HB 3504

bill creating a sales tax holiday for trade tools

Did not pass

Verdict: No flags

No flagsInitial review

Rep. Trey Martinez FischerDHouse 116

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to an exemption from sales and use taxes for tools and equipment of skilled trade workers for a limited period.

Caption from analyzed text · version I.

Summary

Power tools under $300, work gloves under $25. Starts the first Friday in September.

The bill creates a yearly sales tax holiday on work tools and gear, running from 12:01 a.m. on the first Friday in September through 11:59 p.m. the following Monday. It covers anyone buying listed items under set price caps, such as power tools under $300, work boots under $175, hand tools under $50 and work gloves under $25. During that weekend, shoppers pay no state sales or use tax on those items, and past tax owed is unaffected.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 2422 by Rep. Lozano (Died in committee) and this bill (Did not pass). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 2422 by Rep. Lozano (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.STALLED AFTER COMMITTEE. Voted out of the House Ways & Means committee 11-1 on May 7, 2025. Placed on the General State Calendar on May 14, 2025. The bill died.

Receipt

The receipt

89R-HB3504 · 2025-02-27

SOLD BY

Rep. Trey Martinez FischerDHouse 116

ITEM

relating to an exemption from sales and use taxes for tools and equipment of skilled trade workers for a limited period.

WHAT IT DOES

Power tools under $300, work gloves under $25. Starts the first Friday in September.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version H · ( ) = negative · source

Sources

Fiscal note · version H · May 9, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB3504, Committee Report 1st House, Substituted: a negative impact of ($11,360,000) through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Tax Reduction and Excellence in Education Fund of ($411,000) for the 2026-27 biennium. Any loss to the Tax Reduction and Excellence in Education must be made up with an equal amount of General Revenue to fund the Foundation School Program.

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Feb 27, 2025Filed
Mar 24, 2025Read first time
Mar 24, 2025Referred to Ways & Means
Apr 21, 2025Scheduled for public hearing on . . .
Apr 21, 2025Considered in public hearing
Apr 21, 2025Testimony taken/registration(s) recorded in committee
Apr 21, 2025Left pending in committee
May 7, 2025Considered in formal meeting
May 7, 2025Committee substitute considered in committee
May 7, 2025Reported favorably as substituted
May 10, 2025Comte report filed with Committee Coordinator
May 10, 2025Committee report distributed
May 10, 2025Committee report sent to Calendars
May 12, 2025Considered in Calendars
May 14, 2025Placed on General State Calendar

FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Trey Martinez Fischer

Donors

One Texas PAC$100K Texas Trial Lawyers Association PAC$30K Kickapoo Traditional Tribe of Texas$20K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

One Texas PAC$100,000.00

One Texas PAC

$100,000.00

Cash: $100,000.00
Paid by others: $0.00
Total: $100,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Nov 19, 2025. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · on Nov 19, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101027855.

Texas Trial Lawyers Association PAC$30,000.00

Texas Trial Lawyers Association PAC

$30,000.00

Cash: $30,000.00
Paid by others: $0.00
Total: $30,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 19, 2024 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012345, 101027855, 101058317, 101068299, 101071424.

Kickapoo Traditional Tribe of Texas$20,000.00

Kickapoo Traditional Tribe of Texas

$20,000.00

Cash: $20,000.00
Paid by others: $0.00
Total: $20,000.00

Also funds 53 other sitting lawmakers.

Derived recipient stock · Aug 15, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · on Jun 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101058317.

Money

Missing data does not establish zero giving. Display amounts are rounded.

One Texas PAC

$100,000.00

Cash: $100,000.00
Paid by others: $0.00
Total: $100,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Nov 19, 2025. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · on Nov 19, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101027855.

Texas Trial Lawyers Association PAC

$30,000.00

Cash: $30,000.00
Paid by others: $0.00
Total: $30,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 19, 2024 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012345, 101027855, 101058317, 101068299, 101071424.

Kickapoo Traditional Tribe of Texas

$20,000.00

Cash: $20,000.00
Paid by others: $0.00
Total: $20,000.00

Also funds 53 other sitting lawmakers.

Derived recipient stock · Aug 15, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · on Jun 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101058317.

Votes

No floor vote loaded for this bill.

Witnesses9

For: 8
Against: 0
On: 1

Names

For

Plumbing-Heating-Cooling Contractors Association (PHCC)1 registration
Self1 registration
Self; IBEW Local Union 601 registration
Self; Texas State Association of Electrical Workers1 registration
Texas Air Conditioning Contractors Association1 registration
Texas Association of Builders1 registration
Texas Association of Manufacturers1 registration
Texas Construction Association1 registration

On

Texas Comptroller of Public Accounts1 registration

Sources

9 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version H · ( ) = negative · source

Sources

Fiscal note · version H · May 9, 2025

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 2422

by Rep. Lozano, different lead author · Died in committee · same text

Introduced text

Last action, Mar 13, 2023: Referred to Ways & Means

Relating to an exemption from sales and use taxes for tools and equipment of skilled trade workers for a limited period.

Caption, 88R bill history

Sources

Texas House · Filed Feb 27, 2025

05/14/2025 H Placed on General State Calendar

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Oct 26, 2026 at 6:51 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Committee vote 11 aye, 1 nay, 1 absent · Out of committee

Subjects

Taxation--Sales

Text

The text as introduced · 433 words

By: Martinez Fischer
H.B. No. 3504

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from sales and use taxes for tools and

equipment of skilled trade workers for a limited period.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended

by adding Section 151.360 to read as follows:

Sec. 151.360. TOOLS AND EQUIPMENT OF SKILLED TRADE WORKERS

FOR LIMITED PERIOD. (a) In this section, "skilled trade tool item"

means:

(1) an item listed in this subdivision, the sales

price of which is less than $300:

(A) a toolbox for a vehicle; or

(B) a power tool;

(2) a pair of work boots, the sales price of which is

less than $175;

(3) an item listed in this subdivision, the sales

price of which is less than $150:

(A) a power tool battery;

(B) handheld pipe cutters;

(C) a drain opening tool; or

(D) plumbing inspection equipment;

(4) an industry textbook or codebook, the sales price

of which is less than $125;

(5) an item listed in this subdivision, the sales

price of which is less than $100:

(A) a tool belt;

(B) electrical voltage testing equipment; or

(C) a shop light;

(6) a toolbox, the sales price of which is less than

$75;

(7) an item listed in this subdivision, the sales

price of which is less than $50:

(A) a hand tool;

(B) a pair or set of safety glasses;

(C) protective coveralls;

(D) a duffle bag or tote bag;

(E) an LED flashlight; or

(8) a pair of work gloves, the sales price of which is

less than $25.

(b) The sale of a skilled trade tool item is exempted from

the taxes imposed by this chapter if the sale takes place during a

period beginning at 12:01 a.m. on the first Friday in September and

ending at 11:59 p.m. on the following Monday.

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 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.