Tax-free holiday goes from frenzy to fizzle

The tax-free weekend set aside by Texas lawmakers each August to help families get ready to go back to school is traditionally a shopping frenzy. Stores promoted back-to-school deals, parents drew up lists of essentials and shoppers rushed to save 8.25 percent sales tax on school clothes, supplies and backpacks over the three-day event that many families highlighted on their calendars.

But this year, the two-decadeold holiday lacked urgency and adrenaline because many children aren’t returning to the classroom as the coronavirus pandemic spreads. They don’t need new jeans or shoes or backpacks to sit in front of laptops all day.

Shopping this weekend around Houston felt pretty much like any other pandemic weekend with plenty of parking available and many stores able to control foot traffic without requiring patrons to wait outside. Several shoppers said they weren’t even aware it was tax-free weekend.

Jamie Bamba, an accountant for an oil and gas company in Houston, normally takes her seven nieces and nephews to shop for backpacks and other school supplies on tax-free weekend. But not this year because they will all be going to school from home.

“With this going on with backto-school, I didn’t even bring it up,” she said.

Consumers are expected to spend an average $529 on backto-school expenses which is about 2 percent more than last year, according to a survey by the

consulting firm Deloitte.

But as the virus spreads consumers are shifting their priorities, spending 10 percent less on clothes and 13 percent less on school supplies this year, according to the survey. Instead, they’re spending 38 percent more on computers and 4 percent more on electronic devices and subscriptions.

The shift is coming at a bad time for retailers already struggling with bad debt. Just in the past month several revered retailers have filed for bankruptcy protection including the department store chain Lord & Taylor, the men’s clothing stores Men's Wearhouse and Jos. A. Bank and women’s clothing chains Ann Taylor and Lane Bryant.

Retailers are also heading into the critical back-toschool season trying to make up from lost sales from government issued stay-at-home mandates. The Salted Hippie Boutique in the historic section of League City that carries women’s and children’s clothing and accessories is still trying to catch up from being closed for about six weeks this spring.

But owner Lidia Ferrufino had high hopes for taxfree weekend, a time when Texans could buy most clothing, footwear, school supplies and backpacks that cost less than $100 without paying sales tax.

“I was kind of looking forward to a rush,” she said. But it turned out to be no different from any other weekend over the last few weeks.

To promote social distancing, Texas expanded tax-free sales to include eligible items bought online. And cloth masks were included too this year.

Michelle Kirkland, owner of Vivian Lane designs in Dallas, was hoping to capitalize on both new developments by catering to those who don’t want to go into a store just yet but also need to protect themselves.

She launched a line of handmade masks this spring after having to put her portrait photography business on pause and named the company after her grandmother who taught her how to sew. She sells every one she makes from her website online with about half the sales outside of Texas.

The biggest sellers for kids is a bold geometric black and red mask and for adults, a gold botanical in burgundy, said Kirkland. A specially designed plussized mask has been a surprisingly good seller, she said.

“I thought there would be an uptick for back-toschool,” she said.

But the shopping surge didn’t come and the weekend turned out like many others.