The bill proposes an exemption from sales and use taxes for certain qualified tools and equipment for a limited period. It introduces a new section, Section 151.360, to the Tax Code, defining "qualified tool or equipment item" and categorizing them based on their sales price. Items that qualify include power tools, work boots, job boxes, industry textbooks, hand tools, safety glasses, protective coveralls, and work gloves, with specific price thresholds set at $225 and $100. The exemption applies to sales occurring during a designated period starting at 12:01 a.m. on the Friday before the first Monday in September and ending at 11:59 p.m. on that Monday.

Additionally, the bill stipulates that starting January 1, 2027, the price thresholds for qualified items will be adjusted every five years based on the cumulative percentage increase in the consumer price index. The bill clarifies that it does not affect any tax liabilities that accrued before its effective date of September 1, 2026, ensuring that previous laws remain in effect for the collection and enforcement of those taxes.

Statutes affected:
Introduced: ()
House Committee Report: ()