Texas to hold second sales tax holiday

Texans will have the opportunity to save some money during the second annual Sales Tax Holiday this weekend, August 4-6.

During the Sales Tax Holiday, most clothing and footwear priced at less than $100 is exempt from state and local sales taxes. Though the holiday is timed to help families outfit their children to go back to school, the tax break isn’t limited to children’s wear.

Terry Askew, owner of Saye’s in Clarendon, says she’s looking forward to the holiday.

“It did bring in business last year,” Askew said. “The timing is nice for back to school clothes, and it’s a great opportunity for people to buy early for Christmas.”

Askew said her store will match the sales tax break by taking an additional 8.25 percent off everything in the store.

Also this year, the state has expanded the holiday to include layaway items.

“Eligible clothes and shoes placed in layaway during the Sales Tax Holiday weekend may be taken out at a later date tax-free,” Texas Comptroller Carole Keeton Rylander said. “This will allow hard-working Texas families with limited budgets to pay for their purchases a little bit at a time and still receive the tax break.

“The tax exemption applies to school uniforms, work uniforms, pajamas, robes and slippers, socks and underwear — and even jackets and sweaters if you can find any in the stores during this 100 degree weather.

“The tax exemption does not apply to accessories, jewelry and watches, or items that are carried, such as wallets, handbags, briefcases, and backpacks,” Rylander said.

During the first Sales Tax Holiday last year, Texas families spent more than $400 million dollars on tax-exempt clothing and shoes, saving more than $32 million in sales taxes. This year, the savings are expected to add up to $37 million.

For a list of items that are tax exempt and non-exempt during the Sales Tax Holiday, visit  the Comptroller’s website