TEXAS (KETK) — Texas will have its sales tax holiday this weekend, Aug. 5 through Aug. 7, the Comptroller’s Office announced.
Taxpayers are highly encouraged to take part in this tax-free weekend and support Texas businesses while saving money on purchases that would otherwise be taxed, such as clothing, footwear, school supplies and backpacks. Qualifying items can be purchased tax free from any Texas store or from an online or catalog seller doing business in the state.
While most items will be tax-exempt, there will still be a select few which are not. For example, items you buy before or after the sales tax holiday do not qualify for exemption, and tax refunds will not be available.
Qualifying items include:
School supplies purchased under a business account can also be tax free, so long as an exemption certificate is provided. According to the comptroller, a business account means you are:
- Using a business credit card or business check and not a personal credit card or personal check
- Being billed under a business account maintained by the seller
- Using a business membership at a membership-based retailer
Layaways are also tax exempt for qualifying items when you:
- Make the final payment on an item already on layaway
- Choose an item and place it on layaway
Finally, special orders can be tax free on qualifying items that need to be ordered, which will not arrive until after the tax free holiday. However, rain check purchases will be taxable. If an item is ordered with a rain check and not paid for during the sales tax holiday, then it will be taxable.
Furthermore, additional charges such as delivery, shipping, handling and transportation are officially considered part of the sales price for a given item, meaning that if these added costs bring the total of the item over $100, it will then be taxable.
If you are charged tax on a qualifying item during the tax free period, you may ask the seller for a refund for the tax paid. The seller will then either grant the refund or provide you with a Right to Refund form, which allows the purchaser to file the refund claim directly with the Comptroller’s office.