Back to School Means Sales Tax Holiday
The 2016-2017 school year is right around the corner, which means the arrival of Texas’ annual Sales Tax Holiday weekend. From August 5-7, Texas law exempts most clothing, school supplies, footwear and backpacks from sales and use taxes under $100. This means shoppers could expect to see a savings of $8 per every $100 spent stocking up on back-to-school necessities. As in previous years, lay-away plans can be used again to take advantage of the savings. The tax exemption includes purchase made in store, online and by phone from retailers engaged in business in Texas.
Texas’ annual Sales Tax Holiday weekend first began in 1999 as a way to help families save money while preparing for the upcoming school year. The popular holiday has resulted in tangible cost savings for families over the years. For example, last year, the Texas Comptroller’s office estimated Texans saved over $87 million in state and local sales taxes during the holiday, which occurs over the course of three days each August.
As with past Sales Tax Holiday weekends, items such as clothing, shoes and backpacks are exempt from sales and use taxes. There are a few important exceptions to note, however. While the exemption covers the majority of clothing and footwear, certain items manufactured specifically intended for athletic use are not exempted. This may include items such as football pads or cleats. Items such as running shoes and swimsuits that are commonly worn for both athletic and nonathletic activities will still qualify, however. While the exemption for backpacks does include backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags, it does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks.
In recent years, the Texas Legislature has expanded the type of items that are exempted form sales taxes to include school supplies for use by an elementary or secondary school student in addition to clothing, shoes and backpacks. This includes such items as pens, paper, binders, calculators and other common school supplies. However, the exemption is not applicable to such items as computers and textbooks.
Shoppers will not be required to have a sales tax exemption form for purchases made throughout the weekend, with one major exception. If the purchaser is buying supplies under a business account, the retailer must obtain an exemption certificate from the purchaser certifying the items are purchased for use by an elementary or secondary school student. This exception applies to purchases made with a business credit card or check rather than a personal credit card or check.
To assist families who are planning to take advantage of the savings, the Comptroller’s website provides complete list of qualifying goods. To find this information and other information relating to the 2016 Sales Tax Holiday, please visit the Texas Comptroller of Public Accounts.
If you have any questions regarding the Texas Legislature or the Sales Tax Holiday weekend, please don’t hesitate to contact either my Capitol or District office. My offices are available at any time to assist with questions, concerns or comments (Capitol Office, 512-463-0672; District Office, 361-949-4603).
– State Representative Todd Hunter, District 32
Rep. Hunter represents Nueces (Part) County. He can be contacted at todd.hunter@house.state.tx.us or at 512-463-0672.
