(a) A state governmental entity shall not contract to acquire goods or services, and no person may contract to supply goods or services to a state governmental entity, unless, prior to, or contemporaneous with, entering into the contract, the person contracting to supply goods or services and its affiliates register with the department of revenue to collect and remit the sales and use tax levied by the Retailers’ Sales Tax Act, compiled in title 67, chapter 6. Nothing in this section shall require a person or affiliate to register if the person or affiliate does not make sales to customers in the state of tangible personal property or services, which if the sales occurred wholly within the state, would be taxable under title 67, chapter 6. This section is specifically applicable to foreign persons, notwithstanding the fact that such foreign persons or their affiliates may not otherwise be legally obligated to collect and remit such tax.

Terms Used In Tennessee Code 12-3-306

  • Chief procurement officer: means the person holding the position established in §. See Tennessee Code 12-3-201
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means any duly authorized and legally binding written agreement for the procurement of goods and services. See Tennessee Code 12-3-201
  • Goods: means all personal property, including, but not limited to, supplies, equipment, materials, printing, and insurance. See Tennessee Code 12-3-201
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Procurement: means buying, purchasing, renting, leasing, or otherwise acquiring of any goods or services. See Tennessee Code 12-3-201
  • Procurement commission: means the state procurement commission, as established in §. See Tennessee Code 12-3-201
  • Services: means all services and agreements obligating the state, except services for highway and road improvements governed by title 54 and design and construction services governed by title 4, chapter 15. See Tennessee Code 12-3-201
  • 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
  • State governmental entity: means any agency, authority, board, commission, department, or office within the executive, legislative or judicial branches of state government or any autonomous state agency, authority, board, commission, council, department, office, or institution of higher education. See Tennessee Code 12-3-201
(b) For purposes of this section:

(1) “Affiliates” means each and every affiliate of the person contracting with the state or other state entities, as the term “affiliate” is defined in § 48-103-102;
(2) “Other state entities” has the same meaning as in § 12-4-601; and
(3) “Person” or “persons” has the same meaning as in § 67-6-102.
(c) The commissioner of revenue and the chief procurement officer shall develop procedures for compliance with this section with approval by the procurement commission.
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