Only applies to the state of Texas.
2006-08-03 07:49:08 · 19 answers · asked by Mike3st 2 in Business & Finance ➔ Taxes ➔ United States
Its no sales tax on school clothing only - any item over $100 is taxed, but clothing, shoes etc. up to $99.99 are tax free. Taxes are collected on everything else.
2006-08-03 07:53:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This is not a new law. It has been around for years. The no tax rule was made to assist with "back to school". It therefore applies to clothing and school supplies.
Don't get excited and think of applying it to other purchases like I-pods, CDs, cars, etc. Won't work.
BTW, it drives people working in retail nuts. I speak from experience.
While I know it is here in Texas, I think I've heard some other states may have it too.
2006-08-03 07:59:29 · answer #2 · answered by Big Red 2 · 0⤊ 0⤋
Texas shoppers get a break from state and local sales taxes on August 4, 5, and 6 - the state's annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.
The law exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.
A word of caution: If you sell items that do not qualify for the exemption, you may not advertise or promise that you will pay your customers' sales tax. Additionally, you are prohibited from advertising that you will not collect sales tax on items that do not qualify. You may advertise that tax is included in the sales price of the taxable items that you sell, however.
For information on how to report tax on these sales, please visit Reporting Sales Tax on Tax-Free Items or call us toll free at 1-800-252-5555.
2006-08-03 07:53:37 · answer #3 · answered by DanE 7 · 0⤊ 0⤋
Many states have a Back to school provision that allows there to be no SALES tax on many items sometime during the month of august this allows parents to buy the neccesary things like clothing and back to school supplies without breaking the bank and is also a boon to retailers this is probably what you are talking about.
2006-08-03 07:53:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
In Texas there will be what they call a sales tax free weekend beginning Friday Aug 4th until Sunday Aug 6. It means no sales tax on certain things. those things are mostly related to school for the kids
2006-08-03 07:53:39 · answer #5 · answered by jbradc69 3 · 0⤊ 0⤋
Not on everything. Mostly clothes and school supplies. It is a stupid thing that was done by the State of Texas to try to help low income homes save money. But you save more money by going to a 10% off sale.
2006-08-03 07:53:13 · answer #6 · answered by Blunt Honesty 7 · 0⤊ 0⤋
No - 13 states are offering sales tax exemption for back to school purchases from the period Aug 4-6 http://money.cnn.com/2006/07/20/pf/taxes/tax_holidays/index.htm
You can read about Texas tax holiday here http://www.window.state.tx.us/taxinfo/taxpnw/tpn2006/tpn607.html#issue3
Publication 98-490, Sales Tax Holiday, contains a list of apparel qualifying for this tax-free holiday. http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html
2006-08-03 07:52:59 · answer #7 · answered by imisidro 7 · 0⤊ 0⤋
Alot of states have tax free holidays right before school starts to encourage people to buy way more school supplies and back to school clothes than they need.
The exact dates are different with each state.
2006-08-03 07:53:11 · answer #8 · answered by DontPanic 7 · 0⤊ 0⤋
Its true in Massachusetts for August 12th and 13th. No sales tax on items under $2500 with only a few exceptions.
2006-08-03 07:53:17 · answer #9 · answered by Melissa F 5 · 0⤊ 0⤋
Its not a law,
It is a tax holiday issued by the governor. Most states have them now.
2006-08-03 07:54:21 · answer #10 · answered by billyandgaby 7 · 0⤊ 0⤋