State Senator Steve Southerland is pushing folks to take advantage of the approaching Tennessee sales tax holiday. The annual Sales Tax-Free Weekend will begin on July 28, shortly before the start of the school year. Additionally, from August 1, the sales tax on groceries will be postponed for three months.
The sales tax breaks are part of the General Assembly’s efforts this year, which Southerland supports, to achieve the largest tax decrease in Tennessee history.
Senator Southerland added that Tennessee sales tax holidays are designed to bring assistance to Tennessee residents in the face of growing inflation and food prices.
According to Southerland, these Tennessee sales tax holidays not only allow Tennesseeans to keep more of their hard-earned money but also offer financial certainty in the face of continuous inflation-driven price increases for essential products.
The Tennessee sales tax holiday will not apply to goods like clothing costing over $100, jewelry, purses, or sporting and recreational equipment. You cannot separate items that are sold together to stay under the $100 cap. Additionally excluded from the tax-free sale are flash drives, printer ink, separately purchased software and home appliances.
According to the state, anything purchased online are also eligible for the Tennessee sales tax holiday.
A $10 million tax cut is provided over the state’s yearly back-to-school weekend, which runs from Friday, July 28 through Sunday, July 30.
Food and food ingredients are defined by the Tennessee Department of Revenue 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.” During the period of 12:01 a.m. to 11:59 p.m. on August 1, these items are exempt from sales tax. Oct. 31.
According to the state, food and food ingredients do not include alcoholic beverages, tobacco, confectionery, or dietary supplements.
Moreover, the Tennessee sales tax holiday does not apply to food and good ingredients purchased from a “micro market or vending machine,” and they will continue to be charged sales tax.
Budgets for local governments won’t be impacted by the Tennessee sales tax holiday because the state will make up any lost local tax revenue.
Families and small businesses can save more than $404 million thanks to the Tennessee Works Tax Act. These changes will ease taxation on small enterprises, increase Tennessee’s economic competitiveness, promote entrepreneurship, and help families cope with rising food prices.
Since 2011, the Tennessee General Assembly has reduced state taxes by more than $2.4 billion, and the Tennessee sales tax holidays are such a huge help.