bill raises tax holiday cap from $100 to $150

The text as introduced · 559 words

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.