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Posts published in July 2003

Bailey notes sales tax holiday Aug. 1 thru Aug. 3

State Representative Kevin Bailey, D- Houston, reminds residents of North Houston that they will be able to buy clothes and shoes tax-free during the third annual back to school Sales Tax Holiday. This year’s sales tax holiday begins at 12:01 a.m. on Friday, August 1, and ends at midnight on Sunday, August 3.

State Representative Kevin Bailey said, “In these difficult financial times with high unemployment, I’m pleased that the State of Texas was able to continue our sales tax-free holiday for back to school shopping.” He went on to say, “It is fortunate that the taxpayers who claimed the Child Tax Credit last year are getting checks in the mail just prior to the Tax Holiday weekend so they can be prepared to take full advantage of the tax savings for back to school shopping.”

The Texas Legislature created the tax holiday to coincide with back-to-school shopping so that families will be able to purchase shoes and clothes for their children tax-free. Additionally, apparel items for adults will also be free from the state 6.25% tax. “This is a great opportunity,” said Bailey, “for families with young children preparing to go back to school and yet it’s an opportunity for both young and old alike. We are all able to benefit from the tax-free shopping days.

Almost all clothing and shoes costing less than $100 per item are included in the sales tax holiday. Consumers receive the break on individual items, regardless of the amount they buy.

For example, sales tax is not due if a consumer buys three pairs of shoes each priced less than $100. But sales tax must be paid if a pair of shoes is priced at more than $100.

Rep. Bailey explained that the sales tax exemption on shoes and clothing also includes baby clothes, coats and wraps, diapers-adult and baby, hosiery, pajamas, raincoats and work clothes and uniforms. The sales tax holiday does not cover accessories, backpacks, handbags, jewelry, ot specialty sportswear items.

Many area merchants are planning extended business hours to allow shoppers ample opportunity to take advantage of the sales tax holiday. According to Rep. Bailey, in addition to the holiday on the state’s sales tax of 6.25% most communities have chosen to waive local sales taxes, which will save taxpayers an additional 2% in most areas. Overall, the sales tax holiday will save Texas consumers millions in state and local taxes.