Sales Tax Holiday Coming on August 21 - 23, 2009 - Kingwood

As in previous years, the law exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend. Backpacks under $100 and used by elementary and secondary students are also exempt. A backpack is a pack with straps one wears on the back. The exemption during the sales tax holiday 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 - New in 2009!

The 81st Texas Legislature recently passed HB 1801 (2009) expanding the list of items qualifying for exemption from Texas state and local sales and use taxes during the annual sales tax holiday in August. 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 following is an all-inclusive list of qualifying school supplies (if priced less than $100):

   1. Binders
   2. Book bags
   3. Calculators
   4. Cellophane tape
   5. Blackboard chalk
   6. Compasses
   7. Composition books
   8. Crayons
   9. Erasers
  10. Folders; expandable, pocket, plastic, and manila
  11. Glue, paste and paste sticks
  12. Highlighters
  13. Index cards
  14. Index card boxes
  15. Legal pads

  16. Lunch boxes
  17. Markers
  18. Notebooks
  19. Paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila     paper, colored paper, poster board, and construction paper
  20. Pencil boxes and other school supply boxes
  21. Pencil sharpeners
  22. Pencils
  23. Pens
  24. Protractors
  25. Rulers
  26. Scissors
  27. Writing tablets

No exemption certificate is required - with one exception. If the purchaser is buying the supplies 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.

List of Clothing, Footwear and Backpacks, and Their Exempton Status

    TAX-FREE

    * 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

     TAXED 

    * 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,