reglab/statecodes huggingface dataset:
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 67-6-341 - Credit for sales tax due on motor vehicle incentive payments

(a)
A credit shall be granted in the manner provided in subsection (b) for the amount of the sales tax due on motor vehicle manufacturer's incentive payments included in the sales price of motor vehicles sold at retail.
(b)
The credit shall apply such that sales tax is owed on the sales price of the motor vehicle less any otherwise taxable motor vehicle manufacturer's incentive payment associated with the sale.
(c)
For purposes of this section, unless the context otherwise requires:
(1)
"Motor vehicle manufacturer's incentive payment" means the amount due to the retailer pursuant to a motor vehicle manufacturer's incentive purchase program; and
(2)
"Motor vehicle manufacturer's incentive purchase program" means a program sponsored by a motor vehicle manufacturer pursuant to which an amount, whether paid in money, credit, or otherwise, is received by a retailer from a motor vehicle manufacturer based upon the unit price of motor vehicles sold at retail that requires the retailer to reduce the sales price of the product to the purchaser without the use of a manufacturer's coupon or redemption certificate.
Acts 2007, ch. 602, § 40.
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 67-6-342 - Telecommunications services

(a)
Charges made by local exchange carriers to interexchange carriers and long distance resellers for providing access to the local exchange area, and charges made by local exchange carriers to cellular telephone companies for interconnection to the landline network are exempt from the tax imposed by this chapter.
(b)
Charges made between local exchange carriers and interexchange carriers for the use of intercompany facilities pursuant to shared network facility arrangements are exempt from the tax imposed by this chapter.
(c)
For purposes of this section:
(1)
"Interexchange carrier" is a telecommunications service provider that provides such service only between local access and transport areas (LATAs);
(2)
"Local exchange carrier" is a telecommunications service provider that provides such service only within a LATA; and
(3)
"Long distance reseller" is a telecommunications service provider that provides service within a LATA and between LATAs.
Acts 1989, ch. 312, § 7; 2004, ch. 782, § 11.
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 67-6-343 - Motor vehicles - Exemption from sales tax

(a)
There is exempt from the sales tax the retail sale of motor vehicles subject to registration and titling in this state pursuant to §
55-3-101
that are not registered and titled in this state, but are removed for use in another state within three (3) calendar days of purchase. Use of such motor vehicles within this state subsequent to purchase, but prior to removal from the state, does not constitute a use subject to tax. For the purposes of this section, vehicles subject to registration and titling in this state pursuant to §
55-3-101
are deemed to include all off-highway motor vehicles, as defined in §
55-3-101(c)(2)
.
(b)
There is exempt from the sales tax the retail sale of trailers, as defined in §
55-1-105
, that are removed for registration and use in another state within three (3) calendar days of purchase. Use of a trailer within this state subsequent to purchase, but prior to removal from the state, does not constitute a use subject to tax.
Amended by 2023 Tenn. Acts, ch. 449, s 1, eff. 7/1/2023.
Acts 1989, ch. 430, § 2; 1992, ch. 529, § 11.
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 67-6-344 - [Repealed]

Repealed by 2023 Tenn. Acts, ch. 377, s 28, eff. 7/1/2024.
Acts 1989, ch. 496, § 1.
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 67-6-345 - Boats, motorboats and other vessels - Exemption from sales tax

There is exempt from the sales tax the retail sale of boats, motorboats and other vessels as defined by §
69-9-204
, that are subject to registration and identification in this state pursuant to §
69-9-206
, that are not registered and identified in this state, but are removed for use in another state within three (3) calendar days after physical possession of the boat, motorboat or other vessel has passed to the retail purchaser. Use of such boat, motorboat or other vessel within this state subsequent to purchase, but prior to removal from the state, does not constitute a use subject to tax.
Acts 1992, ch. 529, § 12.
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 67-6-346 - Pollution control credit

There shall be a credit of one hundred percent (100%) of the sales and use tax paid with respect to any system, method, improvement, structure, device or appliance appurtenant thereto that is required and primarily used to bring the purchaser into compliance with pollution control laws or regulations, whether federal, state, or local, when such pollution is created in the course of the purchaser's regular business activities. The credit provided in this section shall not be available to persons primarily engaged in processing, treating, or controlling pollution created by others. Copies of certificates provided for in §
67-5-604
or other evidence that is satisfactory to the commissioner shall be furnished to the commissioner by the purchaser to establish entitlement to the credit. The credit provided in this section shall also apply to machinery and equipment used to produce or store electricity in a certified green energy production facility, as defined in §
67-4-2004
. A copy of the facility certification issued by the department of environment and conservation shall be furnished to the commissioner by the taxpayer to establish entitlement to the credit. Instead of taking the credit available under this section or §
67-6-507(i) and (j)
, the purchaser may apply to the commissioner for a refund of the taxes paid or for authority to make purchases exempt from the tax.
Amended by 2022 Tenn. Acts, ch. 1139, s 3, eff. 7/1/2022.
Acts 1992, ch. 873, § 3; 1994, ch. 862, § 1; 1995, ch. 37, §§ 1, 2; 1997 , ch. 143, § 1; 2004, ch. 924, § 11; 2010 , ch. 1134, § 40.
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 67-6-347 - Helicopters and aircraft used by nonprofit groups for medical transport - Exemption from sales and use taxes

There is exempt from the sales and use tax all repair services, including parts and labor, to equipment used in connection with helicopters or other aircraft owned by not-for-profit hospitals, government entities or other not-for-profit medical facilities used for the purpose of medical evacuation or transport.
Acts 1994, ch. 749, § 1.
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 67-6-348 - Used clothing - Exemption from sales tax

(a)
There is exempt from this chapter the sale at retail of used clothing, if such clothing is sold by an institution or organization that has received a determination of exemption from the internal revenue service under
26 U.S.C. § 501(c)(3)
.
(b)
The exemption granted under subsection (a) shall be limited to such institutions or organizations that are not organized or operated for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
(c)
No institution or organization shall be exempt under subsection (a), unless the institution or organization shall have issued to it by the commissioner an exemption certificate declaring that such institution or organization is entitled to the exemption provided for by subsection (a).
(d)
The commissioner is authorized to make final determination after a hearing, if demanded, as to whether any institution or organization is entitled to the benefit of the exemption established by subsection (a).
(e)
All proceeds from sales exempted by this section must be for
26 U.S.C. § 501(c)(3)
purposes.
Acts 1994, ch. 788, § 1; 2003, ch. 357, § 52; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, § 51.
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 67-6-349 - Petroleum products sold to air common carriers for flights outside United States

(a)
There is exempt from the tax imposed by this chapter fuel and petroleum products sold to or used by an air common carrier, certified by the carrier to be used for consumption, shipment or storage in the conduct of its business as an air common carrier for a flight destined for or continuing from a location outside the United States.
(b)
(1)
If a dealer pays to the department the tax imposed by this chapter on fuel or petroleum products sold to an air common carrier, and if the fuel or petroleum products are subsequently used by the air common carrier in a manner that renders the product exempt from tax under subsection (a), then the dealer may take a credit equal to the amount of tax previously paid to the department, if all of the following conditions are satisfied:
(A)
Prior to taking the credit, the dealer must give the air common carrier a credit or refund of any tax collected from the air common carrier that is the basis for the credit taken under this subsection (b);
(B)
The dealer must obtain documentation from the air common carrier that is sufficient to establish that the fuel or petroleum products were used in an exempt manner as provided in subsection (a); and
(C)
The credit is taken by the dealer on a return filed pursuant to this chapter within one (1) year of the date the tax was paid to the department.
(2)
The dealer must maintain documentation that is sufficient to establish entitlement to the credit, and the documentation must be maintained for a period of three (3) years from December 31 of the year in which the credit is taken on the return. Nothing in this subsection (b) shall be construed as preventing the dealer from filing a claim for refund pursuant to §
67-1-1802
in lieu of taking a credit on the tax return; provided, however, that in no case shall the same tax be subject to a refund and a credit.
Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 1994, ch. 791, § 1; 2004, ch. 959, § 66; 2005, ch. 311, § 2; 2009 , ch. 530, §§ 35, 45, 57; 2011 , ch. 72, §§ 1, 11.
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 67-6-350 - Coins, currency, and bullion

There is exempt from the tax imposed by this chapter the sale of all coins, currency, and bullion that are:
(1)
Manufactured in whole or in part from gold, silver, platinum, palladium, or other material;
(2)
Used solely as legal tender, security, or commodity in this or another state, the United States, or a foreign nation; and
(3)
Sold based primarily on their intrinsic value as precious material or collectible items rather than their representative value as a medium of exchange.
Added by 2022 Tenn. Acts, ch. 1092,s 1, eff. 5/27/2022.
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 67-6-351 - Drugs used by veterinarians

Veterinarians shall be considered the users and consumers of all drugs purchased by them for use or resale in the practice of veterinary medicine. The drugs shall be subject to sales or use tax on the purchase price to the veterinarian; provided, however, that drugs used in the treatment of livestock and instruments used for the administration of drugs used in the treatment of livestock shall be exempt from tax. Veterinarians seeking to make exempt purchases of drugs, and instruments for the administration of the drugs, used in treatment of livestock or resold in the practice of veterinary medicine for treatment of livestock shall provide a fully completed Streamlined Sales Tax certificate of exemption to each dealer from which it intends to make the exempt purchases. Veterinarians shall be liable for tax on the drugs or instruments at the full rate provided by §
67-6-203
if the drugs or instruments purchased exempt were not used in the treatment of livestock or resold in the practice of veterinary medicine for treatment of livestock.
Acts 1996, ch. 922, § 2; 2003, ch. 357, § 4; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, §§ 51, 71, 98.
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 67-6-352 - Pharmacies and home health care providers

(a)
Notwithstanding any provision of this chapter to the contrary, pharmacies and home health care providers engaged in the business of rendering outpatient health care services to human beings are the consumers or users of all tangible personal property or taxable services purchased for use, consumption or rental in providing the health care service. The sellers of taxable services or of tangible personal property not otherwise exempt from tax must collect from the pharmacy or home health care provider the appropriate tax, unless the pharmacy or home health care provider is exempt from paying the sales or use tax under §
67-6-322
.
(b)
For purposes of this section, the tangible personal property subject to tax when purchased for use in rendering outpatient health care services in the home or residence of a patient shall include, but not be limited to, mobility enhancing equipment and all durable medical equipment other than oxygen delivery equipment, kidney dialysis equipment and enteral feeding systems.
Acts 1996, ch. 1057, § 2; 2008, ch. 1106, § 8.
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 67-6-353 - Adaptive equipment for motor vehicles provided for disabled veterans - New or used vehicles sold, given, or donated to disabled veterans

(a)
There is exempt from this chapter any sales and use tax upon adaptive equipment for motor vehicles that is necessary to ensure that the eligible person will be able to operate an automobile or other conveyance in a manner consistent with such person's own safety and the safety of others. This section shall apply only to adaptive equipment for motor vehicles sold, given or donated to a disabled veteran who has been honorably discharged from any of the armed services of the United States and who has a service-connected disability equivalent to the disabilities as prescribed in
38 U.S.C. § 3100
et seq.
(b)
There is exempt from this chapter any sales and use tax upon a new or used motor vehicle that is sold, given, or donated to a veteran or active-duty service member of the armed services who has a service-connected disability as described in
38 U.S.C. § 3901
and who receives a grant from the United States department of veterans affairs, pursuant to
38 U.S.C. §§ 3901-3904
, that is used to provide or assist in providing the vehicle to the veteran or service member; provided, that the exemption shall only apply to the portion of the price of the vehicle that is in excess of the amount of the grant received.
Amended by 2018 Tenn. Acts, ch. 541, s 1, eff. 3/5/2018.
Acts 1997 , ch. 111, § 1.
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 67-6-354 - Design professionals' sketches, drawings and models

There is exempt from the tax imposed by this chapter any concept sketch, drawing, or model by an architect, engineer, landscape architect or interior designer that is used in the development of a prototype for manufacture or production.
Acts 1997, ch. 144, § 1.
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 67-6-355 - Credit for fire protection sprinkler contractors

(a)
There shall be a credit of the amount of any special contractor tax paid in another state against the tax imposed by this chapter for materials sold to or used by a fire protection sprinkler contractor; provided, that such materials are used by the fire protection sprinkler contractor to fabricate pipe and pipe fittings or use valves and pipe fittings for application or use by the fire protection sprinkler contractor in the performance of a contract outside the state. The credit shall be limited to the amount of tax attributable to the value of such materials.
(b)
For the purpose of this section, "fire protection sprinkler contractor" means any person engaged in those activities described under Industry Group 349, Miscellaneous Fabricated Metal Products, 3494 Valves and Pipe Fittings, Not Elsewhere Classified and 3498 Fabricated Pipe and Pipe Fittings, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget.
(c)
For the purpose of this section, "fabricated pipe and pipe fittings" means those products listed under Industry 3498, Fabricated Pipe and Pipe Fittings, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget.
(d)
For the purpose of this section, "valves and pipe fittings" means those products listed under Industry 3494, Valves and Pipe Fittings, Not Elsewhere Classified, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget.
Acts 1998, ch. 1084, § 1.
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 67-6-356 - Sales and use tax exemption for telecommunications services used by call centers

(a)
There shall be exempted from the sales and use tax imposed by this chapter any sales of interstate telecommunication and international telecommunication services to a business for use in the operation of one (1) or more call centers. "Call center" means a single location that utilizes telecommunication services in one (1) or more of the following activities: customer services, soliciting sales, reactivating dormant accounts, conducting surveys or research, fund raising, collection of receivables, receiving reservations, receiving orders, or taking orders. A call center shall have at least two hundred fifty (250) employee jobs engaged primarily in such call center activities.
(b)
No dealer shall sell any such interstate telecommunication and international telecommunication service under the claim that the service is exempt from the sales or use tax levied by this chapter, where the exemption from taxation is claimed because the vendee or user is entitled to an exemption as a call center, unless the vendee or user shall have issued to it by the commissioner an exemption certificate declaring that such call center is entitled to the exemption. In the event a business operating a call center uses its exemption authorization to purchase other services not exempted, the business shall be liable for applicable tax, penalty, and interest. The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption.
Acts 1999, ch. 413, § 2; 2004, ch. 782, § 17.
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 67-6-357 - Credit on retail tobacco sales tax

(a)
A credit shall be granted in the manner provided in subsection (b) for the amount of the sales tax due on tobacco buydown payments included in the sales price of tobacco sold at retail.
(b)
The credit shall apply such that sales tax is owed on the sales price of the tobacco less the tobacco buydown payment associated with such sale.
(c)
For purposes of this section the following definitions apply:
(1)
"Tobacco buydown agreement" means an agreement whereby an amount, whether paid in money, credit, or otherwise, is received by a retailer from a manufacturer or wholesaler based upon the quantity and unit price of tobacco sold at retail that requires the retailer to reduce the sales price of the product to the purchaser without the use of a manufacturer's coupon or redemption certificate; and
(2)
"Tobacco buydown payment" means the amount due to the retailer pursuant to a tobacco buydown agreement.
Acts 2003, ch. 418, § 6.
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 67-6-358 - Tax exemption on retail sale of firearm safes and safety devices

(a)
There is exempt from the tax imposed by this chapter the retail sale of firearm safes and firearm safety devices.
(b)
As used in this section:
(1)
"Firearm safe" means a locking container or other enclosure, excluding glass-faced containers, equipped with a padlock, key lock, combination lock, or other locking device that is designed and intended for the secure storage of one (1) or more firearms; and
(2)
"Firearm safety device" means:
(A)
A device that, when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating the device; or
(B)
A device to be equipped or installed on a firearm that is designed to prevent the operation of the firearm by anyone who does not have authorized access to the firearm.
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 67-6-384 - Spallation neutron source facility

(a)
Notwithstanding any provision of law to the contrary, with respect to a spallation neutron source facility that is funded by the United States government or instrumentality thereof, not funded with any state funds and located at a national laboratory, there shall be exempt from the tax levied by this chapter any:
(1)
Property that becomes a component part of or is used exclusively in the operation or repair of the facility;
(2)
Services, materials or items furnished or supplied to the facility and used exclusively in the operation of the facility; and
(3)
Property, services, building materials, machinery, equipment, supplies, repair parts, replacement materials or other items used exclusively in the construction, operation or repair of the facility or its operations.
(b)
The exemptions provided in this section shall apply regardless of whether the exempted property or service is leased or purchased.
(c)
Any entity that qualifies for a tax exemption under this section shall not be eligible for a sales and use tax exemption with regard to any industrial machinery that is used in the operation of a qualified data center or used primarily for research and development; provided, however, that this subsection (c) shall not apply to a leadership computing facility that is funded by the United States government or instrumentality thereof, not funded with any state funds, and located at a national laboratory.
Amended by 2018 Tenn. Acts, ch. 963,s 1, eff. 5/15/2018.
Acts 2000, ch. 540, § 1.
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 67-6-385 - [Repealed]

Repealed by 2021 Tenn. Acts, ch. 285, s 129, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 2003 , ch. 357, § 53; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007 , ch. 602, §§ 51, 154; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1.
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 67-6-386 - [Repealed]

Repealed by 2021 Tenn. Acts, ch. 285, s 129, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 2003 , ch. 357, § 54; 2004, ch. 959, §§ 54, 68; 2005, ch. 311, §§ 1, 2; 2007 , ch. 602, §§ 51, 155; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1.
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 67-6-387 - Computer software for personal use - Access and use of software remaining in possession of dealer for purpose of fabricating other software for own use

(a)
There is exempt from the tax imposed by this chapter the fabrication, installation, and repair of computer software by a person, including the person's agent or direct employee, for the person's own use and consumption. As used in this section, the term "direct employee" means an employee to whom the person is obligated to issue a federal form W-2, wage and tax statement, and with respect to whom the person has responsibility for withholding taxes under the Federal Insurance Contributions Act (
26 U.S.C. §§ 3101-3126
), or such other entity or affiliate that upon petition to the commissioner has been approved as having that responsibility under this section.
(b)
There is exempt from the tax imposed by this chapter the access and use of software that remains in the possession of the dealer who provides the software or in the possession of a third party on behalf of such dealer, as described in §
67-6-231(b)
, where the access and use of the software is solely by a person or the person's agent or direct employee, as defined in subsection (a), for the exclusive purpose of fabricating other software that is both:
(1)
Owned by that person; and
(2)
For that person's own use and consumption.
Amended by 2022 Tenn. Acts, ch. 1065, s 1, eff. 7/1/2022.
Amended by 2015 Tenn. Acts, ch. 514, s 24, eff. 7/1/2015.
Acts 2003 , ch. 357, § 55; 2004, ch. 959, § 68; 2005, ch. 311, § 1; Acts 2007 , ch. 602, §§ 51, 100; 2009 , ch. 530, § 54.
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 67-6-388 - Exemption from sales and use tax on leased motor vehicles for insurance proceeds paid on damage settlements

Notwithstanding this chapter or any other law to the contrary, there shall be an exemption from sales and use tax otherwise imposed on the gross proceeds of motor vehicle leases for insurance proceeds paid pursuant to a damage settlement by an insurance company to the owner of a leased passenger motor vehicle, where that vehicle has sustained damage that renders the vehicle a salvage vehicle, nonrepairable vehicle or flood vehicle, and the owner transfers title to such damaged vehicle to the insurance company.
Acts 2004, ch. 823, § 1.
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 67-6-389 - Exemption for private communications services

(a)
Private communications services shall be exempt from the tax imposed by this chapter, when such services are utilized for communications with a computer or telecommunications center located in this state, by a taxpayer that has qualified for the headquarters tax credit provided for in §
67-6-224
, or by an affiliate of such taxpayer.
(b)
For purposes of this section, "affiliate" means the same as defined in §
48-103-102
.
(c)
Persons seeking to make purchases of private communications exempt from tax shall apply to the commissioner for an authorization declaring that the purchaser is entitled to the exemption. In order to obtain the exemption, qualified purchasers shall provide a copy of the authorization or a fully completed Streamlined Sales Tax certificate of exemption to each dealer from which it intends to make exempt purchases. If a person purchases exempt private communications and the private communications services are not utilized for communications with a computer or telecommunications center located in this state, by a purchaser that has qualified for the headquarters tax credit provided for in §
67-6-224
, or by an affiliate of the purchaser, then the purchaser shall be liable for tax at a rate applicable to the retail sale of the private communications service.
(d)
The exemption in subsection (a) shall apply for so long as such qualified headquarters facility is located in this state.
(e)
Any taxpayer that moves tangible personal property into this state in conjunction with establishing a qualified headquarters facility, as defined in §
67-6-224
, and qualifying for the headquarters facility tax credit provided in §
67-6-224
, shall be exempt from any sales and use tax liability that arises solely as a result of moving the property into the state; provided, that the tangible personal property was previously used by the taxpayer in the operation of its business.
Acts 2004, ch. 782, § 19; 2007, ch. 602, § 99; 2008, ch. 1106, § 29.
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 67-6-390 - Exemption for sales of telecommunications services between affiliates

The tax levied by this chapter shall not apply to sales of telecommunications services between affiliates, when one (1) of the entities that is a member of the affiliated group has qualified for the headquarters tax credit provided for in §
67-6-224
. The entity that purchases the telecommunications services from a vendor that is not a member of the affiliated group shall be deemed the user and consumer of such services, and shall pay the appropriate tax on such services. For purposes of this section, "affiliate" means the same as defined in §
48-103-102
. This exemption shall apply for so long as such qualified headquarters facility is located in this state.
Acts 2004, ch. 782, § 19.
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 67-6-392 - Exemption for detailing and repair services on motor vehicles held for resale

(a)
Purchases of detailing services and repair services performed on motor vehicles that are held for resale are exempt from the tax imposed by this chapter, if such vehicles are held for resale by a licensed motor vehicle dealer or licensed automobile auction. A person selling detailing services shall, however, be considered to be the user and consumer of any articles of tangible personal property that person purchases or uses in performance of such detailing services.
(b)
(1)
(A)
For purposes of this section, "detailing services" means and includes services that cosmetically or functionally refurbish or restore to like-new or serviceable condition or appearance and that are intended to enhance or increase the sales value of used or pre-owned motor vehicles in preparation for the vehicles being offered for sale at wholesale or retail in the ordinary course of the seller's business, or that cosmetically or functionally prepare new vehicles for sale at wholesale or retail in the ordinary course of the seller's business.
(B)
"Motor vehicle detailing services" shall not include washing or cleaning of motor vehicles, except when performed in conjunction with the activities provided for in this section.
(2)
For purposes of this section "motor vehicle" shall mean a motor vehicle subject to registration and titling in this state pursuant to §
55-3-101
, and "licensed motor vehicle dealer" and "licensed automobile auction" shall mean a person licensed as such pursuant to title 55, chapter 17.
Acts 2004, ch. 924, § 16.
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 67-6-394 - Credit for sales tax due on a transaction accommodation fee included in a sale or lease

(a)
A credit shall be granted, in the manner provided in subsection (b), for the amount of the sales tax due on a transaction accommodation fee included in the sales price of a sale or the gross proceeds of a lease.
(b)
The credit shall apply such that sales tax is owed on the sales price or gross proceeds, less the transaction accommodation fee associated with such sale or lease.
(c)
For purposes of this section, the following definitions shall apply:
(1)
"Full-time employee" means a permanent, rather than seasonal or part-time, employee who is normally scheduled to work at least thirty-seven and one-half (37.5) hours per week, and receives minimal healthcare, as described in title 56, chapter 7, part 22;
(2)
"Qualified motor vehicle manufacturer" means a producer, as defined in §
55-17-123(b)(2)
, that has made the required capital investment within the investment period necessary to qualify for the credit provided in §
67-4-2109(b)(2)(B)(i)
, or one of its related business entities;
(3)
(A)
"Related business entity" means a business entity:
(i)
In which the qualified motor vehicle manufacturer, directly or indirectly, has more than thirty-five percent (35%) ownership interest;
(ii)
That, directly or indirectly, has more than thirty-five percent (35%) ownership interest in the qualified motor vehicle manufacturer; or
(iii)
In which a person described in subdivision (c)(3)(A)(ii), directly or indirectly, has more than thirty-five percent (35%) ownership interest;
(B)
For purposes of this subdivision (c)(3), a noncorporate entity is more than thirty-five percent (35%) owned, if, upon liquidation, more than thirty-five percent (35%) of the assets of the noncorporate entity, directly or indirectly, accrue to the entity having the ownership interest; and
(4)
"Transaction accommodation fee" means the standard charge made by a franchised motor vehicle dealer to a qualified motor vehicle manufacturer in consideration for selling or leasing a motor vehicle produced by the qualified manufacturer to one (1) of the qualified manufacturer's full-time employees. Records documenting the amount of the standard transaction accommodation fee shall be maintained by the dealer in accordance with §
67-6-523
.
Acts 2005, ch. 499, § 84; 2006, ch. 1019, §§ 41, 42; 2009, ch. 530, § 11.
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 67-6-395 - Exemption for use of computer software developed, fabricated, and repaired by an affiliated company

(a)
There is exempt from the tax imposed by this chapter the use of computer software that is developed and fabricated by an affiliated company, regardless of whether such software is accessed and used as described in §
67-6-231(b)
or delivered by other means.
(b)
There is exempt from the tax imposed by this chapter the repair of computer software or any other services otherwise taxable that are rendered by a company for an affiliated company.
(c)
For purposes of this section, companies are affiliated only if:
(1)
Either company directly owns or controls one hundred percent (100%) of the ownership interest of the other company; or
(2)
One hundred percent (100%) of the ownership interest of both companies is owned or controlled by a common parent.
Amended by 2015 Tenn. Acts, ch. 514,s 25, eff. 7/1/2015.
Acts 2006, ch. 1019, § 40; 2009, ch. 530, § 68.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-401 - Administration by commissioner

The commissioner shall administer and enforce the assessment and collection of the taxes and penalties imposed by this chapter.
Acts 1947, ch. 3, § 14; C. Supp. 1950, § 1248.86 (Williams, § 1328.36); T.C.A. (orig. ed.), § 67-3046.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-402 - Rules and regulations

(a)
The commissioner has the power to make and publish reasonable rules and regulations not inconsistent with this chapter or the other laws, or the constitution of this state or the United States, for the enforcement of this chapter and the collection of revenues hereunder.
(b)
The commissioner is authorized to make and publish such rules and regulations not inconsistent with this chapter as the commissioner may deem necessary in enforcing its provisions, in order that there shall not be collected on the average more than the rate levied by this chapter. The commissioner is authorized to, and shall, provide, by rule and regulation, a method for accomplishing this end, and shall prepare instructions to dealers by setting out to them suitable methods for applying the tax that may be necessary for the purpose of the enforcement of this chapter and the collection of the tax imposed thereby.
Acts 1947, ch. 3, §§ 13, 14; C. Supp. 1950, §§ 1248.85, 1248.86 (Williams, §§ 1328.35, 1328.36); T.C.A. (orig. ed.), §§ 67-3045, 67-3046; Acts 2003, ch. 357, § 56; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, §§ 51, 102.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-403 - Forms

(a)
The commissioner shall design, prepare, print and furnish to all dealers, or make available to the dealers, all necessary forms for filing returns and instructions to ensure a full collection from dealers and an accounting for the taxes due; but failure of any dealer to secure such forms shall not relieve such dealer from the payment of the tax at the time and in the manner provided in this chapter.
(b)
The cost of preparing and distributing the reports, forms, and paraphernalia for the collection of the tax and the inspection and enforcement duties required in this section shall be borne by the revenues produced by this chapter, as provided for in this chapter.
Acts 1947, ch. 3, §§ 13, 14; C. Supp. 1950, §§ 1248.83, 1248.86 (Williams, §§ 1328.35, 1328.36); T.C.A. (orig. ed.), §§ 67-3043, 67-3046.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-404 - Oaths

The commissioner and the commissioner's assistants are authorized and empowered to administer the oath for the purpose of enforcing and administering this chapter.
Acts 1947, ch. 3, § 13; C. Supp. 1950, § 1248.84 (Williams, § 1328.35); T.C.A. (orig. ed.), § 67-3044.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-405 - Personnel, supplies, and expenses

(a)
The commissioner, with the approval of the governor, is authorized to employ all necessary assistance to administer this chapter properly, and is also authorized to purchase all necessary supplies and equipment, and to incur any other necessary expenses that may be required for this purpose, in order to put the chapter fully and completely into effect.
(b)
All necessary expenses of employees to administer this chapter shall be paid in the manner provided by law applicable to expenses of other state officials and employees.
Acts 1947, ch. 3, §§ 14, 17; mod. C. Supp. 1950, §§ 1248.86, 1248.89 (Williams, §§ 1328.36, 1328.39); Acts 1971, ch. 117, § 6; 1976, ch. 789, § 1; T.C.A. (orig. ed.), §§ 67-3046, 67-3048.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-406 - Registration of motor vehicles and boats dependent on payment of tax

The commissioner is authorized to require the assistance of any official of the state or of any political subdivision thereof in the administration of this chapter, and it is unlawful for any official of this state or of any political subdivision thereof to accept an application for a certificate of title to a motor vehicle as provided for in title 55, chapters 1-6, or for a certificate of registration for a vessel as provided for in title 69, chapter 9, unless the applicant presents evidence that a sales or use tax, as provided for in this chapter, has been paid on the sales price of the vehicle or vessel by such applicant, or such applicant has authority from the commissioner to file an application for such certificate of title or registration without the payment of the sales or use tax. It is also unlawful for any official referred to herein to accept an application for a certificate of title to a motor vehicle when the sale of such vehicle constitutes an occasional and isolated sale which is taxable under §
67-6-102(8)(C)
, unless the applicant presents a bill of sale which evidences the sale price and also presents evidence that the sales or use tax has been paid on that amount, or in the absence of such a bill of sale, unless the official requires evidence of payment of the sales or use tax on the fair market value of the vehicle as the fair market value is determined by the official by reference to the most recent issue of an authoritative automotive pricing manual, such as the NADA Official Used Car Guide, Southeastern Edition.
Acts 1947, ch. 3, § 17; mod. C. Supp. 1950, § 1248.89 (Williams, § 1328.39); Acts 1971, ch. 117, § 6; 1976, ch. 789, § 1; T.C.A. (orig. ed.), § 67-3048.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-407 - Dealers of aviation fuel - Reports

(a)
The commissioner shall require each dealer of aviation fuel to file an additional report stating the total amount in gallons of aviation fuel sold and the dollar amount collected from such sales. The report required by this section shall be filed on a monthly or quarterly basis, as determined by the commissioner in the commissioner's discretion. Such report shall be filed no later than thirty (30) days after the last day of the sales period covered by the report. The report shall be supplemental to any other report required by the department and shall be on a form prescribed by the department.
(b)
In addition to any other penalty provided by law, the commissioner is authorized to assess any taxpayer required to file the report described in subsection (a) a civil penalty of five hundred dollars ($500) for failure to file such report. Such penalty shall be subject to waiver under §
67-1-803
.
Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 1989, ch. 348, § 1; 2004, ch. 959, § 67; 2005, ch. 311, § 2; 2007 , ch. 602, §§ 52, 156; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1; 2011 , ch. 194, § 1; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.
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 4 - ADMINISTRATIVE PROVISIONS (§§ 67-6-401 — 67-6-411) › Section 67-6-408 - Transportation equity trust fund - Commissioners' annual report

On or before December 31 each year, the commissioners of revenue and transportation shall jointly publish and provide to the governor and to each member of the general assembly a report that summarizes the amount and source of all moneys received and deposited during the preceding fiscal year in the transportation equity fund, created pursuant to §
67-6-103(b)
. The report shall also include the following information:
(1)
The total amount of moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for aviation;
(2)
The total amount of moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for railways;
(3)
The total amount of moneys received under this chapter from the sale, use, consumption, distribution, or storage for use or consumption of fuels used for water carriers;
(4)
The portion of the transportation equity trust fund used by the department of transportation for railway-related programs and activities, including a brief description of each such program and activity receiving such funding;
(5)
The portion of the transportation equity trust fund used by the department of transportation for aeronautics-related programs and activities, including a brief description of each such program and activity receiving such funding; and
(6)
The portion of the transportation equity trust fund used by the department of transportation for waterways-related programs and activities, including a brief description of each such program and activity receiving such funding.
Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 1989, ch. 348, § 2; 2004, ch. 959, § 18; 2005, ch. 311, § 2; 2007 , ch. 602, §§ 52, 157; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1; 2013 , ch. 480, § 1; 2014 , ch. 908, § 15; 2015 , ch. 273, § 3.