Tenn. Comp. R. & Regs. 1320-05-01-.51 - RELIGIOUS, CHARITABLE, EDUCATIONAL AND OTHER NON-PROFIT INSTITUTIONS
(1) Sales made to individuals or
organizations for the use and benefit of institutions which may themselves be
exempt from the Sales or Use Tax, are subject to the Sales or Use
Tax.
(2) Sales of tangible personal
property to churches or other religious, charitable, educational, scientific or
any other similar institution for the purpose of resale when such organizations
are not regularly engaged in the business of selling tangible personal
property, are subject to the Sales and Use Tax, and the church or other
institution shall not be required to charge or be liable for any tax on such
sales. In the event, however, any church or other similar institution is
regularly engaged in the business of selling tangible personal property or
furnishing any taxable service, it shall qualify with the Department as a
dealer and be liable for any tax due on such sales.
(3) Religious, charitable or educational
institutions entitled to an exemption from sales or use tax upon tangible
personal property sold, given or donated to them will be issued a letter of
exemption upon application to the commissioner. When purchasing goods and
services from suppliers, the exempt institution must furnish its supplier with
a properly completed copy of the letter or valid exemption under 26 U.S.C.
501(c)(3) pursuant to T.C.A. 67-6-322(e). The exempt institution should retain
the original exemption letter with the lower portion left uncompleted for copy
making purposes. For the purpose of these rules, "letter of exemption" and
"exemption letter" shall have the same meaning as "certificate of exemption"
and "exemption certificate"
Notes
Authority: T.C.A. ยงยง 67-1-102, 67-6-322, and 67-6-402.
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