Local Option Sales and Use Tax

1. Law
2. Tennessee Code
3. Taxes and Licenses
4. Privilege and Excise Taxes
5. Local Tax Surcharge
6. Local Option Sales and Use Tax

1. Notwithstanding that a local government may levy a surcharge under this chapter on the local option sales and use tax pursuant to chapter 6, part 7 of this title for use in accordance with § 67-4-3205, and in addition to the exemptions authorized by § 67-4-3203(a), the following items shall be exempt from the surcharge:
   1. Water sold to or used by manufacturers and taxed at the state rate of one percent (1%) as authorized in § 67-6-206;
   2. Sales of tangible personal property to a common carrier for use outside the state;
   3. Video programming services as defined in § 67-6-102;
   4. Telecommunication services;
   5. Specified digital products as defined in § 67-6-102; and
   6. Sales of tangible personal property when obtained from any vending machine or device and taxed at the local rate of two and one quarter percent (2.25%) as authorized in § 67-6-702(h).
2. Any surcharge on the local option sales and use tax shall apply only to the first one thousand six hundred dollars ($1,600) on the sale or use of any single article of personal property as defined in § 67-6-702(d).
3. [Deleted by 2020 amendment.]
4. Except as otherwise provided in subsection (a), any surcharge on the local option sales and use tax shall apply equally and uniformly to all sales of tangible personal property, services, and other items subject to the tax, and shall be subject to the same exemptions provided in chapter 6 of this title as are applicable to the tax.

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