By Bill Grubb
News Editor

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 purchases.
    "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 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
    •  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 Tennessee.
    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.
    Please 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.)