| 1 | 1 | | 89R15681 JBD-F |
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| 2 | 2 | | By: RodrÃguez Ramos H.B. No. 4052 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an exemption from sales and use taxes for certain resale |
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| 10 | 10 | | clothing and footwear items. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 13 | 13 | | by adding Section 151.3261 to read as follows: |
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| 14 | 14 | | Sec. 151.3261. RESALE CLOTHING. (a) In this section, |
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| 15 | 15 | | "resale clothing" means clothing or footwear designed to be worn on |
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| 16 | 16 | | or about the human body that was previously sold or used and is |
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| 17 | 17 | | subsequently sold by a seller or retailer, including items of |
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| 18 | 18 | | clothing and footwear sold by a thrift store, consignment shop, or |
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| 19 | 19 | | similar establishment. The term does not include clothing or |
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| 20 | 20 | | footwear: |
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| 21 | 21 | | (1) that has been materially modified in a manner to |
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| 22 | 22 | | intentionally increase its value significantly beyond its original |
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| 23 | 23 | | resale price; |
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| 24 | 24 | | (2) sold as a luxury or upcycled fashion item at a |
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| 25 | 25 | | price higher than the typical resale value for similar used |
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| 26 | 26 | | clothing or footwear; or |
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| 27 | 27 | | (3) the immediately preceding sale of which qualified |
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| 28 | 28 | | as a sale for resale for purposes of Section 151.302. |
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| 29 | 29 | | (b) The sale, storage, use, or other consumption of an |
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| 30 | 30 | | article of resale clothing is exempted from the taxes imposed by |
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| 31 | 31 | | this chapter. |
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| 32 | 32 | | SECTION 2. The change in law made by this Act does not |
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| 33 | 33 | | affect tax liability accruing before the effective date of this |
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| 34 | 34 | | Act. That liability continues in effect as if this Act had not been |
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| 35 | 35 | | enacted, and the former law is continued in effect for the |
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| 36 | 36 | | collection of taxes due and for civil and criminal enforcement of |
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| 37 | 37 | | the liability for those taxes. |
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| 38 | 38 | | SECTION 3. This Act takes effect September 1, 2025. |
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