Religious,

CHARITABLE, EDUCATIONAL AND OTHER NON-PROFIT INSTITUTIONS. (1) Sales made to individuals or organizations for the use and benefit of institutions which may themselves be exempt from the Sales or Use Tax, are subject to the Sales or Use Tax. (2) Sales of tangible personal property to churches or other religious, charitable, educational, scientific or any other similar institution for the purpose of resale when such organizations are not regularly engaged in the business of selling tangible personal property, are subject to the Sales and Use Tax, and the church or other institution shall not be required to charge or be liable for any tax on such sales. In the event, however, any church or other similar institution is regularly engaged in the business of selling tangible personal property or furnishing any taxable service, it shall qualify with the Department as a dealer and be liable for any tax due on such sales. (3) Religious, charitable or educational institutions entitled to an exemption from sales or use tax upon tangible personal property sold, given or donated to them will be issued a letter of exemption upon application to the commissioner. When purchasing goods and services from suppliers, the exempt institution must furnish its supplier with a properly completed copy of the letter or valid exemption under 26 U.S.C. 501(c)(3) pursuant to T.C.A. § 67-6-322(e). The exempt institution should retain the original exemption letter with the lower portion left uncompleted for copy making purposes. For the purpose of these rules, “letter of exemption” and “exemption letter” shall have the same meaning as “certificate of exemption” and “exemption certificate”