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Old 03-25-2011, 02:04 PM
 
5 posts, read 23,938 times
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Would someone explain what the STATE SINGLE ARTICLE RATE is and how it works?

Is this something that would apply to a new car purchase......where the car maybe cost $30,000.00?

Thanks.
__________________________________________________ ______
(from the Tn Department of Revenue website:


Tax Rates:

State Tax - The sales tax rate on food is 5.5%. All other tangible personal property, unless specifically exempted, is 7%.

State Single Article Rates - 2.75% on any single item sold in excess of $1,600 but not more than $3,200

Use Tax - same as the sales tax rate
Local Tax - set by the local government - see local tax chart
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Old 03-25-2011, 02:57 PM
 
Location: A Yankee in northeast TN
9,483 posts, read 13,334,142 times
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http://www.tn.gov/revenue/tntaxes/sa...glearticle.pdf
That's as clear as mud to me, but it includes phone numbers to call if you don't come up with a better answer here.
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Old 03-26-2011, 07:22 AM
 
5 posts, read 23,938 times
Reputation: 12
Default How many lawyers did it take......

Quote:
Originally Posted by DubbleT View Post
http://www.tn.gov/revenue/tntaxes/sa...glearticle.pdf
That's as clear as mud to me, but it includes phone numbers to call if you don't come up with a better answer here.


I wonder how many lawyers it took to write that memo!!
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Old 03-27-2011, 01:42 PM
 
Location: Knoxville, Tennessee
22,533 posts, read 46,067,135 times
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Quote:
Originally Posted by TuckyUSA View Post
Would someone explain what the STATE SINGLE ARTICLE RATE is and how it works?

Is this something that would apply to a new car purchase......where the car maybe cost $30,000.00?

Thanks.
__________________________________________________ ______
(from the Tn Department of Revenue website:


Tax Rates:

State Tax - The sales tax rate on food is 5.5%. All other tangible personal property, unless specifically exempted, is 7%.

State Single Article Rates - 2.75% on any single item sold in excess of $1,600 but not more than $3,200

Use Tax - same as the sales tax rate
Local Tax - set by the local government - see local tax chart
You answered your question. It's for items like boats, cars, etc. that cost more than $1,600 but less than $3,200. In other words, no, a $30,000 car would not have anything to do with this single article law.
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Old 03-27-2011, 05:44 PM
 
Location: Sullivan County, Tennessee
445 posts, read 1,009,844 times
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The Local option sales tax can be up to 2.75% and is levied only on the first $1,600 (maximum) of a high dollar single item purchase.

A few years back (apparently about 2002) there was "reform" of the tax code which allows additional state revenue to be collected from the amount of the sale more than $1,600 (high limit for local option tax) but cutting off at $3,200 (maybe injure, but not kill, the golden goose).

This is quoted from page 14 of the SALES AND USE TAX GUIDE:


"State Tax on Purchases of Single Articles

State Tax on Purchases of Single Articles
Effective July 15, 2002, an additional state sales
or use tax at the rate of 2.75% is levied on the
portion of the sales price, from $1,600.01 up to
and including $3,200, of any single article sold.
This is a state tax only. This portion of the single
article sales price is not subject to local tax.

Computing Sales Tax Due on Single Articles

Assume that the total sales price, including all
associated charges, of a single article is $20,000.
Tax computation would be calculated as follows:

(a) The general state sales tax rate of 7% applies
to the total $20,000 sales price. $20,000 x 7% =
$1,400.

(b) The local option sales tax applies to the
first $1,600 of the sales price. The local option
sales tax rate in Davidson County is 2.25%.
$1,600 x 2.25% = $36.

(c) The state single article sales tax applies to the
sales price from $1,600.01 up to and including
$3,200 (the second $1,600 of the sales price). The
state single article rate is 2.75%. $1,600 x 2.75% =
$44."
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