(a) Notwithstanding § 55-17-109 or § 55-17-114, the transactions authorized by this section are permitted.
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Terms Used In Tennessee Code 55-17-123

  • 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
  • Dealer: means every person engaged in the business of buying, selling or exchanging vehicles of a type required to be registered and who has an established place of business for that purpose in this state. See Tennessee Code 55-8-101
  • 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
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Motor vehicle: means any self-propelled motor-driven vehicle of the type and kind required to be registered and titled under chapter 1 of this title, and includes, but is not limited to, "motor vehicle" as defined in §. See Tennessee Code 55-17-102
  • Person: means every natural person, partnership, corporation, association, trust, estate, or any other legal entity. See Tennessee Code 55-17-102
  • 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
  • Vehicle: means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, excepting devices used exclusively upon stationary rails or tracks. See Tennessee Code 55-8-101
(b) As used in this section:

(1) “Line-make” means motor vehicles of the same trade name for which separate dealership franchises are granted;
(2) “Producer” means any person, including related business entities, that manufactures or assembles new and unused motor vehicles in this state, and qualifies for the tax credit provided in § 67-4-2109(b)(2)(B)(i) on June 17, 2005; and
(3) “Related business entity” means any person that has more than thirty-five percent (35%) direct or indirect ownership interest in a producer on June 17, 2005, or is a one hundred percent (100%) owned subsidiary of a person who owns a one hundred percent (100%) interest in a producer on June 17, 2005.
(c)

(1)

(A) A producer of motor vehicles may lease no more than four (4) motor vehicles, and provide any maintenance ancillary to the motor vehicles, of the same line-make as the producer or any related business entity produces, to each eligible employee of the producer, under no less than a twelve-month closed-end lease; provided, that the total number of vehicles so leased to such eligible employees in this state shall not exceed the producer’s total number of eligible employees in this state.
(B) For purposes of this section, an “eligible employee” shall include:

(i) Each full-time employee, as defined in § 67-6-394(c), on producer’s payroll; and
(ii) Each employee, as defined under § 414(n) of the Internal Revenue Code ( 26 U.S.C. § 414(n) ), or ( 29 U.S.C. § 1002(6) ) as such section exists as of April 23, 2013, of the producer who regularly works onsite at one (1) of the producer’s facilities in this state.
(2) Any motor vehicle that is subject to a lease permitted under this subsection (c) shall be purchased by the producer from any dealer of the same line-make as the leased motor vehicle.
(d)

(1) At the termination of any lease permitted under subsection (c), the motor vehicle may be held by the producer for no longer than ten (10) business days and shall be sold through a dealer that sells new and unused motor vehicles of the same line-make, to an eligible employee of the producer. Each eligible employee shall be entitled to purchase no more than one (1) motor vehicle per twelve-month period and must title the vehicle in the employee’s name and shall retain the motor vehicle for no less than one hundred eighty (180) days from date of purchase.
(2) Any motor vehicle not purchased by an eligible employee may be sold directly to any same line-make franchised dealer in the state that processes the vehicles and serves as a designated return point by the producer for the motor vehicles. Each same line-make franchised dealer that acts as a designated return point shall be entitled to purchase not more than thirty (30) motor vehicles of the same line-make returned from an employee lease per month and is prohibited from selling the vehicle wholesale for ninety (90) days from the time the vehicle is purchased by the franchised dealer.
(3) Thereafter, those motor vehicles not purchased shall be sold at an auction limited to any franchised dealer that sells new or unused motor vehicles of the same line-make as those being auctioned.
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