July 2009    • www.salestaxtexas.com

Texas Sales Tax Holiday

Practitioners are reminded to help make your clients aware that the annual Texas Sales Tax Holiday is approaching. On August 21–23, Texas taxpayers may purchase most clothing, footwear and backpacks priced under $100 tax-free.

School Supplies Added!

House Bill 1801 expanded the list of items qualifying for exemption. Effective this year, the following items are exempt from tax when purchased for use by a student in an elementary or secondary school:

  • Binders
  • Calculators
  • Crayons
  • Most Folders
  • Highlighters
  • Legal pads
  • Notebooks
  • Most paper
  • Pencils
  • Pens
  • Rulers
  • Scissors

These are only the most popular items newly qualified for the exemption.

No exemption certificate is required — with one exception. If the purchaser is buying the supplies under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. “Under a business account” means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.

About Sales Tax Specialists of Texas

Sales Tax Specialists of Texas provides sales tax audit defense services to all taxpayers and sales tax refund reviews to taxpayers in the following industries:

  • Manufacturing
  • Residential Communities
    (Apartments and Nursing Homes)
  • Restaurants
  • New Construction
    (Homebuilders and Non-residential)

  • Oil & Gas
  • Printers
  • Agriculture
  • Golf Courses
  • Janitorial Companies

To learn more about Sales Tax Specialists of Texas, visit our website at www.salestaxtexas.com.

To request a consultation, click here to email Sales Tax Specialists of Texas.

Texas Sales Tax Update is published on an as-appropriate basis and is a service of Sales Tax Specialists of Texas.