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 new section defines "qualified disabled veteran" and outlines the process for claiming the exemption, which requires the completion and presentation of an exemption certificate form at the time of purchase. The comptroller of public accounts is tasked with developing and making this form available on their website.

Additionally, the exemption applies only to the first $25,000 of taxable items purchased in a calendar year by a qualified disabled veteran or an authorized person. The bill mandates that the comptroller post the exemption certificate form on their website by December 31, 2025, and clarifies that the changes do not affect tax liabilities that accrued before the effective date of the Act. The Act will take effect 91 days after the end of the legislative session, unless otherwise specified.

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