State Senator Paul Bailey (R-Sparta) is encouraging citizens to take advantage of Tennessee’s 15th annual Sales Tax Holiday set to begin the last weekend in July. This year, the General Assembly passed legislation extending the yearly tax-free weekend to two weekends and doubling the price limits on most tax-exempt items. This extension, which was supported by Sen. Bailey in the 2020/2021 state budget, will help Tennesseans save money and support local retail businesses and restaurants.
“These tax-free weekends will help keep more money in the pockets of Tennesseans as families, teachers and parents prepare for school to begin this fall,” said Bailey. “This year, I am glad the sales tax holiday will not only support local businesses, but it will also help support our local restaurants, many of which are struggling as a result of the COVID-19 pandemic. I was glad to support this initiative in the General Assembly and look forward to the positive impact it will have on our economy.”
The first tax-free weekend focuses on clothing and other back-to-school items. It begins at 12:01 a.m. on Friday, July 31, and ends Sunday, August 2, at 11:59 p.m. During this time, consumers may purchase clothing, school supplies, and computers and other qualifying electronic devices without paying sales tax. Certain price restrictions apply. For school supplies and clothing, the threshold for qualifying items is $200 or less. For computers and other electronics, the price threshold is $3,000 or less. Download the full list of tax-exempt items here.
Exempt items sold online are also eligible. Consumers must purchase items for personal use, not business or trade.
The second sales tax holiday weekend focuses on restaurant sales. It begins at 12:01 a.m. on August 7 and ends Sunday, August 9, at 11:59 p.m. During this time the retail sale of food and drink by restaurants and limited service restaurants, as defined in Tenn. Code Ann. § 57-4-102, is exempt from sales tax.
For more information about the sales tax holiday weekends, visit www.tntaxholiday.com.