Sales Tax Holiday Offers More Exempt Items

NASHVILLE, Tenn. - Tennessee’s second annual sales tax holiday is set for Aug. 3-5, offering three full days of tax breaks for families preparing children to go back to school. This past session the General Assembly expanded the sales tax holiday to include art supplies such as clay and glazes; acrylic, tempera and oil paints; paintbrushes for artwork; sketch and drawing pads; and watercolors.

“These sales tax holidays provide our students another means to excel in school,” said Governor Phil Bredesen. “However, back-to-school planning doesn’t stop with supplies. I hope parents will be sure to complete their child’s preparation for school by enrolling him or her in CoverKids.”

From 12:01 a.m. Friday, Aug. 3, until 11:59 p.m. Sunday, Aug. 5, consumers may purchase selected clothing, school supplies and art supplies under $100 and computers $1,500 or less sales tax-free.

“Last year’s inaugural holiday was extremely successful in giving back to Tennesseans, providing nearly $15 million in tax savings to Tennessee families,” said Revenue Commissioner Reagan Farr.

Although students and their families can save on back to school expenses, all Tennesseans can enjoy exempt items during the holiday.

Shoppers and retailers can find more information about the upcoming tax holiday at www.tntaxholiday.com, including lists of exempt items, frequently asked questions and more. Assistance is available via e-mail at Salestax.holiday@state.tn.us, and through a toll-free statewide telephone hot line by calling (800) 342-1003. [Out-of-state and Nashville-area callers, please dial (615) 253-0600.] Revenue will provide call-center services throughout the three-day weekend, including extended hours on Saturday and Sunday.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.