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
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