Tennessee Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Tennessee Sales or Use Tax Applicable to Registration

 

State sales or use tax receipt to accompany Application for Certificate of Title. State sales and use tax 7%. State tax, 2.75% sales tax also applies from $1,600 to $3,200 on the sale or lease of a motor vehicle. Some counties and municipalities impose 1% to 2 ¾% sales tax not to exceed $44.00 per unit. NON-RESIDENT – Required to pay sales tax on vehicle to be registered out-of-state unless delivery is made in home state or non resident will move vehicle from Tennessee with three (3) days. CREDIT given on TRADE-IN vehicle. CREDIT allowed for similar tax paid to a reciprocating state. When a customer receives two vehicles from a dealer for one vehicle in an even trade, and no money changes hands, no taxes are collected on vehicles. Transfer documents must indicate the year, make and VIN of vehicles given in trade. MILITARY PEOPLE are exempt only if stationed at Fort Campbell, Millington Naval Station, or AEDC in Tullehoma. Applicant should contact the County Clerk of the country in which he intends to file an application to determine if a local sales or use tax is applicable. Taxes are paid to the dealer if purchased from him, and individual sales to the County Clerk. The General Assembly begins their annual sessions in January of each year. With the potential for amendments existing in each session, changes made after January 1 each year should be verified with the Department.