HB2481 - Relating to the exemption from sales and use taxes for clothing, footwear, and certain school-related items.

  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.