Tax holiday • Texas • Texas Comptroller of Public Accounts

You won’t see any of the parties, cakes or balloons usually related to anniversaries because the Texas sales tax Holiday celebrates its 20th anniversary this Aug. 9-11 — just the annual ringing of cash registers and clacking of fingers on keyboards as Texans take advantage of the state’s three-day suspension of state and local sales taxes on qualifying clothing, footwear and faculty supplies under $100 in stores and online.

Do you Have Sales Tax Nexus in Texas?

Good news! You only need to begin wondering Texas excise tax if you've got sales tax nexus in Texas.

“Sales tax nexus” is simply a flowery way of claiming “significant presence” during a state.

Texas considers a seller to possess nuisance tax nexus within the state if you've got any of the subsequent within the state:

An office or place of business
An employee present in the state
A place of distribution
A warehouse or storage space
A sales or sample room
Or another place where business is conducted

The Texas nuisance tax Holiday comes at no financial cost to retailers — but staff should be educated about what items do and don't qualify for the nuisance tax break during the holiday weekend. For example, messenger bags and backpacks (even those with wheels) qualify for the exemption; suitcases, briefcases and purses do not qualify and are taxable.

Shoppers may use the tax exemption when purchasing qualifying items at traditional brick-and-mortar stores and online stores. Mail, telephone and layaway transactions are covered as well. The exemption applies to each eligible item priced below $100, no matter how many items are sold. However, the tax exemption cannot be prorated and applied to items exceeding $99.99.