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Texas Sales Tax Holiday

Save Money With This Annual Tax Break

By , About.com Guide

What is it?
Each year, the Texas government has a sales tax holiday that is greatly beneficial to consumers. It is usually held during a weekend in August. During this time, sales tax is not charged on certain items, saving shoppers $8 on every $100 they spend. The items usually covered are clothes, footwear and some backpacks.

The Texas sales tax holiday usually always falls around the start of school, making it a great time for parents to save money on back-to-school items and clothing. You can also take advantage of the sales tax holiday with lay-away plans.

Spend wisely
It is important to note that there are limits on what is exempt from sales tax during this holiday. To be tax-exempt, each individual item must be under $100. This means it's not the time to stock up on designer wear! It is best for your average back-to-school shopping.

Be prepared
While this is a great time to enjoy savings on shopping, remember that everyone else will be out taking advantage of it, too! Prepare for packed parking lots and long lines. Have a shopping list ready and come equipped with plenty of patience!

Texas 2009 sales tax holiday
In 2009, Texas’ sales tax holiday will be from August 21-23. This year, the Texas legislature has added most school supplies to the tax-free list, making back-to-school shopping more affordable. However, according to the Comptroller’s Web site, these items must be “priced at less than $100 [and] purchased for use by a student in an elementary or secondary school.”

View the Texas State Comptroller’s Web site to see the exhaustive list of all items that are tax-free in 2009.

Complaints
If a merchant is charging taxes on items that should be tax-free during the holiday, call the Texas Comptroller’s office at (800) 252-5555.

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