Public Chapter 139 (2021), effective July 1, 2021, specifically exempts from sales and use tax online access to continuing education courses that:
- Meet regulatory requirements for licensed individuals; and
- Are offered by organizations exempt by the Internal Revenue Service (IRS) under 26 U.S.C. § 501(c)(3) or (c)(6).
Organizations that are not exempt federally under the above provisions must continue to collect sales and use tax on the sale of pre-recorded online continuing education courses. Please see SUT-66-Online-Courses and SUT-181 – Live Online Courses for more information on the taxability of online courses.
Reference: Tenn. Code Ann. § 67-6-329(a). Public Chapter 139 (2021).