| 1 | 1 | | 88R8736 CJD-F |
|---|
| 2 | 2 | | By: Lozano H.B. No. 2422 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to an exemption from sales and use taxes for tools and |
|---|
| 8 | 8 | | equipment of skilled trade workers for a limited period. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
|---|
| 11 | 11 | | by adding Section 151.360 to read as follows: |
|---|
| 12 | 12 | | Sec. 151.360. TOOLS AND EQUIPMENT OF SKILLED TRADE WORKERS |
|---|
| 13 | 13 | | FOR LIMITED PERIOD. (a) In this section, "skilled trade tool item" |
|---|
| 14 | 14 | | means: |
|---|
| 15 | 15 | | (1) an item listed in this subdivision, the sales |
|---|
| 16 | 16 | | price of which is less than $300: |
|---|
| 17 | 17 | | (A) a toolbox for a vehicle; or |
|---|
| 18 | 18 | | (B) a power tool; |
|---|
| 19 | 19 | | (2) a pair of work boots, the sales price of which is |
|---|
| 20 | 20 | | less than $175; |
|---|
| 21 | 21 | | (3) an item listed in this subdivision, the sales |
|---|
| 22 | 22 | | price of which is less than $150: |
|---|
| 23 | 23 | | (A) a power tool battery; |
|---|
| 24 | 24 | | (B) handheld pipe cutters; |
|---|
| 25 | 25 | | (C) a drain opening tool; or |
|---|
| 26 | 26 | | (D) plumbing inspection equipment; |
|---|
| 27 | 27 | | (4) an industry textbook or codebook, the sales price |
|---|
| 28 | 28 | | of which is less than $125; |
|---|
| 29 | 29 | | (5) an item listed in this subdivision, the sales |
|---|
| 30 | 30 | | price of which is less than $100: |
|---|
| 31 | 31 | | (A) a tool belt; |
|---|
| 32 | 32 | | (B) electrical voltage testing equipment; or |
|---|
| 33 | 33 | | (C) a shop light; |
|---|
| 34 | 34 | | (6) a toolbox, the sales price of which is less than |
|---|
| 35 | 35 | | $75; |
|---|
| 36 | 36 | | (7) an item listed in this subdivision, the sales |
|---|
| 37 | 37 | | price of which is less than $50: |
|---|
| 38 | 38 | | (A) a hand tool; |
|---|
| 39 | 39 | | (B) a pair or set of safety glasses; |
|---|
| 40 | 40 | | (C) protective coveralls; |
|---|
| 41 | 41 | | (D) a duffle bag or tote bag; or |
|---|
| 42 | 42 | | (E) an LED flashlight; or |
|---|
| 43 | 43 | | (8) a pair of work gloves, the sales price of which is |
|---|
| 44 | 44 | | less than $25. |
|---|
| 45 | 45 | | (b) The sale of a skilled trade tool item is exempted from |
|---|
| 46 | 46 | | the taxes imposed by this chapter if the sale takes place during a |
|---|
| 47 | 47 | | period beginning at 12:01 a.m. on the first Friday in September and |
|---|
| 48 | 48 | | ending at 11:59 p.m. on the following Monday. |
|---|
| 49 | 49 | | SECTION 2. The change in law made by this Act does not |
|---|
| 50 | 50 | | affect tax liability accruing before the effective date of this |
|---|
| 51 | 51 | | Act. That liability continues in effect as if this Act had not been |
|---|
| 52 | 52 | | enacted, and the former law is continued in effect for the |
|---|
| 53 | 53 | | collection of taxes due and for civil and criminal enforcement of |
|---|
| 54 | 54 | | the liability for those taxes. |
|---|
| 55 | 55 | | SECTION 3. This Act takes effect immediately if it receives |
|---|
| 56 | 56 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 57 | 57 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 58 | 58 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 59 | 59 | | Act takes effect September 1, 2023. |
|---|