Section 67-8-104 - [Not applicable to any transfer by gift made on or after January 1, 2012, see 67-8-118.] Standard exemptions(a)(1) There shall be allowed against the net gifts made during any calendar year a maximum single exemption of ten thousand dollars ($10,000) against that portion of the net gifts going to donees of Class A, and a maximum single exemption of five thousand dollars ($5,000) against that portion of the net gifts going to donees of Class B.(2) In the event the aggregate net gifts made to donees of Class A for any calendar year exceed ten thousand dollars ($10,000), or the aggregate net gifts made to donees of Class B for any calendar year exceed five thousand dollars ($5,000), the tax shall be applicable only to the extent that the gifts, other than gifts of future interests in property, to each:(A) Class A donee exceed the following amounts:(i) Gifts made before 1984 - the sum of three thousand dollars ($3,000);(ii) Gifts made in 1984 - the sum of five thousand dollars ($5,000);(iii) Gifts made in 1985 - the sum of seven thousand dollars ($7,000);(iv) Gifts made after 1985 - the sum of ten thousand dollars ($10,000); and(B) Class B donee exceed three thousand dollars ($3,000).(b) No part of a gift to an individual who has not attained twenty-one (21) years of age on the date of such transfer shall be considered a gift of a future interest in property for purposes of subsection (a), if the property and the income from the property: (1) May be expended by, or for the benefit of, the donee before the donee's attaining twenty-one (21) years of age; and(2) Shall, to the extent not so expended:(A) Pass to the donee on the donee's attaining twenty-one (21) years of age; and(B) In the event the donee dies before attaining twenty-one (21) years of age, be payable to the estate of the donee or as the donee may appoint under a general power of appointment as defined in § 2514(c) of the Internal Revenue Code (26 U.S.C. § 2514(c)).(c) For the purposes of this section, the standard exemption amount allowable for gifts to Class A donees shall increase each year by the same amount, if any, that the annual exclusion amount for federal gift taxation purposes increases.(d) All contributions or distributions made to, or on behalf of, beneficiaries under any college education savings plan authorized by title 49, chapter 7, part 8 or 9, by federal law, or by the laws of another state, are exempt from all taxation under this chapter. This exemption shall include, but is not limited to, contributions to, and distributions from, plans defined in 26 U.S.C. § 529, and accounts properly designated as education savings accounts, education IRAs, or future tuition payment plans, however described.Acts 1939, ch. 137, § 4; C. Supp. 1950, § 1295.4 (Williams, § 1328.4); Acts 1965, ch. 19, § 1; 1978, ch. 731, § 17; 1983, ch. 73, § 11; T.C.A. (orig. ed.), § 67-2505(a), (b); Acts 1998, ch. 897, § 1; 2002, ch. 688, § 1; 2005, ch. 499, § 1.