(a)

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Terms Used In Tennessee Code 67-6-301

  • farm products: means forage and sod crops. See Tennessee Code 1-3-105
  • 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
  • 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
  • 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
  • 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
  • Sale: includes the furnishing of any of the things or services taxable under this chapter. 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
  • 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
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) The gross proceeds derived from the sale in this state of livestock, nursery stock, poultry and other farm or nursery products, in any calendar year, directly from a farmer or nurseryman, are exempt from the tax levied by this chapter, if fifty percent (50%) or more of such products are grown or produced in the calendar year by such farmer or nurseryman. If less than fifty percent (50%) of such products in any calendar year are grown or produced by the farmer or nurseryman, then only the gross proceeds of the sale in this state of the products actually grown or produced by such farmer or nurseryman shall be exempt from the tax levied by this chapter. When sales of livestock, nursery stock, poultry, or other farm or nursery products are made to consumers, other than as provided herein, they are not exempt from the tax imposed by this chapter.
(2) As used in subdivision (a)(1), unless the context otherwise requires, “sale directly from a farmer or nurseryman,” includes, but is not limited to, the sale of farm or nursery products directly from a farmer to a consumer via an online nonprofit farmers’ market; provided, that:

(A) An amount equal to the consumer’s full purchase price is transmitted by the consumer or the online farmers’ market to the farmer; and
(B) The cooperative or other organizing body of the online farmers’ market levies no fee or other charge for facilitating the sales other than virtual booth rental fees periodically assessed to participating farmers in order to pay the actual costs incurred by the cooperative or organizing body in operating the online farmers’ market.
(b) It is specifically provided that the use tax, as defined herein, shall not apply to livestock and livestock products, to poultry and poultry products, to farm, nursery and agricultural products, when produced by the farmer or nurseryman and used by the nurseryman and members of the nurseryman’s family.
(c)

(1) Each and every agricultural commodity sold by any person, other than a producer, to any other person, who purchases not for direct consumption, but for the purpose of acquiring raw products for use or for sale in the process of preparing, finishing, or manufacturing such agricultural commodity for the ultimate retail consumer trade, shall be and is exempt from any and all provisions of this chapter, including payment of the tax applicable to the sale, storage, use, transfer, or any other utilization or handling thereof, except when such agricultural commodity is actually sold as a marketable or finished product to the ultimate consumer, and in no case shall more than one (1) tax be exacted.
(2) “Agricultural commodity,” for purposes of this section, means horticultural, poultry, and farm products, livestock and livestock products, and harvested trees.
(d) The gross proceeds derived from the sale in this state of products that are grown or produced in a community garden, as defined in § 43-24-102, in any calendar year, directly from a representative of the community garden, are exempt from the tax levied by this chapter.
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