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Texas' Sales Tax Holiday this weekend, August 7-9

By: Woodlands Online
| Published 08/05/2020

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THE WOODLANDS, TX – Texas' sales tax holiday is this weekend, August 7-9, 2020. While you're out shopping for back-to-school supplies and clothing, the Texas Comptroller reminds you to practice social distancing and wearing a mask, while supporting Texas businesses. The sales tax exemption only applies to qualifying items that you purchase during the sales tax holiday.

Due to COVID-19, and to promote social distancing, the Texas Comptroller's office urges consumers to take advantage of online and telephone orders. In order to take advantage of the sales tax holiday for online, telephone or mail-in orders, the item must:

• be delivered and paid for during the sales tax holiday weekend; or
• be ordered and paid for, and the seller accepts the order during the exemption period, even if the delivery is made after the exemption period ends.

For in-store purchases, only qualifying items are eligible during the sales tax holiday. Items that are included in the sales tax holiday include:

• Most clothing items priced at under $100
• Most school supplies priced at under $100

For a complete list of approved clothing, footwear and other items, please click here.

For a complete list of approved school supply items, please click here.

According to the Texas Comptroller's website, there are other criteria for school supplies purchased using a business account, layaways and special orders or rain checks.

If you buy qualifying school supplies under a business account, you must give a properly completed Form 01-339, Texas Sales and Use Tax Exemption Certificate (PDF), to the seller.

'Under a business account' means you are:
• using a business credit card or business check and not a personal credit card or personal check;
• being billed under a business account maintained by the seller; or
• using a business membership at a membership-based retailer.

Layaways: During the sales tax holiday, you can buy qualifying items tax free when you:
• make the final payment on an item already on layaway; or
• choose an item and place it on layaway

Special orders and rain checks: During the sales tax holiday, you can buy qualifying items tax free, even if the items have to be ordered.

For example, if you pay for an $80 shirt that must be special-ordered or is on back order, and you pick up the shirt after the sales tax holiday, then it still qualifies for the exemption.

If you buy the qualifying item after the sales tax holiday, a special order made or rain check given during the sales tax holiday does not qualify the item for exemption.

For example, if you place a special order (or receive a rain check) to buy a $50 shirt and do not pay for the shirt during the sales tax holiday, then the shirt is taxable.

For more information, please visit the Texas Comptroller's website.

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