Texas Sales Tax refund (IAH). Does anyone know how this works?

[magni]

I tried to do this at IAH one time for all the shopping my mom did before she was flying back overseas. I was very organized with all the receipts etc.

What they told me at the counter was that they can not give me the tax refund as they did not have any cash left for the day. It sounds like a stupid excuse for a place whose job is to give you the cash. So, in short, do not trust the process.

[behtypa]

There are more options than just cash.

Every time I have refunded the tax, I was offered a few refund options:
- cash (immediately)
- check (sent over 30 day period)
- paypal (processed over 30 day period)

The refund percentage/amount will depend on a selected option.

Originally Posted by magni

I tried to do this at IAH one time for all the shopping my mom did before she was flying back overseas. I was very organized with all the receipts etc.

What they told me at the counter was that they can not give me the tax refund as they did not have any cash left for the day. It sounds like a stupid excuse for a place whose job is to give you the cash. So, in short, do not trust the process.

[behtypa]

No, not exactly.

1. You can make purchases in ANY store from the approved list around Texas:
TaxFree Shopping - www.TaxFreeTexas.com

Most big box stores, most stores in the Galleria and Outlets participate.

2. The purchased amount shall be at least $150 after tax. Equals at least $12 of sales tax.
TaxFree Shopping - www.TaxFreeTexas.com

3. You have to make your purchases not later than 30 days before you leave the country.

4. When leaving from the IAH airport, bring your receipts and goods to the kiosk of "Tax free Shopping" (there are 2 of them in IAH, Terminals D and E). They will check both in person and will keep the original receipt (you can make a receipt copy in advance).
TaxFree Shopping - www.TaxFreeTexas.com

They will offer you a few refund options:
- cash (immediately)
- check (sent over 30 day period)
- paypal (processed over 30 day period)

The refund percentage/amount will depend on a selected option.
They will NOT offer you a full amount, because the business retains 55-65% for their services. But returning 35% if better than nothing, right?

5. The "Tax free Shopping" will ask you to sign a statement (something like this): "I confirm that the item is purchased and imported out of country and will not return." NO ONE enforces this part. No one will check you when you re-enter the country. So your further actions are up to you.

Originally Posted by elnina

So, in other words you can buy expensive phone at the airport, show them your current ticket, get the tax refund, fly somewhere overseas, then come back with the phone?

BTW: are you sure that the phone you buy at the airport MINUS your tax refund is still cheaper than buying it online?

[behtypa]

Whether the refund is worth it depends on what you buy. Examples:

You can purchase a brand new warrantied iphone only from an official Apple store. The price online and at a local store is the same. In other words, the official Apple store is your only option.
Having 30-40% of the tax returned is a good saving here.

The same principle applies to items that you can purchase only from THAT store (brand new model of Nike shoes, some outlet items that are not available else where). If you can buy an item from eBay/Amazon >10% cheaper the tax refund is probably not a viable option.

Originally Posted by elnina

BTW: are you sure that the phone you buy at the airport MINUS your tax refund is still cheaper than buying it online?

[elnina]

Thank you! Now I understand how it works. Great find for those who travel overseas quite often.