All lease payments made after July 15, 2002 are effected by this law change regardless of when the lease originally started. In addition, changes contained in TCA Sec. 67–6-702(d) will effect leases of tangible personal property with single items that require a payment of more than $1,600 dollars beginning after July 15, 2002. An increase in the tax rate of 2.75% will be applied to the amount of the lease payment for each item that is greater than $1,600. If a lease payment amount is more than $3,200 on a single item, the original state rate is applied on any amount that exceeds the cap of $3,200. (Important Notice, Tennessee Department of Revenue, July 12, 2002)