(Seguin) — Get ready to save money at the checkout this weekend because it’s tax-free weekend across the Lone Star State.
The Texas Auditor General is urging all taxpayers to support Texas businesses while saving money on tax-free purchases of most clothing, shoes, school supplies and backpacks (for less than $100) during the annual Tax-Free Weekend.
Qualified items can be purchased tax-free at a Texas store or from an online or catalog retailer doing business in Texas.
This year’s VAT exemption begins today and lasts until midnight on Sunday.
The VAT exemption only applies to certain items that you purchase during the VAT-free period. Items that you purchase before or after the VAT-free period are not exempt from tax and no tax refund is possible.
The seller’s delivery, shipping, handling and transportation costs are part of the selling price of the item.
Since clothing, backpacks and school supplies must cost less than $100 to qualify for the tax, customers must check the total retail price of the item to determine if they can purchase it tax-free.
For example, you buy a pair of jeans for $95 with $10 shipping for a total of $105. Since the total price of the jeans is more than $100, the entire $105 price is subject to tax. If shipping is charged per item and an invoice contains both tax-free and taxable items, only the shipping cost of that tax-free item is tax-free. If shipping is charged at a flat rate per package and the amount charged is the same regardless of the number of items in the package, the total amount can be allocated to each of the items in the package.
This year, the Texas Office of the Comptroller estimates that buyers will save $112 million in state and local taxes. For a complete list of items eligible for the tax reduction, visit the Texas Office of the Comptroller’s website at comptroller-dot-texas-dot-gov.
