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SB 1095

Taxes, Sales - As introduced, exempts from sales tax, the first $20 of the sales price on a sale of tangible personal property paid for with physical cash declared legal tender, including gold and silver. - Amends TCA Title 67, Chapter 6, Part 3.

114th Regular Session (2025-2026) Introduced by Joey Hensley

Tennessee bill exempts first $20 of cash purchases from sales tax, creating payment-method-based tax preference that risks significant revenue loss and administrative complexity.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
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Bill Summary · SB 1095

Legislative bill overview

SB 1095 would exempt the first $20 of any tangible personal property purchase from Tennessee sales tax when paid with physical cash (including gold and silver coins). The exemption applies per transaction to cash payments only, effectively creating a preferential tax treatment for physical currency transactions.

Why is this important

This bill would reduce state sales tax revenue on small cash purchases while creating differential tax treatment based on payment method. It reflects broader debates about cryptocurrency/alternative currency adoption and cash-based commerce, with potential implications for state funding of services that depend on sales tax revenue.

Potential points of contention

  • Revenue impact: Eliminating sales tax on the first $20 of cash transactions could significantly reduce state revenues across millions of small daily purchases, affecting funding for education, infrastructure, and services
  • Payment method discrimination: Creating tax advantages for physical cash over credit/debit cards or digital payments may violate equal treatment principles and could face constitutional challenges
  • Cryptocurrency implications: The specific mention of gold and silver suggests intent to establish tax advantages for alternative currencies, raising questions about whether this could extend to cryptocurrencies and regulatory authority
  • Administrative burden: Retailers would need systems to track and distinguish cash transactions from other payment methods, increasing compliance complexity
  • Regressive effect: Lower-income populations often rely more heavily on cash, potentially making this a regressive tax change

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

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