How to Apply for Sales Tax Exemption in Tennessee

To apply for a sales tax exemption in Tennessee, a qualifying nonprofit submits Form RV-F1306901 along with its IRS determination letter to the Tennessee Department of Revenue, most easily through the Tennessee Taxpayer Access Point (TNTAP), where you can file as a guest without creating an account.¹ There is no filing fee. Approval means your organization stops paying the 7% state sales tax plus up to 2.75% local sales tax on most direct purchases.²

Confirm Your Organization Qualifies

Tennessee Code § 67-6-322 sets out the eligible organizations, and the list is broader than most people assume. Section 67-6-322(a) names specific institution types, including churches, temples, synagogues, and mosques; universities, colleges, and schools; orphanages and foster placement organizations; homes for the aged; hospitals; Girls’ and Boys’ Clubs; community health councils; volunteer fire departments; organ banks; nonprofit community blood banks; and senior citizen service centers meeting Tennessee Commission on Aging standards.³ USO-type organizations serving armed services members also qualify.⁴

You don’t have to be a 501(c)(3). The application form has checkboxes for several federal classifications:

501(c)(3) religious, charitable, scientific, and educational organizations
501(c)(4) war-time veterans organizations
501(c)(5) labor organizations
501(c)(8) fraternal benefit organizations
501(c)(13) nonprofit cemetery companies
501(c)(19) veterans organizations

Whatever category applies, the organization cannot be operated for profit, and none of its net earnings can benefit any private individual.³

Gather Your Documents Before You Start

An incomplete package is the most common reason applications stall. Have these ready:

Your IRS federal determination letter showing tax-exempt status under the applicable 501(c) subsection. This is the single most important document.
A completed Form RV-F1306901, Tennessee’s Application for Exempt Organizations or Institutions.⁴
A group ruling letter or letter of authorization from your parent organization, if you’re a subordinate under a group exemption.

Two details on the form itself cause avoidable rejections. Your organization’s legal name has to match the name on file with the Tennessee Secretary of State exactly. And you must select the specific exemption category matching your organization type; the form lists the § 67-6-322 subsections alongside the federal classifications. A separate application is required for each physical location where your organization operates.⁴

If You Can’t Find Your IRS Determination Letter

If the letter was issued on or after January 1, 2014, download a copy through the IRS Tax Exempt Organization Search tool. For earlier letters, submit Form 4506-B to the IRS to request either a copy or an affirmation letter, which works the same way. Allow at least 60 days, and don’t submit a second request while you’re waiting; that actually slows things down.⁵

Subordinate organizations under a group ruling cannot use the IRS search tool. Contact the central organization holding the group ruling for written confirmation of your membership.

Submit the Application Through TNTAP

TNTAP is the Department’s online portal and the fastest way to file. For nonprofit exemption applications, you don’t need to create an account; submit as a guest.¹

On the TNTAP homepage, click “View Exemption Links.”
Click “Apply for Sales & Use Tax Exemption.”
Upload your completed Form RV-F1306901, your IRS determination letter, and any supporting documents.

Electronic filing gives you immediate confirmation of receipt and makes status easier to track. If you prefer paper, mail the completed application and supporting documents to the Department of Revenue at 500 Deaderick Street, Nashville, TN 37242.¹ Either way, no fee.

What Happens After You Apply

The Department reviews your submission to verify your federal status and confirm you meet Tennessee’s requirements. Expect roughly four to six weeks, longer if documentation is incomplete. You’ll receive a Notice of Determination stating whether the application was approved or denied.

Approval brings an Exempt Organizations or Institutions Sales and Use Tax Certificate of Exemption with a unique exemption number. The certificate is location-specific and covers only the address on your application, so multi-site organizations need a separate certificate for each location.⁴

If Your Application Is Denied

Tennessee does not have a formal administrative appeals process for tax determinations made by the Department of Revenue. You can request an informal conference to present additional documentation. If that doesn’t resolve the issue, the next step is a lawsuit in chancery court. Because review is limited, getting the initial application right matters more here than in states with multi-tier appeals. Correcting a denial is harder than preventing one, so double-check documentation before submitting.

Using the Certificate Correctly

Present a copy of the certificate to vendors at the time of purchase so they can remove the sales tax from the transaction. You can hand over either the certificate itself or a completed Streamlined Sales Tax Certificate of Exemption that includes your exemption number.⁴ Keep a digital copy handy; you’ll use it often.

The critical rule: the statute requires that the sale be made “directly to” the exempt organization.³ Payment has to come from the organization’s own funds at the point of sale, meaning an organizational check, a debit card tied to the organization’s account, or a credit card in the organization’s name. An employee or volunteer who pays with a personal card or personal check cannot claim the exemption, even if the organization plans to reimburse them.⁴ That reimbursement trap catches organizations constantly.

Two boundaries worth knowing. The exemption doesn’t extend to independent contractors working for your organization; a contractor hired to renovate your building pays sales tax on materials they buy.³ And the exemption covers purchases your organization makes, not sales it conducts; goods your nonprofit sells, including at fundraisers, are generally taxable.

Renewal Is Automatic — Keep Your Address Current

Nonprofit exemption certificates are valid for four years, and the Department mails renewed certificates to current holders before the existing ones expire.⁶ Your job is making sure the Department always has your correct mailing address.⁷

If your organization moves, submit a brand-new application with updated documentation; a simple address change won’t work because certificates are location-specific. If your renewal cycle passes and no new certificate has arrived, call the Taxpayer Services Division at 615-253-0600 and select option seven.

Penalties for Misusing the Certificate

Using an exemption certificate for unauthorized purchases is a Class C misdemeanor in Tennessee.⁸ The Department can also assess the unpaid taxes on those transactions plus penalties and interest. The application’s affidavit says as much: signing it means you acknowledge that misuse “may result in the assessment of additional taxes, penalties, and interest.”⁴

Common misuse scenarios: an officer using the certificate for personal purchases, an independent contractor being allowed to use it, or employees claiming the exemption on personal payment methods. The Department audits exemption holders, and a misuse finding that costs you the certificate means reapplying from scratch.

Keep Your Federal Filings Current

Getting Tennessee’s sales tax exemption doesn’t change your federal obligations, and the state certificate depends on your federal determination letter remaining valid. Tax-exempt organizations must keep filing their annual returns:⁹

Under $50,000 in gross receipts: Form 990-N (the e-Postcard).
$50,000 or more in gross receipts: Form 990 or Form 990-EZ, depending on total assets and receipts.

Federal returns are due by the 15th day of the 5th month after your fiscal year ends. File Form 8868 before the deadline for a six-month extension. Miss three consecutive years and the IRS automatically revokes your federal tax-exempt status, which would then jeopardize your Tennessee exemption.

1
TN.gov. Exemptions Certificates Credits
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TN.gov. Due Dates and Tax Rates
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Justia. Tennessee Code 67-6-322 – Religious, Educational, and Charitable Institutions – Energy Resource Recovery Facilities
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TN.gov. Application for Exempt Organizations or Institutions
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Internal Revenue Service. EO Operational Requirements: Obtaining Copies of Exemption Determination Letter From IRS
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Tennessee Department of Revenue. SUT-75 – Exemptions – Exemption Certificate Renewal
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TN.gov. Tennessee Taxation of Nonprofit Organizations
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Justia. Tennessee Code 67-6-607 – Unauthorized Use of Certificate
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Internal Revenue Service. Exempt Organization Annual Filing Requirements Overview