Shoppers and retailers are getting ready for one of the biggest shopping events of the year, the Tennessee Sales Tax Holiday.
Sales of certain clothing, shoes, school supplies and computers are tax exempt during the annual Tennessee Sales Tax Holiday that will begin at 12:01 a.m. on Friday, July 29 and ends Sunday, July 31, 2016 at 11:59 p.m.
A favorite time for local residents, the Sales Tax Holiday also makes Sevier County a popular shopping destination for visitors due to the area’s outlet malls and retail stores. Many stores offer extended hours and sales during the weekend event, which is designed to help parents shopping for back to school supplies. However, all consumers can participate. Only businesses are excluded.
Clothing and shoes, as well as school and art supplies, that cost $100 or less per item are exempt from sales tax during the Sales Tax Holiday. Computers and tablets with a purchase price of $1,500 or less are also exempt. Qualifying items must be below the maximum price, but there is no limit to the number of items a shopper may buy.
Purchases of qualifying items bought in person from retail stores throughout Tennessee, and those by mail, telephone, email and from internet retailers will qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the Sales Tax Holiday period for immediate shipment to a Tennessee address, even if delivery is made after the exemption period.
What items are included in the Tennessee Sales Tax Holiday?
Clothing items with a price of $100 or less
Clothing is defined as human wearing apparel suitable for general use. This includes shirts, dresses, pants, coats, gloves and mittens, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms whether athletic or non-athletic, and scarves.
Clothing does not include belt buckles sold separately, patches and emblems sold separately, sewing equipment and supplies or sewing materials that become part of “clothing” such as thread, fabric, yarns and zippers.
While clothing is eligible for the holiday, clothing accessories, protective equipment and sport or recreational equipment are NOT eligible for the holiday and are subject to tax during the holiday period.
School Supplies with a price of $100 or less
A school supply is defined as an item used by a student in a course of study. Examples are binders, book bags, calculators, tape, chalk, crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, rulers and scissors. School art supplies are defined as clay and glazes; acrylic, tempera and oil paints; paintbrushes for artwork; sketch and drawing pads; and watercolors.
Items excluded from the holiday (and therefore subject to sales tax) are school instructional materials and school computer supplies.
Computers with a price of $1500 or less
A computer is defined as a central processing unit (CPU), along with various other components including monitor, keyboard, mouse, cables to connect components, and preloaded software. While the CPU may be purchased separately, other items must be part of a bundled computer package in order to be eligible. If the computer purchase price is above $1,500 the entire amount is taxable as there is no provision to exempt a portion of the sales price.
Items excluded from the holiday are individual computer parts, such as monitors, keyboards, speakers, and scanners when not sold in conjunction with a CPU; individually purchased software or other software not part of a preloaded software package on the initial purchase of a computer; storage media, such as diskettes and compact disks; handheld electronic schedulers; personal digital assistants (PDAs); e-readers, video game consoles; and computer printers and supplies for printers, such as paper and ink.
Consumers with questions about the Sales Tax Holiday can find more information here.
Complete listing of TAX EXEMPT Items
|Antique clothing (for wear)|
|Baby receiving blankets|
|Blackboard Chalk||School supply|
|Book Bags||School supply|
|Boots, general purpose (winter,dress, cowboy, hiking)|
|Bridal Gowns and Bridal Veils|
|Cellophane Tape||School supply|
|Choir and Altar Clothing|
|Clay||School art supplies are exempt .|
|Clothing||Exempt if $100 or less per item.|
|Composition Books||School supply|
|Computers, Notebooks, Laptops, and Tablets||Exempt if $1500 or less. Includes CPU and other bundled components such as speakers, monitor, keyboard, mouse,|
|cables, and basic software.|
|Corsets and Corset Laces|
|Costumes, including novelty|
|Diapers – (adult and baby, cloth or disposable)|
|Dress Gloves and Shoes|
|Folders – expandable, pocket, plastic, and manila||School supply|
|Formal Clothing, purchased|
|Girdles, Bras, and Corsets|
|Glazes||School art supplies are exempt.|
|Glue, Paste, and Paste Sticks||School supply|
|Golf Clothing (caps, dresses,|
|shirts, skirts, pants)|
|Graduation Caps and Gowns,|
|Gym Suits and Uniforms|
|Hats, general purpose: cowboy, baseball, knit|
|Hooded Shirts and Sweatshirts|
|Index Card Boxes||School supply|
|Index Cards||School supply|
|Knitted Caps and Hats|
|Legal Pads||School supply|
|Lunch Boxes||School supply|
|Neckwear, including ties and scarves|
|Nightgowns and Night Shirts|
|Overshoes and Rubber Shoes|
|Pads, sketch and drawing||School art supplies are exempt per legislation passed in 2007.|
|Paintbrushes, for artwork||School art supplies are exempt.|
|Paints, acrylic, tempora, and oil||School art supplies are exempt.|
|Paper – loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper||School supply|
|Pencil Boxes||School supply|
|Pencil Sharpeners||School supply|
|Poster Board||School supply|
|Raincoats, Rain Hats, and Ponchos|
|Rubber Thongs, Flip-Flops|
|Running Shoes, Without Cleats|
|School Art Supplies||Clay and glazes, paints (acrylic, tempora, and oil), paintbrushes for artwork, sketch and drawing pads, and watercolors are|
|exempt per legislation passed in 2007.|
|School supplies||Exempt if $100 or less per item.|
|School Supply Boxes||School supply|
|Shawls and Wraps|
|Sleepwear, Nightgowns, Pajamas|
|Socks (including athletic)|
|Suits, Slacks, Jackets, and Sport Coats|
|Tennis skirts, dresses, shoes|
|Undergarments, including longjohns|
|Uniforms||Athletic or Non-Athletic|
|Veils||Veils for general use are exempt.|
|Vests, except hunting and water|
|Wedding Gowns||$100 or less rule applies.|
These items are NOT included the Sales Tax Holiday and remain TAXABLE
|Belt Buckles||Belt buckles sold separately are not exempt.|
|Bridal apparel, other than gowns or veils|
|Cell Phones, including smart phones|
|Clothing Accessories or Equipment||Incidental items worn on the person or in conjunction with clothing.|
|Compact Disks||Computer storage media|
|Computer Software||Basic computer software purchased with a bundled system is exempt. Individually purchased software and upgraded|
|software purchased with a bundled system is taxable.|
|Computer Storage Media||Computer storage media (diskettes, compact disks), handheld electronic schedulers, personal digital assistants (PDAs), computer printers, and printer supplies (printer paper, printer|
|Diskettes||Computer storage media|
|Electronic Schedulers||School computer supply|
|Emblems||Emblems sold separately are not exempt.|
|Gloves, protective or welders’|
|Guards, sports hand, elbow, mouth, shin|
|Jump Drives||Computer storage media|
|Paintbrushes, other||Paintbrushes not used for artwork are taxable.|
|Paints, other||Only acrylic tempora, or oil paints defined as school art supplies are exempt.|
|Patches||Patches sold separately are not exempt.|
|Personal Digital Assistants (PDAs)||School computer supply|
|Printer Ink||School computer supply|
|Printer Paper||School computer supply|
|Printer Supplies||School computer supply|
|Printers||School computer supply|
|Protective Equipment||Items for human wear and designed as protection of the wearer against injury or disease or as protections against damage or injury of other persons or property, but not suitable for general use.|
|Respirators, paint or dust|
|School Computer Supplies||Computer storage media (diskettes, compact disks), handheld electronic schedulers, personal digital assistants (PDAs), computer printers, and printer supplies (printer paper, printer ink).|
|School Instructional Material||Reference books, and reference maps and globes. Textbooks and workbooks exempt under existing law.|
|Sewing Equipment & Supplies|
|Sewing Materials||Materials that become part of clothing are not exempt.|
|Shoes, ballet or tap|
|Shoes, cleated or spiked|
|Shoulder Pads for Dresses, Jackets, etc.|
|Shoulder Pads, sports|
|Skates, roller and ice|
|Skin Diving Suits|
|Sport or Recreational Equipment||Items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for|
|Trade or Business, items used in|
|Video Game Consoles|