Annual Sales Tax Holiday Returns August 3-5
NASHVILLE, Tenn. - Governor Phil Bredesen and Department of Revenue officials remind Tennesseans that the second annual Sales Tax Holiday begins this Friday, August 3, at 12:01 a.m. and ends Sunday, August 5, at 11:59 p.m.
This holiday provides statewide sales tax exemption for school and art supplies and clothing priced $100 or less per item and computers priced $1,500 or less. This is the first holiday that art supplies will be exempt, which includes clay and glazes; tempera and oil paints; paintbrushes for artwork; sketch and drawing pads; and watercolors. Please visit the dedicated Sales Tax Holiday Web site at www.tntaxholiday.com to learn more about what items are exempt from sales taxes.
“This holiday is another way we can show our commitment to Tennessee families and their children’s education,” said Governor Bredesen. “Our Sales Tax Holiday not only helps families save on their back-to-school shopping but is a benefit for all Tennesseans, who are encouraged to take advantage of the savings.”
Tennesseans can enjoy tax exempt purchases in local stores, but the exemptions also apply to purchases by mail, telephone or Internet.
“Back-to-school shopping costs can add up, and we are happy to provide this special tax savings opportunity to Tennesseans,” said Revenue Commissioner Reagan Farr. “I encourage everyone to visit our Web site and make a list of the items your family needs so they can be ready to take advantage of the Sales Tax Holiday.”
An audio news release recorded by Commissioner Farr about the holiday is available at the Sales Tax Holiday Web site, www.tntaxholiday.com.
Consumers and retailers can call a designated toll free hotline at (800) 342-1003, Monday through Friday, 8 a.m. to 5 p.m., for more information. The hotline will also be available for extended hours on Saturday, August 4, from 8 a.m. to 5 p.m. CDT and Sunday, August 5, from 10 a.m. to 4 p.m. CDT. Questions can also be asked via e-mail at salestax.holiday@state.tn.us.
The Sales Tax Holiday is an ideal way to prepare your children for a successful school year, but school supplies are not all that is needed. Ensure a healthy school year for your children by enrolling them in CoverKids, Tennessee’s free health insurance program for children 18 and under. Please visit www.covertn.gov to learn more or enroll.
Examples of exempt items include:
| Clothing | Shirts, dresses, pants, coats, gloves and mittens, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms whether athletic or non-athletic and scarves |
| School Supplies | Binders, book bags, calculators, tape, chalk, crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, rulers and scissors. |
| Art Supplies | Clay and glazes; acrylic, tempera and oil paints; paintbrushes for artwork; sketch and drawing pads; and watercolors |
| Computer | Central processing unit (CPU), along with various other components including monitor, keyboard, mouse, cables to connect components and preloaded software (Note: While the CPU may be purchased separately, other items must be part of a bundled computer package in order to be eligible.) |
The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.