Tax free shopping holiday begins tomorrow, August 21.
This year for the first time school supplies have been added to the tax-free shopping list. This should help many parents save by shopping during the upcoming tax free holiday, which runs Friday through Sunday.
Texas shoppers will be exempt from local and state sales taxes for many school-related items during this time. Shoppers should save about 8% or $8 on every $100 spent. The Texas comptroller has exempted from sales tax clothing and footwear under $100, backpacks under $100 for elementary and secondary students, and layaway items.
New this year will be a tax cut on items such as pens, paper, binders, notebooks and other standard school supplies. Also exempt are messenger bags and backpacks with wheels as long as they can be attached to the back like a regular backpack.
There are some limitations on tax free shopping such as luggage, briefcases, athletic/duffel/gym bags, computer bags, purses or framed backpacks. No more than 10 backpacks can be purchased at one time without an exemption certificate.
The tax break is estimated to save families nearly $9 million in state and local sales taxes this year on school supplies, for a total savings of $65.7 million in state and local sales taxes, according to the Texas comptroller's office.
Retailers will observe extended hours during the tax-free shopping holiday. Many stores will be open 9 a.m. to 10 p.m. on Friday and Saturday and 11 a.m. to 6 p.m. Sunday.
Do you plan on doing some tax-free shopping week-end? What are you planning to buy?