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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from sales and use taxes for certain |
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qualified tools and equipment for a limited period. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.360 to read as follows: |
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Sec. 151.360. CERTAIN QUALIFIED TOOLS AND EQUIPMENT FOR |
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LIMITED PERIOD. (a) In this section, "qualified tool or equipment |
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item" means: |
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(1) an item listed in this subdivision, the sales |
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price of which is less than the greater of $225 or the amount |
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provided by Subsection (c): |
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(A) a power tool; |
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(B) a pair of work boots; |
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(C) a job box, toolbox, or tool organizer; or |
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(D) an industry textbook or codebook; or |
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(2) an item listed in this subdivision, the sales |
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price of which is less than the greater of $100 or the amount |
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provided by Subsection (c): |
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(A) a hand tool; |
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(B) a pair or set of safety glasses; |
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(C) protective coveralls; or |
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(D) a pair of work gloves. |
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(b) The sale of a qualified tool or equipment item is |
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exempted from the taxes imposed by this chapter if the sale takes |
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place during a period beginning at 12:01 a.m. on the Friday |
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preceding the first Monday in September and ending at 11:59 p.m. on |
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the first Monday in September. |
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(c) Beginning January 1, 2027, on January 1 of each fifth |
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year, the amounts prescribed by Subsections (a)(1) and (2), |
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respectively, are increased by an amount equal to the amount |
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prescribed by that subsection on December 31 of the preceding year |
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multiplied by the cumulative percentage increase, if any, in the |
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consumer price index during the preceding five-year period and |
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rounded to the nearest five dollars. 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. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect September 1, 2026. |