Texas Comptroller Glenn Hegar has announced the annual Sales Tax Holiday, which will take place from August 9 to 11, 2024. This event allows shoppers to purchase qualifying items without paying sales tax, making it an ideal time to save on back-to-school essentials.

Details and Eligible Items

The tax-free weekend applies to most clothing, footwear, school supplies, and backpacks, provided each item is priced below $100. Whether bought in-store or online from Texas-based sellers, these items qualify for the exemption. Comptroller Hegar encourages all taxpayers to support local businesses while taking advantage of the tax savings.

Qualifying items include most clothing and footwear, with the stipulation that each item must be priced under $100. For instance, two shirts priced at $80 each would qualify for the tax exemption, even though the total purchase exceeds $100. However, items like clothing subscription boxes, specially designed athletic gear, and protective-use clothing do not qualify for the exemption.

Face masks, both cloth and disposable, are also included in the tax-free list, but industrial or medical-grade masks are not. Additionally, backpacks priced under $100, including those with wheels and messenger bags, are tax-free, with a limit of 10 per purchase. Specific school supplies under $100 also qualify for the exemption without needing an exemption certificate.

Special Considerations and Exemptions

Several important details must be considered to maximize savings during the Sales Tax Holiday. Purchases made using a business account require a completed Texas Sales and Use Tax Exemption Certificate to qualify for the tax exemption. Layaway items, special orders, and rain checks can qualify if the final payment is made during the tax-free period. Online and telephone orders are also eligible, provided the purchase is completed within the specified dates.

Additional charges like delivery and handling must be included in the item’s sales price to determine eligibility. For example, a $95 pair of jeans with a $10 delivery charge would be taxable since the total price exceeds $100. Shoppers who inadvertently pay sales tax on qualifying items can request a refund from the seller or file a claim with the Comptroller’s office using Form 00-985.

Guidelines for Shoppers and Sellers

Sellers must report tax-free sales in the Total Texas Sales section on their tax return and ensure any collected sales tax is remitted to the Comptroller’s office. It is essential for sellers to clearly state in their advertising that they are covering the sales tax on non-qualifying items, rather than implying an exemption.

This annual Sales Tax Holiday presents a great opportunity for Texans to save on essential items for the upcoming school year. By understanding the rules and taking advantage of the tax-free weekend, both shoppers and businesses can benefit from this event. Remember to check the eligibility of items and adhere to the guidelines to ensure a smooth and successful shopping experience.