Amends TCA Section 67-6-209.

Present law generally requires contractors to pay use tax on tangible personal property used in the performance of a contract, unless sales or use tax was previously paid on the property. It is an exception to such requirement that the title holder to the property is a church, private nonprofit college or university and the tangible personal property is for church, private nonprofit college or university construction. This bill specifies that, for purposes of the use tax exemption, "private nonprofit college or university" includes a nonprofit academic medical center and teaching hospital that operates as a separate nonprofit corporation, but which, when founded, was operated as a division of a private nonprofit college or university and that continues to provide education and training of physicians, nurses, and other allied healthcare professionals.