There is exempt from sales or use tax the transfer, by any dealer in personal property, of any item from inventory to be used by such dealer, or the dealer's agent, or representative for demonstration or display purposes; provided, that such article of personal property shall be returned to inventory for sale in the usual course of trade within one hundred twenty (120) days; if such article of personal property is used for demonstration purposes for a period in excess of one hundred twenty (120) days, the dealer shall pay a use tax thereon for the amount that the cost of the article to the dealer exceeds the sales price of the article upon which sales tax is regularly assessed and paid when it is subsequently sold to a consumer.
Structure 2021 Tennessee Code
Chapter 6 - Sales and Use Taxes
§ 67-6-305. Demonstration or Display Property
§ 67-6-306. Divorce — Transfer of Automobile
§ 67-6-307. Energy or Resource Recovery Facilities
§ 67-6-308. Federal Government
§ 67-6-310. Gun Shows — Sales by Nonprofit Organizations
§ 67-6-314. Medical Equipment and Devices
§ 67-6-315. Monthly Water Bill
§ 67-6-325. Telephone Cooperatives
§ 67-6-327. Vessels and Barges — Repairs
§ 67-6-328. Watershed Districts
§ 67-6-332. Utilities, Electric Cooperatives and Electric Membership Corporations
§ 67-6-336. Used Factory-Manufactured Structures
§ 67-6-337. Sales Paid for With Food Stamps
§ 67-6-343. Motor Vehicles — Exemption From Sales Tax
§ 67-6-345. Boats, Motorboats and Other Vessels — Exemption From Sales Tax
§ 67-6-346. Pollution Control Credit
§ 67-6-354. Design Professionals' Sketches, Drawings and Models
§ 67-6-386. Sale or Use of Aviation Fuel. [Effective on July 1, 2021.]
§ 67-6-390. Exemption for Sales of Telecommunications Services Between Affiliates