Public Chapter 238

HOUSE BILL NO. 555

By Representative Wood

Substituted for: Senate Bill No. 304

By Senator Fowler

AN ACT to amend Tennessee Code Annotated, Section 67-6-313, relative to taxation of services to repair certain computer equipment.

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

SECTION 1. Tennessee Code Annotated, Section 67-6-313, is amended by adding the following new subsection:

( ) There is exempt from sales and use tax, computer media exchange services where the resulting media is shipped out of Tennessee or to a government agency or non-taxable entity located within Tennessee. "Media exchange services" means the process of transferring stored data from one type of storage medium to another type of storage medium, including, but not limited to, magnetic tapes, magnetic cartridges, CD ROM, magnetic disks/diskettes, laser disks/diskettes, optical disks/diskettes, or any similar media that is used to store or transfer data from one computer to another.

SECTION 3. This act shall take effect July 1, 1997, the public welfare requiring it.