Tax-free holiday helps shoppers

By David Stone, editor@marlindemocrat.com

Back-to-school shoppers in Texas will get a break from state and local sales taxes on Aug. 15-17 - the state's 10th annual sales-tax holiday. And with the costs of gas, groceries and other goods significantly higher than a year ago, this year's holiday will provide much-needed relief to shoppers on a budget.

Shoppers could save about $8 on every $100 they spend. Many retailers, such as Lauren's in Marlin, also will offer deep discounts on some items to bring in shoppers.

State Comptroller Susan Combs said Texas shoppers will save millions during the state sales-tax holiday.

"We estimate shoppers will save about $54 million in sales, including about $42.1 million in state sales taxes," she said.

During the sales-tax holiday, most clothing and shoes priced less than $100 can be purchased tax free. The tax break applies to both children's and adults' apparel, Combs said.

Backpacks priced under $100 and used by elementary and secondary students will exempt during the holiday, she said. Backpacks with wheels also will qualify as long as they can be worn on the back like a traditional backpack or messenger bag.

Combs said the exemption does not include items such as luggage, briefcases, athletic and gym bags, computer bags, purses or framed backpacks.

Lay-away plans can be used at many stores, allowing shoppers to take maximum advantage of the tax savings, she said.

Combs said the shoppers' gain is not expected to have a significant impact on sales-tax collections.

"Though the national economy has slowed, Texas' sales-tax revenue continues to grow at a healthy pace," she said. "Through June,, state sales-tax collections for fiscal 2008 were up 6.1 percent compared to the same point in fiscal 2007. Cities' and counties' year-to-date sales-tax revenues were up an average of 5.1 percent."

The following items may be purchased tax-free during the sales-tax holiday:

* Baby clothes

* Backpacks for use by elementary and secondary students

* Belts with attached buckles

* Boots - cowboy, hiking

* Caps/hats - baseball, fishing, golf, knitted

* Coats and wraps

* Diapers - adult and baby

* Dresses

* Gloves (generally)

* Gym suits and uniforms

* Hooded shirts and hooded sweatshirts

* Hosiery

* Jackets

* Jeans

* Jerseys - baseball and football

* Jogging apparel

* 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

* Swimsuits

* Underclothes

* Work clothes and uniforms

The following items are not tax-exempt during Texas' sales-tax holiday:

* Accessories (generally) - barrettes, elastic ponytail holders, wallets, watches

* Backpacks - unless for use by elementary and secondary students

* Baseball cleats and pants

* Belt buckles (without belt)

* Boots - climbing, fishing, rubber work boots, ski, waders

* Buttons and zippers

* 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 with buckles 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