TN lawmakers approve two sales tax holidays for 2020

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NASHVILLE, Tenn. (WATE) – Later this summer, Tennesseans will have two weekends to make purchases without sales tax on certain items.

The General Assembly approved the sales tax holiday expansion in the state budget that was approved last week.

The first weekend will begin 12:01 a.m. July 31 and will end at 11:59 p.m. Aug. 2.

The state of Tennessee also provides several guidelines and information to be aware of for the 2020 tax-free holiday weekend.

What is tax free?

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.

List of Exempt & Taxable Items:

Second 2020 tax-free weekend

The state of Tennessee also announced that for 2020 only, on the weekend of Aug. 7-9, retail sales of food and drink by restaurants and limited-service restaurants are exempt.

Standard sales tax holiday continues in 2021.

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