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-.121 - FREE, COMPLIMENTARY, OR REDUCED DUES, FEES, OR ADMISSION CHARGES

Universal Citation: TN Comp Rules and Regs 1320-05-01-.121
Current through September 24, 2024

Free or complimentary dues, fees, or admission charges are taxable when made in connection with a valuable contribution. Tax shall apply only to that portion of the contribution which represents the fair market value of the membership or admission. Where memberships or admissions are purchased at a reduced charge, tax shall apply only to the reduced charge; provided that tax shall also apply to any additional contribution up to the actual fair market value of the membership or admission. The sales and use tax is not imposed on free amusements provided to employees of amusement providers as fringe benefits (e.g., free tans to employees of a tanning bed operator or free membership to employees of a health spa).

Authority: T.C.A. §§ 67-1-102, 67-6-212, and 67-6-402.

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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