Tenn. Comp. R. & Regs. 1320-05-01-.27 - INSTALLATION SALES
(1) Charges for
installing tangible personal property that remains tangible personal property
after installation are subject to sales and use tax. The tax is due from the
dealer regardless of whether the dealer or someone acting on the dealer's
behalf installs the property.
(2)
Installation services that are provided in connection with the sale of tangible
personal property are a part of the sales price of the tangible personal
property sold. If a dealer provides installation services in connection with
the sale of tangible personal property, such installation services are subject
to sales and use tax if the tangible personal property being installed is
subject to sales and use tax. Installation services that are sold in
transactions unrelated to the sale of the tangible personal property are
subject to sales and use tax regardless of the taxability of the tangible
personal property installed unless the installation services are otherwise
exempt from tax.
(3) Tangible
personal property which is sold and attached to real property, but which will
ordinarily be removed by the owner or tenant, such as window air conditioning
units, curtain and drapery rods, gasoline pumps, etc., shall be deemed to be
personal property and the installation charges therefor shall be subject to the
sales and use tax.
(4) Charges made
for installing tangible personal property which becomes a part of real
property, are not subject to sales and use tax. The person so installing the
property shall be liable for any sales and use tax that may be due, if any, on
the property bought and/or used in making the installation.
Notes
Authority: T.C.A. ยงยง 67-1-102, 67-6-102, 67-6-205, and 67-6-402.
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