Tennessee Department of Revenue outlines vehicle sales-tax exemptions for military service members

Billy Trout, manager of taxpayer education for the Tennessee Department of Revenue, opened a Feb. 25 webinar by saying, "This is Billy Trout, a manager of taxpayer education for the Tennessee Department of Revenue," and welcoming attendees to a briefing on "tax issues or tax exemptions for our military service members."

The presentation summarized Tennessee rules for sales-tax exemptions on motor vehicles and related exemptions for military and certain veteran populations, explained which documents county clerks and dealers should accept as proof of stationing, and outlined steps service members should take if an exemption was not claimed at the time of purchase. "All this information is good as of today, 02/25/2025," Katie Julian, webinar specialist in the Department's taxpayer education section, reminded attendees.

Why it matters: The exemptions can affect purchases by active-duty service members, members of the Tennessee National Guard under certain conditions, and disabled veterans. Department staff emphasized that misunderstandings about orders and documentation are common, and urged clerks, dealers and service members to verify paperwork in advance or submit copies to the department for review. "If you ever have a question, whether, a purchases is exempt, please send us a set of orders," Lisette Herron, a supervisor in taxpayer services, said.

What the…