Taxes, Exemption and Credits

Plain English Breakdown

The candidate explanation incorrectly stated the plain language title as 'Firearms and Ammunition Sales Tax Holiday' which does not accurately reflect the content of the bill.

Sales Tax Holiday for Firearms and Ammunition

This bill creates a sales tax holiday in Tennessee from July 3 to July 6, 2026, exempting firearms and ammunition from state sales and use taxes.

What This Bill Does

• Adds an exemption from the state's sales and use tax for the sale of firearms and ammunition during specific dates.
• Exempts these items from taxes if sold between midnight on July 3, 2026, and midnight on July 6, 2026.

Who It Names or Affects

• People who buy firearms or ammunition during the specified dates will not pay sales tax.
• Retailers selling firearms and ammunition may see an increase in sales during the holiday period.

Terms To Know

Sales Tax Holiday

A temporary period when certain items are exempt from state or local sales taxes.

Exemption

An exception to a general rule, allowing people not to pay something like a tax on specific goods during a set time.

Limits and Unknowns

• The bill only applies for the dates of July 3-6, 2026.
• It does not specify if there will be future sales tax holidays for firearms and ammunition after this period.

Official Summary Text

Under present law, there is a sales tax holiday each year from
the last Friday of July to the following Sunday that exempts state sales and use tax on the following items:



Clothing with a sales price of $100 or less per item
.


School supplies with a sales price of $100 or less per item
.


School art supplies with a sales price of $100 or less per item
.


Computers with a sales price of $1,500 or less per item.

This bill creates a special sales tax holiday for the retail sale of firearms and ammunition, by exempting state sales and use tax. This sales tax holiday would apply if the firearms and ammunition are sold between 12:01 a.m. on July 3, 2026, and 11:59
p.m. on July 6, 2026.

Current Bill Text

SENATE BILL 1776
By Johnson

HOUSE BILL 1505
By Lamberth
HB1505
010965
- 1 -

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-393, is amended by adding the
following as a new subsection:
There is exempt from the tax imposed by this chapter the retail sale of firearms
and ammunition, if sold between 12:01 a.m. on July 3, 2026, and 11:59 p.m. on July 6,
2026.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.