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The sales tax holiday on food bought at grocery stores begins at 12:01 a.m. Monday, Aug. 1 and lasts the entire month.
The tax-free holiday weekend includes school supplies with a purchase price under $100 — items like binders, backpacks, crayons, paper, pens and pencils, as well as art supplies such as glazes, paint, drawing pads and artist paintbrushes.
The sales tax holiday on food bought at grocery stores begins at 12:01 a.m. Monday, Aug. 1 and lasts the entire month.
The tax-free holiday weekend includes school supplies with a purchase price under $100 — items like binders, backpacks, crayons, paper, pens and pencils, as well as art supplies such as glazes, paint, drawing pads and artist paintbrushes.
It is time to get ready to enjoy the Tennessee Tax Holiday savings.
During these popular holiday periods, Tennesseans do not have to pay state or local sales tax on certain items, saving anywhere from 6.25 percent to almost 10 percent on some purchases.
The longstanding weekend of tax-free offerings on clothing, computers and school supplies will be in place as usual and the waiving of sales tax on gun safes will be offered all year long.
But the big news is that it his year’s expanded “holiday” may offer the biggest savings ever because grocery items, which we all know have been on the rise, will be tax free for the entire month of August.
“During this time of record inflation and high prices, we’re proud to be able to put money back in the pockets of Tennesseans,” said Gov. Bill Lee, who initiated the expanded tax holiday which was approved as part of the state legislature’s 2022-23 budget. “I encourage everyone to take advantage of these savings opportunities.”
By getting ready for these holidays, you might think ahead of what you might need in the coming months, whether it is a new computer, a pair of running shoes, school supplies, or a stockpile of groceries to fill your pantry and freezer.
I suggest that you make a list of what to buy at the tax-free rate – and then enjoy the savings in these trying financial times when every penny really does count. It is also a good time to stretch your dollars as you think of others, like needy school children and struggling food banks.
What’s new and different
In recent years, there have been some tax exemptions offered on grocery food, but this year, instead of having just a weekend or a week of tax-free foods, “food and food” ingredients will be tax exempt for the entire month of August.
“It includes most items at the grocery, but not everything,” said Department of Revenue spokeswoman Kelly Cortesi, who noted that alcoholic beverages, tobacco, dietary supplements, candy and prepared foods are not included in the sales tax holiday.
The Department of Revenue says “the most common example of a dealer selling food and food ingredients is a grocery store. Food and food ingredients are those items otherwise taxed at the 4% state sales tax rate.”
With the state sales tax standing at 4% on groceries and 7% on many other items, and with local counties adding as much as 2.75% on top of that, these tax holidays can offer significant savings. (Local tax is 2.25% in Davidson, Cheatham and Sumner counties and 2.75% in Williamson, Wilson and Rutherford counties.)
There is no restaurant food exemption this year, with the Revenue department saying that the exemption does not include “prepared foods” like restaurant food, food trucks, buffet lines, caterers, and even in house grocery food like sandwiches and fried chicken meals, which are prepared and sold inside the stores.
For many years, the state of Tennessee has offered sales tax holiday weekends that focus on clothing, school supplies and computers. This year’s designated weekend is from 12:01 a.m. Friday, July 29, to 11:59 p.m. Sunday, July 31.
The clothing exemption includes general apparel that costs $100 or less per item, such as shoes, shirts, pants, dresses, etc.
The school supply exemption includes supplies with a purchase price under $100 — items like binders, backpacks, crayons, paper, pens and pencils, as well as art supplies such as glazes, paint, drawing pads and artist paintbrushes.
And, as usual, you do not have to have school-age children to take advantage of this shopping weekend. And there are some surprising items included on the exempt list, such as baby and adult diapers, hats, costumes, girdles, and bridal gowns and veils. For a full list of exempt items, go to https://www.tn.gov/revenue.
Also exempt are computers, including laptops, and tablet computers, for personal use, if priced at $1,500 or less. The exemption does not include printer supplies, storage media like flash drives, or household appliances.
Gun safes and safety equipment
This tax-free offering, which started July 1 and ends June 30, 2023, is designed to promote gun safety. It includes “a locking container or other enclosure equipped with padlock, key lock, combination lock or other locking device that is designed and intended for the secure storage of one or more firearms.” It also includes gun safety devices, including computerized locking devices for guns.
And yes, items sold online are also eligible during all three sales tax holidays.
For more information on the sales tax holidays, go to www.tntaxholiday.com or email revenue.support@tn.gov or call (615) 253-0600.
Mary Hance, who has four decades of journalism experience in the Nashville area, writes a weekly Ms. Cheap column. She also appears on Thursdays on “Talk of the Town” on NewsChannel 5. Reach her at mscheap@mainstreetmediatn.com and follow her on Facebook as Facebook.com/mscheap.
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