Tenn. Code § 67-6-102

Current through Acts 2021, ch. 595, and 2021EX3, ch. 7
Section 67-6-102 - [As amended by2021Tenn. Acts, ch.285]Chapter definitions - Definitions applicable for taxation of charges for mobile telecommunications services
(a) As used in this chapter, unless the context otherwise requires:
(1) "Aircraft" has the same meaning used in § 42-1-101;
(2) "Ancillary services" means services that are associated with, or incidental to, the provision of telecommunications services, including, but not limited to, detailed telecommunications billing service, directory assistance service, vertical service, and voice mail service. As used in this subdivision (a)(2):
(A) "Conference bridging service" means an ancillary service that links two (2) or more participants of an audio or video conference call, and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge;
(B) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement;
(C) "Directory assistance" means an ancillary service of providing telephone number information, and address information;
(D) "Vertical service" means an ancillary service that is offered in connection with one (1) or more telecommunications services, that offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services; and
(E) "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service;
(3)
(A) "Business" means any activity engaged in by any person, or caused to be engaged in by such person, with the object of gain, benefit, or advantage, either direct or indirect;
(B) "Business" does not include occasional and isolated sales or transactions by a person not regularly engaged in business, or the occasional 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 purchased in such occasional or isolated transaction. "Business" does not include those occasional 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 involves the assumption by the purchaser of a previously existing finance contract and no other consideration is received by the seller. "Business" does not include any sales or use tax of tangible personal property of any type sold directly to consumers by any person, including, but not limited to, the Girl Scouts or county fairs; provided, however, that the tangible personal property is not regularly sold by such person or is regularly sold by such person only during a temporary sales period which occurs on a semiannual, or less frequent, basis;
(C) "Business" includes occasional and isolated sales or transactions of aircraft, vessels, or motor vehicles between corporations and their members or stockholders and also includes such transactions caused by the merger, consolidation, or reorganization of corporations. "Business" also includes occasional and isolated sales or transactions of aircraft, vessels, or motor vehicles between partnerships and the partners thereof and transfers between separate partnerships. Transfers caused by the dissolution of a partnership due solely to a partner, in a partnership composed of three (3) or more persons, voluntarily ceasing to be associated in the carrying on of business of the partnership, as provided in § 61-1-128 [repealed], is not included in "business." "Business" shall be construed to include occasional and isolated sales or transactions by such a person involving aircraft, vessels or motor vehicles, which terms 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 taxable in this state; and any registration reflecting such aircraft which are so based shall constitute evidence thereof;
(4) [Effective July 1, 2006. See the Compiler's Notes] "Clothing" means all human wearing apparel suitable for general use;
(5) [Effective July 1, 2006. See the Compiler's Notes] "Clothing accessories or equipment" means incidental items worn on the person or in conjunction with clothing;
(6) "Coin-operated telephone service" means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate;
(7) "Commissioner" means and includes the commissioner of revenue or the commissioner's duly authorized assistants;
(8) "Common carrier" means every person holding a certificate of public convenience and necessity as a common carrier from the interstate commerce commission or the United States department of transportation or its predecessor agency of the federal government;
(9) "Construction machinery" means machinery designed for and used exclusively in the preparation for, assembly, fabrication, and finishing of permanent improvements to real estate;
(10) "Cost price" means the actual cost of articles of tangible personal property without any deductions therefrom on account of the cost of materials used, labor, or service costs, transportation charges, or any expenses whatsoever;
(11) "Dealer" means every person, as used in this chapter, who:
(A) Manufactures or produces tangible personal property for sale at retail, for use, consumption, 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, consumption, distribution, or for storage to be used or consumed in this state;
(C) Sells at retail, or who offers for sale at retail, or who has in such person's possession for sale at retail, or for use, consumption, distribution, or storage to be used or consumed in this state, tangible personal property as defined in this section;
(D) Has sold at retail, used, consumed, 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 retail, the use, the consumption, the distribution, or the storage of the tangible personal property;
(E) Leases or rents tangible personal property, as defined in this chapter, for a consideration, permitting the use or possession of the property without transferring title to such property;
(F) Is the lessee or renter of tangible personal property, as defined in this chapter, and who pays to the owner of such property a consideration for the use or possession of such property without acquiring title to such property;
(G) 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;
(H) Furnishes any of the things or services taxable under this chapter;
(I) Has any representative, agent, salesperson, 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, salesperson, canvasser or solicitor is located here permanently or temporarily, and irrespective of whether an established place of business is maintained in this state;
(J) Engages in the regular or systematic solicitation of a consumer market in this state by the distribution of catalogs, periodicals, advertising fliers, or other advertising, or by means of print, radio or television media, by telegraphy, telephone, computer data base, cable, optic, microwave, or other communication system;
(K) Uses tangible personal property, whether the title to such property is in such person or some other entity, and whether or not such other entity is required to pay a sales or use tax, in the performance of such person's contract or to fulfill such person's contract obligations, unless such property has previously been subjected to a sales or use tax, and the tax due thereon has been paid;
(L) Sells at retail or charges admission, dues or fees as defined in this chapter; or
(M) Rents or provides space to a dealer without a permanent location in this state or to dealers who are registered for sales tax at other locations in this state, but who are making sales at this location on a less than permanent basis; provided, that "dealer" does not include flea market operators;
(12) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;
(13) "Energy resource recovery facility" means a facility for the production of energy in the form of steam or chilled water from the controlled burning of combustible materials, including, without limitation, coal, fuel oil, or natural gas, where such energy is to be used in a system for heating and cooling five (5) or more separate buildings;
(14) "Fabricating or processing tangible personal property for resale" means only tangible personal property which is fabricated or processed for resale and ultimate use or consumption off the premises of the one engaging in such fabricating or processing, or hot mix asphalt and crushed stone fabricated by a contractor for use by the contractor in highway or road construction projects funded by tax revenues. "Fabricating or processing tangible personal property for resale" shall be deemed to include providing fabrication and repair services to aircraft owned by non-affiliated business entities whether commercial, governmental or foreign, provided that the dealer performing such services qualifies for the credit allowed in § 67-4-2109(c). "Fabricating or processing tangible personal property for resale" shall not include any other type of repair services. "Fabricating or processing tangible personal property for resale" includes the processing of photographic film into negatives and/or photographic prints for resale;
(15) "Farm equipment and machinery" means any appliance used directly and principally for the purpose 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 fifty dollars ($250), but does 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, aircraft designed and used for crop dusting, such as an agracat or other similar airplanes which are designed for crop dusting purposes, equipment used exclusively for harvesting timber, and trailers used to transport livestock, as defined in § 44-18-101, shall be considered "farm equipment and machinery." Self-propelled fertilizer or chemical application equipment used to spread fertilizer or chemical on farms to aid in the production of food or fiber for human or animal consumption, notwithstanding the fact that such equipment may be mounted on a chassis with wheels, if such equipment is not designed for over-the-road use, but may be driven over-the-road from the source of supply to the farm, and tender beds and spreader beds, even if mounted on a truck chassis, shall be considered farm equipment and machinery. Systems for poultry environment control, feeding and watering poultry and conveying eggs, the retail price of which exceeds two hundred fifty dollars ($250) shall also be considered "farm equipment and machinery." Included within this definition of "farm equipment and machinery" is the lease or rental of such farm equipment and machinery, regardless of the amount of the lease or rental, even if the amount of the lease or rental is less than two hundred fifty dollars ($250);
(16) "Flea market" means a place of business which provides space more than two (2) times a year to two (2) or more persons for the purpose of making sales at retail of tangible personal property which, during the usual course of being displayed or offered for sale is not stored or displayed permanently at that space. "Flea market" does not include hotels, convention centers, municipal auditoriums, municipal coliseums, or gun shows, if such gun shows are sponsored by a not-for-profit corporation;
(17) "Flea market operator" means any person who receives compensation for providing space more than two (2) times a year to two (2) or more persons for the purpose of making sales at retail of tangible personal property which, during the usual course of being displayed or offered for sale, is not stored or displayed permanently at that space. "Flea market operator" does not include hotel, convention center, municipal auditorium, municipal coliseum, or gun show operators, if such gun shows are sponsored by a not-for-profit corporation;
(18) "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 in this section, without any deduction whatsoever of any kind or character, except as provided in this chapter;
(19) "Industrial machinery" means:
(A) Machinery, apparatus and equipment with all associated parts, appurtenances and accessories, including hydraulic fluids, lubricating oils, and greases necessary for operation and maintenance, repair parts and any necessary repair or taxable installation labor therefor, which is necessary to, and primarily for, the fabrication or processing of tangible personal property for resale and consumption off the premises, or pollution control facilities primarily used for air pollution control or water pollution control, where the use of such machinery, equipment or facilities is by one who engages in such fabrication or processing as one's principal business or who engages in the fabrication or processing of materials into trusses, window units or door units for resale as part of the principal business of the sale of building supplies 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 water pollution control or sewage systems, also mining machinery, apparatus equipment and materials, with all associated parts and accessories, including repair parts and any necessary repair or installation labor, which is necessary to and primarily for:
(i) The removal, extraction or detachment of coal from land by surface, underground or other lawful methods of mining and the construction or maintenance of necessary ingress and egress from the mine;
(ii) The removal, handling and replacement of overburden and spoils materials; or
(iii) The reclamation of mined areas reclaimed under state or federal laws, rules or regulations;
(iv) As used in this chapter, "pollution control facilities" means any system, method, improvement, structure, device or appliance appurtenant thereto used or intended for the primary purpose of eliminating, preventing or reducing air or water pollution, or for the primary purpose of treating, pretreating, recycling or disposing of any hazardous or toxic waste, solid or liquid, when such pollutants are created as a result of fabricating or processing by one who engages in fabricating or processing as such person's principal business activity, which, if released without such treatment, pretreatment, modification or disposal, might be harmful, detrimental or offensive to the public and the public interest;
(B) Machinery, the cost of which, for any such single article, exceeds one thousand dollars ($1,000), which is necessary to and primarily for remanufacturing industrial machinery as defined in subdivision (a)(19)(A) when such utilization is by one whose principal business is that of remanufacturing industrial machinery;
(C) Machinery utilized in the pre-press and press operations in the business of printing, including plates and cylinders, and including the component parts and fluids or chemicals necessary for the specific mechanical or chemical actions or operations of such machinery, plates and cylinders, regardless of whether or not the operations occur at the point of retail sales;
(D) Such industrial machinery necessary to and primarily for the fabrication and processing of tangible personal property for resale or used primarily for the control of air pollution or water pollution includes, but is not limited to:
(i) Machines used for generating, producing, and distributing utility services, electricity, steam, and treated or untreated water; and
(ii) Equipment used in transporting raw materials from storage to the manufacturing process, and transporting finished goods from the end of the manufacturing process to storage;
(E) Machinery used to package manufactured items, where the use of such machinery is by a person whose principal business is fabricating or processing tangible personal property for resale. Notwithstanding the principal business of the user, this exemption shall also apply where the use of such machinery at a location is to package automotive aftermarket products manufactured at other locations by the same person or by a corporation affiliated with the manufacturing corporation such that:
(i) Either corporation directly owns or controls one hundred percent (100%) of the capital stock of the other corporation; or
(ii) One hundred percent (100%) of the capital stock of both corporations is directly owned or controlled by a common parent.

To "package," as used in this subdivision (a)(19)(E), refers only to the fabrication and/or installation of that packaging which will accompany the product when sold at retail;

(F) Such industrial machinery necessary to and primarily for the fabrication or processing of tangible personal property for resale and consumption off the premises or used primarily for the control of air pollution or water pollution does not include machinery, apparatus and equipment used prior to or after equipment exempted by subdivision (a)(19)(D)(ii), and does not include equipment used for maintenance or the convenience or comfort of workers;
(G) Machinery, apparatus and equipment with all associated parts, appurtenances and accessories, including hydraulic fluids, lubricating oils and greases necessary for operation and maintenance, repair parts and any necessary repair or taxable installation labor therefor, which is necessary to, and primarily for, the fabricating or processing of prescription eyewear, where a majority of such eyewear is ultimately dispensed to patients in states other than Tennessee;
(H)
(i) Material handling equipment and racking systems, used by a corporation subject to Tennessee franchise, excise taxes, directly and primarily for the storage or handling and movement of tangible personal property in a qualified, new or expanded warehouse or distribution facility, which are purchased beginning one (1) year prior to the start of the construction or expansion and ending one (1) year after the substantial completion of the construction or expansion of the facility, but in no event shall the period exceed three (3) years. "Qualified, new or expanded warehouse or distribution facility" means a new or expanded facility, which meets the requirements set out in this subdivision (a)(19)(H), for the storage or distribution of finished tangible personal property. Such facilities shall not include a building where tangible personal property is fabricated, processed, assembled or sold over-the-counter to consumers, except for taxpayers which qualify under the provisions of Acts 1995, ch. 185, or are configuring, testing or packaging computer products. "Configuring" computer products means integrating a computer with peripheral computer products, such as a hard disk drive, additional memory or software. A qualifying facility must also be:
(a) A warehouse or distribution facility constructed in this state through an investment in excess of ten million dollars ($10,000,000) by the taxpayer, and/or a lessor to the taxpayer, over a period not exceeding three (3) years, in a newly constructed and previously unoccupied building and/or equipment for the facility; or
(b) An expansion to an existing warehouse or distribution facility, previously qualified under subdivision (a)(19)(H)(i), through an additional investment in excess of ten million dollars ($10,000,000) by the taxpayer, and/or a lessor to the taxpayer over an additional period not exceeding three (3) years, for additions to the building and the purchase of new equipment for use in the expanded facility;
(ii) A taxpayer shall qualify for the exemption afforded to material handling and racking systems under subdivision (a)(19)(H)(i) by submitting an application to the commissioner for the exemption, together with a plan describing the investment to be made. The application and plan shall be submitted on forms prescribed by the commissioner. The plan shall demonstrate that the requirements of the law will be met. Upon approval of the exemption request and plan for investment, purchases of the equipment may be made without payment of the sales or use tax. However, if the requisite investment is not made in the time period required, or the terms of the statute are not met, the taxpayer shall be subject to assessment for any tax, penalty or interest which would otherwise have been due; and
(I) Material handling equipment and racking systems used in a warehouse and distribution facility, subject to all the requirements and conditions of subdivision (a)(19)(H) except:
(i) The required investment in excess of ten million dollars ($10,000,000) may also be made in a previously occupied facility;
(a) Through the purchase of a building, and/or the purchase of new equipment for use in the building no later than one (1) year after the purchase of the building; or
(b) Through the purchase of new equipment for use in a leased building, not qualifying under subdivision (a)(19)(I)(i)(a), made no later than one (1) year after the date of the lease agreement; and
(ii) Any purchases exempted from tax for use in the facility described in this subdivision must be made no later than one (1) year after the purchase of the building under subdivision (a)(19)(I)(i)(a), or no later than one (1) year after the date of the lease agreement under subdivision (a)(19)(I)(i)(b);
(J) "Industrial machinery" does not include machinery, apparatus and equipment,with all associated parts, appurtenances, accessories, repair parts, and necessary repair or taxable installation labor therefor, that is used in the preparation of food for immediate retail sale;
(20) "International", as used in connection with telecommunications services, means a telecommunications service that originates or terminates in the United States, and terminates or originates outside the United States, respectively. United States includes the District of Columbia and a United States territory or possession;
(21) "Interstate", as used in connection with telecommunications services, means a telecommunications service that originates in one (1) United States state, or a United States territory or possession, and terminates in a different United States state or a United states territory or possession;
(22) "Intrastate", as used in connection with telecommunications services, means a telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in the same United States state or United States territory or possession;
(23) [Effective July 1, 2006. See the Compiler's Notes] "Layaway sale" means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the property. An order is accepted for layaway by the seller, when the seller removes the property from normal inventory or clearly identifies the property as sold to the purchaser;
(24) "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;
(25) "Livestock and poultry feed" means and includes all grains, minerals, salts, proteins, fats, fibers and all vitamins, acids and drugs used and mixed with such ingredients as a growth stimulant, disease preventive, to stimulate feed conversion and make a complete feed;
(26) "Mobile telecommunications service" means commercial mobile radio service, as defined in 47 CFR § 20.3 as in effect on June 1, 1999;
(27) "Permanent location" does not include any booths or space located at a flea market, antique mall, craft show, antique show, gun show, auto show or any similar type business;
(28) "Person" includes any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, any governmental 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. "Person" further includes any political subdivision or governmental agency, including electric membership corporations 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;
(29) "Private communication service" means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels;
(30) [Effective July 1, 2006. See the Compiler's Notes] "Protective equipment" means items for human wear, designed as protection of the wearer against injury or disease or as protection against damage or injury of other persons or property, but not suitable for general use;
(31) [Effective July 1, 2006. See the Compiler's Notes] "Rain check" means the seller allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock;
(32)
(A) "Retail sales" or "sale at retail" means a taxable sale of tangible personal property or specifically taxable services to a consumer or to any person for any purpose other than for resale. "Retail sales" or "sales at retail" means and includes all such transactions as the commissioner, upon investigation, finds to be in lieu of sales. Any sales for resale must, however, be in strict compliance with rules and regulations promulgated by the commissioner. Any dealer making a sale for resale which is not in strict compliance with rules and regulations shall be personally liable for and pay the tax;
(B) "Retail sale" or "sale at retail" includes the furnishing of things or services taxable under this chapter;
(C) "Retail sale" or "sale at retail" includes 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 consumer in this state pursuant to a retail sale made by such retailer to such consumer;
(D) Nothing in this subdivision (a)(32)(D) or subdivision (a)(32)(C) shall be construed to impose a tax which is invalid either under the commerce clause or the due process clause of the Constitution of the United States. In addition, the department 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 a 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). All dealers in Tennessee 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;
(E) "Sale at retail," "use," "storage," and "consumption" do not include the sale, use, storage or consumption of:
(i) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where 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;
(ii) Materials, containers, labels, sacks, bags or bottles used for packaging tangible 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 resale;
(iii) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of such business; or typesetting used in the business of printing and materials necessary for such typesetting or typesetting or materials necessary for typesetting provided to a business of printing to obtain the services of such business; and
(iv) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a cable television service provider authorized pursuant to title 7, chapter 59, and held for sale or lease to its subscribers;
(F) "Retail sale," "sale at retail" and "retail sales price" include the following services:
(i) The sale, rental or charges for any rooms, lodgings, 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 does not apply, however, to rooms, lodgings, or accommodations supplied to the same person for a period of ninety (90) continuous days or more;
(ii) Charges for services rendered by persons operating or conducting a garage, parking lot or other place of business for the purpose of parking or storing motor vehicles. The tax does not apply, however, to charges for such services made by the state and its political subdivisions 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;
(iii) [Effective until 12:01 a.m. July 1, 2007. See the Compiler's Notes.] The furnishing, for a consideration, of intrastate, interstate or international telecommunications services;
(iv) The performing for a consideration of any repair services with respect to any kind of tangible personal property;
(v) The laundering or dry cleaning of any kind of tangible personal property, excluding coin-operated laundry, dry cleaning or car wash facilities, where a charge is made for the laundering or dry cleaning; provided, that the provisions of this subdivision (a)(32)(F)(v) shall not apply to the bathing of animals provided by a licensed veterinarian, when rendered for a medical purpose in conjunction with the practice of veterinary medicine, as defined in § 63-12-103;
(vi) The installing of tangible personal property which remains tangible personal property after installation 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;
(vii) The enriching of uranium materials, compounds, or products, which is performed on a cost-plus basis or on a "toll enrichment fee" basis;
(viii) The renting or providing of space to a dealer or vendor without a permanent location in this state or to persons who are registered for sales tax at other locations in this state but who are making sales at this location on a less than permanent basis. This subdivision (a)(32)(F)(viii) does not apply to the renting or providing of space to a craft fair, antique mall, or book fair or gun show, if such gun show or book fair is sponsored by a not-for-profit corporation. This subdivision (a)(32)(F)(viii) also does not apply to the renting or providing of space at a flea market or the renting or providing of space at conventions, trade shows, or expositions, if such conventions, trade shows, or expositions do not allow the general public to enter the exhibit area for the purpose of making sales or taking orders for sales;
(ix) Charges for warranty or service contracts warranting the repair or maintenance of tangible personal property; provided, that any repairs to the extent covered by the contract shall not also be subject to tax; and
(x) [Effective until 12:01 a.m. July 1, 2007. See the Compiler's Notes.] The furnishing, for a consideration, of ancillary services;
(G) "Retail sale," "sale at retail" and "retail sales price" include charges for admission, dues or fees which constitute a sale under this section except tickets for admission sold to a Tennessee dealer for resale upon presentation of a resale certificate. Dealers registered with the state of Tennessee for sales tax purposes may purchase tickets for resale without payment of tax upon presentation to the vendor of a valid certificate of resale;
(H) Notwithstanding the exemptions provided by §§ 67-6-322 and 67-6-329 for sales to schools, "retail sale" and "sale at retail" subject to tax include any sale of tangible personal property or taxable services to a public or private school, grades kindergarten through twelve (K-12), or school support group, where such property or services are intended for resale by the school or school support group. Resales of such tangible personal property or taxable services by such school or school support group shall not be subject to tax. If for any reason a vendor does not collect and remit tax to the department on the sale of these items to the school or school support group, then the school or school support group shall be liable for use tax based on the purchase price of the items. This subdivision (a)(32)(H) does not apply to sales of school books and school lunches;
(I) "Retail sale" or "sale at retail" includes charges made for the privilege of obtaining merchandise from any vending machine or device; provided, however, that "charges" for this purpose shall be the amount of money deposited into the vending machine or device;
(33) "Retailer" means and includes every person engaged in the business of making sales at retail, or for distribution, use, consumption, storage to be used or consumed in this state or furnishing any of the things or services taxable under this chapter;
(34)
(A) "Sale" means any transfer of title or possession, 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 includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or serving for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving such tangible personal property;
(B) "Sale" also means such transfer of customized or packaged computer software, which is defined to mean information and directions loaded into a computer which dictate different functions to be performed by the computer, whether contained on tapes, discs, 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 such person's own use or consumption shall not be considered a taxable "use" under subdivision (36) or any other section of this chapter;
(C) 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; provided, that where title to property is taken by an industrial development corporation (within the meaning of title 7, chapter 53), but the property is leased to a taxpayer, the transaction shall be regarded, for purposes of this chapter, as a sale to and purchase by the industrial development corporation followed by a lease, regardless of whether the lessee has an option to purchase any or all of the property from the industrial development corporation;
(D) "Sale" includes the furnishing of any of the things or services taxable under this chapter;
(E) "Sale" includes the sale, gifts in connection with valuable contributions, exchange or other disposition of admission, dues or fees to membership sports and recreation clubs, places of amusement or recreational or athletic events or for the privilege of having access to or the use of amusement, recreational, athletic or entertainment facilities. Such establishments or facilities include, but are not limited to, the amusement and recreational facilities and motion picture theaters described in the standard industrial classification index prepared by the bureau of the budget of the federal government;
(F) "Sale" includes the renting or providing of space to a dealer or vendor without a permanent location in this state or to persons who are registered for sales tax at other locations in this state but who are making sales at this location on a less than permanent basis;
(G) "Sale" includes the processing of photographic film into negatives and/or photographic prints for resale;
(35) "Sales price" means the total amount for which a taxable service or tangible personal property is sold, including any services that are a part of the sale of tangible personal property, 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 cash discounts allowed and taken on sales shall not be included; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether such additional consideration shall be known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it shall be known; provided, that "sales price" does not include any federal retail excise tax imposed by §§ 4051-4053 of the Internal Revenue Code of 1954, as amended, or as such tax may be amended hereafter; and provided further, that "sales price" does not include federal excise tax on diesel fuel purchased for off-road use as provided in title 67, chapter 3, whether or not such tax is required by law to be passed on to the ultimate consumer;
(36) [Effective July 1, 2006. See the Compiler's Notes] "School art supplies" means an item commonly used by a student in a course of study for artwork. For purposes of this chapter, the following is an all-inclusive list of "school art supplies":
(A) Clay and glazes;
(B) Paintbrushes for artwork;
(C) Paints, acrylic, tempora, and oil;
(D) Sketch and drawing pads; and
(E) Watercolors;
(37) [Effective July 1, 2006. See the Compiler's Notes] "School computer supplies" means an item commonly used by a student in a course of study in which a computer is used. For purposes of this chapter, the following is an all-inclusive list of "school computer supplies":
(A) Computer printers;
(B) Computer storage media, diskettes, compact disks;
(C) Handheld electronic schedulers, except devices that are cellular phones;
(D) Personal digital assistants, except devices that are cellular phones; and
(E) Printer supplies for computers, printer paper, printer ink;
(38) [Effective July 1, 2006. See the Compiler's Notes] "School instructional materials" means written material commonly used by a student in a course of study as a reference and to learn the subject being taught. For purposes of this chapter, the following is an all-inclusive list of "school instructional materials":
(A) Reference books;
(B) Reference maps and globes;
(C) Textbooks; and
(D) Workbooks;
(39) [Effective July 1, 2006. See the Compiler's Notes] "School supplies" means an item used by a student in a course of study. For purposes of this chapter, the following is an all-inclusive list of "school supplies":
(A) Binders;
(B) Blackboard chalk;
(C) Book bags;
(D) Calculators;
(E) Cellophane tape;
(F) Compasses;
(G) Composition books;
(H) Crayons;
(I) Erasers;
(J) Folders, expandable, pocket, plastic and manila;
(K) Glue, paste, and paste sticks;
(L) Highlighters;
(M) Index cards;
(N) Index card boxes;
(O) Legal pads;
(P) Lunch boxes;
(Q) Markers;
(R) Notebooks;
(S) Paper, loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper;
(T) Pencil boxes and other school supply boxes;
(U) Pencil sharpeners;
(V) Pencils;
(W) Pens;
(X) Protractors;
(Y) Rulers;
(Z) Scissors; and
(AA) Writing tablets;
(40) "Service address" means a location of telecommunication equipment from which the telecommunication services are originated or at which telecommunication services are received by the consumers. In the event this may not be a defined location, as in the case of maritime systems, air to ground systems and the like, "service address" means the location of the consumer's primary use of the telecommunication equipment as defined by the telephone number, authorization codes, or location in Tennessee where bills are sent. The recharge of a prepaid telephone calling card shall be subject to sales tax if the customer's service address is located in Tennessee;
(41) [Effective July 1, 2006. See the Compiler's Notes] "Sport or recreational equipment" means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use;
(42) "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; provided, that temporary storage pending shipping or mailing of tangible personal property to non-residents of Tennessee shall not constitute a taxable use in Tennessee;
(43) "Tangible personal property" means and includes personal property, which may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses. Notwithstanding any other provision of law to the contrary, any sale of a prepaid telephone calling card and/or the recharge of the card shall be deemed the sale of tangible personal property, subject only to such taxes as are imposed on the sale of tangible personal property. "Tangible personal property" does not include signals broadcast over the airwaves. "Tangible personal property" does not include stocks, bonds, notes, insurance, or other obligations or securities. "Tangible personal property" does not include utility poles, anchors, guys, and conduits, and such facilities shall be deemed to be real property for the purposes of this chapter;
(44)
(A) "Telecommunications service" means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. "Telecommunications service" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing, without regard to whether such service is referred to as voice over Internet protocol services or is classified by the federal communications commission as enhanced or value added;
(B) "Telecommunications service" does not include:
(i) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by electronic transmission to a purchaser, where such purchaser's primary purpose for the underlying transaction is the processed data or information;
(ii) Installation or maintenance of wiring or equipment on acustomer's premises;
(iii) Tangible personal property;
(iv) Advertising including, but not limited to, directory advertising;
(v) Billing and collection services provided to third parties;
(vi) Internet access service;
(vii) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service, as defined in 47 U.S.C. § 522(6), and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3;
(viii) Ancillary services; or
(ix) Digital products delivered electronically, including, but not limited to, software, downloaded music or reading materials;
(45) "Textbook" means a printed book that contains systematically organized educational information that covers the primary objectives of a course of study. A textbook may contain stories and excerpts of popular fiction and nonfiction writings, but does not include a book primarily published and distributed for sale to the general public. The term "textbook" does not include a computer or computer software;
(46)
(A) "Use" means and includes the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business;
(B) "Use" means the coming to rest in Tennessee of catalogues, advertising fliers, or other advertising publications distributed to residents of Tennessee in interstate commerce; provided, that the labeling, temporary storage, and other handling in connection with mailing or shipping of same in interstate commerce to non-residents of Tennessee shall not constitute a taxable use in Tennessee; and
(C) "Use" also means and includes the consumption of any of the services and amusements taxable under this chapter;
(47) "Use tax" includes the "use," "consumption," "distribution" and "storage" as defined in this section; and
(48) "Workbook" means a printed booklet that contains problems and exercises in which a student may directly write answers or responses to the problems and exercises. The term "workbook" does not include a computer or computer software.
(b) [Deleted by 2004 amendment by ch. 782.]

T.C.A. § 67-6-102

Amended by 2021 Tenn. Acts, ch. 285,s 2, eff. 4/30/2021.
Acts 1947, ch. 3, §§ 2, 4; C. Supp. 1950, §§ 1248.51, 1248.53 (Williams, §§ 1328.23, 1328.25); Acts 1951, ch. 3, § 1; modified; 1955, ch. 51, §§ 1-5, 10; 1955, ch. 242, §§ 1, 8; impl. am. Acts 1959, ch. 9, § 14; 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, ch. 556, § 1; 1968, ch. 601, § 1; 1969, ch. 95, § 1; 1970, ch. 390, § 1; 1971, ch. 117, § 1; 1971, ch. 149, § 1; 1971, ch. 151, § 1; 1972, ch. 528, § 1; 1972, ch. 709, § 1; 1972, ch. 731, § 1; 1972, ch. 757, § 1; 1972, ch. 769, § 1; 1973, ch. 179, § 1; 1974, ch. 778, § 1; 1976, ch. 442, § 1; 1977, ch. 42, § 1; 1977, ch. 250, § 1; 1978, ch. 565, §§ 1, 2; 1978, ch. 789, §§ 1, 2; 1978, ch. 921, § 1; 1979, ch. 352, § 1; 1980, ch. 602, § 1; 1981, ch. 229, § 1; T.C.A. (orig. ed.), §§ 67-3002, 67-3017; Acts 1984 (Ex. Sess.), ch. 13, §§ 2, 3, 5; 1984, ch. 523, § 1; 1984, ch. 762, §§ 1-3; 1984, ch. 959, § 1; 1984, ch. 987, § 1; 1985, ch. 25, § 3; 1985, ch. 332, §§ 1, 2; 1985, ch. 389, § 2; 1985, ch. 406, §§ 1, 3, 4, 6, 7; 1985, ch. 416, § 1; 1985, ch. 456, § 1; 1985, ch. 469, §§ 1, 2; 1986, ch. 567, § 1; 1986, ch. 815, § 1; 1986, ch. 924, § 1; 1987, ch. 185, § 1; 1987, ch. 295, § 1; 1987, ch. 428, § 3; 1988, ch. 572, § 1; 1988, ch. 789, § 1; 1989, ch. 312, § 5; 1991, ch. 29, § 1; 1991, ch. 41, § 2; 1991, ch. 80, § 1; 1991, ch. 503, § 3; 1992, ch. 917, § 1; 1992, ch. 1007, §§ 1, 2; 1993, ch. 51, §§ 1-3; 1993, ch. 68, §§ 1, 2; 1993, ch. 409, §§ 1, 2; 1994, ch. 552, § 2; 1994, ch. 852, § 1; 1995, ch. 168, §§ 1, 2; 1995, ch. 185, § 1; 1995, ch. 384, § 1; 1995, ch. 544, §§ 3, 4; 1996, ch. 721, §§ 1, 2; 1996, ch. 729, § 1; 1996, ch. 739, § 1; 1996, ch. 770, § 1; 1996, ch. 922, § 1; 1997, ch. 385, § 1; 1997, ch. 451, §§ 1, 2; 1998, ch. 732, § 1; 1998, ch. 976, § 1; 1998, ch. 1038, § 1; 1998, ch. 1057, §§ 1, 2; 1999, ch. 413, §§ 1, 3; 1999, ch. 423, § 4; 1999, ch. 484, §§ 1-3; 2002, ch. 708, § 1; 2002, ch. 719, §§ 1-4; 2002, ch. 856, § 5b; 2003, ch. 9, § 1; 2003, ch. 357, §§ 3-16; 2004, ch. 782, §§ 1-6, 15; 2004, ch. 924, § 17; 2004, ch. 959, §§ 1-4, 59, 60, 68; 2005, ch. 311, §§ 1, 2; 2005, ch. 398, § 2; 2005, ch. 499, §§ 7, 19, 20, 48-50, 52-55, 60, 68; 2006, ch. 975, § 1; 2006, ch. 1019, §§ 33, 34, 44.
This section is set out more than once. See also T.C.A. s 67-6-102.