Texas Tax Free Weekend 2014 is August 8th – 10th!!!
The State of Texas officially calls it a Sales Tax Holiday and has scheduled it for this weekend, August 8th thru 10th. All weekend the State will exempt most clothing, footwear, school supplies and backpacks priced under $100 from sales and use taxes, which could save you about $8.25 on every $100 you spend!
Here are some Texas Tax Free Weekend Shopping Tips…
1) Shop with a list.
Because self-control is hard and it’s easy to get caught up in the moment. The kids walk up with piles of “wants” in their arms ready to throw them in the basket but you’ll be most time- and cost-efficient if you just stick to the list. If you’re going to use a shopping list and need to know what items qualify for the for the sales tax exemption this weekend… Click the links for the complete lists:
Qualifying clothing, footwear and other items
Qualifying school supplies
2) Buy in bulk.
Since you’re saving about $8.25 on every $100 spent, it’s the best time of the year, besides maybe Black Friday, to buy what you are going to need anyway. For example… if you look at the list of exempt items, you’ll find that diapers are tax-exempt. If you have babies and a diaper budget that will support buying in bulk, you can save a significant amount of money by buying them now. Just remember babies grow… make sure to take that into account when buying for future use!!!
3) Go early.
You’ve heard it all of your life, “The early bird gets the worm!” It works the same way with sales. Retailers are going to be offering special deals in accordance with the tax-free weekend but you might miss out if you wait until later in the day, or later into the weekend, to stroll into the Targets, or the Walmarts, or the shopping malls. I’m not saying that you need to camp out the night before but this is a very heavy shopping weekend and if you want to come home with the treasures on your list, the best selection will be available early in the weekend. If you get there too late and the store is sold out of an item that you want… ask for the rain-check! See below for the fine print about rain-checks.
Want to know the fine print?
Clothing and Footwear
Retailers are not required to collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. Exemption certificates are not required. The exemption applies to each eligible item 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.
The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $99.99. For example, if a customer purchases a pair of pants that costs $110, then sales tax is due on the entire $110.
The exemption also does not apply to sales of special clothing or footwear that the manufacturer primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which the manufacturer designed the article. For example, golf cleats and football pads are primarily designed for athletic activity or protective use and are not normally worn except for those purposes; they do not qualify for the exemption. Tennis shoes, jogging suits and swimsuits, however, are commonly worn for purposes other than athletic activity and thus qualify for the exemption.
The sales tax holiday exemption does not extend to rental of clothing or footwear; nor does it apply to alteration (including embroidery) or cleaning services performed on clothes and shoes. Additionally, tax is due on sales of accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items.
Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday. A backpack is a pack with straps one wears on the back. The exemption 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/duffel/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.
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
Purchases of School Supplies Using a Business Account
Persons buying qualifying school supplies during the holiday are not required to provide an exemption certificate – with one exception. If the purchaser is buying the items under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. “Under a business account” means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.
A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchandise on layaway during the holiday or makes the final payment during the holiday. See Rule 3.365(i).
Eligible items that customers purchase during the holiday with use of a rain-check qualify for the exemption regardless of when the rain-check was issued. However, issuance of a rain-check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain-check is presented at the time of purchase. See Rule 3.365(j).
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. You are prohibited from advertising that you will not collect sales tax on items that do not qualify, but you may advertise that tax is included in the sales price of the taxable items that you sell. See Tax Code Section 151.704
for more information.Reporting Requirements for Sellers