This year’s Sales Tax Holiday is Friday -Sunday in Texas and Oklahoma.
As in previous years, Texas exempts most clothing, footwear, school supplies and backpacks priced less than $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.
Oklahoma exempts clothing and footwear priced less than $100.
All sales of qualifying items made during the holiday period qualify for the exemption, including items sold online, or by telephone or mail. Shoppers can use layaway plans to take advantage of the sales tax holiday.
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 $99.99.
The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $99.99. 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 priced less than $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.
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
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.
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).
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).
What items are exempt from sales tax during the sales tax holiday?
Sales of any article of clothing or footwear designed to be worn on or about the human body and the sales price of the article is less than one hundred dollars ($100) are exempt. This does not apply to the sale of any accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear.
What items are not exempt from sales tax during the sales tax holiday?
Any special clothing or footwear that is primarily designed for an athletic activity or protective use that is not normally worn except when used for athletic activity or protective use for which it is designed. Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches, and other similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing are considered taxable. The rental of clothing or footwear is also taxable.
. I am ordering items online. Will these qualify for the sales tax holiday?
Eligible items sold to purchasers by mail, telephone, email or internet shall qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
Is there a listing of items that are exempt?
“Clothing” means all human wearing apparel suitable for general use. A nonexclusive list of clothing that is exempt from sales and use taxes follows:
• Aprons, household and shop
• Athletic supporters
• Baby receiving blankets
• Bathing suits and caps
• Beach capes and coats
• Belts and suspenders
• Coats and jackets
• Diapers, children and adult, including disposable diapers
• Ear muffs
• Formal wear
• Garters and garter belts
• Gloves and mittens for general use
• Hats and caps
• Insoles for shoes
• Lab coats
• Rubber pants
• Shoes and shoe laces
• Socks and stockings
• Steel toed shoes
• Uniforms, athletic and non-athletic
• Wedding apparel