Tennessee Enacts Annual Sales Tax Holiday For Selected Items

Beginning on the first Friday of each August and ending at the subsequent Sunday, the State of Tennessee will initiate an annual sales tax holiday. As part of this holiday, clothing and school supplies valued at less than one-hundred dollars per item, and computers with a price of less than $1,500 per item are exempt from sales tax. The holiday, however, does not exempt clothing accessories, protective equipment, sports or recreational equipment, art supplies, school instructional materials, school computer supplies, or any items used in a trade or business or those items leased or rented. Items commonly sold together may not be priced separately to take advantage of the exemption. Certain restrictions on layaway sales, coupon and discount use, rain checks, exchanges, delivery charges, and back orders apply. (2005 TN H 2314)

Posted on May 25, 2006