HB4052 - Relating to an exemption from sales and use taxes for certain resale clothing and footwear items.

  89R15681 JBD-F     By: Rodríguez 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.