Apparel and school supplies that may be purchased tax free are listed on the comptroller’s website at TexasTaxHoliday.org. File Art
As Texas students prepare to go back to school, their parents can save about $8 for every $100 they pay for clothes or supplies, Texas Comptroller Glenn Hegar said.
The annual state sales tax holiday is Friday, Saturday and Sunday, Aug. 9-11.
Hegar estimated shoppers will save $143.4 million in state and local sales tax during the sales tax holiday that has been a yearly event since 1999.
“For a quarter of a century, Texans have saved more than $1.8 billion on everything from blue jeans to ballpoint pens in preparation for the back-to-school bell,” Hegar said. “As the father of three, I know firsthand how these expenses add up over the years, and this weekend is the perfect time for folks to save some of their hard-earned cash on items they need.”
Qualified items for elementary or secondary school students — such as clothing, footwear, school supplies and backpacks — costing less than $100 per item.
The item’s total sales price will determine if it is tax free. For example, two shirts priced at $80 each would both qualify for the exemption, even though the total purchase is $160.
Backpacks priced under $100, including those with wheels and messenger bags, are tax-free, but there is a limit of 10 packs per purchase.
Qualifying items can be purchased tax free in store, online or by telephone, mail or custom order so long as the item is paid for during the exemption period and either picked up immediately or delivered after the exemption period ends.
Additional charges like delivery can affect the sales price, the comptroller said, since delivery, shipping, handling and transportation charges by the seller are all part of the item’s sales price.
For example, a pair of jeans for $95 with a $10 delivery charge would add up to $105, so tax would be due on the entire price of $105.
If a delivery charge is billed per item, and an invoice has both exempt and taxable items, only the qualifying exempt item’s delivery charge is exempt so long as the total of that item is less than $100, Hegar said.
If the delivery charge is a flat rate per package, and the amount charged is the same regardless of how many items are included in the package, the total charge can be attributed to any one of the items in the package.
Apparel and school supplies that may be purchased tax free are listed on the comptroller’s website at TexasTaxHoliday.org.
The list of school supplies exempt from tax during the holiday include: binders, book bags, calculators, cellophane tape, blackboard chalk, compasses, composition books, crayons, erasers, expandable folders, pocket folders, plastic folders, manila folders, glue, paste, paste sticks, highlighters, index cards, index card boxes, legal pads, lunch boxes, markers, notebooks, loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, construction paper, pencil boxes and other school supply boxes.
However, computers and textbooks are not eligible for the exemption even if they are priced below $100.
The exemption also does not apply to any special clothing or footwear that the manufacturer primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which the manufacturer designed the article.
For example, golf cleats and football pads are primarily designed for athletic activity or protective use and are not normally worn except when used for those purposes. Therefore, they do not qualify for the exemption. However, tennis shoes, jogging suits, and swimsuits are commonly worn for purposes other than athletic activity and thus do qualify for the exemption.
Also not covered are accessories such as jewelry, handbags, purses, briefcases, luggage, athletic bags, duffle bags, gym bags, computer bags, framed backpacks, umbrellas, wallets, watches and similar items that are carried on or about the human body, without regard to whether the item is worn on the body in a manner that is characteristic of clothing.
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