(Seguin) — Get ready to save at the cash register this weekend. That’s because it’s tax-free weekend all across the Lone Star State.
The Texas Comptroller encourages all taxpayers to support Texas businesses while saving money on tax-free purchases of most clothing, footwear, school supplies and backpacks (sold for less than $100) during the annual Tax-Free weekend.
Qualifying items can be purchased tax free from a Texas store or from an online or catalog seller doing business in Texas.
This year’s sales tax holiday begins today and runs through midnight on Sunday.
The sales tax exemption applies only to qualifying items you buy during the sales tax holiday. Items you buy before or after the sales tax holiday do not qualify for exemption, and there is no tax refund available.
Delivery, shipping, handling, and transportation charges by the seller are part of the item’s sales price.
Since clothing, backpacks and school supplies have to be less than $100 to qualify, customers have to look at the item’s total sales price to determine if they can buy it tax free.
For example, you buy a pair of jeans for $95 with a $10 delivery charge for a total price of $105. Because the jeans’ total price is more than $100, tax is due on the entire $105 price. If a delivery charge is billed per item, and an invoice has both exempt and taxable items, only the qualifying exempt item’s delivery charge is exempt. If the delivery charge is a flat rate per package, and the amount charged is the same regardless of how many items are included in the package, the total charge can be attributed to any one of the items in the package.
This year the Texas comptroller’s office estimates shoppers will save $112 million in state and local taxes. For a complete list of items that qualify for the break at the State Comptroller’s website, visit comptroller-dot-texas-dot-gov.