Tennessee Code Title 67. Taxes and Licenses § 67-6-540

(1) One (1) or more effective use tax rates for purchases subject to tax under this chapter;

(2) A procedure under which the eligible dealer can use a direct pay permit issued by the commissioner to purchase tangible personal property or services without paying to its supplier the tax imposed by this chapter;

(3) A term not to exceed three (3) years, provided nothing shall preclude the commissioner from entering into a subsequent agreement with the same dealer;

(4) The conditions under which the agreement may require modification or termination;

(5) A procedure to resolve disputes concerning the agreement; and

(6) Any such other provisions as the commissioner and the eligible dealer mutually agree upon to carry out the purposes of this section.

(1) “Effective use tax rate” means the rate of use tax to be applied against a predetermined base of purchases for the purpose of computing the eligible taxpayer's use tax liability for a defined period;

(2) “Eligible dealer” means any person who is required to file any return or to pay or remit any tax under this chapter and who, in the opinion of the commissioner, meets the following criteria:

(3) “Managed compliance agreement” means an agreement between the commissioner and an eligible taxpayer that provides for an agreed upon method for calculating and remitting use tax on that taxpayer's purchases.