The bill, H.B. No. 3437, proposes to decrease the state sales and use tax rate in Texas from 6.25% to 5.25%. This change is reflected in the amendment to Section 151.051(b) of the Tax Code, where the new tax rate is inserted while the previous rate is deleted.

Additionally, the bill clarifies that the new tax rate will not affect any tax liabilities that accrue before the effective date of the Act, which is set for October 1, 2025. This means that any taxes owed prior to this date will still be governed by the previous law, ensuring continuity in tax collection and enforcement.

Statutes affected:
Introduced: Tax Code 151.051 (Tax Code 151)