Clothing Sales Tax Holiday

Clothing Sales Tax Holiday

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

TAXED

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

Sources:
http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html

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