Sales Tax Holiday and the Porter Flea Summer Market
Blogpost by Shane Gibson, CPA and owner of Skyward Accounting
Welp. It’s that time of the year in Tennessee. The infamous tax free weekend! We have all heard of it, the Sales Tax Holiday in Tennessee. But what exactly is it? As vendors and makers, the big question is whether or not you need to charge sales tax on your goods the weekend of Porter Flea Summer Market.
It happens every year. Tennessee has one weekend every year that is designated Tax Free. (I always try and purchase my computers on this day!) Since it is "Tax Free Weekend" it sounds like there is no sales tax on any purchase but unfortunately that is not the case. The sales tax holiday was actually designed in order to give parents and students a bit of a break whilst purchasing school supplies, not to give the general public a break on all sales tax. So what products are tax exempt?
Only three categories fall into the tax exempt category:
- Clothing $100 or less per item
- School Supplies $100 or less per item
- Computers $1,500 or less per item
Some notable items that are still taxable: jewelry, handbags, woodworking items, cards, etc. are all still taxable for this weekend. Nontaxable: clothing that is under $100 such as shirts, jeans, backpacks, and other traditional attire are nontaxable this weekend.
For a full listing of tax exempt items, check out the TN Department of Revenue’s guide here:
https://www.tn.gov/assets/entities/revenue/attachments/STH_Alpha_List_2015_exempt.pdf
For a list of items that ARE still taxable, check here:
https://www.tn.gov/assets/entities/revenue/attachments/STH_Alpha_List_2015_taxable.pdf
Do your products fall under the tax exempt category? If so, don’t worry about collecting tax on those items this weekend. If your products do not fall under the exempt listing, just treat this weekend like any other weekend!
Have a question about whether your goods are taxable or not? Email us at hello@skywardaccounting.com
