Title 67, Taxes And Licenses

(a) There is exempt from the tax imposed by this chapter any drug, including over-the-counter drugs, for human use dispensed pursuant to a prescription. This exemption shall not apply to grooming and hygiene products. (b) There is exempt from the tax imposed by this chapter the s…

(a) There is exempt from sales tax the transfer, by any dealer in personal property, of railroad rolling stock or of vessels or barges of fifty (50) tons or over of displacement, where the purchaser gives the seller an affidavit that such rolling stock or vessels are being purcha…

(a) There is exempt from this chapter any sales or use tax upon tangible personal property, computer software, or taxable services sold, given, or donated to any:(1) Church, temple, synagogue or mosque;(2) University, including the Agricultural Foundation for Tennessee Tech, Inc.…

(a) For purposes of this section:(1) “Applicant” means a person applying for an exemption under this section;(2) “Best interests of the state” means a determination by the commissioners of revenue and economic and community development that the qualified production is a result of…

There is exempt from sales tax any replacement parts or goods transferred without cost to a purchaser for the replacement of faulty parts or equipment that prior thereto had been sold under a warranty or guarantee or condition and upon which original purchase or importation a sal…

There is exempt from this chapter all sales of tangible personal property to telephone cooperatives organized under the general welfare laws of this state. This exemption shall apply only to sales of tangible personal property to telephone cooperatives for their own use and consu…

There is exempt from the taxes imposed by this chapter all sales of tangible personal property to commercial marine vessels for use by such vessels, where the deliveries of such property are made in mid-stream of waterways constituting geographical boundaries of this state. Deale…

There is exempt from the tax imposed by this chapter repair services performed on vessels and barges of fifty (50) tons and over load displacement that are used principally in interstate or international commerce, and the parts, accessories, materials and supplies used in such re…

There is exempt from sales or use tax all sales of tangible personal property to watershed districts for use and consumption by such districts.

(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 i…

(a) There is exempt from the sales tax on admission, dues or fees imposed by § 67-6-212:(1) Events or activities held for or sponsored by public or private schools, kindergarten through grade twelve (K-12);(2) The sales price of admissions to county or agricultural fairs and any …

(a) There shall be exempt from the tax imposed by this chapter, the transfer, by any dealer in personal property, of motor vehicles with a gross vehicle weight rating (GVWR) of a Class three (3) or above as defined in § 55-4-113 and trailers, semi-trailers and pole-trailers as de…

There is exempt from the tax imposed by this chapter the sums paid or property or services contributed by any person to any municipal or county utility, electric cooperative or electric membership corporation, by any person who is required as a condition for utility service to ma…

Charges made by taxidermists for taxidermy activity are exempt from the tax imposed by this chapter. The taxidermist shall, however, be considered to be the user and consumer of any articles of tangible personal property or any taxable services that the taxidermist purchases.

(a) There are exempt from the tax levied by this chapter gas, electricity, fuel oil, coal and other energy fuels sold directly to the consumer for residential use. (b) (1) As used in this section, “sold directly to the consumer for residential use” includes the furnishing of gas,…

A dentist shall be considered the user and consumer of the tangible personal property used in the practice of the dentist's profession, and the tax imposed by this chapter shall not be applicable to all or any part of the charges made by a dentist to the dentist's patients in con…

There is exempt from the sales and use tax imposed by this chapter the sale or use of a used factory-manufactured structure to the extent that the Tennessee sales and use tax applicable to such structure was paid in its initial sale or use in this state.

There are exempt from the tax imposed by this chapter all sales for which the consideration given is food stamps, food coupons or for which an electronic debit card or other electronic benefits transfer system is used or that utilizes such other means as the department of human s…

(a) There are exempt from the tax imposed by this chapter all sales for which the consideration is a voucher issued under the Special Supplemental Food Program for Women, Infants and Children (42 U.S.C. § 1786), and any subsequent federal legislation. If consideration other than …

(a) The tax imposed by this chapter does not apply to materials sold to or used by a structural metal fabricator; provided, that such materials are used by the fabricator to fabricate structural metal products for application or use by the fabricator in the performance of a contr…

(a) Notwithstanding the reduced rate for purchases by common carriers, there are exempt from the sales and use tax railroad track materials and locomotive radiators purchased in this state by railroads for use outside this state. (b) Persons seeking to make exempt purchases as pr…

(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 th…

(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 fr…

(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.…

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 …

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 contro…

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 …

(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 subs…

(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 fo…

(1) 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…

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 t…

(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 purch…

(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 safet…

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.

(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 c…

(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…

(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 l…

(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, …

(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 fr…

(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” mean…

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 …

(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 provid…

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…

(a) Beginning July 1, 2022, through June 30, 2027, 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 …

(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 d…

(a) Any exemption provided by this section shall be known as a “sales tax holiday.” (b) (1) There is exempt from the tax imposed by this chapter the following items of tangible personal property, if sold between 12:01 a.m. on the last Friday of July and 11:59 p.m. the following S…