After there had been some speculation that the annual state sales tax holiday in Tennessee might be skipped this year due to the effects of the pandemic and the economic shutdown, when the General Assembly adopted the state’s budget last week, they actually added a second tax-free weekend, this one for restaurants. Not only that, but the state has also doubled the normal price limits on eligible items from previous years.
On the traditional “Back-To-School” Sales Tax Holiday, which begins at 12:01 am on Friday, July 31st and ends at 11:59 pm on Sunday, August 2nd, state sales taxes will not be applied to purchases of clothing or school supplies valued at $200 or less, nor will they be assessing taxes on computers and televisions priced at $3000 or less.
This year, to help a restaurant industry that has taken a substantial hit during the shutdown, the following weekend—Friday, August 7th through Sunday, August 9th—sales tax will not be charged on the “retail sale of food and drink by restaurants and limited service restaurants.”
In 2021, the sales tax holiday eligible items will return to their limits, according to the Department of Revenue.