2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 4 - PRIVILEGE AND EXCISE TAXES (§§ 67-4-101 — 67-4-3206) › Part 7 - BUSINESS TAX ACT (§§ 67-4-701 — 67-4-730) › Section 67-4-712 - Exemptions

(a)
(1)
Each person being unable to see by reason of total blindness, owning less than two thousand five hundred dollars ($2,500) of property above encumbrances on the property and doing business with a capital not exceeding two thousand five hundred dollars ($2,500), residing in and being a citizen of this state and of the county in which the exemption shall be claimed, and being the sole beneficiary of the business, shall be exempt from the payment of the taxes payable by persons taxable under §
67-4-708(1)-(4)
. Any institution for the blind engaged in the training and employment of the blind of the state likewise shall be exempt from the payment of the privilege taxes imposed, without regard to property qualifications.
(2)
Any disabled former uniformed member of the armed forces who is a veteran of any armed conflict in which the United States has engaged, or any peacetime uniformed member of the armed forces who was disabled while in regular service, owning less than five thousand dollars ($5,000) of property above encumbrances on the property and doing business with a capital stock of not exceeding five thousand dollars ($5,000), residing in and being a citizen of this state and of the county in which the exemption shall be claimed, and being the sole beneficiary of the business, shall be exempt from the payment of the taxes imposed upon persons in §
67-4-708(1)-(4)
. Only one (1) exemption may be claimed by any one (1) person under this subsection (a), and any business for which the exemption is claimed shall be conducted by such former member personally or a member of such member's immediate family who may be assisted by not more than one (1) person not a member of the family. With respect to former members operating as peddlers, one (1) vehicle shall be considered as one (1) place of business.
(3)
The proper collectors shall require the applicant who wishes to seek the benefits of the exemptions under this subsection (a) to make an affidavit setting out the applicant's disability and the applicant's financial condition and the source of the applicant's income before the license shall be issued, and any person making a false affidavit and procuring a free privilege license commits perjury and shall be punished under the law.
(b)
This part shall not apply to the following persons in the circumstances indicated:
(1)
Any person in respect to that person's employment in the capacity of an employee or servant as distinguished from that of an independent contractor;
(2)
A person primarily engaged in the fabrication or processing of tangible personal property for resale and consumption off the premises with respect to the sales of such property made from the manufacturing location or from a storage or warehouse facility that is situated within a ten-mile radius of the manufacturing location;
(3)
Any person taxable under part 4 of this chapter with respect to receipts taxable under such provisions;
(4)
Newspaper route carriers and newspaper peddlers;
(5)
Any institution operated for religious or charitable purposes, with respect to any profits that are earned from the sale of items contributed to the institution or articles produced by the institution from such contributed items;
(6)
Persons conducting shows, displays, or exhibits sponsored by any nonprofit organization of gun collectors; provided, that any person who regularly engages in business as a dealer in guns or who sells guns for future delivery shall not be exempt under this subsection (b); and
(7)
Any person residing or located in this state whose only taxable business activity during the tax period is conducted at the Tennessee state fair or at only one (1) county fair, and any governmental entity, nonprofit corporation, institution or organization which has received a determination of exemption from the internal revenue service pursuant to
26 U.S.C. § 501(c)(3) or (c)(4)
, and is currently operating under it, and whose only taxable business activity during the tax period is conducted at the Tennessee state fair, county fairs and their affiliates.
(c)
(1)
The gross sales made in this state of livestock, horses, poultry, nursery stock and other farm products direct from the farm are exempt from the tax levied by this part; provided, that such sales are made directly by the producer, breeder, or trainer. When sales of livestock, horses, poultry, or other farm products are made by any person other than the producer, breeder or trainer, they shall be classed and taxed under §
67-4-708(4)
.
(2)
No provision of this part shall apply to catfish farmers.
(d)
(1)
Any person having sales of less than one hundred thousand dollars ($100,000) within a county shall be exempt from the tax and licensing provisions in §§
67-4-704
and
67-4-723(a)
with respect to the sales sourced to that county as provided in §
67-4-717(b)
.
(2)
Any person having sales of less than one hundred thousand dollars ($100,000) within an incorporated municipality shall be exempt from the tax and licensing provisions in §§
67-4-705
and
67-4-723(a)
with respect to the sales sourced to that municipality as provided in §
67-4-717(c)
.
(3)
Any person subject to the tax imposed by this chapter due to the operation of §
67-4-717(a)
and having sales of less than one hundred thousand dollars ($100,000) within a county shall be exempt from the taxing provision in §
67-4-704
with respect to the sales occurring in that county.
(e)
Gross proceeds derived from admissions to amusement or recreational activities conducted, produced, or provided by not-for-profit museums, not-for-profit entities that operate historical sites and not-for-profit historical societies, organizations or associations by organizations that have received and currently hold a determination of exemption from the internal revenue service pursuant to
26 U.S.C. § 501(c)
, or by organizations listed in Major Group No. 86 of the Standard Industrial Classification Manual of 1972, prepared by the office of management and budget of the federal government; provided, that this exemption shall not apply unless such entities, societies, associations or organizations promote, produce, and control the entire production or function.
(f)
The tax imposed by this part shall not apply to a qualified business doing business from a location within an enterprise zone. The tax exemption provided by this subsection (f) shall only be allowed, however, to a qualified business for five (5) years from the date such business is originally certified as a qualified business.
Amended by 2023 Tenn. Acts, ch. 377,s 6, eff. 5/11/2023.
Amended by 2023 Tenn. Acts, ch. 377,s 5, eff. 5/11/2023, app. to tax years ending on or after December 31, 2023.
Amended by 2023 Tenn. Acts, ch. 377,s 4, eff. 5/11/2023, app. to tax years ending on or after December 31, 2023.
Amended by 2023 Tenn. Acts, ch. 377,s 3, eff. 5/11/2023.
Amended by 2013 Tenn. Acts, ch. 313, s 13, eff. 1/1/2014.
Acts 1971, ch. 387, §§ 11-13; 1972, ch. 850, §§ 6, 10-12, 25; modified; Acts 1977, ch. 345, § 1; 1978, ch. 832, § 2; 1981, ch. 275, § 1; T.C.A., §§ 67-5811 -- 67-5813, 67-5828, 67-5829; Acts 1986, ch. 672, §§ 1, 2; 1986, ch. 929, § 1; 1989, ch. 16, § 7; 1989, ch. 465, § 1; 1989, ch. 560, § 20.