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Inventories are taxable only if they are not subject to the business license tax. Motor vehicles are subject to annual privilege taxes. Household and personal effects up to $7,500 in worth, deposits, growing crops, and goods in transit are exempt.
Tangible Personal Property is all property owned or held by a business to operate that business, including but not limited to, furniture, fixtures, vehicles, tools, machinery, equipment, raw materials, and supplies.
The basic goals of the personal property audit program are to verify that the information reported by the taxpayer is accurate and that the appraisal on the account is correct, to update assessment rolls, to assist property owners in understanding reporting requirements, and to create equity by assuring that everyone ...
§ 67-5-901(a), inventories of merchandise held by merchants and businesses for sale and exchange by persons taxable under the Business Tax Act (codified at T.C.A. §§ 67-4-701 et seq.) are exempt from the TPP tax.
§ 67-6-510(a), stating that ?[w]hen an item of tangible personal property is taken in trade as a credit or part payment on the sale of new or used articles, the Sales and Use Tax shall be computed and paid on the net difference between the sales price of the new or used article sold and any credit actually given for ...