State announces sales tax holiday
The dream of going back-to-school shopping without paying sales tax has come true.
Tennesseans will have this opportunity Aug. 4-6 when the state holds its first sales tax holiday.
Everything from jeans, to shoes, to pencils, to lunch boxes can be purchased without paying any sales tax. In McMinnville, that amounts to a 9.75 percent savings. Even home computers under $1,500 are exempt from sales tax during the Friday-through-Sunday event.
?I think it?s a great idea, especially with as tight as everybody is with their budget right now,? said state Rep. Judd Matheny, who indicated the sales tax holiday isn?t limited to just students.
?It?s a wonderful opportunity to make a wide variety of purchases for every member of your family,? added Matheny.
At the JCPenney store in Three Star Mall, manager Jamie Dowdy says he expects the sales tax holiday to translate into a ?tremendous? sales weekend.
?We?re even thinking of hiring some extra people just for those three days,? said Dowdy. ?We?ve already started planning because we?re expecting it to be a huge event. Other stores may get caught offguard but we won?t be one of them.?
Dowdy said back-to-school shopping is second only to Christmas as far as retail sales. He said the months of August, November and December account for roughly 50 percent of all his sales for the entire year.
Currently 13 states have sales tax holidays with Florida being the only state to hold the holiday in a month other than August. The sales tax holiday is widespread in the South with Georgia, Alabama, North Carolina and South Carolina joining Tennessee on the list.
?We?re excited our first-ever sales tax holiday will supply a cost savings on clothing, school supplies and computers to Tennesseeans at the beginning of the school year,? said Emily Richards of the Tennessee Department of Revenue.
Tennessee?s sales tax holiday does come with restrictions. The sales tax exemption does not apply to any single article of clothing or any school supply that costs over $100.