The Taxation Of Labor Performed On Tangible Personal Property

TN SB1465 proposes to change the tax rules in Tennessee by exempting labor and service costs associated with the sale of tangible personal property from sales and use tax. This includes labor for repairs and installations on such property. Essentially, it aims to reduce the tax burden on consumers and businesses involved in these services.

TN SB1465 is a senate bill in the Tennessee 114th General Assembly, sponsored by Adam Lowe (R), currently “Introduced” since October 7, 2025.

We track 9,160 Tennessee bills this session, 131 of them sponsored by Adam Lowe.

Supporters of TN SB1465 argue that this bill will stimulate economic growth by lowering costs for consumers and businesses. By exempting labor costs from sales tax, it encourages more spending on repairs and installations, which can lead to job creation and increased service demand.

Critics of TN SB1465 may contend that the bill could reduce state revenue, impacting funding for essential services. They argue that tax exemptions for labor could disproportionately benefit wealthier individuals or businesses while leaving lower-income residents to shoulder a heavier tax burden.

The bill SB1465 proposes to amend the taxation of labor performed on tangible personal property by exempting certain labor and service costs from sales and use tax. The sponsor, Adam Lowe, is primarily engaged in the education sector as an educator at Cleveland State Community College and as the owner of Lowe's Educational Services. There are no direct overlaps between his personal financial interests and the industries affected by this bill, which primarily deals with taxation related to consumer goods and services. Since his interests do not align with the bill's subject matter, the potential for personal financial gain from this legislation is minimal.

Unlike federal analysis based on campaign donations, state analysis examines legislators' personal financial interests — their jobs, businesses, and investments.

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