Is it true that when you spend over $1000 your sales tax goes down?

Question

My husband thinks that it does. We live in Tennessee.

Answer 1

Ab-so-lute-ly! Just come into my store and I will promise that each time you spend $1000 or more I will personally lower the sales tax.

Answer 2

Some states have a cap on the local portion of the sales tax per transaction.

For example, in Tennessee the full sales tax percentage applies to the first $1000 and then only the state tax (7%) applies to anything above that.

Answer 3

Not exactly.

The state sales tax rate is 6% on food and 7% on everything else. However, on a single item purchase of more than $1,600 but less than $3,200 it drops to 2.75%.

Additionally there are city and county local option sales taxes that range from 1.5% to 2.75% on top of the state rate. The local option rate is capped at a maximum of the tax on $1,600 on a single purchase although localities are allowed to set a lower rate.

Answer 4

I see nothing gets by your husband , does it ?

He`s absolutely correct , Eunice ! The more you spend ........ the more you save in taxes . BUT ........... that`s not all !

If you save your purchase receipts and send them in before midnight , Dec31st of each year , you`re entered in the annual
"Free Sales Tax for a Year" draw at your Taxation office .

The winner is entitled to "tax-free" status for a year by showing the special card mailed with the winner`s notification .
Contact your local taxation office for complete details . This offer valid in Tennessee only . Participants must be 21 or older .