Tax Relief Available for Severe Weather Victims
NASHVILLE - The Department of Revenue wants Tennesseans affected by the March 31 and April 1 severe weather to know tax relief is available.
Tax Deadline Extensions
The Department of Revenue is extending the franchise and excise tax filing and payment deadlines to July 31, 2023 for those impacted by the March 31 and April 1 storms. This extension will automatically apply to any business in the designated disaster area, which currently includes Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton, and Wayne counties.
The Department will approve, on a case-by-case basis, extensions for other types of taxes for taxpayers impacted by these storms. Requests should include the business name, entity ID or Tennessee account number, business location, and a brief description of the loss. We have set up a dedicated email account for expedited service of these requests: Revenue.DisasterExtension@tn.gov .
More information is available in this important notice.
Sales Tax Refunds on Home Appliances, Furniture and Building Supplies
In addition, Tennessee residents impacted by these storms are potentially eligible for sales tax refunds on home appliances, home furniture, and home building supplies under state law (Tenn. Code Ann. § 67-6-396).
To be eligible for this refund, residents must be receiving financial assistance from the Federal Emergency Management Agency (FEMA) for the repair, replacement, or construction of their primary home that was damaged or destroyed in a natural disaster. To receive a refund, the Tennessee resident must file a claim with the Department of Revenue. Claims can be filed up to one year from the date on the FEMA decision letter.
Here is what to know when filing a claim:
- Eligible items are major appliances purchased for $3,200 or less, residential furniture purchased for $3,200 or less, and residential building supplies purchased for $500 or less. The maximum amount of refund available to any one residence is $2,500.
- A person can file only ONE claim for a primary residence. The claim should include all Tennessee sales and use tax paid, up to $2,500, to all retailers for any eligible items. Receipts and invoices should be compiled and tracked so that all eligible items purchased after the date of the disaster from all retailers can be submitted at one time.
For a step-by-step guide on filing a sales tax refund claim, and for answers to some of the frequently asked questions about this refund, click here.
This sales tax relief was enacted in 2010 following the devastating flooding in middle Tennessee. It has been available, since then, to Tennessee residents impacted by natural disasters, such as the wildfires in Eastern Tennessee, the devastating 2020 tornados in middle Tennessee and Chattanooga, and multiple flooding events that prompted federal aid.
The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws and the collection of taxes and fees associated with those laws. The department collects about 87 percent of total state revenue. During the 2021 fiscal year, it collected $18.4 billion in state taxes and fees and more than $3.7 billion in taxes and fees for local governments. To learn more about the department, visit www.tn.gov/revenue.