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Tennessee Back To School Sales Tax Holiday, August 2014


 Back-to-school sales tax holidays ease the pain of going back to school -- at least for parents.

The Tennessee Department of Revenue has announced 2014 dates for the state’s annual sales tax holiday. It begins at 12:01 a.m. Friday, August 1 and concludes Sunday, August 3 at 11:59 p.m.

The August sales tax holiday is for qualifying clothing, school supplies and computers.

Clothing

Clothing costing $100 or less per item is exempt from sales tax during the August sales tax holiday. Accessories are not exempt, nor are sports and recreational equipment. Exempt items include, but are not limited to:

  • Belts and scarves;
  • Coats, caps and hats;
  • Dresses and hosiery;
  • Shirts and pants;
  • Socks and shoes; and
  • Underwear.

School supplies

Numerous school supplies costing $100 or less per item are exempt from sales tax during the holiday. These include, but are not limited to:

  • Binders, books bags and backpacks;
  • Calculators and rulers;
  • Erasers, pencils and pens;
  • Paints and paintbrushes; and
  • Lunchboxes.

Instructional material such as reference books and school computer supplies are not exempt.

Computers

Computers costing $1,500 or less are exempt from sales tax during the holiday, provided they are not for use in a trade or business.

However, many computer-related items are not exempt from sales tax. These include, but are not limited to:

  • Computer parts (separately sold monitors, keyboards, scanners);
  • Individually purchased software;
  • Storage media; and
  • Video game consoles.

Reporting requirements

The department reminds that the Tennessee Sales and Use Tax Return was amended last year to accommodate sales tax holidays. Exempt sales made during sales tax holidays must be reported on Schedule A, Line J of Sales and Use Tax Returns. Failure to do so “affects Revenue’s ability to properly dispense funds back to local governments.”

Additional information, including how to tax layaway items, is available on the Tennessee Department of Revenue Sales Tax Holiday webpage. Learn more about nationwide 2014 sales tax holidays.

Sales tax holidays can be a headache for retailers. An automated sales tax solution eases the pain. Learn how it works.

photo credit: Avolore via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.