First Tennessee Sales Tax Holiday

Tennessee governor Phil Bredesden signed into law a bill that enacts an annual three-day tax holiday from Tennessee sales and use tax beginning at 12:01 a.m. on the first Friday of each August and ending at 11:59 p.m. on the following Sunday.  The first annual sales tax holiday, scheduled for August 2006, is a welcome form of tax relief for many Tennesseans.   Items exempt from state and local sales taxes include clothing and school items with a sales price of $100 or less per item and computers with a sales price of $1,500 or less per item.  Items which remain taxable include computer software, clothing accessories or equipment, protective equipment, sport or recreational equipment, school art supplies, school instructional materials, school computer supplies, leases or rentals or items used in a trade or business.