The low-down on tax-free - WMC Action News 5 - Memphis, Tennessee

The low-down on tax-free

It's time to save some cash at the register on Tennessee's first tax free holiday weekend.

Just in time for "back-to-school," stores are packed with people saving money on everything from clothes to school supplies this weekend.  It's a state-wide tax-free holiday.  And no, you don't have to be a Tennessee resident to save money this weekend. 

School supplies are tax exempt, as long as no one item costs more than $100 and as long as it meets certain guidelines.

Need a backpack? Great.  But it has to have two straps to save you money.  Glue, scissors, binders and notebooks are all tax exempt.  But if you're shopping for watercolors or sketch books, be prepared to pay tax.

Clothes are tax exempt as long as each item is under $100, but that doesn't include jewelery, or handbags, or umbrellas, among other things.

Darrin Larson says the big-sellers at Best Buy today are the computers. You can get a computer tax-free if $1500 or less.  But if it comes with software, you will have to pay taxes on that.  Another catch: you can't just buy a monitor, you have to buy a C.P.U to escape the taxes. 

"It's actually the best price a consumer will ever find on a PC unless they find one used," says Larson.

So just how much can you save? In Cyneitha Wright's case, about $300.  "I was shopping for a computer," she says.  "And I've been waiting to get one about a year. I thought this would be a great time to get one on tax savings weekend and also to get my grandkids a couple school clothes this weekend."

One more catch, you can't pay with a business credit card or check.  It has to be a personal account to be tax-free.      

If you want a full list of what is and isn't tax free, click here.

You might want to take a copy of the list with you when you go shopping so you don't wind up with a surprise at the register.

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