Tennessee Department of Revenue Issues Sales and Use Tax Exemption for Firearm Safes and Safety Devices
The Tennessee Department of Revenue has recently issued Important Notice #23-16 regarding a permanent sales and use tax exemption for firearm safes and firearm safety devices. Effective Nov. 1, 2023, HB7012/SB7085 (2023) creates a permanent sales and use tax exemption for firearm safes and firearm safety devices.
A “firearm safe” is defined as a locking container or other enclosure, excluding glass-faced containers, equipped with a padlock, key lock, combination lock or other locking device that is designed and intended for the secure storage of one or more firearms.
Firearm Safety Devices
A “firearm safety device” is defined as (1) a device that, when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating the device or (2) a device to be equipped or installed on a firearm that is designed to prevent the operation of a firearm by anyone who does not have authorized access to the firearm.
Reporting Exempt Sales
All dealers must properly report exempt sales of firearm safes and firearm safety devices. For the periods beginning on or after Nov. 1, 2023, sales should be reported as follows:
- Report all sales (taxable and non-taxable) on Page 1, Line 1 (Gross Sales) of the sales tax return.
- Report all sales of exempt firearm safes and firearm safety devices on Schedule A, Line 9 (Other deductions).
For more information, visit the Department of Revenue’s website.