Tennessee Code Title 68. Health, Safety and Environmental Protection § 68-211-303

(a) There is imposed on each purchase of a new motor vehicle to be titled and registered in this state a tire environmental fee as follows:

(b) The fee imposed by this section shall be collected by the seller from the purchaser at the time of purchase.

(c) Fees collected shall be remitted to the department of revenue in a manner prescribed by the commissioner. All fees collected, less an amount to cover the actual expenses of administration by the department, shall be credited to the tire environmental fund.

(d) Notwithstanding any law to the contrary, fees imposed by this section shall be exempt from sales and use tax and business tax liability regardless of whether the fee is included in the purchase price of a new motor vehicle or is paid separately at the time of purchase.