Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-05 - Sales and Use Tax Division
Chapter 1320-05-01 - State Sales and Use Tax Rules
Section 1320-05-01-.101 - CONTRACTORS - USE OF TANGIBLE PERSONAL PROPERTY UPON WHICH NO SALES OR USE TAX HAS BEEN PAID

Any tangible personal property or taxable service which is furnished by a church to a contractor or subcontractor for use in church construction is exempt from the Sales or Use Tax, but the exemption does not apply to any materials which may be furnished and used in constructing any other building or improvement to real property, even though it may be for a church supported hospital, school, orphanage, etc.

Authority: T.C.A. §§ 67-1-102, 67-6-209, 67-6-322, and 67-6-402.