89R3585 CJD-D
By: Curry H.B. No. 2481
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from sales and use taxes for clothing,
footwear, and certain school-related items.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.326, Tax Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The sale of an article of clothing or footwear designed
to be worn on or about the human body is exempted from the taxes
imposed by this chapter if:
(1) the sales price of the article is less than $150
[$100]; and
(2) the sale takes place during a period beginning at
12:01 a.m. on the Friday before the 15th day preceding the uniform
date prescribed by Section 25.0811(a), Education Code, without
regard to any exception authorized by that section, before which a
school district may not begin instruction for the school year, and
ending at 12 midnight on the following Sunday.
(c) Beginning in 2026, on January 1 of each year, the amount
prescribed by Subsection (a) is increased by an amount equal to the
amount prescribed by that subsection on December 31 of the
preceding year multiplied by the percentage increase, if any,
during the preceding state fiscal year in the consumer price index
and rounded to the nearest dollar. In this subsection, "consumer
price index" means the average over a state fiscal year of the
Consumer Price Index for All Urban Consumers (CPI-U), U.S. City
Average, published monthly by the United States Bureau of Labor
Statistics, or its successor in function.
SECTION 2. Section 151.327, Tax Code, is amended by
amending Subsection (a-1) and adding Subsection (c) to read as
follows:
(a-1) The sale or storage, use, or other consumption of a
school supply or a school backpack is exempted from the taxes
imposed by this chapter if the school supply or backpack is
purchased:
(1) for use by a student in a public or private
elementary or secondary school;
(2) during the period described by Section
151.326(a)(2); and
(3) for a sales price of less than $150 [$100].
(c) Beginning in 2026, on January 1 of each year, the amount
prescribed by Subsection (a-1) is increased by an amount equal to
the amount prescribed by that subsection on December 31 of the
preceding year multiplied by the percentage increase, if any,
during the preceding state fiscal year in the consumer price index
and rounded to the nearest dollar. In this subsection, "consumer
price index" means the average over a state fiscal year of the
Consumer Price Index for All Urban Consumers (CPI-U), U.S. City
Average, published monthly by the United States Bureau of Labor
Statistics, or its successor in function.
SECTION 3. The change in law made by this Act does not
affect taxes imposed before the effective date of this Act, and the
law in effect before the effective date of this Act is continued in
effect for purposes of the liability for and collection of those
taxes.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.