It’s that time again for our favorite late Summer, just-before-school-starts holiday and this year is going to be different than the years before it in the state of TN.
Tennessee Tax Free Holiday is not a single weekend affair for 2021. This year there are three different categories of tax-free items; one of which has already started and continues on until… June 2022?? Only in Tennessee!
Let’s take a look:
Event 1: Clothes, School Supplies and Computers
Tennessee’s traditional sales tax holiday on clothing, school supplies and computers begins at 12:01 a.m. on Friday, July 30, 2021, and ends at 11:59 p.m. on Sunday, August 1, 2021.
During this time clothing, school supplies and computers may be purchased tax-free. Certain restrictions apply. Items sold online are also eligible. Items must be purchase for personal use, not for business or trade.
Exempt:
* General apparel that costs $100 or less per item, such as shirts, pants, socks, shoes, dresses, etc.
* School and art supplies with a purchase price of $100 or less per item, such as binders, backpacks, crayons, paper, pens, pencils, and rulers, and art supplies such as glazes, clay, paints, drawing pads, and artist paintbrushes.
* Computers for personal use with a purchase price of $1,500 or less.
* Laptop computers, if priced at $1,500 or less, also qualify as well as tablet computers.
Not exempt:
* Apparel items priced at more than $100.
* Items sold together, such as shoes, cannot be split up to stay beneath the $100 maximum.
* Items such as jewelry, handbags, or sports and recreational equipment.
* School and art supplies individually priced at more than $100.
* Items that are normally sold together cannot be split up to stay beneath the $100 maximum.
* Storage media, like flash drives and compact discs.
* Individually purchased software.
* Printer supplies.
* Household appliances.
Event 2: Food, Ingredients and Prepared Food
During the period beginning at 12:01 am on Friday, July 30, 2021 and ending Thursday, August 5, 2021 at 11:59 pm, food, food ingredients, and prepared foods are exempt from sales tax. This includes qualified sales of prepared food by restaurants, food trucks, caterers, and grocery stores.
Sales of alcoholic beverages are not included in items exempt during this period.
Food and food ingredients are defined as liquid, concentrated, solid, frozen, dried, or dehydrated substances that are sold to be ingested or chewed by humans and are consumed for their taste or nutritional value. Food and food ingredients do not include alcoholic beverages, tobacco, candy, dietary supplements.
Prepared Food – A food item qualifies as prepared food if it:
* Is sold in a heated state or heated by the seller,
* Contains two or more food ingredients mixed together by the seller for sale as a single item; or
* Is sold with eating utensils, such as plates, knives, forks, spoons, glasses, cups, napkins, or straws provided by the vendor.
Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration to prevent food borne illnesses.
Event 3: Gun Safes and Safety Devices
Gun safes and safety devices sold at retail are exempt from sales and use tax during the holiday period beginning at 12:01 am on July 1, 2021 and ending at 11:59 pm on June 30, 2022.
A “gun safe” is defined as:
* A locking container or other enclosure equipped with a padlock, key lock, combination lock, or other locking device that is designed and intended for the secure storage of one or more firearms.
A “gun safety device” is defined as:
* Any integral device to be equipped or installed on a firearm that permits the user to program the firearm to operate only for specified persons designated by the user through computerized locking devices or other means integral to and permanently part of the firearm.
See https://www.tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday.html for full information.