Regular Session
Texas Comptroller of Public Accounts
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This bill's path through the Texas Legislature
BILL ANALYSIS
| Senate Research Center | S.B. 1415 |
| 89R13564 JBD-D | By: Hughes |
| Finance | |
| 3/10/2025 | |
| As Filed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Texas has four sales and use tax holidays: emergency preparation supplies in April; Texas EnergyStar on Memorial Day weekend; water-efficient products on Memorial Day weekend; and school items in August.
Clothing, footwear, and school supplies (valued at less than $100) can be purchased tax free during the back-to-school sales tax holiday in August. According to Section 151.326(a) of the Tax Code, the sales tax free weekend for school items starts on a Friday that is 15 days before the uniform school start date (which is the fourth Monday in August). If the fourth Monday in August occurs late in the month, the back-to-school tax free weekend may not occur until mid-August, too late to benefit many families that have school start dates earlier than the uniform date.
S.B. 1415 remedies this situation by setting the tax free weekend for school items to be the first weekend following July 30.
As proposed, S.B. 1415 amends current law relating to the sales tax exemption period for clothing, footwear, and certain school-related items.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 151.326(a), Tax Code, as follows:
(a) Provides that the sale of an article of clothing or footwear designed to be worn on or about the human body is exempted from the taxes imposed by Chapter 151 (Limited Sales, Excise, and Use Tax) if:
(1) makes no changes to this subdivision; and
(2) the sale takes place during a period beginning at 12:01 a.m. on the Friday immediately preceding the first Saturday that follows July 30, rather than the Friday before the 15th day preceding the uniform date prescribed by Section 25.0811(a) (relating to prohibiting a school district from beginning instruction for students for a school year before the fourth Monday in August), Education Code, without regard to any exception authorized by Section 25.0811 (First Day of Instruction), before which a school district is prohibited from beginning instruction for the school year, and ending at 12 midnight on the following Sunday.
SECTION 2. Provides that the change in law made by this Act does not affect tax liability accruing before the effective date of this Act. Provides that that liability continues in effect as if this Act had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability for those taxes.
SECTION 3. Effective date: September 1, 2025.�
| S.B. No. 1415 | ||
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| relating to the sales tax exemption period for clothing, footwear, | ||
| and certain school-related items. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 151.326(a), Tax Code, is amended to read | ||
| as follows: | ||
| (a) The sale of an article of clothing or footwear designed | ||
| to be worn on or about the human body is exempted from the taxes | ||
| imposed by this chapter if: | ||
| (1) the sales price of the article is less than $100; | ||
| and | ||
| (2) the sale takes place during a period beginning at | ||
| 12:01 a.m. on the first Friday in August [ |
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| Sunday. | ||
| SECTION 2. The change in law made by this Act does not | ||
| affect tax liability accruing before the effective date of this | ||
| Act. That liability continues in effect as if this Act had not been | ||
| enacted, and the former law is continued in effect for the | ||
| collection of taxes due and for civil and criminal enforcement of | ||
| the liability for those taxes. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Joan Huffman, Chair, Senate Committee on Finance |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | SB1415 by Hughes (Relating to the sales tax exemption period for clothing, footwear, and certain school-related items.), As Introduced |
| Source Agencies: | 304 Comptroller of Public Accounts |
| LBB Staff: | JMc, KK, SD |
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Common questions about SB1415
SB1415 amends the Texas Tax Code to permanently fix the annual Sales Tax Holiday dates to the first weekend of August, eliminating the variable schedule previously tied to school district start dates. This change impacts all Texas retailers of apparel, footwear, and school supplies, providing long-term certainty for inventory and workforce planning starting in the 2026 tax year. Implementation Timeline Effective Date: September 1, 2025.
SB1415 was authored by Texas Senator Bryan Hughes during the Regular Session.
SB1415 was signed into law by Governor Greg Abbott on May 19, 2025.
SB1415 is enforced by Texas Comptroller of Public Accounts.
The compliance urgency for SB1415 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of SB1415 is estimated as "low". This may vary based on industry and implementation requirements.
SB1415 addresses topics including taxation, taxation--sales and school clothes & school supplies.
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