Tax-Free Holiday

Published August 3, 2006

Back-to-School Supplies, Clothing, and Computers Tax-Exempt During Tennessee’s First Sales Tax Holiday

Tennessee will hold its first annual sales tax holiday this coming weekend, August 4-6, giving shoppers the opportunity to purchase certain school supplies, computers and clothing tax-free for a specific period of time. The program begins at 12:01 a.m. on Friday, Aug. 4 and ending at 11:59 p.m. on Sunday, Aug. 6.

Items exempt from tax during the three-day holiday include the following:

School Supplies ($100 or less per item)

*Binders
*Backpacks
*Bookbags
*Blackboard Chalk
*Calculators
*Cellophane Tape
*Compasses
*Composition Books
*Crayons
*Erasers
*Folders
*Glue, Paste, and Glue Sticks
*Highlighters
*Index Cards
*Index Card Boxes
*Legal Pads
*Lunch Boxes
*Markers
*Notebooks
*Paper
*Pencil & School
*Supply Boxes
*Pencils
*Pencil Sharpeners
*Pens
*Protractors
*Rulers
*Scissors
*Writing Tablets

Clothing ($100 or less per item)
*Boots
*Coats/Jackets
*Dresses
*Ear Muffs
*Gloves/Mittens
*Gym Suits/Uniforms
*Hats
*Jeans/Pants
*Neckties
*Nightgowns
*Pajamas
*Ponchos
*Raincoats
*Robes
*School Uniforms
*Shawls
*Shirts
*Shoes/Socks
*Undergarments
Computers ($1,500 or less)
*Computer CPU
*Monitor
*Keyboard
*Mouse
*Connecting Cables
*Notebook computers
*Laptop computers
*Preloaded software 

School supplies are defined as items used by a student in a course of study. Specifically excluded are items such as art supplies and instructional material, including reference books and school computer supplies (compact discs, printers, and printer ink).

Exempt clothing is defined as human wearing apparel for general use. It excludes accessories such as jewelry or bags, protective equipment, and sports and recreational equipment such as baseball gloves.

Computers with preloaded software and components purchased with the computer are also exempt. Computers and their components must be purchased as a system. Individual computer parts and accessories, and software that is not preloaded on the computer, do not qualify for the exemption. PDAs and MP3 players also do not qualify for exemption.
Additionally, exemptions do not apply to items used in a trade or business, or to items that are rented.

Layaway sales qualify for the exemption if final payment is made and the property is given to the purchaser during the holiday or if the layaway order is made during the holiday even if delivery is made after the holiday ends.

More information from the Department of Revenue is available from the following sources:
• Web site: www.Tennessee.gov/revenue
• E-mail: salestax.holiday@state.tn.us
• Telephone: (800) 342-1003 8 a.m. - 5 p.m., CST, Monday through Friday
Special telephone hours for Sales Tax Holiday:
Saturday, Aug. 5: 7 a.m. to 7 p.m., CST
Sunday, Aug. 6: 10 a.m. to 6 p.m., CST