Tennessee imposes a tiered taxing structure on the sale of a single article, which is defined as "one item of tangible personal property that is considered by common understanding to be a separate unit, apart from any accessories or extra parts."
If you sell multiple items bundled together as a single line item of $1,600.00 or more, you may notice that the single article tax is applied.
Can we override the tiered Tennessee single article tax?
If you sell multiple items bundled into a single line item that should not be treated as a single article, you can override the single article tax in Tennessee by creating custom tax rules. Click here to download a tax rule import file that includes tax rules that will override the Tiered taxing structure. After you've downloaded the file, learn how to import custom tax rules.
The tax rules in this import file override the single article tax for all Avalara tax codes. If you sell some items that should be treated as single items and some bundled items that shouldn't, consider modifying the tax rule import file so that the rules apply to only the tax code you use for the bundled items. Enter the tax code you use for bundled items in the TaxCode field (column K) for all of the rules in the file, then save the file and import.
Avalara recommends testing all custom tax rules in a sandbox account before using them in your production account. Avalara does not update or maintain custom tax rules in your account, so you should make sure you keep it up to date.