Tennessee Code Annotated

Title 67: Taxes and Licenses

Chapter 6: Sales and Use Taxes

Part 3: Exemptions

TCA 67-6-334: Energy for residential use.

(a)  There are exempt from the tax levied by this chapter gas, electricity, fuel oil, coal and other energy fuels sold directly to the consumer for residential use.

(b)  (1)  As used in this section, "sold directly to the consumer for residential use" includes the furnishing of gas, electricity, fuel oil, coal or other energy fuels to single private residences, including the separate private units of apartment houses and other multiple dwellings, actually used for residential purposes, that are separately metered or measured, regardless of the fact that a person other than the resident:

          (A)  Is contractually bound to the supplier for the charges;

          (B)  Actually pays the charges; or

          (C)  Is billed for the charges.

     (2)  Use of electricity and other energy fuels in hotel or motel units by transient occupants does not constitute residential use.

     (3)  In any instance in which the owner of a residential unit fails to disclose to an electric utility that the unit is being used for a purpose that would render the sale of electricity taxable, such owner shall be liable for any tax, penalty or interest due thereon, rather than the electric utility.

     (4)  The exemption provided in this section shall not apply to energy fuels sold over the counter at the location of the seller except as follows:

          (A)  Propane sold over the counter in cylinders with a capacity of one hundred pounds (100 lbs.) or more directly to the consumer for residential use shall be exempt from the tax levied by this chapter; and

          (B)  Kerosene sold at retail through dispensers that have been designed and constructed to prevent delivery directly from the dispenser into a vehicle fuel supply tank shall be exempt from the tax levied by this chapter.

History: [Acts 1985, ch. 356, § 9; 2002, ch. 836, § 1; 2007, ch. 602, § 39; 2008, ch. 1106, § 12.]