Texas legislators expanded the number of eligible items for back-to-school shoppers during this weekend's tax-free holiday, estimating that families will save nearly $66 million.
Several school supplies such as pencils and paper were added this year to the list of items under $100 that will not face the state's 8.25 percent sales or local taxes from Friday through Sunday. The effort began under former Gov. George W. Bush in 1999.
Binders, book bags, lunch boxes and scissors also made the list this year. In years past, clothing and footwear - including cowboy boots - made up most of the covered items. Most sports equipment isn't included.
Sen. Rodney Ellis, who wrote the original bill in 1999, said Wednesday that the tax exemption will bring needed relief to Texas residents, especially those on a low income.
"Families are feeling the strain of the economy," Ellis said during a news conference at Macy's ( M - news - people ) in Houston. "We need to use our dollars in a way that goes farther."
Some states canceled their tax holidays this year, including Florida and Illinois. But in Texas, state comptroller Susan Combs said the expected uptick in spending will offset the loss of sales tax revenue. The state's main source of revenue is sales tax, she said.
"We are focusing on families in this particular time and people need a boost," Combs said.
She said families typically spend about $550 each year going back to school.
Retail lobbyists pushed for the Aug. 21-23 date this year because it's the weekend most families are expected to be home before school starts. In Houston, schools start classes Monday.
Macy's general manager Brendan Halford said in the past, tax holidays have increased incremental sales for retailers, though most stores have their own sales in conjunction with the tax-free weekend.
The money saving was a welcome relief, Nancy Alcaraz said as she shopping in downtown Houston on Wednesday. She said she recently moved to the city with her high school-bound son.
"We are going to spend about $100 more this year because my son is no longer using uniforms in school," Alcaraz said. "The extra money will help a little bit."
But there are drawbacks, said mother Von Stewart. The Houston resident said she already finished her shopping and has never used the annual discount.
"The crowds are just horrible and $8 doesn't really do much," she said, estimating the savings on a $100 purchase.
In the 11 years of the program, the state estimates they have saved families nearly $442 million in expenses for students.
