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Rep. Renaud proposes $20 cash sales-tax exemption pilot, bill sent behind budget
Summary
Representative Renaud introduced HB 1247, a two-year pilot to exempt the first $20 of purchases from sales tax when paid in cash to support unbanked residents and cash-dependent economies; the committee placed the bill behind the budget citing a $383 million fiscal impact (reduced by $20 million by amendment).
Representative Renaud described House Bill 1247 as a modest incentive to keep cash circulating and as tax relief targeted at Tennesseans who are unbanked or underbanked.
"This bill would exempt the 1st $20 of a purchase from sales tax when it's when physical cash has been paid for the transaction," Representative Renaud said, and noted the amendment frames the policy as a two-year pilot so the state can evaluate effectiveness and administrative impact.
Renaud argued the proposal would help seniors, rural residents and low-income communities who rely on cash, and could reduce processing fees for small businesses. She also cited disruptions from recent disasters as an example when cash access mattered because power or connectivity were unavailable.
A committee member noted the amendment reduced an estimate by $20,000,000 but that the bill still carried a fiscal impact of approximately $383,000,000. Because of that fiscal footprint, and without objection, the chair placed House Bill 1247 behind the budget for further consideration.
