Tennesseans Gearing Up For Sales Tax Holiday - NewsChannel5.com | Nashville News, Weather & Sports

Tennesseans Gearing Up For Sales Tax Holiday

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by Amanda Hara

FRANKLIN, Tenn.  - With the tax free holiday fast approaching, many parents spent Thursday gearing up for back to school shopping.

Starting at 12:01 a.m. Friday and running through Sunday, there will be no sales tax applied to items less than $100, including clothing, school and art supplies, and on computers up to $1,500.

On Thursday, countless families were found scoping out merchandise at Academy Sports and Outdoors in Cool Springs that they planned to buy once the tax free holiday began.  Many said the tax break would be welcomed in this economy.

But some said the weekend rush wasn't worth the tax break.

"We waited last year and a lot of the sizes were out especially on sneakers," Kathy Miller said.

Tennessee's first sales tax holiday in August 2006 was the most popular one, costing the state $13.7 million in forgone sales taxes and reimbursements to local governments.

That total steadily decreased in the following years, reaching just $7.6 million in 2009, a 46 percent drop from the peak, and $8.6 million last year, a decline of about 38 percent from the first year.

Here is a look at how much state sales tax revenue has been forgone and how much money has been reimbursed to local governments since sales tax holiday was enacted in 2006. The state held tax-free weekends in the spring of 2007 and 2008.

  • August 2006. State: $10.4 million; Local: $3.3 million
    Total: $13.7 million.
     
  • April 2007. State: $7.2 million; Local: $2.2 million
    Total: $9.4 million.
     
  • August 2007. State: $6.5 million; Local: $2.1 million
    Total: $8.6 million.
     
  • April 2008. State: $6.5 million; Local: $2.1 million
    Total: $8.6 million.
     
  • August 2009. State: $5.7 million; Local: $1.9 million
    Total: $7.6 million.
     
  • August 2010. State: $6.5 million; Local: $2.2 million
    Total: $8.7 million.

For a complete list of what you can and can't buy tax free, visit the following website: www.tn.gov/revenue/salestaxholiday.

Email: ahara@newschannel5.com
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(The Associated Press Contributed To This Report.)

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