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August Sales Tax Holiday Approaching
posted July 2, 2008

Tennessee’s third annual August Sales Tax Holiday, which gives back-to-school shoppers the opportunity to purchase certain clothing, school and art supplies, and computers free of Tennessee sales
tax, will begin on Friday, Aug. 1.

“Getting ready to go back to school is a busy, important time for families to prepare their children for success,” said Gov. Phil Bredesen. “This Sales Tax Holiday is an opportunity for families to enjoy savings on those items that kids need to be ready for a successful school year.”

The long weekend of savings begins at 12:01 a.m.on Friday, Aug. 1 and
ends on Sunday, Aug. 3, at 11:59 p.m. The state’s dedicated Sales Tax
Holiday Web site, www.tntaxholiday.com, has been updated with new materials, including information about exempt items, frequently asked questions and more.

During the designated three-day weekend, consumers may purchase select
clothing with a price of $100 or less per item, school and art supplies with a price of $100 or less per item, and computers with a price of $1,500 or less without paying Tennessee's state and local sales tax on the items.

The tax holiday also includes purchases of qualified items sold via mail, telephone, e-mail or Internet if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.

“During the 2008 August Sales Tax Holiday, Tennesseans can purchase
qualified items free of sales tax as they prepare for the upcoming school year,” said Revenue Commissioner Reagan Farr. “This annual Sales Tax Holiday, which Gov. Bredesen established in 2005, has provided an excellent tax savings opportunity for all Tennessee shoppers, and we are pleased to help further his tax-saving initiative.”

Visit the Sales Tax Holiday Web site at www.tntaxholiday.com to learn more about the items exempt from sales tax. The Tennessee Department of Revenue also offers assistance to consumers via e-mail, Salestax.Holiday@state.tn.us, and through its toll-free statewide
telephone hot line, 800 342-1003. Staff is available to answer questions Monday through Friday 7 a.m. to 5 p.m.Central Time. (Out-of-state and Nashville-area callers, please dial 615 253-0600.)

Examples of exempt items include: -Clothing: Shirts, dresses, pants,
coats, gloves and mittens, hats and caps, hosiery, neckties, belts,
sneakers, shoes, uniforms whether athletic or non-athletic and scarves
-School Supplies: Binders, book bags, calculators, tape, chalk, crayons,
erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper,
rulers and scissors
-Art Supplies: Clay and glazes; acrylic, tempera and oil paints;
paintbrushes for artwork; sketch and drawing pads; and watercolors
-Computers: Central processing unit (CPU), along with various other
components including monitor, keyboard, mouse, cables to connect
components and preloaded software (Note: While the CPU may be purchased
separately, other items must be part of a bundled computer package in
order to be eligible)

Officials said, "The Sales Tax Holiday is an ideal way to prepare your children for a successful school year, but school supplies are not all that is needed. Ensure a healthy school year for your children by enrolling them in CoverKids, Tennessee’s free health insurance program for children 18 and under."

Please visit www.covertn.gov to learn more or enroll.

The Department of Revenue is responsible for the administration of
state tax laws and motor vehicle title and registration laws established
by the legislature and the collection of taxes and fees associated with
those laws. The Department of Revenue collects approximately 92 percent
of total state tax revenue.

During the 2006-2007 fiscal year, the
department collected $11 billion in state taxes and fees. In addition to
collecting state taxes, $1.9 billion of local sales tax was collected by
the department for local governments during the 2006-2007 fiscal year.

Besides collecting taxes, the department enforces the revenue laws
fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for
distribution to the various state funds and local units of government.

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