Bill > HB3398

This bill modifies the requirements for customs brokers when issuing export documentation for sales and use tax purposes in Texas. The bill significantly simplifies the previously complex verification process by reducing the documentation requirements to essentially two methods: either physically watching the property cross the U.S. border or observing the property being placed on a common carrier for international delivery. The previous law required multiple steps of verification, including examining passports, collecting detailed purchaser information, and having purchasers complete extensive forms with specific declarations. The new provisions maintain key documentation requirements such as including the broker's name and license number, purchaser details, sale information, and an export certification stamp, but remove the extensive purchaser interview and documentation process. The bill specifies that a single proof of export documentation can cover up to six receipts, and it clarifies that the foreign country destination cannot be the same as the place of export. Importantly, the changes do not affect tax liabilities that accrued before the law's effective date, which is set for September 1, 2025, ensuring a smooth transition for customs brokers and taxpayers.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3398