All those families getting ready to go back to school are reminded by Texas Comptroller Glenn Hegar the annual sales tax holiday will take place this weekend, Aug. 5-7.
The law exempts most clothing, footwear, school supplies and backpacks priced for less than $100 from sales tax, saving shoppers about $8 on every $100 they spend during the weekend.
Lists of apparel and school supplies that may be purchased tax-free can be found on the Comptroller’s website at TexasTaxHoliday.org
This year, shoppers will save an estimated $92 million in state and local sales taxes during the sales tax holiday, which has been an annual event since 1999.
Retailers are not 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. Exemption certificates are not required. 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.
For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer’s total purchase price ($160) exceeds $99.99.
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