Sales Tax Partially Applies to Vehicles Purchased with Grant from Veterans Affairs in Tennessee

Wednesday, December 12th, 2018

 
 
Adaptive automobiles in a car lot.
Share
Link
Tennessee
Automotive

Tennessee recently released a notice clarifying how sales tax applies to automobiles purchased using a Veterans Affairs (VA) Automobile Grant. The VA provides a once in a lifetime grant towards the purchase of a new or used vehicle for qualifying service members or veterans with a service-connected disability. The portion of the price paid by the VA grant is taxable.

However, the portion of the purchase price in excess of the grant is exempt. Dealers must determine the taxable and exempt portion of the purchase price. The notice provides examples of how to figure these amounts.

The VA publishes a new maximum grant amount annually on October 1. The maximum VA automobile grant for October 1, 2018, through September 30, 2019 is $21,058.69. Note that exemptions for (1) automobile adaptive equipment (ASSE) or (2) mobility enhancing equipment may also apply.

https://www.ttrus.com/SalesTaxPartiallyAppliestoVehiclesPurchasedwithGrantfromVeteransAffairsinTennessee


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

New Commercial Farmer Certification Process in Louisiana

Monday, January 21st, 2019 -Effective January, 15, 2019, the Louisiana Department of Revenue has a new certification process for commercia...

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...