H.B. No. 4052 proposes an amendment to the Texas Tax Code by adding Section 151.3261, which establishes an exemption from sales and use taxes for certain resale clothing and footwear items. The bill defines "resale clothing" as items that have been previously sold or used and are subsequently sold by retailers, including thrift stores and consignment shops. However, the exemption does not apply to clothing or footwear that has been materially modified to increase its value, sold as luxury or upcycled items at a higher price than typical resale values, or items that were previously sold as a sale for resale under Section 151.302.

The bill clarifies that the sale, storage, use, or consumption of eligible resale clothing is exempt from taxes imposed by the chapter. It also specifies that the changes made by this Act do not affect tax liabilities that accrued before its effective date of September 1, 2025, meaning that previous tax laws will remain in effect for any taxes due prior to this date.

Statutes affected:
Introduced: ()