Tennessee Code Annotated
Tenn. Code Ann. § 67-6-903 (2026)
Sourcing of items manufactured in the state - Limited liability of lessor - Sale or repair of tangible personal property or software
✓ current as of May 2026
- (a) The sale, including lease or rental, of a product made from a place of business within the physical limits of this state where delivery is made by the seller or lessor to a purchaser or lessee within the physical limits of this state, or to a carrier or United States postal service location for delivery to a place within the physical limits of this state, is sourced to the seller's or lessor's place of business in this state.
- (b) The location of where the purchaser may take or use the product is not determinative of where the sale is sourced.
- (c) For the sale of a product made from a place of business within the physical limits of this state that is delivered by the seller to the purchaser or the purchaser's designee outside the physical limits of this state or to a carrier for delivery to a place outside the physical limits of this state, the sale is not sourced to this state.
- (d) For a lease or rental of property, excluding transportation equipment as defined in § 67-6-902(b)(1), delivered to the lessee or renter in this state that requires recurring periodic payments, the periodic payments made subsequent to the first payment that cover periods where the primary property location is no longer within the physical limits of this state are not sourced to this state. The lessor is not liable for the tax imposed under this chapter on the periodic payments that cover periods where the primary property location is no longer in this state. The primary property location is determined in accordance with § 67-6-902(b)(2)(B).
- (e) For the sale of repairing of tangible personal property or computer software; laundering or dry cleaning of tangible personal property; and installing of tangible personal property that remains tangible personal property after installation; and installing of computer software, made from a place of business within the physical limits of this state where the serviced tangible personal property or computer software is delivered by the seller to the purchaser or the purchaser's designee outside the physical limits of this state or to a carrier for delivery to a place outside the physical limits of this state, the sale is not sourced to this state.
Added by 2023 Tenn. Acts, ch. 377, s 30, eff. 7/1/2024.
Notes of Decisions
Cited in 1
case, 2001–2001 · leading case: In re All Assessments, 67 S.W.3d 805 (Tenn. Ct. App. 2001).
In re All Assessments, 67 S.W.3d 805 (Tenn. Ct. App. 2001). “Under T.C.A. § 67-6-903®, fixed rates of allowable depreciation costs are established for valuing the nine categories of locally assessed business and industrial personal property.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.