Tax free weekend focused on restaurant sales has begun

The second tax free weekend officially kicked off Friday at 12:01 a.m., and will see all sales of food and drinks served at restaurants exempt from sales tax.

The second tax free weekend will last through Sunday, Aug. 9, at 11:59 p.m., and is a first for the state of Tennessee. The new tax holiday was approved by the Tennessee General Assembly as a means to help bolster the economy that has taken significant blows due to the coronavirus pandemic.

What constitutes a restaurant?

The state has defined a restaurant as an establishment that serves meals and drinks to patrons that has a seating capacity of at least 40 patrons.

The tax holiday also applies to "limited service restaurants," which the state defines as an establishment that sells alcoholic beverages and food and collects "a majority of revenue" from sales of alcoholic beverages and has a capacity of at least 40 patrons. Meaning, bars that offer food will also see an exemption from sales tax.

As an example, if a Williamson County resident were to spend $200 at a restaurant, the tax holiday would net that patron $19 in savings.

For more details on the tax holiday, click here.