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Tax-Free Weekend
Texas shoppers get a
break from state and local sales taxes on
August 15, 16 and 17 - 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.
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.
