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State Rep. Matthew Hill proposes expanding sales tax holiday

State Rep. Matthew Hill, R-Jonesborough

Proposal cuts $100 million in state budget for 2020-21 fiscal year

NASHVILLE, Tenn.   –  State Rep. Matthew Hill, R-Jonesborough, on Tuesday announced nonrecurring sales tax breaks aimed at helping industries in Tennessee hardest hit by the COVID-19 pandemic.

The proposal calls for a temporary sales tax exemption on the purchase of furniture, electronics, apparel, back-to-school supplies, as well as new and used cars during particular dates. Restaurants would enjoy a week-long sales tax holiday while back-to-school shopping would be extended an additional weekend.

The sales tax holidays would mean approximately $100 million in cuts to the state budget for the 2020-21 fiscal year that begins July 1, said Hill, who serves as chairman of the House Finance, Ways and Means Appropriations Subcommittee.

“This is an active way we can encourage Tennesseans to support their local family restaurants, local shops, local car dealers, but also a tangible way we can return tax dollars to Tennesseans,” Hill said.

“Our small businesses were hurt by the restrictions placed on them because of the pandemic.  Extending the sales-tax holiday will pay dividends in the long-run by encouraging growth, encourages business and ultimately shows taxpayers we recognize whose money it really is,” Hill said.

Tennessee currently has an annual sales tax holiday the last weekend in July. During that weekend, there’s no sales tax on most clothing, school supplies, computers.  The next sales tax holiday is scheduled for July 31-Aug. 2.

State Rep. Matthew Hill lives in Jonesborough and represents House District 7. He is Chairman of the House Finance, Ways, & Means Appropriations Subcommittee and the Chairman of the Select Committee on Rules. He is also a member of the Calendar & Rules, Finance, Ways, & Means, Health and Insurance Committees, and the Facilities, Licensure, & Regulations, Finance, Ways, & Means, and Public Health Subcommittees. He can be reached by email at: [email protected] or by calling 615-741-2251

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