Amends TCA Section 67-6-102.

Present law generally provides that no sales and use tax is due with respect to industrial machinery, which is defined as machinery, apparatus, and equipment with all associated parts, appurtenances, and accessories, including hydraulic fluids, lubricating oils, and greases necessary for operation and maintenance, repair parts, and any necessary repair or taxable installation labor, that is necessary to, and primarily for, the fabrication or processing of tangible personal property for resale and consumption off the premises, or pollution control facilities primarily used for pollution control or water pollution control, where the use of such machinery, equipment or facilities is by one who engages in such fabrication or processing as one's principal business or who engages in the fabrication or processing of materials into trusses, window units, or door units for resale as part of the principal business of the sale of building supplies either within or without this state, or such use by a count, municipality, or water and watershed treatment authority, or a contractor pursuant to a contract with the county, municipality or water and wastewater treatment authority for use in water pollution control or sewage systems; also mining machinery, apparatus equipment and materials, with all associated parts and accessories, including repair parts and any necessary repair installation labor, that is necessary to and primarily for the following: <br /> <br /> (1) The removal, extraction or detachment of coal from land by surface, underground, or other lawful methods of mining and the construction or maintenance of necessary ingress and egress from the mine; <br /> <br /> (2) The removal, handling, and replacement of overburden and spoils materials; and <br /> <br /> (3) The reclamation of mined areas reclaimed under state or federal laws, or rules or regulations. <br /> <br /> This bill adds that machinery, equipment, and associated parts used by the department of general services or a contracted entity for the Megasite Authority of West Tennessee is included in the definition of "industrial machinery" for purposes of the sales and use tax exemption.<br />