Previously, sales of warranty or service contracts covering the repair or maintenance of qualified tax-exempt agricultural machinery were subject to tax. Is this still the case?

Yes. The sale of extended warranty or maintenance contracts continues to be subject to sales tax
even if the contracts cover the repair or maintenance of machinery and equipment that qualify for
the agricultural exemption. The Department views warranty or maintenance contracts as an
independent intangible right to receive service that is taxable under Tenn. Code Ann. § 67-6-208.

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