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

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 former law, ensuring continuity in tax collection and enforcement.

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