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August is right around the corner. To many, that means it's time to start winding down the summer and getting the kids ready to head back to school for a new year. Texas parents will make many trips to local stores to purchase school supplies and clothing. Texas' shoppers will once again have an opportunity to save some money this year during the annual Sales Tax Holiday weekend on August 6, 7 and 8. This year marks the sixth year since the creation of the event. During the 76th Legislative Session in 1999, lawmakers created the three-day holiday to give back-to-school shoppers a break from the state sales tax on apparel and shoes costing less than $100. The tax holiday occurs every year on the first Friday, Saturday and Sunday of August. Individual cities can also choose to waive their sales tax on these items during this time. So far, all cities in Texas have chosen to participate in the tax-free holiday, resulting in no state or local sales taxes on qualifying items. Savings from the tax holiday amount to about $8 for each $100 spent on qualified items. While the tax holiday is aimed at helping parents save money on back-to-school items, anyone can take advantage of the tax-free weekend. The exemption applies to each article of clothing or footwear that sells for less than $100, regardless of how many items are sold on the same invoice to a customer. For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $99.99. Items that are excluded from the exemption are items used primarily for athletic activity, such as football uniforms and golf cleats. However, tennis shoes, jogging suits and swimsuits, commonly worn for purposes other than athletic activity, qualify for the exemption. Other excluded items include accessories such as jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items. You can find a detailed list of what is exempted and what is not exempted during the weekend on the internet at www.window.state.tx.us. During last year's Sales Tax Holiday, the Comptroller estimated that shoppers in Texas spent about $554 million on clothing and footwear and saved about $43.8 million because of the sales tax exemption. Over the five years that the three-day event has existed, shoppers have spent about $2.5 billion on clothing and footwear during the holidays and have saved about $194 million. You can contact me by writing to P.O. Box 2910, Austin, TX 78768-2910 or by e-mailing me at larry.phillips@house.state.tx.us.
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