09/26/2023 | News release | Distributed by Public on 09/26/2023 06:20
Sales/Use Tax Exemption for Firearm Safes: During an Extraordinary Session of the Tennessee Legislature that convened and adjourned during August 2023, one of the few bills passed by the Legislature and signed by Governor Lee was Senate Bill 7085, now 2023 Public Chapter (Extraordinary Session) 0001, which creates a permanent sales and use tax exemption for "firearm safes" and "firearm safety devices," effective November 1, 2023. In conjunction with this new law, the Tennessee Department of Revenue (Department) issued Notice #23-16 in late August 2023, which addresses the definition of "firearm safe" and "firearm safety device" for purposes of this exemption. A firearm safe is defined as a locking container or other enclosure, including glass-faced containers, equipped with a padlock, key lock, combination lock, or other locking device, and intended for the secure storage of one or more firearms. As referenced in the Department's Notice, a firearm safety device is defined as: (i) a device that, when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating the device, or (ii) a device to be equipped or installed on a firearm that is designed to prevent the operation of a firearm by anyone who does not have the authorized access to the firearm. This Notice also addresses the reporting requirements for dealers making exempt sales of firearm safes and firearm safety devices. More information can be found here.