Sales tax holiday scheduled for Aug. 17-19
August 1, 2012—Back-to-school shoppers can take advantage of the State of Texas’ annual sales tax holiday, scheduled for Friday-Sunday, Aug. 17-19.
During this three-day holiday, customers will be exempt from the 8.25-percent sales and use tax charge for most clothing and footwear priced under $100. Backpacks priced under $100 that are used by elementary and secondary students are exempt; however, certain backpacks defined as luggage, athletic or computer bags are not exempt.
The 81st Texas Legislature passed HB 1801 in 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 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.
No exemption certificate is required unless the purchaser is buying the supplies 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.
For a full list of tax-free and taxable items during this holiday, please refer to the website of Susan Combs, Texas Comptroller of Public Accounts, at www.window.state.tx.us.