Texas HB4052 exempts resale clothing and footwear from sales and use taxes.

Texas HB4052 amends the Tax Code to exempt the sale, storage, use, or other consumption of resale clothing and footwear from sales and use taxes. Resale clothing is defined as clothing or footwear that was previously sold or used and is subsequently sold by a seller or retailer, including items sold by thrift stores or consignment shops. The exemption does not apply to items that have been materially modified to significantly increase their value, sold as luxury or upcycled fashion items at a higher price, or if the immediately preceding sale qualified as a sale for resale.

Texas HB4052 exempts resale clothing and footwear from sales and use taxes.

Texas HB4052 amends the Tax Code to exempt the sale, storage, use, or other consumption of resale clothing and footwear from sales and use taxes. Resale clothing is defined as clothing or footwear that was previously sold or used and is subsequently sold by a seller or retailer, including items sold by thrift stores or consignment shops. The exemption does not apply to items that have been materially modified to significantly increase their value, sold as luxury or upcycled fashion items at a higher price, or if the immediately preceding sale qualified as a sale for resale.