The State of Tennessee’s Annual Sales Tax Holiday is held every year on the first Friday in August and ends the following Sunday night. This year’s tax-free holiday weekend begins at 12:01 a.m on Friday, August 3 and ends Sunday, August 5 at 11:59 p.m. During this time, Tennesseans can enjoy tax-free purchases on certain clothing, school and art supplies and computers.
Tax-free items include CLOTHING with a price of $100 or less per item, SCHOOL and SCHOOL ART SUPPLIES with a price of $100 or less per item, and COMPUTERS with a price of $1,500 or less. These items are exempt from state and local sales tax in Tennessee during the holiday. Local governments are held harmless and are reimbursed lost sales tax revenues by the state.
Any individual can make a tax-free purchase during the holiday. However, items purchased for use by trade or business are not exempt.
The holiday also includes purchases of qualified items sold via mail, telephone, e-mail or Internet if the customer orders and pays for the item and the retailer accepts the order during the holiday for immediate shipment, even if deliver is made after the exemption period.
The Annual Sales Tax Holiday in TN began in six years ago. The first one was August 4-6, 2006, and saved Tennesseans about $15 million. Since then, Tennesseans have enjoyed between $8 and $10 million in tax savings each holiday.
Backlogged or layaway items: Qualified tax-free items that were not in stock during the holiday but were placed on order, the item will still be tax-free when delivered. In other words, backlogs and backorders outside the buyer’s control will not affect the exempt status of tax-free items. Intentionally delayed sales are still taxable.
Coupons: Coupons are still applicable on tax-free weekend, and can be applied to purchases.
Items that AREN’T exempt that might surprise you: jewelry, cosmetics, computer storage items like zip drives, sports equipment, cell phones, printers and printer supplies, reference books, maps, safety goggles, belt buckles, briefcases, yarn, zippers.
Items that ARE exempt that might surprise you: costumes (including novelty children’s costumes), wedding dresses/veils, clerical vestments, choir and alter clothing, chalk, baby clothes/diapers, baby catching blankets, corsets and corset laces, graduation caps/gowns, pajamas, prom dresses.