The bill, S.B. No. 2020, proposes amendments to the Texas Tax Code to exclude real property repair and remodeling services from sales and use taxes. Specifically, it removes the classification of "real property repair and remodeling" from the list of taxable services in Section 151.0101(a) and repeals related sections, including 151.0047 and 151.3501. Additionally, it clarifies that labor to restore tangible personal property is exempt from taxes if the charge for labor is separately itemized and the restoration occurs on property damaged in a disaster area.

The bill also makes adjustments to the definitions and provisions related to the sale of taxable items by marketplace sellers, ensuring that such sales are consummated at the location where the item is delivered or where possession is taken by the purchaser. The changes will take effect on September 1, 2025, and will not affect tax liabilities that accrued before this date, allowing for the continued enforcement of the former law for those taxes.

Statutes affected:
Introduced: Tax Code 151.0101, Tax Code 151.350, Tax Code 151.0047 (Tax Code 151)