Section 1320-05-01-.49 - PREMIUMS, GIFTS AND TRADING STAMPS(1) Items of tangible personal property which are withdrawn from a dealer's stock for which a resale certificate has been issued his supplier, or which are purchased for use as premiums or gifts, are subject to the Sales or Use Tax.(2) Persons engaged in the business of redeeming trading stamps which have been given by other dealers shall be deemed to be a dealer and shall be liable for the Sales or Use Tax on the retail value of the merchandise given for the stamps: this value shall be deemed to be that which is assigned to the books of stamps. Such dealers shall likewise be liable for any Sale or Use Tax on the purchases and/or distribution of any catalogs, stamps, etc., in this State.Tenn. Comp. R. & Regs. 1320-05-01-.49
Original rule certified June 7, 1974.Authority: T.C.A. §§ 67-1-102 and 67-6-402.