Often when one hears the word “holiday,” the mind conjures up thoughts associated with relaxation, celebration, and a break from regular routines. Barbecuing or homemade ice cream might be at the top of the list of planned activities for those days, especially during the summer months.
Through the years, many days have been designated as holidays as a result of official action by the US Congress and the Texas Legislature. In addition, local governments, businesses, religious bodies, civic groups, higher education institutions, and other entities have fashioned an assortment of holidays for their own members.
The popularity of particular holidays in Texas has varied over the years. Not all of them are regularly observed by the average Texan. Some receive very little publicity and even less attention. Probably only avid history buffs know the period set aside to observe Confederate Heroes’ Day or Lyndon Baines Johnson’s Birthday. Finding someone who can name all 19 of those authorized by either the constitution or legislative action might prove difficult.
But there is also another kind of holiday in the Lone Star State for which the focus is completely different. It’s the sales tax holiday beginning at 12:01 a.m. August 4th and running to midnight August 7th. Of course, this holiday doesn’t rank up there with those created to recognize nation-changing events or special religious observances. Still, it’s pretty well liked and is gaining popularity every year, particularly among Texans who enjoy saving money while doing their back-to-school shopping.
Texas, of course, is not the only state with special tax-free periods. The first endeavor of this type was instituted in New York in 1997. Florida followed the next year, and Texas authorized the program in 1999. Since then, a total of about 15 states and the District of Columbia have either implemented or are considering legislation to authorize similar tax-exempt shopping days. Florida not only has the back-to-school savings weekend, but the state also provides tax-free shopping the first 12 days in June so residents can prepare for the annual hurricane season.
The number of days allotted for the shopping spree differs among the states as do the items permitted to be purchased under the plan. During the 2005 three-day, tax-free holiday in Texas, no state or local sales taxes are required on purchases costing less than $100 that meet specific requirements. Items exempt from these taxes are mostly clothing and footwear, exclusive of those used primarily for athletic activities or protective wear. Jewelry and school supplies are also not included in the sales tax exemption.
Since the first tax-free weekend in 1999, Texans who shop during this period have saved some $188.8 million in state sales taxes and another $50.8 million in local taxes. Following a combined savings of approximately $32.6 million during the initial holiday, savings have increased annually to reach $46.1 million last year. Expectations are that the amount of spending and savings will rise again this weekend.
According to a survey by the National Retail Federation, the average outlay per back-to-school shopper this year will be $205.31 on clothes and $88.54 on footwear. Although school supplies and backpacks are not among the tax-free items that are available, the average expenditure on them will probably be about $81.83 as students get ready for the fall school term.
Texans are noted for many things, and bargains are certainly among them. For those looking to save money, this weekend might offer a great opportunity.