Taxes, Sales

Plain English Breakdown

The official source does not provide a specific definition of 'books', only that it includes certain types of written or printed pages fastened on one side with protective covers. The bill text implies this definition is provided elsewhere in the document but was not included in the given excerpt.

Exempting Books from Sales Tax During Annual Sales Tax Holiday

This bill changes Tennessee's sales and use tax laws to exempt books priced at $100 or less during the annual sales tax holiday.

What This Bill Does

• Changes the law to allow books with a price of $100 or less to be sold without sales tax during an annual sales tax holiday.
• Updates the list of items that are not taxed by removing reference maps and globes from it.

Who It Names or Affects

• People buying books priced at $100 or less during the annual sales tax holiday in Tennessee.
• Retailers selling books that qualify under the new definition of 'books'.

Terms To Know

Sales Tax Holiday

A specific time when certain items are not taxed to encourage people to buy them.

Exempt

Not required to pay a tax on something.

Limits and Unknowns

• The bill does not specify which month or dates the sales tax holiday will occur.
• It is unclear how retailers will implement this change in their stores.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

SENATE BILL 2116
By Campbell

HOUSE BILL 2433
By McKenzie
HB2433
008865
- 1 -

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-393(b)(1), is amended by
deleting the word "and" at the end of subdivision (C), by deleting the period at the end of
subdivision (D) and substituting instead the language "; and", and by adding the following as a
new subdivision:
(E) Books with a sales price of one hundred dollars ($100) or less per item.
SECTION 2. Tennessee Code Annotated, Section 67-6-393(b)(2), is amended by
deleting subdivision (E) and substituting instead:
(E) Reference maps and globes;
SECTION 3. Tennessee Code Annotated, Section 67-6-102, is amended by deleting
subdivision (90) and adding the following as a new, appropriately designated subdivision:
( ) "Books":
(A) Means a set of written or printed pages fastened on one (1) side and
enclosed between protective covers that are works of nonfiction, fiction, or short
stories;
(B) Includes printed literary works primarily published and distributed for
sale to the general public, reference books, textbooks, and workbooks; and
(C) Does not include newspapers, magazines, and periodicals.
SECTION 4. This act takes effect July 1, 2026, the public welfare requiring it.