“We estimate shoppers will save about $54 million in sales tax during the sales tax holiday, including approximately $42.1 million in state sales tax and $11.9 million in local sales taxes,” said Combs.

During the tax holiday weekend, most clothing and shoes priced less than $100 can be purchased tax free, according to Combs, with the tax break applying to both children and adult apparel.

And while the holiday — which, according to Texas officials has saved shoppers more than $388 million in state and local sales taxes since it was introduced in 1999 — will certainly have a positive impact on local residents' back-to-school budgets, Combs said the dip in sales tax collections for both the state and local economies should be minimal.

“Though the national economy has slowed, Texas sales tax revenue continues to grow at a healthy pace,” she said. “Through June, state sales tax collections for fiscal 2008 were up 6.1 percent compared to the same point in fiscal 2007. Cities’ and counties’ calendar year-to-date sales tax revenues were up an average of 5.1 percent.”

According to Combs, the law exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend. Backpacks under $100 and used by elementary and secondary students are also exempt.

According to a list released by the Comptroller's Office, a backpack is a pack with straps one wears on the back. The exemption during the sales tax holiday includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags.

The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller, according to the list.

Among items approved for the tax-free holiday are baby clothes, boots, caps and hats, coats, gym suits and uniforms, jeans, football and baseball jerseys, raincoats and ponchos, shoes and socks, underclothes and work clothes and uniforms.

Items not approved for the holiday include baseball cleats and pants; belt buckles without a belt; boots specifically for climbing, fishing, rubber work boots, skiing or wading; football pants; handbags and purses; hard hats and helmets; and cleated shoes, such as golf shoes, bowling shoes or bicycle shoes.

 A list of items that will be tax exempt during the sales tax holiday is available on the Comptroller’s Web site at http://www.window.state.tx.us.