Tennessee § 67-4-3204 - Local option sales and use tax.

§ 67-4-3204. Local option sales and use tax.

Notwithstanding that a local government may levy a surcharge under this chapter on the local option sales and use tax pursuant to chapter 6, part 7 of this title for use in accordance with § 67-4-3205, and in addition to the exemptions authorized by § 67-4-3203(a), the following items shall be exempt from the surcharge: Water sold to or used by manufacturers and taxed at the state rate of one percent (1%) as authorized in § 67-6-206; Sales of tangible personal property to a common carrier for use outside the state; Video programming services as defined in § 67-6-102; Telecommunication services; Specified digital products as defined in § 67-6-102; and Sales of tangible personal property when obtained from any vending machine or device and taxed at the local rate of two and one quarter percent (2.25%) as authorized in § 67-6-702(h). Any surcharge on the local option sales and use tax shall apply only to the first one thousand six hundred dollars ($1,600) on the sale or use of any single article of personal property as defined in § 67-6-702(d). [Deleted by 2020 amendment.] Except as otherwise provided in subsection (a), any surcharge on the local option sales and use tax shall apply equally and uniformly to all sales of tangible personal property, services, and other items subject to the tax, and shall be subject to the same exemptions provided in chapter 6 of this title as are applicable to the tax. Acts 2017, ch. 181, § 27; 2020, ch. 759, § 9. Compiler's Notes. Acts 2017, ch. 181, § 1 provided that the act, which enacted this part, shall be known and may be cited as the “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy (IMPROVE) Act” or the “2017 Tax Cut Act.” Amendments. The 2020 amendment deleted (c), which read: “Any surcharge on the local option sales and use tax shall not apply to sales made by dealers with no location in this state who choose to pay local tax pursuant to § 67-6-702(f) at the rate set forth in that section.” Effective Dates. Acts 2017, ch. 181, § 38. April 26, 2017. Acts 2020, ch. 759, § 18. October 1, 2020 at 12:01 a.m.