Tenn. Comp. R. & Regs. 1320-05-01-.110 - WATER
(1) Sales of water, including any charges for
standby or special fire protection, minimum bills, or any other charges where
the use of water is contemplated, are subject to the Sales or Use
Tax.
(2) Charges for sewage
disposal, amortization, tap fees, late payment and damages to facilities are
not subject to the Sales or use Tax, provided some definite amount or
percentage of the charges for water are indicated as such on the statement
given to the customer, and the charges are segregated and maintained as such on
the books and records of the dealer. Security deposits are not subject to the
Sales or Use Tax. If these charges are not indicated as such on a statement
given to a customer, and are not maintained as such on the books and records of
the dealer, they are subject to the Sales or Use Tax.
(3) Dealers giving allowances to customers
for charges for water that has been metered, but which is lost because of leaky
or open pipe, may claim credit for such allowances.
(4) Statements for sales of water must
indicate in some manner whether the customer is paying Sales or Use
Tax.
(5) Landlords who make any
charges to tenants for water shall be deemed to be dealers, shall qualify with
the Department for Sales Tax purposes, and report and pay applicable tax due on
such sales to their tenants.
Notes
Authority: T.C.A. ยงยง 67-1-102 and 67-6-402.
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