1. (1) Any Federal Excise Tax which is required by law to be passed on to, and is paid by the ultimate consumer, is not a part of the selling price subject to the Sales and Use Tax, provided such tax is billed separately to the customer. However, any Federal Excise Tax which is not required by law to be passed on to consumer is a part of the selling price, even though such tax may be billed separately to the customer.

Authority: T.C.A. §§ 67-1-102, 67-6-102, 67-6-102(71), and 67-6-402. Administrative History: Original rule certified June 7, 1974. Amendment filed December 15, 1986; effective January 29, 1987. Amendment filed June 28, 2000; effective September 11, 2000. Public necessity rule filed February 29, 2008; effective through August 12, 2008. Amendment filed March 31, 2008; effective July 29, 2008.