Bill > HB2481

This bill modifies Texas tax law to expand sales tax exemptions for clothing, footwear, and school-related items during the back-to-school shopping period. Specifically, the bill increases the price threshold for tax-exempt items from $100 to $150, applying to clothing, footwear, school supplies, and school backpacks purchased during a specific weekend before the start of the school year. Additionally, the bill introduces an annual adjustment mechanism where the $150 threshold will be automatically increased on January 1st of each year starting in 2026, based on the Consumer Price Index for All Urban Consumers (CPI-U), which measures changes in the prices paid by urban consumers for goods and services. This adjustment will be rounded to the nearest dollar and helps ensure the tax exemption keeps pace with inflation. The bill will take effect immediately if it receives a two-thirds vote in the Texas legislature, otherwise it will become effective on September 1, 2025, and does not retroactively change tax liability for periods before its effective date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2481