The Tennessee Department of Revenue released a ruling on August 17th clarifying that web hosting and maintenance services are not subject to Tennessee sales and use tax. The ruling further stated that charges for customer referrals, website advertising space and customer tracking services are not taxable.
The taxpayer operated a website where customers choose a vendor and access information about the vendor. The taxpayer received compensation from vendors for providing websites to vendors, advertising products, tracking customers, and referring customers to vendors.
A copy of the revenue ruling can be found here: Revenue Ruling 11-22