Tennessee § 67-6-334 - Energy for residential use.

§ 67-6-334. Energy for residential use.

There are exempt from the tax levied by this chapter gas, electricity, fuel oil, coal and other energy fuels sold directly to the consumer for residential use. As used in this section, “sold directly to the consumer for residential use” includes the furnishing of gas, electricity, fuel oil, coal or other energy fuels to single private residences, including the separate private units of apartment houses and other multiple dwellings, actually used for residential purposes, that are separately metered or measured, regardless of the fact that a person other than the resident: Is contractually bound to the supplier for the charges; Actually pays the charges; or Is billed for the charges. Use of electricity and other energy fuels in hotel or motel units by transient occupants does not constitute residential use. In any instance in which the owner of a residential unit fails to disclose to an electric utility that the unit is being used for a purpose that would render the sale of electricity taxable, such owner shall be liable for any tax, penalty or interest due thereon, rather than the electric utility. The exemption provided in this section shall not apply to energy fuels sold over the counter at the location of the seller except as follows: Propane sold over the counter in cylinders with a capacity of one hundred pounds (100 lbs.) or more directly to the consumer for residential use shall be exempt from the tax levied by this chapter; and Kerosene sold at retail through dispensers that have been designed and constructed to prevent delivery directly from the dispenser into a vehicle fuel supply tank shall be exempt from the tax levied by this chapter. The sales and use tax imposed by this chapter on sales of natural gas, propane, and electricity sold directly to the consumer for non-residential use applies only to charges on a consumer's monthly bill for metered usage, a monthly minimum bill, a monthly customer charge, or a monthly demand charge. Acts 1985, ch. 356, § 9; 2002, ch. 836, § 1; 2007, ch. 602, § 39; 2008, ch. 1106, § 12; 2018, ch. 813, § 2. Amendments. The 2018 amendment added (c). Effective Dates. Acts 2018, ch. 813, § 3. April 27, 2018. Attorney General Opinions. The sale of electricity to owners of overnight rental cabins is subject to state sales tax; T.C.A. § 67-6-334(b)(1) does not provide an exemption for owners of overnight rental cabins, OAG 02-036 (3/27/02). The use of electricity by transient occupants at overnight rental cabins where no business activity occurs on the premises does not constitute residential use under T.C.A. § 67-6-334(b)(2) and, therefore, those sales of electricity are taxable, OAG 02-036 (3/27/02).