Tennessee Utility Sales and Use Tax - The Basics

The State of Tennessee provides manufacturers, apartment owners, and long term health care facilities with state utility sales tax exemption opportunities.

Under these utility sales tax exemptions, you can recover up to 100% of your utility sales tax for up to 47 months but you can also obtain an exemption for payment of all or a portion of future utility sales taxes. An energy review is used to determine whether or not 50% of the energy is used in the manufacturing process. If 50% or more of your energy is used in manufacturing, you can obtain a 100% exemption.

For apartment owners, if all energy use is separately metered for residential use, then you can be eligible for a 100% exemption from utility sales taxes and can recover up to 47 months of utility sales tax overpayments.

For long term care facility owners, if electric and natural gas is used for resident care and if you are a non-profit corporation, then you are eligible for a 100% exemption from utility sales taxes and can recover up to 47 months of utility sales tax overpayments.

To see whether your business qualifies for this exemption, please visit Processing My Sales and Use Tax Exemption.