Tenn. Comp. R. & Regs. 1320-05-01-.09 - CASUAL AND ISOLATED SALES
(1) The Sales Tax
does not apply to casual and isolated sales by persons who are not, or who have
been deemed by the Commissioner not to be engaged in the business of selling
tangible personal property or furnishing any of the services subject to the
Sales or Use Tax. The Sales Tax, likewise, does not apply to sales of tangible
personal property or taxable services not normally sold by a dealer and which
has been used by the dealer prior to the sale; this exemption however, does not
apply to any sales of tangible personal property or taxable services bought
upon a resale certificate for resale by those persons who hold themselves out
as engaged in business, notwithstanding the fact that the sales may be few and
infrequent. The exemption also does not apply to the casual and isolated sale
of aircraft , vessels and motor vehicles which are required to be registered by
the State of Tennessee or the U.S. Government.
(2) Bona fide residents of other states who
move to and become residents of Tennessee, and cause to be imported into
Tennessee their personal automobiles, personal effects, and household furniture
acquired prior to the change of residence, shall not be liable for the Use Tax
on these items. This does not apply to any property imported for business
use.
(3) Manufacturers, processors,
wholesalers, or jobbers engaged in the business of distributing tangible
personal property or furnishing taxable services, who sell primarily other than
at retail, are not deemed to be making casual or isolated sales when they sell
such tangible personal property or services to purchasers for use or
consumption, notwithstanding that sales at retail may comprise a small fraction
of their total business.
(4)
Irregular sales of tangible personal property or regular sales of tangible
personal property made only during a temporary sales period occurring on a
semiannual or less frequent basis are casual and isolated sales not subject to
tax. If a person other than a public or private school, grades K-12, or school
group has or conducts more than two (2) sales periods during a calendar year,
such person shall be liable for sales tax on all sales during that calendar
year. Public and private schools, grades K-12, and school support groups having
or conducting more than two (2) sales periods during a calendar year, having
purchased tangible personal property or taxable services without the payment of
tax, shall be liable for the use tax based on the purchase price of the items
or services purchased during that calendar year. A sales period shall be
presumed to be temporary if it is of 30 consecutive days duration or less.
Persons making purchases of tangible personal property or taxable services for
resale during temporary semiannual or annual sales periods shall provide
provide their vendor with a written statement indicating that the items or
services will be sold during a semiannual or annual sales period.
Notes
Authority: T.C.A. ยงยง 67-1-102(1), 67-6-102(13)(H) and 67-6-402.
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