Bill Text: TX HB2162 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the classification of certain sales of firearms as occasional sales for purposes of sales and use taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-28 - Filed [HB2162 Detail]

Download: Texas-2025-HB2162-Introduced.html

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89R3539 RDS-D
By: Shaheen H.B. No. 2162

A BILL TO BE ENTITLED
AN ACT
relating to the classification of certain sales of firearms as
occasional sales for purposes of sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 151.304(b), (c), (d), (f), and (g), Tax
Code, are amended to read as follows:
(b) In this section:
(1) "Firearm" has the meaning assigned by 18 U.S.C.
Section 921(a)(3).
(2) "Occasional[, "occasional] sale" means:
(A) [(1)] one or two sales of taxable items,
other than an amusement service, at retail during a 12-month period
by a person who does not habitually engage, or hold himself out as
engaging, in the business of selling taxable items at retail;
(B) [(2)] the sale of the entire operating assets
of a business or of a separate division, branch, or identifiable
segment of a business;
(C) [(3)] a transfer of all or substantially all
the property used by a person in the course of an activity if after
the transfer the real or ultimate ownership of the property is
substantially similar to that which existed before the transfer;
(D) [(4)] the sale of not more than 10 admissions
for amusement services during a 12-month period by a person who does
not hold himself out as engaging, or does not habitually engage, in
providing amusement services; or
(E) [(5)] the sale of tangible personal property
by an individual if:
(i) [(A)] the property was originally
bought by the individual or a member of the individual's family for
the personal use of the individual or the individual's family;
(ii) [(B)] the individual does not hold a
permit issued under this chapter and is not required to obtain a
permit as a "seller" or "retailer" as those terms are defined by
Section 151.008;
(iii) [(C)] the individual does not employ
an auctioneer, broker, or factor, other than an online auction, to
sell the property and the property is not a firearm, or if the
property is a firearm, does not employ a broker or factor, other
than an online auction, to sell the property; and
(iv) [(D)] the individual's total receipts
from sales of the individual's tangible personal property in a
calendar year do not exceed $3,000 for sales of property not
including firearms and do not exceed $6,000 for sales of firearms.
(c) Within the meaning of Subsection (b)(2)(B) [(b)(2) of
this section], a separate division, branch, or identifiable segment
of a business exists if before its sale the income and expenses
attributable to the separate division, branch, or segment could be
separately ascertained from the books of account or record.
(d) Within the meaning of Subsection (b)(2)(C) [(b)(3) of
this section], the stockholders, bondholders, partners, or other
persons holding an interest in a corporation or other entity have
the real or ultimate ownership of the property of the corporation or
other entity.
(f) Subsection (b)(2)(A) [(b)(1) of this section] does not
apply to a sale made by a person who holds a permit issued pursuant
to the provisions of this chapter.
(g) A person who holds a permit issued under this chapter
and makes a purchase from a person entitled to claim the exemption
provided by Subsection (b)(2)(A) [(b)(1) of this section] shall
accrue use tax on the transaction and remit it to the comptroller.
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 immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.