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HB1247 • 2026

Taxes, Sales

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, Part 3, relative to exemptions from sales and use tax.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Reneau, Hensley
Last action
2026-04-08
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Tennessee Sales Tax Exemption for Cash Purchases

This bill creates an exemption from sales tax on the first $20 of a purchase made with physical cash in Tennessee.

What This Bill Does

  • Exempts the first $20 of the sale price when paid with physical cash, including coins and paper money declared legal tender by state or federal law.
  • Includes gold and silver as forms of physical cash for this exemption.
  • Does not exempt sales from other taxes like those imposed by title 57 or chapter 4, part 10.

Who It Names or Affects

  • People who make purchases with physical cash in Tennessee
  • Retailers who sell tangible personal property

Terms To Know

Physical Cash
Coins, paper money, and notes declared legal tender by state or federal law, including gold and silver.

Limits and Unknowns

  • The bill does not specify how the exemption will be enforced or verified.
  • It is unclear if there are any limits on the types of tangible personal property that qualify for this tax break.

Bill History

  1. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-02-11 Tennessee General Assembly

    Sponsor(s) Added.

  3. 2026-02-11 Tennessee General Assembly

    Placed behind the budget

  4. 2026-02-04 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 2/11/2026

  5. 2026-02-04 Tennessee General Assembly

    Sponsor(s) Added.

  6. 2025-04-17 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2025

  7. 2025-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025

  8. 2025-04-14 Tennessee General Assembly

    Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025

  9. 2025-03-11 Tennessee General Assembly

    Refer to Senate Finance, Ways & Means Committee w/ negative recommendation

  10. 2025-03-04 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 3/11/2025

  11. 2025-02-25 Tennessee General Assembly

    Refer to Senate Finance, Ways & Means Committee Revenue Subcommittee

  12. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  13. 2025-02-12 Tennessee General Assembly

    P2C, ref. to Finance, Ways, and Means Committee

  14. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee

  15. 2025-02-11 Tennessee General Assembly

    Sponsor change.

  16. 2025-02-11 Tennessee General Assembly

    Sponsor(s) withdrawn.

  17. 2025-02-10 Tennessee General Assembly

    Sponsor(s) Added.

  18. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  19. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  20. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  21. 2025-02-05 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1095
By Hensley

HOUSE BILL 1247
By Reneau

HB1247
003009
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, Part 3, relative to exemptions from
sales and use tax.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 67, Chapter 6, Part 3, is amended by
adding the following as a new section:
(a) There is exempt from the tax imposed by this chapter the first twenty dollars
($20.00) of the sales price on a sale of tangible personal property paid for with physical
cash. This subsection (a) does not exempt the sale from taxes imposed by other laws,
including taxes imposed pursuant to title 57 or chapter 4, part 10 of this title.
(b) As used in subsection (a), "physical cash":
(1) Means physical, tangible coins, paper money, and notes declared
legal tender by state or federal law; and
(2) Includes physical, tangible gold and silver.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.