Does Tennessee’s “sales tax holiday” apply to local option sales tax, too?
Q: Does Tennessee's "sales tax holiday" apply to local option sales tax,
too?
A: Yes. Items exempt during the sales tax holiday are exempt from both
the state and the local option sales tax. However, because the law
requires the state to reimburse local governments for local sales tax
revenue lost during the holiday (based on sales and use tax returns
covering the August tax period submitted by the local merchants in each
jurisdiction), local governments will not lose any local sales tax money
they would have ordinarily received.
John Harvey, Taxpayer Services Division
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Reminder: Sales Tax Holiday Aug. 4 - 6, 2006
During the holiday, the following items are exempt from sales and use
tax:
1) clothing with a price of $100 or less per item;
2) school supplies with a price of $100 or less per item; and
3) computers with a price of $1,500 or less per item.
More detailed information may be found at
http://www.state.tn.us/revenue/revreview/revreview-jan2006.pdf
In the near future, the department will be issuing Important Notices to
retailers.
The Tennessee Department of Revenue wants to hear from retailers: if you
have specific questions about how the holiday affects you, please send
an email to salestax.holiday@state.tn.us Answers will be compiled and
updated on the website (www.tennessee.gov/revenue).
