The Texas State Senate - Rodney Ellis News Releases
From the Office of State Senator Rodney Ellis
For Immediate Release
August 5, 1999
Contact: Jeremy Warren, (512) 463-0113
First Sales Tax Holiday Set to Begin Tomorrow
Shoppers Ready to Save Millions of Dollars During a Three-Day Break from Sales Taxes
AUSTIN// --Senator Rodney Ellis (D-Houston) and Lieutenant Governor Rick Perry today toured the state to tout a three-day sales tax holiday as a break for Texas working families as they prepare for the school year.
The tour kicked off a long weekend of savings by consumers shopping for shoes and clothing during the back-to-school season. The promotion effort includes visits by Lt. Gov. Perry and Sen. Ellis to several cities across Texas, in addition to public service announcements, flyers to local churches and businesses, editorials and back-to-school advertising campaigns by local businesses. Texas' first annual sales tax holiday will begin at 12:01 a.m., Friday, August 6th and conclude at midnight on Sunday, August 8th.
"Just in time for back-to-school, Texans are getting a much needed break," said Ellis. "The sales tax holiday allows families with school-age children to better afford the clothing they need when school starts. The money parents will save from the tax holiday could mean a free pair of khakis or blue jeans, a free skirt or just more money in Texans' pockets."
The sales tax holiday is part of SB 441 by Ellis, a $506 million consumer and business tax cut initiative that provides historic tax relief for Texas families and business. The legislation creates a three-day sales tax holiday each August on shoes and clothing under $100. The tax holiday is estimated to save Texans at least $70 million. Texas joins Minnesota, New Jersey, Pennsylvania, Rhode Island, Connecticut, Massachusetts, New York and Florida as states with some form of sales tax holiday.
At 8.25 percent, Texas has one of the highest combined sales tax rates in the United States. According to the Citizens for Tax Justice, Texas has the third most regressive tax system in the nation. High sales taxes hit low income and elderly Texans the hardest, forcing our poorest citizens to pay up to six times more of their income in sales taxes than more affluent Texans. Under SB 441, Texans will be able to buy socks, shoes, jeans, shirts, skirts, sweaters and other staples tax-free (a full listing of tax-free items follows).
"The sales tax holiday means real tax relief to Texas families," said Ellis. "Too often, when the legislature starts cutting taxes, the little guy is left out. The sales tax holiday will give a break to the Texans that need it most, when they need it most. My goal is to make it bigger and better every year."
$ALES TAX HOLIDAY
AUGUST 6-8, 1999
Legislation authored by Senator Ellis designates August 6 (beginning at midnight) through August 8 as Texas' first annual Sales Tax Holiday. Clothing and shoes up to $100 per item will be tax-free. That will save Texans $8 on every $100 they spend.
Selected list of items and their exemption status on the sales tax holiday.
|NOW TAX FREE
Belts with attached buckles
Bridal apparel (not rentals)
Caps/hats - baseball, fishing, golf, knitted
Coats and wraps
Diapers - adult and baby
Gym suits and uniforms
Hooded shirts and hooded sweatshirts
Jerseys - baseball and football
|Jogging apparel, such as bras, suits and shorts
Neckwear and ties
Pants and trousers
Raincoats and ponchos
Shoes - sandals, slippers, sneakers, tennis, walking
Socks (including athletic)
Suits, slacks and jackets
Swim suits and trunks
Tuxedos (not rental)
Work clothes and uniforms
|Accessories (generally) - barrettes, plastic pony tail holders, wallets, watches
Baseball cleats and pants
Belt buckles (without belt)
Boots - climbing, fishing, rubber work boots, ski, waders
Buttons and zippers
Cloth and lace, knitting yarns and other fabrics
Dry cleaning services
Handbags and purses
|Helmets - bike, baseball, football, hockey, motorcycle, sports
Leather goods - except belts and wearing apparel
Pads - football, hockey, soccer, elbow, knee, shoulder
Personal flotation devices
Rented clothing (including uniforms, formal wear, and costumes)
Roller blades and skates
Safety clothing, glasses
Shoes - bicycle (cleated), bowling, golf.
Back-to-school clothing for the typical Texas family with a school-age child:
|2 pairs of shorts --
|| $17.99 each
|1 polo shirt --
|1 button down shirt --
|1 Light Jacket
|12 pair socks --
|1 pair athletic shoes --
|3 pair blue jeans --
|| $19.99 each
|5 tee shirts --
|| $12.99 each (average)
|TOTAL Sales Tax:
|Sales Tax Under SB 441:
(Based on JC Penney Catalog)