Tennessee House Bill HB0868

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 2/2/23

Caption

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

Impact

The implementation of HB 0868 would create a new exemption within the existing sales tax framework in Tennessee. By exempting certain flag sales from taxation, it alters the financial obligations of both consumers purchasing these flags and sellers distributing them. This change is expected to lessen the financial strain on individuals or organizations interested in acquiring official flags, potentially fostering a greater sense of state and national pride through increased flag visibility and ownership.

Summary

House Bill 0868 proposes amendments to the Tennessee Code Annotated concerning sales and use taxes. Specifically, it seeks to exempt the sale of official Tennessee state flags and flags of the United States from the sales tax. This exemption is limited to official flags and does not extend to miniature flags or those sold as souvenirs, novelties, decorations, or toys. The bill aims to promote the sale of these flags without the burden of taxation, thereby encouraging their distribution and use within the state.

Contention

While the bill presents straightforward benefits, potential points of contention may arise from the parameters of the exemption. The decision to exclude miniature flags, souvenirs, and novelty items may be viewed as arbitrary, leading to discussions about equity in taxation. Some stakeholders might argue that a broader exemption could foster more comprehensive support for patriotic merchandise, while others may contend that it complicates the sales tax code by introducing specific exclusions, which could create confusion for vendors and consumers alike.