Along with parents, the tax break is also a gift to retailers.
Stores anticipate so much shopping that they have called it "Christmas in August."
The state's first-ever weekend without a sales taxmore>>
A Sales Tax Holiday will be observed Friday through Sunday. Consumers may buy selected clothing, school supplies and computers without paying state and local sales tax during the three-day weekend. more>>
NASHVILLE, Tenn. - A sales tax holiday will be observed Friday through Sunday.
Starting in 2006, the annual sales tax holiday for the August 2008 has been scheduled to begin on Friday Aug. 1 at 12:01 a.m. and end at 11:59 p.m. Aug. 3.
Consumers may buy selected clothing, school supplies and computers without paying state and local sales tax during the three-day weekend, according to the Tennessee Department of Revenue.
"This holiday also includes purchases of qualified items sold via mail, telephone, e-mail, or Internet if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period," according to a Tennessee Department of Revenue news release.
Some common frequently asked questions about the sales tax holiday include:
What is a sales tax holiday?
A sales tax holiday is designed to provide relief to taxpayers by instituting a temporary sales tax exemption on certain items for a specific period of time. Tennessee is among 13 other states and the District of Columbia that have enacted sales tax holidays.
What items qualify for the sales tax holiday?
During the holiday, the following items are exempt from sales and use tax:
Clothing with a price of $100 or less per item
School supplies with a price of $100 or less per item
Computers with a price of $1,500 or less per item
Does the $100 exemption apply to the first $100 of a school supply or an item of clothing being purchased? In other words, if the selling price of a book or a clothing item is $105, is the first $100 exempt from sales tax?
No. The exemption applies to items selling for $100 or less. If an item sells for more than $100 ($105 in this example), tax is due on the entire selling price.
Is there a limit to the number of items that may be purchased?
There is no limit to the quantity of items that may be purchased as long as the purchase price of each of those items is below the threshold provided in the law.
For a complete list of items eligible for the tax-free discount, click here.