Spring/Summer Sales Tax Holidays Kick Off

posted on 4.19.2021

- Four Chances to Promote Savings

The state’s sales tax holiday “season” starts this weekend with the first of four opportunities this summer for retailers to promote personal safety, energy and water conservation and stocking up on school supplies and clothes. The holidays, which all fall on week-ends, are one way the State of Texas encourages practices that benefit communities and individuals alike and offer one additional feature: no paperwork!

In all cases, additional charges for items such as delivery and handling could push an item’s total cost above pre-set and advertised price caps. Fortunately, purchases made online and by telephone are eligible so long as the purchase, payment and delivery occur within the exemption period.

Emergency Preparedness – April 24-26
The sales tax exemption phases out at certain dollar levels, depending on the item, and a surprising number of items many might consider eligible actually aren’t, so mind the details.

Emergency preparation supplies sales tax holiday details

Double Savings: EnergyStar® & Water-Efficiency – May 29-31 (Memorial Day)
With a three-day week-end, lawmakers figured Texans ought to stay busy minding two of our most important and increasingly scarce resources: energy and water.

Considering their nature, some of these products are higher-cost items yielding greater savings during the tax holiday. But in both categories, there are some unexpected exclusions.

EnergyStar® sales tax holiday details
Water-Efficient products sales tax holiday details

Back to School – Aug. 6-8
The “big kahuna” of sales tax holidays, the “back-to-school” event is the best known tax holiday of all, applying to purchases of most clothing, footwear, school supplies and backpacks costing less than $100.

The lists of eligible items are extensive, with some more head-scratching exclusions (face masks continue to prove vexatious).

Advertisers selling non-qualifying items can offer to pay the sales tax for these items under certain conditions, so stations need to mind the ad copy to make sure they comply with the Comptroller’s rules.

Back to school sales tax holiday details

Questions? Contact TAB’s Oscar Rodriguez or call (512) 322-9944.

---