Ready....set....shop!
Tax-free weekend slated for this weekend

Texas shoppers get a break from state and local sales taxes on August 17, 18, and 19 - the state's annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.

"The Legislature voted to change the date of the sales tax holiday because schools are opening later in many districts," said Texas Comptroller Susan Combs said. "Most families take advantage of the sales tax holiday to buy back-toschool clothes for the kids."

During the sales tax holiday, most children's and adults' clothing and footwear priced at less than $100 is exempt from state and local sales taxes.

This year, for the first time, school backpacks costing less than $100 may be purchased tax free, but shoppers must pay tax on all other school supplies.

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. Abackpack is a pack with straps one wears on the back.

The new 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.

Tax free items include 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

For information on how to report tax on these sales, please visit Reporting Sales Tax on Tax-Free Items or call us toll free at (800) 252-5555.