(a) A credit shall be granted in the manner provided in subsection (b) for the amount of the sales tax due on motor vehicle manufacturer’s incentive payments included in the sales price of motor vehicles sold at retail.
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Terms Used In Tennessee Code 67-6-341

  • 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
  • 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
  • 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
(b) The credit shall apply such that sales tax is owed on the sales price of the motor vehicle less any otherwise taxable motor vehicle manufacturer’s incentive payment associated with the sale.
(c) For purposes of this section, unless the context otherwise requires:

(1) “Motor vehicle manufacturer’s incentive payment” means the amount due to the retailer pursuant to a motor vehicle manufacturer’s incentive purchase program; and
(2) “Motor vehicle manufacturer’s incentive purchase program” means a program sponsored by a motor vehicle manufacturer pursuant to which an amount, whether paid in money, credit, or otherwise, is received by a retailer from a motor vehicle manufacturer based upon the unit price of motor vehicles sold at retail that requires the retailer to reduce the sales price of the product to the purchaser without the use of a manufacturer’s coupon or redemption certificate.
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