Shoppers ready to cash in on savings during sales tax holiday

Texas Comptroller Carole Keeton Rylander reminds Texas families that most clothes and shoes can be purchased tax-free during the upcoming Sales Tax Holiday, Aug. 3-5. “This is the one weekend when hard-working Texans can keep their dollars in their pockets for their family priorities,” Rylander said. “No state or local sales tax will be charged on clothes and shoes priced under $100,” Comptroller Rylander said. “This well-deserved tax break for hard-working Texas families applies to new school clothes for the kids and work clothes for mom and dad. Uniforms for school or work can also be purchased tax-free. “I predict the third annual Sales Tax Holiday will be the best yet, saving families $39.6 million in state and local sales taxes,” Comptroller Rylander said. In 2000, shoppers saved $37 million in sales taxes and in 1999 they saved $32.6 million during the Sales Tax Holiday. “The slowing Texas economy means many families are spending a bit more cautiously these days,” Comptroller Rylander said. “The Sales Tax Holiday is an opportunity to make the dollars go farther, and I expect Texans to take full advantage of it.” The Sales Tax Holiday applies to most clothing and footwear priced under $100. The tax break does not apply to accessories, jewelry, watches, handbags, wallets and briefcases. The Sales Tax Holiday also does not include backpacks and school supplies, despite Comptroller Rylander’s strong efforts to persuade the Legislature to add those items to the list, along with sewing supplies and safety equipment, such as bicycle helmets and car safety seats. “The Legislature did not make the Sales Tax Holiday a priority,” Comptroller Rylander said. “Next session, I will again urge the Legislature to make Texas families and the Sales Tax Holiday expansion a top priority.” For more information about the Sales Tax Holiday and a list of exempt and non-exempt items, see the Comptroller’s web site at www. window.state.tx.us or call the tax assistance hotline at 1-800-252-5555.

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