Amends TCA Title 67.

This bill amends provisions related to sales and use tax, as described below. PROPERTY SOLD AT RETAIL Under present law, there is a 7 percent state tax on the sale of tangible personal property at retail in this state. Present law imposes an additional 2.75 percent tax on the amount in excess of $1,600, but less than or equal to $3,200 on the sale or use of any single article of personal property. This 2.75 percent tax is in addition to all other taxes and is a state tax for state purposes only. A county or municipality or taxing district may not levy a tax on the amount in excess of $1,600, but less than or equal to $3,200 on the sale or use of any single article of personal property. This bill deletes the above-described provisions on the additional state tax of 2.75 percent applied to the amount of single articles in excess of $1,600 but less than or equal to $3,200, and the prohibition on a county or municipality imposing a similar tax. LOCAL OPTION Under present law, any county, by resolution of its county legislative body, or any incorporated city or town, by ordinance of its governing body, is authorized to levy a local sales and use tax not to exceed 2.75 percent. The tax levied applies only to the first $1,600 on the sale or use of any single article of personal property. This bill extends the application of the local sales tax cap above from the first $1,600 to the first $3,200. This bill states that this increase on a single article of personal property will be automatic and will not require further action of the local governing body of any municipality or county if the municipality or county is at the maximum rate of $1,600 prior to the effective date of this bill.