Tax-free shopping begins Friday

By Marc Robertson - Editor | August 10, 2023

BACK-TO-SCHOOL READINESS

BUYERS SAVE ON RETAIL GOODS FROM PENCILS TO PANTS

Families across Texas will have the better part of three days this weekend to save tax expenses when they purchase the supplies, clothes and accessories that their children will need for the new academic year.
The annual Texas Tax-Free Weekend begins Friday, August 11, and continues through Sunday night, Aug. 13, during which time retail stores will not charge state or local tax on any vital goods costing under $100 each.
While the tax holiday focuses primarily on school supplies, the list of items that will be tax exempt includes almost all clothing, shoes and boots, and other necessities.
Online and telephone-order shopping also allow tax breaks, according to the office of the Texas comptroller, provided that the online store is based in Texas and the customer completes the purchase during the allotted time, regardless of when the order will be filled or packages shipped and delivered.
Pens and pencils, colors, crayons and markers, desk supplies, writing paper and notebooks, binders and other stationery typically required for students to do their work at any grade level will be tax-free this weekend. Shoppers will be spared approximately $8 per every $100 they spend at retail stores for the goods.
All shirts and pants, blouses and dresses for daily wear, underwear, socks, baby and young children’s supplies, most sports jerseys, gym wear, winter clothes, coats and hats, backpacks for elementary and secondary school students, all diapers, most uniforms, most gloves, hoodies, hosiery, masks, rain gear, sandals and slippers, sleepwear, neckties and even hunting vests will be tax-free during the three-day period.
Some specialty items will, however, still be taxable. Those include clothes and footwear unique to certain sports, such as cleats and protective pads, ski gear, sports helmets of many kinds, non-prescription sunglasses, and some clothes and shoes used exclusively for dance or water sports.
Wallets, watches, wrist bands, belt buckles, weight lifting belts, handbags and purses, headbands, hair accessories, noise canceling headphones, supplies for repairs or sewing, and all jewelry will be taxed.
Electronics and all entertainment gear will likewise be subject to sales tax.
Although the sales tax holiday applies to all items costing up to $100 each, the state comptroller is advising shoppers that online purchases that include delivery fees may add up to more than the price limit for tax exemption. The comptroller’s office gives the example of a pair of jeans costing $95 as tax exempt but a $10 delivery fee making the total more than the allowable limit, therefore requiring tax to be paid on the entire purchase.
The sales tax holiday applies to all retail stores in the state of Texas that offer items for sale listed by the comptroller as tax exempt between Friday and Sunday.
The annual tax holiday was created in Texas in 1999 under Senate Bill 441 in the Texas Legislature, authored by State Sen. Rodney Ellis of Houston, and timed to coincide with the busiest back-to-school shopping period of the year.
The Texas comptroller has estimated that shoppers will save an estimated $136 million in state and local sales taxes this weekend.