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 67-6-391 - Tennessee broadband equipment and services moratorium

(a)
Beginning July 1, 2022, through June 30, 2025, there is exempt from the sales and use tax imposed by this chapter purchases and leases of all equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to:
(1)
Produce broadband communications services, including broadcasting, distributing, sending, receiving, storing, transmitting, retransmitting, amplifying, switching, providing connectivity for, or routing communications services; or
(2)
Provide internet access.
(b)
This section does not apply to the retail sale of personal consumer electronics, including, but not limited to, smartphones, computers, and tablets, and consumer-grade modems and Wi-Fi routers.
(c)
As used in this section:
(1)
"Broadband communications services" means:
(A)
Telecommunications services;
(B)
Mobile telecommunications services;
(C)
Video programming services; and
(D)
Direct-to-home satellite television programming services;
(2)
"Equipment" includes, but is not limited to, wires, cables, fiber, conduits, antennas, poles, switches, routers, amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers, transmitters, circuit cards, insulating and protective materials and cases, power equipment, backup power equipment, diagnostic equipment, storage devices, modems, and other general central office or headend equipment, such as channel cards, frames, and cabinets, or equipment used in successor technologies, including items used to monitor, test, maintain, enable, or facilitate qualifying equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to provide broadband communications services or internet access; and
(3)
"Internet access":
(A)
Means a service that enables users to connect to the internet to access content, information, or other services offered over the internet;
(B)
Includes:
(i)
The purchase, use, or sale of telecommunications by a provider of internet access to the extent the telecommunications are purchased, used, or sold to:
(a)
Provide the internet access service; or
(b)
Otherwise enable users to access content, information, or other services offered over the internet;
(ii)
Services that are incidental to the provision of internet access when furnished to users as part of the internet access service, such as a home page, email and instant messaging, to include voice- and video-capable email and instant messaging, video clips, and personal electronic storage capacity; and
(iii)
A homepage, email and instant messaging, to include voice- and video-capable email and instant messaging, video clips, and personal electronic storage capacity, that are provided independently or packaged with internet access; and
(C)
Does not include voice, audio, or video programming, or other products and services that utilize internet protocol or a successor protocol and for which there is a charge, regardless of whether the charge is separately stated or aggregated with the charge for services for internet access.
(d)
Beginning July 1, 2022, the commissioner of revenue shall reimburse counties and municipalities for loss of revenue resulting from the tax exemption provided for in this section. Subject to appropriations, a sum must be earmarked and allocated from the general fund for this purpose.
Added by 2022 Tenn. Acts, ch. 1102, s 2, eff. 5/31/2022.