Exclusions

(1) Generally, the receipts attributable to the following transactions, unless otherwise prohibited in the Business Tax Act, may be excluded in reporting gross sales on the Business Tax Returns: (a) Consumer taxes such as those passed on to the purchaser under the provisions of the Sales and Use Tax Law (Chapter 6, Title 67, T.C.A.) and the Liquor by the Drink Law (Chapter 1, Title 57, T.C.A.). (b) Receipts derived from medical and allied health services to human beings, except services of persons engaged in the business of making dentures and artificial teeth; religious, charitable, legal, educational, domestic, accounting services, architecture, engineering, surveying, and veterinary services; services rendered by non-profit membership organizations for the promotion of the interest of the members; educational and research agencies; public utilities as defined by T.C.A., §65-4-10; banks, building and loan associations, mortgage bankers, and other similar organizations; insurance companies and holding companies; operators of residential and non-residential buildings other than hotels, motels, or rooming houses; persons operating camps and trailer parks where charges are made for rental only of real property are exempt from the tax, but persons renting trailers to transients, or selling tangible personal property, or making separate charges for specific services furnished are not exempt; lessors of agricultural, forestry, mining, oil, public utility and airport properties. (c) Receipts from sales of tangible personal property which is either manufactured by or, if not manufactured by, is incidental to the primary operation of a manufacturer who is subject to the ad valorem tax imposed under Chapter 5 of Title 67, T.C.A., and is sold either at the manufacturing location or any other manufacturing location operated by it within the same county. (d) Receipts of the producer from sales of livestock, poultry and other farm products directly from the farm, including catfish farmers. (e) The cost of sales of livestock; poultry or other farm products, other than those excluded as sales directly from the farm by the producer, to the end result that the Business Tax imposed shall apply only to the amount of all commissions, fees, margins or other charges received from such sales. BUSINESS TAX RULES AND REGULATIONS CHAPTER 1320-04-05 (f) Receipts of persons which are subject to gross receipts tax for their engaging in the business of operating as bottlers and manufacturers of soft drinks and soft drinks substitutes; gas, water, and electric current companies; telephone and telegraph companies; theaters, motion picture and vaudeville shows; establishments selling mixed drinks or setups for mixed drinks; and vendors of tangible personal property through vending machines, all of which persons are liable for or elect to pay the gross receipts tax to the state under the provisions of Chapter 4 parts 4 and 5, Title 67, T.C.A. (g) Receipts of owners, or others having similar interests, from the sale or rental of real property; but this exclusion shall not include the receipts of brokers or agents as commissions' for the sale or rental thereof. (h) Receipts from rental of films to theaters which pay the tax imposed by T.C.A. §67-6- 212. (i) Receipts from rental of films, transcriptions and recordings to radio or television stations operating under a certificate from the Federal Communications Commission. (2) Any other amounts attributable to the exclusions authorized by the Business Tax Act, or rules and regulations pertaining thereto, may also be excluded. (See Rule 1320-04-05-.36)