6th annual 'sales tax holiday' this weekend
Texas shoppers get a break from state and local sales taxes on August 6, 7, and 8-the state's sixth annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.
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.
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 during the holiday 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.
Below is a selected list of items and their exemption status during the sales tax holiday:
Belts with attached buckles
Boots - cowboy, hiking
Caps/hats - baseball, fishing, golf, knitted
Coats and wraps
Diapers - adult and baby
Gym suits and uniforms
Hooded shirts and hooded sweatshirts
Jerseys - baseball and football
Neckwear and ties
Pants and trousers
Raincoats and ponchos
Shoes - sandals, slippers, sneakers, tennis, walking
Socks (including athletic)
Suits, slacks, and jackets
Work clothes and uniforms
Accessories (generally) - barrettes, elastic ponytail holders, wallets, watches
Baseball cleats and pants
Belt buckles (without belt)
Boots - climbing, fishing, rubber work boots, ski
Buttons and zippers
Cloth and lace, knitting yarns, and other fabrics
Dry cleaning services
Handbags and purses
Helmets - bike, baseball, football, hockey, motorcycle, sports
Leather goods - except belts with buckles and wearing
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
This year's sales tax holiday for clothing and footwear begins at 12:01 a.m. on Friday, August 6, and ends at midnight on Sunday, August 8. The tax break is expected to save Texas consumers millions in state and local sales taxes. This is one time hard-working Texans can keep their money in their pockets for their families' priorities.
I have been a strong advocate for the sales tax holiday since its inception and am pleased to do my part to ensure its success. I have enclosed a list of items for a quick reference and a flyer you can post in a prominent place in your store in advance of the tax holiday.
The list cannot include every possible item that qualifies for the exemption. If you have questions about items not shown here, please call my office at 1-800-252-5555.
Here are some highlights about the sales tax holiday:
* The tax holiday occurs every year on the first Friday, Saturday, and Sunday of August. Qualifying items are exempt from state sales taxes, but exemption from local sales tax is up to individual cities. This year, since no cities opted out of the holiday, qualifying items will be fully exempt from tax throughout Texas.
* Most clothing and footwear priced at less than $100 will be exempt from sales tax. Customers will receive the break on individual items, regardless of the total amount they buy. For example, sales tax is not due if a customer buys six shirts each priced at $99.99. But full tax is due on a shirt sold for $100; the first $99.99 cannot be exempted.
* Clothing and footwear used primarily for athletic activities or for protective wear are not eligible for the exemption. Customers buying golf cleats or football pads, for instance, must pay sales tax. Athletic wear that is also used for participation in other non-athletic activities can qualify for tax exemption. For example, tennis shoes, baseball caps, and jogging suits are worn during everyday activities and thus may be purchased tax free during the holiday.
* Also excluded from the sales tax holiday are accessories such as jewelry and watches; items that are carried rather than worn, including handbags, briefcases and wallets; clothing rentals, such as formal wear and costumes; and repairs and alterations.