Texas. Clothing and Footwear Sales Tax Holiday August
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- Lynette Austin
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1 Texas Clothing and Footwear Sales Tax Holiday August Texas is having its annual sales tax holiday on sales (not rentals) of clothing and footwear priced under $ Effective this year, in addition to clothes, footwear and some backpacks, Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school. The holiday will take place from Friday, August 7, 2015 at 12:01am through Sunday, August 9, 2015 at midnight. The holiday will apply to all state and local sales taxes. Clothing and Footwear Retailers are not required to collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. Exemption certificates are not required. The exemption applies to each eligible item that sells for less than $100, regardless of how many items are sold on the same invoice to a customer. For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $ The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $ For example, if a customer purchases a pair of pants that costs $110, then sales tax is due on the entire $110. The exemption also does not apply to sales of special clothing or footwear that the manufacturer primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which the manufacturer designed the article. For example, golf cleats and football pads are primarily designed for athletic activity or protective use and are not normally worn except for those purposes; they do not qualify for the exemption. Tennis shoes, jogging suits and swimsuits, however, are commonly worn for purposes other than athletic activity and thus qualify for the exemption. The sales tax holiday exemption does not extend to rental of clothing or footwear; nor does it apply to alteration (including embroidery) or cleaning services performed on clothes and shoes. Additionally, tax is due on sales of accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items. Backpacks Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday. A backpack is a pack with straps one wears on the back. The exemption includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags. The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller. School Supplies Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school. Purchases of School Supplies Using a Business Account
2 Persons buying qualifying school supplies during the holiday are not required to provide an exemption certificate with one exception. If the purchaser is buying the items under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. "Under a business account" means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based. Layaways A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchandise on layaway during the holiday or makes the final payment during the holiday. See Rule 3.365(i). Rainchecks Eligible items that customers purchase during the holiday with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain check is presented at the time of purchase. See Rule 3.365(j). Prohibited Advertising A word of caution: If you sell items that do not qualify for the exemption, you may not advertise or promise that you will pay your customers' sales tax. You are prohibited from advertising that you will not collect sales tax on items that do not qualify, but you may advertise that tax is included in the sales price of the taxable items that you sell. See Tax Code Section for more information. Sales Tax Holiday - Reporting Tax If you sold qualifying clothing or footwear tax-free during this year's sales tax holiday, don't include receipts from those sales in Taxable Sales (Item 2) of your sales tax return. If you were not required to and did not charge the sales tax on certain clothing and footwear, you are not required to remit any tax on these items. If you collected tax, however, then you must send it to the state. Exempt clothing and footwear items include: adult diapers; household aprons; athletic socks; baby bibs; baby clothes; baby diapers (cloth or disposable); backpacks for use by elementary and secondary students; baseball caps; baseball jerseys; belts w/attached buckles; blouses; general purpose boots; cowboy boots; hiking boots; bow ties; bowling shirts; bras; camp clothes; caps (baseball, fishing, golf); chef uniforms; children s novelty costumes; clerical vestments; coats and wraps; coveralls; dresses; employee uniforms; fishing vests (non-flotation); football jerseys; gloves (generally); dress gloves; leather gloves; golf dresses; golf jackets and windbreakers; golf shirts; golf skirts; graduation caps and gowns; gym suits and uniforms; hats; hooded shirts and hooded sweatshirts; hosiery; hunting vests; jackets; jeans; jogging apparel; knitted caps or hats; leg warmers; leotards and tights; neckwear and ties; nightgowns and nightshirts; painter pants; pajamas; pants; panty hose; raincoats; ponchos; rain hats; religious clothing; robes; safety shoes (adaptable for street wear); scarves; scout uniforms; shawls; wraps; shirts; shoes (sandals, slippers, sneakers, tennis, walking); boat shoes; cross trainers; dress shoes; flip-flops; jellies; running shoes (w/out cleats); safety shoes (suitable for everyday use); shorts; skirts; sleepwear; slips; soccer socks; socks; suits, slacks, and jackets; suspenders; sweatshirt; sweat suits; sweaters; swimsuits; tennis dresses; tennis shorts; tennis skirts; tights; trousers; underclothes; underpants; undershirts; uniforms (school, work, nurse, waitress, military, postal, fire, police); veils; vests (generally); work clothes; and workout clothes.
3 Specifically taxed clothing and footwear items include: Accessories (generally) barrettes, bobby pins, briefcases, elastic ponytail holders, hair bows, hair clips, headbands, key cases, purses, wallets, watches, and watch bands; Alterations or clothing repair; Baseball cleats, gloves, and pants; Bathing caps; Belt buckles (without belt); Belts for weight-lifting; Bicycle shoes (cleated); Boots climbing, fishing, overshoes, galoshes, rubber work boots, ski, waders; Bowling shoes (rented and sold); Buttons and zippers; Chest protectors; Cloth and lace, knitting yarns, and other fabrics; Clothing repair items such as thread, buttons, tapes, and iron-on patches; corsages and boutonnieres; Dry cleaning services; Football pants; Gloves baseball, batting, bicycle, garden, golf, hockey, rubber, surgical, tennis, work; Goggles; Golf purses and shoes; Handbags and purses; Handkerchiefs; Hard hats; Helmets bike, baseball, football, hockey, motorcycle, sports; Ice skates; Insoles; Jewelry; Laundering services; Luggage; Pads football, hockey, soccer, elbow, knee, shoulder, sports; Personal flotation devices; Paint or dust respirators and incidental supplies; Pocket squares; Protective gloves and masks; Rented clothing (including uniforms, formal wear, and costumes); Ribbon; Roller blades and skates; Safety clothing, glasses and shoes; Sewing patterns; Shin guards and padding; Shoe inserts; Shoelaces; Shoes - ballets, bicycle (cleated), football, jazz and dance, overshoes, fishing boots, soccer (cleated), tap dance, and any other cleated or track shoes; Shoe shines; Shoe repairs; Shoulder pads (for dresses, jackets, etc); Shower caps; Ice and roller skates; Ski boots, suits, and vests; Sports helmets; Sunglasses (except prescription); Sweatbands (arm, wrist, head); Swim masks, goggles, and fins; Umbrellas; Vests - bullet-proof, flotation, scuba, and water-ski vests; Weight-lifting belts; Wet and dry suits; and Wrist bands. Per official notice from the Texas Comptroller s Office exempt school supplies are specifically limited to: Binders; Book bags; Calculators; Cellophane tape; Blackboard chalk; Compasses; Composition books; Crayons; Erasers; Folders (expandable, pocket, plastic, and manila); Glue, paste, and paste sticks; Highlighters; Index cards; Index card boxes; Legal pads; Lunch Boxes; Markers (including dry-erase markers); Notebooks; Paper (loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper); Pencil boxes and other school supply boxes; Pencil sharpeners; Pencils; Pens; Protractors; Rulers; Scissors; Writing tablets. Summary of affected Good/Service Codes: Clothing and Footwear: Men's coats made of cotton; of a weight per garment of <= 1 kg Boys' coats made of cotton; of a weight per garment of <= 1 kg Men's coats made of man-made fibres, of a weight per garment of <= 1 kg Boys' coats made of man-made fibres, of a weight per garment of <= 1 kg Women's coats made of man-made fibres, of a weight per garment of <= 1 kg Girls' coats made of man-made fibres, of a weight per garment of <= 1 kg Women's coats made of cotton, of a weight per garment of <= 1 kg Girls' coats made of cotton, of a weight per garment of <= 1 kg Men's shirts made of cotton Boys' shirts made of cotton Men's shirts made of man-made fibres Boys' shirts made of man-made fibres Women's blouses, shirts and shirt-blouses made of cotton Girls' blouses, shirts and shirt-blouses made of cotton Women's blouses, shirts and shirt-blouses made of man-made fibres Girls' blouses, shirts and shirt-blouses made of man-made fibres
4 Disposable Baby Diapers General Footwear Children's Footwear Safety Clothing (dual purpose can be used as safety or regular clothing) Safety Footwear (dual purpose can be used as safety or regular footwear) Dual Purpose Athletic Apparel Dual Purpose Athletic footwear General Clothing Incontinence briefs Bandanas (neckwear or headwear for men and women) Gloves formal/dress Backpacks for student or for school use Book bags Dress shields Bibs (for children) Children s clothing Formal wear (Not including rentals) Swimwear Children s costumes without masks (not including rentals) Children s costumes with masks (not including rentals) Fur coats, hats, wraps (not fur trimmed) Ties (neckwear for men (excluding formal wear)) Belts Suspenders Hats (Not including formal hats) Messenger bags Aprons (household) Gloves - casual Employee Uniforms (non-safety) Scout Uniforms (qualifying as children's clothing in the relevant jurisdictions) School Uniforms (qualifying as children's clothing in the relevant jurisdictions) Chef Uniforms Fishing vests (non-flotation) Scarves Hunting Vests Lab Coats Children's Hat (sizes up to and including girls' size 22 & boys' size 7 1/8) Children's Gloves - Formal/Dress (sizes up to and including girls' & boys' size 7) Children's Gloves - Casual (sizes up to and including girls' and boys' size 7) Children's Belts (size qualifying as children's clothing in relevant jurisdictions) Baby bunting bags (garment designed to cover a baby including arms and legs) Cloth diapers Rubber Pants (for children) Children's swimwear (size qualifying as children's clothing in the relevant jurisdiction) Nursing Bras Pads for nursing bras Children s scarves - not sold as part of a uniform Children's dual purpose athletic footwear Children's dual purpose athletic clothing Clothing made from artificial/synthetic fur where the fur is the component material of chief value
5 School Supplies: Pens, including felt, ballpoint, fountain, & refills, but not highlighters or markers Pencils Erasers Crayons Notebooks Notebook paper Legal pads Composition books Poster paper Scissors Cellophane tape Glue paste Rulers Protractors Compasses Calculators Binders Blackboard chalk Book bags Folders (expandable, pocket, plastic, and manila) Index card boxes Index cards Lunch Boxes Markers Paper (loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper) Pencil boxes and other school supply boxes Pencil sharpeners Writing tablets Glue (stick and liquid) Paste sticks Highlighters Copy paper Ball-point pens with body or cap of precious metal or rolled precious metal (excl. ballpoint pens with liquid ink) Ball-point pens with replaceable refill (excl. with body or cap of precious metal or rolled precious metal, and ballpoint pens with liquid ink) Ball-point pens (excl. with replaceable refill and with liquid ink) Fountain pens, stylograph pens and other pens, with body or cap of precious metal or rolled precious metal (excl. Indian ink drawing pens) Fountain pens, stylograph pens and other pens (excl. with body or cap of precious metal or rolled precious metal, and Indian ink drawing pens) Pencils, with leads of graphite encased in a rigid sheath Construction Paper Electronic calculators <2 kg - 10 Pack
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