(a) Private communications services shall be exempt from the tax imposed by this chapter, when such services are utilized for communications with a computer or telecommunications center located in this state, by a taxpayer that has qualified for the headquarters tax credit provided for in § 67-6-224, or by an affiliate of such taxpayer.

Terms Used In Tennessee Code 67-6-389

  • Business: includes occasional and isolated sales or transactions of aircraft, vessels, or motor vehicles between corporations and their members or stockholders and also includes such transactions caused by the merger, consolidation, or reorganization of corporations. See Tennessee Code 67-6-102
  • Commissioner: means and includes the commissioner of revenue or the commissioner's duly authorized assistants. See Tennessee Code 67-6-102
  • Computer: means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions. See Tennessee Code 67-6-102
  • Dealer: means every person, as used in this chapter, including Model 1, Model 2, and Model 3 sellers, where the context requires, who:
    (A) Manufactures or produces tangible personal property for sale at retail, for use, consumption, distribution, or for storage to be used or consumed in this state. See Tennessee Code 67-6-102
  • Person: includes any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, any governmental agency whose services are essentially a private commercial concern, or other group or combination acting as a unit, in the plural as well as the singular number. See Tennessee Code 67-6-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Sale: includes the furnishing of any of the things or services taxable under this chapter. See Tennessee Code 67-6-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Tangible personal property: includes electricity, water, gas, steam, and prewritten computer software. See Tennessee Code 67-6-102
  • Use tax: includes the "use" "consumption" "distribution" and "storage" as defined in this section. See Tennessee Code 67-6-102
(b) For purposes of this section, “affiliate” means the same as defined in § 48-103-102.
(c) Persons seeking to make purchases of private communications exempt from tax shall apply to the commissioner for an authorization declaring that the purchaser is entitled to the exemption. In order to obtain the exemption, qualified purchasers shall provide a copy of the authorization or a fully completed Streamlined Sales Tax certificate of exemption to each dealer from which it intends to make exempt purchases. If a person purchases exempt private communications and the private communications services are not utilized for communications with a computer or telecommunications center located in this state, by a purchaser that has qualified for the headquarters tax credit provided for in § 67-6-224, or by an affiliate of the purchaser, then the purchaser shall be liable for tax at a rate applicable to the retail sale of the private communications service.
(d) The exemption in subsection (a) shall apply for so long as such qualified headquarters facility is located in this state.
(e) Any taxpayer that moves tangible personal property into this state in conjunction with establishing a qualified headquarters facility, as defined in § 67-6-224, and qualifying for the headquarters facility tax credit provided in § 67-6-224, shall be exempt from any sales and use tax liability that arises solely as a result of moving the property into the state; provided, that the tangible personal property was previously used by the taxpayer in the operation of its business.
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