Texas Sales Tax Holiday Provides Back-To-School Savings

Looking for some tax relief? The state of Texas offers an annual Sales Tax Holiday each summer to ease the burden of back-to-school shopping. The annual tax free weekend also serves to revive retail sales after the summer doldrums.

For 2012, the Texas state Sales Tax Holiday is July 27 through July 29th. School supplies and clothing are exempted from state and local sales taxes during the Tax free shopping weekend. For the most part, items that are exempt from taxes represent basic supplies and clothing items under $100. Some specialized items, such as team sporting supplies and high end athletic items are still considered taxable. The temporary waiver of sales tax represents a savings of about 8%. Plus, many stores have additional promotions timed to coincide with the Sales Tax Holiday to take advantage of increased foot traffic.

What are some of the clothing items included in the sales tax waiver?

Most school supplies, including paper, notebooks, binders, book bags, pencils, crayons, glue, and many other supplies will be tax free that weekend. Plus, most clothing items are exempted from taxes on the Sales Tax Holiday, including:

• Dress shirts


• T-shirts


• Polo shirts


• Jeans, pants and slacks


• Dresses


• Gym suits and uniforms


• Jackets and coats


• Hoodies and sweatshirts


• Backpacks designed for school age kids


• Boots - of course the state of Texas exempts Cowboy boots!


• Caps/hats - typical baseball type caps are exempt as are cowboy hats


• Jerseys - both football and baseball


• Jogging outfits


• Shoes - most types are exempt including walking shoes such as tennis shoes, sandals, or slippers,


• Uniforms and work clothes

What are some of the clothing items that are still taxed? The taxable items include mainly goods that are higher priced, or specific to a particular sport or not generally applicable to back to school

• Accessories (generally) - wallets, watches


• Football and baseball pants and baseball cleats


• Boots - specific function items such as those for climbing, rubber work boots, waders


• Handbags and purses


• Helmets - bike, baseball, football, hockey, motorcycle, sports


• Jewelry


• Leather goods - except belts with buckles and wearing apparel


• Pads - football, hockey, soccer, elbow, knee, shoulder


• Rented clothing (including uniforms, formal wear, and costumes)


• Safety clothing, glasses


• Shoes - bicycle (cleated), bowling, golf

Unfortunately, some of the items not covered under tax free days are becoming bonafide back-to-school purchases for high school and middle school aged students. For example, neither personal computers nor mobile phones are included under the waiver. However, computer manufacturers gear up for the back-to-school savings with special deals and freebies. Although many schools still have anti-cell phone policies, those have begun to ease up as schools begin to view them as learning devices.

For further details about the Texas Sales Tax Holiday, check out the State of Texas web site.