Shoppers across Tennessee, especially those ready for back to school shopping, are looking forward to the annual TN Sales Tax Holiday.
The State of Tennessee holds the TN Sales Tax Holiday each year, beginning 12:01 a.m. on the first Friday in August and ending the following Sunday night at 11:59 p.m., during which time certain clothing, school and art supplies, and computers are exempt from state and local sales tax. This year it starts Friday, August 1 and ends Sunday, August 3.
To qualify for the sales tax holiday:
- Clothing must be a price of $100 or less per item
- School and school art supplies must be priced at $100 or less per item
- Computers must be priced $1500 or less
The complete list of sales tax holiday items is long and also includes items such as backpacks and book bags, shoes, diapers, bridal gowns, and hats.
Any individual can take advantage of the TN Sales Tax Holiday. You do not need to be a student or even a resident of Tennessee. This will no doubt make the outlet malls and retail shops here in our area a popular destination for many east Tennesseans and those traveling from nearby North Carolina and Georgia.
The TN Sales Tax Holiday also applies to purchases of qualified items sold via mail, telephone, email and the web. The buyer must purchase and pay for the item, and the seller accept the order, during the tax exemption period. The item does not need to be delivered during the tax exemption period, and delayed delivery of the item due to backlog or backorder will not affect its tax-exempt status.
Qualified items placed on layaway before the TN Sales Tax Holiday are exempt from tax if the buyer makes the final payment during the tax exemption period. Qualified items are also exempt if placed on layaway during the TN Sales Tax Holiday and the buyer makes the final payment after the exemption period ends.
Local governments dependent upon sales tax revenue do not suffer from the TN Sales Tax Holiday. The State of Tennessee reimburses local governments for any lost sales tax revenues during this time.