Single Article Sales Tax for state of TN - How to process in LSR

Hi All,

The state of TN has a special tax thing for handling a single article that's over $1600. The example below is a good explainer and lays it out pretty clearly how it works. The customer I'm working with sells jewelry that is over the $1600 threshold in which case it qualifies for the Single Article Sale Tax.


https://revenue.support.tn.gov/hc/en-us/articles/205576765-What-is-a-single-article-and-how-is-sales-tax-on-a-single-article-calculated-%3C


The 7% state tax applies to the entire purchase price of the item or grouping of items. However, the local tax rate applies only to the first $1,600 of the sale price of a single article of tangible personal property. There is also an additional state tax of 2.75% applied to the amount in excess of $1,600 but less than or equal to $3,200.


Assuming the local tax rate is 2.25%, state and local tax due on the sale of a dining room table that sold for $4,000 would be calculated in the following manner.


• Full sales price is taxed at the general state tax rate 7%: $4,000 x 7% = $280. State tax

• First $1,600 of the price is taxed at the local rate 2.25%: $1,600 x 2.25% = $36. Local tax

• Additional state tax at 2.75% on the price from $1601 to $3,200: $1,600 x 2.75% = $44. State tax


Total state and local tax due on the sale of the dining room table: $360


Any thoughts on how one my process this transaction in LSR?


Thanks in advance

Ryan

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