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Texas shoppers get a break from state and local sales taxes on August 17th, 18th and 19th - the state's annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.
As in previous years, the law exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend. Backpacks under $100 and used by elementary and secondary students are also exempt. A backpack is a pack with straps one wears on the back. The exemption during the sales tax holiday includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags. The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller.
• List of Qualifying Clothing, Footwear and Other Items - click here
• List of Qualifying School Supplies - click here
• Frequently Asked Questions - click here
• Rule 3.365, Sales Tax Holiday--Clothing, Shoes & School Supplies - click here
School Supplies
The 81st Texas Legislature passed HB 1801 (2009) expanding
the list of items qualifying for exemption from Texas state and local sales and
use taxes during the annual sales tax holiday in August. In addition to
clothes, footwear and some backpacks, Texas families also get a sales tax break
on most school supplies priced at less than $100 purchased for use by a student
in an elementary or secondary school.The “Fine Print”
– important information you should know about this tax-saving event.
Clothing & Footwear
Retailers are not required to collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. Exemption certificates are not required. The exemption applies to each eligible item that sells for less than $100, regardless of how many items are sold on the same invoice to a customer. For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $99.99.
The exemption does not apply to the first $99.99 of an otherwise eligible item
that sells for more than $99.99. For example, if a customer purchases a pair of
pants that costs $110, then sales tax is due on the entire $110.
The exemption also does not apply to sales of special clothing or footwear that
the manufacturer primarily designed for athletic activity or protective use and
that is not normally worn except when used for the athletic activity or
protective use for which the manufacturer designed the article. For example,
golf cleats and football pads are primarily designed for athletic activity or
protective use and are not normally worn except for those purposes; they do not
qualify for the exemption. Tennis shoes, jogging suits and swimsuits, however,
are commonly worn for purposes other than athletic activity and thus qualify
for the exemption.
The sales tax holiday exemption does not extend to rental of clothing or
footwear; nor does it apply to alteration (including embroidery) or cleaning services
performed on clothes and shoes. Additionally, tax is due on sales of
accessories, including jewelry, handbags, purses, briefcases, luggage,
umbrellas, wallets, watches and similar items.
Backpacks
Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday. A backpack is a pack with straps one wears on the back. The exemption includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags.
Backpacks
Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday. A backpack is a pack with straps one wears on the back. The exemption includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags.
The exemption does not include items that are reasonably defined as luggage,
briefcases, athletic/duffle/gym bags, computer bags, purses or framed
backpacks. Ten or fewer backpacks can be purchased tax-free at one time without
providing an exemption certificate to the seller.
School Supplies
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
School Supplies
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
Purchases of School Supplies Using a Business Account
Persons buying qualifying school supplies during the holiday are not required to provide an exemption certificate – with one exception. If the purchaser is buying the items under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. "Under a business account" means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.
Layaways and Rainchecks
Layaways
A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchandise on layaway during the holiday or makes the final payment during the holiday. See Rule 3.365(i).
Persons buying qualifying school supplies during the holiday are not required to provide an exemption certificate – with one exception. If the purchaser is buying the items under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. "Under a business account" means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.
Layaways and Rainchecks
Layaways
A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchandise on layaway during the holiday or makes the final payment during the holiday. See Rule 3.365(i).
Rainchecks
Eligible items that customers purchase during the holiday with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain check is presented at the time of purchase. See Rule 3.365(j).
School Supplies
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
For more information:
www.window.state.tx.us
Eligible items that customers purchase during the holiday with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain check is presented at the time of purchase. See Rule 3.365(j).
School Supplies
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
For more information:
www.window.state.tx.us
