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HB 1540

Taxes, Exemption and Credits - As introduced, exempts certain school supplies and instructional materials from the sales and use tax if sold to a teacher employed by a local education agency or public charter school. - Amends TCA Title 67, Chapter 6.

114th Regular Session (2025-2026) Introduced by Renea Jones

Tennessee would exempt school supplies and instructional materials from sales tax when purchased by public school or charter school teachers, reducing their out-of-pocket education expenses.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#exemptionandcredits #taxes
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Bill Summary · HB 1540

Legislative bill overview

HB 1540 would exempt certain school supplies and instructional materials from Tennessee's sales and use tax when purchased by teachers employed at public schools or charter schools. The bill modifies the state tax code to create this specific exemption category for educator purchases.

Why is this important

Teachers often purchase classroom supplies out-of-pocket, and this exemption could reduce their personal expenses for materials used in public education. The fiscal impact depends on exemption scope—broader definitions of "school supplies and instructional materials" would cost the state more in foregone tax revenue, while narrower definitions would have minimal budget impact.

Potential points of contention

  • Revenue impact: How much tax revenue will Tennessee lose, and is this an efficient use of state funds compared to other education funding mechanisms?
  • Definition ambiguity: The bill's current language doesn't specify what qualifies as "school supplies and instructional materials"—limiting the exemption could exclude legitimate teacher purchases while broad definitions could enable abuse.
  • Equity concerns: This only benefits public school and charter school teachers; it excludes private school educators and doesn't address whether direct reimbursement programs might be more effective than tax exemptions.

Compiled from official sources — confirm details with the bill’s official record.

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