2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 6 - SALES AND USE TAXES (§§ 67-6-101 — 67-6-907) › Part 3 - EXEMPTIONS (§§ 67-6-301 — 67-6-396) › Section 67-6-329 - Miscellaneous exemptions

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