Even as the start of the fall semester in many school districts has been delayed this year because of the COVID-19 situation, shoppers across Texas can take advantage this weekend of a break from state and local sales taxes, during the annual sales tax holiday.
According to the Texas Comptroller’s Office, the event which starts Friday and continues through Sunday exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.
“Even though significant uncertainty remains for our public and private schools as a result of the COVID-19 pandemic, the sales tax holiday is a perfect opportunity to save money on school supplies and other tax-free items at a time when many Texans are carefully monitoring their family finances,” said Comptroller Glenn Hegar. “Online shopping is covered, so I encourage all Texans to shop online or practice social distancing when making in-store purchases. We want folks to stay safe while saving money.”
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.
Apparel and school supplies that may be purchased tax-free are listed on the Comptroller’s website at TexasTaxHoliday.org.
Texas’ sales tax holiday weekend has been an annual event since 1999, allowing Texans to save millions of dollars in state and local sales taxes each year.
Uncertainty surrounding consumer activity in the retail sector coupled with a lack of clarity regarding the timing and nature of schools reopening prevents the agency from producing an estimate for dollars saved by taxpayers during this year’s holiday. Last year’s holiday generated an estimated $102.2 million in savings for Texas taxpayers.