Tax Free Weekend in Tennessee is quickly approaching. What does this mean for shoppers? What items are included in the tax free special? What items are excluded? Why does have a tax free weekend?
Tennessee is one of seventeen states in the US that take part in a sales tax holiday – AKA Tax Free Weekend. Each state has certain items that are exempt from sales tax during the sales tax holiday. For example: During Louisiana’s tax free holiday, hurricane preparedness items, firearms and ammunition (up to a certain amount) are tax free. Virginia has a tax free holiday on clothing, school supplies, green appliances and hurricane preparedness items. Not only do these holidays help consumers, but it also helps encourage business investment and development.
The State of Tennessee always has tax free weekend the first Friday of August and ends the following Sunday night. Tax Free Weekend 2014 will begin 12:01 AM on Friday, August 1 and ends Sunday, August 3 at 11:59 PM.
What is considered to be tax free during this tax holiday?
The State of Tennessee allows for these items to be tax free:
- School Supplies
There are guidelines for each item.
Clothing ($100 or less per item)
Examples of tax free items during the holiday include:
Clothing items are defined as human wearing appeal for general use. Items that are not included are accessories like jewelry, bags and sports equipment (baseball gloves are not tax exempt).
School Supplies ($100 or less per Item)
Examples of tax-free items during the holiday include:
|Book Bags / Backpacks
||Clay and Glazes
||Paintbrushes and Paints
||Sketch and Drawing Pads
Specifically excluded are items such as instructional material, including reference books and school computer supplies (compact discs, printers and printer ink).
Computers ($1,500 or less)
During these holidays, computers with a purchase price of $1,500 or less, not for use in a trade or business, are exempt from tax. Laptop computers, if priced at $1,500 or less, also qualify as well as tablet computers. 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.
For purposes of this exemption, a computer is defined as a central processing unit (CPU), along with various other components including monitor, keyboard, mouse, cables to connect components, and preloaded software. While the CPU may be purchased separately, other items must be part of a bundled computer package in order to be eligible. Software beyond what is preloaded with the computer package is not exempt from tax.
The following items are not exempt from tax:
- Computer parts, such as monitors, keyboards, speakers, and scanners when not sold in conjunction with a CPU
- Individually purchased software or other software not part of a preloaded software package on the initial purchase of a computer
- Storage media, such compact disks and USB flash drives
- Handheld electronic schedulers
- Personal digital assistants (PDAs) and electronic readers (i.e., Kindle, Nook, etc.)
- Video game consoles
- Computer printers and supplies for printers, such as paper and ink
What does this mean for shoppers? It will be a very busy time in the shopping areas here in Pigeon Forge. Tanger Five Oaks, Burkes Outlet in Pigeon Forge, Nike Clearance Outlet, Walmart in Sevierville and other locations will be bustling with many a shopper! Be prepared for delays when seeking out the bargains.
There are numerous shopping locations that will be having big sales and extended hours. Check out our friends at Tanger Five Oaks (www.tangeroutlet.com/sevierville), Burkes Outlet in Pigeon Forge (www.burkesoutlet.com), The Nike Clearance Outlet in Pigeon Forge (www.nike.com/us/en_us/), Walmart in Sevierville (www.walmart.com) and more for hours of operation and sales during this exciting time!