more and for which no debts were reported in accordance with § 67-1-1802(a)(1)(B)(i) : (A) Department of human services; (B) Department of labor and workforce development; (C) Bureau of TennCare; (D) Tennessee student assistance corporation; (E) Administrative office of the courts; and (F) Attorney general and reporter.
(A) Department of human services;
(B) Department of labor and workforce development;
(C) Bureau of TennCare;
(D) Tennessee student assistance corporation;
(E) Administrative office of the courts; and
(F) Attorney general and reporter.
(2) If any such claimant receiving such list has information in its records verifying that a named taxpayer owed a debt as of the date of the claim for refund, such claimant shall notify the department of revenue of the name of the debtor, the amount of the debt, and the date on which the debt was incurred. The clerk who serves a court of criminal jurisdiction shall notify the department if the clerk has determined to participate in the offset provisions of this section. Notwithstanding any other law to the contrary, the department of revenue shall make an assessment against the taxpayer to recover the amount of the debt that would have otherwise been offset against the refund payment. The procedures established in subsection (g) to challenge a proposed offset shall be the sole and exclusive remedies for challenging an assessment made pursuant to this subsection (i); provided, that the debtor is provided information in the notice of assessment about the procedures for challenging such assessment and the twenty-day period for requesting a hearing shall begin from the date of the notice of assessment. Nothing in this section shall require any state agency or its employees or officers to violate strict standards of confidentiality set forth in applicable federal or state law or regulations.
(j) Notwithstanding part 17 of this chapter, or any other law prohibiting disclosure of a taxpayer's identity or tax information, all information exchanged among the department of revenue, the department of treasury, and any claimant necessary to accomplish the purpose of this section is lawful.
Acts 2010, ch. 1113, § 7.