Tennessee Code Title 67. Taxes and Licenses § 67-4-405

(b) This tax does not apply to cities or other political subdivisions of the state owning and operating gas companies, water companies or power plants, nor does it apply to persons having not-for-profit status owning and operating water companies, nor does it apply to persons meeting the criteria of exempt wholesale generators or FERC certified wholesale power marketers under the Federal Power Act of 1992 (16 U.S.C. § 791a et seq.), nor does it apply to any governmental agency of the United States.

(c) It is the intention of this section to levy a tax for the privilege of engaging in intrastate commerce carried on wholly within this state and not a part of interstate commerce.

(d) There shall be credited upon the tax imposed by this section any taxes paid by the owner of such business on any gas, water or electric company businesses under the Excise Tax Law, compiled in part 20 of this chapter, and the Franchise Tax Law, compiled in part 21 of this chapter, during the calendar year in which the tax levied becomes due.

(e) Each person engaged in the business of furnishing or distributing electric current or water shall be exempt from the tax imposed by this section upon gross receipts up to the amount of five thousand dollars ($5,000), but shall be liable to the state tax upon all gross receipts in excess of five thousand dollars ($5,000).

(f) The taxes imposed in this section should be administered and collected in accordance with part 3 of this chapter.