Tennessee tax relief available for wildfire victims
- Sales Tax News
- Jan 6, 2017 | Gail Cole
The fires that raged through Sevier County, Tennessee from November 28 to December 9, 2016 claimed more than a dozen lives, destroyed close to 2,500 homes and businesses, and caused approximately $500 million in damages. At least 726 residents have already signed up for federal disaster assistance, which can include grants for home repairs and temporary housing, low-cost loans, and other programs.
Individuals receiving disaster assistance from the Federal Emergency Management Agency (FEMA) as a result of the fires are also eligible for a refund for Tennessee sales tax paid on certain items, such as major appliances and furniture damaged or destroyed by the fires.
- Major appliances purchased for $3,200 or less
- Residential furniture purchased for $3,200 or less
- Residential building supplies purchased for $500 or less
The refund only applies to eligible items “purchased [after the fire] to replace damaged or destroyed items used in the individual’s primary residence.” Only one claim should be filed per residence, and the maximum refund allowed per residence is $2,500. Additional information is available from the Tennessee Department of Revenue.
Natural disasters such as wildfires often have enormous tax implications for businesses, as they destroy records. Tax automation software can’t eradicate the loss, but it can facilitate recovery. Learn more.