Incentive program in Tennessee.

Tennessee allowed an exemption for a manufacturing incentive program through which the manufacturer allows customers to earn points to purchase or obtain merchandise. The merchandise shipped to out-of-state customers was not taxable because title to and possession of the tangible personal property pass to the customer outside of the state. (Letter Ruling No. 01-25, Tennessee Department of Revenue, October 29, 2001, received February 21, 2002)

Posted on February 15, 2002