New Sales Tax Rate in Effect

Change of Local Tax Rate: Cannon County

Local Tax Rate Change in Cannon County, Tennessee On November 2, 2023, voters in Cannon County voted to increase the local sales tax rate to 2.75%. The effective date of the tax rate increase is June 1, 2024.

Application of the New Tax Rate

The new rate will apply to all taxable sales of tangible personal property made on or after June 1, 2024. It also applies to the sale of taxable services for billing periods starting on or after June 1, 2024. Sellers located in Cannon County and the Cannon County cities of Auburntown and Woodbury must collect and remit the tax at this new rate. The corresponding local consumer use tax rate for people in Cannon County also increases to 2.75%.

Single Article Application

The local option tax rate in Cannon County is applicable to the first $1,600 of the sales price of any single article of tangible personal property sold, unless that item is specifically exempted from local tax or taxed at another rate by law. The local tax cap on sales of single articles of tangible personal property will be $44. The local rate is also applicable to the total sales price of any taxable service. In addition, there is a state single article tax rate of 2.75% applicable to the sales price, from $1,600.01 up to and including $3,200, of any item of tangible personal property.

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Source: Tennessee Department of Revenue, Notice 24-02