67-6-341 - Credit for sales tax due on motor vehicle incentive payments. - Tennessee Statutes

67-6-341. Credit for sales tax due on motor vehicle incentive payments.

(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.

(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 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; and

     (2)  “Motor vehicle manufacturer's incentive payment” means the amount due to the retailer pursuant to a motor vehicle manufacturer's incentive purchase program.

[Acts 2007, ch. 602, § 40.]