HB 193

Present law establishes a sales and use tax exemption for motor vehicle s registered in this state if the vehicle is sold in certain c ircumstances to the armed forces. In order to qualify for the exemption, the purchaser must provide to the seller, or to the county clerk when appropriate, a copy of the official orders related to the stationing of the purchaser and, if applicable, the pu rchaser's status as a member of the active guard and reserve program. The orders must be retained in the seller's files and a copy must accompany the application for registration. The exemption only applies when the vehicle is titled and registered in th e name of the qualifying individual, either alone or jointly with a spouse or lineal relative. This bill adds a similar exempt ion for a motor vehicle registered in this state if the vehicle is sold to a qualifying member of the Tennessee national guard. Th is exemption applies only to the first $15,000 of the sales price and only to one vehicle within a five-year period. T o qualify for th is exemption, the purchaser must provide to the seller, or to the county clerk when appropriate, proof of the purchase r's status as a member of the Tennessee national guard and documentation from the member's national guard unit certifying that the member is in good standing. A copy of the proof and documentation must be retained in the seller's files and a copy must al s o accompany the application for registration.