The bill, H.B. No. 2162, proposes amendments to the Texas Tax Code regarding the classification of certain firearm sales as "occasional sales" for sales and use tax purposes. It defines "firearm" according to federal law and modifies the definition of "occasional sale" to include specific conditions under which individuals can sell firearms without being classified as retailers. Notably, the bill allows individuals to sell firearms as long as their total receipts from such sales do not exceed $6,000 in a calendar year, while also stipulating that the individual must not hold a seller's permit or employ a broker for the sale.

Additionally, the bill clarifies that the provisions regarding occasional sales do not apply to individuals holding a permit under the chapter, and it mandates that such permit holders must accrue use tax on transactions with individuals claiming the occasional sale exemption. The changes in law will not affect tax liabilities that accrued before the bill's effective date, ensuring that previous tax obligations remain enforceable. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 151.304 (Tax Code 151)