Tenn. Code Ann. § 67-6-332: Utilities, electric cooperatives and electric membership corporations

There is exempt from the tax imposed by this chapter the sums paid or property or services contributed by any person to any municipal or county utility, electric cooperative or electric membership corporation, by any person who is required as a condition for utility service to make such payment as a contribution in aid of capital construction to the municipal or county utility, electric membership corporation or electric cooperative.