SUT-38 - Repair Labor Purchased by an Entity that Leases Tangible Personal Property

An entity that is engaged in leasing tangible personal property to others cannot purchase repair labor on a resale certificate. “Sale for resale” does not include a sale of services to a dealer for use in the business of leasing tangible personal property. A dealer that leases tangible personal property is considered the end user and consumer of services used in conducting business.

Reference: Tenn. Code Ann. § 67-6-102(83)(B)(ii).

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