STH-18 - Application of Sales Tax Holiday to Backordered or Out-of-Stock Items

If a customer wants to order a certain tax-free item during the holiday and it is not in stock, the item remains tax-free upon delivery. In other words, backlogs and backorders outside the buyer’s control will not affect the exempt status of tax-free items. Intentionally delayed sales are taxable.

Reference: Tenn. Code Ann. § 67-6-393(7).

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