Shoppers will save more than ever during the annual sales tax holiday — which now includes more than two dozen school supply items in addition to clothing and backpacks. Families will save an estimated $65.7 million in state and local sales taxes, according to Texas Comptroller Susan Combs.
The annual sales tax holiday weekend is coming up Aug. 21 through 23. State law designates the weekend of the third Friday in August for the sales tax holiday.
“Most families are on tight budgets, and it can be a real challenge to buy kids the clothes and supplies they need for a new school year,” Combs said. “The tax break on school supplies alone will save families nearly $9 million in state and local sales taxes this year.”
HB 1801, co-authored by Rep. Aaron Peña, D-Edinburg, in the 81st Legislative Session, expanded the list of items qualifying for exemption from state and local sales taxes. In addition to clothes, footwear and backpacks, Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
“The sales tax holiday is a boon to businesses and shoppers alike,” said Peña. “Families are looking to stretch every dollar. I was eager and happy to work on a bill this session that extends the savings to include back-to-school supplies.”
Lists of tax-free clothing and school supplies can be found at www.txtaxholiday.org.
The annual August tax-free shopping spree has saved shoppers around $442 million since it began in 1999.