Deadline to File Flood Relief Sales Tax Refund Claims is Nov. 30

NASHVILLE -The Tennessee Department of Revenue is reminding Tennesseans affected by flooding and other effects of the severe storms in early May of the approaching deadline for filing flood relief claims. These claims are for all eligible purchases made between May 1, 2010and September 30, 2010to replace damaged or destroyed items, and must be filed with the Department of Revenue by Nov. 30, 2010.

This refund applies to individuals receiving disaster assistance from the Federal Emergency Management Agency (FEMA) as a result of the flooding. Eligible items include major appliances and residential furniture used in the individuals primary residence with a purchase price of $3,200 or less per item, and building supplies used for restoration of the individuals primary residence with a purchase price of $500 or less per item.

The Department of Revenue is pleased to play a role in supporting relief and restoration to Tennesseans affected by this tragedy, said Revenue Commissioner Charles Trost.  I want to urge qualified flood victims to take advantage of this opportunity and file their claims by the Nov. 30 deadline.

Qualified individuals must submit receipts showing sales taxes paid on eligible items and may file only one claim for refund. The maximum amount of refund available to any one residence is $2,500. The last day to file a claim with the Department of Revenue is Nov. 30, 2010.

Any individual submitting a claim for refund will be asked to provide documentation verifying the assistance they received from FEMA. The Natural Disaster Claim for Refund form and detailed information on claiming a refund is available at www.Tn.gov/revenue.

The Department of Revenue may assess a civil penalty up to $25,000 against any person that knowingly files a false or fraudulent claim for refund.

When the 107th General Assembly convenes in early 2011, it is possible that another bill will be introduced to allow for additional sales tax relief, for purchases made after Sept. 30, 2010. However, any new legislation will not affect the current refund opportunity. Therefore, it is very important that you file your claim for refund for purchases made between May 1, 2010and September 30, 2010, by Nov. 30, 2010.

If new legislation is passed, you will also have the opportunity to file a claim for refund for purchases made after September 30, 2010. Be sure to keep your receipts for all purchases made, they will be needed when filing your claim.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 91 percent of total state tax revenue. During the 2009-2010 fiscal year, the department collected $10.1 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2009-2010 fiscal year. In collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.TN.gov/revenue.