Sales, Use and International Tax Articles

Sales, Use and International Tax Activity Update - July 2010

U.S. Swept by Torrential Tax Holidays for Back to School - Texas

The 81st Texas Legislature 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. Texas shoppers get a break from state and local sales taxes on August 20, 21 and 22 - the state's annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.

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.

Tax Policy Newsletter, Texas, June 2010

The Tax Policy Newsletter can be viewed on the Texas Comptroller of Public Accounts Web site.

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