(1) The tax imposed by this chapter does not apply to the sale or use of direct mail advertising materials that are distributed in Tennessee from outside the state by a person engaged solely and exclusively in the business of providing cooperative direct mail advertising.
(2) For the purpose of this section: “Cooperative direct mail advertising” means the business of providing advertising in the form of discount coupons or advertising leaflets for more than one (1) business that are delivered by mail in a single package to potential customers of businesses subscribing to the cooperative direct mail advertising; and
(3) “Direct mail advertising materials” means discount coupons and advertising leaflets, including accompanying envelopes and labels.