Issued by Texas Comptroller, July 2020
During the COVID-19 pandemic, the Comptroller encourages all taxpayers to continue practicing social distancing and support Texas businesses while saving money on tax-free purchases of most clothing, footwear, school supplies and backpacks (sold for less than $100) during the annual Tax-Free weekend. Qualifying items can be purchased tax free from a Texas store or from an online or catalog seller doing business in Texas. In most cases, you do not need to give the seller an exemption certificate to buy qualifying items tax free.
This year’s sales tax holiday begins Friday, Aug. 7, and goes through midnight Sunday, Aug. 9.
The sales tax exemption applies only to qualifying items you buy during the sales tax holiday. Items you buy before or after the sales tax holiday do not qualify for exemption, and there is no tax refund available.
Online Purchases and Telephone Orders
To promote social distancing, the Texas Comptroller’s office wants all taxpayers to know that during the Tax-Free Weekend, you can buy qualifying items online or by telephone, mail, custom order or any other means (including in-store purchases) tax free, when either
- the item is both delivered, and paid for, by the customer during the exemption; or
- the customer orders and pays for the item, and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period ends.
A seller accepts an order when the seller has acted to fill the order for immediate shipment.
An order is filled for immediate shipment regardless of whether the shipment is delayed due to a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.
In-Store Purchases
The Comptroller’s office urges all taxpayers buying certain qualifying items at their local retailers to practice appropriate social distancing as described in the Center for Disease Control and Prevention guidelines during the sales tax holiday.
Qualifying Items
Clothing and FootwearBackpacksSchool Supplies
Special Purchases
School Supplies Purchased Using a Business Account – Exemption Certificate RequiredLayawaysSpecial Orders and Rain Checks
Additional Charges Affect the Sales Price
Delivery, Shipping, Handling and Transportation Charges
Sales Tax Holiday Refund Requests
If you pay sales tax on qualifying items during the sales tax holiday, you can ask the seller for a refund of the tax paid. The seller can either grant the refund or provide their customer with Form 00-985, Assignment to Right to Refund (PDF), which allows the purchaser to file the refund claim directly with the Comptroller’s office.
Sellers – What You Need to Know
Advertising for Non-Qualifying ItemsReporting Tax
Find out more from the original publication: https://comptroller.texas.gov/taxes/publications/98-490/
