Tennessee Governor Signs Law Exempting Computer Software for Personal Use From Sales Tax

The Tennessee Governor May 25 signed a law exempting from sales and use taxes certain computer software services. The law includes measures: 1) exempting a person, the person’s agent, or direct employees of the person from sales and use taxes on the installation and repair of computer software, if the services are used for the person’s own use and consumption; 2) providing the definition of the term “direct employee;" 3) extending the exemption for fabrication of computer software to apply to a person’s agent; and 4) exempting from the tax access and use of the software in the possession of ...