2014 Sales Tax Holiday Set For Thurs.-Sat., August 1-3

The State of Tennessee’s Annual Sales Tax Holiday is held every year on the first Friday in August and ends the following Sunday night. This year’s tax-free holiday weekend begins at 12:01 a.m on Friday, August 1 and ends Sunday, August 3 at 11:59 p.m.

What is Tax Free?

Clothing ($100 or less per item)

Examples of tax-free items during the holiday include:

• Belts • Caps • Coats

• Dresses • Gloves  • Hats

• Hosiery • Jackets • Jeans

• Neckties • Pants • Scarves

• School Uniforms • Shirts

• Shoes • Socks • Sneakers

• Underwear

 During the holiday, clothing with a purchase price of $100 or less per item is exempt from sales tax. Clothing items costing more than $100 or any clothing purchased for use by a trade or business is not exempt from tax. Items that are normally sold together, such as shoes, may not be split to achieve the $100 threshold. Additionally, there is no requirement that purchases be made only for students. If an item is tax exempt, anyone may make the purchase tax–free.

Exempt clothing is defined as human wearing apparel for general use. It does not include accessories such as jewelry or bags or sports and recreational equipment like baseball gloves.

For layaway sales, qualified clothing is exempt when final payments are made by customers on items previously placed on layaway. When customers put clothing items on layaway during the holiday period, they will also be tax-exempt when final payment and delivery is made after the exemption period.

School Supplies

($100 or less per item)

Examples of tax-free items during the holiday include:

School Supplies

• Binders         • Book Bags/

   Backpacks

• Calculators • Chalk

• Crayons • Erasers

• Folders • Glue

• Lunch Boxes

• Notebooks

• Paper • Pens • Pencils

• Rulers • Scissors • Tape

School Art Supplies

• Clay and Glazes • Paints

• Paintbrushes • Sketch and

Drawing Pads  • Watercolors

Read the rest of the story in this weeks Fentress Courier.