Tax Free Weekend is a big relief for those who find themselves shopping for back-to-school outfits and gear.
Clothing, footwear, school supplies and backpacks priced under $100 are eligible for the tax savings, which could save shoppers about $8 on every $100 they spend.
Clothing and Footwear:
The exemption applies to each eligible item that sells for less than $100. Now, don??t think that you have to mentally tally your total while you shop. Each item that??s priced below $100 is eligible to be tax-free, so even if you buy three $50 pair of jeans (or shorts or shoes or shirts) and your total is $150, you??re not going to pay the tax for the items because each item was priced below $100. However, please note that if you buy a $110 pair of jeans, you??re paying tax on all $110. You don??t get the first $100 of taxes free.
But, please don??t be tempted to buy bling on Tax Free Weekend. Or, buy it if you like, but be prepared to pay the taxes on items like handbags, purses, luggage, umbrellas, wallets, watches and jewelry.
Let??s make it simple. Backpacks. Not luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or whatever a framed backpack is. Backpacks (not a suitcase) with wheels are exempt.
School supplies are pretty self explanatory, and you??re not likely to catch much grief on buying them tax-free this weekend, but please don??t charge them to a business account. You??ll trigger yourself some headache at the counter?|and make those in line behind you groan.
Frequently asked questions and answers can be found at http://www.window.state.tx.us/taxinfo/taxpubs/taxholiday/m/