Taxes, Exemption and Credits - As introduced, exempts certain school supplies and instructional materials from the sales and use tax if sold to a teacher employed by a local education agency or public charter school. - Amends TCA Title 67, Chapter 6.

HB 1540 exempts teachers employed by Tennessee public schools or charter schools from paying sales tax on school supplies, art supplies, and instructional materials priced at $100 or less per item when purchased for classroom use. It excludes computers, clothing, video game consoles, and items for personal or business use. Teachers must apply for a state-issued exemption certificate to verify eligibility, and retailers must document this exemption on sales records. The bill takes effect July 1, 2026, and applies only to items used for instruction, not personal consumption.