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89(R) HB 3504 - House Committee Report version - Bill Text
89R28320 CJD-F
By: Martinez Fischer
H.B. No. 3504
Substitute the following for H.B. No. 3504:
By: Turner
C.S.H.B. No. 3504
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, 2027, 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 that subsection on December 31 of the preceding year
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, 2026.