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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from sales and use taxes for clothing, |
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footwear, and certain school-related items. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.326, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) The sale of an article of clothing or footwear designed |
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to be worn on or about the human body is exempted from the taxes |
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imposed by this chapter if: |
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(1) the sales price of the article is less than $150 |
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[$100]; and |
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(2) the sale takes place during a period beginning at |
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12:01 a.m. on the Friday before the 15th day preceding the uniform |
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date prescribed by Section 25.0811(a), Education Code, without |
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regard to any exception authorized by that section, before which a |
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school district may not begin instruction for the school year, and |
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ending at 12 midnight on the following Sunday. |
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(c) Beginning in 2026, on January 1 of each year, the amount |
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prescribed by Subsection (a) is increased by an amount equal to the |
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amount prescribed by that subsection on December 31 of the |
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preceding year multiplied by the percentage increase, if any, |
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during the preceding state fiscal year in the consumer price index |
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and rounded to the nearest dollar. In this subsection, "consumer |
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price index" means the average over a state fiscal year of the |
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Consumer Price Index for All Urban Consumers (CPI-U), U.S. City |
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Average, published monthly by the United States Bureau of Labor |
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Statistics, or its successor in function. |
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SECTION 2. Section 151.327, Tax Code, is amended by |
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amending Subsection (a-1) and adding Subsection (c) to read as |
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follows: |
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(a-1) The sale or storage, use, or other consumption of a |
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school supply or a school backpack is exempted from the taxes |
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imposed by this chapter if the school supply or backpack is |
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purchased: |
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(1) for use by a student in a public or private |
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elementary or secondary school; |
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(2) during the period described by Section |
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151.326(a)(2); and |
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(3) for a sales price of less than $150 [$100]. |
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(c) Beginning in 2026, on January 1 of each year, the amount |
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prescribed by Subsection (a-1) is increased by an amount equal to |
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the amount prescribed by that subsection on December 31 of the |
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preceding year multiplied by the percentage increase, if any, |
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during the preceding state fiscal year in the consumer price index |
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and rounded to the nearest dollar. In this subsection, "consumer |
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price index" means the average over a state fiscal year of the |
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Consumer Price Index for All Urban Consumers (CPI-U), U.S. City |
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Average, published monthly by the United States Bureau of Labor |
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Statistics, or its successor in function. |
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SECTION 3. The change in law made by this Act does not |
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affect taxes imposed before the effective date of this Act, and the |
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law in effect before the effective date of this Act is continued in |
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effect for purposes of the liability for and collection of those |
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taxes. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |