In conjunction with back to school time, the state of Tennessee is offering a break on taxes from 12:01 a.m., Friday, July 27 until 11:59 p.m., Sunday, July 29.
It’s a great chance to save money, whether you’re going back to school or doing some much-needed pantry shopping.
One of the high-dollar items that may be covered is that new computer you’ve been wanting.
According to state guidelines, computers under $1,500 purchased over the weekend apply for no tax. This includes laptops and tablets, as long as they are for non-business use. Note, however, that parts like keyboards and monitors, if not sold with a CPU will be charged tax, as will video games, printers and e-book readers like Kindles or Nooks.
Clothes if they cost less than $100 per item are exempt from being charged sales tax. That includes shirts, pants shoes and most general apparel in children and adult sizes. Not covered is jewelry, handbags, sports or recreational items, neither is wetsuits, ballet shoes nor ski boots.
School supply items costing less than $100 is eligible. In addition to binders, pens and pencils, backpacks, art supplies and glazes are covered. Not covered are non artwork paintbrushes and sewing supplies.
For a detailed list of exempt and non-exempt lists, go to www.tn.gov/revenue and click on Sales Tax Holiday.
Item out of stock? According to the state, “If a customer wants to order a certain tax-free item during the holiday and it is not in stock, the item remains tax-free upon delivery.”
Yet intentionally delayed sales are taxable.
Online orders are exempt if they qualify and the seller is in Tennessee.
According to Tn.gov, “Purchases made from Tennessee retailers qualify. This includes retailers that sell through the Internet or a catalog, if those items are to be delivered into Tennessee.”
Mail order, telephone and email sales also qualify, “Qualified items sold to purchasers by mail, telephone, e-mail, or Internet will qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the holiday period for immediate shipment, even if delivery is made after the exemption period. However, if the order and payment were made before the holiday, even if the item was delivered during the holiday, it would not qualify for the exemption.”
Stores that sell eligible items must participate in the sales tax holiday. Unless they sell only to other businesses or do not sell items that qualify for the holiday.