Tennessee Tax Changes - October 2024
Week Of 09.30.2024
Tennessee Property Tax:
- The maximum acreage eligible for a greenbelt valuation has been increased from 1,500 acres to 3,000 acres, effective for tax years beginning on or after January 1, 2025.
Tennessee Sales & Use Taxes:
- Piping for a municipal fresh water plant qualifies as industrial machinery, according to a recent ruling by the Tennessee Department of Revenue. The ruling states that the piping, when installed, constitutes industrial equipment because it is necessary for the processing of raw water into potable water.
- Tornado victims in Morgan County are eligible for a sales tax refund, regardless of whether they received federal assistance or the event qualified as a federally declared disaster. The deadline to file for a sales tax refund is November 1, 2024.
Week Of 09.30.2024
Tennessee Property Tax—Tennessee increases acreage eligible for greenbelt exemption.
L. 2024, H2054 (c. 978), applicable to tax years beginning on or after 01/01/2025, increases the maximum acreage that may be covered by a greenbelt valuation from 1,500 acres to 3,000 acres.
Tennessee Sales & Use Taxes—Tennessee rules piping for water plant qualified as industrial machinery.
The Tennessee Department of Revenue has ruled that a contract may purchase piping for a municipal fresh water plant because the piping when installed constituted industrial equipment. The plant permitted water to be drawn from a river and converted into fresh water. The Department ruled that the piping equipment purchased by the contractor qualified for the industrial equipment exemption because it met all four requirements to qualify for that exemption. These requirements are met because: (1) the equipment was purchased on behalf of a manufacturer as the water generated by the plant is sold to its customers; (2) the piping qualified as machinery and equipment; (3) the piping was necessary to the processing of raw water into potable water; and (4) the piping was primarily for the processing of the raw water into potable water. (Tennessee Letter Ruling No. 24-07, 08/21/2024.)
Tennessee Sales & Use Taxes—Tennessee law provides relief for tornado victims in Morgan County.
L. 2024, S2074 (c. 979), effective 05/21/2024, provides that tornado victims in Morgan County do not have to show that they received federal assistance or that the event qualified as a federally declared disaster to qualify for the sales tax refund for disaster victims. The law also establishes the deadline for victims to file for a sales tax refund as November 1, 2024.
Week Of 09.30.2024
Tennessee Property Tax—Tennessee increases acreage eligible for greenbelt exemption.
L. 2024, H2054 (c. 978), applicable to tax years beginning on or after 01/01/2025, increases the maximum acreage that may be covered by a greenbelt valuation from 1,500 acres to 3,000 acres.
Tennessee Sales & Use Taxes—Tennessee rules piping for water plant qualified as industrial machinery.
The Tennessee Department of Revenue has ruled that a contract may purchase piping for a municipal fresh water plant because the piping when installed constituted industrial equipment. The plant permitted water to be drawn from a river and converted into fresh water. The Department ruled that the piping equipment purchased by the contractor qualified for the industrial equipment exemption because it met all four requirements to qualify for that exemption. These requirements are met because: (1) the equipment was purchased on behalf of a manufacturer as the water generated by the plant is sold to its customers; (2) the piping qualified as machinery and equipment; (3) the piping was necessary to the processing of raw water into potable water; and (4) the piping was primarily for the processing of the raw water into potable water. (Tennessee Letter Ruling No. 24-07, 08/21/2024.)
Tennessee Sales & Use Taxes—Tennessee law provides relief for tornado victims in Morgan County.
L. 2024, S2074 (c. 979), effective 05/21/2024, provides that tornado victims in Morgan County do not have to show that they received federal assistance or that the event qualified as a federally declared disaster to qualify for the sales tax refund for disaster victims. The law also establishes the deadline for victims to file for a sales tax refund as November 1, 2024.