Tenn. Comp. R. & Regs. 1320-04-05-.21 - INSTALLATION SALES
(1) Tangible
personal property which is sold and attached to real property, but which is
ordinarily removed by the owner or tenant, such as window air conditioning
units, curtain and drapery rods, gasoline pumps, etc., shall be deemed to be
personal property. Charges for installing tangible personal property as a part
of and in connection with the sale of tangible personal property are subject to
the business tax if the property continues to be personal property after
installation. The tax is due from the person making the sale of personal
property regardless of whether the property is installed by that person or by
another person acting for him. The tax shall be computed based on the dominant
business activity of the person making the sale of the personal property.
Persons making charges for installing personal property not as a part of and in
connection with the sale of the tangible personal property shall be taxed under
classification four (4) of the business tax .
(2) Charges made for installing tangible
personal property which becomes a part of real property, and which is not
ordinarily removed by the owner or tenant, such as carpeting, electrical
wiring, etc., shall be deemed to be made by a contractor, and the person
installing such property shall pay the appropriate Business Tax as a
contractor.
Notes
Authority: T.C.A. ยงยง67-5822 and 67-101.
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