House Bill No. 3089 proposes amendments to the Texas Tax Code, specifically targeting the exclusion of real property repair and remodeling services from sales and use taxes. The bill amends Section 151.0101(a) by removing the classification of "real property repair and remodeling" as a taxable service, thereby exempting these services from sales tax. Additionally, it modifies Section 151.350(a) to clarify that labor for restoring tangible personal property is exempt from taxes if the charge is itemized and the restoration occurs in a disaster area. The bill also repeals Sections 151.0047, 151.3501, 321.203(n), and 323.203(m), which are related to the definitions and regulations surrounding these services.

Furthermore, the bill introduces new legal language in Sections 321.203(e-1) and 323.203(e-1) to specify the location where sales of taxable items made by marketplace sellers are considered consummated. The changes made by this Act will not affect tax liabilities that accrued before its effective date of September 1, 2025, ensuring that previous tax laws remain in effect for the collection and enforcement of those liabilities.

Statutes affected:
Introduced: Tax Code 151.0101, Tax Code 151.350, Tax Code 151.0047 (Tax Code 151)