Labor Day sales tax holiday for work tools

The text as introduced · 420 words

90R406 CJD-F

By: Martinez Fischer
H.B. No. 297

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from sales and use taxes for certain

qualified tools and equipment 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. CERTAIN QUALIFIED TOOLS AND EQUIPMENT FOR

LIMITED PERIOD. (a) In this section, "qualified tool or equipment

item" means:

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

price of which is less than the greater of $225 or the amount

provided by Subsection (c):

(A) a power tool;

(B) a pair of work boots;

(C) a job box, toolbox, or tool organizer; or

(D) an industry textbook or codebook; or

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

price of which is less than the greater of $100 or the amount

provided by Subsection (c):

(A) a hand tool;

(B) a pair or set of safety glasses;

(C) protective coveralls; or

(D) a pair of work gloves.

(b) The sale of a qualified tool or equipment 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 Friday

preceding the first Monday in September and ending at 11:59 p.m. on

the first Monday in September.

(c) Beginning January 1, 2029, on January 1 of each fifth

year, the amounts prescribed by Subsections (a)(1) and (2),

respectively, are increased by an amount equal to the amount

prescribed by the applicable subsection on December 31 of the

preceding year, as previously adjusted under this subsection,

multiplied by the cumulative percentage increase, if any, in the

consumer price index during the preceding five-year period and

rounded to the nearest five dollars. 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. 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, 2028.