Last month, a referendum was held asking Williamson County residents to vote on a sales tax increase. On Feb 6, citizens voted yes to increase the sales tax to 2.75%. The effective date of the tax rate increase is April 1, 2018.
Here’s what you need to know about the new tax rate from tn.gov:
The new rate will apply to all taxable sales of tangible personal property made on or after April 1, 2018. It also applies to the sale of taxable services for billing periods starting on or after April 1, 2018. Sellers located in Williamson County and the cities of Arrington, Brentwood, College Grove, Fairview, Franklin, Nolensville, Spring Hill and Thompson’s Station must collect and remit tax at this new rate.
Of note, this rate increase does not impact sellers located in the portion of Spring Hill located in Maury County. The local tax rate in the portion of the city of Spring Hill in Maury County remains 2.25%
The local option tax rate in Williamson 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 exempt 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 include #3,200, of any item of tangible personal property.
Visit www.tn.gov/revenue for more information.