By Bill Grubb
NASHVILLE - Although people
are accustomed to spending money on holiday shopping, the upcoming "tax holiday" could save
consumers some of their hard earned cash.
The seventh annual Sales Tax Holiday
is scheduled for Friday, August 3 through Sunday, August 5. During these three days Tennessee
shoppers can save nearly 10 percent on tax-free clothing, school and art supplies and computer
"The annual Sales Tax Holiday was designed with Tennessee families
in mind, providing savings for families, especially as students start the new school year," Gov.
Bill Haslam said.
The holiday begins Friday, August 3 at 12:01 a.m. and ends
Sunday, August 5 at 11:59 p.m. During the designated three-day weekend, consumers will not pay
state or local sales tax on clothing with a price of $100 or less per item, school and art supplies
with a price of $100 or less per item, and computers with a price of $1,500 or less.
"As in years past, last year's tax-free weekend was very successful, providing Tennessee
taxpayers nearly $9.6 million in tax savings," Revenue Commissioner Richard H. Roberts explained.
"We are hopeful that all Tennessee shoppers will take advantage of the tax relief provided by the
2012 Sales Tax Holiday."
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
• School Supplies: Binders, book bags, calculators, tape, chalk,
crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, rulers and
• Art Supplies: Clay and glazes; acrylic, tempera and oil
paints; paintbrushes for artwork; sketch and drawing pads; and watercolors
• Computers: Central processing unit (CPU), along with various other components
including monitor, keyboard, mouse, cables to connect components and preloaded software. State
officials say iPads and other tablet computers are eligible for tax exemption, while smart phones
and video game consoles are not.
The exemption is based on the purchase of
items that qualify for the holiday. No identification or exemption certificate is required. As
long as an individual purchases an item that qualifies to be sold tax exempt, they should not pay
sales tax on the item.
Merchants who sell the items listed must participate in
the sales tax holiday. Purchases can be made from Tennessee retailers, including retailers
that sell through the Internet or catalog if those items are to be delivered into
If the selling price of an item is $105, tax is due on the entire
selling price. A retailer may not split items that are normally sold together in order to fall
under the sales price threshold.
Excluded from the holiday are individual
computer parts, such as monitors, keyboards, speakers, and scanners when not sold in conjunction
with a CPU; individually purchases software or other software not part of a preloaded software
package on the initial purchase of a computer; storage media, such as diskettes and compact disks;
handheld electronic schedulers; personal digital assistants (PDAs); video game consoles; and
computer printers and supplies for printers, such as paper and ink.
visit the Sales Tax Holiday Web site at http://www.tntaxholiday.com
to learn more about the items exempt
from sales tax. The Tennessee Department of Revenue also assists consumers via e-mail, (Salestax.Holiday@TN.gov
) , and through its toll-free statewide telephone hot line, (800)
342-1003. Staff is available to answer questions Monday through Friday 7 a.m. to 5 p.m.
Central Time. (Out-of-state and Nashville-area callers, please dial (615) 253-0600.)