Texas House Bill HB235

Texas 2025 - 89th 1st C.S.

• Filed: 7/30/25

Caption

Relating to an exemption from sales and use taxes for taxable items purchased by a totally disabled veteran.

Impact

The implementation of HB 235 will specifically affect the Texas Tax Code by adding a new section that delineates the criteria and procedure for the tax exemption. Veterans eligible for this exemption will need to complete and present a specific exemption certificate at the time of purchase, which will be made available online through the comptroller's website. This development is expected to simplify the purchasing process for disabled veterans, giving them access to tax savings that acknowledge their contributions and challenges.

Summary

House Bill 235 seeks to provide financial relief to totally disabled veterans by exempting them from sales and use taxes on taxable items they purchase. This exemption will come into force on January 1, 2026, allowing qualified disabled veterans—and those authorized to make purchases on their behalf—to avoid taxes on the first $25,000 of taxable items bought each calendar year. The legislation highlights the commitment to support veterans who have a 100 percent disability rating, aligning tax benefits with their service-related sacrifices.

Contention

While supporters of the bill advocate for its positive impact on veteran communities, there may be concerns regarding the fiscal implications for state revenue given the nature of tax exemptions. Critics could claim that while well-intentioned, this exemption might lead to disparities in tax burdens or affect funding for state services. Nonetheless, proponents emphasize the need for targeted benefits for veterans who are fully disabled, arguing that they deserve such financial relief and support.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 151. Limited Sales, Excise, And Use Tax
  • Section: New Section