Tennessee sales tax holidays approaching

Tennessee

https://www.tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday/sales-tax-holiday.html

NASHVILLE, Tenn. (WATE) — Tennesseans will get two reprieves from the sales tax this year beginning in less than two weeks.

The General Assembly passed legislation extending the yearly tax-free weekend to two weekends and doubling the price limits on most tax-exempt items. 

“The sales tax holiday is more significant than ever before for families, citizens and businesses,” Sen. Richard Briggs said. “As the economy continues to suffer from the COVID-19 pandemic, it is important for citizens to be able to keep more money in their pockets while also boosting spending at local businesses and restaurants. I encourage all citizens to take advantage of these tax-free weekends.”

The first tax-free weekend focuses on clothing and other back-to-school items. It begins at 12:01 a.m. Friday, July 31, and ends at 11:59 p.m. Sunday, Aug. 2. Clothing, school supplies, computers and other qualifying electronic devices will be exempt from sales tax. Certain price restrictions apply.

Clothing:

  • General apparel that costs $200 or less per item, such as shirts, pants, socks, shoes, dresses, etc.
  • Items sold together, such as shoes, cannot be split up to stay beneath the $200 threshold.
  • Available to anyone (not just students).
  • Apparel that costs more than $200 is taxable.
  • Items such as jewelry, handbags, or sports and recreational equipment are taxable.
  • Items purchased for business or trade use are taxable.

School Supplies:

  • School and art supplies with a purchase price of $200 or less per item, such as binders, books, backpacks, crayons, paper, pens, pencils, and rulers, and art supplies such as glazes, clay, paints, drawing pads, and artist paintbrushes. 
  • Items that are normally sold together cannot be split up to stay beneath the $200 threshold.
  • Available to anyone (not just students).
  •  School and art supplies individually priced at more than $200 are taxable. 
  • Items purchased for business or trade use are taxable

Computers and Other Electronics:

  • Computers with a purchase price of $3,000 or less. This includes laptops, tablets, smartphones, and electronic readers 
  • Computers for personal (not business) use.
  • Anyone (not just students) can buy items that qualify. 
  • Computer parts, like keyboards and monitors, when not sold with a CPU. 
  • Storage media, like flash drives and compact discs. 
  • Individually purchased software, video game consoles, computer printers and supplies, and personal digital assistants are taxable.

Briggs also stressed the importance of continuing responsible behavior as citizens participate in the tax-free weekends.

“I also want to remind citizens that when visiting local retail stores and restaurants, it remains very important to wear a mask and keep your distance from other people whenever possible,” he said. “And if you are not feeling well, shop online. Eligible items purchased online will also be tax-free.

“It is imperative to practice these responsible behaviors if we want to continue to see the economy improve.”

Exempt items sold online are also eligible. Consumers must purchase items for personal use, not business or trade.

The second sales tax holiday weekend focuses on restaurant sales. It begins at 12:01 a.m. Aug. 7 and ends at 11:59 p.m. Sunday, Aug. 9. During this time the retail sale of food and drink by restaurants and limited-service restaurants is exempt from sales tax.

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