The statewide back-to-school tax free holiday is set for Aug. 6 through 8. During the holiday, purchases on a majority of school items, such as backpacks, clothing and school supplies, will be fully exempt from the state sales tax.
It is important to note, however, that items individually priced $100 or more will not be tax exempt.
Moreover, not all clothing will meet the necessary criteria. For example, a majority of sports equipment, such as baseball pants, sports padding, and sports shoes such as cleats will not be tax exempt.
Accessories such as wallets, handbags, watches, and so on will also not be tax exempt.
Face masks will be partially tax exempt. Cloth mask purchases will not be subject to the sales tax, but N-95 masks and mask filters will.
What sets this year apart, however, is that all online sales will also be tax exempt so long as the supplier is based in Texas and both the total cost of shipping and the item does not exceed $100. This means that buyers could pay $95 for a shirt with a $10 shipping fee, which would result in a total of $105. In that case, the item would not be tax exempt.
Sellers will also be able to pay sales tax in place of the customer, which may help parents and students afford items that are otherwise not tax exempt.
Layaways will be eligible for tax exemption so long as the purchaser makes the final payment on an item that is on layaway, and when an item is chosen and placed on layaway.
Finally, most purchasers should not need to show proof of certification for eligibility, however, purchases made with a business card will be required to do so.
A full list of tax exempt items may be found on the comptroller’s website, comptroller.texas.gov.