Tenn. Comp. R. & Regs. 1320-05-01-.61 - UNDERTAKERS AND FUNERAL DIRECTORS

(1) Undertakers and Funeral Directors are engaged in the business of selling tangible personal property, and shall report, collect, and pay the tax on their sales of caskets, grave vaults, clothing, flowers, and similar articles. Receipts from services rendered, such as embalming, hearse service, family cars, and the like, are not subject to the Sales or Use Tax.

(2) In order for the dealer to claim any or all of the exemptions set out herein, the vendor shall furnish an invoice showing the amount of sales or tangible personal property and the amount of sales of services, properly segregated, to the customer. Failure to furnish an invoice showing the segregation to the customer at the time of the sale will subject the total amount to the Sales or Use Tax.

(3) Where undertakers and funeral directors furnish items of tangible personal property, such as flowers and clothing, without a specific charge indicated on an invoice to the customer, the undertaker or funeral director shall be considered the user and consumer, and shall pay the appropriate Sales or Use Tax on all tangible personal property furnished for the services.

(4) Equipment, embalming fluids, and any other supplies purchased to be consumed or used by the undertaker or funeral director in performing his services are subject to the Sales or Use Tax.

Notes

Tenn. Comp. R. & Regs. 1320-05-01-.61

Original rule certified June 7, 1974. Amendment filed June 28, 2000; effective September 11, 2000. Public necessity rule filed February 29, 2008; effective through August 12, 2008. Amendment filed March 31, 2008; effective July 29, 2008.

Authority: T.C.A. §§ 67-1-102, 67-6-329, 67-6-402, and Chapter 602, § 93, of the Public Acts of 2007.