Texas House Bill HB2162

Texas 2025 - 89th Regular

• Filed: 1/28/25

Caption

Relating to the classification of certain sales of firearms as occasional sales for purposes of sales and use taxes.

Impact

The proposed legislation could significantly affect how sales of firearms are taxed in Texas. By reclassifying these transactions, it offers individuals selling firearms the opportunity to avoid the implications of being classified as retailers, including the associated fees and regulatory burdens. Supporters argue that this bill may promote private sales and hunting activities by easing the financial barriers that occasional sellers face.

Summary

House Bill 2162 proposes amendments to the Texas Tax Code that would classify certain sales of firearms as 'occasional sales' for purposes of sales and use taxation. Under the bill, individuals selling firearms would not be considered as engaging in the business of selling taxable items if their total receipts from such sales do not exceed $6,000 in a calendar year. This change seeks to provide clarity and potentially lessen the tax burden on individuals who sell firearms intermittently, distinguishing them from habitual sellers.

Contention

The classification of firearm sales raises questions about tax equity and regulatory oversight. Opponents may argue that opening up occasional sales without adequate taxation could lead to concerns regarding unregulated sales of firearms, potentially impacting law enforcement's ability to track and manage sales. Furthermore, discussions may arise about whether this bill could inadvertently encourage more frequent firearm sales under the occasional sales exemption, complicating the enforcement of existing firearms regulations.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 151. Limited Sales, Excise, And Use Tax
  • Section: 304