Is there a sales and use tax exemption for automobile adaptive equipment?

Yes, automobile adaptive equipment (AAE) necessary to ensure safe operation of an automobile is exempt from sales and use tax when sold or given to an honorably discharged disabled veteran who has a service-connected disability under 38 U.S.C. § 3901.  The seller will need to maintain a copy of a completed VA Form 10-1394 or 21-4502.  For more information, see Tenn. Code Ann. § 67-6-353(a). Please see important notice 07-22 for a discussion of mobility enhancing equipment.