Section 1320-05-01-.85 - COMMON CARRIERS(1) A common carrier shall pay the Sales or use Tax on all tangible personal property or taxable services which it buys or uses in this State, except rolling stock, aircraft, or floating equipment which enters the State in actual use in interstate commerce at the time of entering and is continuously used in interstate commerce thereafter. This exception shall not apply to such equipment which is localized for use within the State.(2) Where tangible personal property is stored in this State, and is later exported to another State for use therein, the tax previously having been paid on this property, the common carriers may take credit for the tax paid on said property, in settlement for the month in which the property is removed from this State, provided accurate records of all transactions are kept on file.(3) Lubricants and fuel put into equipment storage facilities outside the State, and brought into this State are not subject to the Sales or Use Tax; lubricants and fuel put into equipment storage facilities in this State are subject to the Sales or use Tax. This rule is applicable regardless of the amount of lubricants or fuel used in this State.(4) Dealers making sales for use and consumption from locations in the State are liable for the applicable Sales Tax due thereon regardless of any possible losses or damages which may occur while the tangible personal property is in the hands of a common or contract carrier. Any claims for losses or damages to such property shall include the applicable Sales Tax. Claims for losses or damages for tangible personal property sold by a dealer for use and consumption from a place of business in the State, but actually shipped from a location out of the State shall likewise include the applicable Sales Tax. Dealers making sales, and users and consumers making shipments from out of state locations shipping tangible personal property into the State for use and consumption may be given credit for any losses or damages to tangible personal property shipped into this State for use and consumption, and the Use Tax on such losses and damages will not be considered as a part of claims for losses or damages.(5) Common carriers making regular sales of damaged tangible personal property shall be deemed to be dealers selling tangible personal property, and must collect and be liable for any applicable Sales Tax.Tenn. Comp. R. & Regs. 1320-05-01-.85
Original rule certified June 7, 1974.Authority: T.C.A. §§67-3045 and 67-101.