AUSTIN — Texas' highly successful sales tax holiday, scheduled this year for August 20-22, will offer Texans an opportunity to save millions in sales tax on clothing and a variety of back-to-school items. With two-thirds of the summer gone, the timing of the tax holiday is perfect for students of all ages looking to stock up on clothes and supplies for the new school year.

The Texas Legislature has expanded the list of items eligible for the tax break. The following link to the Texas Comptroller's webpage answers frequently asked questions about the tax holiday. The page also lists items that qualify for the tax exemption:

http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html

State Senator Juan "Chuy" Hinojosa, a long-time supporter of the tax holiday, commented on the boost the tax holiday gives to Texas businesses.

"The back-to-school season is a great economic driver in Texas. Parents are looking for low prices on the materials their children need for school and businesses are competing for those dollars. The sales tax holiday helps Texas families save money on those items, and because of the increase in shoppers, stores often hire employees to help with the rush. This tax holiday really stimulates the local economies in a variety of ways," Senator Hinojosa said.

Given the sluggish pace of the economy, Senator Hinojosa encouraged residents of South Texas and the Coastal Bend to begin budgeting early to take full advantage of the tax holiday coming up two weekends from now.

"I know that families are really sticking to their budgets these days. Knowing that the tax holiday is scheduled for later this month gives people time to set aside money now. It is best to buy as many items as you can during the holiday to get the full benefit of the tax break," Hinojosa concluded.

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