Back-to-school shoppers in Alabama and Tennessee will have a chance to take advantage of the first sales tax holiday on August 4-6. Families will have an opportunity to purchase clothes, computers, school supplies and books during this time without paying state sales tax.

During this designated three-day weekend, consumers may purchase selected clothing, school supplies and computers without paying state and local sales tax on the items. This holiday also includes purchases of qualified items sold via mail, telephone, e-mail, or Internet if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.

“I am proud to have helped pass the first sales tax holiday in Alabama,” said Sue Schmitz, State House 6. “This is a great opportunity for the citizens of Alabama to save money on back to school merchandise.”

“Creating this sales tax holiday was one of my goals from the beginning of my administration,” Gov. Phil Bredesen of Tennessee said. “The sales tax holiday positively impacts education, our number one priority. The Aug. 4-6 sales tax holiday will provide tax savings for Tennessee’s working families as they prepare for the school year.”

According to the Department of Revenue, a sales tax holiday is designed to provide relief to taxpayers by instituting a temporary sales tax exemption on certain items for a specific period of time. Tennessee is among 13 other states and the District of Columbia that have enacted sales tax holidays.

During the holiday, the following items are exempt from sales and use tax: clothing with a price of $100 or less per item, school supplies with a price of $100 or less per item ($50 in Alabama), and computers with a price of $1,500 or less per item ($750 in Alabama). Any bound book with an IBN number (up to $30) may also be purchased tax-free in Alabama during these days. There is no limit to the quantity of items that may be purchased as long as the purchase price of each of those items is below the threshold provided in the law. No exemption certificate is required to take advantage of the holiday.