Tenn. Comp. R. & Regs. 1320-05-01-.81 - DAIRIES

(1) Dairy products sold for use or consumption in this State are subject to the Sales or Use Tax as follows:

(a) A dairy buying all of its milk used for processing is required to collect, report, and pay the Sales or Use Tax on all of its sales for use or consumption.

(b) A farmer dairyman selling his own milk produced on his farm is not required to collect the Sales or Use Tax on his sales.

(c) A farmer dairyman buying milk for processing, either to supplement his own milk, or to fill in at times when he has no milk of his own to process, is required to collect, report and pay the Sales or Use Tax on that part which is purchased.

(d) A farmer dairyman who buys milk for processing and intermingles it with his own milk is required to collect, report, and pay the Sales or Use Tax on all of his sales for use or consumption.

(2) Supplies, equipment and taxable services used by dairies to process dairy products are subject to the Sales or Use Tax.

Notes

Tenn. Comp. R. & Regs. 1320-05-01-.81

Original rule certified June 7, 1974.

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