Sales Tax Holiday

Tennessee’s first sales tax holiday kicks off tonight at midnight.  Clothing and school supplies under 100-dollars and computers under 15-hundred will be exempt from state and local sales taxes through Sunday.

There’s no limit to the quantity so every item under the thresholds will be tax-free, and everyone is eligible.

David Penn directs Middle Tennessee State University’s Business and Economic Research Center.  Penn says the holiday will likely be a wash for retailers, but will be good for shoppers.

“Well, our sales tax rates in the state are very high compared to other states, and this gives a—when you can go out in this county and in Davidson County, and buy something for nine or almost ten-percent less, than it would be a week later or week earlier then I think that’s a real boost.”

The state budgeted 2-million in lost local and 8-million in lost state revenue.  While the August holiday will happen ever year, lawmakers also created a one-time holiday that will happen in April.