Tennessee law provides an exemption from use tax for a personal watercraft if the watercraft will be used solely for personal use, it has a fair market value that is less than $10,000 at the time it is imported into this state, and the taxpayer can provide proof that the taxpayer is now a bona fide resident of Tennessee. The taxpayer must submit to the Department, or to the county clerk when appropriate, proof that the taxpayer properly registered the vessel in the other state.
If the value of the watercraft is more than $10,000 when it is brought into Tennessee, use tax will be due on that amount. A credit is allowed for any sales or use tax that the taxpayer already paid to another state if proof of payment is provided to the Department.
Reference: Tenn. Code Ann. § 67-6-210(c).