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-.99 - ADVERTISING, ADVERTISING AGENCIES, ETC

(1) Charges made for advertising in newspapers, magazines, brochures, programs, etc., are not subject to the Sales or Use Tax. Any sales or works of art to be used in preparing advertising material for use in newspapers, magazines, brochures, programs, etc., are however, subject to the Sales and Use Tax.

(2) In the event an advertising agency sells tangible personal property to its clients, or obtains tangible personal property for a client and charges the client more for the property than the agency pays for the property the agency shall collect, report and pay the Sales or Use Tax on the amount actually charged or received for the tangible personal property.

(3) Catalogues, magazines, handbills, and other items of tangible personal property which are sold, imported, or caused to be imported into the State for advertising purposes, and which are not for resale purposes, are subject to the Sales or Use Tax. Any charges for postage are not subject to the Sales or Use Tax, provided the charge for postage is stated separately on the invoice.