Sales tax holiday has arrived

August 13, 2008 10:00:00 PM PDT
The 10th annual Texas sales tax holiday is here and will run through Sunday as families prepare to send children back to school. Texas shoppers get a break from state and local sales taxes on August 15, 16 and 17, 2008 - the state's 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. 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.

Texas Comptroller Susan Combs estimates shoppers will save about $54 million. She adds that the tax loss is not expected to have a significant impact on Texas sales tax collections. She says Texas sales tax revenue "continues to grow at a healthy pace."

List of Items and Their Exempton Status

    TAX-FREE
  • 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
    TAXED
  • 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
For an even more detailed list, visit the Texas Comptroller's website.

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