What do retailers need to know about Tennessees sales tax holiday?
• When is the sales tax holiday? Tenn. Code Ann. Section 67-6-393 establishes annual sales tax holidays in Tennessee. The holiday starts each year at 12:01 a.m. on the first Friday in August and ends at 11:59 p.m. on the following Sunday. • What items qualify for the sales tax holiday? During the holiday, the following items are exempt from sales and use tax: • 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 per item. • What items of clothing qualify? Clothing is defined as human wearing apparel suitable for general use. This includes shirts, dresses, pants, coats, gloves and mittens, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms whether athletic or non-athletic, and scarves. Clothing DOES NOT include belt buckles sold separately, patches and emblems sold separately, sewing equipment and supplies or sewing materials that become part of “clothing” s
