Tax Free Weekend applies to most clothing, footwear, school supplies and backpacks sold for under $100 purchased in-store or online from Texas retailers. “The Comptroller encourages all taxpayers to support Texas businesses while saving money with tax free purchases,” the press release stated.
Eligible items include most clothing and footwear, as long as each item costs less than $100. For example, two shirts at $80 each would both be eligible for the tax exemption, even if the total purchase was $160. However, items such as clothing subscription boxes, specially designed athletic equipment, and protective clothing are not eligible.
Cloth and disposable masks are also exempt from the tax, but industrial or medical masks are not. Backpacks under $100, including wheeled and messenger bags, are exempt from the tax, with a limit of 10 per purchase.
Certain school supplies under $100 qualify for the exemption without a tax exemption certificate, but if you purchase using a business account, you must have a completed Texas Sales and Use Tax Exemption Certificate.
Layaway items, special orders and rain checks also qualify if final payment is made during the tax-free period. Online and phone orders qualify if the purchase is completed within the specified date.
Additional charges, such as shipping and handling, are part of the selling price of the item and must be taken into account when determining eligibility. For example, a pair of jeans that costs $95 plus $10 in shipping is taxable because the total exceeds $100.
Shoppers who paid sales tax on eligible items can request a refund from the merchant or file a claim with the Comptroller’s Office using Form 00-985.
Sellers must report exempt sales on their Texas gross sales tax return to ensure sales tax collected is remitted to the Comptroller’s Office. Advertisements for non-qualified items must state that the seller is responsible for sales tax and must not imply an exemption.
For more information, see Regulation 3.365, “Sales Tax Exempt Clothing, Shoes, and School Supplies.”
