Tax Free Weekend Starts July 29, 2016

It’s that time of the year again! Tax Free Weekend will be quickly upon us as the Tennessee lesigslation has decided to change the date of the tax holiday. Instead of the normal first weekend of August, this year’s tax free weekend will be from midnight on Friday July 29th – midnight Sunday July 31st.

The tax free holiday was originally created in 2007, when the U.S. was experiencing economic change do to the recession. Businesses needed a way to boost revenue from consumers and offering the no tax incentive seemed a logical way to help. According to Randolph Accounting Resources, the term tax holiday refers to a temporary span of time when the government suspends certain taxes, like sales tax, on specific items. This is why every year people get deals to help them with the cost of school supplies and other necessary items at a reduced price. This year’s tax free items include clothing at $100 or less, school supplies at $150 or less, and computers (including tablets and IPads) at $1500 or less. All items must be under the dollar amount threshold to be able to receive the tax free discount.

There are, however, some things that will remain taxable. Apparel that is over $100, jewelry, handbags, sports and recreation equipment will all still be subject to tax. Other taxed items will include video game consoles, computer printers and supplies, electronic readers, and cellphones (including smartphones).

Families looking for deals on school supplies should check out what their favorite retailers are offering for the weekend. This information can usually be easily found on the merchant’s website or social media page. The tax free holiday can be especially helpful for first time college students, allowing them to take advantage of the deals as they begin searching for big ticket items such as mini-fridges, microwaves, and computers. Doing your homework and taking time to find the best deals offered on the holiday may just save your wallet in the long run.