Petition for Writ of Certiorari — Bean Dredging Corp. v. Olsen
Supreme Court brief1988
Ask Donna
What actually matters in this document.
Text
Supreme Court, U.S.
a | FILED
ae) MAR ju 1988
aos
No. Peet eee eeereeeeeeeeeeeee ; JOSEPH F, SPAN OL
CLERK
In The
Supreme Court of the United States
October Term, 1987
fy
A
BEAN DREDGING CORPORATION,
Petitioner,
MARTHA B. OLSEN, COMMISSIONER
OF REVENUE OF THE STATE OF TENNESSEE,
Respondent.
PETITION FOR WRIT OF CERTIORARI TO
THE SUPREME COURT OF TENNESSEE
WESTERN GRAND DIVISION
AT JACKSON
VOLUME II
Of Counsel: BALDWIN & HASPEL
HEISKELL, DONELSON, Jerome J. Reso, Jr.
BEARMAN, ADAMS, H. Sloan McCloskey
WILLIAMS & KIRSCH John A. Rouchell
Boyd L. Rhodes, Jr. Suite 2200, Energy Centre
R. Mark Glover 1100 Poydras Street
Twentieth Floor New Orleans, LA 70163-2200
First Tennessee Building Telephone: (504) 585-7711
Memphis, TN 38103 Counsel for Petitioner
COCKLE LAW BRIEF PRINTING CO.. (800) 225-6964
or call collect (402) 342-2831
APPENDIX INDEX—VOLUME II
Tennessee Sales and Use Tax Laws, 1980
Tennessee Sales and Use T’'ax Laws, 1983
Replacement ..= 168
Excerpts from Title 33, United States Code 273
App. 88
TENNESSEE
SALES & USE
TAX LAWS
(SEAL)
EXTRACTS OF RELATED LAWS
RULES AND REGULATIONS
AND OTHER INFORMATION
1980
TENNESSEE DEPARTMENT OF REVENUE
The names “Department of Finance and Taxation”’
and ‘‘Commissioner of Finance and ‘Taxation’’, as used in
this summary of laws, were changed to ‘*Department of
Revenue’’ and ‘‘Commissioner of Revenue”? by Chapter 9,
Public Acts of 1959, and made effective April 1, 1959, by
executive order of the governor.
These designations are to be used interchangeably in
this summary of laws.
CHAPTER I
TENNESSEE SALES AND
USE TAX LAWS
(Title 67, Chapter 30, ‘‘Tennessee Code Annotated’’)
Section 1. The Retailer’s Sales Tax Act
($§ 67-8001-67-3048 )
SECTION,
67-3001. Short title-Additional tax.
67-5002. Definition of terms.
67-3003. Levy of tax-Rate.
67-3004. Application of property by contractor.
67-5005. Use tax on imports.
67-3006. Effective date of use tax.
67-3007. Interstate commerce exempt.
67-3008.
67-3009.
67-3010.
67-3011.
67-2012.
67-3013.
67-3014.
67-3015.
67-3016.
67-2017.
67-3018.
67-3019.
67-3020.
67-3021.
67-3022.
67-3023.
67-3024.
67-3025.
67-3026.
67-3027.
67-3028.
67-3029.
67-3030.
App. 89
Credits for taxes paid in other states.
Additional tax
Religious publications exempt.
Agricultural products exempt.
Miscellaneous property exempt.
Exemption of film and transcription rentals.
Exemption of religious, educational, and charit-
able institutions.
Computation on trade-ins.
Collection from dealers.
‘‘Dealer’’ defined.
Collection of tax from purchaser-Payment by
dealer. .
Offer by dealer to absorb tax prohibited.
Collection and payment by retailers.
Deduction for accounting expenses.
Monthly returns and payment.
Payment of tax with return.
Payment of tax on rentals or furnishing of
things or services.
Settlement of tax on quitting business-Collection
of tax from debtor of dealer.
Interest and penalties for delinquency-Exten-
sion of time for making return.
Form of payment.
Credit for sales returns and allowances.
Estimate by commissioner of tax due.
Examination of books and assessment in absence
of dealer’s return.
67-3031.
67-3032.
67-3033.
67-3034.
67-3035.
67-3036.
67-3037.
67-3038.
67-3039.
67-3040.
67-3041.
67-3042.
67-3043.
67-3044.
67-3045.
67-3046.
67-3047.
67-3048.
App. 90
Assessment of use tax by commissioner.
Value of rental fixed by commissioner.
warrants—Collection of
payments-Injunetion-Lien-Record-
Delinquency-Distress
erroneous
ing.
Reeords kept by dealers.
Contents of dealers’ records-Penalty for viola-
tions.
Reeords kept by wholesalers and jobbers.
Access to records of carriers.
lLmportation permits.
Importation without permit prohibited.
Confiscation of vehicle used in illegal importa-
tion.
Registration of sellers-Reeall of certificate-Cer-
tiorari.
Penalties for violations by dealers.
Forms furnished by commissioner.
Administration of oaths.
Rules and regulations.
Administrative costs-Rules concerning applica-
tion of rate.
Deposit and allocation of receipts.
Implementation of chapter.
NOTE
The names ‘‘Department of Finance and Taxation”’
and ‘‘Commissioner of Finance and Taxation”’’, as used in
this summary of laws, were changed to ‘* Department of
Revenue’’ and ‘‘Commissioner of Revenue’’ by Chapter 9,
Public Acts of 1959, and made effective April 1, 1959, by
executive order of the governor.
App. 91
These designations are to be used interchangeably in
this summary of laws. :
67-3001. Short title—Additional tax.—This chapter
shall be known as the ‘‘Retailers’ Sales Tax Act’’ and the
tax imposed by this chapter shall be in addition to all other
privilege taxes. [Acts 1947, ch. 3, §1; C. Supp. 1950,
§ 1248.50 (Williams, § 1328.22).]
67-3002. Definition of terms.—The following words,
terms, and phrases, when used in this chapter, shall have
the meanings ascribed to them in this seetion, except when
the context clearly indicates a different meaning:
(a) ‘*Persons’’ includes any individual, firm, co-
partnership, joint adventure (sic), association, corporation,
estate, trust, business trust, receiver, syndicate, any gov-
ernmental agency whose services are essentially a private
commercial concern, or other group or combination acting
as a unit, in the plural as well as the singular number. It is
further defined to include any political subdivision or gov-
ernmental agency, including electric membership corpora-
tions or cooperatives, and utility districts, to the extent
that such agency sells at retail, rents or furnishes any of
the things or services taxable under this chapter.
(b) ‘‘Sale’’? means any transfer of title or posses-
sion, or both, exchange, barter, lease or rental, conditional,
or otherwise, in any manner or by any means whatsoever
of tangible personal property for a consideration, and in-
eludes the fabrication of tangible personal property for
consumers who furnish, either directly or indirectly, the
materials used in fabrication work, and the furnishing, re-
pairing or serving for a consideration of any tangible per-
sonal property consumed on the premises of the person
App. 92
furnishing, preparing, or serving such tangible personal
property. ‘‘Sale’’ shall also mean such transfer of cus-
tomized or packaged computer software, which is defined
to mean, information and directions loaded into a com-
puter which dictate different functions to be performed
by the computer, whether contained on tapes, dises, cards,
or other device or material. For such purpose, computer
software shall be considered tangible personal property,
however, the fabrication of software by a person for his
own use or consumption shall not be considered a taxable
‘use’? under subdivision (h) of this section or any other
section of this chapter.
A transaction whereby the possession of property is
transferred but the seller retains title as security for the
payment of the price shall be deemed a sale.
‘‘Sale’’ includes the furnishing of any of the things
or services taxable under this chapter.
(c)(1) ‘Retail sales’’ or a ‘‘sale at retail’’ means a
sale to a consumer or to any person for any purpose other
than for resale in the form of tangible personal property,
and shall mean and inelude all such transactions as the
commissioner of revenue upon investigation finds te be in
lien of sales; provided that sales for resale must be in
striet compliance with rules and regulations. Any dealer
making a sale for resale which is not in striet compliance
with rules and regulations shall himself be liable for and
pay the tax.
‘*Retail sale”’ or ‘‘sale at retail’’ shall include the fur-
nishing of things or services taxable under this chapter.
‘*Retail sale’’ or ‘‘sale at retail’ ineludes the delivery
in this state of tangible personal property by a retailer
App. 93
who has no place of business in this state, if the delivery
is made to a consumer in this state or to another person
for redelivery to a consumer in this state pursuant to a re-
tail sale made by such retailer to such consumer.
Nothing in this paragraph or the preceding paragraph
shall be construed to impose a tax which is invalid either
under the commerce clause or the due process clause of the
United States Constitution. In addition, the department of
revenue may enter into a reciprocal agreement with the
comparable department of another state to furnish records
concerning purchases made by citizens of the other state
from a dealer in this state where the dealer collects neither
a sales nor 2 use tax on such sales provided that the other
state agrees to furnish the same records to this state and
each sale is in excess of five hundred dollars ($500). Pro-
vided further, all dealers in Tennessee making sales to
purchasers in another state where no sales or use tax is
colleeted shall furnish the department copies of all such
invoices to suitable substitutes for sales in excess of five
hundred dollars ($500) with their monthly returns pro-
vided that the department notifies such dealers of the
existence of a reciprocal agreement.
,
(2) The terms ‘‘sale at retail,’’ ‘‘use,’’ ‘‘storage,’
and ‘‘eonsumption”’ shall not include the sale, use, storage
or consumption of industrial materials and explosives for
future processing, manufacture or conversion into articles
of tangible personal property for resale where such indus-
trial materials and explosives become a component part of
the finished product or are used directly in fabricating,
dislodging, sizing, converting, or processing such materials
or parts thereof, and such terms shall not include mater-
ials, containers, labels, sacks, bags or bottles used for pack-
App. 94
aging tangible personal property when such property is
either sold therein direetly to the consumer or when such
use is incidental to the sale of such property for resale.
(3) The term ‘‘gross sales’? means the sum total of
all retail sales of tangible personal property and all pro-
ceeds of services taxable under this chapter as defined
herein, Without any deduction whatsoever of any kind or
character, except as provided in this chapter.
(4) ‘*Retail sale,’’ ‘‘sale at retail,’’ and ‘‘retail
sales price’’ shall include the following services:
(A) The sale, rental or charges for any rooms, lodg-
ings, or accommodations furnished to transients by any
hotel, inn, tourist court, tourist camp, tourist cabin, motel,
or any place in which rooms, lodgings or accommodations
are furnished to transients for a consideration. The tax
shall not apply, however, to rooms, lodgings, or accommo-
dations supplied to the same person for a period of ninety
(90) continuous days or more.
(B) Charges for services rendered by persons oper-
ating or conducting a garage, parking lot or other place of
business for the purpose of parking or storing motor ve-
hicles. The tax shall not apply, however, to charges for
such services made by the state and its political subdi-
visions when providing on-street parking space for which
charges are collected or when operating or conducting a
garage or parking lot which is unattended and such
charges are collected by parking meters.
(C) The furnishing of telephone service to regular
subseribers, such service embracing local (flat charge or
metered) ealls, long-distance calls, leased lines or equip-
ment for the voeal or written transmission of messages,
App. 95
as well as any additional or incidental services for which a
charge is made; and the transmission for a consideration
of messages by telegraph ;
(1) The performing for a consideration of any re-
pair services with respect to any kind of tangible personal
property;
(I) The laundering or dry cleaning of any kind of
tangible personal property, excluding coin-operated Jaun-
dry, dry-cleaning or car-wash facilities, where a charge is
made therefor:
(F) The installing of tangible personal property
which remains tangible personal property after installa-
tion where a charge is made for such installation whether
or not such installation is made as an incident to the sale
thereof and whether or not any tangible personal property
is transferred in conjunction with such installation service.
(G) The enriching of uranium materials, compounds,
or products, which is performed on a cost-plus basis or on
a ‘‘toll enrichment fee’’ basis.
%*
(d) ‘‘Sales price’’ means the total amount for which
tangible personal property is sold, including any services
that are a part of the sale, valued in money, whether paid
in money or otherwise, and includes any amount for which
credit is given to the purchaser by the seller, without any
deduction therefrom on account of the cost of the property
sold, the cost of materials used, labor or service costs,
losses, or any other expense whatsoever; provided, that
‘ash discounts allowed and taken on sales shall not be in-
cluded; provided, that the term ‘‘sales price’’ shall not in-
clude any additional consideration given by the purchaser
for the privilege of making deferred payments regardless
App. 96
of whether such additional consideration shall be known as
interest, time price differential on conditional sales con-
tracts, carrying charges or any other name by which it
shall be known.
(e) ‘‘Cost price’’ means the actual cost of articles of
tangible personal property without any deductions there-
from on account of the cost of materials used, labor, or
service costs, transportation charges, or any expenses
whatsoever.
(f) ‘*‘Lease or rental’? means the leasing or renting
of tangible personal property and the possession or use
thereof by the lessee or renter for a consideration, without
transfer of the title of such property.
(g) ‘*Storage’’ means and includes any keeping or
retention in this state of tangible personal property for
use or consumption in this state, or for any purpose other
than sale at retail in the regular course of business.
(h) ‘*Use’? means and includes the exercise of any
right or power over tangible personal property incident to
the ownership thereof, except that it shall not inelude the
sale at retail of that property in the regular course of
business.
(i) ‘*Business’’ includes any activity engaged in by
any person, or caused to be engaged in by him, with the
object of gain, benefit, or advantage, either direct cr in-
direct. The term ‘‘business’’ shall not be construed in this
chapter to include occasional and isolated sales or trans-
actions by a person who does not hold himself out as en-
gaged in business, or the occasional and isolated sale at re-
tail or use of services sold by or purchased from a person
not regularly engaged in business as a vendor of taxable
App. 97
services or from one who is such a vendor but is not nor-
mally a vendor with respect to the services sold or pur-
chased in such occasional or isolated transaction. Pro-
vided, however, that it shall be construed to include oceas-
ional and isolated sales or transactions by such a person
involving aireraft, vessels or motor vehicles, (which terms
shall be construed to include trailers and special motor
equipment sold in conjunction therewith), as defined by
and required to be registered under the laws of Tennessee
with an agency of this state or under the laws of the
United States with an agency of the federal government,
unless such sales or transactions are otherwise exempt
under this chapter or are sales between persons who are:
married, lineal relatives or spouses of lineal relatives, or
siblings. Such sales or transactions involving aircraft
based in this state shall be presumed to be made and tax-
able in this state; and any registration reflecting such air-
craft which are so based shall constitute evidence thereof.
Provided further, however, that it shall not be construed
to include those occasional or isolated sales or transactions
by such a person involving mobile homes or house trailers,
as defined by § 59-421, when the consummation of such ex-
clusively involves the assumption by the purchaser of a
previously existing finance contract and no other consid-
eration is received by the seller.
(j) ‘*Retailer’’ means and includes every person en-
gaged in the business of making sales at retail, or for dis-
tribution, or use, or consumption, or storage to be used or
consumed in this state or furnishing any of the things or
services taxable under this chapter.
(k) The term ‘‘commissioner’’ means and includes
tie commissioner of finance and taxation of the state of
‘'ennessee, or his duly authorized assistants.
ili iii iia
App. 98
(1) ‘*‘Tangible personal property’’ means and _ in-
e.udes personal property, which may be seen, weighed,
measured, felt, or touched, or is in any other manner per-
ceptible to the senses. The term ‘‘tangible personal prop-
erty shall not include stocks, bonds, notes, insurance, or
other obligations or securities.
(m) The term ‘‘use tax’’ referred to in this chapter
iucludes the ‘‘use,’’ the ‘‘consumption,’’ the ‘‘distribu-
tion,’’ and the ‘‘storage’’ as herein defined.
(n) ‘Industrial machinery’’ shall mean machinery,
including repair parts and any necessary repair or taxable
installation labor therefor, which is directly and primarily
utilized in fabricating or processing tangible personal
property for resale, or equipment primarily used for air
pollution control or stream pollution control, where the
use of such machinery or equipment is by one who engages
in such fabrication or processing as his principal business
either within or without this state, or such use by a county
or municipality or a contractor pursuant to a contract with
such county or municipality for use in stream pollution
control or sewage systems. ‘‘Industrial machinery’’ shall
also mean machinery, the cost of which, for any such single
article, exceeds $1,000.00, which is directly and primarily
“utilized for the purpose of remanufacturing industrial ma-
chinery as defined in the first paragraph of this subsection
when such utilization is by one whose principal business is
that of remanufacturing industrial machinery.
(o) ‘Fabricating or processing tangible personal
property for resale’? shall include only tangible personal
property which is fabricated or processed for ultimate use
or consumption off the premises of the one engaging in
such fabricating or processing.
App. 99
(p) ‘‘Farm equipment and machinery’’ shall mean
any applicance used directly and principally for the pur-
pose of producing agricultural products, including nursery
products, for sale and use or consumption off the premises,
the retail price of which, for any such single article, exceeds
two hundred and fifty dollars ($250), but shall not include
an automobile, truck, household appliances or property
which becomes real property when erected or installed.
Notwithstanding the foregoing provisions, grain bins and
attachments thereto which are sold to or used_by a farmer
shall be considered ‘‘farm equipment and machinery.’’
(q) Livestock and poultry feed means and includes
all grains, minerals, salts, proteins, fats, fibers and al! vita-
mins, acids and drugs used and mixed with said ingredients
as a growth stimulant, disease preventive, to stimulate feed
conversion and make a complete feed. [Acts 1947, ch. 3,
§2; C. Supp. 1950, § 1248.51 (Williams, § 1328.23); Acts
1951, ch. 3, (1; modified; 1955, ch. 51, §$ 1-5; impl. am.
Acts 1959, ch. 9, 414; Acts 1959, ch. 15, $1; 1963, ch. 38,
$$ 1, 2, 7; 1963, ch. 172, §¢ 1, 2; 1965, ch. 3, § 1; 1965, ch.
335, §1; 1968 (Adj. S.), ch. 556, §1; 1968 (Adj. S.), ch.
601, § 1; 1969, ch. 95, § 1; 1970 (Adj. S.), ch. 390, § 1; 1971,
ch. 117, § 1; 1971, ch. 149, § 1; 1971, ch. 151, § 1; 1972 (Adj.
S.), ch. 528, § 1; 1972 (Adj. 8.), ch. 709, § 1; 1972 (Adj. 8.),
ch. 731, §1; 1972 (Adj. S.), ch. 757, §1; 1972 (Adj. S.),
ch. 769, § 1; 1973, ch. 179, § 1; 1074 (Adj. S.), ch. 778, § 1;
1976 (Adj. S.), ch. 442, § 1; 1977, ch. 42, § 1; 1977, ch. 250,
§ 1; 1978 (Adj. S.), ch. 565, §§ 1, 2; 1978 (Adj. S.), ch. 789,
§§ 1, 2; 1978 (Adj. S.), ch. 921, $1; 1979, ch. 352, $1;
1980, ch. 602, § 1.]
67-3003. Levy of tar—Rate.—It is declared to be
the legislative intent that every person is exercising a tax-
App. 100
able privilege who engages in the business of selling tangi-
ble personal property at retail in this state, or who uses
or consumes in this state any item or article of tangible
personal property as defined in this chapter, irrespective
of the ownership thereof or any tax immunity which may
be enjoyed by the owner thereof, or who is the recipient
of any of the things or services taxable under this chapter,
or who rents or furnish; any of the things or services
taxable under this chapter, or who stores for use or con-
sumption in this state any item or article of tangible per-
sonal property as defined in this chapter, or who leases or
rents such property, either as lessor or lessee, within the
state of Tennessee. For the exercise of said privilege, a
tax is levied as follows:
(a) At the rate of three percent (8%) of the sales
price of each item or article of tangible personal property
when sold at retail in this state; the tax to be computed
on gross sales for the purpose of remitting the amount
of tax due the state, and to include each and every retail
sale. Except that the rate of tax provided for in this para-
graph shall be four and one-half percent (444%) until
June 30, 1981, at which time it shall be three percent (3%).
(b) At the rate of three percent (3%) of the cost
price of each item or article of tangible personal property
when the same is not sold but is used, consumed, dis-
tributed, or stored for use or consumtion in this state;
provided there shall be no duplication of the tax. Except
that the rate of tax provided for in this paragraph shall
be four and one-half percent (444%) until June 30, 1981,
at which time it shall be three percent (3%).
App. i61
(c) At the rate of three percent (8%) of the gross
proceeds derived from the lease or rental of tangible per-
sonal property, as defined herein, where the lease or rental
of such property is an established business, or part of an
established business, or the same is incidental or germane
to said business. Except that the rate of tax provided for
in this paragraph shall be four and one-half percent (414%)
until June 30, 1981, at which time it shall be three percent
(37%).
(qd) At the rate of three percent (3%) of the monthly
lease or rental price paid by lessee or renter, or contracted
or agreed to be paid by lessee or renter, to the owner of
the tangible—personal property. Except that the rate of
tax provided for in this paragraph shall be four and one-
half percent (414%) until June 30, 1981, at which time it
shall be three percent (3%).
(e) At the rate of three percent (8%) of the gross
charge for all services taxable under this chapter. Except
that the rate of tax provided for in this paragraph shall
be four and one-half percent (444%) until June 30, 1981,
at which time it shall be three percent (3%).
(f) The said tax shall be collected from the dealer
as defined herein and paid at the time and in the manner
as hereinafter provided.
(g) Notwithstanding other provisions of this chapter,
tax imposed with respect to industrial machinery as de-
fined in Section 67-3002 shall be at the following rate:
(a) July 1, 1980-June 30, 1981—.75%
(b) July 1, 1981-June 30, 1982—.50%
(ec) July 1, 1982-June 30, 1983—.25%
App. 102
On and after July 1, 1983 no tax is due with respect to
industrial machinery.
Tax at the rate of one percent (1%) is likewise im-
posed with respect to water when sold to or used by manu-
facturers. Tax at the rate of one and one-half percent
(114%) shall be imposed with respect to gas, electricity,
fuel oil, coal and other energy fuels when sold to or used by
manufacturers. For the purpose of this provision a manu-
facturer is defined as one whose principal business is fabri-
eating or processing tangible personal property for resale.
Provided, however, that such substances shall be exempt
entirely from the taxes imposed by this chapter whenever
it may be established to the satisfaction of the commis-
sioner, by separate metering or otherwise, that they are
exclusively used directly in the manufacturing process,
coming into direct contact with the article being fabricated
or processed by the manufacturer, and being expended in
the course of such contact. Whenever the commissioner
determines that the use of such substances by a manufac-
turer meets said test, he shall issue a certificate evidencing
the entitlement of the manufacturer to said exemption, and
a certified copy thereof shall be furnished by the manu-
facturer to his supplier of such exempt substances. Said
certificate may be revoked by the commissioner at any
time upon a finding that the conditions precedent to the
exemption no longer exist. His action as to the granting
or revoking of a Certificate shall be reviewable solely by
a petition for common law certiorari addressed to the
chancery court of Davidson County.
Provided further that any water or energy fuel used
by a manufacturer in fabricating or processing tangible
App. 103
personal property for resale shall be exempt entirely from
the taxes imposed by this chapter when same are produced
or extracted by the manufacturer himself from facilities
owned by him or in the public domain.
(h) Notwithstanding other provisions of this chapter,
tax imposed with respect to farm equipment and machinery
as defined in Section 67-3002 shall be at the following rate:
(a) July 1, 1980-June 30, 1981--.75%
(b) July 1, 1981-June 30, 1982—.50%
(ec) July 1, 1982-June 30, 1983—.25%
On and after July 1, 1983 no tax is due with respect to
farm equipment and machinery.
(i) Tax at the rate of one and one-half percent
(114%) shall be imposed with respect to gas, electricity,
fuel oil, coal and other energy fuels sold directly to the
consumer for residential use. The Commissioner of Reve-
nue is authorized to promulgate such rules and regulations
as he considers necessary for the administration of this
subsection. [Acts 1947, ch. 3, 63; C. Supp. 1950, § 1248.52
(Williams, § 1828.24); Acts 1955, ch. 51, §$7, 8; 19595,
ch. 242, $6; 1959, ch. 15, § 2; 1965, ch. 38, $$ 3, 5; 1963,
ch. 172, § 3; 1965, ch. 335, § 2; 1971, ch. 78, § 1; 1971, ch.
117, § 2; 1972 (Adj. S.), ch. 653, $1; 1973, ch. 239, $1;
1974 (Adj. S.), ch. 675, § 1; 1975, ch. 316, § 1; 1976 (Ad).
S.), ch. 466, §§ 1, 3; 1977, ch. 178, § 1; 1978 (Adj. S8.), ch.
592, § 1; 1979, ch. 308, §¢ 1, 2; 1980, ch. 871, $$ 1, 2; 1980,
ch. 886, § 1.]
67-3004. Application of property by contractor.—
Where a manufacturer, producer, compounder or contractor
App. 104
erects or applies tangible personal property, which he has
manufactured, produced, compounded or severed from the
earth, other than: (1) any severed from the earth and
moved from one (1) place to another on the same job site;
and (2) dirt, soil, earth or any other kind of material
when used for construction or fill, whether from the same
construction or job site or elsewhere, such person so using
the tangible personal property shall pay the tax herein
levied on the fair market value of such tangible personal
property when used, without any deductions whatsoever,
provided, however, the foregoing shal] not be construed
to apply to contractors or subcontractors who fabricate,
erect or apply tangible personal property which becomes a
component part of a building, and which is not sold by them
as a manufactured item.
Where a contractor or subcontractor hereinafter de-
fined as a dealer, uses tangible personal property in the
performance of his contract, or to fulfill contract or sub-
contract obligations, whether the title to such property
be in the contractor, subcontractor, contractee, subcon-
tractee, or any other person, or whether the title holder of
such property would be subject to pay the sales or use
tax, except where the title holder is a church and the tangi-
ble personal property is for church construction, such con-
tractor or subcontractor shall pay a tax at the rate pre-
seribed by § 67-3003 measured by the purchase price or
fair market value of such property, whichever is greater,
unless such property has been previously subjected to a
sales or use tax, and the tax due thereon has been paid.
Provided, however, that the tax imposed by this sec-
tion shall have no application where the contractor or
App. 105
subcontractor, and the purpose for which such tangible
personal property is used, would be exempt from the sales
or use tax under any other provision of this chapter.
Provided, further, that the tax imposed by this see-
tion or by any other provision of this chapter, as amended
shall have no application with respect to the use by, or
the sale to, a contractor or subcontractor of atomic weapon
parts, source materials, special nuclear materials and by-
product materials, all as defined by the Atomic Energy
Act of 1954, or with respect to such other materials as
would be excluded from taxation as industrial materials
under paragraph (c)2 of § 67-3002 when the items referred
to in this proviso are sold or leased to a contractor or
subcontractor for use in, or experimental work in connec-
tion with, the manufacturing processes for or on behalf
of the atomic energy commission or when any of such items
are used by a contractor or subcontractor in such experi-
mental work or manufacturing processes.
Provided, further, that there is hereby exempted from
the provisions of this chapter, the sale or use of materials
and equipment purchased or used for construction or in-
stallation, by a contractor, subcontractor or otherwise, of,
in or as part of any electric generating plant or distribu-
tion system, any resource recovery facility where steam or
electric energy is produced, or any coal gasification plant
or distribution system owned or operated by the United
States or any agency thereof created by an act of congress,
or by the state of Tennessee or any agency or political
subdivision thereof, or any authority organized pursuant
to the state electric membership corporation law or the
electric cooperative law. There is also exempted the sale
App. 106
or use of materials and equipment purchased or used for
construction or installation by a contractor, subeontractor
or otherwise, of, in or as a part of any electrie generating
plant, including the transmission substation, owned or
operated by any person so long as such person does not
now or intend in the future to generate electricity from
a plant located in Tennessee or to distribute electricty to
consumers in Tennessee.
Provided further, that notwithstanding § 67-3018, no
sales or use tax shall be payable on account of any direct
sale or lease of tangible personal property or services to
‘he United States, or any agency thereof created by con-
gress, for consumption or use directly by it through its own
government employees. {Acts 1949, ch. 245, 61; C. Supp.
1950, § 1248.52 (Williams, § 1828.24); Acts 1955, ch. 242,
§7; 1957, ch. 166, $1; 1963, ch. 38, 46; 1963, ch. 174,
61; 1978 (Adj. S.), ch. 536, §1; 1978 (Adj. 8.), ch. 601,
§ 1; 1980, ch. 563, § 1; 1980, ch. 812, § 1.]
67-3005. Use tax on imports.—On all tangible per-
sonal property imported, or caused to be imported from
other states or foreign country, and used by him, the
‘dealer’? as defines! in § 67-3017, shall pay the tax imposed
by this chapter on a articles of tangible personal property
so imported and used, the same as if the said articles had
been sold at retail for use or consumption in this state.
For the purposes of this chapter, the use, or consumption,
or distribution, or storage to be used or consumed in this
state of tangible personal property shall each be equivalent
to a sale at retail, and the tax shall thereupon immediately
levy and be collected in the manner provided herein, pro-
vided there shall be no duplication of the tax in any event.
App. 107
It is not the intention of this section to levy the Use
Tax with respect to the personal automobile, the personal
effects, or the household furniture to be used in the resi-
dence of a person who having been a bona fide resident
of another state, has moved to and become a resident of
Tennessee, and has caused to be imported into Tennessee
such personal automobile, personal effects, or hoisehold
furnishing. [Acts 1947, ch. 3, §4; C. Supp. 1950, § 1248.55
(Williams, § 1328.25); Acts 1967, ch. 117, §1.]
67-3006. Effective date of use tarx—-It is further
specifically provided that the ‘‘use tax’’ shall not apply
to tangible personal property owned or acquired in this
state, or imported into this state, or held or stored in
this state prior to January 24, 1947. But, the ‘‘use tax”’
will apply to all tangible personal property imported or
caused to be imported into this state on or after January
24, 1947, unless said property has previously borne a sales
or use tax in another state equal to or greater than the
tax imposed by this chapter. [Acts 1947, ch. 3, § 4; C. Supp.
1950, § 1248.58 (Williams, § 1328.25).]
67-3007. Interstate commerce exempt.—It is not the
intention of this chapter to levy a tax upon articles of
tangible personal property imported into this state or
produced or manufactured in this state for export; nor
is it the intention of this chapter to levy a tax on bona
fide interstate commerce. It is, however, the intention of
this chapter to levy a tax on the sale at retail, the use, the
consumption, the distribution, and the storage to be used
or consumed in this state of tangible personal property
after it has come to rest in this state and has become a
part of the mass of property in this state. [Acts 1947, ch.
3, §4; C. Supp. 1950, § 1248.56 (Williams, § 1328.25).]
App. 108
67-3008. Credits for taxes paid in other states —The
provisions of this chapter shall not apply in respect to the
use or consumption, or distribution, or storage of tangible
personal property for use or consumption in this state
upon which a like tax equal to or greater than the amount
imposed by this chapter has been paid in another state,
the proof of payment of such tax to be according to rules
and regulations made by the commissioner. If the amount
of tax paid in another state is not equal to or greater than
the amount of tax imposed by this chapter, then the dealer
shall pay to the commissioner an amount sufficient to make
the tax paid in the other state and in this state equal to
the amount imposed by this chapter. [Acts 1947, ch. 3,
§4; C. Supp. 1950, § 1248.57 (Williams, § 1328.25); Acts
1957, ch. 63, § 1; 1967, ch. 117, § 2.]
67-3009. Additional tav—The tax so levied is and
shall be in addition to all other taxes, whether levied in the
form of excise, license, or privilege taxes, and shall be in
addition to all other fees and taxes levied. [Acts 1947,
ch. 3, §3; C. Supp. 1950, § 1248.52 (Williams, § 1328.24).]
67-3010. Religious publications exempt.—The taxes
levied under this chapter shall not apply to the use, sale,
or distribution of religious publications to or by churches
or other religious or charitable institutions for use in the
customary religious or charitable activities. [Acts 1947,
ch. 3, § 4; C. Supp. 1950, § 1248.59 (Williams, § 1328.25).]
67.3011. Agricultural products exempt—(a) The
gross proceeds derived from the sale in this state of live-
stock, nursery stock, poultry, and other farm or nursery
products direct from the farm are exempted from the tax
levied by this chapter, provided that such sales are made
App. 109
directly by the producers. When sales of livestock, nursery
stock, poultry, or other farm or nursery products are made
to consumers by any other person, as defined herein, other
than producer, they are not exempted from the tax imposed
by this chapter.
(b) It is specifieally provided that the ‘‘use tax’’ as
defined herein shall not apply to livestock and livestock
produets, to poultry and poultry products, to farm, nursery
and agricultural products, when produced by the farmer
or nurseryman and used by him and members of his family.
(c) Provided, however, that each and every agri-
cultural commodity sold by any person, other than a pro-
ducer, to any other person, who purchases not for direct
consumption but for the purpose of acquiring raw products
for use or for sale in the process of preparing, finishing,
or manufacturing such agricultural commodity for the ulti-
mate retail consumer trade shall be and is exempted from
any and all provisions of this chapter, including payment
of the tax applicable to the sale, storage, use, transfer, or
any other utilization or handling thereof, except when such
agricultural commodity is actually sold as a marketable
or finished product to the ultimate consumer, and in no
case shall more than one (1) tax be exacted.
The term ‘‘agricultural commodity,’’ for the purposes
hereof, shall mean horticultural, poultry, and farm pro-
ducts, and livestock and livestock products. [Acts 1947,
ch. 3, §5; C. Supp. 1950, § 1248.60 (Williams, § 1328.26) ;
Acts 1978 (Adj. S.), ch. 921, §§ 2, 3.]
67-3012. Miscellaneous property erempt.—(1) The sale
at retail, the use, the consumption, the distribution, and the
storage for use or consumption in this state of the follow-
App. 110 :
ing tangible personal property is specifically exempted
from the tax imposed by this chapter:
(a) Gasoline as defined by statute in Tennessee,
upon which a privilege tax per gallon is paid, and not re-
funded, or gasoline or diesel fuel used for ‘‘agricultural
purposes’’ as this term is defined in § 67-3602. For pur-
poses of this subpart ‘‘diesel fuel’? means any petroleum
distillate with at least twelve (12) to sixteen (16) carbon
atoms per molecule and which has a boiling point of be-
tween 350 degrees (850°) and 650 degrees (650°) F. or
any petroleum distillate which is ordinarily and custom-
arily sold and used as a source of fuel for diesel engines;
(b) Motor vehicle fuel now taxed per gallon by
chapter 37 of this title;
(c) Newspapers;
(d) Seedlings, or plants grown from seed when sold
directly to the farmer and nurseryman;
(e) Fertilizer and containers used for farm products
and field and garden seeds when sold directly to the farmer
and nurseryman ;
(f) Insecticide and pesticide chemicals when sold di-
rectly to and used by the farmer and nurseryman;
(g) Fungicide chemicals when sold directly and used
by the farmer and nurseryman ;
(h) Herbicide chemicals when sold direetly to the
farmer and nurseryman used to destroy or prevent the
growth of weeds and bushes;
(i) Livestock and poultry feeds;
App. 111
’
(j) Shoppers’ advertisers using newsprint distribu-
ted in Tennessee or within a twenty-five (25) mile radius
thereof at regular intervals and provided without charge
to the shopper;
(k) Caskets and burial vaults used in the burial of
the dead, up to or not to exceed five hundred dollars ($500) ;
(1) Sehool books and school lunches;
(m) All sales made to the state of Tennessee or any
county or municipality within the state; and
(n) Hearing aids, as this term is defined in § 63-
1502(3).
(2) There shall also be exempt from the provisions
of this chapter all sales of tangible personal property to
telephone cooperatives organized under the general wel-
fare laws of this state. The exemption provided for herein
shall apply only to sales of tangible personal property to
telephone cooperatives for their own use and consumption,
and shall not apply to any purchases made by the said
telephone cooperatives for use by independent contractors.
This paragraph shall apply only so long as electric mem-
bership corporations organized under the electric member-
ship corporation law and electric cooperatives organized
under the electric cooperative law, shall be entitled to an
exemption from the payment of any sales and use tax.
(3) There shall further be exempted all sales of
tangible personal property to commercial marine vessels
for use by such vessels where the deliveries of such prop-
erty are made in mid-stream of waterways constituting
geographical boundaries of this state. Dealers shall, how-
ever, be required to support such sales by bills of sale
App. 112
positively reflecting such delivery receipted by the master
of the deliveree vessel.
(4) There shall also be exempt from sales tax any
replacement parts or goods transferred without cost to
a purchaser for the replacement of faulty parts or equip-
ment which prior thereto had been sold under a warranty
or guarantee or condition and upon which original pur-
chase or importation a sales or use tax was paid.
(5) There shall also be exempt from sales or use
tax the transfer, by any dealer in personal property, of
any item from inventory to be used for demonstration
purposes; provided that such article of personal property
shall be returned to inventory for sale in the usual course
of trade within one hundred twenty (120) days; if such
article of personal property is used for demonstration pur-
poses for a period in excess of one hundred twenty (120)
days the dealer shall pay a use tax thereon for the amount
that the cost of the article to the dealer exceeds the sales
price of the article upon which sales tax is regularly
assessed and paid when it is subsequently sold to a con-
sumer.
(6) There shall also be exempt from sales and use
tax the sale, at retail, for out-of-state use, of motor vehicles
which are not to be registered, titled and used in this state.
Use of a vehicle so sold, for transportation by the pur-
chaser or his agent from point of purchase within this state
to a point outside of this state, by direct route, not more
than three (3) calendar days following the date noted
upon the bill of sale, shall not constitute such usage as to
remove tax exemption from such sale.
eeu
App. 113
(7) There shall also be exempt from sales or use
tax, the sale, use, storage or consumption of parts, ac-
cessories, materials and supplies sold to or used by com-
mercial interstate or international air carriers for use
exclusively in servicing and maintaining such carriers’
aireraft, which aireraft are used principally in interstate
or international commerce. This exemption shall not apply
to fuel and other petroleum products or to shop equip-
ment and tools.
(8) |[Kffeetive January 1, 1980] There shali also
be exempt from sales tax the transfer, by any dealer ip
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 vessels
or rolling stock are being purchased for use in interstate
commerce or outside the state of Tennessee; and any such
vessel or rolling stock shall also be exempt from use tax
so long as it is being used in interstate commerce.
(9) There shall be exempt from the tax imposed by
this chapter any prescription drug or medicine issued by
a licensed pharmacist in accordance with an individual
prescription written for the use of a human being by a
practitioner of the healing arts licensed by the state of
Tennessee.
There shall also be exempt from the tax imposed by
this chapter any prescribed drug or medicine sold to a
practitioner of the healing arts licensed by the state of
Tennessee or issued by a licensed pharmacist for use in
the treatment of a human being.
(10) An optometrist, optician or ophthalmologist
shall be considered the user and consumer of the tangible
App. 114
personal property used in the practice of his profession,
and the tax levied under this chapter shall not be appli-
eable to all or any part of the charge made by sueh per-
sons to their patients. All sales of tangible personal prop-
erty and taxable services to an optometrist, optician or
ophthalmologist shall be subject to the sales or use tax.
(11) There shall also be exempt from sales and use
tax the transfer between spouses of an automobile when
such transfer is the result of a decree of divoree termi-
nating that marriage.
(12) There shall also be exempt from the tax im-
posed by this chapter any sales of oxygen preseribed or
recommended for the medical treatment of a human being
by a licensed practioner of the heading arts, and equip-
ment necessary to administer such oxygen.
(13) There shall also be exempted any sale of a
motor vehicle to a nonresident member of a uniformed
service, as defined in the Internal Revenue Code of 1954,
stationed under orders of their branch ef service on a mili-
tary reservation located partially within the boundary of
Tennessee and that of another state. Dealers shall sup-
port each such sale by attachment to their file copy of
the invoice evidencing it a copy of the official orders re-
lating to stationing of the purchaser and proof of non-
residency. This exemption shall terminate upon publica-
tion in the Tennessee administrative register of a certifi-
cation made by the commissioner of revenue to the secre-
tary of state that a substantially identical exemption is no
longer accorded by the other state whose boundary encom-
passes the other portion of a military reservation located
only partially within the boundary of this state.
App. 115
(14) There shall also be exempt from the sales and
use tax samples produced by a pharmaceutical plant within
the state for future distribution outside of the state or tem-
porarily stored by such pharmaceutical plant within the
state for future distribution outside of the state.
(15) Sales to or used by a contractor, subcontractor
or material vendor of tangible personal property, including
rentals thereof and labor or services performed in the
fabrication, manufacture, delivery or installation of such
tangible personal property, if that property is sold or used
solely in the performance of a preexisting lump sum or
unit price construction contract shall be exempt from the
payment of the state rate of tax as provided in this chap-
ter, at a rate in excess of that as provided by law March
31,1976. For the purpose of this paragraph the term ‘‘pre-
existing lump sum or unit price construction contract’’
shall mean a written contract for the construction of im-
provements to real property under which the amount pay-
able to the contractor, subcontractor or material vendor
is fixed without regard to the costs incurred by him in the
performance thereof, and which was entered into prior to
April 1, 1976. Upon the application of any person, includ-
ing a contractor, subcontractor, or material vendor, claim-
ing the exemption in this paragraph, the commissioner is
authorized to issue exemption certificates to such persons
which, in his judgment, are entitled thereto. The commis-
sioner of revenue is authorized to make final determina-
tion after hearing, if demanded, as to whether any person
is entitled to the benefit of the exemption established by
this paragraph. In the event any contractor, subcontractor
or material vendor, pursuant to a preexisting lump sum
or unit price construction contract, has paid the state sales
App. 116
tax at a rate in excess of the rate provided by law in effect
on Mareh 31, 1976, upon the application of any person
claiming the benefit of the exemption established by this
paragraph, the commissioner of revenue shall issue to such
taxpayer, in his capacity as a dealer, an official credit
memorandum equal to the net amount paid by such tax-
payer in excess of such rate. Such memorandum shall be
aecepted by the commissioner at full face value from the
dealer to whom it is issued, in the remittanee for subse-
quent taxes accrued under the provisions of this chapter,
provided that in cases where a dealer has retired or has
otherwise withdrawn from business and has filed a final
return, or in cases where the dealer has anticipated tax
liability which is insufficient, in the determination of the
commissioner, to extinguish the credit within two years,
a refund of tax shail be made to such dealer to the extent
of the unused portion of such credit memorandum. Pro-
vided, however, all such refunds shall be made under the
procedures and limitations set out in § 67-2301. The com-
missioner may, in his discretion, limit the credit allowable
under this subdivision so that the credit will be allowed
equally in the fiscal year in which claimed and the two
succeeding fiscal years. Claims for credit under this sub-
division shall be barred if not filed before September 30,
1978, or such later date which is within the limitations set
forth in § 67-2301.
(16) There shall also be exempt from the tax im-
posed by this chapter the sale of human blood, blood plas-
ma, or any part thereof by any institution or organization
which has received a determination of exemption from the
Internal Revenue Service under § 501(¢)(3) of the Inter-
nal Revenue Code.
nietiong —
App. 117
(17) There shall further be exempt from the sales
and use tax the proceeds derived from sales at gun shows,
displays or exhibits, sponsored by any nonprofit organiza-
tion of gun collectors. This exemption shall not be appli-
cable to any sale made by a person~ who regularly en-
gages in business as a dealer in guns, or to any sale of a
gun for future delivery.
(18) There shall also be exempt from sales and use
tax the sale, at retail, of insulin and any syringe used to
dispense insulin.
(19) There shall also be exempt from the sales tax
imposed by this chapter the transfer of an artifical limb
to a person who has need for such artificial limb due to
his loss of an arm or leg or any part thereof and the re-
tail sale of lift devices designed to permit ingress and
egress of handicapped persons confined to wheelchairs
from their personal motor vehicles. There shall also be
exempt from the sales tax imposed by this chapter the
sale of any item necessary for the use or wearing of any
artificial limb and the sale of any necessary maintenance
service on any artificial limb, lift device, or wheelchair
to handicapped persons who use such items.
(20) There shall also be exempt from the tax im-
posed by this chapter the sale, transfer, or lease of indus-
trial machinery, as that term is defined in Tenessee Code
Annotated, Section 67-3002, to or from a parent corpora-
tion and a wholly owned subsidiary to the extent that such
Tennessee sales and use tax applicable to such machinery
has previously been paid by such parent or subsidiary
corporations.
App. 118
(21) There shall also be exempt from sales or use
tax all sales of tangible personal property to watershed
districts for use and consumption by such districts. [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 (Adj. S.), ch. 466, § 2; 1976
(Adj. S.), ch. 524, §1; 1976 (Adj. S.), ch. 689, 41; 1976
(Adj. S.), eh. 711, § 1; 1976 (Adj. S.), ch. 733, § 1; 1977,
ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch.
487, §1; 1978 (Adj. S.), ch. 732, § 1; 1978 (Adj. S.), ch.
733, §1; impl. am. Acts 1978 (Adj. S.), ch. 761, § 116; 1978
(Adj. S.), ch. 793, § 1; 1978 (Adj. S.), ch. 831, § 1; 1978
(Adj. S.), ch. 832, §1; 1978 (Adj. S.), 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. 618, § 1; 1980, ch. 748, § 1; 1980, ch. 863,
§1.]
67-3013. Exemption of film and transcription rent-
als——There shall also be exempted all rental from films
to theaters which pay the privilege tax of two percent
(2%) of their gross receipts, as provided by Item R of
§ 67-4102. There shall also be exempt from the provisions
of this chapter all rental for films, transcriptions and re-
cordings to radio stations and television stations operating
under a certificate from the federal communications com-
mission. [Acts 1951, ch. 172, §1; 1953, ch. 128, § 1 (Wil-
liams, § 1328.27).]
App. 119
67-3014. Exemption of religious, educational, chari-
table and certain nonprofit organizations.—(a) There
shall be exempt from the provisions of this chapter any
sales or use tax upon tangible personal property or tax-
able services sold, given, or donated to any:
(1) Chureh;
(2) University, including the Agricultural Founda-
tion for Tennessee Tech, Inc.;
(3) College;
(4) School ;
(5) Orphanage;
(6) Institution organized for the principal purpose
of placing homeless children in foster homes;
(7) Home for the aged;
(8) Hospital;
(9) Girls’ elub;
(10) Boys’ club;
(11) Community health council;
(12) Volunteer fire department;
(13) Organ bank for transplantable tissue;
(14) Organization whose primary objective is to pro-
mote the spiritual and rec¥eational environment of mem-
bers of the armed services of the United States of America,
such as the United Service Organization as it is presently
conducted ;
(15) Historical property owned by the state and op-
erated by the historical commission or under the jurisdic-
tion of the commission as authorized by § 4-1108;
(16) Nonprofit community blood banks;
(17) Senior citizen service centers which meet the
standards set by the Tennessee commisison on aging for
eligibility to receive state funds;
App. 120
(18) Nonprofit corporation whose primary function
involves the annual organization, promotion, and spon-
sorship of a statewide talent and beauty pageant in which
contestants compete for scholarships, awarded by such
nonprofit corporation, as well as for the opportunity of
being Tennessee's representative and contestant in an an-
nual nationwide talent and beauty pageant with which
such nonprofit corporation is affiliated.
(b) In addition to the exempt institutions, organiza-
tions and historical properties described in subsection (a)
there shall also be exempt such other institutions and or-
ganizations which have received a determination of exemp-
tion from the Internal Revenue Service under § 501(e) (3)
(42 U.S.C. §501(¢)(3) of the Internal Revenue Code and
are currently operating under it.
(c) Any exemption granted under subsection (a) or
(b) shall be limited to such institutions, organizations or
historical properties which 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.
(d) Any exemption granted under the preceding sub-
sections shall only apply to sales, gifts, or donations made
directly to the exempt institution, organization or histori-
cal property. There shall be no exemption upon sales,
gifts, or donations made to an independent contractor with
any such exempt institution, organization or historical
property.
(e) No dealer shall sell, give, or donate and no user
shall use any tangible personal property under the claim
that the same is exempt from the sales or use tax levied
by this chapter, where the exemption from taxation is
claimed beeause the vendee or user is an educational, re-
A At ll ae a A Bin anal se tana salt. wilt
App. 121
ligious or charitable institution or organization or his-
torical property and is entitled to an exemption as such
institution or organization or historical property under
subsections (a)-(d), unless the vende or user shall have is
sned to it by the commissioner an exemption certificate
declaring that such institution or organization or historical
property is entitled to the exemption provided for by said
paragraphs.
(f) The commissioner is authorized to make final de-
termination after hearing, if demanded, as to whether any
institution or organization or historical property is enti-
tled to the benefit of the exemption established by said
four (4) paragraphs. The commissioner is authorized to
issue exemption certificates to institutions and organiza-
tions and historical properties which, in his judgment, are
entitled thereto. [Acts 1949, ch. 110, § 1; 1949, ch. 237, § 1;
C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1967,
ch. 364, § 1; 1967, ch. 369, § 1; 1968 (Adj. S.), ch. 531, 61;
1973, ch. 263, § 1; 1975, ch. 125, § 1; 1975, ch. 270, § 1, 2;
1975, ch. 290, § 1; 1976 (Adj. S.), ch. 619, § 1; 1976 (Adj. 8.),
ch. 684, § 1; 1976 (Adj. S.), ch. 791, § 1; 1977, ch. 97, $$ 1, 2;
1977, ch. 125, 1; 1979, ch. 63, $4 1-4; 1979, ch. 168, § 1.]
67-3015. Computation on trade-ins—Where used
articles are taken in trade, or in a series of trades, as a
credit or part payment on the sale of new or used articles,
the tax levied by this chapter shall be paid on the net dif-
ference, that is, the price of the new or used article sold
less the credit for the used article taken in trade. [Acts
1947, ch. 3, subsee. 6; mod. C. Supp. 1950, § 1248.62 (Wil-
liams, § 1328.28).]
67-3016. Collection from dealers.—The aforesaid tax
at the rate provided by law of the retail sales price, as of
App. 122
the moment of sale, or of the cost price, as of the moment
of purchase, as the case may be, shall be collectible from
all persons, as defined in § 67-3002, engaged as dealers, as
defined in § 67-3017, in the sale at retail, the use, the con-
sumption, the distribution, and the storage for use or
consumption in this state of tangible personal property, or
in the furnishings of any of the things or services taxable
under this chapter. [Acts 1947, ch. 3, §4; C. Supp. 1950,
§ 1248.53 (Williams, § 1528.25); Acts 1955, ch. 51, §§ 7, 9;
1971, ch. 117, § 3.)
67-3017. ‘‘Dealer’’ defined.—The term ‘‘dealer’’ is
further defined to mean every person, as used in this chap-
ter, who manufactures or produces tangible personal prop-
erty for sale at retail, for use, or consumption, or distribu-
tion, or for storage to be used or consumed in this state.
9?
The term ‘‘dealer’’ is further defined to mean every
person, as used in this chapter, who imports or causes to
be imported, tangible personal property from any state or
foreign country, for sale at retail, for use, or consumption,
or distribution, or for storage te be used or consumed in
this state.
The term ‘‘dealer’’ is further defined to mean every
person, as used in this chapter, who sells at retail, or who
offers for sale at retail, or who has in his possession for
sale at retail, or for use, or consumption, or distribution,
or storage to be used or consumed in this state, tangible
personal property as defined herein.
The term ‘‘dealer’’ is further defined to mean any
person who has sold at retail, or used, or consumed, or
distributed, or stored for use or consumption in this state,
tangible personal property and who cannot prove that the
tax levied by this chapter has been paid on the sale at re-
App. 12
tail, the use, the consumption, the distribution, or the stor
age of said tangible personal property.
,
The term ‘‘dealer’’ is further defined to mean any
person who has sold at retail, or used, or consumed, or
distributed, or stored for use or consumption in this state,
tangible personal property and who cannot prove that
the tax levied >yv this chapter has been paid on the sale at
retail, the use, the consumption, the distribution, or the
storage of said tangible personal property.
The term ‘‘dealer’’ is further defined to mean any
person, as used in this chapter, who leases or rents tan-
gible personal property, as defined in this chapter, for a
consideration, permitting the use or possession of said
property without transferring title thereto.
The term ‘‘dealer’’ is further defined to mean any
person, as used in this chapter, who is the lessee or renter
of tangible personal property, as defined in this chapter,
and who pays to the owner of such property a considera-
tion for the use or possession of such property without ac-
quiring title thereto.
The term ‘‘dealer’’ is further defined to mean any per-
son as used in this chapter, who maintains or has within
this state, directly or by a subsidiary, an office, distribut-
ing house, sales room, or house, warehouse, or other place
of business.
The term ‘‘dealer’’ is further defined to mean any
person as defined in this chapter, who furnishes any of the
things or services taxable under this chapter.
The term ‘‘dealer’’ is further defined to mean any
person, as used in this chapter, who has any representa-
App. 124
tive agent, salesman, canvasser or solicitor operating in
this ‘state, or any person who serves in such capacity, for
the purpose of making sales or the taking of orders for
sales, irrespective of whether such representative, agent,
salesman, canvasser or solicitor is located here perman-
ently or temporarily, and irrespective of whether an estab-
lished place of business is maintained in this state.
The term ‘‘dealer’’ is further defined to mean and in-
clude any person, as used in this chapter, who distributes
catalogues or other advertising matter and by reason
thereof receives and accepts orders from residents of this
state.
The term ‘‘dealer’’ is further defined to mean any
person who uses tangible personal property, whether the
title to such property is in him or some other entity, and
whether or not such other entity is required to pay a sales
or use tax, in the performance of his contract or to fulfill
his contract obligations, unless such property has pre-
viously been subjected to a sales or use tax, and the tax
due thereon has been paid. [Acts 1947, ch. 2, 44; C. Supp.
1950, § 1248.53 (Williams, § 1328.25); Acts 1955, ch. 51,
§ 10; 1955, ch. 242, §§ 1, 8.]
67-3018. Payment by dealer.—Every ‘‘dealer’’ mak-
ing sales, whether within or outside the state, of tangible
personal property, for distribution, storage, use, or other
consumption in this state, or furnishing any of the things
or services taxable under this chapter, shall be liable for
the tax imposed by this chapter. [Acts 1947, ch. 3, § 4;
C. Supp. 1950, § 1248.54 (Williams, § 1328.25); Acts 1955,
ch. 51, § 11; 1957, ch. 307, § 1; 1969, ch. 3, § 1.]
ht ie
pee ee
At SE CD LO tl Bao
we eh i Eh Bak ar cee,
App. 125
67-3019. [Repealed.]
Note. This section (Acts (Williams, § 1328.26)) was
repealed by 1947, ch. 3, $5; C. Supp. 1950, § 1248.60 Acts
1996,ch. 3, § 2.
67-3020. Collection and payment by retailers.—(a)
The commissioner may by regulation provide that the
amount collected by the retailer from the consumer in re-
imbursement of the tax be displayed separately from the
list price, the price advertised in the premises, the marked
price, or other price on the sale check or other proof of
sale.
(b) When the tax collected for any period is in excess
of that provided by law, the total tax collected shall be
paid over to the commissioner, less any compensation al-
lowed to the dealer as hereinafter set forth. This provi-
sion shall be construed with other provisions of this chap-
ter and given effect so as to result in the payment to the
commissioner of the total tax collected if in excess of that
provided by law.
(c) Every dealer licensed to do business in the state
of Tennessee who shall become delinquent for more than
ninety (90) days in the payment of any sales or use taxes
due the state after March 8, 1963, shall, upon notice from
the commissioner, post with the commissioner cash or an
indemnity bond with good and solvent surety, approved by
him, in an amount equal to three (3) times the average
monthly sales tax liability or use tax liability of said
dealer, conditioned upon the proper payment of retail
sales taxes or use taxes for which such dealer may become
liable; provided, further, that in the event that any dealer
who may become subject to the provisions of this sub-
~
App. 126
section shall fail to post said cash or surety bond, said
dealer shall be subject to revocation of any one (1) or
more of the certificates of registration held by him as pro-
vided by § 67-3041. The bond provided for herein shall
run for such time as may be determined by the commis-
sioner.
(d) The tax hereby imposed shall be collected by
the retailer from the consumer insofar as it can be done.
[Acts 1947, ch. 3, §5; C. Supp. 1950, § 1248.60 (Williams,
§ 1328.26) ; Acts 1955, ch. 51, § 7; ch. 307, § 2; 1963, ch. 89,
§1; 1969, ch. 3, §3; 1970, (Adj. S.), ch. 402, §1; 1971,
ch. 117, § 4.]
67-3021. Deduction for accounting expense.—For the
purpose of compensating the dealer in accounting for and
remitting the tax Jevied on and after July 1, 1980, by this
chapter, a dealer shall be allowed a deduction of tax due,
reported, and paid to the department as follows:
(1) 2 percent (2%) of the first $2,000 on each re-
port, and
(2) (14%%) of amounts over $2,000 on each report.
Beginning July 1, 1985, and thereafter, for the pur-
pose of compensating the dealer in accounting for and re-
mitting the tax levied by this chapter, a dealer shall be
allowed a deduction of tax due, reported, and paid to the
department of 2 percent (2%) on each report.
No deduction from tax shall be allowed if any such
report or payment of tax is delinquent.
Provided, however, when delinquency of the amount
due is caused by the destruction by fire or other casualty
of the dealer’s place of business or business records, such
a
Na ral Bo ull Neh dre Sieaee unaired —e
:
4
4
€
4
App. 127
dealer shall be allowed the two percent (2%) deduction
from the amount of tax due as authorized in this section.
[Acts 1947, ch. 3, § 8; C. Supp. 1950, § 1248.65 (Williams,
§ 1328.30) ; 1980, ch. 594, 46 1, 2,3; 1980, ch. 871, § 3.]
NOTE: Destruction by fire provision retroactive to
1/1 ‘78 and repealed effective 4/18/80.
67-3022. Monthly returns and payment——The taxes
levied hereunder shall be due and payable monthly, on the
first day of each month, and for the purpose of ascertain-
ing the amount of tax payable under this chapter it shall
be the duty of all dealers on or before the 20th day of each
month to transmit to the commissioner, upon forms pre-
scribed, prepared and furnished by him, returns, showing
the gross sales, or purchases, as the case may be, arising
from all sales or purchases taxable under this chapter dur-
ing the preceding calendar month. [Acts 1947, ch. 3, § 8;
C. Supp. 1950, § 1248.64 (Williams, § 1328.30; modified).]
67-3023. Payment of tax with return.—At the time of
transmitting the return required hereunder to the commis-
sioner the dealer shall remit to him therewith the amount
of tax due under the applicable provisions of this chapter
and failure to so remit such tax shall cause said tax to
become delinquent. [Acts 1947, ch. 3, § 10; C. Supp. 1950,
§ 1248.75 (Williams, § 1328.32).]
67-3024. Payment of tax on rentals or furnishing of
things or services —Gross proceeds from rentals or leases
of tangible personal property shall be reported and the tax
shall be paid with respect thereto in accordance with such
rules and regulations as the commissioner may prescribe.
App. 128
It is declared to be the intention of this chapter to im-
pose a tax on the gross proceeds of all leases and rentals
of tangible personal property in the state where the lease
or rental is a part of the regularly established business, or
the same is incidental or germane thereto.
Gross proceeds from the furnishing of things or ser-
vices taxable under this chapter shall be reported and the
tax shall be paid with respect thereto in the same manner
as gross proceeds from the sale, rental or lease of tan-
gible personal property and in accordance with such rules
and regulations as the commissioner may prescribe.
[Acts 1947, ch. 3, $8; C. Supp. 1950, § 1248.64 (Williams,
§ 1828.30) ; Acts 1955, ch. 51, § 12.]
67-3025. Settlement of tax on quitting business—
Collection of tax from debtor or dealer—(a) If any deal-
er liable for any tax, interest or penalty levied hereunder
shall sell out his business or stock of goods, or shall quit
the business, he shall make a final return and payment
within fifteen (15) days after the date of selling or quit-
ting the business. His successor, successors, or assigns,
if any, shall withhold sufficient of the purchase money to
cover the amount of such taxes, interest, and penalties due
and unpaid until such former owner shall produce a re-
ceipt from the commissioner showing that they have been
paid, or a certificate stating that no taxes, interest, or
penalties are due. If the purchaser of a business or stock
of goods shall fail to withhold the purchase money as
above provided, he shall be personally liable for the pay-
ment of the taxes, interest, and penalties accruing and un-
paid on account of the operation of the business by any
former owner, owners, or assigns.
App. 129
(b) In the event any dealer is delinquent in the pay-
ment of the tax herein provided for the commissioner may
give notice of the amount of such delinquency by regis-
tered mail to all persons having in their possession or
under their control any credits or other personal property
belonging to such dealer, or owing-any debts to such deal-
er at the time of receipt by them of such notice, and there-
after any person so notified shall neither transfer nor make
any other dispositions of such credits, other personal prop-
erty, or debts, until the commissioner shall have consented
to a transfer or disposition, or until thirty (30) days shall
have -elapsed from and after the receipt of such notice.
All persons so notified must, within five (5) days after
receipt of such notice, advise the commissioner of any and
all such eredits, other personal property, or debts, in their
possession, under their control, or owing by them, as the
case may be.
(c) Any violation of the provisions of this section
shall be a misdemeanor and punishable as such. [Acts
1947, ch. 3, §7; C. Supp. 1950, § 1248.63 (Williams,
§ 1328.29).]
67-3026. Interest and penalties for delinquency—Ez-
tension of time for making return—Establishment of filing
dates.—When any deale~ shall fail to make any return and
pay the full amount of the tax required by this chapter
there shall be imposed, in addition to other penalties pro-
vided herein, a specific penalty to be added to the tax in
the amount of five percent (5%), if the failure is for not
more than thirty (30) days with an additional five per-
cent (5%), for each additional thirty (30) days, or frac-
tion thereof, during which the failure continues, not to
exceed twenty-five percent (25%) in the aggregate. In
App. 130
the case of a faise or fraudulent return, where willful in-
tent exists to defraud the state of any tax due under this
chapter, a specific penalty of fifty percent (50%) of the
tax shall be assessed. Provided, however, where a return
is delinquent at the time it is filed or becomes delinquent,
the minimum penalty may be five dollars ($5.00), regard-
less of the amount of tax due or whether there is any tax
due.
When an examination of a dealer’s books and records
indicates that the dealer is deficient in paying the prop-
er tax due for a month, but has paid more tax than is
actually due for another month, or is deficient in paying
the proper tax on one or more transactions within a month,
but has paid more tax than is actually due on other trans-
actions during the same month, or has erroneously paid
tax to another dealer, the overpayment or erroneous pay-
ment shall be applied to the deficiency before computing
any penalty and interest due as a result of such exam-
ination, the earliest overpayments offsetting the earliest
underpayments for this purpose, and the penalty, if any,
being computed on the amounts of underpayments not off-
set by overpayments.
All penalties and interest imposed by this chapter
shall be payable to and collectible by the commissioner in
the same manner as if they were a part of the tax imposed.
The commissioner is specifically authorized to estab-
lish by regulation periodic filing and payment dates other
than monthly in those instances where the commissioner
deems it to be in the best interests of the state to do so;
provided, however, that in such cases where the average
monthly liability is or is indicated to be more than one
hundred dollars ($100), the commissioner shall require
App. 131
advance deposits in such amounts as the commissioner
deems necessary to protect the state’s interest.
The commissioner for good cause may extend for not
to exceed thirty (30) days the time for making any returns
required under the provisions of this chapter. [Acts
1947, ch. 3, § 8; 1949, ch. 245, § 3; C. Supp. 1950, § 1248.66
(Williams, § 1328.30); Acts 1965, ch. 4, § 1; 1969, ch. 164,
$$ 1, 2; 1970 (Adj. S.), ch. 360, § 1; 1977, ch. 64, § 1, 1980,
ch. 885, § 13.]
NOTE: Effective July 1, 1980, interest rate is pro.
vided for in section 67-112, TCA.
67-3027. Form of payment.—All taxes, interest, and
penalties imposed under this chapter shall be paid to the
commissioner at Nashville in the form of remittance re-
quired by him. [Acts 1947, ch. 3, §10; C. Supp. 1950,
§ 1248.76 (Williams, § 1328.32).]
67-3028. Credit for sales returns and allowances.—
In the event purchases are returned to the dealer by the
purchaser or consumer after the tax imposed by this chap-
ter has been collected, or charged to the account of the
consumer or user, the dealer shall be entitled to reimburse-
ment of the amount of tax so collected or charged by him,
in the manner prescribed by the commissioner; and in case
the tax has not been remitted by the dealer to the com-
missioner, the dealer may deduct the same in submitting
his return upon receipt of a signed statement of the dealer
as to the gross amount of such refunds during the period
covered by said signed statement, which period shall not
be longer than ninety (90) days. In the event a dealer
shall sell any article of personal property on a security
agreement or other title retained instrument and_ such
SE ee
App. 132
dealer shall thereafter be required to repossess or enforce
his lien on said article of personal property at a time when
the balance due on the unpaid purchase price shall exceed
five hundred dollars ($500), such dealer shall be entitled
to a credit on the sales tax which he shall be required to
collect and remit to the commissioner in an amount equal
to the difference between the amount of the sales tax col-
lected and paid at the time of the original purchase and
the amount of sales tax which would be owed on that por-
tion of the purchase price which has actually been paid by
the purchaser, plus the sales tax on the first five hundred
dollars ($500) of the unpaid balance of the purchase price.
The commissioner shall issue to the dealer an official
credit memorandum equal to the net amount remitted by
the dealer for such tax collected. Such memorandum shall
be accepted by the commissioner at full face value from
the dealer to whom it is issued, in the remittance for sub-
sequent taxes accrued under the provisions of this chap-
ter, provided that in cases where a dealer has retired from
business and has filed a final return, a refund of tax may
be made if it can be established to the satisfaction of the
commissioner that the tax was not due.
A dealer who has paid the tax imposed by this chapter
on any sale as defined in § 67-3002 may take credit in any
return filed under the provisions of this chapter for the
tax paid by him on the unpaid balance due on accounts
which during the period covered by the current return
have been found to be worthless and are actually charged
off for federal income tax purposes, provided, that if any
accounts so charged off are thereafter in whole or in part
paid to the dealer, the amount so paid shall be included in
the first return filed after such collection and the tax
App. 133
paid accordingly. [Acts 1947, ch. 3, §13; C. Supp. 1950,
§ 1248.82 (Williams, $1328.35); Acts 1965, ch. 358, ¢1;
1974 (Adj. §.), ch. 798, § 1.]
67-3029. Estimate by commissioner of tax due.—In
the event any dealer fails to make a report and pay the
tax as provided by this chapter, or in case any dealer
make a grossly incorrect report, or a report that is false
or fraudulent it shall be the duty of the commissioner to
make an estimate for the taxable period of retail sales of
such dealer, or of the gross proceeds for rentals or leases
of tangible personal property by the dealer, estimating
the cost price of all articles of tangible personal property
imported by the dealer for use or consumption or dis-
tribution or storage to be used or consumed in this state,
and assess and collect the tax and interest, plus penalty,
if such have accrued, on the basis of such assessment,
which shall be considered prima facie correct, and the bur-
den to show the contrary shall rest upon the dealer. How-
ever, if the dealer can show by reasonable proof that he
has paid any Tennessee Sales or Use Tax to a vendor on
personal property or taxable service which such dealer
has subsequently sold without collecting tax on the resale
of said personal property or taxable service, then the deal-
er shall be given credit for any such payment in computing
any liability to the Department of Revenue for Sales or
Use Tax. Reasonable proof can be supplied by invoices
and other records which the dealer may obtain from the
vendors from which he has made purchases. [Acts 1947,
ch. 3, 48; C. Supp. 1950, § 1248.67 (Williams, § 1328.30) ;
Acts 1965, ch. 285, § 1.]
67-3030. Examination of books and assessment m
absence of dealer’s return—(a) If any dealer subject to
App. 134
make and file a return required by any provision of this
chapter fails to render such return within the time re-
quired or renders a return which is false or fraudulent in
that it contains statements which differ from the true
gross sales, purchases, leases, or rentals taxable under
this chapter or otherwise fails to comply with the provi-
sions of this chapter for the taxable period for which said
return is made, the commissioner shall give such dealer
ten (10) days’ notice in writing requiring such dealer to
appear before him or his assistant with such books, ree-
ords, and papers as he may require relating to the busi-
ness of such dealer for such taxable period; and said com-
missioner may require such dealer or the agents and em-
ployees of such dealer to give testimony or to answer
interrogatories under oath administered by the commis-
sioner or his assistants respecting the sale at retail, the
use, consumption, or distribution, or storage for use or
consumption in this state or lease or rental of tangible per-
sonal property subject to tax or the failure to make report
thereof as provided in this chapter.
(b) If any dealer fails to make any such return or
refuses to permit an examination of his, the dealer’s
books, records or papers, or to appeal and answer ques-
tions within the scope of stch investigation relating to the
sale, use, consumption, distribution, storage, lease, or
rental of tangible personal property, the commissioner is
authorized to make an assessment based upon such infor-
mation as may be available to him and to issue a distress
warrant for the collection of any such taxes, interest or
penalties found to be due. Any such assessment shall be
deemed prima facie correct. {Acts 1947, ch. 3, 410: C.
Supp. 1950, § 1248.74 (Williams, § 1528.32.) |
Sendai.
- eet |
a
App. 135
67-3031. Assessment of use tax by commissioner.—
In the event the dealer has imported the tangible personal
property and he fails to produce an invoice showing the
cost price of the articles as defined in this chapter, which
are subject to tax, or the invoice does not reflect the true
or actual cost price as defined herein, then the commis-
sioner shall ascertain, in any manner feasible, the true
cost price, and assess and collect the tax with interest
plus penalties, if such have accrued on the true cost price
as assessed by him; the assessment so made shall be eon-
sidered prima facie correct, and the duty shall be on the
dealer to show the contrary. ([{Acts 1947, ch. 3, $8; C.
Supp. 1950, § 1248.69 (Williams, § 1328.30.) ]
67-3032. Value of rental fixed by commissioner.—In
the case of the lease or rental of tangible personal prop-
erty, if the consideration given or reported by the dealer
does not, in the judgment of the commissioner, represent
the true or actual consideration, then the commissioner is
authorized to fix the same and collect the tax thereon in
the same manner as above provided, with interest plus
penalties, if such have acerued. [Acts 1947, ch. 3. $8; C.
Supp. 1950, § 1248.70 (Williams, § 1328.30. }
67.3033. Delinquency—Distress warrants—Collection
of erroneous payments-—Injunction—Lien—Recording.—
The tax imposed by this chapter shall for each month be-
come delinquent on the twenty-first (21st), day of each sue-
ceeding month.
The commissioner of revenue is empowered and it
shall be his duty when any tax becomes delinquent under
this chapter to issue a distress warrant for the collection
of the tax, interest, and penalty from each delinquent tax-
App. 136
payer. Said distress warrant may be-addressed and de-
livered to the sheriff of the county whrein such delinquent
taxpayer resides, or has his principal office or place of
business, or to the sheriff of any county in which the com-
missioner has reason to believe property of such delin-
quent taxpayer may be found.
The sheriff into whose hands such warrant may come,
or his deputy, may execute same by the distraint and sale
of personal property belonging to such taxpayer and the
proceedings in respect thereto shall be the same as are pro-
vided by law for proceedings under an execution at law
from a court of record; and the executing officer shall be
entitled to the same fees, commissions, and necessary ex-
pense of removing and keeping property distrained as in
case of an execution from a court of record.
If the officer cannot find any personal property to
satisfy said distress warrant, he may levy same upon any
real estate in his county belonging to such delinquent tax-
payer; and if levied on land, said distress warrant togeth-
er with the officer’s return thereon shall be returned to
the circuit court of the county wherein the land lies and
the land shall be condemned and sold under the orders of
said circuit court in the same manner as in case of the
levy on land of an exeeution issued by a justice of the
.
peace.
Upon any claim of illegal assessment and collection
the taxpayer shall have his remedy under §§ 67-2303-67-
2312, and also shall be allowed to file claims for refund in
the manner authorized by the general law.
Distress warrants issued for the collection of the tax
imposed by this chapter may, in the discretion of the com-
App. 137
missioner of revenue, be addressed and delivered to an
employee or representative of the department of revenue
for purposes of execution, and such employee or repres-
sentative shall have the same powers and authority as a
sheriff for the purposes of levying and executing any dis-
stress warrants so issued. Such employee or representa-
tive shall be entitled to the same fees and costs as would
accrue to a sheriff for such services, which fees and costs
shall be paid to the department of revenue and deposited
in the general fund of the state treasury.
The commissioner may, in his discretion, require any
dealer who has been found in default under this chapter,
to execute and file with the department a good-faith bond,
with surety approved by the commissioner, in an amount
double the defaulted liability, which bond shall be kept on
file with the department and remain in effect such period
of time after such default as may be required by the com-
missioner.
The commissioner, with the approval of the attorney-
general, may file and maintain-injunctive proceedings
against any dealer who is delinquent or in default under
this chapter to enjoin such dealer from doing business dur-
ing such delinquency or default.
The tax herein levied shall be a lien upon all the prop-
erty of the dealer against whom the same is assessed lo-
eated in this state and shall be inferior only to state and
county ad valorem taxes and to existing liens created by
contracts, but it shall be superior to any renewals of ex-
isting contract liens; provided, however, that it shall be
the responsibility of the department of revenue to file and
have recorded a notice of such lien in the office of the
App. 188
county register of deeds in the county or counties where
such property is located, and it shall be the duty of the
county register to record notice of such lien in the same
manner as other liens are filed in his office; such tax lien
shall not be superior to any recorded lien except those
subsequently placed of record. There shall be no fees col-
lected by the county register at the time the notice of such
a lien is recorded but he shall extend credit to the depart-
ment of revenue for such recording fees as are chargeable
and submit his bill at the end of each month to the director
of the division submitting such notice of lien for recordation
in order to obtain payment. [Acts 1947, ch. 3, § 11; C.
Supp. 1950, § 1248.78 (Williams, § 1328.33); Acts 1959, ch.
942,45; impl. am. Acts 1959, ch. 9, 9 143 Acts 1971, ch. 285,
§ 2.]
67-3034. Records kept by dealers.—It shall be the
duty of every dealer required to make a report and pay
any tax under this chapter, to keep and preserve suitable
records of the sales or purchases, as the case may be, tax-
table under this chapter, and such other books of account
as may be necessary to determine the amount of tax due
hereunder, and other information as may be required by
the commissioner, and it shall be the duty of every such
dealer, moreover, to keep and preserve, for a period of
three (3) years, all invoices and other records of goods,
wares and merchandise, or other subjects of taxation un-
der this chapter; and all such books, invoices, and other
records shall be open to examinations at all reasonable
hours to the commissioner or any of his authorized agents.
{Acts 1947, ch. 3, §8; C. Supp. 1950, § 1248.68 (Williams,
§ 1328.30) ; Acts 1955, ch. 242, § 2.]
67-3035. Contents of dealer's records—Penalty for
violations.—Each dealer, as defined in this chapter, shall
App. 139
secure, maintain, and keep for a period of three (3) years
a complete record of tangible personal property received,
used, sold at retail, distributed or stored, leased or rented
within this state by said dealer together with invoices, bills
of lading, and other pertinent records and papers as may
be required by the commissioner for the reasonable admin-
istration of this chapter, and all such records shall be open
for inspection to the commissioner at all reasonable hours.
Any dealer subject to the provisions of this chapter who
shall violate these provisions shall be guilty of a misde-
meanor and upon conviction shall be punished as provided
hy the general law. [Acts 1947, ch. 3, 49; C. Supp. 1990,
© 1248.73 (Williams, § 1328.31); Acts 1955, ch. 242, § 4.]
67-3036. Records kept by wholesalers and jobbers.—
In order to aid in the administration and enforcement of
the provisions of this chapter, and collect all of the tax im-
posed by this chapter, all wholesale dealers and jobbers in
this state are required to keep a record of all sales of
tangible personal property made in this state, whether
such sales be for cash or on terms of credit. The record
required to be kept by all wholesale dealers and jobbers
shall contain and include the name and address of the pur-
chaser, the date of the purchase, the article purchased, and
the price at which the article is sold to the purchaser.
These records shall be kept for a period of three (3) years
and shall be open to the inspection of the commissioner, or
his duly authorized assistants, at all reasonable hours.
The failure of any wholesale dealer or jobber in this state
to keep such records, or the failure of any wholesale deal-
er or jobber in this state to permit an inspection of such
records by the commissioner as aforesaid, shall be deemed
a misdemeanor and upon conviction therof the wholesale
App. 140
dealer or jobber shall be subject to a fine of not less than
fifty dollars ($50.00) nor more than two hundred dollars
($200), or imprisonment in the county jail for not less
than ten (10) days nor more than thirty (30) days, or
both, for the first offense, and for the second or each sub-
sequent offense the penalty shall be double. [Acts 1947,
ch. 3, § 8; C. Supp. 1950, § 1248.71 (Williams, § 1328.30) ;
Acts 1955, th. 242, § 3.]
67-3037. Access to records of carriers.—For the pur-
pose of enforcing the collection of the tax levied by this
chapter the commissioner is specifically authorized and
empowered to examine at all reasonable hours the books,
records, and other documents of all transportation com-
panies, agencies or firms that conduct their business by
truck, rail, water, airplane, or otherwise, in order to de-
termine what dealers, as provided in this chapter, are im-
porting or otherwise shipping articles of tangible personal
property which are liable for said tax. In the event said
transportation company, agency or firm shall refuse to
permit such examination of its books, records, and other
documents by the commissioner, as aforesaid, it shall be
deemed guilty of a misdemeanor punishable by a fine of
not less than fifty dollars ($50.00) nor more than five
hundred dollars ($500); provided further, that the com-
missioner shall have the right to proceed in the chancery
court for a mandatory injunction or other appropriate
remedy to enforce his right, as granted by this section, to
an examination of the books and records of transportation
companies. [Acts 1947, ch. 3, §9; C. Supp. 1950, § 1248.72
(Williams, § 1328.31).]
67-3038. Importation permits.—In order to prevent
the illegal importation of tangible personal property which
=
App. 141
is subject to tax in this state, and to strengthen and make
more effective the manner and method of enforcing pay-
ment of the tax imposed by this chapter, the commissioner
is authorized and empowered to put into operation a sys-
tem of permits whereby any person or dealer as defined
in this chapter may import tangible personal property by
truck, automobile, or other means of transportation other
than a common carrier, without hawing said truck, auto-
mobile, or other means of transportation seized and sub-
jected to legal proceedings for its forfeiture. Such sys-
tem of permits shall require the person or dealer who de-
sires to import tangible personal property into this state
which property is subject to tax imposed by this chapter,
to apply to the commissioner or his assistant for a permit
stating the kind of vehicle to be used, the name of the driv-
er, the license number of the venicle, the kind or character
of tangible personal property to be imported, the date,
the name and address of the consigmee and such other in-
formation as the commissioner may deem proper or neces-
sary to prevent the illegal transportation of tangible per-
sonal property into this state. Such permit shall be free
of cost to the applicant and may be obtained from the de-
partment of finance and taxation or any of its branch of-
fices. [Acts 1947, ch. 3, §12; C. Supp. 1950, § 1248.79
(Williams, § 1328.34). ]
67-3039. Importation without permit prohibited.—
The importation into this state of tamgible personal prop-
erty which is subject to tax, by truck., automobile or other
means of transportation other tham a common carrier,
without having first obtained a permit as described herein-
before (if the tax imposed by this chapter on the said
tangible personal property has not been paid), shall be
App. 142
construed as an attempt to evade payment of the said tax
and the same is prohibited and the said truck, automobile
or means of transportation other than a common carrier,
and said taxable property may be seized by the commis-
sioner in order to secure the same as evidence in a trial
and the same shall be subject to forfeiture and sale in the
manner provided for in this chapter. [Acts 1947, ch. 3,
$12; C. Supp. 1950, § 1248.80 (Williams, § 1328.34). ]
67-3040. Confiscation of vehicle used in illegal im-
portation—Any truck, automobile, or other means of
transportation other than a common carrier which is used
to import into this state tangible personal property which
is subject to tax under this chapter, together with the con-
tents thereof, is declared to be contraband and subject to
confiscation unless a permit as hereinabove described was
first obtained. The commissioner shall confiscate any such
truck, automobile, or other means of transportation other
than a common carrier together with its contents when-
ever the same is found to be importing without permit
tangible personal property, the sale or use of which is tax-
able under this chapter.
Upon seizure for confiscation the commissioner or his
representatives shall appraise the value of the vehicle and
its contents according to his best judgment and shall de-
liver to the person, if any, found in possession of such
property, a receipt showing the fact of seizure, from whom
seized, the place of seizure, a description of the vehicle and
contents seized. A copy of said receipt shall be filed in the
office of the department of finance and taxation and shall
be open to public inspection.
The commissioner or any representative of the depart-
ment of finance and taxation shall within five (5) days ad-
Reade Tm heal
App. 148
vertise the said vehicle and its contents or other property
so seized for sale to the highest bidder by one (1) proper
notice in a newspaper published in the county where the
property is to be sold, if the county has such newspaper ;
if no newspaper, then by notice on the courthouse door at
least five (5) days prior to the date of sale, containing a
description of the vehicle and property to be sold.
Any person claiming any property so seized as contra-
band goods may, at any time before the sale, file with the
commissioner at Nashville a claim in writing requesting a
hearing and stating his interest in the articles seized. The
commissioner shall set a date for hearing within ten (10)
days from the day the claim is filed. The commissioner is
empowered to subpoena witnesses and compel their attend-
ance at-the hearing authorized under this chapter. All
parties to the proceeding including the person claiming
such property shall have the right to have subpoenas is-
sued by the commissioner to compel the attendance of all
witnesses deemed by such parties to be necessary for a
full and complete hearing. All witnesses shall be entitled
to the witness fees and mileage provided by law for legal
witnesses, which fees and mileage shall be paid as a part
of the cost of the proceeding.
In the event the ruling of the commissioner is favor-
able to the claimant the commissioner shall deliver to the
claimant the vehicle or property so seized. If the ruling
of the commissioner is adverse to the claimant the com-
missioner shall proceed to sell such contraband goods in
accordance with the foregoing provisions of this chapter.
The expense of storage, transportation, ete., shall be ad-
judged as a part of the cost of the proceeding in such man-
ner as-the commissioner shall fix pending and proceed-
_—
App. 144
ing to recover a vehicle or other property seized under this
chapter. The commissioner may order delivery thereof to
any claimant who shall establish his right to immediate
possession thereof and who shall execute with one (1) or
more sureties, approved by the commissioner, and deliver
to the commissioner a bond in favor of the state of Ten-
nessee for the payment of a sum double the appraised
value thereof as of the time of the hearing; and contain-
ing the further provision that if the vehicle or other
property is not returned at the time of the hearing the
bond shall stand in lieu of and be forfeited in the same
manner as such vehicle or other property.
The action of the commissioner may be reviewed by a
petition for common law writ of certiorari addressed to the
circuit court of Davidson county, which petition shall be
filed within ten (10) days from the date the order of the
commissioner is made.
Immediately upon the granting of the writ of certiorari
the commissioner shall cause to be made, certified, and
forwarded to said court a complete transcript of the pro-
ceeding in said cause which shall contain all the proofs sub-
mitted before the commissioner. All defendants named in
the petition desiring to make defense shall answer or other-
wise plead to said petition within ten (10) days from the
date of the filing of said transcript unless the time be ex-
tended by the court.
Said decision of the commisisoner shall be reviewed by
the circuit court solely upon the pleadings, and a transcript
of the evidence before the commissioner and neither party
shall be entitied to introduce any additional evidence in
the circuit court. The confiscated vehicle or goods shall
App. 145
not be sold pending such review but shall be stored by the
commissioner until the final disposition of said case.
Within the discretion of the commissioner the claimant
may be awarded possession of the confiscated goods pend-
ing the decision of the circuit court under the petition for
certiorari, provided the claimant shall be required to exe-
cute a bond payable to the state of Tennessee in an amount
double the value of the property seized, the sureties to be
approved by the commissioner. The condition of the bond
shall be that the obligors shall pay to the state the full
value of the vehicle or goods seized unless upon certiorari
the decision of the commissioner shall be reversed and the
property awarded to the claimant.
If no claim is interposed, such vehicle or other goods
shall be forfeited without further proceedings and the same
sold as hereinabove provided. The above procedure is the
sole remedy of any claimant and no court shall have juris-
diction to interfere therewith by replevin, injunction,
supersedeas, or in any other manner.
Any funds derived from the sale of confiscated ve-
hicles or other goods shall be distributed or allocated in
the same manner as other funds derived from this chapter.
[Acts 1947, ch. 3 § 12; C. Supp. 1950, § 1248.81 (Williams,
§ 1328.34).]
67-3041. Registration of sellers—Recall of certificate
—Certiorari.—Every person desiring to engage in or con-
duct business as a dealer in this state shall file with the
commissioner an application for a ‘‘certificate of registra-
tion’’ for each place of business. Every application for a
certificate of registration shall be made upon a form pre-
scribed by the commissioner and shall set forth the name
App. 146
under which the applicant transacts or intends to transact
business, the location of his place or places of business, and
such other information as the commissioner may require.
The application shall be signed by the owner if a natural
person; in the case of an association or partnership, by a
member or partner; in the case of a corporation, by an
executive officer or some person specifically authorized
by the corporation to sign the application, to which shall
be attached the written evidence of his authority.
When the required application has been made the com-
missioner shall issue to each applicant a separate certifi-
eate of registration for each place of business within the
state; provided, however, no certificate of registration
shall be issued to any person who has been engaged in
business in this state, and who has not made a complete
return and payment as provided for in § 67-3025, or who is
delinquent in the payment of any sales or use tax due the
state. A certificate of registration is not assignable and
is valid only for the person in whose name it is issued and
for the transaction of business at the place designated
therein. It shall at all times be conspicuously displayed
at the place for which issued.
Provided, further, that the commissioner may refuse
to issue any such registration certificate for any place
of business where there is reasonable cause to believe there
exists a continuity of business enterprise or resumption
of a discontinued one involving a transfer of a business
and/or a stock of goods in the same or a different loca-
tion between members of a family, between relatives by
blood or marriage, between employer and employee, or
former employee, from a partnership or proprietorship to
a corporation, or vice versa, where all or some of the per-
diol
wt alae a, Dake it aw
eee ees
App. 147
sons involved are the same, or that there otherwise exists
a conspiracy to defeat the enforcement of this chapter, in
the event the transferor is delinquent in the payment of
the payment of the tax herein provided. Such refusal may
be continued until such time as the transferor shall have
complied with the requirements of § 67-3025 hereof and
with all pertinent provisions of this chapter and rules and
regulations of the commissioner promulgated hereunder
or until full and complete explanatory information re-
quested by the commissioner has been furnished. Any per-
son aggrieved by such refusal or by the denial of a certi-
ficate for reasons stated in the preceding paragraph may,
within ten (10) days after written notice thereof has been
mailed or delivered to him, apply to the commissioner for
a hearing setting forth in such application a full statement
of the grounds on which he intends to rely; provided, that
he has filed with the commissioner, at the time of making
such application, a surety company bond running to the
state in such sum as the commissioner may determine to
be appropriate under the circumstances, conditioned upon
the payment of all taxes then due and-to become due dur-
ing the pendency of such appeal to the commissioner and
during any further judicial appeal. When such bond is
filed the commissioner shall immediately issue such regis-
tration certificate. After such hearing the commissioner
shall give written notice of his decision. In the event of
an adverse determination by the commissioner under the
provisions of this or the preceding paragraph an appeal
therefrom may be made to any court having jurisdiction
within ten (10) days after such written notice has been
mailed or delivered to him.
App. 148
When any person to whom a ‘‘certificate of registra-
tion’? has been issued under this chapter leases certain
departments in his place of business to other persons for
the purpose of making sales at retail of tangible personal
property or taxable services to consumers and keeps the
records and makes and accounts for the collection of the
leased department’s sales, he may include the sales made
by such leased departments in his own tax return and re-
mit the tax due thereon. Provided, however, that in such
instances a lessor shall be deemed to be an agent of the
lessee and the lessee shall not be relieved of any of his
liabilities under this chapter if the lessor defaults therein.
Whenever any person fails to comply with any pro-
vision of this chapter or any rule or regulation of the com-
missioner relating thereto, the commissioner, upon hearing,
after giving the person ten (10) days’ notice in writing,
specifying the time and place of a hearing and requiring
him to show cause why his certificate of registration should
not be revoked, may revoke or suspend any one (1) or
more of the certificates of registration held by the person.
The notice may be served personally or by certified mail
directed to the last known address of the person. The
commissioner may designate a hearing officer from the
department of revenue to conduct the hearings provided
for in this section, who shall make findings of fact, con-
clusions of law, and proposed orders based thereon. If the
commissioner concurs, he shall issue the order; or he may,
upon review of the record, make such findings, conclusions,
and issue such orders as, in his discretion, the record
justifies.
Any person who engages in business as a dealer in this
state without a certificate of registration after a certificate
eee eon
ee er eer ees
App. 149
of registration has been suspended or revoked, and each
officer of any corporation which so engages in business
shall be guilty of a misdemeanor and punishable as pro-
vided by the general law.
It shall be a misdemeanor, and punishable as such, for
any person having a certificate of registration to use the
same for the purpose of purchasing tangible personal prop-
erty subject to the tax herein levied except for resale, un-
less authorized so to do by other provisions of this chapter
and the rules and regulations adopted pursuant thereto.
Provided further, that it shall be a misdemeanor for
any person who has a certificate of registration to use or
consume any tangible personal property purchased or
otherwise acquired under said certificate of registration
and subject to the privilege taxes herein levied, without
paying said privilege taxes.
Provided further, that any person violating these pro-
visions shall forfeit the certificate of registration which
shall be revoked in accordance with the provisions of this
chapter, and such person shall not be entitled to register
under this chapter for a period of twelve (12) months after
said revocation shall have become final.
Any person who engages in the business of furnishing
any of the things or services taxable under this chapter
shall likewise apply for and obtain a certificate of regis-
tration as provided by this section,
The commissioner may, in his discretion, on the basis
of adequate past experience, recall any certificate of regis-
tration where, in his judgment, the cost of administering
the account is disproportionately high as compared to the
App. 150
amount of tax which a taxpayer is remitting or will remit.
Such reeall shall be reviewable by a petition for a common
law writ of certiorari in the chancery court of Davidson
County, which petition shall be filed within ten (10) days
from the date of such recall.
It shall be a misdemeanor for any dealer as herein de-
fined to engage in business without a proper and valid
certificate of registration. [Acts 1947,ch. 3, § 16; C. Supp.
1950, § 1248.88 (Williams, § 1328.38); Acts 1951, ch. 168,
$1; 1955, ch. 51, § 14; 1955, ch. 242, § 9; 1961, ch. 136, § 1;
1963, ch. 92, $1; 1969, ch. 109, § 1; 1971, ch. 55, § 1; 1971,
ch. 92, § 1; 1971, ch. 186, § 1.]
67-3042. Penalties for violations by dealers.—(a) Any
dealer subject to the provisions of this chapter failing or
refusing to furnish any return herein required to be made
or failing or refusing to furnish a supplemental return or
other data required by the commissioner, shall be guilty
of a misdemeanor and upon conviction shall be punished
by a fine not exceeding two hundred dollars ($200) or be
imprisoned in the county jail not exceeding sixty (60) days,
or shall be punished by both fine and imprisonment in the
discretion of the court for any such offense.
(b) Any dealer required to make, render, sign, or
verify any return as aforesaid who makes a false or fraud-
ulent return with intent to evade the tax hereby levied
shall be guilty of a misdemeanor and upon conviction shall
be fined not less than one hundred dollars ($100) nor more
than three hundred dollars ($300) or be imprisoned in the
county jail not less than thirty (30) days nor more than
three (3) months, or shall be punished by both fine and
imprisonment in the discretion of the court.
App. 151
(c) Any dealer who shall violate any other provision
of this chapter, punishment for which is not otherwise
herein provided, shall be guilty of a misdemeanor and
upon conviction thereof shall be fined in the sum of not
less than ten dollars ($10.00), nor more than one hundred
dollars ($100) or imprisoned in the county jail for a
period of not less than ten (10) days nor more than
thirty (30) days or both fine and imprisonment at the dis-
cretion of the court. For a second or subsequent offense
the penalty shall be double. [Acts 1947, ch. 3, $10; C.
Supp. 1950, § 1248.77 (Williams, § 1828.32).]
67-3043. Forms furnished by commissioner.—The
commissioner shall design, prepare, print and furnish to
all dealers, or make available to said dealers, all neces-
sary forms for filing returns and instructions to insure
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 said
tax at the time and in the manner herein provided. [Acts
1947, ch. 3, § 13; C. Supp. 1950, § 1248.83 (Williams, § 1328.-
35).]
67-3044. Administration of oaths.—The commissioner
and his assistants are authorized and empowered to ad-
minister the oath for the purpose of enforcing and ad-
ministering the provisions of this chapter. [Acts 1947,
ch. 3, § 13; C. Supp. 1950, § 1248.84 (Williams, § 1328.35).]
67-3045. Rules and requlations—The commissioner
shall have 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 the provisions of this chap-
App. 152
ter and the collection of revenues hereunder. [Acts 1947,
ch. 3, § 13; C. Supp. 1950, § 1248.85 (Williams, § 1328.35).]
67-3046. Administrative costs—Rules concerning ap-
plication of rate-——(a) The cost of preparing and distrib-
uting the reports, forms, and paraphernalia for the col-
lection of said tax and the inspection and enforcement
duties required herein shall be borne by the revenues pro-
duced by this chapter, provisions for which are herein-
after made.
(b) The commissioner shall administer and enforce
the assessment and collection of the taxes and penalties
imposed by this chapter. He is authorized to make and
publish such rules and regulations not inconsistent with
this chapter as he may deem necessary in enforcing its
provisions in order that there shall not be collected on
the average more than the rate levied herein. The com-
missioner is authorized to and he shall provide by rule
and regulation a method for accomplishing this end, and
he shall prepare instructions to dealers by setting out
to them suitable brackets of prices for applying the tax
or any other method that may be necessary for the purpose
of the enforcement of this chapter and the collection of
the tax imposed thereby. The use of tokens is forbidden
and prohibited.
The commissioner is granted the power and authority
to employ all necessary personnel and to purchase such
supplies and equipment as may be necessary and ineur
any other necessary expenses as are proper for the en-
forcement and administration of this chapter. [Acts 1947,
ch. 3, § 14; C. Supp. 1950, § 1248.86 (Williams, § 1328.36).]
App. 158
67-3047. Deposit and allocation of receipts.—The com-
missioner shall deposit promptly to the credit of the state
treasurer in state depositories all moneys received by him
under the provisions of this chapter, and all such moneys
shall be earmarked and allocated as follows:
Three ninths (3/9) of such moneys shall be earmarked
and allocated specifically and exclusively to the general
fund; two ninths (2/9) of such moneys shall be earmarked
and allocated specifically and exclusively to educational
purposes; and four ninths (4/9) of such moneys shall be
earmarked and allocated specifically and exclusively to
the foilowing objects and purposes:
(1) Twelve and one-half percent (1214%) 1s appro-
priated to the several incorporated municipalities within
the state of Tennessee to be allocated and distributed to
them monthly by the commissioner of finance and admin-
istration in the proportion as the population of each mu-
nicipality bears to the aggregate population of all mu-
nicipalities within the state according to the latest federal
census and other censuses authorized by law. Municipali-
ties incorporated subsequent to the last decennial federal
census shall, until the next decennial federal census, be
eligible for ai. allotment, commencing on July 1, following
incorporation, election and installation of officials, on
the population basis determined under regulations of the
state planning office and certified by that officer to the
commissioner of finance and administration, provided an
accurate census of population has been certified to the
state planning office by the municipality. Municipalities
now participating in allocation shall continue to do so on
the basis of their population determined according to law.
App. 154
A municipality having a population of twenty-five
hundred (2,500) or more persons, according to the federal
census of 1970 or any subsequent federal census, in which
at least forty pereent (40°) of the assessed valuation (as
shown by the tax assessment rolls or books of the munici-
pality) of the real estate in the municipality consists of
hotels, motels, tourist courts accommodation, tourist shops
and restaurants, shall be defined as a ‘‘premiere type
tourist resort’? for purposes of this chapter. As an alter-
native to and in lieu of the allocation preseribed in the
first paragraph of subsection (1), a premiere type tourist
resort may elect to receive twelve and one-half percent
(12.5°) of four ninths (4/9) of the tax actually collected
and remitted by dealers within the boundaries of such
resort. Any distribution made to a premiere type tourist
resort pursuant to such election shall be earmarked and
paid from the general fund. If, however, any such pay-
ment is made to a premiere type tourist resort pursuant
to the election, the amount which would have been received
by such resort had the resort not exercised the election
shall be earmarked and allocated to the general fund.
Also, any municipality shall have the right to take
not more than two (2) special censuses as its own expense
at any time during the interim between the regular de-
cennial federal census. Such right shall include the eur-
rent decennium. Any such census shall be taken by the
federal bureau of the census, or in a manner directed by
and satisfactory to the Tennessee state planning office.
The population of the municipality shail be revised in
accordance with the special census for purposes of dis-
tribution of such funds, effective on the first day of the
-—=—
App. lo:
next July, beginning July 1, 1958, following the certifica-
tion of the census results by the federal bureau of the
census or the state planning office to the commissioner
of finance and administration: the aggregate population
shall likewise be adjusted in accordance with any such
special census, effective the same date as aforesaid.
Provided, that any other such special census of the
entire municipality taken in the same manner provided
herein, under any other law, shall be used for the distribu-
tion of such funds, and in that case, no additional special
census shall be taken under the provisions of this section.
Before distributing moneys to incorporated munici-
palities from the sales tax, as provided for herein, the
commissioner of finance and administration shall make a
deducticn therefrom monthly of the sum of forty-two
thousand four hundred and seventeen dollars ($42,417)
per month of the twelve and one-half percent (1214%) of
sales tax collections allocated to incorporated municipal-
ities, which sum together with an appropriation per an-
num from the general fund of the state shall be appor-
tioned and transmitted to the University of Tennessee for
use by the university in establishing and operating a mu-
nicipal technical advisory service in its institute for
publie service, and shall be used for studies and research
in municipal government, publications, educational con-
ferences and attendance there at and in furnishing tech-
nical, consultative and field services to municipalities in
problems relating to fiscal administration, accounting, tax
assessment and collection, law enforcement, improvements
and public works, and in any and all matters relating to
municipal government. This program shall be carried
on in cooperation with and with the advice of cities and
App. 156
towns in the state acting through the Tennessee municipal
league and its executive committee, which is recognized
as their official agency or instrumentality.
(2) Eighty pereent (80°) shall be used for eduea-
tion and shall be subject to appropriation, allocation, and
allotment for that purpose,
(3) Four pereent (4%) is allocated to the general
fund.
(4) One pereent (1%), or so much thereof as may
be required, is appropriated to the department of revenue
in addition to its regular appropriation to be expended by
it in the administration and enforcement of this chapter ;
and
(5) Two and one-half pereent (214%) is appropri-
ated to the sinking fund account to be used by the state
funding board for the payment of interest and principal
becoming due on state bonds issued by the state of Ten-
nessee.
In event the one and one half percent (114%) hereto-
fore appropriated to the sinking fund board should prove
to be insufficient to pay the principal and interest on state
bonds heretofore issued to which five percent (5%) of the
proceeds of the Tennessee retailers’ sales tax up to twenty
million dollars ($20,000,000) and seven and one-half per-
cent (714%) of proceeds in excess of twenty million dol-
lars ($20,000,000) have been pledged, then and in that
event such additional amount of the gross proceeds of the
sales tax as may be necessary to pay in full the principal
and interest on such bonds is hereby pledged for the pay-
ment of the principal and interest on such bonds, and the
App. 157
proceeds of the tax shall be used for that purpose before
any distribution is made for any of the other purposes
hereinabove specified. [Acts 1947, ch. 3, § 15; 1947, ch. 149,
§ 1; 1949, ch. 17, § 1; 1949, ch. 248, §1; 1949, ch. 261, $1;
C. Supp., 1950, § 1248.87 (Williams, §§ 1328.37, 1328.37a) ;
Acts 1951, ch. 241, § 1; 1953, ch. 50, § 1; 1953, ch. 195, $1;
modified; 1955, ch. 51, § 138; 1955, ch. 190, § 1; 1957, ch.
130, $1; 1957, ch. 136, § 1; 1957, ch. 363, $1; impl. am.
Acts 1959, ch. 9, §§ 3, 14; Aets 1959, ch. 67,§ 1; 1959, ch.
276, § 1; impl. am. Acts 1961, ch. 97, § 3; Acts 1961, ch. 187,
§ 1; 1963, ch. 276, § 1; 1965, ch. 281, § 1; 1967, ch. 315, §1;
1969, ch. 172, § 1; 1970 (Adj. S.), ch. 480, § 1; 1971, ch. 117,
§ 5; mpl. am. 1972 (Adj. S.), eh. 542, $4 1-8, 15; 1972 (Adj.
S.), ch. 589, § 1; 1973, ch. 232, $1; 1974 (Adj. S.), ch. 494,
§1; 1974 (Adj. S.), ch. 516, § 2; 1974 (Adj. S.), ch. 593,
§ 1; 1975, ch. 197, $1; 1976 (Adj. S.), ch. 466, § 4; 1977,
ch. 6, §§ 1, 2; 1977, ch. 41, § 1; 1979, ch. 114, $1; 1979, ch.
364, § 1.]
67-3048. Implementation of chapter—The commis-
sioner with the appreval 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 which may be required for this
purpose, in order to put the chapter fully and completely
into effect.
All necessary expenses of employees to administer this
chapter shall be paid in the manner provided by law ap-
plicable to expenses of other state officials and employees.
The commissioner is authorized to require the assis-
tance of any official of the state or of any political sub-
division thereof in the administration of this chapter and
App. 158
it shall be 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
chapters 1 through 6 of Title 59 or for a certificate of reg-
istration for a vessel as provided for in chapter 22 of Title
70 unless the applicant shall present 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 of
revenue to file an application for such certificate of title or
registration without the payment of the sales or use tax.
It shall also be 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 ocea-
sional and isolated sale which is taxable under Section
67-3002 (1) 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 said official re-
quires evidence of payment of the sales or use tax on the
fair market value of the vehicle as the same is determined
by him by reference to the most recent issue of an authori-
tative automotive pricing manual, such as the N.A.D.A.
Official Used Car Guide, Southeastern Edition. [Acts
1947, ch. 38, § 17; mod. C. Supp. 1950, § 1248.89 (Williams,
y 1328.39) ; 1971, ch. 117, § 6; 1976, ch. 789, § 1.]
App. loo
Seclion 2. The ‘£19638 Local Option Rerenu Act -
(86 67-83049-—67-8056 )
SECTION. SECTION.
67-3049. Local option revenue 67-3052. Distribution of
act-Title. proceeds.
67-3050. Loca! governments 67-3053. | lection on
authorized to levy resolution.
privilege tax. 67-3054. Collection and
67-3051. Counties to have administration.
priority over cities 67-3055. Repeal of local tax.
Rate deter- 67-3056. Relationship to
mination. other taxes.
67-3049. Local option revenue act—Title. Sections
67-3049-—67-2056 shall be known and may be cited as the
61963 Loeal Option Revenue Act.”’ [Acts 1963, ch. 329,
§1.]
67-3050. Local governments authorized to levy prwvi-
ledge taxr—Any county by resolution of its county legisla-
tive body or any incorporated city or town by ordinance of
its governing body is authorized to levy a tax on the same
privileges subject to the ‘‘Retailers’ Sales Tax Act’’ un-
der this chapter as the same may be amended, which are
exercised within such county, city or town, to be les ied and
collected in the same manner and on all such privileges but
not to exceed one half (14) of the rates levied therein until
June 30, 1981 and thereafter not to exceed three fourths
(34) of the rates levied therein, provided that the tax so
levied shall not exceed five dollars ($5.00) on the sale or
use of any single article of personal property whenever
the rate of the tax does not exceed one percent (1°7) of the
rates levied therein, nor more than seven and one halt
dollars ($7.50) whenever the rate of the tax exceeds one
percent (1%) of the rates levied therein; provided, how-
ever, that no county or incorporated city or town is author-
ized to levy any tax on the sale, purchase, use, consump-
tion or distribution of electric power or energy, or of na-
tural or artificial gas, or coal and fuel oil; provided fur-
ther that the operation of such resolution or ordinance
shall be subject to approval of the voters as required in
67-3053 and to the other provisions of §§ 67-3049—67-3056.
Notwithstanding other provisions of this chapter, with
respect to industrial and farm machinery as defined in
§ 67-3002, subparagraphs (n) and (p), and with respect
to water sold to or used by manufacturers at the state tax
rate of one percent (1%) as authorized in § 67-3003(g), the
local tax thereon shall be imposed at the rate of one third
of one percent (.3314%) whenever the rate of the local tax
does not exceed one percent (1%) and at the rate of one
half of one percent (.5%) whenever the rate of the local tax
exceeds one percent (1%). The maximum local tax on the
sale or use of any single article of industrial or farm ma-
chinery shall be as provided hereinabove.
Nothing herein contained shall be deemed to permit
an increase in the privilege tax hereby authorized, with-
out the ratification thereof in the manner provided in
§ 67-3053, regardless of the nature of any previous call
and regardless of future action of the general assembly
regarding the levy of the tax authorized by the Retailers’
Sales Tax Act under chapter 30 of title 67. [Acts 1963, ch.
329, §2; 1968 (Adj. S.), ch. 488, 441, 4; 1971, ch. 117,
$7; 1971, ch. 148, §¢ 1; 1972 (Adj. S.), ch. 653, § 2; 1973, ch.
239, § 2; 1973, ch. 340, §1; 1974 (Adj. S.), ch. 675, $2;
1979, ch. 316, § 2; 1976 (Adj. S), ch. 466, 65; 1977, ch. 43,
§ 1; 1977, ch. 178, § 2; 1978 (Adj. S.), ch. 592, § 2; impl. am.
App. 161
Acts 1978 (Adj. S.), ch. 934, §$7, 36; 1979, ch. 308, $3;
1980, ch. 886, § 2.]
67-3051. Counties to have priority over ctties—Rate
determination.—The levy of the tax by a county shall pre-
clude, to the extent of the county tax, any city or town
within such county from levying the tax, but a city or town
shall at any time have the right to levy the tax at a rate
equal to the difference between the county tax and the
maximum rate authorized herein. For Cities and Towns
having territory in more than one County, the term ‘cities
and towns’ is defined as that part of their territory in
which they are not precluded by a County tax.
If an ordinance levying the tax herein authorized is
adopted by a city or town prior to adoption of the tax by
the county in which the city or town is located, the effee-
tiveness of the ordinance shall be suspended for a period
of forty (40) days beyond the date on which it would other-
wise be effective under the charter of the city or town. If
during this forty-day period, the quarterly county court
adopts a resolution to levy the tax at least equal to the
rate provided in such ordinance, the effectiveness of the
ordinance shall be further suspended until it is determined
whether the county tax is to be operative, as provided, in
, 67-3053. If the county tax becomes operative by approval
of the voters as provided in § 67-3053, the ordinance shall
be null and void, but if the county tax does not become
operative the ordinance shall become effective on the same
date that the county tax is determined to be non-operative,
and the election required by § 67-8053 shall be held. After
initial adoption of the tax by a county or a city or town
therein, the tax rate may be increased by a city, town or
App. 162
county under the same procedure. If the tax levied by a
quarterly county court is finally determined to be non-
operative, such action shall not preclude subsequent ae-
tion by the county to adopt the tax at a rate at least equal
to the city or town tax rate, in which event the city or town
tax shall cease to be effective; provided, however, that the
city or town shall receive from the county tax the same
amounts as would have been received from the city or
town tax until the end of the current fiscal year of the
city or town. [Acts 1963, eh. 329, 63; 1968, eh. 488, § 2.]
67-3052. Distribution of proceeds.—The tax levied by
a county under 6§ 67-3049—67-3056 shall be distributed as
follows :
(1) One-half (45) of the proceeds shall be expended
and distributed in the same manner as the county prop-
erty tax for school purposes is expended and distributed.
(2) The other half (44) shall be distributed as fol-
lows:
(a) Collections for privileges exercised in unineor-
porated areas, to such fund or funds of the county as the
governing body of the county shall direet.
(b) Collections for privileges exercised in incorpo-
rated cities and towns, to the city or town in which the
privilege is exercised,
(c) Provided, however, that a county and city or
town may by contract provide for other distribution of
the half (14) not allocated to school purposes. [Acts 1963,
ch, 829, § 4; 1967, ch. 90, § 1.)
67-3053. Election on resolution—(a) Any ordinance
or resolution of a county or of a city or town levying the
App. 163
tax under authority of ‘ 67-2049 67-2056 shall not be
come operative until approved in an election herein pro
vided in the county, or the city or town, as the case may
be. The county election commission shall hold an election
thereon, providing options to vote FOR” or AG AINST”
the ordinance or resolution, within sixty (60) days after
the receipt of a certified copy of such ordinance or reso
lution, and a majority vote of those voting in the election
chall determine whether the ordinance or resolution is to
he operative. If the majority vote is for the ordinance or
rsolution, it shall be deemed to he operative on the date
that the county election commission makes its official ean
vass of the election returns. Provided, however, that no
tax shall be collected under any such ordinance or resolu
tion until the first day of a month occurring at least thirty
(30) days after the operative date.
Notwithstanding any provisions of this chapter to the
contrary, a county court oF the governing body of any
incorporated city or town may authorize, by resolution or
ordinance, the state to collect a local sales tax previously
authorized and approved pursuant to the provisions of
this chapter. Such authorization by any county court or
by the governing body of any incorporated city or town
shall be fully effective without necessity of a referendum
on such resolution; provided, however that no tax shal
he collected under any such authorization until the first
day of a month occurring at least thirty (50) days after
receipt of a certified copy of such resolution or ordinance
by the commissioner of revenue.
(b) If a quarterly county court adopts a r solution
to levy the tax at the same rate that is operative in a city
App. 164
or town in the county, the election under this section to
determine whether the county tax is te be operative shall
be open only to the voters residing outside of such city or
town. If the county tax is at a higher rate than the rate
of the city or town tax, the election shall be also open to
the voters of the city or town. Provided further, that
should any county or city or town hold an election here-
under, and the ordinance or resolution is rejected, no
other election thereon shall be held by such county, city
or town for a period of six (6) months from the date of
the holding of such prior election, except that in those
counties of the state having a population of not more than
seven hundred fifty thousand (790,000) nor less than seven
hundred thousand (700,000) and not more than two hwn-
dred seventy-eight thousand (278,000) and not less than
two hundred fifty thousand (250,000) according to the
federal census of 1970 or any subsequent federal census,
in case of rejection, the limitation period on subsequent
elections shall be one (1) year from the date of the holding
of such prior election.
(ce) A resolution or ordinance levying the tax au-
thorized may be initiated by petition of the voters in the
following manner. The petition shall be addressed to the
quarterly county court or the roverning bodys of the city
or town requesting that a resolution or ordinance be
adopted levying the tax and shal! state the rate of the
tax, whether the tax is to be collected by the county, city
or town, or by the department of revenue of the state, and
shall specify the officer against whom suit for the recovery
of any tax illegally assessed or colleeted shall be brought.
The petition shall be signed by at least a number of reg
istered voters in the taxing jurisdiction equal to ten per
ee
App. 165
eent (10%) of the total number of registered voters in
the taxing jurisdiction on the date the petition is filed.
Provided, a petition requesting a resolution of the quar-
terly county court may not be signed by a registered voter
in a city or town where a tax herein authorized is opera-
tive equal to that levied by the resolution, and the reg-
istered voters therein shail not be considered in arriving
at the required percentage. A petition requesting a reso-
lution shall be filed with the county court clerk, a petition
requesting an ordinance with the chief clerical officer of
the city or town, and a photographie copy of the petition
shal! be filed at the same time with the county commis-
sioners of elections who shall be the judges of the suffice!
ency of the petition. If within thirty (30) days from the
filing of a petition a resolution or ordinance is not adopt
ed as requested and a certified copy filed with the com-
missioners of elections, the petition shall constitute a reso-
lution or ordinance, and the commissioners of elections
shall hold an election thereon as in paragraph (a) above.
[Acts 1963, ch. 329, § 4; 1967, ch. 113, § 1; 1968 (Adj. 8.),
ch. 488, 43; 1971, eh. 83, § 1; 1972 (Adj. S.), ch. 455, § 1.]
67-3054. Collection and admimistration.—In collecting
and administering the tax levied under the authority of
67-3049—67-3056 counties, cities and towns shall have
all the powers which the commissioner of revenue has in
collecting and administering the state sales tax. Rules and
regulations promulgated by the commissioner of revenue
may be adopted by reference, and penalties and inferest
for delinquencies imposed equal to the rates provided in
67-3026. When so provided in the resolution or ordinance
of adoption, the department of revenue of the state of
Tennessee shal) collect such tax concurrently with the col-
App. 166
lection of the state tax in the same manner as the state tax
is collected, provided that said department has determined
that such collection of said tax is feasible, and has prom-
ulgated rules and regulations governing such collection.
The department shall remit the proceeds of the tax to the
county, city or town levying the tax, less a reasonable
amount of percentage as determined by the department to
eover the expenses of administration and collection. The
county, city or town shall furnish a certified copy of the
adopting resolution or ordinance to the department of
revenue in accordance with regulations preseribed by the
department. Upon any claim of illegal assessment and
collection, the taxpayer shall have the remedy provided in
§ 67-3033, it being the intention of the legislature that the
provisions of law which apply to the recovery of state
taxes illegally assessed and collected he conformed to
apply to the recovery of taxes illegally assessed and col-
lected under the authority of §§ 67-8049 - 67-8056. Notice of
any tax paid under protest shall be given to the county court
or the governing body of the city or town. The resolution
or ordinance levying the tax shall designate the county or
municipal officer against whom suit may be brought for
recovery in the event the tax is collected by the department
of revenue. [Acts 1963, ch. 329, < 6.]
67-3055. Repeal of local tax—Any ordinance or res-
olution of a county, city or town adopted in aecordance
with §§ 67-8049—67-3056 may be repealed in the- same
manner as provided herein for its adoption; provided, that
any election for the repeal of a county tax shall be open
to the voters of the entire county. [Acts 1963, eh. 329, § 7.]
ee
App. 167
67-3056. Relationship to other taxres—The tax au-
thorized by §& 67-8049—67-3056 is and shall be in addi-
tion to all other taxes which counties, cities and towns are
now authorized to levy, whether levied in the form of ex-
cise, license, or privilege taxes, and shall be in addition
to all other fees and taxes now authorized to be levied.
[Acts 1963, ch. 329, § 8.]
Former
App. 168
TENNESSEE SALES & USE TAX
LAWS—1983 REPLACEMENT
Sections
67-2621
67-2622
67-2623
67-2624
67-2625
67-2626
67-2627
67-2628
67-2629
67-2630
67-2631
67-2632
67-2633
67-2634
67-2635 (1st para.)
(2nd para.)
67-2701
67-2702
67-2703
67-2704
67-2705
67-2706
67-2707, 67-2708
67-2709—67-2713
67-2714—67 2722
67-2723
67-2724
67-2725
67-2726
67-2727
67-2728
67-2729
67-2730
67-2731
67-2732
67-4-806,
_ Replacements
67-2-121
67-2-114
67-2-115
67-2-101
67-2-115
67-2-116
67-2-120
67-2-115
67-2-120
67-2-108
67-2-117
67-2-118
67-2-119
67-2-113
67-2-121
67-2-104
67-4-801
67-4-807
67-4-804
67-4-805
67-4-802
67-4-808
67-4-809
67-4-810
67-4-811
67-4-812
67-4-814
67-4-815
67-4-816
67-4-803
67-4-817, .
67-4-820
67-4-819
67-4-818
Obsolete
Obsolete
PARALLEL REFERENCE TABLE
1983
Former 1983
Sections Replacements
67-2733 67-4-813
67-2801—67-2814 R ‘63, ch.
194, § 6; 1976
(Adj. S.), ch.
537, § 56; 1983,
ch. 189, § 1
67-2901 67-4-901
67-2902 67-4-903
67-2903 67-4-904
67-2904 67-4-902
67-2905—67-2907 67-4-905
67-2908 67-4-906
67-2909 67-4-907
67-2910 67-4-908
67-2911 67-4-909
67-2912—67-2917 67-4-910
67-2918 67-4-911
67-2919 67-4-912
67-2920 67-4-913
67-2921 67-4-914
67-2922 67-4-915
67-2923 67-4-916
67-2924 67-4-917
67-2925 67-4-918
67-2926 Obsolete
67-2927 Obsolete
67-3001 67-6-101
67-3002 67-6-102
67-3003 (1st para.) 67-6-201
67-3003 (a) 67-6-202
(b) 67-6-203
(c), (d) 67-6-204
(e) 67-6-205
(f) 67-6-501
(g) 67-6-206
- 67-6-207
—
67-6-208
7 Se ee
a Pe eT
App. 169
PARALLEL REFERENCE TABLE
Former 1983 Former 1983
Sections Replacements Sections Replacements
67-3004 (a)-(e) 67-6-209 (c) 67-6-522
(f) 67-6-308 (d) 67-6-502
67-3005 67-6-210 67-3021 67-6-509
67-3006 Obsolete 67-3022—67-3024 67-6-504
67-3007 67-6-211, 67-6-313 (1st and
67-3008 67-6-507 3rd para.)
67-3009 67-6-101 67-3024 (2nd para.) 67-6-204
67-3010 67-6-323 67-3025(a), (c) 67-6-513
67-3011 67-6-301 (b), (c) 67-6-518
67-3012 67-3026(a)-(c) 67-6-516
(1) 67-6-329 (d) 67-6-505
(2) 67-6-325 67-3026(e 67-6-506
(3) 67-6-326 67-3027 67-6-512
(4) 67-6-324 67-3028 (1st and |
: (5) 67-6-305 2nd para.) 67-6-507
(6) 67-6-315 (3rd para.) 67-6-508
(7) 67-6-302 67-3029 (1st para.) 67-6-517
(8) (a) 67-6-321 (2nd para.) 67-6-507
(8) (b) 67-6-327 67-3030—67-3032 67-6-517
(9) 67-6-320 67-3033 (1st para.) 67-6-515
(10) 67-6-316 (2nd-4th,
(11) 67-6-306 6 para.) 67-6-520
(12 67-6-318 (5th para.) 67-6-527
(13 67-6-303 (7th para.) 67-6-522
(14) 67-6-319 (8th para.) 67-6-521
(15 Obsolete (9th para.) 67-6-519
(16) 67-6-304 67-3034—67-3037 67-6-523
(17) 67-6-310 67-3038, 67-3039 67-6-524
(18) 67-6-312 67-3040 67-6-525
(19) 67-6-314 ©7-3041 (1st-3rd para.) 67-6-602
(20) 67-6-311 (4th para.) 67-6-511
(21) 67-6-328 (5th para.) 67-6-604
(22) 67-6-317 (6th and
(23) 67-6-307 12th para.) 67-6-606
67-3013 67-6-309 (7th and
67-3014 67-6-322 8th para.) 67-6-607
67-3015 67-6-510 (9th para.) 67-6-603
| 67-3016 67-6-501 (10th para.) 67-6-601
i 67-3017 67-6-102 (11th para.) 67-6-605
67-3018 67-6-501 %7-3042 67-6-526
67-3019 R 69, ch.3,§2 67-3043 67-6-403
67-3020(a) 67-6-503 ©7-3044 67-6-404
| (b) 67-6-514 67-3045 67-6-402
App. 170
PARALLEL REFERENCE TABLE
Former 1983
Sections Replacements
67-3046(a) 67-6-403
(b) (1st para.) 67-6-401,
67-6-402, 67-6-512
(b) (2nd para.) 67-6-405
67-3047 67-6-103
67-3048 (1st and
2nd para.) 67-6-402
(3rd para.) 67-6-406
67-3049 67-6-701
67-3050(a) 67-6-702, 67-6-704,
67-6-705
(b) 67-6-702
(c) 67-6-705
(d) 67-6-705, 67-6-708
67-3051 67-6-703
67-3052 67-6-712
67-3053(a) 67-6-706, 67-6-711
(b) - 67-6-706
(c) 67-6-707
67-3054 67-6-710
67-3055 > 67-6-709
67-3056 67-6-701
67-3101 67-4-1001
67-3102 67-4-1002, 67-4-1004,
67-4-1005, 67-4-1009,
67-4-1025
67-3103 67-4-1003
67-3104 67-4-1006
67-3105 67-4-1019
67-3106 67-4-1009
67-3107 67-4-1007
67-3108 67-4-1010
67-3109 67-4-1011
67-3110 67-4-1001, 67-4-1022
67-3111 67-4-1012, 67-4-1013,
67-4-1014
67-3112 - 67-4-1011
67-3113—67-3116 67-4-1015
67-3117 67-4-1016
67-3118 67-4-1017
67-3119 67-4-1016
67-3120 67-4-1018
67-3121 67-4-1016
67-3122 67-4-1024
Former
Sections
67-3123
67-3124
67-3125
67-3126
67-3127
67-3201
67-3202
67-3203
67-3204
67-3205
67-3206
67-3208
67-3209
67-3210
67-3211
67-3212
67-3213
67-3214
67-3215
67-3216—67-3225
67-3301
67-3302
67-3303
67-3304
67-3305
67-3306
67-3307
67-3308
67-3309
67-3310
67-3311
67-3312 .
67-3313
67-3314
67-3315
67-3316
67-3317
67-3318
67-3401
687-340?
67-3403(a)
(b)
1983
Replacements
67-4-1020, 67-4-1021
67-4-1025
67-4-1008
67-4-1014
67-4-1023
60-3-101
60-3-102
60-3-103
60-3-104
60-3-105
60-3-106
60-3-107
60-3-108
60-3-109
60-3-110
60-3-111
60-3-112
60-3-113
60-3-114
R ‘78 (Adj.
S.), ch. 761,
§ 116
67-3-601
67-3-602
67-3-603
67-3-604
67-3-605
67-3-606
67-3-607
67-3-608
67-3-609
67-3-610
67-3-611
67-3-612
67-3-613
67-3-614
67-3-615
67-3-616
67-3-617
67-3-618
67-3-701
67-3-702
67-3-703
67-3-703, 67-3-704
a abide
wears
SAAR ae LE a ne icon
FAO ae
ebm
a
3
x
4
:
a
F
b|
cs
'
%
4
4
= 4
2
;
:
z
|
3
4
a
x
7
App. 171
PARALLEL REFERENCE TABLE
Former 1983 Former 1983
Sections Replacements Sections Replacements
(c) 67-3-705
(d) 67-3-706 67-3408 67-3-710
57-3404 67-3-703 67-3409—67-3412 R ’78 (Adj.
67-3405 67-3-707 S.),ch.761, § 116
67-3406 67-3-708 67-3501 67-3-101
67-3407 67-3-709 67-3502 67-3-102
Section.
67-6-101.
67-6-102.
67-6-103.
67-6-201.
67-6-202.
67-6-203.
67-6-204.
67-6-205.
67-6-206.
67-6-207.
67-6-208.
67-6-209.
67-6-210.
67-6-211.
67-6-301.
67-6-302.
App. 172
CHAPTER 6
SALES AND USE TAXES
Part 1
General Provisions
Short tithe—
Nature of tax.
Definitions.
Deposit and allo-
cation of receipts.
Part 2—Taxes
Imposed
Taxable privilege
declared.
Property sold
at retail.
Property used,
consumed, dis-
tributed or stored.
Lease or rental
of property.
Services.
Industrial machinery
and raw materials
Exemptions.
Farm equipment
and machinery.
Fuels for residential
use.
Use of property
produced or
severed from earth
—Exemptions.
Use of property
imported by dealer
—Exemptions.
Property no longer
in interstate
commerce.
Part 3—Exemptions
Agricultural
products.
Aircraft parts and
supplies.
67-6-303.
67-6-304.
67-6-305.
67-6-306.
67-6-307.
67-6-308.
67-6-309.
67 -6-310.
67-6-311.
67-6-312.
67-6-313.
67-6-314.
67-6-315.
67-6-316.
67-6-317.
67-6-318.
67-6-319.
67-6-320.
67-6-321.
68-6-322.
67-6-323.
67-6-324.
Armed forces—
Automobiles.
Blood and plasma.
Demonstration
property.
Divorce—Transfer
of automobile.
Energy or resource
recovery facilities.
Federal government.
Film and tran-
scription rentals.
Gun shows—
Sales by nonprofit
organizations.
Industrial machinery
transferred between
parent and sub-
sidiary corporations.
Insulin.
Interstate
commerce.
Medical equipment
and devices for
handicapped
persons.
Motor vehicles
moved outside state.
Optometrists,
opticians, and
ophthalmologists.
Ostomy products.
Oxygen.
Pharmaceutical
samples.
Prescription drugs.
Railroad stock—
Vessels and barges.
Religious, educa-
tional, and chari-
table institutions.
Religious
publications.
Replacement parts
or goods.
——————_—————— ee CCC:CLC—“‘ CC;
eee
on
ee eee ee ee eae
Section.
67-6-325.
67-6-326.
67 -6-327.
67-6-328.
67-6-329.
67-6-401.
67-6-402.
67-6-403.
67-6-404.
67 -6-405.
67-6-406.
67-6-501.
67-6-502.
67-6-503.
67-6-504.
67-6-505.
67 -6-506.
67-6-507.
67-6-508.
67-6-509.
67-6-510.
SALES AND USE TAX
Telephone
cooperatives.
Vessels.
Vessels and barges
—Repairs.
Watershed districts.
Miscellaneous
exemptions.
Part 4—Administra-
tive Provisions
Administration by
commissioner.
Rules and
regulations.
Forms.
Oaths.
Personnel, supplies,
and expenses.
Duties of state and
local officials.
Part 5—Collection
and Enforcement
Generally
Tax collected
from dealer.
Tax paid by
consumer.
Retailer to display
price and tax
separately.
Returns and
payment. .
Alternative filing
and payment dates.
Extensions.
Credits to dealer.
Credits to purchaser.
Deduction for
dealer’s accounting
costs.
Computation on
trade-ins.
Section.
67-6-511.
67-6-512.
67-6-513
67-6-514.
67-6-515.
67-6-516.
67-6-517.
67-6-518.
67-6-519.
67 -6-520.
67-6-521.
67-6-522.
67-6-523.
67-6-524.
67-6-525.
67-6-601.
67 -6-602.
67 -6-603.
Inclusion of lessee’s
sales in dealer's
return.
Form of payment.
_ Settlement on
quitting business.
Excess revenue paid
over to com-
missioner.
When tax becomes
delinquent.
Delinquency—
Penalties and
interest.
Delinquency—
Determination and
collection tax.
Collection of tax
from dealer's
debtors.
Lien for taxes.
Distress warrants.
Injunctions.
Delinquent
dealers—Bond.
Records.
Importation permits.
legal importation
—Confiscation of
property.
_ Violations—
Criminal penalties.
_ Taxpayer's remedies.
Part 6—Dealer
Registration
Registration
required.
Certificate of
registration.
Forfeiture of
certificate.
App. 174
SALES AND USE TAXES
Section. Section.
67-6-604. Revocation of 67-6-702. Tax authorized—
certificate— Rates.
Procedure. 67-6-703. Priority of
67-6-605. Recall of certificate county levy.
for excessive 67-6-704. Exemptions.
administrative costs. 67-6-705. Tax subject to
67-6-606. Operating without referendum.
certificate— 67-6-706. Referendum.
Misdemeanor. 67-6-707. Petition for tax.
67-6-607. Unauthorized use 67-6-708. Termination of tax.
of certificate— 67-6-709. Repeal of tax.
Misdemeanor. 67-6-710. Collection and
administration.
Part 7—Local 67-6-711. Collection of local
Option Revenue sales tax by state.
Act 67-6-712. Distribution of
revenue.
§7-6-701. Short tithe—
Nature of tax.
PART L- GENERAL PROVISIONS
67-6-101. Short title Nature of taxr.—'This chapter
shall be known as the ‘Retailers* Sales Tax Act’? and the
tax imposed by this ehapter shall be in addition to all
other privilege taxes, whether levied in the form of exeise,
license, or privilege taxes, and shall be in addition to all
other fees and taxes levied. {| Aets 1947, eh. 38, 991, 3; ¢.
Supp. 1950, §§ 1248.50, 1248.52 (Williams, §§ 1328.22,
1328.24); T.C.A. (orig. ed.), §§ 67-3001, 67-3009, ]
67-6-102. Definitions. The follewing words, terms,
and phrases, when used in this chapter, shall have the
meanings ascribed to them in this section, exeept when
the context clearly indicates a different meaning:
(1) ‘*Business*’ ineludes any activity engaged in by
any person, or caused to be engaged in by him, with the
object of gain, benefit, or advantage, either direct or in-
ented
tat ah. ie Lae ne Pa?
App. 175
direct. ‘‘Business’’ shall net be construed to include oe
easional and isolated sales or transactions by a person
who does not hold himself ont as engaged in business, or
the oeeasional and isolated sale at retail or use of services
sold by or purchased from a person not regularly engaged
in business as a vendor of taxable services or from one
who is such a vendor but is not normally a vendor with
respect to the services sold or purehased in such occasional
or isolated transaction. Provided, however, that it shall
be construed to inelude oceasional and isolated sales or
transactions by such a person involving aircraft, vessels
or motor vehicles, (which terms shall be construed to in-
elude trailers and special motor equipment sold in con
junction therewith), as defined by and required to be
registered under the laws of Tennessee with an agency of
this state or under the laws of the United States with an
agency of the federal government, unless such sales or
transactions are otherwise exempt under this chapter or
are sales between persons who are: married, lineal rela-
tives or spouses of lineal relatives, or siblings. Such sales
or transactions involving aircraft based in this state shall
be presumed to be made and taxable in this state;
,
and any
registration reflecting such aircraft which are so based
shall constitute evidence thereof. Provided further, how-
ever, that it shall not be construed to include those ocea-
sional or isolated sales or transactions by such a person
involving mobile homes or house trailers, as defined by
§ 55-4-111, when the consummation of such exclusively in
volves the assumption by the purchaser of a previously
existing finance contract and no other consideration is
recevied by the seller;
(2) ‘Commissioner’? means and inclades the com-
missioner of revenue of the state of Tennessee, or his duly
authorized assistants;
App. 176
(3) **Cost price’? means the actual cost of articles of
tangible personal property without any deductions there
from on account of the cost of materials used, labor, on
service costs, transportation charges, o1 any expense
Whatsoever:
(4) ‘Dealer’? means every person, as used in this
chapter, who:
(A) Manufactures or produces tangible personal
property for sale at retail, for use. o1 Consumption, or
distribution, or for storage to be used or consumed
in this state;
(B) Imports or causes to be imported, tangible
personal property from any state or foreign country,
for sale at retail, for use, on constinption, or distribu
tion, or for storage to be used or eonsumed in this
state;
(() Sells at retail, or who offers for sale at re
tail, or who has in his possession for sale at retail.
or for use, or consumption, or distribution. or storage
to be used or consumed in this state, tangible personal
property as defined herein;
(D) Has sold at retail, or used. or consumed,
or distributed, or stored for use or consumption in
this state, tangible personal properts and who cannot
prove that the tax levied by this chapter has been paid
on the sale at retail, the use, the consumption, the dis
tribution, or the storage of the taneible personal
property;
(Ef) Leases or rents tangible personal property,
as defined in this chapter, for a consideration, per
mitting the use or possession of the property with
out transferring title thereto:
(}k) Is the lessee or renter of tanvible personal
property, as defined in this chapter, and who paves to
the owner of such property a consideration for the
App. 177
——
use or possession of such property without acquiring
title thereto;
(Gi) Maintains or has within this state, directly
or by a subsidiary, an office, distributing house, sales
room, or house, warehouse, or other place of business ;
(11) Furnishes any of the thinys or services
taxable under this chapter;
(1) tlas any representative, agent, salesman, can
vasser or solicitor operating in this state, or any per
son who serves in such eapacity, for the purpose of
making sates or the taking of orders for sates, irre
spective of whether such representative, agent, sales
man, canvasser or solicitor ts located here permanent
ly or temporarily, and irrespective of whether an
established place of business ts maintained in this
state ;
(J) Distributes catalogues o1 other advertising
matter and by reason thereof receives and accepts
orders from residents of this state; and
(K) Uses tangible personal property, whether
the title to sneh property is in him or some other en
tity, and whether or not such other entity is required
to pay a sales or use tax, in the performance of his
eontract or to fulfill his contract obligations, unless
such property has previously been subjected to a sales
or use tax. and the tax due thereon has been paid ;
(5) “Fabricating or processing tangibl personal
property for resale’’ means only tangible personal proper-
ty which ts fabricated or processed for ultimate use or
consumption off the premises of the one engaging in such
fabricating or processing ;
(6) **Farm equipment and machinery’* means any
applicance used directly and principally for the purpose of
producing agricultural products, including nursery pro
App. 178
ducts, for sale and use or consumption otf the premises,
the retail price of which, for any such single article, ex-
ceeds two hundred and fifty dollars ($250), but shall not
include an automobile, truck, household applicances or
property which becomes real property when erected or in-
stalled. Notwithstanding the foregoing provisions, grain
bins and attachments thereto which are sold to or used by
a farmer shall be considered ‘‘farm equipment and ma-
chinery’’;
(7) **Gross sales’? means the sum total of all retail
sales of tangible personal property and all proceeds of
services taxable under this chapter as defined herein, with-
out any deduction whatsoever of any kind or character,
except as provided in this chapter;
(8) ‘*Industrial machinery’? means:
(A) Machinery, including repair parts and any
necessary repair or taxable installation labor there-
for, which is directly and primarily utilized in fabri-
ating or processing tangible personal property for
resale, or equipment primarily used for air pollution
control or stream pollution control, where the use of
such machinery or equipment is by one who engages
in such fabrication or processing as his principal busi-
ness either within or without this state, or such use
by a county or municipality or a contractor pursuant
to a contract with such county or municipality for use
in stream pollution control or sewage systems; and
(B) Machinery, the cost of which, for any such
single article, exceeds one thousand dollars ($1,000),
which is directly and primarily utilized for the purpose
of remanufacturing industrial machinery as defined
in subdivision (8)(A) when such utilization is by one
whose principal business is that of remanufacturine
industrial machinery;
el
App. 179
(9) ‘Lease or rental’? means the leasing or renting
of tangible personal property and the possession or use
thereof by the lessee or renter for a consideration, withont
transfer of the title of such property;
(10) ‘Livestock and poultry feed’? means and in-
eludes all grains, minerals, salts, proteins, fats, fibers and
all vitamins, acids and drugs used and mixed with said
ingredients as a growth stimulant, disease preventive, to
stimulate feed conversion and make a complete feed;
(11) ‘*Persons’’ ineludes any individual, firm, co-
partnership, joint adventure, association, corporation, es-
tate, trust, business trust, receiver, syndicate, any govern-
mental agency whose services are essentially a private
commercial concern, or other group or combination acting
as a unit, in the plural as well as the singular number. It
is further defined to include any political subdivision or
vovernmental agency, including electric membership corpo-
rations or cooperatives, and utility districts, to the extent
that such agency sells at retail, rents or furnishes any of
the things or services taxable under this chapter ;
(12) ‘Retailer’? means and includes every person
engaged in the business of making sales at retail, or for
distribution, or use, or consumption, or storage to be used
or consumed in this state or furnishing any of the things
er services taxable under this chapter ;
(13)(A) ‘Retail sales’’ or a ‘(sale at retail’? means
a sale to a consumer or to any person for any pur-
pose other than for resale in the form of tangible per-
sonal property, and shall mean and inelude all such
transactions as the commissioner of revenue upon in-
vestigation finds to be in heu of sales; provided that
sales for resale must be in strict compliance with rules
App. 180
and regulations. Any dealer making a sale for resale
which is not in strict compliance with rules and regu-
lations shall himself be liable for and pay the tax;
(B) ‘‘Retail sale’? or ‘‘sale at retail’’ shall in-
clude the furnishing of things or services taxable un-
der this chapter ;
(C) ‘Retail sale’’ or ‘‘sale at retail’’ ineindes
the delivery in this state of tangible personal property
by a retailer who has no place of business in this
state, if the delivery is made to a consumer in this
state or to another person for redelivery to a con-
sumer in this state pursuant to a retail saie made by
such retailer to such consumer;
(D) Nothing is this subdivision (13)(D) or sub-
division (13)(C) shall be construed to impose a tax
which is invalid either under the commerce clause or
the due process clause of the United States Constitu-
tion. In addition, the department of revenue may en-
ter into a reciprocal agreement with the comparable
department of another state to furnish reeords con-
cerning purchases made by citizens of the other state
from a dealer in this state where the dealer collects
neither a sales nor a use tax on such sales provided
that the other state agrees to furnish the same reeords
to this state and each sale is in excess of five hundred
dollars ($500). Provided further, all dealers in Ten-
nessee making sales to purchasers in another state
where no sales or use tax is collected shall furnish
the department copies of all such invoices or suitable
substitutes for sales in excess of five hundred dollars
($500) with their monthly returns provided that the
department notifies such dealers of the existence of a
reciprocal agreement ;
(H) ‘‘Sale at retail,’’ ‘‘use,’’ ‘‘storage,’’ and
‘f‘consumption’’ shall not include the sale, use, storage
or consumption of industrial materials and explosives
for future processing, manufacture or conversion into
articles of tangible personal property for resale where
App. 181
such industrial materials and explosives become a
component part of the finished product or are used
directly in fabricating, dislodging, sizing, converting,
or processing such materials or parts thereof, and
such terms shall not include materials, containers,
labels, sacks, bags or bottles used for packaging tangi-
ble personal property when such property is either
sold therein directly to the consumer or when such
use is incidental to the sale of such property for re-
sale;
(F) ‘‘Retail sale,’’ ‘‘sale at retail,’’ and ‘‘retail
sales price’’ shall include the f
This text is long and has been trimmed here. Open the source document for the complete record.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.