During this time, Tennesseans can enjoy tax-free purchases on certain clothing, school and art supplies and computers.
Tax-free items include clothing with a price of $100 or less per item, school and school art supplies with a price of $100 or less per item and computers with a price of $1,500 or less. These items are exempt from state and local sales tax in Tennessee during the holiday. Local governments are reimbursed lost sales tax revenues by the state.
Any individual can make a tax-free purchase during the holiday. However, items purchased for use by a trade or business are not exempt.
The holiday also includes purchases of qualified items sold via mail, telephone, email or internet if the customer orders and pays for the item and the retailer accepts the order during the holiday for immediate shipment, even if delivery is made after the exemption period.
If a customer wishes to order a certain tax-free item during the holiday and it is not in stock, the item remains tax-free upon delivery. In other words, backlogs and backorders outside the buyer’s control will not affect the exempt status of tax-free items. Intentionally delayed sales are taxable.
Qualified items previously placed on layaway are exempt when the final payment is made during the holiday. Items are also exempt if placed on layaway during the holiday and the final payment is made after the exemption period.
For more information, visit tntaxholiday.com or TN.gov/revenue, or contact the Tennessee Department of Revenue at salestax.holiday@TN.gov or by phone at 800-342-1003.
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