Tax-Free Weekend to kick off Friday
to kick off Friday
By Jason Jones
Messenger Reporter
TEXAS – Texas State Comptroller of Public Accounts, Glenn Hegar, recently announced the dates for the annual Sales Tax Holiday for 2021. This weekend, Aug. 6-8, families will be able to purchase qualifying items, including shoes and clothing, school supplies, and other goods tax free in preparation for the coming school year.
The Comptroller encourages all taxpayers to continue practicing social distancing and support Texas businesses while saving money on tax-free purchases of most clothing, footwear, school supplies and backpacks (sold for less than $100) during the annual Tax-Free weekend. Qualifying items can be purchased tax free from a Texas store or from an online or catalog seller doing business in Texas. In most cases, you do not need to give the seller an exemption certificate to buy qualifying items tax free.
This year’s sales tax holiday begins Friday, Aug. 6, and goes through midnight Sunday, Aug. 8.
The sales tax exemption applies only to qualifying items you buy during the sales tax holiday. Items you buy before or after the sales tax holiday do not qualify for exemption, and there is no tax refund available.
Online Purchases and Telephone Orders
During the Tax-Free Weekend, you can buy qualifying items online or by telephone, mail, custom order or any other means (including in-store purchases) tax free, when either:
• the item is both delivered, and paid for, by the customer during the exemption; or
• the customer orders and pays for the item, and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period ends.
• A seller accepts an order when the seller has acted to fill the order for immediate shipment.
• An order is filled for immediate shipment regardless of whether the shipment is delayed due to a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.
In Store Purchases
The Comptroller’s office urges all taxpayers buying certain qualifying items at their local retailers to practice appropriate social distancing as described in the Center for Disease Control and Prevention guidelines during the sales tax holiday.
Qualifying Items
During the sales tax holiday, you can buy most footwear and clothing (sold for less than $100) tax free. You do not need to give the seller an exemption certificate.
The exemption applies to each eligible item sold for less than $100, and there is no limit to the number of qualifying items you can buy.
For example, if you buy two shirts for $80 each, each shirt qualifies for the exemption because each is less than $100, even though the total purchase price is $160.
Items That Do Not Qualify
The following items do not qualify for exemption during the sales tax holiday:
• items sold for $100 or more
• clothing subscription boxes
• specially designed athletic activity or protective-use clothing or footwear
For example, golf cleats and football pads are usually worn only when people play golf or football, so they do not qualify for the exemption.
• Tennis shoes, jogging suits and swimsuits, however, can be worn for other than athletic activity and qualify for the exemption.
• clothing or footwear rentals, alterations (including embroidery) and cleaning services
• items used to make or repair clothing, such as fabric, thread, yarn, buttons, snaps, hooks and zippers
• jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and other accessories
• computers
• software
• textbooks
• certain baggage items (see below)
• unspecified school supplies (see below)
Face Masks
Cloth and disposable fabric face masks meet the definition of an article of clothing and are exempt from sales tax during the upcoming Sales Tax Holiday.
The statute specifically excludes special clothing or footwear that is primarily designed for athletic activity or protective use and that is not normally worn except when used for the activity. Industrial or medical grade masks (e.g., N95 or other masks designed as personal protective equipment) or other similar personal protection equipment are not exempt during the sales tax holiday.
If a cloth or disposable fabric face mask is sold with a filter, the mask is exempt during the holiday; however, replacement filters are taxable.
Backpacks
During the sales tax holiday, student backpacks sold for less than $100 are exempt from tax.
The exemption includes backpacks with wheels and messenger bags. You can buy up to 10 backpacks tax free at one time without giving an exemption certificate to the seller.
Baggage Items
That Do Not Qualify
• framed backpacks
• luggage
• briefcases
• athletic, duffle or gym bags
• computer bags
• Purses
School Supplies
Only specific school supplies sold for less than $100 qualify for the exemption, and an exemption certificate is not required.
For more information regarding the Sales Tax Holiday, visit the Comptroller’s website at https://comptroller.texas.gov/taxes/publications/98-490/
Jason Jones may be reached via email at [email protected]
