Sales & Use Tax

• I purchase hemp from area farmers. I then sell this hemp and other products to customers. Do I need to collect sales tax from my customers?
• What are the tax implications of growing hemp in Tennessee?
• Can I grow hemp in Tennessee?
• I grow hemp in Tennessee. I then take the hemp and produce creams, oils, and other products from the hemp. Are these products subject to state tax?
• Is there a sales and use tax exemption for an automobile purchased with the Veterans Affairs Automobile Grant?
• Is there a sales and use tax exemption for automobile adaptive equipment?
• Is there a sales and use tax exemption for mobility enhancing equipment?
• Is a side-by-side Class 1 vehicle, used principally for the purpose of producing agricultural products, exempt from sales tax if purchased with an agricultural exemption certificate?
• Is a mini-truck eligible to be purchased exempt from sales tax with an agricultural exemption certificate?
• Are artists required to collect and remit sales tax on the sale of their artwork?
• If a Tennessee artist sells his/her artwork throughout the state at different events or temporary locations, how should he/she collect and remit sales tax?
• How should a food truck or other mobile vendor register for sales tax purposes, if the vendor travels to different jurisdictions to sell its product?
• Is a dealer’s purchase of packaging materials, including pallets, that are used to package tangible personal property sold in a retail sale or sale for resale exempt from sales and use tax?
• Are pallets used in packaging subject to sales tax when they accompany products that are sold in retail sales directly to consumers?
• Are pallets and shipping materials used exclusively for transporting or used only within a warehouse or a distribution facility subject to sales tax?
• Can I verify a Tennessee resale or other exemption certificate?
• What are some items that are not eligible for agricultural exemption?
• I’ve heard that for an original purchase of farm equipment to be exempt, it must cost more than $250. Do the repair part and/or labor on the farm machinery and equipment have to exceed $250 also?
• I do not qualify as a farmer or nursery operator. Can I buy seeds, seedlings, and plants that produce food or fiber for human or animal consumption free of tax?
• I am not a farmer, but, in the past, I have purchased items such as wood shavings and bales of hay to use in my small horse stable and rabbit cages. Will I be able to purchase these items without payment of sales tax?
• My wife and I own a couple of horses stabled in another county. We ride only on the weekends. A couple of years ago, we bought a horse trailer tax-exempt. We are planning to buy another trailer next year. Will it be exempt?
• I just paid $300 for tarpaulins and plastic to cover my round bales or hay stacked in a field. Can those items be purchased tax-exempt?
• Are flat bed trailers used principally to transport seed, fertilizer, etc., to the farm; farm commodities to market; or transport or move farm equipment from farm to farm exempt from the sales tax as farm equipment?
• I am farmer buying corral panels.These come separately in 12-foot lengths.The panels sell for $25 each.The gates come in 8-foot lengths and sell for $40 each. Can the panels and gates be purchased tax-exempt?
• Are distilleries required to pay liquor-by-the-drink tax on alcohol served for consumption on their premises?
• Are distilleries allowed to sell their own products or provide free samples of their products without purchasing (buying back) the product from a licensed wholesaler?
• If a distillery fails to comply with the legal requirement to purchase from a licensed wholesaler their own product that they offer for sale or distribute as free samples, will it be liable for gallonage tax on that product?
• What can be reported on Tennessee tax return ALC 101 (Distiller’s Alcoholic Beverage Tax Return)?
• Can a farmer or nursery operator buy a lawnmower that will be used to mow his or her lawn tax exempt on an agricultural exemption certificate?
• Can a nursery operator or sod farm purchase seeds used to grow sod sold by the nursery operator or sod farm exempt from sales tax on an agricultural exemption certificate?