4 ms·
> In places like Tennessee, the tax rate can change if your item is a grocery or isn't a grocery. That's not even the half of it. Grocery vs. non-grocery chang
by cosmie 8y ago
> In places like Tennessee, the tax rate can change if your item is a grocery or isn't a grocery.
That's not even the half of it. Grocery vs. non-grocery changes the rate. Some services that are tax exempt in other states are not in Tennessee.
And in Tennessee, you have the state level of 7%, and the ability for it to rise up to 9.75% based on a whole lot of inter-dependent local tax overlays.
The 2.75% difference comes from county, state, school district, transportation district, and "special purpose district" levies. All of which are optional to levy and voted on at the local level, and which may or may not overlap with each other to "stack" up to that cap at 9.75%.
Avalara, which is the de-facto owner of the sales tax calculation software space, has a good write up[1].
[1] https://www.avalara.com/taxrates/en/state-rates/tennessee.html https://www.avalara.com/taxrates/en/state-rates/tennessee.ht...