Shoppers and parents will have a chance to buy school supplies, backpacks, most clothing, and shoes tax free. Texas sales tax holiday is August 17-19.
Clothing and Footwear
Retailers will not be 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. 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.
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.
Additionally, tax is due on sales of accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items.
The sales tax holiday exemption does not extend to rental of clothing or footwear; nor does it apply to alteration or cleaning services performed on clothes and shoes. These items continue to be subject to state and local sales or use tax.
Backpacks under $100 and used by elementary and secondary students are 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.
The following is an all-inclusive list of qualifying school supplies:
- 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 (including dry erase 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
List of Clothing, Footwear and Backpacks: