HB 131 — An exemption from sales

90R911 SRA-D By: Raymond H.B. No. 131 relating to an exemption from sales and use taxes for taxable items purchased by a totally disabled veteran.

SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended by adding Section 151.3272 to read as follows: Sec. 151.3272. TAXABLE ITEMS PURCHASED BY TOTALLY DISABLED VETERAN. (a) In this section: (1) "Disability rating" and "disabled veteran" have the meanings assigned by Section 11.22. (2) "Qualified disabled veteran" means a disabled veteran with a disability rating of 100 percent. (b) Subject to Subsection (d), the sale or storage, use, or other consumption of a taxable item purchased by a qualified disabled veteran or a person authorized to make purchases on behalf of a qualified disabled veteran is exempted from the taxes imposed by this chapter if the qualified disabled veteran or authorized person completes, signs, and presents at the time of purchase the exemption certificate form described by Subsection (c). (c) The comptroller shall develop an exemption certificate form that a qualified disabled veteran or authorized person must complete and use to claim the exemption provided by Subsection (b). The comptroller shall make the form available on the comptroller's Internet website. (d) The exemption provided by Subsection (b) applies only to the first $25,000 of taxable items purchased in a calendar year by a qualified disabled veteran or authorized person.

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 October 1, 2027.