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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I work at a business in Tennessee where over 99% of the services

Resolved Question:

I work at a business in Tennessee where over 99% of the services we offer are exempt from charging sales tax to our customers. A portion of the remaining services are for the repair of shipping containers. Tennessee tax laws state that repair work is not exempt from sales tax...but an exemption of Tenn. Code Ann. Section 67-6-102 says...

"Occasional and isolated sales, also known as
casual and isolated sales, are sales made by
persons not in the business of regularly selling
the type of property being sold. These sales are
not subject to tax."

can I apply this exemption for the container repair work?
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

Unfortunately you could not use this exemption. This exemption is more for situations where you have an individual that just happens to do something and get paid as a one-time deal. This sounds like something that your business does fairly regularly.

Customer:

this is not something we do regulary at all. maybe 10 times out of hundreds of transactions.

Megan C :

But you're still a business. This is meant for something different...like an individual doing a taxable repair one time for their friend.

Megan C :

It's for truly occasional work. Please let me know if this does not make sense.

Customer:

i guess but ther must be another exemption. I worked before for 3 different tennesse companies with the exact same business and they never charged sales tax for this type of service. Again these are hard sided containers for use transporting material over highway and railroad. repairs consist of painting and repairing small holes. Am there something in the code I am missing?

Megan C :

Are you in the business of buying and selling shipping containers?

Megan C :

What is it exactly that you typically do?

Customer:

process waste material. we do not buy or sell shipping containers. one of our customers asked us to repair a few of their containers that haul waste.

Megan C :

Oh I see. I thought you were repairing something that you sold.

Customer:

no

Megan C :

So this would be an occasional isolated event and you could apply that exemption

Customer:

thank you. that helps.

Customer:

can I receive this to my e-mail.

Megan C :

Yes, once you rate and exit out the site should send you an email transcript of this.

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and other Finance Specialists are ready to help you
Expert:  Megan C replied 2 years ago.
Thanks, J for your positive rating. Please come back and visit me any time you have a question that needs answered. It was a pleasure working with you today.

Thanks!