S.B. No. 1603 proposes an amendment to Section 151.3131 of the Texas Tax Code, which introduces an exemption from sales and use taxes for firearms, ammunition, and related items. The bill replaces the term "firearm safety equipment" with "firearms and related items" and provides definitions for "ammunition," "firearm," and "firearm accessory" based on federal law. The amendment clarifies that the sale, storage, use, or other consumption of firearms, firearm accessories, ammunition, and firearm safety equipment will be exempt from the taxes imposed by the chapter.

Additionally, the bill specifies that the changes in tax law will not affect any tax liabilities that accrued before the effective date of the Act, which is set for September 1, 2025. This means that any tax obligations incurred prior to this date will remain enforceable under the previous law.

Statutes affected:
Introduced: Tax Code 151.3131 (Tax Code 151)