When may a member of the Tennessee National Guard or reserve member of a uniformed service of the United States purchase a vehicle in Tennessee tax-free?

Members of the Tennessee National Guard and reserve members of a U.S. uniformed service are exempt from sales and use tax on the purchase or use of a motor vehicle registered in Tennessee when any of the following apply:

  • They are a member of a uniformed service and in active military service and stationed in this state or at a military base located partially in this state. Uniformed service members, National Guard members, and reserve members stationed in Tennessee on Title 10 orders qualify under this provision;
  • They are a Tennessee National Guard or reserve member of a uniformed service, a participant in the active guard and reserve program (AGR), and stationed in this state or a military base located partially in this state; or
  • They are a Tennessee National Guard or reserve member of a uniformed service and stationed in a combat zone.

Regarding members qualifying because of being stationed in a combat zone, the exemption applies from the date of the official military orders assigning the individual to a combat zone and expires 90 days after the effective date of official military orders releasing the individual from the combat zone.

The exemption only applies when the vehicle is titled and registered in the name of the qualifying individual, either alone or jointly with a spouse or lineal relative (e.g., grandparent, parent, child, or grandchild).

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