Sales Tax Holiday
August 4-6, 2006
Texas shoppers get a break from state and local sales taxes on August 4, 5, and 6 – 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.
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 1-800-252-5555.
http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html
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