There is a single article issue
Local Tax Limitation
The local option tax is applied only to the first $1600 of the purchase price of any single article of tangible personal property sold. A single article is defined as one item of tangible personal property in the form that it is delivered from the seller. Click below
http://www.tennessee.gov/assets/entities/revenue/attachments/singlearticle.pdf
The local option tax on single articles applies to less than the first $1600 in the following counties: Grundy is $333, Hamblen is $300, and Hancock is $375.
The single article limitation does not apply to sales of taxable services, amusements, custom computer software, specified digital products, and warranty or service contracts and computer software maintenance contracts. These sales are subject to the full local option tax.
State Single Article Tax
There is also an additional state single article tax. The state single article tax rate of 2.75% is levied on the amount of the sales price of a single article of tangible personal property between $1,600.01 and $3,200. The state single article tax is paid on top of the general state sales tax.
Level one is your local sales tax amount so it can be different then the example
Level two is the state single article rate of 2.75
Level three is the remaining amount to be taxed and can also vary by geographic location.