State announces tax-free holiday

Before sending the kids back to school next month, parents will get a break during the 10th annual sales tax holiday.

Texas Comptroller Susan Combs has announced this year’s sales tax holiday is scheduled for Aug. 15-17.

The tax holiday is intended to alleviate some of the burden of purchasing new clothing and shoes to send children back to classes.

The holiday will save consumers an estimated $54 million in sales tax over the weekend, according to the comptroller’s office. Of that, $42.1 million would have gone to the state and $11.9 million to cities.

Despite what many see as a slowing economy, Texas’ sales tax revenue has continued to grow, Combs said in a news release, and the sales tax holiday will have a minimal impact on collections.

“Through June, state sales tax collections for fiscal 2008 were up 6.1 percent compared to the same point in fiscal 2007. Cities’ and counties’ calendar year-to-date sales tax revenues were up an average of 5.1 percent,” Combs said.

The sales tax holiday only applies to clothing and shoe purchases less than $100, and it only applies to some types of clothing. Consumers will save about $8 on each $100 spent.

Backpacks have been added to the list of tax-free items this year, but most school supplies will still be taxable.

The sales tax holiday weekend has saved Texans approximately $388 million since its inception in 1999, according to Combs.