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As summer draws to a close, many are looking toward the upcoming school year. To help support families’ return to school, many state and local taxing jurisdictions have instituted annual “sales tax holidays” during which certain items purchased for personal use are exempt from sales tax. These sales tax holidays vary in length as well as in the categories and dollar thresholds of items that can be purchased exempt from tax. The sales tax holidays typically occur over one specific weekend during the year and exempt purchases of items such as clothing, school supplies, and/or certain electronics from sales tax—up to a maximum dollar threshold per item.

It should be noted that some jurisdictions have increased the dollar-threshold limits of items that can be purchased exempt from tax over prior years. For example, during its 2020 sales tax holiday, Tennessee is doubling the dollar-limit threshold of items exempt from sales tax to $200 per item for clothing, $200 per item for school/art supplies, and $3,000 per item for certain electronics such as computers, tablets, smartphones, and televisions. 

The Federation of Tax Administrators has compiled a comprehensive listing of the applicable dates and items covered, as well as applicable links to the respective taxing jurisdiction’s website for more information.   

As there are many nuances, exemptions, and definitions related to the qualifying items as well as the sales tax holidays in general, it’s recommended to confirm the details on your specific taxing jurisdiction’s website prior to shopping. For more information, reach out to your BKD Trusted Advisor™ or use the Contact Us form below.

FORVIS Private Client services may include investment advisory services provided by FORVIS Wealth Advisors, LLC, an SEC-registered investment adviser, and/or accounting, tax, and related solutions provided by FORVIS, LLP. The information in this presentation should not be considered investment advice to you, nor an offer to buy or sell any securities or financial instruments. The services, or investment strategies, mentioned in this presentation may not be available to, or suitable, for you. Consult a financial advisor or tax professional before implementing any investment, tax, or other strategy mentioned herein. The information herein is believed to be accurate as of the time it is presented and it may become inaccurate or outdated with the passage of time. Past performance does not guarantee future performance. All investments may lose money.

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