12-4-120 - State contractors required to register with department of revenue.
12-4-120. State contractors required to register with department of revenue.
(a) The state or other state entities shall not contract to acquire goods or services, and no person may contract to supply goods or services to the state or other state entities, unless, prior to or contemporaneous with entering into the contract, the person contracting to supply goods or services and its affiliates register with the department of revenue to collect and remit the sales and use tax levied by title 67, chapter 6; provided, nothing in this section shall require a person or affiliate to register if the person or affiliate does not make sales to customers in Tennessee of tangible personal property or services, which if the sales occurred wholly within Tennessee would be taxable under this chapter. This provision is specifically applicable to foreign persons, notwithstanding the fact that such foreign persons or their affiliates may not otherwise be legally obligated to collect and remit such tax.
(b) For purposes of this section:
(1) Affiliates means each and every affiliate of the person contracting with the state or other state entities, as the term affiliate is defined in § 48-103-102(1);
(2) Other state entities has the same meaning as in § 12-4-601; and
(3) Person or persons has the same meaning as in § 67-6-102(21) [now § 67-6-102(22)].
(c) The commissioner of revenue and the commissioner of finance and administration shall devise procedures to ensure compliance with the provisions of this section.
[Acts 2000, ch. 982, § 43.]