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 specifying the criteria for exemption. Items eligible for exemption include power tools, work boots, job boxes, hand tools, safety glasses, protective coveralls, and work gloves, with specific price thresholds set at $225 and $100, respectively. 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 outlines a mechanism for adjusting the price thresholds every five years based on the cumulative percentage increase in the consumer price index, starting January 1, 2027. It clarifies that the changes made by this Act do not affect 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.

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