Tennessee Code Annotated
Tenn. Code Ann. § 67-6-203 (2026)
Property used, consumed, distributed or stored
✓ current as of May 2026
- (a) A tax is levied at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 of the purchase price of each item or article of tangible personal property when the tangible personal property is not sold, but is used, consumed, distributed, or stored for use or consumption in this state; provided, that there shall be no duplication of the tax.
- (b) A tax, which shall be paid by the distributor, is also levied at the rate set out in subsection (a) on the value of catalogues, advertising fliers, or other advertising publications distributed to residents of Tennessee; provided, that this tax shall not be duplicative of a sales or use tax otherwise collected on such publications. "Distributor" does not include the commercial printer or mailer of any such catalogues, advertising fliers, or other advertising publications; nor shall nexus to a taxpayer be established through a relationship with a commercial printer or mailer having a presence in Tennessee; nor shall the commercial printer or mailer have the obligation of collecting any such tax.
- (c) Notwithstanding any other provision of law to the contrary, the one-half percent (0.5%) increase in the rate of the sales tax from five and one-half percent (5.5%) to six percent (6%) imposed by chapter 529 of the Public Acts of 1992 in this section and §§ 67-6-202, 67-6-204, 67-6-205, and 67-6-221 shall remain in effect until changed by the general assembly. All revenue generated from such increases shall be deposited in the state general fund and earmarked for education purposes as provided in § 67-6-103(c)(2).
- (d) A tax is levied at the rate of the tax levied on the sale of tangible personal property at retail by § 67-6-202 on the repairing of tangible personal property or computer software, the laundering or dry cleaning of tangible personal property, the installing of tangible personal property that remains tangible personal property after installation, and the installing of computer software, when such repair, cleaning, or installation occurs at a place of business outside this state and the serviced tangible personal property or computer software is delivered by the seller to the purchaser or the purchaser's designee within the physical limits of this state or to a carrier for delivery to a place inside the physical limits of this state for use or consumption in this state.
Amended by 2023 Tenn. Acts, ch. 377, s 26, eff. 7/1/2024.
Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021.
Acts 1947, ch. 3, § 3; C. Supp. 1950, § 1248.52 (Williams, § 1328.24); Acts 1955, ch. 51, §§ 7, 8; 1955, ch. 242, § 6; 1959, ch. 15, § 2; 1963, ch. 38, §§ 3, 5; 1963, ch. 172, § 3; 1965, ch. 335, § 2; 1971, ch. 78, § 1; 1971, ch. 117, § 2; 1972, ch. 653, § 1; 1973, ch. 239, § 1; 1974, ch. 675, § 1; 1975, ch. 316, § 1; 1976, ch. 466, §§ 1, 3; 1982, ch. 610, § 1; 1982, ch. 646, § 1; 1983, ch. 378, § 1; 1983, ch. 402, § 1; T.C.A. (orig. ed.), § 67-3003(b); Acts 1984 (Ex. Sess.), ch. 8, § 2; 1985, ch. 356, § 3; 1991, ch. 29, § 2; 1992, ch. 529, § 2; 1993, ch. 190, §§ 1, 2; 2002, ch. 856, § 4c; 2003 , ch. 357, §§ 4, 22; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007 , ch. 602, §§ 51, 71, 140, 187; 2009 , ch. 530, §§ 35, 38; 2011 , ch. 72, §§ 1, 4; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.
Notes of Decisions
Cited in 23
cases, 1987–2015 · leading case: Bellsouth Advert. & Publ'g Co. v. Johnson, 100 S.W.3d 202 (Tenn. 2003).
Bellsouth Advert. & Publ'g Co. v. Johnson, 100 S.W.3d 202 (Tenn. 2003). “— (a) A tax is levied at the rate of six percent (6%) of the cost price of each item or article of tangible personal property when the same is not sold but is used, consumed, distributed, or stored for use or consumption in this state; provided, that there shall be no…”
CAO Holdings, Inc. v. Trost, 333 S.W.3d 73 (Tenn. 2010). “” Tenn.Code Ann. § 67-6-203(a) (Supp.2004).”
JC Penney Co., Inc. v. Olsen, 796 S.W.2d 943 (Tenn. 1990). “T.C.A. § 67-6-203 fixes the tax on property used, consumed, distributed or stored: A tax is levied at [a fixed percentage] of the cost price of each item or article of tangible personal property when the same is not sold but is used, consumed, distributed, or stored for use or…”
Sec. Fire Prot. Co. v. Huddleston, 138 S.W.3d 829 (Tenn. Ct. App. 2003). “Accordingly, there could be no imposition of the Tennessee use tax under Tenn.Code Ann. §§ 67-6-203, 210 or the contractor’s use statute codified at Tenn.”
Am. Cyanamid Co. v. Huddleston, 908 S.W.2d 396 (Tenn. Ct. App. 1995). “It is arguable that the delivery of the sample drugs by physicians to patients is a use, consumption or distribution taxed by T.C.A. §§ 67-6-203(a) and 211, above. However, if taxed to the manufacturer upon delivery to the physician, a retaxation of the same property upon…”
Wylie Steel Fabricators, Inc. v. Johnson, 179 S.W.3d 509 (Tenn. Ct. App. 2005). “ctee, or any other person, or whether the title holder of such property would be subject to pay the sales or use tax, except where the title holder is a church, private nonprofit college or university and the tangible personal property is for church, private nonprofit college or…”
McCurry Expeditions, LLC v. Richard H. Roberts, 461 S.W.3d 912 (Tenn. Ct. App. 2014). “2 Issue Presented The Department of Revenue raises one issue on appeal, which is taken, and slightly restated, from its brief: Whether the trial court erred in ruling that the driving and storage of a motor home in Tennessee by the Appellees, were not taxable under Tennessee’s…”
Hearthstone, Inc. v. Moyers, 809 S.W.2d 888 (Tenn. 1991). “Tenn.Code Ann. § 67-6-203 (emphasis added).”
Volunteer Val-Pak v. Celauro, 767 S.W.2d 635 (Tenn. 1989). “That holding by the trial judge disposed of the case in favor of the taxpayer, but the trial judge also held that the transactions of taxpayer upon which the commissioner had assessed a sales tax, were subject to the use tax under T.C.A. § 67-6-203 “notwithstanding any…”
Am. Airlines, Inc. v. Johnson, 56 S.W.3d 502 (Tenn. Ct. App. 2000). “” Tenn.Code Ann. § 67-6-203(a) (1994). The Act contained a separate provision governing the taxation of aviation fuel.”
Sodexho Mgmt., Inc. v. Johnson, 174 S.W.3d 174 (Tenn. Ct. App. 2004). “uses tangible personal property in the performance of his contract, or to fulfill contract or subcontract obligations, whether the title to such property be in the contractor, subcontractor, contractee, subcontractee, or any other person, or whether the title holder of such…”
Thomas Nelson, Inc. v. Olsen, 723 S.W.2d 621 (Tenn. 1987). “” T.C.A. § 67-6-203 [formerly T.C.A. § 67-3003(b)].”
— Tenn. Code Ann. § 67-6-203(a) — 8 cases
Bellsouth Advert. & Publ'g Co. v. Johnson, 100 S.W.3d 202 (Tenn. 2003). “— (a) A tax is levied at the rate of six percent (6%) of the cost price of each item or article of tangible personal property when the same is not sold but is used, consumed, distributed, or stored for use or consumption in this state; provided, that there shall be no…”
CAO Holdings, Inc. v. Trost, 333 S.W.3d 73 (Tenn. 2010). “” Tenn.Code Ann. § 67-6-203(a) (Supp.2004).”
Am. Cyanamid Co. v. Huddleston, 908 S.W.2d 396 (Tenn. Ct. App. 1995). “It is arguable that the delivery of the sample drugs by physicians to patients is a use, consumption or distribution taxed by T.C.A. §§ 67-6-203(a) and 211, above. However, if taxed to the manufacturer upon delivery to the physician, a retaxation of the same property upon…”
Wylie Steel Fabricators, Inc. v. Johnson, 179 S.W.3d 509 (Tenn. Ct. App. 2005). “ctee, or any other person, or whether the title holder of such property would be subject to pay the sales or use tax, except where the title holder is a church, private nonprofit college or university and the tangible personal property is for church, private nonprofit college or…”
Am. Airlines, Inc. v. Johnson, 56 S.W.3d 502 (Tenn. Ct. App. 2000). “” Tenn.Code Ann. § 67-6-203(a) (1994). The Act contained a separate provision governing the taxation of aviation fuel.”
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