Residents across Texas may be excited to hear that the annual state sales tax holiday will be returning in 2014. It’s not often that tax news comes with the opportunity for savings, which makes the weekend-long state tax change a bit of positive financial news for many families.
As with previous years, the state sales tax holiday is timed just prior to school, allowing parents to stock up on specific school supplies and clothing for kids who are headed back to the classroom. The tax-free weekend will be held Aug. 8 through 10.
The sales tax is only waived on certain items. Goods that cost under $100 and are in approved categories such as shoes, backpacks, clothing and school supplies quality for sales-tax-free purchasing over the weekend. Based on state sales tax percentages, shoppers can expect to save around $8 for every $100 they spend.
Susan Combs, the Texas Comptroller, said one reason for the tax is to assist families with the expense of returning to the school year. School supply lists can be long, and families often spend hundreds in the months prior to schools. Families with multiple children may spend much more. Combs says she hopes the tax holiday provides some assistance for those shopping.
The tax holiday has occurred since 1999, and estimates are that shoppers could save as much as $82.7 million in local and state taxes over the weekend. It’s not everyday individuals can say they saved in taxes by shopping, and tax savings aren’t always so pleasant. As the sales-tax holiday approaches, individuals and businesses should continue to be mindful of other tax obligations and seek assistance when tax bills or concerns threaten livelihoods.
Source: Cleveland Advocate, “Texas sales tax holiday is Aug. 8 – 10,” July 11, 2014.