NASHVILLE, Tenn. – The Senate Tax Subcommittee has approved legislation sponsored by Senator Jim Tracy (R-Shelbyville) that gives Tennessee small businesses a “Business Tax Holiday.” Senate Bill 1293 would provide a refund for the total amount of state and local sales tax paid by small business owners to retailers for business purchases that occurred during any one continuous 24-hour period between January 1, 2014, and June 30, 2014.
“This legislation is similar to the annual Sales Tax Holiday that is enjoyed by consumers in August on back-to-school items and clothing,” said Senator Tracy. “It simply gives much needed tax relief to our small businesses.”
To receive a refund under this bill, a Tennessee small business must file a single application with the department of revenue by August 31, 2014. The total amount of the refund may not exceed $5,000. No purchases made using cash would be eligible for refund.
The bill applies to small businesses located in the state with total annual gross receipts of no more than $2 million averaged over a three-year period and that employs no more than 10 persons on a full-time basis. Those businesses under three years old may receive the refund if they have total gross receipts of no more than $2 million in the year immediately preceding application. If a business has been in operation for less than one year, such business must have projected total gross receipts of no more than $2 million for the year in which the application is made.
“Many small businesses have suffered over the past several years. This legislation is a means to help them, while providing an economic incentive for them to invest in their business and the economic growth of our communities.”