67-6-385 - Sales to common carriers for use outside state Certificate Records Exceptions. [Effective July 1, 2011.] - Tennessee Statutes

67-6-385. Sales to common carriers for use outside state Certificate Records Exceptions. [Effective July 1, 2011.]

(a)  Notwithstanding other provisions of this chapter, except as provided in this section, no tax is imposed with respect to sales of tangible personal property to common carriers for use outside this state.

(b)  Persons seeking to make such purchases exempt from tax shall apply to the commissioner for a certificate as provided in § 67-6-528 to obtain the exemption. The common carrier must give a copy of the certificate or a fully completed Streamlined Sales Tax certificate of exemption to each dealer from which it intends to make purchases exempt from tax.

(c)  If a common carrier fails to keep records as required by the commissioner to establish that property purchased exempt from tax was not used in this state but was removed from this state for use and consumption outside this state, then the common carrier shall be liable for tax on the property at the full rate provided by § 67-6-203 regardless of whether the carrier had previously obtained a certificate as provided by this section; provided, that the carrier shall be given credit for any tax paid on the property pursuant to chapter 4, part 23 of this title.

(d)  This section does not apply to sales of food and food ingredients, candy, dietary supplements, prepared food, alcoholic beverages, tobacco and fuel.

[Acts 2003, ch. 357, § 53; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007, ch. 602, §§ 51, 154; 2009, ch. 530, § 35.]