For Immediate Release
February 20, 2003

TENNESSEE DEFINES REGISTRATION FOR OUT-OF-STATE DEALERS

The Tennessee Department of Revenue has issued guidelines to assist out-of state vendors in determining their liability for sales and use tax obligations.

The following activities, if conducted in Tennessee, and not of a de minims nature, would require an out-of-state company to register for sales and use tax purposes:

1. using in-state solicitors (i.e., employees, agents, independent contractors, etc.);
   
   
2. participating in trade-shows or any other promotional activity;
   
   
3. having an in-state presence of a subsidiary acting as an agent of the out-of-state entity or that is conducting activities on its behalf in Tennessee;
   
   
4. operating company-owned trucks in the state or using a carrier as an agent for the seller;
   
   
5. maintaining a store, office, warehouse, showroom, etc. in Tennessee;
   
   
6. renting or leasing TPP in the state;
   
   
7. repairing, assembling or installing TPP or using an agent or independent contractor to perform these services;
   
   
8. providing telecommunication services to Tennessee subscribers; and
   
   
9. providing a taxable service in the state.

As these are intended as guidelines only by the Department of Revenue, the above list is not all-inclusive and does not cover every activity or exception that may be applicable.

If you would like additional information on this topic or have any questions, please contact J. Lynne Fontana, Regional Vice President - Sales & Use Tax Group at (281) 578-3700. E-mail lfontana@thesaltgroup.com

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