TAX-FREE WEEKEND: Who decides what's exempt and what's not?

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Morgan Chesky and Mattie Olsen / KVUE.com

Posted on August 16, 2012 at 2:15 PM

Updated Thursday, Aug 16 at 7:59 PM

AUSTIN -- As holidays go, it's just a few years old. Still, it's one weekend in August that's already become tradition.

"I've been one time," said mother of two Nicole Jamison. "It was last year to the mall and it was insane."

"So many people looking for the same things and it's just like Christmas time," said Kim Danforth. "It's just crazy."

"We know it's going to be really busy," said Target Manager Leeann Lefevvre.

T-minus two days until tax-free weekend and stores are getting ready.

"The last couple years especially, guests have really been utilizing this tax-free weekend to save a little bit of money," Lefevvre said.

That means 8.25 percent savings on almost all school supplies and clothing, even including diapers.

For Jamison, it adds up fast.

"I try to stay under $200 to $300 as the most I'll spend," she said. 

So when it comes to tax exemptions why do costumes count when backpacks don't even apply?

It turns out the decision goes well above the state level. It's called the Streamlined Sales Tax Governing Board. Its job is, "eliminating many of the sales tax headaches retailers incur."

Formed 10 years ago, the board gathers state input before defining what's exempt.

It's why soccer socks are tax-free and shin guards are full price. It's the reason why you'll get a deal on a baseball cap, just not the bat, not to mention backpacks.

"It's not an item that you wear on your body," Lefevvre said. "So it's not considered a tax-free item even though it's a school supply. "

For Jamison, any savings is useful but not without strategy. 

"If you're going to go to the mall, try to beat the crowd; go early or don't go at all," she said.

For information on specific tax-free items click here.

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