HOUSE BILL NO. 685

By Representatives Rhinehart, Head

Substituted for: Senate Bill No. 1178

By Senator Rochelle

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales and use tax on items for distribution in commerce.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 67-6-102(25), is amended by deleting the words "and provided further" in the last proviso and by substituting instead the word "provided".

SECTION 2. Tennessee Code Annotated, Section 67-6-102(25), is amended by adding the following language at the end of the subsection:

and provided further, that "sales price" does not include federal excise tax on diesel fuel purchased for off-road use as provided in Tennessee Code Annotated, Title 67, Chapter 3, whether or not such tax is required by law to be passed on to the ultimate consumer;

SECTION 3. This law shall take effect on January 1, 1998, the public welfare requiring it.