We wanted to write a blog post specifically for the members of the Armed Forces. With Memorial Day recently passed and Independence Day quickly approaching, it is a time that we reflect and really get to remember how important these individuals are to our everyday lives in the Automotive Industry. Recently, we have sold many vehicles to active duty military that were either stationed currently in Iraq or posted in Active Duty around the East Tennessee area. To our surprise many of the people that we are so lucky to shake the hand of have not known about Tenn. Code Ann. 67-6-303, Notice #07-07 regarding the application of sales and use tax to the purchase of motor vehicles so we wanted to paste that specific Amendment directly from http://www.tennessee.gov/revenue here on our site. Basically to sum everything up, you are exempt from paying sales tax if you are 1.) Active Duty Military and have a current copy of your LES form and 2.) TN State Resident. Now this is only for TN state resident because that is who we are required to collect sales tax from but if you are a resident out of the state of Tennessee we recommend checking with your local Revenue department to see if there is any amendments that are similar to Tennessee's.

From Tennessee.gov/Revenue:

INTRODUCTION

This notice is intended to provide taxpayers and the general public with information concerning changes to the sales and use tax statutes regarding the application of sales and use tax to the purchase of motor vehicles by certain members of the armed forces.

Effective June 28, 2007, Chapter 602 of the Public Acts of 2007 amends Tenn. Code Ann. § 67-6-303 regarding the application of sales and use tax to the purchase of motor vehicles by certain members of the armed forces.

DISCUSSION

Purchasers who are Eligible for the Exemption

Tenn. Code Ann. § 67-6-303 exempts from sales and use tax the sale of motor vehicles to members of the armed forces who fall into any one of the following five categories:

1. Members of the United States Army, Navy, Air Force, Marine Corps, or Coast Guard who are engaged in active, full-time military service and are stationed in Tennessee.

2. Members of the Tennessee National Guard who are engaged in active, full-time military service as participants in the Active Guard and Reserve Program (AGR) and are stationed in Tennessee. This category does not include any member who serves on a part-time basis or who is otherwise not a participant in the Active Guard and Reserve Program.

3. Reserve members of the United States Army, Navy, Air Force, Marine Corps, or Coast Guard, who are engaged in active, full-time military service as participants in the Active Guard and Reserve Program (AGR) and are stationed in Tennessee. This category does not include any member who serves on a part-time basis or who is otherwise not a participant in the Active Guard and Reserve Program.
4. Members of the Tennessee National Guard who have been called into active military service of the United States and are stationed in a combat zone; provided that the exemption will commence from the effective date of official military orders assigning such individual to the combat zone and will expire ninety (90) days after the effective date of official military orders releasing him or her from the combat zone.

5. Reserve members of the United States Army, Navy, Air Force, Marine Corps, or Coast Guard who have been called into active military service of the United States and are stationed in a combat zone; provided that the exemption will commence from the effective date of official military orders assigning such individual to the combat zone and will expire ninety (90) days after the effective date of official military orders releasing him or her from the combat zone.

Members of the armed forces stationed at Fort Campbell, Kentucky are considered stationed in Tennessee.

Vehicles that Qualify for the Exemption

In order for a vehicle to qualify for the exemption, it must meet three requirements.

1. The vehicle must meet the definition of a "motor vehicle" under Tenn. Code Ann. § 55-1-103(3).

2. The vehicle must be registered in Tennessee pursuant to Tennessee Code Annotated, Title 55.

3. The vehicle must be both titled and registered in the name of the qualifying individual, either alone or jointly with a spouse or lineal relative.

Generally, automobiles, trucks, and motorcycles must be registered. Each of these vehicles meets the definition of "motor vehicle." As such, if they are properly titled and registered as otherwise set out in this notice, they can be purchased by eligible members of the armed forces without payment of sales or use tax.

"Off-highway motor vehicles," as defined under Tenn. Code Ann. § 55-3-101(c), can be purchased exempt from sales and use tax by eligible service members. These "off-highway motor vehicles" must be subject to the certificate of title and special identification device provisions of Title 55. Such vehicles are specifically limited to: all terrain vehicles (ATV's), dirt bikes, dune buggies, and similar vehicles.

"Mobile homes and house trailers" are specifically included in the definition of "motor vehicle" whether they are self-propelled or not. They may be purchased exempt from sales and use tax by an eligible service member if they are titled and registered as otherwise set out in this notice.

Vehicles that Do Not Qualify for the Exemption

Leased or rented motor vehicles remain titled in the name of the lessor, therefore, the exemption does not apply to leased or rented motor vehicles.

Certain vehicles are subject to registration in Tennessee but do not meet the definition of a "motor vehicle." Registered vehicles that do not meet the definition of a "motor vehicle" do not qualify for the exemption. Examples include trailers and semi-trailers.

For more tax information, call toll free 1-800-342-1003 Nashville area and out-of-state call (615) 253-0600 Email TN.Revenue@state.tn.us