Tennessee Sales Tax Holiday

A: For 2006, the holiday will start at 12:01 a.m. on Aug. 4 and end at 11:59 p.m. on Aug. 6.

Q: What items qualify for the sales tax holiday?

A: During the holiday, the following items are exempt from sales and use tax: 1) clothing with a price of $100 or less per item; 2) school supplies with a price of $100 or less per item; and 3) computers with a price of $1,500 or less per item.

Q: What items of clothing qualify?

A: Clothing includes shirts, dresses, pants, coats, gloves and mittens, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms whether athletic or non-athletic, and scarves.

Clothing DOES NOT include belt buckles sold separately, patches and emblems sold separately, sewing equipment and supplies or sewing materials that become part of clothing such as thread, fabric, yarns and zippers. Other items that are NOT included in clothing include jewelry, umbrellas, sunglasses, watches, helmets, etc.

Q: Do the tax-exempt items have to be for a child?

A: No. Anyone, regardless of age, can participate in the tax-free holiday.

Q: What types of items qualify as school supplies?

A: School supply are defined as items used by a student in a course of study. Examples are binders, book bags, calculators, tape, chalk, crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, rulers, and scissors.

Some items NOT included are: paints, paintbrushes, drawing pads, diskettes, compact disks, personal digital assistants, computer printers, and printer supplies for computers, including printer paper and printer ink.

Q: Does computer software qualify for the holiday?

A: No. While computers with a price of $1,500 or less may be purchased exempt from tax during the holiday, purchases of computer software are excluded from the holiday and are subject to tax.

Q: Does the $100 exemption apply to the first $100 of a school supply or an item of clothing being purchased? In other words, if the selling price of a book or a clothing item is $105, is the first $100 exempt from sales tax?

A: No. The exemption applies to items selling for $100 or less. If an item sells for more than $100 ($105 in this example), tax is due on the entire selling price.

For more information
? Web site: www.Tennessee.gov/revenue
? E-mail: [email protected]
? Phone: (800) 342-1003 from 8 a.m. to 5 p.m.