The bill, titled H.B. No. 235, proposes an exemption from sales and use taxes for taxable items purchased by totally disabled veterans, specifically those with a 100 percent disability rating. Effective January 1, 2026, the bill adds Section 151.3272 to Subchapter H, Chapter 151 of the Tax Code. This section defines key terms such as "disability rating" and "qualified disabled veteran," and outlines the process for claiming the exemption. A qualified disabled veteran or an authorized person must complete and present an exemption certificate form at the time of purchase to benefit from the tax exemption, which applies only to the first $25,000 of taxable items purchased in a calendar year.

Additionally, the bill mandates that the comptroller of public accounts develop and make available the exemption certificate form on their website by December 31, 2025. It clarifies that the changes made by this Act do not affect any tax liabilities that accrued before its effective date, ensuring that previous laws remain in effect for the collection and enforcement of those taxes. The Act will take effect 91 days after the conclusion of the legislative session, unless otherwise specified.

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