HB 1251

relating to an exemption from sales and use taxes for certain
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
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
(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
(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.