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August 2, 2013

The tax man goeth, but briefly

Annual sales tax holiday set for Aug. 9-11

Athens — Shoppers will be able to save eight percent on qualified items during the 2013 Tax Holiday on Aug.  9 through Aug. 11. The Tax Holiday starts at 12:01 a.m. on Aug. 9 and concludes at 11:59 p.m. on Aug. 11. The dates for the Tax Holiday are set by the Texas Legislature.

Texas has been offering a Tax Holiday since 1999. This year it is one of 17 states offering the tax-free holiday. As in previous years, the law exempts most clothing, footwear, school supplies and backpacks priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.

According to the Texas Comptroller’s website, 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.

Tax will be due on such items as accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items.

Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales-tax holiday. The comptroller’s website defines a backpack  as  a pack with straps one wears on the back.

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.

If a person places their merchandise on layaway during the Tax Holiday, the exemption does apply, or if a final payment is made during the Tax Holiday, you may still qualify for the exception.

More information about what is exempt from taxes during the Texas Tax Holiday can be found at http://www.window.state.tx.us/taxinfo/taxpubs/taxholiday/d/.

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