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Sales Tax Holiday
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. Effective this
year, 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
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
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.
The above information was copied
from the Texas Comptrollers
website.
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