Skip to Content

2009 Legislative Summaries

The following are brief summaries of the 2009 legislative changes to statutes administered by or affecting the Tennessee Department of Revenue.  The language used is not quoted from the law and should not be used as a substitute for the formal text.  For a complete copy of a particular public chapter, please visit the Secretary of State’s Web site at www.tn.gov/sos/acts. For upcoming notices and other information regarding these changes, please visit the Department’s Web site at www.tn.gov/revenue.

These summaries are organized by subject matter.  Some public chapters cover more than one subject and, therefore, appear in more than one section of the summary.  Only the portions of a public chapter that are relevant to a particular section of the summary are included in that section.

Sales and Use Tax

Franchise and Excise Tax

Business Tax

Other Taxes

Tax Administration

Motor Vehicle Title and Registration

Miscellaneous

 

 

Required Capital Investment
Public Chapter 530, Sections 18-22, adds computer software to the definitions of “required capital investment” and “qualified tangible personal property” for qualified data center, qualified headquarters facility, and qualified emerging industry purposes.
Top

 

Data Center Investment Period
Public Chapter 530, Section 24, extends the maximum period for making the required capital investment to qualify as a “qualified data center” from 5 years to 7 years.

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Emerging Industry Credit
Public Chapter 530, Section 25, adds clean energy technology to the definition of “emerging industry,” including clean energy technology research and development and installation of clean energy technology.

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Streamlined Sales Tax Legislation: Effective Date Delayed
Public Chapter 530, Sections 35-49, delays implementation of the remaining Streamlined Sales Tax legislation from July 1, 2009, to July 1, 2011. Delayed provisions include destination sourcing, single article cap, special user taxes, and single return.

Effective date: June 25, 2009.

Top

 

Computer Software Maintenance
Public Chapter 530, Sections 50-52, provides that the existing tax on computer software maintenance contracts applies to any contract covering software located in this state. “Computer software maintenance contract” is defined as a contract that obligates a person to provide a customer with future updates or upgrades to computer software, support services with respect to computer software, or both.  However, it does not include telephone or other support services that are optional and are sold and invoiced separately and does not include any transfer, repair, or maintenance of computer software on the part of the seller.

Effective date: July 1, 2009.

Top

 

In-House Software Exemption
Public Chapter 530, Sections 53-54, provides that the “in-house” computer software exemption applies only if the software is created by the taxpayer or its direct employees and does not apply when the software is created by an employee of another company. A “direct employee” is an employee to whom the taxpayer (or with the Commissioner’s approval, another entity or affiliate) is obligated to issue a federal Form W-2 and with respect to whom the taxpayer has responsibility for withholding federal employment taxes.

Effective date: July 1, 2009.

Top

 

Advertising Materials
Public Chapter 530, Sections 55-56, clarifies the application of the sales and use tax to advertising materials by providing that the tax applies to final artwork and advertising materials but does not apply to preliminary artwork used by the advertising agency solely for conveying concepts or ideas.

Effective date: July 1, 2009.

Top

 

Aviation Fuel Exemption
Public Chapter 530, Section 57, clarifies the procedure for claiming a credit for taxes paid on aviation fuel sold to an air common carrier and subsequently used by the air carrier in an international flight, which is exempt from tax.

Effective date: July 1, 2009.

Top

 

Allocation of Tax to Performing Arts Center
Public Chapter 530, Section 58, allocates the state sales tax collected on ticket sales back to certain performing arts centers exclusively for use in maintaining and improving the facilities in which the performing arts center is located. The performing arts center must consist of four or more auditoriums, have a total seating capacity of 5,400 or more, be located in facilities owned by the state or a political subdivision, and be operated by a 501(c)(3) organization.

Effective date: Applies to all tickets sold on or after July 1, 2009.

Top

 

Commercial Breeder Act
Public Chapter 591, Section 1, creates new criminal offenses regarding the commercial breeding of companion animals and requires commercial breeders to become licensed by the Commissioner of Health.  In order to become licensed, the applicant is required to show, among other things, that the applicant has a valid sales tax registration number and is in good standing with the Department of Revenue.

Effective date: July 8, 2009, in regard to notice to the public, employing staff, and promulgating rules; January 1, 2010, for all other purposes.

Top

 

Commercial Breeder Act Tax Collections
Public Chapter 530, Section 59, allocates state sales tax collected from commercial breeders licensed under the Commercial Breeder Act to the Commercial Breeder Act enforcement and recovery account.

Effective date: June 25, 2009.

Top

 

Municipal Stadium Events
Public Chapter 530, Sections 60-61, makes several changes to the 10 percent local privilege tax levied on tickets to events at a municipal stadium, including exempting events for the benefit of public colleges or universities that use the stadium for a majority of home football games, providing that state and local sales tax will not apply to the amount of the local privilege tax, and allowing the tax to continue after the stadium indebtedness has matured.

Effective date: June 25, 2009.

Top

 

Allocation of Non-Sporting Event Revenue
Public Chapter 530, Sections 62-63, amends current allocation provisions to specify that sales tax revenue generated by non-sporting events at an indoor sports facility in a county with a metropolitan form of government will be allocated to the Metro convention and visitors bureau rather than the Metro sports authority.

Effective date: July 1, 2009.

Top

 

Sales of Services Between Affiliates
Public Chapter 530, Sections 67-68, updates the existing sales and use tax exemption for services provided by one company to an affiliated company by allowing the exemption to apply to any form of entity rather than being restricted only to corporations.

Effective date: Applies to any applicable transactions occurring on or after January 1, 2009.

Top

 

Original Equipment Manufacturer Exemption
Public Chapter 530, Sections 114-115, provides that sales of OEM headquarters company vehicles shall be exempt from the sales and use tax. “OEM headquarters company vehicle” is any motor vehicle subject to registration in accordance with Title 55 that is owned by an OEM headquarters company, whether used for sales or service training, advertising, quality control, testing, evaluation, or other uses approved by the Commissioner, and including motor vehicles provided by the OEM headquarters company for use by eligible employees and their eligible family members.“OEM headquarters company” is defined as an original equipment manufacturer that is engaged in the business of manufacturing motor vehicles and qualifies to receive the credit provided in Tenn. Code Ann. Section 67-6-224, or any affiliate thereof.

Effective date: June 25, 2009.

Top

 

Tennessee Clean Energy Future Act of 2009
Public Chapter 529, Sections 15-17, adds clean energy technology to the definition of “emerging industry,” including clean energy technology research and development and installation of clean energy technology.  It also amends the emerging industry credit by allowing the credit to those primarily engaged in manufacturing clean energy technology.

Effective date:June 25, 2009 for rule making; July 1, 2009 all other purposes.

Top

 

Allocation of Tax
Public Chapter 609 requires the apportionment and distribution of sales and use tax revenues of certain hotels in an amount equal to the amount of state sales tax revenue derived from the sale of goods and services on the premises of the hotel or inn. Any revenue so distributed may only be used to retire debt incurred prior to April 1, 2009, including interest thereon, in renovating the hotel or inn and will continue only until the debt is retired. Only a hotel or inn that is more than 150 years old, owned by a municipality, and operated by a 501(c)(3) organization will be eligible for such apportionment and distribution.

Effective date: July 1, 2009.

Top

 

Job Tax Credit
Public Chapter 530, Sections 1-14, amends and simplifies the job tax credit provisions. The credit remains substantially unchanged except that the amount of the credit is set at $4,500 per job, regardless of the county in which the job is created, and the credit can offset up to 50 percent of total liability. Also, the minimum job requirement in connection with an investment of at least $1 billion has been decreased from 1,000 to 500 industrial wage jobs.

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Child Day Care Facility Credit
Public Chapter 530, Sections 1-2, repeals the child day care facility credit. No taxpayers utilize the credit.

Effective date: June 25, 2009.

Top

 

Industrial Machinery Credit: Carryforward Period
Public Chapter 530, Section 15, allows the industrial machinery credit earned by a taxpayer investing at least $1 billion in the state to be carried forward until completely utilized.

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Relocation Expense Credit
Public Chapter 530, Sections 16-17, increases the amount of relocation expense credit available to a headquarters facility that has created at least 500 net new full-time jobs and invested at least $1 billion in the state. The credit is increased from $50,000 to $100,000 per job.

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Industrial Machinery Credit: Required Capital Investment Period
Public Chapter 530, Section 23, extends the $1 billion investment period for purposes of the industrial machinery credit from a maximum of five years to a maximum of seven years and adds computer software to the definition of “required capital investment.”

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Green Energy Tax Credit
Public Chapter 530, Sections 26-27, amends the green energy tax credit by allowing the credit to the green energy manufacturer itself as well as to separate companies that are integrated into the green energy manufacturer’s operations at its project site.

Effective date: Applies to all business plans filed on or after July 1, 2009.

Top

 

Family Owned Noncorporate Entity (FONCE): Rents
Public Chapter 530, Section 28, removes the term “rents” from the definition of “passive investment income” for purposes of the family owned noncorporate entity exemption and replaces it with the term “rents from residential property or farm property.” “Residential property” includes any property leased or rented for residential purposes that includes not more than four residential units.

Effective date: July 1, 2009.

Top

 

Family Owned Noncorporate Entity (FONCE): Trusts
Public Chapter 530, Section 28, clarifies that ownership units that are held in trust shall not be treated as owned by members of the family for purposes of the family owned noncorporate entity exemption, unless such units are property of a trust of a deceased individual who, while living, was a member of the family.

Effective date: July 1, 2009.

Top

 

Obligated Member Entity Exemption
Public Chapter 530, Section 29, amends the date by which a taxpayer must file the required documentation to become an obligated member entity, for tax years beginning on or after July 1, 2008, but before October 1, 2009. Such documentation must be filed with the Secretary of State on or before October 1, 2009. For all other tax years, the required documentation shall be filed on or before the first day of the taxable year for which a return is filed.

Effective date: July 1, 2009.

Top

 

Reasonable Rental Rate and Computation of Net Earnings
Public Chapter 530, Section 30, requires the addition to net earnings any amount in excess of reasonable rent that is paid, accrued, or incurred for the rental, leasing, or comparable use of industrial and commercial property owned by an affiliate. “Reasonable rent” means rent that does not exceed two percent per month of the appraised value of the property.

Effective date: July 1, 2009.

Top

 

Negligence Penalty / Intangible Expense Deductions and Dividend Received Deductions
Public Chapter 530, Sections 31-32, sets a minimum penalty of $10,000 for failing to disclose transactions involving an intangible expense deduction or a captive REIT dividend received deduction. The Commissioner is authorized to waive the penalty in certain circumstances.

Effective date: Applies to any tax period beginning on or after January 1, 2009.

Top

 

Annual Exemption Application
Public Chapter 530, Section 33, requires that taxpayers claiming specific statutory exemptions file an annual exemption application. The initial application must be filed within 60 days of the beginning of the first tax year for which the exemption is claimed. An annual application for renewal of exemption must be filed on or before the fifteenth day of the fourth month following the close of the tax year. A $1,000 penalty is imposed for failure to timely file the application. The Commissioner is authorized to waive the penalty for good and reasonable cause.

Effective date: June 25, 2009.

Top

 

Definition of “Publicly Traded REIT”
Public Chapter 530, Section 34, clarifies that, to come within the definition of a “publicly traded REIT,” the entity must be traded on a regulated national securities exchange of the United States or a foreign country.

Effective date: June 25, 2009.

Top

 

Relocation Expense Credit Recapture
Public Chapter 530, Section 132, applies a prorated recapture provision to the headquarters relocation expense credit, if the facility is not utilized as a qualified headquarters facility for a period of at least 10 years.

Effective date: June 25, 2009.

Top

 

Business Tax
Public Chapter 530, Sections 69-93, amends the business tax statute to shift primary administration of the tax from local governments to the Department of Revenue.  Key provisions of these sections include:
  • Businesses will continue to obtain a new business tax license from local officials for a $15 license fee
  • Annual business tax returns and payments will be filed with the Department of Revenue, instead of the local governments
  • Businesses will continue to renew their business tax license annually with local officials for no additional fee after the tax return has been filed with the Department of Revenue
  • Minimum business tax will be $22 ($450 for Classification 5 businesses)
  • Classification 1, 2, and 3 businesses will be classified as either a wholesaler or a retailer
  • Retailer is a business in which 50 percent or more of taxable gross sales are retail sales
  • Wholesaler is a business in which more than 50 percent of taxable gross sales are wholesale sales
  • Contractors must obtain information from subcontractors in order to deduct payments made to the subcontractors. Information to be obtained and maintained includes name, address, business tax license number or contractor’s license number, and amount paid to the subcontractor
  • The personal property tax credit can offset up to 50 percent of the total business tax liability and is no longer limited to the local portion of the business tax
  • Local governments will continue to receive revenue from business tax collections
  • The Commissioner of Revenue is given flexibility in implementing these changes
Effective date: July 1, 2009.

Top

 

Professional Privilege Tax: NBA & NHL Players
Public Chapter 530, Sections 64-66, imposes the professional privilege tax on National Basketball Association and National Hockey League players who play games in the state and allocates the proceeds of the tax to the municipality. The total tax is equal to $2,500 per game with a three (3) game annual cap.

Effective date: July 1, 2009.

Top

 

Inheritance Tax: Automatic Extension
Public Chapter 530, Section 97, provides an automatic twelve month extension for the filing of the inheritance tax return. The request for extension must be made in writing, either on a form prescribed by the Commissioner or by providing a copy of the request for an automatic extension of time to file the federal estate tax return. The extension request is not filed on the original due date of the return; rather, it must be attached to the return when it is filed on or before the extended due date.

Effective date: June 25, 2009.

Top

 

Coal Severance Tax: Increased Tax on Coal Products
Public Chapter 138 increases the coal severance tax to the following rates: (1) On or after July 1, 2009, through June 30, 2011, 50 cents per ton; (2) On or after July 1, 2011, through June 30, 2013, 75 cents per ton; and (3) On or after July 1, 2013, $1.00 per ton. Further, the amount of the tax that is allocated to the Department of Revenue is reduced from 3 percent of the tax plus all of the interest and penalty collected to 1.125 percent of the tax. Finally, during the fiscal years 2009-2010 and 2010-2011 only, the Department of Revenue is required to retain an amount sufficient to recover necessary administrative expenses associated with computer programming or software changes and decreased revenue as a result of this Act from the amount of the tax on coal products otherwise remitted to counties pursuant to Tenn. Code Ann. Section 67-7-110.

Effective date: July 1, 2009.

Top

 

Petroleum Tax: Obsolete References
Public Chapter 530, Section 98, updates obsolete references in the petroleum tax statute.

Effective date: June 25, 2009.

Top

 

Petroleum Tax: Dyed Motor Fuel Penalty
Public Chapter 530, Section 99, provides that the penalty for unauthorized use of dyed motor fuel will not apply to agricultural vehicles used solely for transferring harvested crops from the field to a storage facility if the distance traveled on the highway does not exceed five miles.

Effective date: June 25, 2009.

Top

 

Litigation Tax: “Statewide Automated Victim Information and Notification System Fund”
Public Chapter 488, Section 1, imposes an additional litigation tax of $1.00 on criminal cases to fund grants for a 24-hour a day victim information and notification system to be operated by the Tennessee sheriff’s association.

Effective date: July 1, 2009.

Top

 

Qualified Commercial Financing Entities
Public Chapter 530, Sections 105-106, provides that the provisions of the property tax relating to the assessment of a stockholder on shares of stock in lieu of assessing the company on its capital stock shall not apply to qualified commercial financing entities. “Qualified commercial financing entity” is defined as a person that qualified for the credit in Tenn. Code Ann. Section 67-6-224 that primarily finances wholesale and retail transactions related to the purchase or lease of industrial equipment, machinery, vehicles, or goods manufactured by its affiliates and is certified for such designation by the Commissioner of Revenue and the Commissioner of Economic and Community Development. It also provides that a qualified commercial financing entity shall be allowed to charge a rate of interest not to exceed 24 percent per annum.

Effective date: June 25, 2009, and shall apply to tax years beginning on or after January 1, 2009.

Top

 

Property Tax: Prosthetic Surgical Kits
Public Chapter 530, Section 131, provides that, for property tax purposes, prosthetic surgical kits shall be considered “inventories of merchandise held by merchants and businesses for sale and exchange” as to the typical stock on hand at the premises of the merchant, or when held for 30 days or less by a customer for use in surgeries, provided that the proceeds of the transaction are subject to business tax. Prosthetic surgical kits leased or consigned to the same customer/user for longer than 30 days shall be considered leased tangible personal property assessable to the customer/user.

Effective date: January 1, 2010.

Top

 

Tennessee Small Business Investment Company (TNInvestco) Credit Act
Public Chapter 610 offers $120 million in gross premiums tax credits to insurance companies that invest in companies certified by the State of Tennessee as "TNInvestcos." A total of six TNInvestcos will be authorized to invest funds in qualifying Tennessee small and start-up businesses. Qualified investments by TNInvestcos can take the form of debt, equity, or a hybrid of the two. The tax credits will be allocated among the six TNInvestcos, each of which must apply for an allocation of tax credits. Utilizing standardized criteria, Tennessee Department of Economic and Community Development ("ECD") and the Tennessee Department of Revenue, in conjunction with the Tennessee Technology Department Corporation, will award the credits to eligible companies in $20 million credit allocations no later than December 31, 2009. No more than two credit allocations may be issued to a single TNInvestco. Interested parties must apply to ECD for certification as a TNInvestco no later than the close of business on October 1, 2009. A nonrefundable application fee of $7,500 must be submitted at the time of application. Irrevocable commitments equal to the requested tax credit allocation must be submitted to ECD from participating insurance companies and investors no later than November 30, 2009.

Effective date: July 9, 2009. Please see additional TNInvestco information on ECD’s Web site at www.TN.gov/ecd.

Top

 

Multi-State Tax Commission Joint Audit Program
Public Chapter 530, Sections 95-96, authorizes the Department of Revenue to participate in the Multistate Tax Commission Joint Audit Program.

Effective date: June 25, 2009.

Top

 

Electronic Payments
Public Chapter 530, Section 94, lowers the threshold for required electronic filing and payment for sales and use tax purposes from $2,500 to $1,000. The return must be filed electronically and payment must be made electronically if the taxpayer’s average monthly sales and use tax liability exceeds $1,000. The average liability is determined by dividing the amount of tax due during the past consecutive 12 months by the number of returns actually filed. This section also clarifies that franchise and excise tax quarterly estimated payments must be remitted electronically if the payment exceeds $2,500. The threshold for required electronic payment of the franchise and excise tax return is $10,000.

Effective date: June 25, 2009.

Top

 

TVA Payments in Lieu of Tax
Public Chapter 530, Sections 100-101, updates a statute regarding TVA payments in lieu of tax by providing that the Department of Revenue, rather than the Comptroller, will calculate the payments to local governments due under the statute.

Effective date: June 25, 2009.

Top

 

Attorney’s Fees
Public Chapter 530, Section 102, provides that the state shall be deemed the prevailing party for purposes of awarding attorneys’ fees in any case in which the taxpayer has been found by a court to have committed fraud.

Effective date: June 25, 2009.

Top

 

Household Employees
Public Chapter 522 requires the Department of Revenue and other appropriate state departments and agencies to consult with the Tennessee congressional delegation and appropriate federal agencies on the possibility of simplifying requirements of complying with state and federal laws on employment of household employees.

Effective date: June 25, 2009.

Top

 

Sunset Date for the Department of Revenue
Public Chapter 443 extends the sunset date for the Department of Revenue to June 30, 2014.

Effective date: June 23, 2009.

Top

 

Payment of Fees
Public Chapter 530, Section 107, allows the payment of titling and registration fees by credit card, and authorizes the Commissioner to impose a surcharge or convenience fee upon persons making such payments to offset the administrative fees the Commissioner may be obligated to pay to credit card issuers.

Effective date: June 25, 2009.

Top

 

Fees Due for Noting Liens
Public Chapter 530, Section 108, increases the fee for noting liens and extensions of mortgages on certificates of title from $5.00 to $5.50, which makes this fee consistent with the fee for issuing certificates of title.

Effective date: June 25, 2009.

Top

 

Application for Certificate of Title or Registration
Public Chapter 530, Sections 109-110, clarifies that a post office box is not sufficient proof of residency for purposes of issuing a certificate of title or registration.

Effective date: June 25, 2009.

Top

 

Personal Buses
Public Chapter 530, Section 111, clarifies the registration fees applicable to buses that transport passengers “for hire” versus those that are used in a trade or business but are not for hire.

Effective date: June 25, 2009.

Top

 

Signature on Application for Certificate of Title
Public Chapter 530, Section 112, allows the Department to accept signatures on a certificate of title application that are captured electronically in a manner prescribed by the Department. Previously, signatures were required to be made with pen and ink.

Effective date: June 25, 2009.

Top

 

Reissuance of Plates
Public Chapter 530, Section 113, extends from five to eight the maximum number of years that may elapse before new registration plates must be issued.

Effective date: June 25, 2009.

Top

 

OEM Headquarters Company Special Purpose Plate
Public Chapter 530, Sections 116-122, permits the issuance of a special purpose license plate under the category of “OEM headquarters company.” An OEM headquarters company is defined as an original equipment manufacturer that is engaged in the business of manufacturing motor vehicles and qualifies to receive the credit provided in Section 67-6-224 or any affiliate thereof.

Effective date: January 1, 2010.

Top

 

Number of Dealer Plates
Public Chapter 530, Sections 123-124, decreases the limit on the number of dealer plates a dealer may have from three hundred twenty-five (325) to two hundred twenty-five (225).

Effective date: January 1, 2010.

Top

 

OEM Headquarters Company Plates Exempt From Fees
Public Chapter 530, Sections 125-126, provides that OEM headquarters company vehicles shall be exempt from titling and registration fees. It also provides that OEM headquarters companies may apply to the Commissioner of Revenue to be exempt from wheel taxes on OEM headquarters company vehicles.

Effective date: June 25, 2009.

Top

 

Trailers
Public Chapter 530, Section 127, clarifies that trailers owned by farmers and used for agricultural purposes are not required to be titled and registered.

Effective date: June 25, 2009.

Top

 

Antique Motor Vehicles
Public Chapter 265 revises the definition of “antique motor vehicle” to permit the vehicle to be used on the highways for certain specified purposes such as selling the vehicle, testing its operation, or obtaining repairs or maintenance.

Effective date: July 1, 2009.

Top

 

Manufactured Home Affixed to Real Property
Public Chapter 132 requires owners of manufactured homes affixed to real property to surrender the certificate of title for cancellation. Previously, surrender of the certificate of title for cancellation was not required. This chapter permits the owner to submit the original manufacturer’s certificate of origin in lieu of a certificate of title in the event the manufactured home is not covered by a certificate of title. This chapter requires that the affidavit of affixation contain a statement as to whether the manufactured home is covered by a certificate of title or by a manufacturer’s statement of origin. It further deletes the requirement that the decal number of the permit decal affixed to the home’s electrical box be provided on the affidavit. This chapter further requires that the affidavit of affixation be a separate document.

Effective date: July 1, 2009.

Top

 

Emissions test— Remote Sensing Motor Vehicle Inspection
Public Chapter 123 authorizes the air pollution control board to provide an inspection and maintenance program in those counties required to have such programs through the use of enhanced technology of remote sensing devices in lieu of the requirement for passing vehicles through an inspection facility. This chapter also requires any vendor performing such enhanced emissions tests to permanently purge all identifying data related to any vehicles that are not registered in a county required to have an inspection program.

Effective date: May 5, 2009.

Top

 

Specialty Plates
Public Chapter 589 creates several new specialty earmarked license plates:
  • Music City Inc. Foundation
  • United Way
  • Cherohala Skyway
  • TN SOLAR POWER!
  • Nurses
  • I RECYCLE
  • Tennessee Off-Highway Vehicle Association (TOHVA)
  • Colon Cancer Awareness
  • In God We Trust
  • Support Our Troops
  • Pi Kappa Alpha
  • Niswonger Children’s Hospital
  • Teachers
  • Rotary International
This chapter further permits former elected and former appointed municipal court judges to qualify for judiciary registration plates. This chapter authorizes the issuance of the University of Illinois collegiate license plate.

This chapter also reauthorizes the National Fraternal Order of Police (FOP) and the Street Rod cultural license plates as new specialty earmarked license plates. This chapter authorizes the issuance of the Emergency Personnel and Firefighter special purpose license plates and the FOP license plate to owners of motorcycles. This chapter makes technical changes to the definitions of the types of specialty plates.

This chapter further provides that the Department shall facilitate delivery of any new specialty earmarked, emergency, firefighter, national guard, memorial, or military plate authorized for a motorcycle in a manner that maximizes efficiency and costs and is not unduly burdensome to either the Department or county clerks. This chapter also directs that the Department shall facilitate the continued utilization of existing, issued General Assembly special purpose plates to members or their immediate families upon re-election by issuing decals or by any other cost-efficient manner.

The public chapter also extends the time period for the Share the Road, Tennessee Urban Forestry Council, Appalachian Trail, Shriners, Tennessee Association of Realtors, Tennessee Emergency Medical Services Education Association (TEMSA), and Appalachian Quilt Trail license plates to meet all issuance requirements. This chapter also deems the Civil War Preservation license plate to be the official license plate for the Tennessee Civil War sesquicentennial commemoration, and extends the time period for this plate to meet issuance requirements.

Effective date: June 29, 2009, for purposes of extending the time periods for certain specialty plates to meet all issuance requirements and July 1, 2009, for all other purposes.

Top

 

Disposal of Abandoned Vehicles to Demolishers
Public Chapter 252 increases from five to ten years the minimum age of an abandoned vehicle that can be destroyed without title and notification of last owner of record and lien holder.

Effective date: May 20, 2009.

Top

 

Disability License Plates and Placards
Public Chapter 264 authorizes licensed nurse practitioners and physician assistants to certify disability or deafness to the Department for the purpose of obtaining disabled license plates and placards on the condition that the physician and the nurse practitioner or physician assistant have jointly included the authority to issue such certification in their written protocols. Previously, physicians and Christian Science practitioners were the only individuals authorized to certify disability.

Effective date: May 20, 2009.

Top

 

Licensed Distributor Reports
Public Chapter 340 modifies the requirements for the submission of licensed distributor reports by licensed agents. This chapter decreases from twenty to fifteen the number of days for submitting such reports after the end of each calendar month. This chapter further requires that sales of cigarettes manufactured by participating manufacturers must be included in the report, and sales of stamped and unstamped cigarettes to other tobacco wholesalers must be reported. The chapter increases from five to seven years the period in which invoices and documentation of sales must be maintained. This chapter imposes a monetary penalty in the amount of $100 a day for failure of a tobacco distributor or wholesaler to provide certain information to Commissioner of Revenue. In addition, the submission of a false statement in a report is a Class E felony. It further authorizes the Commissioner of Revenue to revoke or suspend the license of an agent for knowingly filing false reports.

Effective date: July 1, 2009.

Top

 

Notification of Determination to Remove Brand from Directory
Public Chapter 343 requires that at least 15 days prior to removal of a tobacco product manufacturer or brand family from the Tobacco Product Manufacturer Directory, the Commissioner of Revenue must post notification of such removal in the Directory and transmit notice to any person who provides an email address to the Commissioner for the purposes of receiving notifications of Directory updates via e-mail.

Effective date: July 1, 2009.

Top

 

Requirement of Bond for Non-Participating Manufacturers
Public Chapter 381 requires posting of a corporate surety bond of $100,000 in order for a non-participating manufacturer to be added to the Tobacco Product Manufacturer Directory. This chapter directs the State to execute on the bond in the event the non-participating manufacturer fails to perform its duties and obligations and to recover first any amounts the manufacturer failed to place into escrow.

Effective date: June 9, 2009.

Top

 

Direct Shipper License for Wine
Public Chapter 348 creates a direct shipper’s license to be issued by the Alcoholic Beverage Commission that would allow an in-state or out-of-state entity to ship wine directly to consumers age 21 years or older in Tennessee for personal use. A direct shipper cannot ship more than nine liters to any person in a single calendar month and no more than 27 liters in a calendar year. Among other requirements, to hold a license the direct shipper must pay all sales and gallonage taxes related to the sale of wine.

Effective date: July 1, 2009.

Top

 

Sales of Wine by Out-of-State Wineries Permitted
Public Chapter 273 revises the Tennessee Grape and Wine Law by allowing out-of-state wineries to apply for and obtain winery licenses in Tennessee. In addition to several other provisions related to the sale of wine, this chapter authorizes wineries located in Tennessee to sell no more than five cases to any single retail customer in one day and authorizes purchasers of wine from any licensed winery to transport no more than five cases of wine into and within Tennessee in one day. Any wine transported into the state must be accompanied by a bill of sale that reflects that Tennessee taxes have been paid. This chapter also requires licensed wineries to pay applicable Tennessee taxes and requires Commissioner of Revenue to establish procedures for record keeping concerning taxes paid.

Effective date: May 21, 2009.

Top

 

Transportation of Untaxed Alcoholic Beverages
Public Chapter 434 allows individuals to transport into or within the state up to five gallons of untaxed alcoholic beverages for personal or household use.

Effective date: June 12, 2009.

Top

 

Sales of Alcoholic Beverages
Public Chapter 395 defines “gift” to mean the unauthorized distribution of alcoholic beverages by a licensee for which no payment is expected or received. This chapter excludes from the definitions of “gift” and “retail sale” any transactions between a licensee and its employees for which no payment is received, or depletions from a licensee’s inventory where all taxes have been paid. This chapter also permits manufacturers to make complimentary distributions to its employees and to others for routine or marketing purposes. It prohibits a distiller from marking complimentary distributions to a wholesaler except as samples.

Effective date: June 9, 2009.

Top

 

Sales of Collectible Alcoholic Beverages
Public Chapter 484 creates a license to be issued by the Alcoholic Beverage Commission permitting alcoholic beverage collectors to purchase and sell commemorative bottles containing alcoholic beverages. The chapter specifies that an alcoholic beverage collector must collect and remit applicable sales tax to the Department of Revenue on its sales. Also, the collector must remit the applicable gallonage tax if the collector cannot demonstrate that the alcoholic beverage was purchased from a licensed retailer.

Effective date: June 23, 2009.

Top

 

Alcoholic Beverages in an Historic Inn
Public Chapter 168 adds to those facilities authorized to sell alcoholic beverages for on-premises consumption as an historic inn the Buckhorn Inn in Sevier County and Blackberry Farm in Blount County.

Effective date: May 7, 2009.

Top

 

Alcoholic Beverages in an Historic Interpretive Center
Public Chapter 266 removes the requirement that the Center for Southern Folklore in Memphis be located in a restored theater and instead requires it be located in an historic area.

Effective date: May 20, 2009.

Top

 

Alcoholic Beverages in a Hotel
Public Chapter 357 redefines “hotel” to clarify that the property of Blackberry Farm in Blount County may not be contiguous and may be divided by a public or private road. It further clarifies that the operators of Blackberry Farm may sell alcoholic beverages in any location identified to the alcoholic beverage commission and held out to the public as part of the hotel property.

Effective date: June 5, 2009.

Top

 

Alcoholic Beverages in a Tourist Resort
Public Chapter 572 adds to those facilities authorized to sell alcoholic beverages for on-premises consumption as a premier type tourist resort one that is privately-owned and has a restaurant and marina located in Union County. This chapter also decreases from five to three the number of days a week a public place must serve at least one meal per day in order to meet the definition of “restaurant” for purposes of serving alcoholic beverages.
Effective date: July 1, 2009.

Public Chapter 49 adds to those facilities authorized to sell alcoholic beverages for on-premises consumption as a premier type tourist resort the Meadow Creek Mountain Rustic Resort in Cocke County.
Effective date: April 9, 2009.

Public Chapter 109 adds to those facilities authorized to sell alcoholic beverages for on-premises consumption as a premier type tourist resort the East Fork Stables in Fentress County.
Effective date: April 30, 2009.

Public Chapter 98 adds to those facilities authorized to sell alcoholic beverages for on-premises consumption as a premier type tourist resort the Laurel Cove in Williamson County.
Effective date: April 27, 2009.

Top