Tennessee – Lawnmowers Not Eligible for Agricultural Exemption

SALT Report 1350 – SALT Report 1350 – The Tennessee Department of Revenue issued a Letter Ruling regarding the taxability of lawnmowers and the use of agricultural exemptions.  For the sale of a lawnmower to be exempt under Tennessee Cod Ann. § 67-6-207, the following requirements must be met:

  • The sale is made to a qualified farmer or nurseryman
  • The lawnmower is properly considered an appliance; and
  • The lawnmower will be used directly and principally for the purpose of producing agricultural and nursery products for sale and use or consumption off the premises
The lawnmowers at issue are used for grounds keeping, path maintenance, cutting brush, mowing, and other activities. While such uses of the lawnmower may aid in the production of agricultural and nursery products, the Department determined that a lawnmower is not used solely for the purpose of producing product.  Therefore, lawnmowers are tangible personal property and the retail sale of a lawnmower will be subject to Tennessee sales and use tax unless another exemption from taxation applies.
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