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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 resale |
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clothing and footwear items. |
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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 151.3261 to read as follows: |
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Sec. 151.3261. RESALE CLOTHING. (a) In this section, |
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"resale clothing" means clothing or footwear designed to be worn on |
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or about the human body that was previously sold or used and is |
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subsequently sold by a seller or retailer, including items of |
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clothing and footwear sold by a thrift store, consignment shop, or |
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similar establishment. The term does not include clothing or |
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footwear: |
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(1) that has been materially modified in a manner to |
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intentionally increase its value significantly beyond its original |
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resale price; |
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(2) sold as a luxury or upcycled fashion item at a |
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price higher than the typical resale value for similar used |
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clothing or footwear; or |
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(3) the immediately preceding sale of which qualified |
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as a sale for resale for purposes of Section 151.302. |
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(b) The sale, storage, use, or other consumption of an |
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article of resale clothing is exempted from the taxes imposed by |
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this chapter. |
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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, 2025. |