Tax holiday saves Texans $37 million

AUSTIN – Texas Comptroller Carole Keeton Rylander says families saved an estimated $37 million during Texas’ second annual Sales Tax Holiday, held August 4-6.

The savings include $29.2 million in state sales tax and $7.8 million in local sales taxes.

“My prediction that the second Sales Tax Holiday would be bigger and better than the first was right on the money,” Rylander said. “This year, shoppers saved $4.4 million more than they saved during the 1999 Tax Holiday.

“This year, shoppers were familiar with the Sales Tax Holiday, they knew what items were tax-exempt, and they planned ahead to take full advantage of this much-deserved tax break,” Comptroller Rylander said.

The Comptroller estimates shoppers purchased about $467 million in tax-free clothes and shoes during the three-day shopping spree.

During the Holiday, no state or local sales taxes are charged on most clothing and footwear priced at less than $100. The event is timed to give families a financial break during the back-to-school shopping period.

During the first two Sales Tax Holidays, taxpayers saved an estimated $69.6 million in state and local sales taxes.

“The Sales Tax Holiday is a tremendous hit with hard-working moms and dads, but I want to make it even better,” Rylander said.

The Comptroller has instructed her staff to study the impact of extending the Sales Tax Holiday for more than three days and adding more items to the tax-exempt list.

“I want to make the Sales Tax Holiday as beneficial to Texas families as possible,” she said. “The tax burden on working families is too high, and the Holiday provides Texans with some much-needed relief.”