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Clothing Sales Tax Holiday

Posted by Texas Education on July 30, 2008

Hey All–

Thought I would pass this along. Received this in an email from a good friend. With gas prices so high this might help on cost for some. I’ve not been one to much take advantage of this, used to be not much was actually tax deductible, but times — they are a changin’. And I’ve not been one to go out and splurge (even for school stuff) on much of anything, saving $8 per $100, um, with gas prices, be careful where to ‘drive to,’ that savings might just get eaten up in gas.

Three-Day Sales Tax Holiday for Clothing and Footwear

August 15-17, 2008

Texas shoppers get a break from state and local sales taxes on August 15, 16 and 17 – the state’s annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.

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.

Backpacks under $100 and used by elementary and secondary students are also exempt. A backpack is a pack with straps one wears on the back. The exemption during the sales tax holiday includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags. 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.

A word of caution: If you sell items that do not qualify for the exemption, you may not advertise or promise that you will pay your customers� sales tax. Additionally, you are prohibited from advertising that you will not collect sales tax on items that do not qualify. You may advertise that tax is included in the sales price of the taxable items that you sell, however.

For information on how to report tax on these sales, please visit Reporting Sales Tax on Tax-Free Items or call us toll free at (800) 252-5555.

List of Items and Their Exempton Status

TAX-FREE

TAXED

  • Baby clothes
  • Backpacks for use by elementary and secondary students
  • Belts with attached buckles
  • Boots – cowboy, hiking
  • Caps/hats – baseball, fishing, golf, knitted
  • Coats and wraps
  • Diapers – adult and baby
  • Dresses
  • Gloves (generally)
  • Gym suits and uniforms
  • Hooded shirts and hooded sweatshirts
  • Hosiery
  • Jackets
  • Jeans
  • Jerseys – baseball and football
  • Jogging apparel
  • Neckwear and ties
  • Pajamas
  • Pants and trousers
  • Raincoats and ponchos
  • Robes
  • Shirts
  • Shoes – sandals, slippers, sneakers, tennis, walking
  • Socks (including athletic)
  • Shorts
  • Suits, slacks, and jackets
  • Sweatshirts
  • Sweat suits
  • Sweaters
  • Swimsuits
  • Underclothes
  • Work clothes and uniforms
  • Accessories (generally) – barrettes, elastic ponytail holders, wallets, watches
  • Backpacks – unless for use by elementary and secondary students
  • Baseball cleats and pants
  • Belt buckles (without belt)
  • Boots – climbing, fishing, rubber work boots, ski, waders
  • Buttons and zippers
  • Cloth and lace, knitting yarns, and other fabrics
  • Dry cleaning services
  • Football pants
  • Golf gloves
  • Handbags and purses
  • Handkerchiefs
  • Hard hats
  • Helmets – bike, baseball, football, hockey, motorcycle, sports
  • Ice skates
  • Jewelry
  • Laundering services
  • Leather goods – except belts with buckles and wearing apparel
  • Pads – football, hockey, soccer, elbow, knee, shoulder
  • Personal flotation devices
  • Rented clothing (including uniforms, formal wear, and costumes)
  • Roller blades and skates
  • Safety clothing, glasses
  • Shoes – bicycle (cleated), bowling, golf

[ (T) = Taxable; (E) = Exempt ]

Download a Print Version of this List (PDF file)

A

B

C

D

E

F

G

H

I-J

K

L

M

N

O-P

R

S

T

U

V-W

This list provides examples only. It does not include all items that may qualify for exemption during the sales tax holiday. If you have questions, please call us toll free at (800) 252-5555.

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