Bill > HB3504

This bill creates a temporary sales and use tax exemption for certain work-related tools and equipment during a specific time period. Specifically, the bill exempts qualified items like power tools, work boots, job boxes, hand tools, safety glasses, protective coveralls, and work gloves from sales tax if they are purchased between 12:01 a.m. on the Friday before Labor Day and 11:59 p.m. on Labor Day, with price limitations (under $225 for items like power tools and job boxes, and under $100 for items like hand tools and safety glasses). The exemption amounts will be automatically adjusted every five years starting January 1, 2027, based on the Consumer Price Index for All Urban Consumers (CPI-U) to account for inflation, with the new amounts rounded to the nearest five dollars. The bill clarifies that this tax exemption does not affect any tax liabilities that existed before its effective date, and it will take effect on September 1, 2026, offering a future tax break for workers and professionals who need to purchase work-related equipment and tools.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3504