§ 12-3-306 — Registration with the department of revenue to collect and remit sales and use taxes - Development of procedures for compliance

(a) A state governmental entity shall not contract to acquire goods or services, and no person may contract to supply goods or services to a state governmental entity, unless, prior to, or contemporaneous with, entering into the contract, the person contracting to supply goods or services and its affiliates register with the department of revenue to collect and remit the sales and use tax levied by the Retailers' Sales Tax Act, compiled in title 67, chapter 6. Nothing in this section shall require a person or affiliate to register if the person or affiliate does not make sales to customers in the state of tangible personal property or services, which if the sales occurred wholly within the state, would be taxable under title 67, chapter 6. This section is specifically applicable to foreign persons, notwithstanding the fact that such foreign persons or their affiliates may not otherwise be legally obligated to collect and remit such tax. (b) For purposes of this section: (1) "Affiliates" means each and every affiliate of the person contracting with the state or other state entities, as the term "affiliate" is defined in § 48-103-102 ; (2) "Other state entities" has the same meaning as in § 12-4-601 ; and (3) "Person" or "persons" has the same meaning as in § 67-6-102 . (c) The commissioner of revenue and the chief procurement officer shall develop procedures for compliance with this section with approval by the procurement commission.

Legislative History

Amended by 2013 Tenn. Acts, ch. 403,s 18, eff. 7/1/2013.