Sales tax holiday on upcoming back-to-school supplies | Business
The statewide back-to-school tax-free vacation is August 6-8. During the holidays, purchases on the majority of school items, such as backpacks, clothing, and school supplies, will be fully exempt from state sales tax.
It is important to note, however, that items individually priced at $ 100 or more will not be exempt from tax.
In addition, not all clothes will meet the necessary criteria. For example, the majority of sports equipment, such as baseball pants, athletic padding, and athletic shoes such as crampons, will not be exempt from tax.
Accessories such as wallets, handbags, watches, etc. will not be exempt from taxes either.
Face masks will be partially tax exempt. Purchases of cloth masks will not be subject to sales tax, but N-95 masks and mask filters will.
What sets this year apart, however, is that all online sales will also be tax exempt as long as the supplier is based in Texas and the total cost of shipping and item does not exceed $ 100. This means that buyers could pay $ 95 for a shirt with a shipping charge of $ 10, which would add up to $ 105. In this case, the item would not be exempt from tax.
Sellers will also be able to pay sales tax on behalf of the customer, which can help parents and students afford items that are otherwise not exempt from tax.
Layaways will be eligible for tax exemption as long as the purchaser makes final payment on an item set aside and an item is picked and put away.
Finally, most buyers should not need to show proof of eligibility, however, purchases made with a business card will be required to do so.