Section 1320-05-01-.108 - NATURAL OR ARTIFICIAL GAS(1) Sales of natural or artificial gas of any kind, and sales of appliances, pipe or fittings, and installation charges for installing tangible personal property incidental to the sale thereof where the property remains personal property, are subject to the Sales or Use Tax.(2) In the event a distributor of natural or artificial gas uses electricity, gas, or other tangible personal property in connection with his distribution, he shall be liable for the Sales or Use Tax applicable to the cost price thereof where it is used.(3) In the event a dealer installs pipe, fittings, etc., which he has sold to a customer which is exempt from paying Sales and Use Tax, and which becomes real property when it is installed, the dealer shall be deemed to be a contractor, and liable for Sales and Use Tax on the cost price of the tangible personal property which becomes real property, except where the customer is a church or private nonprofit college or university, and the pipe, fittings, etc., are used for church or private nonprofit college or university construction, maintenance etc., in which case the dealer is not liable for any Sales or Use Tax.(4) Statements for sales of natural or artificial gas must indicate in some manner whether the customer is paying any Sales or Use Tax.Tenn. Comp. R. & Regs. 1320-05-01-.108
Original rule certified June 7, 1974. Amendment filed December 15, 1986; effective January 29, 1987. Amendment filed June 28, 2000; effective September 11, 2000.Authority: T.C.A. §§ 67-1-102, 67-6-209 and 67-6-402.