TENNESSEE DEPARTMENT OF REVENUE
LETTER RULING #00-38
Letter rulings are binding on the Department only with respect to the
individual taxpayer being addressed in the ruling. This presentation of the
ruling in a redacted form is informational only. Rulings are made in
response to particular facts presented and are not intended necessarily as
statements of Department policy.
Application of the sales and use tax to a cooperative direct mail advertising
This letter ruling is an interpretation and application of the tax law as it relates to
a specific set of existing facts furnished to the Department by the taxpayer. The
rulings herein are binding upon the Department and are applicable only to the
individual taxpayer being addressed.
This letter ruling may be revoked or modified by the Commissioner at any time.
Such revocation or modification shall be effective retroactively unless the
following conditions are met, in which case the revocation shall be prospective
The taxpayer must not have misstated or omitted material
facts involved in the transaction;
Facts that develop later must not be materially different from
the facts upon which the ruling was based;
The applicable law must not have been changed or
The ruling must have been issued originally with respect to a
prospective or proposed transaction; and
The taxpayer directly involved must have acted in good faith
in relying upon the ruling, and a retroactive revocation of the ruling
must inure to the taxpayer’s detriment.
[TAXPAYER] is in the direct mail advertising business. The taxpayer’s principal
place of business is in [STATE OTHER THAN TENNESSEE]. At this time the
taxpayer does not solicit or sell its services in Tennessee. The taxpayer does
have a single employee who resides in Tennessee. That employee maintains a
home office, and the taxpayer provides certain office equipment so that this
employee can work from home. This employee engages in sales activities with