Present law establishes a sales and use tax exemption for motor vehicles registered in this state if the vehicle is sold in certain circumstances to the armed forces. In order to qualify for the exemption, the purchaser must provide to the seller, or to the county clerk when appropriate, a copy of the official orders related to the stationing of the purchaser and, if applicable, the purchaser's status as a member of the active guard and reserve program. The orders must be retained in the seller's files and a copy must accompany the application for registration. The exemption only applies when the vehicle is titled and registered in the name of the qualifying individual, either alone or jointly with a spouse or lineal relative. This bill adds a similar exemption for a motor vehicle registered in this state if the vehicle is sold to a qualifying member of the Tennessee national guard. This exemption applies only to the first $15,000 of the sales price and only to one vehicle within a five-year period. To qualify for this exemption, the purchaser must provide to the seller, or to the county clerk when appropriate, proof of the purchaser's status as a member of the Tennessee national guard and documentation from the member's national guard unit certifying that the member is in good standing. A copy of the proof and documentation must be retained in the seller's files and a copy must also accompany the application for registration.

Statutes affected:
Introduced: 67-6-303