The Huntsville Item, Huntsville, TX

August 19, 2010

Tax free weekend begins Friday across state

By Mary Rainwater
Staff Reporter

HUNTSVILLE — Texas’ annual Sales Tax Holiday arrives this weekend, just in time for families to save money on clothes and supplies for the new school year.

“This is the 12th straight year in which families will take advantage of sales tax savings,” Texas Comptroller Susan Combs said. “This Friday, Saturday and Sunday, Aug. 20–22, shoppers can stock up on tax-free school supplies, school backpacks and most children’s and adults’ clothing and shoes priced at less than $100.”

School supplies are the newest addition to the Sales Tax Holiday tax free list, expanded through the passage of House Bill 1801 during the 81st Legislative Session in 2009.

In addition to the usual clothes, footwear and some backpacks, Texas families also will get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.

Some qualifying school supplies include binders, calculators, crayons, erasers, glue and paste, highlighters, index cards, markers, notebooks, paper such as loose leaf ruled notebook paper, copy paper, graph paper, colored paper, manilla paper and construction paper, as well as pens, pencils, scissors and more.

As in previous years, 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.

Tax free clothing, footwear and backpack items include baby clothes, belts, boots, coats, dresses, jackets, jeans, raincoats, pajamas, pants and trousers, suits and slacks, sweatshirts, shorts, underclothes and more.

Backpacks under $100 and used by elementary and secondary students are also exempt.

This year, Combs predicts shoppers will save $59.3 million in state and local sales taxes during the Sales Tax Holiday, which takes place each year on the third Friday, Saturday and Sunday in August. The tax holiday weekend has been an annual event since 1999.

To help families plan to make the most of the Sales Tax Holiday, lists of tax-free apparel and school supplies can be found on the Comptroller’s website at http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html.