Any tangible personal property or taxable service which is furnished by a church to a contractor or subcontractor for use in church construction is exempt from the Sales or Use Tax, but the exemption does not apply to any materials which may be furnished and used in constructing any other building or improvement to real property, even though it may be for a church supported hospital, school, orphanage, etc.

Authority: T.C.A. §§ 67-1-102, 67-6-209, 67-6-322, and 67-6-402. Administrative History: Original rule certified June 7, 1974. Amendment filed June 28, 2000; effective September 11, 2000.