Press Release from Rep. Jim Hackworth

Rep. Jim Hackworth - House District 33

IMMEDIATE RELEASE July 16, 2007
Rep. Hackworth: Don’t Forget Sales Tax Holiday
State Sets August 3-5 for Tax Savings on Consumer Goods

NASHVILLE (July 16) – Anderson County consumers can take advantage of a state sales tax holiday from August 3-5 and save hard-earned dollars on school supplies, computers and clothing, said Rep Hackworth, D-Anderson County.

During the sales tax holiday, retailers statewide can’t charge sales taxes for designated goods. Eligible purchases include clothing and school supplies priced $100 or less for each item. Computers priced at $1,500 or less are also exempt from sales taxes. The measure applies only to retail sales to private individuals, and excludes suppliers for business purchasers.

“The third sales tax holiday benefits consumers because they can purchase necessary items for school or work and stay within their budgets. In addition, retailers see their bottom line increase along with store traffic,” explained Hackworth.

In addition to cash and credit card purchases, shoppers can use discount coupons or loyalty cards for eligible items without paying sales tax. Exchanges of merchandise are also allowed, but the original item must be replaced for the same item in another size or color.

Qualified goods may also be placed on or picked up from layaway tax-free during the moratorium. Rain checks, mail orders, and Internet and telephone orders are tax-exempt, provided the consumer orders and pays for the merchandise during the sales tax holiday period.

“Most tax-free items are targeted to school-age youngsters. Appropriate clothing for girls and boys, and such supplies as binders, book bags, calculators, compasses, crayons, folders, glue, index card boxes, lunch boxes, markers and notebooks are on the list of eligible goods. In addition,” Hackworth said, “this August, school art supplies are now tax-exempt.”

Adults also can benefit from this law. Other tax-exempt items are:

Jackets;

Religious Clothing;

Clerical vestments;

Running shoes, sandals;

Sweaters;

Costumes;

Dress gloves and shoes;

Formal clothing;

Suits, slacks, and sport coats;

Bridal gowns and veils;

Neckwear, and;

Sleepwear

“Computers with preloaded software under $1,500 are tax-free,” concluded Hackworth.

More information about the August sales tax holiday can be accessed online at http://www.tennessee.gov/revenue/salestaxholiday/index.htm or by e-mail at salestaxholiday@state.tn.us. The telephone number for the state Department of Revenue is 1-800-342-1003, from 8 a.m. to 5 p.m. CST.

Media Contact: Skip Cauthorn, office of the House Majority Leader, (615) 741-4410, skip.cauthorn@legislature.state.tn.us.