Is that time of year again!!! Tax Free Weekend starts tomorrow!!! The Texas Tax Free Items include clothing and footwear under $100, backpacks under $100 for elementary and secondary students, and school supplies. Come to the Planet Ford on 45 to save that 8.25% on our great selection of apparel service center! For more information about the Texas Tax Free Rules read the following article!
Sales Tax Holiday
Additional Resources
Sales Tax Holiday Frequently Asked Questions
Fin de Semana Libre de Impuestos sobre las Ventas (98-490s)
Find other ways to save money for your household at TexasPowerfulSmart.com
August 20 - 22, 2010
Texas shoppers get a break from state and local sales taxes on August 20, 21 and 22 - 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.
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 following is an all-inclusive list of qualifying school supplies (if priced less than $100):
Binders
Book bags
Calculators
Cellophane tape
Blackboard chalk
Compasses
Composition books
Crayons
Erasers
Folders; expandable, pocket, plastic, and manila
Glue, paste and paste sticks
Highlighters
Index cards
Index card boxes
Legal pads
Lunch boxes
Markers
Notebooks
Paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper
Pencil boxes and other school supply boxes
Pencil sharpeners
Pencils
Pens
Protractors
Rulers
Scissors
Writing tablets
No exemption certificate is required - with one exception. If 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. “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.
List of Clothing, Footwear and Backpacks, and Their Exemption Status
TAX-FREE TAXED
Baby clothes
Backpacks for use by elementary and secondary students
Belts with attached buckles
Boots - cowboy, hiking
Caps/hats - baseball, fishing, golf, knitted
Coats and wraps
Diapers - adult and baby
Dresses
Gloves (generally)
Gym suits and uniforms
Hooded shirts and hooded sweatshirts
Hosiery
Jackets
Jeans
Jerseys - baseball and football
Jogging apparel
Neckwear and ties
Pajamas
Pants and trousers
Raincoats and ponchos
Robes
Shirts
Shoes - sandals, slippers, sneakers, tennis, walking
Socks (including athletic)
Shorts
Suits, slacks, and jackets
Sweatshirts
Sweat suits
Sweaters
Swimsuits
Underclothes
Work clothes and uniforms
Accessories (generally) - barrettes, elastic ponytail holders, wallets, watches
Backpacks - unless for use by elementary and secondary students
Baseball cleats and pants
Belt buckles (without belt)
Boots - climbing, fishing, rubber work boots, ski, waders
Buttons and zippers
Cloth and lace, knitting yarns, and other fabrics
Dry cleaning services
Football pants
Golf gloves
Handbags and purses
Handkerchiefs
Hard hats
Helmets - bike, baseball, football, hockey, motorcycle, sports
Ice skates
Jewelry
Laundering services
Leather goods - except belts with buckles and wearing apparel
Pads - football, hockey, soccer, elbow, knee, shoulder
Personal flotation devices
Rented clothing (including uniforms, formal wear, and costumes)
Roller blades and skates
Safety clothing, glasses
Shoes - bicycle (cleated), bowling, golf
A word of caution: If you sell items that do not qualify for the exemption, you may not advertise or promise that you will pay your customers' sales tax. Additionally, you are prohibited from advertising that you will not collect sales tax on items that do not qualify. You may advertise that tax is included in the sales price of the taxable items that you sell, however.
For information on how to report tax on these sales, please visit Reporting Sales Tax on Tax-Free Items or call us toll free at (800) 252-5555.
