TITLE: Relating to an exemption from sales and use taxes for certain educational materials.

SUMMARY: Relating to an exemption from sales and use taxes for certain educational materials.

FULL TEXT:
AN ACT relating to an exemption from sales and use taxes for certain educational materials. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 151.327, Tax Code, is amended by amending Section 151.327, Subsection (a), and adding Subsection (a)(3)to read as follows: Sec. 151.327. SCHOOL SUPPLIES,EDUCATIONAL MATERIALS, AND SCHOOL BACKPACKS [BEFORE START OF SCHOOL.] (a) In this section: (1) "Backpack" means a messenger bag, book bag, or a pack with straps that a person wears on the person's back, including a backpack with wheels if the backpack can also be worn on the back. The term does not include an item that is commonly considered luggage, a briefcase, an athletic bag, a duffle bag, a gym bag, a computer bag, a purse, or a framed backpack. (2) "Educational materials" include tools necessary for in-class learning, such as textbooks and school computers. The term does not include personal-use technology, such as laptops. (3) [(2)] "School supply" has the meaning assigned by the Streamlined Sales and Use Tax Agreement adopted November 12, 2002, including all amendments made to the agreement on or before December 14, 2006. (a-1) The sale or storage, use, or other consumption of a school supply,educational material, or a school backpack is exempted from the taxes imposed by this chapter if the school supply,educational material, or backpack is purchased: (1) for use by a student in a public or private elementary or secondary school or institute of higher education;(2) during the period described by Section 151.326(a)(2); and (2) [(3)] for a sales price of less than $100 concerning school supplies and textbooks and a sales price of less than $175 concerning school computers.(b) A retailer is not required to obtain an exemption certificate stating that school supplies,educational materials, or school backpacks are purchased for use by students in a public or private elementary or secondary school or institute of higher education unless the school supplies,educational materials, or backpacks are purchased in a quantity that indicates that the school supplies,educational materials, or backpacks are not purchased for use by students in a public or private elementary or secondary school or institute of higher education. SECTION 2. This Act takes effect September 1, 2025.