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HB 1247

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 Michele Reneau

Tennessee bill exempts first $20 of cash purchases from sales tax, including precious metals, creating tax relief capped per transaction but complicating administration and potentially reducing state revenue.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#sales #taxes
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Bill Summary · HB 1247

Legislative bill overview

HB 1247 would exempt the first $20 of any cash purchase of tangible goods from Tennessee's sales tax, with specific language including purchases made with precious metals like gold and silver. The bill modifies Tennessee's sales tax code to create this narrow exemption for in-person cash transactions.

Why is this important

This proposal could meaningfully reduce taxes on everyday purchases for consumers paying with physical currency, though the benefit would be capped at $20 per transaction. It reflects broader policy debates about cash usage, alternative currencies, and whether sales tax structures should be modified for specific payment methods.

Potential points of contention

  • Revenue impact: The exemption could reduce state sales tax revenue, requiring either budget cuts or other revenue sources to compensate
  • Complexity and administration: Retailers would need systems to track whether payment was cash versus card, creating compliance and auditing challenges
  • Inequitable treatment: The exemption applies only to cash/precious metal payments, potentially creating disparities between payment methods and raising fairness questions
  • Scope questions: The inclusion of gold and silver as "legal tender" is unusual and may reflect ideological views about alternative currencies rather than practical purchasing patterns

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

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