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 introduces a new definition of "firearm" in accordance with federal law and modifies the existing definition of "occasional sale" to include specific conditions under which sales of firearms can be exempt from sales tax. Notably, the bill allows individuals to sell firearms without being classified as a retailer, provided their total receipts from firearm sales do not exceed $6,000 in a calendar year, while maintaining a $3,000 limit for other tangible personal property sales.

Additionally, the bill clarifies that the provisions regarding occasional sales do not apply to individuals holding a sales permit and establishes that such permit holders must accrue use tax on transactions with exempt sellers. The changes made by this Act will not retroactively affect tax liabilities that accrued before its effective date, ensuring that previous tax laws remain in effect for those obligations. The bill is set to take effect immediately upon receiving a two-thirds majority vote in both houses or on September 1, 2025, if that threshold is not met.

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