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Texas 2012 Sales Tax Holidays

  • Jan 19, 2012 | Susan McLain

August 17, 18 and 19 has been announced as Texas state’s annual tax holiday. The state’s website shares that “…most clothing, footwear, school supplies and backpacks priced under $100 [will be exempt] from sales and use taxes, which could save shoppers about $8 on every $100 they spend.”

During that time period, “retailers will not be required to collect state and local sales or use tax” on those items identified as sales tax exempt. The exemption is a per item exemption, meaning that if you purchase two items, each costing $35, “…then both items qualify for the exemption.”

Special clothing or footwear primarily used for athletic activities do not qualify for the sales tax holiday unless they are “…commonly worn for purposes other than athletic activity.” The exemption also does not extend to accessories, jewelry, handbags and similar items. Backpacks also have specific guidelines for what qualifies for the exemption; computer bags, gym bags, briefcases and luggage aren’t included.

School supplies used by elementary or secondary students and priced less than $100 are on the “all-inclusive” list that can be found on the website. In addition, you will find a list of clothing, footwear and backpacks that qualify and those that don’t just below the school supplies list.

The sales tax holiday gives individuals and families the opportunity to buy these items sales tax-free during the time period, August 17, 18 and 19, 2012 without being required to present an exemption certificate. However, if you try to purchase with a business account or as a business, you will be required to present a valid exemption certificate or pay sales tax on your purchases.

It is the responsibility of each merchant to ensure that they do not falsely advertise regarding the sales tax holiday. Each retailer will need to identify which items they sell can be bought sales tax-free and ensure that their financial systems and Point-of-Sale registers are ready to handle applying sales tax correctly during the holiday.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”