Tennessee - Sales and Use Tax: Taxpayers Reminded of First Annual Tax Holiday

The Tennessee Department of Revenue and Governor Phil Bredesen remind taxpayers that the state's first annual sales tax holiday begins at 12:01 a.m. on Friday, August 4 and ends at 11:50 p.m. on Sunday, August 6, 2006.  During that time, qualified clothing and school supplies priced $100 or less per item and computers priced $1500 or less per item are exempt from Tennessee state and local sales and use taxes.  Purchases of qualified items may be made by mail, telephone, e-mail, or the Internet if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.  Qualifying purchases must be made from Tennessee retailers, including retailers that sell through the Internet or by catalog provided the items are delivered to Tennessee. 

Taxpayers may visit the Department's web site at www.tntaxholiday.com or send an e-mail to salestax.holiday@state.tn.us or call (800) 342-1003 for more information.  The Department's web site provides information for both consumers and retailers and includes a reference sheet, a comprehensive list of qualified back-to-school supplies, clothing, and computers, and alphabetical list of exempt and taxable items, and a list of frequenly asked questions (FAQs) about sales and use taxes in general as well as the holiday.