CHAPTER NO. 1084

HOUSE BILL NO. 3226

By Representatives Kent, Miller

Substituted for: Senate Bill No. 3194

By Senator Ford

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, Part 3, to exempt certain products sold to or used by fire protection sprinkler contractors.

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

SECTION 1. Tennessee Code Annotated, Title 67, Chapter 6, Part 3Error! Bookmark not defined., is amended by adding the following as a new section to be appropriately designated:

Section __.

(a) There shall be a credit of the amount of any special contractor tax paid in another state against the tax imposed by this chapter for materials sold to or used by a fire protection sprinkler contractor; provided that such materials are used by the fire protection sprinkler contractor to fabricate pipe and pipe fittings or use valves and pipe fittings for application or use by the fire protection sprinkler contractor in the performance of a contract outside the state. The credit shall be limited to the amount of tax attributable to the value of such materials.

(b) For the purpose of this section, "fire protection sprinkler contractor" means any person engaged in those activities described under Industry Group 349, Miscellaneous Fabricated Metal Products, 3494 Valves and Pipe Fittings, Not Elsewhere Classified and 3498 Fabricated Pipe and Pipe Fittings, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget of the federal government.

(c) For the purpose of this section, "fabricated pipe and pipe fittings" means those products listed under Industry 3498, Fabricated Pipe and Pipe Fittings, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget of the federal government.

(d) For the purpose of this section, "valves and pipe fittings" means those products listed under Industry 3494, Valves and Pipe Fittings, Not Elsewhere Classified, of major Group 34 of the Standard Industrial Classification Index of 1972, prepared by the office of management and budget of the federal government.

SECTION 2. This act shall take effect July 1, 1998, the public welfare requiring it.

PASSED:

April 29, 1998

APPROVED this 19th day of May 1998