TN HB1540

Creates a sales and use tax exemption for Tennessee teachers purchasing school supplies, art supplies, and instructional materials priced at $100 or less per item

Eligible teachers must hold a state teaching license, be employed by a local education agency or public charter school, and spend at least 50% of their work time instructing students

Excludes clothing, computers, computer software, video game consoles, items for personal use outside the classroom, and items for trade or business use

Requires teachers to apply for an exemption certificate from the Commissioner of Revenue with proof of employment, and retailers must maintain copies of certificates for documentation

Takes effect July 1, 2026