A Tax Vacation? Sho Nuff?

Is this really happening? Or is this one of those chain things where a cute little cartoon character will appear at the end or that I'll have good luck for the rest of the day if I forward it?


Tennessee Department of Revenue
Back-to-School Supplies, Clothing, and Computers
Tax-Exempt During Tennessee’s
First Sales Tax Holiday
In August of this year, Tennessee will hold its first annual sales tax holiday, giving shoppers the
opportunity to purchase certain school supplies, computers and clothing tax-free for a specific
period of time, beginning at 12:01 a.m. on Friday, Aug. 4 and ending at 11:59 p.m. on Sunday,
Aug. 6.
As you plan for the 2006-2007 school year, you may want to let your students and parents know
in advance what items they will need for school next fall. Items exempt from tax during the
three-day holiday include the following:
School Supplies
($100 or less per item)
Clothing
($100 or less per item)
Computers
($1,500 or less)
Binders
Backpacks
Bookbags
Blackboard Chalk
Calculators
Cellophane Tape
Compasses
Composition Books
Crayons
Erasers
Folders
Glue, Paste, and
Glue Sticks
Highlighters
Index Cards
Index Card Boxes
Legal Pads
Lunch Boxes
Markers
Notebooks
Paper
Pencil & School
Supply Boxes
Pencils
Pencil Sharpeners
Pens
Protractors
Rulers
Scissors
Writing Tablets
Boots
Coats/Jackets
Dresses
Ear Muffs
Gloves/Mittens
Gym Suits/Uniforms
Hats
Jeans/Pants
Neckties
Nightgowns
Pajamas
Ponchos
Raincoats
Robes
School Uniforms
Shawls
Shirts
Shoes/Socks
Undergarments
Computer CPU
Monitor
Keyboard
Mouse
Connecting
Cables
Notebook
computers
Laptop
computers
Preloaded
software
School supplies are defined as items used by a student in a course of study. Specifically
excluded are items such as art supplies and instructional material, including reference books
and school computer supplies (compact discs, printers, and printer ink).
Exempt clothing is defined as human wearing apparel for general use. It excludes accessories
such as jewelry or bags, protective equipment, and sports and recreational equipment such as
baseball gloves.
Computers with preloaded software and components purchased with the computer are also
exempt. Computers and their components must be purchased as a system. Individual
computer parts and accessories, and software that is not preloaded on the computer, do not
qualify for the exemption. PDAs and MP3 players also do not qualify for exemption.
Additionally, exemptions do not apply to items used in a trade or business, or to items that are
rented.
Layaway sales qualify for the exemption if final payment is made and the property is given to the
purchaser during the holiday or if the layaway order is made during the holiday even if delivery
is made after the holiday ends.
More information from the Department of Revenue is available from the following
sources:
• Web site: www.Tennessee.gov/revenue
• E-mail: salestax.holiday@state.tn.us
• Telephone: (800) 342-1003 8 a.m. - 5 p.m., CST, Monday through Friday
Special telephone hours for Sales Tax Holiday:
Saturday, Aug. 5: 7 a.m. to 7 p.m., CST
Sunday, Aug. 6: 10 a.m. to 6 p.m., CST