Tax free weekend in Texas is usually the first sign that school is about to start. While we all appreciate the savings that this brings (thanks government), it does have some fine print that you should be aware of. I took an evening to study some of the details and wanted to share them with you.
Tax-free weekend in Texas for 2013 is August 9-11.
CLOTHES AND SHOES:
First, retailers are only required “not” to charge tax on items that cost $100 or less. If you buy 2 pairs of jeans that cost $75 each, you will get each pair tax free. If you buy a pair of jeans that cost $110, you are going to pay tax on all $110. Your grand total can be more than $100, and you still get each item sans tax. (For example, I can pay for my 2 pairs of $75 jeans in one transaction.)
What doesn’t qualify? Anything that would be a special clothing or footwear that’s worn for an athletic purpose or activity. (However, tennis shoes and swimsuits do qualify for the exemption.) Cleats and football pads, do not. Also, jewelry, purses, luggage, wallets watches … you will pay tax on all of these items.
BACKPACKS:
My daughter had to have a rolling backpack last year. Had to have. Those only qualify for the tax exemption IF they can also be worn on the back. (My daughter’s came from Justice and it could be worn, even though it was very awkward and cumbersome!)
Also, you can only buy up to 10 backpacks at one time tax-free. So, if you are adopting a school or a class, you need to do separate transactions should you need to buy more than 10 at one store.
SCHOOL SUPPLIES:
Most anything goes in this area. Provided it’s less than $100 (that’s quite an expensive pencil), you won’t run into issues!
LAYAWAY & RAINCHECKS:
There are a few stores that still do layaway. If you can find one, your items that are eligible for tax exemption will be honored.
Rainchecks are a different story. If you have a raincheck on an item and you find it in stock to purchase over the tax-free weekend, both the raincheck and the tax free discount will apply. But, for example, if you get a raincheck for a backpack over the tax free weekend. You will pay tax when you buy it provided it is after 11:59 PM on the Sunday when the tax promotion ends. (For more information on using a raincheck, here’s a previous post!)
WORD TO SMALL BUSINESS OWNERS:
If you sell items in your store that do not qualify for the tax free discount, you can NOT – by Tax Code Section 151.704 – advertise any type of promotion that says that you will pay the sales tax for the customer.
€¦ and remember, there’s no cents in paying full price! Anything you buy over this great weekend can be paired with a coupon. Store sales coupled with coupons and no tax can equal a great savings!
* This post is part of a weekly segment on KSBJ Christian Radio. For more on segments featuring Stephanie Click, the Texas Money Mom, click here.
