The eighth annual Tennessee “Sales Tax Holiday” is set to begin on Friday, August 2 at 12:01 a.m. and will end Sunday, August 4 at 11:59 p.m.  State Senators Jim Tracy (R-Shelbyville) and Bill Ketron (R-Murfreesboro) anticipate another successful year for shoppers, especially parents who are getting students ready to go back to school. 

“The holiday provides a good way to stimulate sales for local businesses, while providing citizens sales tax relief, especially parents who are getting their students ready for the school year,” said Senator Ketron.  “Although the holiday is geared toward back to school needs, you don’t have to be a student to get the sales tax relief.  The holiday applies to clothing and many other items, which helps consumers of any age.”

“This sales tax holiday has provided citizens with some sales tax relief, while helping businesses improve sales during a critical time in our economy,” said Senator Tracy, who co-sponsored the 2005 law­­­­­­­­­.  “I am very pleased this initiative is now in its eighth year.  I hope everyone will take advantage of this opportunity for savings and shop at area businesses to help our local economy as well.”

Senators Ketron and Tracy also supported a $43 million tax cut package in the state’s 2013-2014 budget which became effective on July 1.  Those tax cuts include reducing the state sales tax on food from 5.25% to 5.0%, allowing more senior citizens to qualify for Hall income tax relief and the second installment phasing out Tennessee’s inheritance (death) tax.  The package also provides tax relief for low income seniors, veterans and the disabled by fully funding the growth of the property tax freeze program enacted in 2007. 

During the designated three-day Sales Tax Holiday weekend, consumers will not pay state or local sales tax on select clothing with a price of $100 or less per item, school and art supplies with a price of $100 or less per item, and computers with a price of $1,500 or less. 

Clothing includes shirts, dresses, pants, coats, gloves, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms and scarves.  School supplies include items used by a student in a course of study.  It also includes binders, book bags, calculators, tape, chalk, crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, ruler, and scissors.

Computers with a purchase price of $1,500 or less, not for use in a trade or business, are also exempt from tax. Laptop computers, if priced at $1,500 or less, qualify as well as tablet computers.

Learn More:

http://tn.gov/revenue/salestaxholiday/  

Citizens or merchants who have inquiries can  call 1 (800) 342-1003