2010 Tennessee Code
Title 55 - Motor and Other Vehicles
Chapter 17 - Vehicle Licenses
Part 1 - Motor Vehicle Sales Licenses
55-17-123 - Exception for certain transactions.

55-17-123. Exception for certain transactions.

(a)  Notwithstanding § 55-17-109 or § 55-17-114, the transactions authorized by this section are permitted.

(b)  A producer of motor vehicles may lease no more than two (2) motor vehicles, and provide any maintenance ancillary thereto, of the same line-make as produced in this state by the producer, to each employee for each calendar year, under no less than a twelve-month closed-end lease; provided, that the total number of vehicles so leased each year shall not exceed the producer's total number of regular working employees in this state.

(c)  (1)  Any motor vehicle that is subject to a lease permitted under subsection (b) shall be purchased by the producer from any dealer of the same line-make as the leased motor vehicle.

     (2)  At the termination of any lease permitted by subsection (b), the motor vehicle shall be sold at an auction limited to any dealer who sells new or unused motor vehicles of the same line-make as the motor vehicle to be sold.

(d)  As used in this section:

     (1)  “Line-make” means motor vehicles of the same trade name for which separate dealership franchises are granted;

     (2)  “Producer” means any person, including related business entities, that manufactures or assembles new and unused motor vehicles in this state, and qualifies for the tax credit provided in § 67-4-2109(b)(2)(B)(i) on June 17, 2005; and

     (3)  “Related business entity” means any person that has more than thirty-five percent (35%) direct or indirect ownership interest in a producer on June 17, 2005, or is a one hundred percent (100%) owned subsidiary of a person who owns a one hundred percent (100%) interest in a producer on June 17, 2005.

(e)  (1)  A producer of motor vehicles may lease no more than three (3) motor vehicles, and provide any maintenance ancillary to the motor vehicles, of the same line-make as the producer or any related business entity produces, to each regular full-time working employee, as defined in § 67-4-2109(a)(6), under no less than a twelve-month closed-end lease; provided, that the total number of vehicles so leased to regular full-time working employees in this state shall not exceed the producer's total number of regular full-time working employees in this state.

     (2)  Any motor vehicle that is subject to a lease permitted under this subsection (e) shall be purchased by the producer from any dealer of the same line-make as the leased motor vehicle.

(f)  (1)  At the termination of any lease permitted under subsection (e), the motor vehicle may be held by the producer for no longer than ten (10) business days and shall be sold through a dealer that sells new and unused motor vehicles of the same line-make, to a regular full-time working employee of the producer. Each full-time working employee shall be entitled to purchase no more than one (1) motor vehicle per twelve-month period and must title the vehicle in the employee's name and shall retain the motor vehicle for no less than one hundred eighty (180) days from date of purchase.

     (2)  Thereafter, those motor vehicles not purchased shall be sold at an auction limited to any franchised dealer that sells new or unused motor vehicles of the same line-make as those being auctioned.

[Acts 1987, ch. 435, § 1; 2005, ch. 443, §§ 1-3; 2006, ch. 511, §§ 1, 2; 2007, ch. 181, § 1; 2009, ch. 530, §§ 12, 13.]