- Tennessee Department of Revenue issued a letter ruling on repair services for traffic management equipment
- Company manufactures and sells traffic management equipment, including cameras for regulating traffic flow
- Out-of-state customers ship equipment to Tennessee for repair, then it is shipped back to them
- Before July 1, 2024, repair services on tangible personal property are subject to Tennessee sales tax
- Relevant exemption does not apply to company’s repair services for traffic management equipment
- Beginning July 1, 2024, if repair service is performed in Tennessee and property is shipped out of state, it is an exempt interstate sale
- Reminder to monitor legislative changes that may affect taxability of services or products
- Shipping method is not relevant to taxability of repair services before July 1, 2024
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
