Section 1320-05-01-.65 - SIGN MANUFACTURERS AND PAINTERS(1) Sales of signs which are and remain tangible personal property are subject to the Sales and Use Tax, based upon the actual sales price thereof. Charges for installing signs which are and remain personal property which are made in connection with the sale of the signs, and any charges for repairs or maintenance of signs which are and remain personal property are subject to the Sales Tax. Signs which are and remain tangible personal property are these which are not attached in a permanent fashion to buildings or which are not an integral part of such structure or buildings, or which are not displayed on structures securely anchored in the ground.(2) Sales of signs which are attached in a secured and permanent fashion to buildings, which are an integral part of such buildings, or which are displayed on structures securely anchored in the ground, are subject to the Sales Tax based on the selling price thereof. Any charges for installing, repairing or maintaining such signs are not subject to the tax, but the person so installing, repairing or maintaining such signs shall be regarded as the user and consumer of tangible personal property which is used in connection with such installation, repair or maintenance, and shall be liable for the Sales or Use Tax on such materials in this case, the tax is due on the actual selling price of the sign which is securely and permanently attached to the building or to structures bolted to the building or to structures permanently anchored in the ground on heavy wood or steel poles.(3) Persons engaged in the business of painting signs on buildings or other real or personal property shall be considered as rendering services, not subject to the tax. Sales of paint and any other tangible personal property to such persons are subject to the Sales and Use Tax.(4) Signs which are personal property and which are leased to others are subject to Sales or Use Tax. Where space on signs which are real property is leased to others, and where the lessor has a right to remove the signs at the end of a specified period to time, the lease shall not be regarded as a lease of tangible personal property subject to the Sales or Use Tax; any materials, supplies and equipment which are used in connection with the construction, upkeep, repair, or maintenance, however, are subject to the Sales or Use Tax.Tenn. Comp. R. & Regs. 1320-05-01-.65
Original rule certified June 7, 1974.Authority: T.C.A. §§67-101 and 67-3045.