NASHVILLE – In an effort to promote gun safety, the Tennessee Legislature passed Public Chapter 592, which creates a new one-year sales tax holiday for the period beginning 12:01 a.m. on July 1, 2021 and ending at 11:59 p.m. on June 30, 2022. During this period, retail sales of gun safes and gun safety devices are exempt from sales and use tax.
A “gun safe” is defined as a locking container or other enclosure equipped with a padlock, key lock, combination lock or other locking device that is designed and intended for the secure storage of one or more firearms.
All vendors must properly report sales made during the sales tax holiday. For the July 2021 through June 2022 reporting periods, sales should be reported as follows:
- Report all sales (taxable and non-taxable) on Page 1, Line 1 (Gross Sales) of the sales tax return.
- Sales of exempt gun safes and gun safety devices made during the holiday period must be reported on Schedule A, Line 10 (Sales Tax Holiday).
This exemption will only be available for the one-year holiday period. All retail sales of gun safes and gun safety devices made after June 30, 2022, will be subject to sales tax.
For more information, see Notice #21-13 or visit www.tn.gov/revenue.