Casual And Isolated Sales

(1) The Sales Tax does not apply to casual and isolated sales by persons who are not, or who have been deemed by the Commissioner not to be engaged in the business of selling tangible personal property or furnishing any of the services subject to the Sales or Use Tax. The Sales Tax, likewise, does not apply to sales of tangible personal property or taxable services not normally sold by a dealer and which has been used by the dealer prior to the sale; this exemption however, does not apply to any sales of tangible personal property or taxable services bought upon a resale certificate for resale by those persons who hold STATE SALES AND USE TAX RULES CHAPTER 1320-05-01 themselves out as engaged in business, notwithstanding the fact that the sales may be few and infrequent. The exemption also does not apply to the casual and isolated sale of aircraft, vessels and motor vehicles which are required to be registered by the State of Tennessee or the U.S. Government. (2) Bona fide residents of other states who move to and become residents of Tennessee, and cause to be imported into Tennessee their personal automobiles, personal effects, and household furniture acquired prior to the change of residence, shall not be liable for the Use Tax on these items. This does not apply to any property imported for business use. (3) Manufacturers, processors, wholesalers, or jobbers engaged in the business of distributing tangible personal property or furnishing taxable services, who sell primarily other than at retail, are not deemed to be making casual or isolated sales when they sell such tangible personal property or services to purchasers for use or consumption, notwithstanding that sales at retail may comprise a small fraction of their total business. (4) Irregular sales of tangible personal property or regular sales of tangible personal property made only during a temporary sales period occurring on a semiannual or less frequent basis are casual and isolated sales not subject to tax. If a person other than a public or private school, grades K-12, or school group has or conducts more than two (2) sales periods during a calendar year, such person shall be liable for sales tax on all sales during that calendar year. Public and private schools, grades K-12, and school support groups having or conducting more than two (2) sales periods during a calendar year, having purchased tangible personal property or taxable services without the payment of tax, shall be liable for the use tax based on the purchase price of the items or services purchased during that calendar year. A sales period shall be presumed to be temporary if it is of 30 consecutive days duration or less. Persons making purchases of tangible personal property or taxable services for resale during temporary semiannual or annual sales periods shall provide provide their vendor with a written statement indicating that the items or services will be sold during a semiannual or annual sales period.