67-6-387 - Computer software for personal use. - Tennessee Statutes

67-6-387. Computer software for personal use.

There is exempt from the use tax imposed by this chapter the fabrication of computer software by a person, or its direct employee, for the person's own use and consumption. The exemption provided by this section shall not apply to computer software that is fabricated by any agent of the person using the computer software unless the agent is also a direct employee of the person. For purposes of this section, the term “direct employee” means an employee to whom the person is obligated to issue a federal form W-2, wage and tax statement, and with respect to whom the person has responsibility for withholding taxes under the Federal Insurance Contributions Act, compiled in 26 U.S.C. §§ 3101-3126, or such other entity or affiliate that upon petition to the commissioner has been approved as having that responsibility under this section.

[Acts 2003, ch. 357, § 55; 2004, ch. 959, § 68; 2005, ch. 311, § 1; Acts 2007, ch. 602, §§ 51, 100; 2009, ch. 530, § 54.]