Tennessee Code Annotated
Tenn. Code Ann. § 67-6-329 (2026)
Miscellaneous exemptions
✓ current as of May 2026
- (a) The sale at retail, the use, the consumption, the distribution and the storage for use or consumption in this state of the following tangible personal property is specifically exempted from the tax imposed by this chapter:
- (1) "Gasoline" upon which a privilege tax per gallon is paid, and not refunded; except that premixed engine fuel containing gasoline and oil, produced for use in two-cycle engines and not for use in the propulsion of an aircraft, vessel or any other vehicle, that is sold in containers of one gallon (1 gal.) or less, is not exempt from the tax imposed by this chapter;
- (2) Motor fuel taxed per gallon by chapter 3, part 2 of this title;
- (3) Textbooks and workbooks;
- (4) All sales made to the state or any county or municipality within the state;
- (5) Liquified gas, compressed natural gas, and hydrogen gas taxed by chapter 3, part 11 of this title;
- (6) [Deleted by 2023 amendment.]
- (7) Parking privileges sold by colleges, universities, technical institutes or state colleges of applied technology to students at those institutions;
- (8) Materials used for the lining or protective coating of railroad tank cars and any charges made for the installation or repair of the linings or protective coatings;
- (9) Chemicals and supplies used in air or water pollution control facilities for pollution control purposes;
- (10) Periodicals printed entirely on newsprint or bond paper and distributed no less frequently than monthly and advertising supplements or other printed matter distributed with the periodicals;
- (11) The sale of United States and Tennessee flags sold by a nonprofit organization;
- (12) Industrial materials and explosives for future processing, manufacture or conversion into articles of tangible personal property for resale where the industrial materials and explosives become a component part of the finished product or are used directly in fabricating, dislodging, or sizing;
- (13) Materials, containers, labels, sacks, bags or bottles used for packaging tangible personal property when the property is either sold in the containers, sacks, bags or bottles directly to the consumer or when such use is incidental to the sale of the property for resale;
- (14) Film, including negatives, used in the business of printing, or provided to a business of printing to obtain the services of the business; or typesetting used in the business of printing and materials necessary for the typesetting, or typesetting, or materials necessary for typesetting provided to a business of printing to obtain the services of the business;
- (15) Home communication terminals, remote control devices, and other similar equipment purchased on or after January 1, 2000, by a video programming service provider and held for sale or lease to its subscribers;
- (16) Utility poles, anchors, guys, and conduits;
- (17) Aircraft used for and owned by a person providing flight training;
- (18) Prepared food, as defined in § 67-6-102, when sold pursuant to programs authorized by a federal, state or local government entity or by the school governing body, that provide meals for public or private school students in grades kindergarten through twelve (K-12). This subdivision (a)(18) shall not be interpreted to exempt a public or private school or school support group from paying sales or use taxes on the purchase price of prepared food or food and food ingredients, as defined by § 67-6-102, purchased for resale by the school or a school support group at fund raisers, sports events and the like pursuant to § 67-6-229, or to exempt sales from any micro market or vending machine, including micro markets and vending machines located on the premises of public or private schools, from the sales tax;
- (19) Copies of hospital records, as defined in § 68-11-302, sold or otherwise provided to an attorney, agent or other authorized representative acting in a lawsuit on behalf of any hospital that has received a determination of exemption as provided in § 67-6-322(e);
- (20) OEM headquarters company vehicles; and
- (21) Online access to continuing education courses that meet regulatory requirements for licensed individuals and that are offered by organizations that have received a determination of exemption from the internal revenue service, pursuant to 26 U.S.C. § 501(c)(3) or (c)(6).
- (b) Charges for the following services are exempt from the tax imposed by this chapter:
- (1) Coin-operated telephone service;
- (2) Automatic teller machine (ATM) service. The seller of the ATM service shall be deemed the user and consumer of telecommunication services necessary to deliver the ATM service; and
- (3) Wire transfer or other services provided by any corporation defined as a financial institution under § 67-4-2004. The seller of the wire transfer or other services shall be deemed the user and consumer of telecommunication services necessary to deliver the wire transfer service.
- (c) No provision of this section shall be construed to amend or repeal § 67-6-301.
- (d) The sale at retail, use, consumption, distribution and storage for use or consumption in this state of the following specified digital goods is specifically exempted from the tax imposed by this chapter:
- (1) Any specified digital good, if the sale, lease, licensing and use of the equivalent in a tangible form is exempt from taxation under this chapter; and
- (2) Specified digital goods provided without charge for less than permanent use.
Amended by 2023 Tenn. Acts, ch. 377, s 27, eff. 7/1/2024.
Amended by 2024 Tenn. Acts, ch. 859,s 5, eff. 1/1/2025.
Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch. 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012; Acts 1984, ch. 734, § 1; 1984, ch. 761, § 2; 1985, ch. 25, §§ 1, 5, 7; 1985, ch. 332, §§ 1, 2; 1985, ch. 352, §§ 1-3; 1986, ch. 517, § 1; 1986, ch. 565, §§ 1-3; 1987, ch. 32, § 1; 1987, ch. 255, § 1; 1987, ch. 416, § 1; 1988, ch. 561, § 1; 1989, ch. 478, § 1; 1990, ch. 856, § 1; 1990, ch. 1091, § 3; 1991, ch. 41, § 1; 1991, ch. 488, § 1; 1992, ch. 659, § 1; 1993, ch. 2, § 1; 1993, ch. 409, § 3; 1995, ch. 229, § 1; 1995, ch. 256, § 1; 1995, ch. 343, § 1; 1996, ch. 1003, § 1; 1998 , ch. 694, § 2; 2003 , ch. 357, §§ 44 - 48; 2004 , ch. 782, § 10; 2004 , ch. 959, §§ 14 - 16, 68; 2005 , ch. 311, §§ 1, 2; 2005 , ch. 499, §§ 21, 51, 70, 71; 2007 , ch. 602, §§ 51, 93, 94, 151; 2008 , ch. 1106, §§ 13, 20; 2009 , ch. 530, §§ 35, 115; 2011 , ch. 72, § 1; 2013 , ch. 473, § 26; 2014 , ch. 908, § 11; 2016 , ch. 1070, § 1; 2019 , ch. 473, § 1; 2021 , ch. 139, § 1; 2021 , ch. 289, § 3.
Notes of Decisions
Cited in 12
cases, 1986–2019 · leading case: Lowe's Companies, Inc. v. Cardwell, 813 S.W.2d 428 (Tenn. 1991).
Lowe's Companies, Inc. v. Cardwell, 813 S.W.2d 428 (Tenn. 1991). “This case involves the constitutionality of a 1987 amendment to T.C.A. § 67-6-329, which purported to make an addition to the list of tangible personal property that is exempt from sales and use taxes imposed by T.”
Newsweek, Inc. v. Celauro, 789 S.W.2d 247 (Tenn. 1990). “Those issues are: *248 (1) Is the plaintiff's publication, Newsweek, a "newspaper" within the meaning of the word used in T.C.A. § 67-6-329(3) and defined in Department of Revenue Regulation Sec.”
Sears, Roebuck & Co. v. Woods, 708 S.W.2d 374 (Tenn. 1986). “The appellant also points to TCA § 67-6-329(10) and alleges that the legislature intended to create an exemption for such materials.”
Penske Truck Leasing Co. v. Huddleston, 795 S.W.2d 669 (Tenn. 1990). “Plaintiff’s basic argument is that fuel costs are covered under a separate agreement and are exempt from sales and use taxes under T.C.A. § 67-6-329(a), which specifically exempts gasoline sales, upon which a privilege tax per gallon has been paid, and motor vehicle fuel, on…”
S. Living, Inc. v. Celauro, 789 S.W.2d 251 (Tenn. 1990). “Utilizing this classification the State insists that the "newspaper" exemption of T.C.A. § 67-6-329(a)(3) is revealed as furthering a vital public interest: "The immediate and timely dissemination of information to the public.”
Illinois Cent. R.R. v. Tennessee Dep't of Revenue, 969 F. Supp. 2d 892 (M.D. Tenn. 2013). “See Tenn. Code Ann. § 67-6-329 (a)(2). A two-step inquiry is used to evaluate a claim of discrimination in violation of § 11501(b)(4).”
Jain v. Univ. of Tennessee at Martin, 670 F. Supp. 1388 (W.D. Tenn. 1987). “Tenn.Code Ann. § 67-6-329(13); Fly Affidavit at 6.”
Union Pac. R.R. Co. v. Tenn. Dep't of Revenue, 800 F.3d 262 (6th Cir. 2015). “See Tenn.Code Ann. § 67-6-329(a)(2). Following a bench trial, the district court agreed, holding that the State’s imposition of the sales and use taxes on the railroad’s purchase and use of diesel fuel was discriminatory under § 11501(b)(4) of the 4-R Act.”
Walker's, Inc. v. Farr, 338 S.W.3d 887 (Tenn. Ct. App. 2010). “The exemption for packaging materials is currently at section 67-6-329(a)(13) (2009 Supp.).”
Magnavox Consum. Elec. v. King, 707 S.W.2d 504 (Tenn. 1986). “The trial court determined the payments under the lease were subject to the use tax but reduced the amount of tax owing since 34 per cent of the payments represented fuel consumption and T.C.A., § 67-6-329 exempts fuel from the use tax.”
Edwin B. Raskin Co. v. Johnson (Tenn. Ct. App. 1998). “It results that the course is conducted and controlled by the City (for the purposes of Tenn. Code Ann. § 67-6-330 (13)); the -6- sales of tangible personal property to Raskin are in fact sales to the City1 (for the purposes of Tenn.”
Check Printers, Inc. v. David Gerregano (2019). “Tenn. Code Ann. § 67-6-329 (a)(12). The blow-in reply cards were inserted into magazines so that consumers could remove the cards, fill them out, and return them to sign up for magazine subscriptions.”
— Tenn. Code Ann. § 67-6-329(1) — 1 case
Magnavox Consum. Elec. v. King, 707 S.W.2d 504 (Tenn. 1986). “The trial court determined the payments under the lease were subject to the use tax but reduced the amount of tax owing since 34 per cent of the payments represented fuel consumption and T.C.A., § 67-6-329 exempts fuel from the use tax.”
— Tenn. Code Ann. § 67-6-329(10) — 1 case
Sears, Roebuck & Co. v. Woods, 708 S.W.2d 374 (Tenn. 1986). “The appellant also points to TCA § 67-6-329(10) and alleges that the legislature intended to create an exemption for such materials.”
— Tenn. Code Ann. § 67-6-329(13) — 2 cases
Jain v. Univ. of Tennessee at Martin, 670 F. Supp. 1388 (W.D. Tenn. 1987). “Tenn.Code Ann. § 67-6-329(13); Fly Affidavit at 6.”
Edwin B. Raskin Co. v. Johnson (Tenn. Ct. App. 1998). “It results that the course is conducted and controlled by the City (for the purposes of Tenn. Code Ann. § 67-6-330 (13)); the -6- sales of tangible personal property to Raskin are in fact sales to the City1 (for the purposes of Tenn.”
— Tenn. Code Ann. § 67-6-329(3) — 1 case
Newsweek, Inc. v. Celauro, 789 S.W.2d 247 (Tenn. 1990). “Those issues are: *248 (1) Is the plaintiff's publication, Newsweek, a "newspaper" within the meaning of the word used in T.C.A. § 67-6-329(3) and defined in Department of Revenue Regulation Sec.”
— Tenn. Code Ann. § 67-6-329(a) — 2 cases
Lowe's Companies, Inc. v. Cardwell, 813 S.W.2d 428 (Tenn. 1991). “This case involves the constitutionality of a 1987 amendment to T.C.A. § 67-6-329, which purported to make an addition to the list of tangible personal property that is exempt from sales and use taxes imposed by T.”
Penske Truck Leasing Co. v. Huddleston, 795 S.W.2d 669 (Tenn. 1990). “Plaintiff’s basic argument is that fuel costs are covered under a separate agreement and are exempt from sales and use taxes under T.C.A. § 67-6-329(a), which specifically exempts gasoline sales, upon which a privilege tax per gallon has been paid, and motor vehicle fuel, on…”
— Tenn. Code Ann. § 67-6-329(a)(13) — 1 case
Walker's, Inc. v. Farr, 338 S.W.3d 887 (Tenn. Ct. App. 2010). “The exemption for packaging materials is currently at section 67-6-329(a)(13) (2009 Supp.).”
— Tenn. Code Ann. § 67-6-329(a)(2) — 2 cases
Illinois Cent. R.R. v. Tennessee Dep't of Revenue, 969 F. Supp. 2d 892 (M.D. Tenn. 2013). “See Tenn. Code Ann. § 67-6-329 (a)(2). A two-step inquiry is used to evaluate a claim of discrimination in violation of § 11501(b)(4).”
Union Pac. R.R. Co. v. Tenn. Dep't of Revenue, 800 F.3d 262 (6th Cir. 2015). “See Tenn.Code Ann. § 67-6-329(a)(2). Following a bench trial, the district court agreed, holding that the State’s imposition of the sales and use taxes on the railroad’s purchase and use of diesel fuel was discriminatory under § 11501(b)(4) of the 4-R Act.”
— Tenn. Code Ann. § 67-6-329(a)(3) — 4 cases
Newsweek, Inc. v. Celauro, 789 S.W.2d 247 (Tenn. 1990). “Those issues are: *248 (1) Is the plaintiff's publication, Newsweek, a "newspaper" within the meaning of the word used in T.C.A. § 67-6-329(3) and defined in Department of Revenue Regulation Sec.”
Lowe's Companies, Inc. v. Cardwell, 813 S.W.2d 428 (Tenn. 1991). “This case involves the constitutionality of a 1987 amendment to T.C.A. § 67-6-329, which purported to make an addition to the list of tangible personal property that is exempt from sales and use taxes imposed by T.”
Sears, Roebuck & Co. v. Woods, 708 S.W.2d 374 (Tenn. 1986). “The appellant also points to TCA § 67-6-329(10) and alleges that the legislature intended to create an exemption for such materials.”
S. Living, Inc. v. Celauro, 789 S.W.2d 251 (Tenn. 1990). “Utilizing this classification the State insists that the "newspaper" exemption of T.C.A. § 67-6-329(a)(3) is revealed as furthering a vital public interest: "The immediate and timely dissemination of information to the public.”
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