Can sales and use tax credit be allowed for a trade-in of an old manufactured home on the purchase of a new manufactured home?

Yes, if a used manufactured home is traded in for a new manufactured home, only the difference in the prices is taxable. Additionally, if the used manufactured home is then sold to a consumer, and it can be documented that the used home was already charged Tennessee sales tax in a prior transaction, the sale is exempt. Therefore, if a used manufactured home is traded in on another used home on which tax was previously paid, no tax is due on the net.