Taxes, Sales

Plain English Breakdown

Checked against official source text during the last sync.

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

• Removes the word 'and' in subdivision (C) of Section 67-6-393(b)(1).
• Adds a new subdivision (E) to Section 67-6-393(b)(1), which exempts books priced at $100 or less during the annual sales tax holiday.
• Modifies subdivision (E) of Section 67-6-393(b)(2) by removing it and replacing it with reference maps and globes.
• Adds a new definition for 'books' in Section 67-6-102, which includes nonfiction, fiction, short stories, printed literary works, reference books, textbooks, and workbooks but excludes newspapers, magazines, and periodicals.

Who It Names or Affects

• People who buy books priced at $100 or less during the annual sales tax holiday.
• Retailers selling books that qualify for the exemption.

Terms To Know

Sales Tax Holiday

A specific period when certain items are exempt from state and local sales taxes.

Exemption

An exception to a general rule or requirement, allowing people to avoid paying something like a tax on certain goods.

Limits and Unknowns

• The bill does not specify the exact dates of the annual sales tax holiday.
• It is unclear how retailers will implement and enforce this exemption for books priced at $100 or less.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

HOUSE BILL 2433
By McKenzie

SENATE BILL 2116
By Campbell
SB2116
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.