Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-05 - Business Tax Rules and Regulations
Section 1320-04-05-.05 - CASUAL AND ISOLATED SALES

(1) The Business Tax does not apply to casual and isolated sales by persons who are not engaged in the business of selling tangible personal property or furnishing any of the services subject to the Business Tax. Likewise, the tax does not apply to sales of tangible personal property or services not normally sold by a wholesaler or retailer and which, if property, has been used by the dealer prior to the sale. These exemptions, however, do not apply to any sales of tangible personal property or taxable services bought for resale by those persons who hold themselves out as engaged in business, notwithstanding the fact that the sales may be few and infrequent.

(2) Manufacturers, processors, wholesalers, or jobbers engaged in the business of distributing tangible personal property or furnishing services subject to the Business Tax are not deemed to be making casual and isolated sales when they sell such tangible personal property or services to purchasers for use or consumption, notwithstanding the fact that such sales may comprise a small fraction of their total business. (See 1320-4-5-.16(1)(c) and 1320-4-5-.29(3).)

(3) Persons regularly engaged in the recurring sale of tangible personal property at antique malls, flea markets, craft shows, antique shows, gun shows and auto shows and antique malls, flea markets, crafts shows, antique shows, gun shows and auto shows regularly engaged in the recurring sale of tangible personal property shall not be considered to be making casual and isolated sales. It shall be the burden of such persons and businesses to prove that their sales are actually casual and isolated in order to qualify for the exemption.