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-.25 - FINANCE CHARGES - CARRYING CHARGES

Current through September 24, 2024

(1) Finance charges, carrying charges, time price differential, or interest from credit extended on sales of tangible personal property under conditional sale contracts or other contracts providing for deferred payments of the purchase price are not considered a part of the selling price of such property and are not subject to Sales Tax if the amount of such finance charges, carrying charges, time price differential, or interest is in addition to the usual or established case selling price, and:

(a) Is segregated on the taxpayer's invoice or bill of sale, or

(b) Is billed separately to customers.

(2) Unless these conditions are met, such charges shall be deemed to be part of the selling price for the purpose of computing the tax.

Authority: T.C.A. §§ 67-1-102 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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