Happy weekend shopping!
Tax-free shopping one of busiest times of the year

By Elvia Aguilar/Caller-Times
July 31, 2006

EDITOR'S NOTE: This story was corrected to reflect that there were no additions to the tax-free list

Local stores are preparing for what has become one of Texas' biggest shopping weekends of the year.

On Friday, Saturday and Sunday, Texas shoppers will get a break from state and local taxes during the sales tax holiday. This year's tax holiday for clothing and footwear begins at 12:01 a.m. Friday and ends at midnight Sunday.

Most clothing and footwear priced under $100 are exempt from sales taxes, saving shoppers about $8 for every $100 they spend. Layaway plans also can be used to take advantage of the sales tax holiday.

Texas, which started the tax-free holiday in 1999, is among 13 states and the District of Columbia to offer the tax break. This year Texas shoppers can expect to save about $49 million during the three-day weekend.

State Comptroller Carole Keeton Strayhorn said there are no additions this year to the tax-exempt list but also said she would like to see more changes in the future.

"There is no reason for a three-day traffic jam," Strayhorn said. "We should expand the number of days to five and that also will help retailers."

She also would like to see backpacks and school supplies added to the tax-free list as well as safety gear such as car seats, bicycle helmets and work boots.

"There are a lot of people making a living out there using those boots," Strayhorn said.

This year, five states - Georgia, Missouri, North Carolina, South Carolina and Tennessee - added computer equipment to their tax-exempt list for their tax holidays.

The sales tax holiday hasn't achieved the retail sales impact of Christmas or Father's Day, economists say, but it does stimulate additional spending that wouldn't be seen otherwise.

"In the grand scheme of things the sales tax holiday doesn't have a huge impact in our economy, but people do seem to enjoy it and merchants do, too," said economist Ray Perryman, head of the Waco-based Perryman Group.

Craig Shearman, spokesman for the National Retail Federation, said tax holidays are extremely successful. He estimates retailers see revenue gains of 10 percent to 100 percent during the three-day weekend.

"There's something magical about tax holidays because people are naturally drawn to stores to save some money," Shearman said.

Total national spending during the back-to-school season is estimated to reach $17.6 billion, up from $13.4 billion last year, according to a survey by the National Retail Federation.

In Corpus Christi, stores already are stocking up with extra clothes, shoes and employees to make sure they have an advantage over their competitors.

The Academy Sports and Outdoors store on South Padre Island Drive will be open for 24 hours each of the three days. Academy hired 62 additional employees to help during the back-to-school season.

"Our goal is to give our customers alternative times for shopping," store director Scot Timmins said.

Contact Elvia Aguilar at 886-3678 or