The bill amends Section 151.326(a) of the Texas Tax Code to establish a sales tax exemption period for clothing, footwear, and certain school-related items. The new language specifies that the exemption applies to sales of articles priced under $100, occurring during a period that begins at 12:01 a.m. on the first Friday in August and ends at 12 midnight on the following Sunday. This change replaces the previous language that referenced a specific date related to school district instruction start dates.

Additionally, the bill clarifies that the changes in law will not affect any tax liabilities that accrued before the effective date of the Act, which is set for September 1, 2025. This ensures that any tax obligations incurred prior to this date will still be governed by the former law for purposes of tax collection and enforcement.

Statutes affected:
Introduced: Tax Code 151.326 (Tax Code 151)
House Committee Report: Tax Code 151.326 (Tax Code 151)