Bill > HB1540

This bill exempts certain school supplies and instructional materials from Tennessee's sales and use tax when purchased by teachers employed by local education agencies (LEAs) or public charter schools. Specifically, school supplies, school art supplies, and school instructional materials, each with a sales price of $100 or less per item, are eligible for this exemption, though it does not apply to clothing, computers, computer software, video game consoles, or items for personal use outside the classroom or for use in a trade or business. Retailers must report these exempt sales, and the exemption is subject to rules regarding discounts and how items are sold, ensuring that items normally sold as a unit cannot be broken down to qualify. To utilize the exemption, teachers must apply for and receive a sales and use tax exemption certificate from the commissioner of revenue, which they then provide to retailers, who must keep a copy for their records. For the purposes of this exemption, a "teacher" is defined as an individual licensed by the state board of education who spends at least 50% of their work time instructing students, excluding administrators or support personnel who spend less than 50% of their time on instruction. This act is set to take effect on July 1, 2026.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1540&ga=114