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Revenue lists exemptions for government, personal use and resale; consult notices for in‑house software rules
Summary
The department summarized entity‑based exemptions (government, personal, manufacturers, common carriers, resale) and pointed attendees to Important Notice 22‑05 for in‑house software guidance and the Sales and Use Tax Manual.
The Revenue presenter reviewed common entity‑based exemptions that can affect software taxability. She noted government purchases often qualify for exemption (for example, state or federal government uses tied to exemption certificates), and an individual fabricating software for personal use is exempt, referencing Important Notice 22‑05 for in‑house software scenarios.
Julian also noted there are 13 entity‑based exemptions (agricultural, manufacturers, common carriers, etc.) that can apply when a purchaser is an exempt entity. She emphasized resale as another common exemption when software is purchased for the purpose of reselling access or use, subject to a resale certificate.
The department advised taxpayers to consult the Sales and Use Tax Manual and the department’s help articles; for in‑house software or complex entitlement questions, they recommended submitting specifics to revenue.support@tn.gov.
