Section 56-4-302 - Nature of tax - Exemption from other taxes(a) The business declared in this part to be a privilege is for state purposes only and taxable as a privilege by the state alone, and no county or municipality may impose any tax upon the privilege, or upon the privilege of conducting business or acting as agent or representative of any investment company, as defined in §§ 56-4-301 and 56-4-303.(b)(1) The tax provided in this part shall be in lieu of and substituted for any and all other taxes heretofore imposed by any law, general or special, against or on the investment companies, as defined in §§ 56-4-301 and 56-4-303, except ad valorem taxes upon real estate and tangible personal property owned by the investment companies and located in the state.(2) The exemption from other taxes shall include all other privilege taxes, such as taxes upon or for the use of the franchise, capital, notes, reserves, surpluses, loans, accounts and other income and profits of the investment companies. The members, shareholders, account holders, certificate holders, or contract holders are exempt from any and all privilege taxes and income taxes imposed by any law now on the statute books, upon profits, dividends, interest or income in the nature of profits, dividends, or interest received from the investment company.(c) Nothing in this section shall be construed to provide an exemption from the sales and use tax imposed by title 67, chapter 6.Acts 1939, ch. 187, §§ 5, 6; C. Supp. 1950, §§ 1248.37, 1248.38 (Williams, §§ 1248.164, 1248.165); modified; T.C.A. (orig. ed.), §§ 67-4406, 67-4410, 67-4-1202; Acts 2005, ch. 499, § 23.