Tennessee Sales Tax Holidays
TN: Two different sales tax holidays will help give Tennesseans a break in their wallets. The first is the annual back-to-school sales tax holiday, held on the last weekend of July. The second is the Grocery sales tax holiday, which begins Aug. 1.
The back-to-school sales tax holiday, clothing and school supplies, including some electronics like personal computers, have no sales tax added to the total at the register, saving Tennesseans upwards of 10% of their total costs for these necessary items. The holiday begins at 12:01 a.m. Friday, Jul. 28, ends at 11:59 p.m. Sunday, Jul. 30. Items that will be tax-free during the weekend include
General apparel that costs $100 or less per item, such as shirts, pants, socks, shoes, dresses, etc., and School and art supplies for $100 or less per item, such as binders, backpacks, crayons, paper, pens, pencils, and rulers, and art supplies like glazes, clay, paints, drawing pads, and artist paintbrushes. Computers for personal use with a purchase price of $1,500 or less. Laptop and tablet computers are priced at $1,500 or less. Items not included in the tax-free weekend include apparel priced at more than $100, jewelry, handbags, or sports and recreational equipment. Items sold together cannot be split up to stay beneath the $100 maximum. Storage media like flash drives are also not included in the tax-free sale, as are printer supplies, individually purchased software, and household appliances. According to the state, items sold online also qualify for the sales tax holiday.
The second sales tax exemption holiday is for food. Grocery Sales Tax Holiday After that sales tax holiday, Tennesseans can save money on food items when a three-month-long sales tax holiday kicks in. The new sales tax holiday was passed as part of the Tennessee Works Act, signed into law by Gov. Bill Lee earlier this year. The bill funded $273 million for the one-time, three-month suspension of the sales tax on food and food ingredients. According to the Tennessee Department of Revenue, food and food ingredients are “liquid, concentrated, solid, frozen, dried, or dehydrated substances sold to be ingested or chewed by humans and consumed for their taste or nutritional value.” Those items will have their sales tax waived from 12:01 Aug. 1 through 11:59 p.m. Oct. 31.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.
