Texas sales tax holiday for back- to- school shopping is Aug. 5-7

Ready to head to the store to buy back-to-school backpacks, tennis shoes and clothes for your child?

Might want to wait a little bit — and save a few bucks.

Texas’ annual back to school sales tax holiday runs Aug. 5-7.

During that time, most clothes, shoes, school supplies and other school items that each cost less than $100 will be tax-free, saving Texans about $8 on every $100 spent.

“We hope folks take advantage of this opportunity to get the supplies they need and save some money in the process,” Texas Comptroller Glenn Hegar said. “As the father of three young children, I know how these expenses can add up.”

Lawmakers began this sales tax holiday — which estimates show may save Texas shoppers about $92 million in state and local sales taxes this year — back in 1999, under then-Gov. George W. Bush.

“People are talking about tax cuts in Austin, and I think that's very healthy,” Bush said at the time.

Supporters say

Stores and malls now prepare for this annual shopping event, often offering their own sales at the same time so shoppers can get the biggest bang for their buck.

This comes at a time when shoppers plan to spend around $273 per child when doing back-to-school shopping, which is up from the $246 they planned to spend last year, according to a new study by RetailMeNot, an online marketplace.

And most families are looking for deals.

“Deals give consumers the added confidence to splurge on the things they need and want,” said Marissa Tarleton, chief marketing officer of North America for RetailMeNot, Inc. “What’s most interesting to me is that even high earners are deal seekers.

“Everyone is looking for the most value when spending their hard-earned dollars, and when they find it, they tend to spend more.”

Critics say

Critics note that Texas is among more than a dozen states temporarily setting aside sales taxes to help taxpayers buying back-to-school supplies, something they call a gimmick.

“Sales tax holidays are political gimmicks that fail to deliver on their grand promises,” according to a recent memo by Dylan Grundman with the Institute on Taxation and Economic Policy.

Grundman said the holiday is poorly targeted, helps higher-income households, doesn’t boost sales and leads to revenue loss for participating states.

“Sales tax holidays may give consumers a short break from sales taxes on certain items, but they don’t change regressive state tax systems,” Grundman said. “Policymakers should instead consider policies that make our tax system fairer, such as a low-income refundable sales tax credit or a state earned-income tax credit.”

Shopping deals

Among the items shoppers can save sales tax on Aug. 5-7:

▪ Shoes and clothes that cost less than $100 per item. This includes scarves, scout uniforms, golf shirts, hats, jackets, jeans, athletic socks, shoes, ties, pants, pajamas, skirts, slips, bras, suits, suspenders, robes, undershirts and gloves, to name a few.

If a shirt, for example, costs $110, the buyer would pay all of the sales tax for that purchase. But if a person buys two pair of pants at $70 each, that totals $140, and no sales tax would be due.

▪ Backpacks — including the kind with wheels, as long as they can be worn on the back just as a traditional backpack can be worn — that cost less than $100;

▪ School supplies, as long as each item is priced under $100, for students in elementary or secondary schools.

“This event provides Texas families with some relief from state and local sales taxes,” Hegar said.

This story was originally published July 23, 2016 at 4:45 PM with the headline "Texas sales tax holiday for back- to- school shopping is Aug. 5-7."