August 6-8, 1999
Texans get a break from state and local sales taxes on Aug. 6, 7 and 8, the state's first annual tax holiday. The Texas Legislature exempted most clothing and footwear priced under $100 from sales and use taxes. That could save shoppers about $8 on every $100 they spend.
- Selected list of items
- A message from Comptroller Rylander
- Extended list of items
- Sales Tax Holiday Tax Rule
- Working for Texas Taxpayers...
on the sales tax holiday.
| TAX-FREE | TAXED |
|
Baby clothes Bathing suits Belts with attached buckles Boots--cowboy, hiking Bras Bridal apparel (not rentals) Caps/hats--baseball, fishing, golf, knitted Choir robes Coats and wraps Costumes Diapers--adult and baby Dresses Formal clothing Gloves (generally) Gym suits and uniforms Hooded shirts and hooded sweatshirts Hosiery Jackets Jeans Jerseys--baseball and football Jogging apparel, such as bras, suits and shorts Lingerie Neckwear and ties Pajamas Pants and trousers Raincoats and ponchos Robes Shirts Shoes--sandals, slippers, sneakers, tennis, walking Socks (including athletic) Shorts Suits, slacks and jackets Sweatshirts Sweat suits Sweaters Swim suits and trunks Tuxedos (not rentals) Work clothes and uniforms Underclothes |
Accessories (generally)--barrettes,
elastic pony tail holders
wallets, watches Backpacks Baseball cleats and pants Belt buckles (without belt) Boots--climbing, fishing, rubber work boots, ski, waders Cloth and lace, knitting yarns and other fabrics Dry cleaning services Football pants Golf gloves Handbags and purses Handkerchiefs Hard hats Helmets--bike, baseball, football, hockey, motorcycle, sports Ice skates Jewelry Laundering services Leather goods--except belts and wearing apparel Pads--football, hockey, soccer, elbow, knee, shoulder Personal flotation devices Rented clothing (including uniforms, formal wear, and costumes) Roller blades and skates Safety clothing, glasses Shoes--bicycle (cleated), bowling, golf |
| A Message from Comptroller Rylander |
July 12, 1999
Dear Taxpayer:
I am sending you this information to help you plan for the new sales tax holiday for clothing and footwear, which begins this year at 12:01 a.m. August 6th and ends at midnight August 8th. The tax break, which is expected to save Texas consumers $69.2 million in state sales taxes, and up to another $15.5 million in local sales taxes over the biennium, was approved by the 1999 Texas Legislature.
Cutting taxes is one of the 10 priorities I laid out for Texas in the 21st Century, so I am pleased to be able to do my part to make this tax holiday successful. I hope the enclosed rule and list will answer most of your questions about the tax holiday. I have also enclosed a flyer, which I encourage you to post in a prominent place in your store in advance of the tax holiday to prepare your customers for it.
We could not put every possible item that qualifies for the exemption on the list, so please call my office if you have questions about other items. After this year's tax holiday, we will revise the rule and list to address questions that come up during the first holiday.
Here are some highlights about the sales tax holiday:
- The tax holiday will be held every year on the first Friday, Saturday, and Sunday of August. This year, both state and local sales taxes will be waived. In future years, however, while the state sales tax will continue to be waived, cities, counties, and other local taxing entities will have the choice of participating in the holiday or continuing to impose the tax.
- Most clothing and footwear priced at less than $100 will be exempt from sales taxes. Customers will receive the break on individual items, regardless of the amount they buy. For example, sales tax is not due if a customer buys six shirts, each priced at under $100. But the full tax must be paid on a shirt if it is sold for $110; the first $99.99 cannot be exempted.
- Clothing and footwear that are used primarily for athletic activities or for protective wear are not eligible for the exemption. Customers buying golf cleats and football pads, for instance, must pay sales taxes. But the tax will be waived on athletic wear that is commonly worn other than while participating in an athletic activity, such as tennis shoes, baseball caps, and jogging suits.
- Also not included in the sales tax holiday are accessories, such as jewelry and watches; items that are carried rather than worn, including handbags, briefcases, and wallets; and clothing rentals, such as formal wear and costumes rentals; and repairs and alterations.
I hope you will find this information helpful. If you have questions about the sales tax holiday, please call my toll-free tax assistance line at 1-800-252-5555.
Sincerely,
Carole Keeton Rylander
Comptroller of Public Accounts