Terms Used In Tennessee Code > Title 67 > Chapter 6 > Part 3 - Exemptions

• Advertising agency: means a business, more than eighty percent (80%) of whose gross receipts in the previous taxable year were, or in the first taxable year are reasonably projected to be, from charges for advertising services. See Tennessee Code 67-6-102
• Advertising materials: means tangible personal property or its digital equivalent produced to advertise a product, service, idea, concept, issue, place or thing, including, but not limited to, brochures, catalogs and point-of-purchase materials, but not including preliminary artwork, and not including original sound recordings or video recordings produced by recording studios, television studios, video production studios or by or for advertising agencies, or masters produced from the original recordings, regardless of whether the original recordings or masters are produced in a tangible medium or a digital equivalent. See Tennessee Code 67-6-102
• Advertising services: means services rendered by an advertising agency to promote a product, service, idea, concept, issue, place or thing, including services rendered to design and produce advertising materials prior to the acceptance of the advertising materials for reproduction or publication, including, but not limited to:
  (i) Advice and counseling regarding marketing and advertising. See Tennessee Code 67-6-102
• Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
• Alcoholic beverages: means beverages that are suitable for human consumption and contain one-half of one percent (0. See Tennessee Code 67-6-102
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• 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
• Candy: means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. See Tennessee Code 67-6-102
• Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
• Clothing: means all human wearing apparel suitable for general use. See Tennessee Code 67-6-102
• Clothing accessories or equipment: means incidental items worn on the person or in conjunction with clothing. See Tennessee Code 67-6-102
• Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
• Coin-operated telephone service: means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate. 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
• Common carrier: means every person holding a certificate of public convenience and necessity as a common carrier from the interstate commerce commission or the United States department of transportation or its predecessor agency of the federal government. 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
• Computer software: means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. See Tennessee Code 67-6-102
• 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
• Contract: A legal written agreement that becomes binding when signed.
• 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.
• Data center: means a building or buildings, either newly constructed, expanded, or remodeled, housing high-tech computer systems and related equipment. 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
• Delivery charges: means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services, including, but not limited to, transportation, shipping, postage, handling, crating, and packing. See Tennessee Code 67-6-102
• Direct mail: includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. See Tennessee Code 67-6-102
• Drug: means a compound, substance or preparation, and any component of a compound, substance or preparation, other than food and food ingredients, dietary supplements or alcoholic beverages:
  (A) Recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them. See Tennessee Code 67-6-102
• Durable medical equipment: includes repair and replacement parts for the equipment. See Tennessee Code 67-6-102
• Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Tennessee Code 67-6-102
• Energy resource recovery facility: means a facility for the production of energy in the form of steam or chilled water from the controlled burning of combustible materials, including, but not limited to, coal, fuel oil, or natural gas, where such energy is to be used in a system for heating and cooling five (5) or more separate buildings. See Tennessee Code 67-6-102
• Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• farm products: means forage and sod crops. See Tennessee Code 1-3-105
• Final artwork: means tangible personal property or its digital equivalent that is suitable for use in producing advertising materials and includes, but is not limited to, photographs, illustrations, drawings, paintings, calligraphy, models and similar works that are used to produce advertising materials, but does not include preliminary artwork or original sound recordings or video recordings produced by recording studios, television studios, video production studios, or by or for advertising agencies, or masters produced from the original recordings regardless of whether the original recordings or masters are produced in a tangible medium or a digital equivalent. See Tennessee Code 67-6-102
• Food and food ingredients: means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. See Tennessee Code 67-6-102
• industrial machinery: includes repair parts, repair or installation services, and warranty or service contracts, purchased for such items used in the operation of a qualified data center. See Tennessee Code 67-6-102
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
• Layaway sale: means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the property. See Tennessee Code 67-6-102
• 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}
• Lease or rental: includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U. See Tennessee Code 67-6-102
• Legal tender: coins, dollar bills, or other currency issued by a government as official money. ^{Source: U.S. Mint}
• Livestock: means all equine as well as animals that are being raised primarily for use as food or fiber for human utilization or consumption including, but not limited to, cattle, sheep, swine, goats, and poultry. See Tennessee Code 1-3-105
• Micro market: means an unattended food establishment that:
  (A) Includes one (1) or more micro market displays. See Tennessee Code 67-6-102
• Mobility enhancing equipment: means equipment, including repair and replacement parts to the equipment, but does not include durable medical equipment that:
  (A) Is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle. See Tennessee Code 67-6-102
• nursery stock: means all trees, shrubs, or other plants, or parts of such trees, shrubs or other plants, grown or kept for, or capable of, propagation, distribution or sale on a commercial basis. See Tennessee Code 1-3-105
• OEM headquarters company: means an original equipment manufacturer that is engaged in the business of manufacturing motor vehicles and qualifies to receive the credit provided in §. 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
• Personal property: All property that is not real property.
• Personal property: includes money, goods, chattels, things in action, and evidences of debt. See Tennessee Code 1-3-105
• pollution control facilities: means any system, method, improvement, structure, device or appliance appurtenant thereto used or intended for the primary purpose of eliminating, preventing or reducing air or water pollution, or for the primary purpose of treating, pretreating, recycling or disposing of any hazardous or toxic waste, solid or liquid, when such pollutants are created as a result of fabricating or processing by one who engages in fabricating or processing as such person's principal business activity, which, if released without such treatment, pretreatment, modification or disposal, might be harmful, detrimental or offensive to the public and the public interest. See Tennessee Code 67-6-102
• Preliminary artwork: means tangible personal property and digital equivalents that are produced by an advertising agency in the course of providing advertising services solely for the purpose of conveying concepts or ideas or demonstrating an idea or message to a client and includes, but is not limited to concept sketches, illustrations, drawings, paintings, models, photographs, storyboards or similar materials. See Tennessee Code 67-6-102
• Prepared food: means :
  (i) Food sold in a heated state or heated by the seller. See Tennessee Code 67-6-102
• Prescription: means an order, formula or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this state. See Tennessee Code 67-6-102
• Property: includes both personal and real property. See Tennessee Code 1-3-105
• Protective equipment: means items for human wear, designed as protection of the wearer against injury or disease or as protection against damage or injury of other persons or property, but not suitable for general use. See Tennessee Code 67-6-102
• Rain check: means the seller allows a customer to purchase an item at a certain price at a later time, because the particular item was out of stock. See Tennessee Code 67-6-102
• Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
• required capital investment: means an increase of a business investment in real property, tangible personal property or computer software owned or leased in the state, valued in accordance with generally accepted accounting principles. See Tennessee Code 67-6-102
• Resale: means a subsequent, bona fide sale of the property, services, or taxable item by the purchaser. See Tennessee Code 67-6-102
• Retailer: means and includes every person engaged in the business of making sales at retail, or for distribution, use, consumption, storage to be used or consumed in this state or furnishing any of the things or services taxable under this chapter and every marketplace facilitator. See Tennessee Code 67-6-102
• Sale: includes the furnishing of any of the things or services taxable under this chapter. See Tennessee Code 67-6-102
• sale at retail: means any sale, lease, or rental for any purpose other than for resale, sublease, or subrent. See Tennessee Code 67-6-102
• Sales price: includes consideration received by the seller from third parties, if:
  (i) The seller actually receives consideration from a party other than the purchaser, and the consideration is directly related to a price reduction or discount on the sale. See Tennessee Code 67-6-102
• School art supplies: means an item commonly used by a student in a course of study for artwork. See Tennessee Code 67-6-102
• School computer supplies: means an item commonly used by a student in a course of study in which a computer is used. See Tennessee Code 67-6-102
• School supplies: means an item used by a student in a course of study. See Tennessee Code 67-6-102
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• Software: means computer software. See Tennessee Code 67-6-102
• Sport or recreational equipment: means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use. 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
• Storage: means and includes any keeping or retention in this state of tangible personal property for use or consumption in this state, or for any purpose other than sale at retail in the regular course of business. See Tennessee Code 67-6-102
• Tangible personal property: includes electricity, water, gas, steam, and prewritten computer software. See Tennessee Code 67-6-102
• Telecommunications service: includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing, without regard to whether such service is referred to as voice over internet protocol services or is classified by the federal communications commission as enhanced or value added. See Tennessee Code 67-6-102
• Tobacco: means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco. See Tennessee Code 67-6-102
• United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
• Use: means and includes the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business. 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
• Video programming services: means programming provided by or generally considered comparable to programming provided by a television broadcast station and shall include cable television services sold by a provider authorized pursuant to title 7, chapter 59, wireless cable television services (multipoint distribution service/multichannel multipoint distribution service) and video services provided through wireline facilities located at least in part in the public rights-of-way without regard to delivery technology, including internet protocol technology. See Tennessee Code 67-6-102
• written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
• Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105