(a) Notwithstanding that a local government may levy a surcharge under this chapter on the local option sales and use tax pursuant to chapter 6, part 7 of this title for use in accordance with § 67-4-3205, and in addition to the exemptions authorized by § 67-4-3203(a), the following items shall be exempt from the surcharge:

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Terms Used In Tennessee Code 67-4-3204

  • Local government: means :
    (A) Any county in this state, including any county having a metropolitan or consolidated form of government, having a population in excess of one hundred twelve thousand (112,000), according to the 2010 federal census or any subsequent federal census. See Tennessee Code 67-4-3201
  • 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
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Sales: means all gross receipts of the taxpayer not allocated under this part. See Tennessee Code 67-4-2004
  • State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof. See Tennessee Code 67-4-2004
  • Surcharge: means a tax, or combination of taxes, levied by a local government pursuant to this part. See Tennessee Code 67-4-3201
(1) Water sold to or used by manufacturers and taxed at the state rate of one percent (1%) as authorized in § 67-6-206;
(2) Sales of tangible personal property to a common carrier for use outside the state;
(3) Video programming services as defined in § 67-6-102;
(4) Telecommunication services;
(5) Specified digital products as defined in § 67-6-102; and
(6) Sales of tangible personal property when obtained from any vending machine or device and taxed at the local rate of two and one quarter percent (2.25%) as authorized in § 67-6-702(g).
(b) Any surcharge on the local option sales and use tax shall apply only to the first one thousand six hundred dollars ($1,600) on the sale or use of any single article of personal property as defined in § 67-6-702(d).
(c) Except as otherwise provided in subsection (a), any surcharge on the local option sales and use tax shall apply equally and uniformly to all sales of tangible personal property, services, and other items subject to the tax, and shall be subject to the same exemptions provided in chapter 6 of this title as are applicable to the tax.
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