Tennessee Code Title 67. Taxes and Licenses § 67-6-301

(a)(1) The gross proceeds derived from the sale in this state of livestock, nursery stock, poultry and other farm or nursery products, in any calendar year, directly from a farmer or nurseryman, are exempt from the tax levied by this chapter, if fifty percent (50%) or more of such products are grown or produced in the calendar year by such farmer or nurseryman. If less than fifty percent (50%) of such products in any calendar year are grown or produced by the farmer or nurseryman, then only the gross proceeds of the sale in this state of the products actually grown or produced by such farmer or nurseryman shall be exempt from the tax levied by this chapter. When sales of livestock, nursery stock, poultry, or other farm or nursery products are made to consumers, other than as provided herein, they are not exempt from the tax imposed by this chapter.

(2) As used in subdivision (a)(1), unless the context otherwise requires, “sale directly from a farmer or nurseryman,” includes, but is not limited to, the sale of farm or nursery products directly from a farmer to a consumer via an online nonprofit farmers' market; provided, that:

(c)(1) Each and every agricultural commodity sold by any person, other than a producer, to any other person, who purchases not for direct consumption, but for the purpose of acquiring raw products for use or for sale in the process of preparing, finishing, or manufacturing such agricultural commodity for the ultimate retail consumer trade, shall be and is exempt from any and all provisions of this chapter, including payment of the tax applicable to the sale, storage, use, transfer, or any other utilization or handling thereof, except when such agricultural commodity is actually sold as a marketable or finished product to the ultimate consumer, and in no case shall more than one (1) tax be exacted.

(2) “Agricultural commodity,” for purposes of this section, means horticultural, poultry, and farm products, livestock and livestock products, and harvested trees.