2015 Tennessee Code
Title 67 - Taxes And Licenses
Chapter 5 - Property Taxes
Part 2 - Exemptions
§ 67-5-217 - Property in transit.

(a) Tangible personal property that:

(1) Is moving in interstate commerce through or over the territory of the state of Tennessee; or

(2) Was consigned to a warehouse within the state of Tennessee from outside the state of Tennessee, for storage, in transit, to a final destination, whether specified when transportation begins or afterwards, that is also outside the state of Tennessee,

shall be deemed not to have acquired a situs in the state of Tennessee for purposes of ad valorem taxation.

(b) (1) Tangible personal property transported to a plant, warehouse or establishment within the state of Tennessee, from outside the state of Tennessee, for storage or repackaging, and held for eventual sale or other disposition, other than at retail, to a destination, whether specified when transportation begins or afterwards, that is outside this state, shall be deemed not to have acquired a situs within the state of Tennessee for purposes of ad valorem taxation.

(2) In the event such tangible personal property mentioned in subdivision (b)(1) is held for sale or eventual disposition to destinations both within and without the state of Tennessee, then this exemption shall be applicable to that percentage of the value of such tangible personal property, in the same proportion that sales or other dispositions to final destinations outside of the state of Tennessee, during the preceding year, bears to the total sales or dispositions of such tangible personal property during such preceding year.