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