Tennessee Code 67-6-311 – Construction machinery transferred between parent and subsidiary corporations
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Terms Used In Tennessee Code 67-6-311
- Construction machinery: means machinery designed for and used exclusively in the preparation for, assembly, fabrication, and finishing of permanent improvements to real estate. See Tennessee Code 67-6-102
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Sale: includes the furnishing of any of the things or services taxable under this chapter. 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
There is exempt from the tax imposed by this chapter the sale, transfer, or lease of construction machinery, as defined in § 67-6-102, to or from a parent corporation and a wholly-owned subsidiary to the extent that sales or use tax at the full rate provided by Tennessee law has been previously paid on such machinery by such parent or subsidiary corporation.