(TENNESSEE) There will be two Tennessee Tax Free periods, and both are rapidly approaching, thanks to the Tennessee General Assembly. The first is known for helping with school needs, but it's not limited to those attending classes. Immediately after that, there is a 3-month tax-free period on groceries.
Personal Clothes-Computer-Supplies Tax-Free - The Volunteer State's traditional sales tax holiday begins at 12:01AM on Friday, July 28, 2023 and continues through 11:59PM Sunday, July 30.
As mentioned, it's themed "BACK TO SCHOOL", those who take advantage of the tax-free savings do not have to limit purchases for use by students. As long as the purchases are for personal use and not business or trade, you can enjoy the tax savings.
Here's what's covered:
- General apparel that costs $100 or less per item, such as shirts, pants, socks, shoes, dresses, etc.
- School and art supplies with a purchase price of $100 or less per item, such as binders, backpacks, crayons, paper, pens, pencils, and rulers, and art supplies such as glazes, clay, paints, drawing pads, and artist paintbrushes
- Computers for personal use with a purchase price of $1,500 or less
- Laptop computers, if priced at $1,500 or less, also qualify as well as tablet computers
Groceries-Restaurants Tax-Free- For 2023, Tennessee's General Assembly has approved a three-month grocery tax holiday on food and food ingredients. This sales-tax free period begins at 12:01AM on Tuesday, August 1, 2023, and ends at 11:59PM on Tuesday, October 31, 2023. The legislation stresses that alcohol is not tax exempt.
The criteria for tax-free food purchases are very broad and include sales of food, food ingredients and prepared food at grocery stores, farmers' markets, restaurants, food trucks and other dining establishments. There is no spending limit for food purchases, according to the Department of Revenue's website.
Gun Safes No Longer Tax-Free - There is some confusion in the tax-free status of GUN SAFES. The one-year sales-tax-free in which the Tennessee General Assembly took the sales-tax off GUN SAFES ended at 11:59PM, June 30, 2023.
Tennessee Works Tax Act - These savings are brought about by the Tennessee Works Tax Act that was approved by the Tennessee General Assembly. These tax cuts represent savings of more than $400-million.
In addition to helping individuals, Tennessee Governor Bill Lee said, “Decades of smart fiscal stewardship have enabled Tennessee to maintain a balanced budget while cutting taxes for Tennessee families and businesses”.
The legislation provides roughly $150 million in tax cuts for Tennessee businesses, through several changes to Tennessee’s franchise and excise tax and business tax. As a result of the legislation, more than 23,000 businesses in the state will have their excise tax liability reduced to zero, as the bill exempts a company’s first $50,000 in net earnings from the excise tax. The legislation also exempts up to $500,000 of business property from franchise tax liability.
