Sales tax holiday under way throughout state
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Gov. Phil Bredesen has been busy touting this first-ever event, even making stops at a Target in Memphis, a Wal-Mart in Chattanooga and a Kmart in Johnson City.
Speaking from behind a table loaded with shirts, slacks, dresses, shoes, marking pens, notebooks, glue and various computers at a Wal-Mart in Chattanooga, the governor said families spending on average more than $500 for back to school will see a benefit of about $50. In McMinnville, shoppers will save 9.75 percent.
?I think this is going to be a meaningful contribution,? he said of the savings to shoppers.
The sales tax holiday is already under way after beginning at 12:01 a.m. this morning. It ends at 11:59 p.m. Sunday. Another one-time sales tax holiday is set for April.
Bredesen said the tax holiday he promised while campaigning in 2002 is projected to reduce annual sales tax revenue by about $11 million and was made possible by the state?s improved financial condition. Bredesen said the holiday helps ?families who really need it.?
Tennessee is among 13 states and Washington, D.C., with sales tax holidays for back-to-school shoppers. The holiday was adopted in 2005, but delayed until officials decided the state could afford it.
The package exempts from state and local sales tax purchases items of clothing or individual school supplies that cost less than $100 or personal computers under $1,500 each.
Tennessee?s state sales tax is 7 percent and local governments are allowed to levy up to 2.75 percent. The combined 9.75 percent represents nearly $1 on every $10 in purchases.
Annette Benford left the Wal-Mart pushing a buggy of groceries Wednesday, accompanied by a 5-year-old grandson, Darious Hicks.
Benford said she would be buying school supplies and clothing for four grandchildren Friday, likely spending more than $100 while also trying to avoid the anticipated crowds.
?I?ll be here at 1 a.m. Friday,? Benford said. ?That?s how grandmas have to manage things.?