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-.51 - SPECULATIVE BUILDERS

Universal Citation: TN Comp Rules and Regs 1320-04-05-.51

Current through September 24, 2024

(1) Persons building houses or other structures on their own property from their own plans and not under contract and offering them for sale are not considered to be selling tangible personal property or rendering a taxable service and are not taxable under the Business Tax Act.

(2) If, during the course of construction of a house or other structure a builder agrees to sell the property and alters the plans to the specifications of the buyer, he shall be deemed to be a contractor and liable for the appropriate business tax on the total receipts over and above the price for which the property would otherwise be sold.

(3) A builder is subject to the provisions of paragraph (2) if:

(a) He contracts to sell a building and lot prior to completion of the construction of the building and,

(b) He alters the building plans to the specifications of the buyer.

Both of the conditions in subparagraphs (a) and (b) must be present in order for builder to be subject to the provisions of paragraph (2).

Authority: T.C.A. §§ 67-1-102 and 67-4-703.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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