§ 67-6-322 — Religious, educational, and charitable institutions - Energy resource recovery facilities

(a) There is exempt from this chapter any sales or use tax upon tangible personal property, computer software, or taxable services sold, given, or donated to any: (1) Church, temple, synagogue or mosque; (2) University, including the Agricultural Foundation for Tennessee Tech, Inc.; (3) College; (4) School; (5) Orphanage; (6) Institution organized for the principal purpose of placing homeless children in foster homes; (7) Home for the aged; (8) Hospital; (9) Girls' club; (10) Boys' club; (11) Community health council; (12) Volunteer fire department; (13) Organ bank for transplantable tissue; (14) Organization whose primary objective is to promote the spiritual and recreational environment of members of the armed services of the United States, such as the United Service Organization as it is presently conducted; (15) Historical property owned by the state and operated by the historical commission or under the jurisdiction of the commission as authorized by § 4-11-108 ; (16) Nonprofit community blood bank; (17) Senior citizen service centers that meet the standards set by the department of disability and aging for eligibility to receive state funds; or (18) Nonprofit corporation whose primary function involves the annual organization, promotion, and sponsorship of a statewide talent and beauty pageant in which contestants compete for scholarships, awarded by such nonprofit corporation, as well as for the opportunity of being Tennessee's representative and contestant in an annual nationwide talent and beauty pageant with which such nonprofit corporation is affiliated. (b) In addition to the exempt institutions, organizations and historical properties described in subsection (a), there are also exempt such other institutions and organizations that have received a determination of exemption from the internal revenue service under the Internal Revenue Code § 501(c)(3), (c)(5) labor organizations, (c)(13) not-for-profit cemetery companies, and (c)(19) ( 26 U.S.C. § 501(c)(3), (5), (13) and (19) , respectively), and that are currently operating under it, and any war-time era veterans' organization that has received a determination of exemption from the internal revenue service under the Internal Revenue Code § 501(c)(4) ( 26 U.S.C. § 501(c)(4) ), and that is chartered by the United States congress. The exemption provided for herein does not apply to purchases of bingo cards or equipment by such organizations. (c) Any exemption granted under subsection (a) or (b) shall be limited to such institutions, organizations or historical properties that are not organized or operated for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual. (d) Any exemption granted under subsections (a)-(c) shall only apply to sales, gifts, or donations made directly to the exempt institution, organization or historical property. There shall be no exemption upon sales, gifts, or donations made to an independent contractor with any such exempt institution, organization or historical property. (e) No dealer shall sell, give or donate, and no user shall use, any tangible personal property under the claim that the tangible personal property is exempt from the sales or use tax levied by this chapter, where the exemption from taxation is claimed because the vendee or user is an educational, religious or charitable institution or organization or historical property and is entitled to an exemption as such institution or organization or historical property under subsections (a)-(d), unless the vendee or user shall have issued to it by the commissioner an exemption certificate declaring that such institution or organization or historical property is entitled to the exemption provided for by subsections (a)-(d); provided, that, in the case of a sale to a person who is not a resident or domiciliary of Tennessee, an exemption certificate issued by the commissioner is not required, if the dealer shall instead receive from such person a copy of a current and valid exemption from federal taxation under 26 U.S.C. § 501(c)(3) . Persons who have obtained an exemption certificate issued by the commissioner shall provide their vendors with a copy of the certificate or a fully completed streamlined sales tax certificate of exemption, which must include the exemption account number included on the certificate issued by the commissioner. The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption. In the case of a sale to a person who is not a resident or domiciliary of Tennessee, an exemption certificate issued by the commissioner is not required, if the dealer shall instead receive from such person a copy of a current and valid exemption from federal taxation under 26 U.S.C. § 501(c)(3) . The dealer shall maintain a copy of such exemption in the dealer's records to document that the purchaser was entitled to the exemption. (f) The commissioner is authorized to make final determination after hearing, if demanded, as to whether any institution or organization or historical property is entitled to the benefit of the exemption established by subsections (a)-(d). The commissioner is authorized to issue exemption certificates to institutions and organizations and historical properties that, in the commissioner's judgment, are entitled thereto. (g) No county having a metropolitan form of government is authorized under this chapter to levy any tax on the sale, purchase, use, consumption or distribution of steam and chilled water produced and distributed by an energy resource recovery facility operated in a county with a metropolitan form of government. (h) No tax exemption as permitted by this section applies to the purchase of bingo materials or supplies or equipment or cards. (i) There is also exempt from this chapter any sales or use tax upon tangible personal property or taxable services sold, given, or donated to any Tennessee historic property preservation or rehabilitation entity as defined in § 67-4-2004 . This exemption is subject to subsections (d), (e), and (f).

Legislative History

Amended by 2024 Tenn. Acts, ch. 688,s 152, eff. 7/1/2024. Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021. Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019. Acts 1949, ch. 110, § 1; 1949, ch. 237, § 1; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1967, ch. 364, § 1; 1967, ch. 369, § 1; 1968, ch. 531, § 1; 1973, ch. 263, § 1; 1975, ch. 125, § 1; 1975, ch. 270, §§ 1, 2; 1975, ch. 290, § 1; 1976, ch. 619, § 1; 1976, ch. 684, § 1; 1976, ch. 791, § 1; 1977, ch. 97, §§ 1, 2; 1977, ch. 125, § 1; 1979, ch. 63, §§ 1-4; 1979, ch. 168, § 1; T.C.A. (orig. ed.), § 67-3014; Acts 1984, ch. 779, § 1; 1985, ch. 389, § 1; 1985, ch. 436, §§ 1-4; 1986, ch. 687, § 2; 1986, ch. 872, § 1; 1996, ch. 1001, § 1; 1997 , ch. 212, § 1; 2003 , ch. 357, § 43; 2004, ch. 812, § 2; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2005, ch. 499, § 4; 2007 , ch. 602, §§ 51, 150; 2008 , ch. 1106, § 10; 2009 , ch. 530, § 35; 2010 , ch. 1134, § 2; 2011 , ch. 72, § 1; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.