Tax Free Holiday
If summer was a weekend the month of August would be Sunday. The bittersweet month of summer vacation when back to school commercials start taking over the airwaves in radio, TV, and internet as friendly reminders that the days of waking up without an alarm clock are nearly over. But there is a silver lining to the idea of going back to school, besides continuing an education, shopping! August 5-7th is a Tax Free Holiday!
The law exempts most clothes, footwear, school supplies, and backpacks that cost less than $100 from sales tax. The savings is roughly $8 per every $100 spent. But like with most laws there are exemptions and guidelines to what is taxed and what isn’t during this weekend. The Texas Comptroller of Public Accounts has stated all the guidelines to help you shop smarter this weekend.
Clothing & Footwear
When shopping for new school clothes, remember that the tax free rule only applies to items that cost less than $100. However, the rule is for each individual item, not the total amount purchased. If you have $1,000 worth of clothes in your shopping cart, but all the items are priced less than $100 then you will not be taxed.
Items of clothing that do not qualify, even if they cost less than $100, are specialty clothing designed for athletic activity or protective use. Items like golf shoes, football pads, helmets, and stuff of that natural will be taxed. The reason being that this tax-free weekend is for clothes and footwear that are worn on a daily bases. Tennis shoes, swimwear, and jogging suits do qualify for tax exemptions since they can be worn frequently.
Tax exemption rule does not apply to tailored clothing, cleaning services, clothing rentals, or accessories like: jewelry, watches, handbags and purses, briefcases, luggage, umbrellas, or wallets.
Backpacks used by elementary and middle school students are exempt from tax this weekend. That includes rolling backpacks if they have straps that can be worn like a traditional backpack. There is a limit to the number of backpacks you can purchase at one time. You can only buy 10 or less backpacks tax-free at one time without having to provide the retailer with an exemption certificate validating your purchase.
Luggage, briefcases, recreational sports bags (duffel, gym bags, etc.), computer bags, purses, and framed backpacks do not qualify for tax exemption this weekend.
The $100 rule applies to most school supplies used by elementary and middle school students. There’s no limit on the quantity, unlike backpacks.
The only rule is that if you purchase school supplies under a business account you will have to show an exemption certification. So try to avoid paying with a company credit card or check, try to use personal credit cards or checks.
Back to School Safety
A back to school supply shopping spree is also a great reminder that in a few weeks we will have to readjust our driving habits for the additional traffic in our daily commutes.
Remember to always stop when a school bus is dropping off or picking up students. It is illegal to pass a school bus that has stopped to load or unload children, according to the National Safety Council. Respect school zones by following the posted speed limit and avoiding anything that can distract you from driving. Remember that texting while driving is illegal in the city of San Antonio.
Jeff is Here 4 You!
If you or a loved one has been injured in an accident, Jeff is here for you! Davis Law Firm is here 24/7 to listen to your case with a team of legal representatives that offer free consultation. There is no risk in calling so don’t suffer another day and contact us today.