From the Desk of Glenn Hegar:A quarter century of tax savings
August 2024
While turning 25 this year, Texas’ sales tax holiday has not lost any of its luster. The tax-exempt weekend has saved Texans millions of dollars annually on clothing, footwear and school supplies heading into the school year.
From its inception in 1999, when the Comptroller’s office estimated $32.6 million in combined state and local sales tax savings, Texas’ oldest sales tax holiday has saved shoppers an estimated $1.8 billion to date on qualified items priced below $100.
That includes a projected $143.4 million in state and local sales tax savings during this year’s holiday, Aug. 9-11. Apparel and school supplies that may be purchased tax free are listed on the Comptroller's website at TexasTaxHoliday.org. As long as the item is sold during the designated days, you can get the tax break on items purchased in stores and online, or by phone, mail, custom order and other means.
The sales tax holiday initially was proposed by then-state Sen. Rodney Ellis as a weeklong sales tax break on all items priced less than $200, but amendments trimmed it before the 76th Texas Legislature ultimately approved it.
Lawmakers, however, have since broadened items included in the holiday. The original exemption was only for clothing and footwear priced less than $100. The Legislature expanded the holiday to include exemption of school backpacks in 2007 and added school supplies in 2009.
The Texas Legislature didn’t stop there. Lawmakers have approved tax holidays for emergency preparation supplies in April as well as for Energy Star® and water-efficient products on Memorial Day weekend. Although each holiday has specific guidelines, buyers don’t need a special exemption certificate to buy items tax free.
These holidays demonstrate Texas officials’ commitment to helping taxpayers retain their hard-earned money whenever possible. After all, not all states have sales tax holidays. According to the Federation of Tax Administrators, 20 states will waive or reduce sales taxes for limited times on various products this year.
As they have grown into teens and young adults, my three children have gained a greater appreciation of the importance of saving about $8 on every $100 spent stocking up on everything from blue jeans to binders to backpacks. These expenses — and savings — add up over the years, so our family looks forward to every sales tax holiday.
A REVIEW OF THE TEXAS ECONOMY