Tax Free Weekend to Test Retailers Again

HOUSTON - Tax Free Weekend, a Texas tradition since 1999, is set to begin on Friday as retailers prepare for scores of customers looking for untaxed merchandise as students get back to school. Each summer, just before schools resume classes, Texas state law designates that all clothing and school supply merchandise under $100 to be available for sale without state or local sales tax being applied.

The event has had a very positive impact on the state.

"It's been a huge success" said Allen Spelce, the spokesman for the Texas Comptroller Public Accounts in my interview with him. "It saves taxpayers $505 million [so they do not have to provide schools with extra schools supplies, for example] and we expect shoppers to save $59.3 million dollars in state and local taxes this year."

And with the economy in a major recession, the weekend not only serves as a way to give a break to it's citizens but is also a boon for retailers.

"I think in tight times like it is right now it allows people to get more for their dollar and families and individuals are really watching their budgets now" Splece said "This enables people to go out and purchase items at a discount.

"The retailers like this weekend because it's a driver for them. A lot of times they'll get other stores to buy items from them that are tax free and some that aren't tax free."

Because of deals the however, retailers have to brace for enormous crowds that are sure to come in. This includes people such as Lisa Price, an administrative assistant at the Macy's department store at Baybrook Mall in the Houston suburb of Friendswood who will be working through her third tax free weekend at the store. During our interview, she found the idea of how hectic the weekend would be very humorous.

"Tax Free Weekend is very busy," she laughed. "I expect a lot of traffic because Macy's advertises very heavily for their one day sale and we always get a lot of business for that. So that on top of it being tax free weekend, it will produce lots of traffic through the store."

Tax Free Weekend is set to begin on Friday, August 20 and last through Sunday, August 22.