Tennessee restaurant sales tax holiday this weekend

Published 4:00 am Wednesday, August 5, 2020

The back-to-school sales tax holiday may be in the books for the state of Tennessee, but people on the northern side of the line running through Ardmore have one more weekend to celebrate.

The second tax-free holiday for Tennessee will focus on restaurants. The retail sale of food and drink at restaurants will be exempt from sales tax from 12:01 a.m. Friday through 11:59 p.m. Sunday.

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“The COVID-19 pandemic has caused immense economic strain on Tennessee families,” said Gov. Bill Lee. “These sales tax holidays will allow them to keep more of their hard-earned money and support Tennessee businesses.”

Yolandia Eubanks, the director of the Greater Ardmore Chamber of Commerce, said she finds it “rather interesting” that people across the state line in Tennessee can participate in a tax-free holiday and not residents in Alabama.

“I think it will benefit the restaurants in Tennessee,” she said. “It’s the first time they’re doing this for restaurants. I believe people will eat more on the Tennessee side of Ardmore than the Alabama side this weekend.”

While the two tax-free holidays in Tennessee come on back-to-back weekends, Eubanks said she wonders why the state chose to split them up at all.

“When families are out shopping for back-to-school supplies, typically they eat out somewhere,” she said.

While many people are still hesitant to dine out due to the COVID-19 pandemic, most restaurants have taken precautions surrounding social distancing and sanitation guidelines.

Take El Olmeca, a family-style Mexican restaurant in Ardmore, Tennessee, for example. Eubanks said they have not only spaced out tables for social distancing but have taken the further step of checking the temperatures of patrons at the door to make sure they are not running a fever.

The back-to-school tax free holiday is traditionally held beginning the third Friday in July in Alabama. Cities and towns vote on whether or not to opt in to the holiday. The Tennessee General Assembly votes on whether or not to hold the tax-free holidays there, with their decision running statewide.

Teresa Todd, president of the Athens-Limestone County Tourism Association, said she liked the idea of a tax-free holiday for restaurants and was going to bring it up at the next meeting of tourism associations.