Out-of-State LLCs that have purchased a vehicle, boat, or airplane with an out-of-state registration are subject to Tennessee sales/use tax if the item purchased is used in Tennessee. The fact that an LLC was formed or is located outside this state and owns the vehicle does not create an exemption from tax for vehicles primarily used in Tennessee.
If you have believed claims that you can buy a vehicle tax free through the creation of an out-of-state limited liability company, you are encouraged to come forward and request a voluntary disclosure agreement.
If a taxpayer has already been contacted by the Department, the taxpayer is no longer eligible for a voluntary disclosure agreement.
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