If I move to Tennessee from another state and register my personal watercraft at the local county clerk, am I subject to Tennessee use tax?

Tennessee law provides an exemption from use tax for your personal watercraft if the watercraft will be used solely for personal use, it has a fair market value that is less than $10,000 at the time it is imported into this state, and you can provide proof that you are now a bona fide resident of Tennessee. You must submit to the Department, or to the county clerk when appropriate, proof that you properly registered your vessel in the other state.

If the value of the watercraft is more than $10,000 when you bring it into Tennessee, use tax will be due on that amount.  You are allowed a credit for any sales or use tax that you already paid to another state, if you are able to provide proof of the tax paid.

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