Bill Text: TX HB3089 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the exclusion of real property repair and remodeling services from sales and use taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-20 - Filed [HB3089 Detail]

Download: Texas-2025-HB3089-Introduced.html

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89R2667 RDS-D
By: Tepper H.B. No. 3089

A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of real property repair and remodeling
services from sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.0101(a), Tax Code, is amended to
read as follows:
(a) "Taxable services" means:
(1) amusement services;
(2) cable television services;
(3) personal services;
(4) motor vehicle parking and storage services;
(5) the repair, remodeling, maintenance, and
restoration of tangible personal property, except:
(A) aircraft;
(B) a ship, boat, or other vessel, other than:
(i) a taxable boat or motor as defined by
Section 160.001;
(ii) a sports fishing boat; or
(iii) any other vessel used for pleasure;
(C) the repair, maintenance, and restoration of a
motor vehicle; and
(D) the repair, maintenance, creation, and
restoration of a computer program, including its development and
modification, not sold by the person performing the repair,
maintenance, creation, or restoration service;
(6) telecommunications services;
(7) credit reporting services;
(8) debt collection services;
(9) insurance services;
(10) information services;
(11) real property services;
(12) data processing services;
(13) [real property repair and remodeling;
[(14)] security services;
(14) [(15)] telephone answering services;
(15) [(16)] Internet access service; and
(16) [(17)] a sale by a transmission and distribution
utility, as defined in Section 31.002, Utilities Code, of
transmission or delivery of service directly to an electricity
end-use customer whose consumption of electricity is subject to
taxation under this chapter.
SECTION 2. Sections 151.350(a) and (d), Tax Code, are
amended to read as follows:
(a) Labor to restore [real or] tangible personal property is
exempted from the taxes imposed by this chapter if:
(1) the amount of the charge for labor is separately
itemized; and
(2) the restoration is performed on property damaged
within a disaster area by the condition that caused the area to be
declared a disaster area.
(d) In this section, "restore" means:
(1) launder, clean, repair, treat, or apply protective
chemicals to an item, to the extent the service is a personal
service as defined in Section 151.0045; and
(2) repair, restore, or remodel, to the extent the
service is[:
[(A) a real property repair or remodeling service
as defined in Section 151.0047; or
[(B)] defined as a taxable service in Section
151.0101(a)(5).
SECTION 3. Section 321.203(e-1), Tax Code, is amended to
read as follows:
(e-1) Except as otherwise provided by Subsection (f), (g),
(g-1), (g-2), (g-3), (h), (i), (j), (k), or (m), [or (n),] a sale of
a taxable item made by a marketplace seller through a marketplace as
provided by Section 151.0242 is consummated at the location in this
state to which the item is shipped or delivered or at which
possession is taken by the purchaser.
SECTION 4. Section 323.203(e-1), Tax Code, is amended to
read as follows:
(e-1) Except as otherwise provided by Subsection (f), (g),
(g-1), (g-2), (g-3), (h), (i), (j), or (k), [or (m),] a sale of a
taxable item made by a marketplace seller through a marketplace as
provided by Section 151.0242 is consummated at the location in this
state to which the item is shipped or delivered or at which
possession is taken by the purchaser.
SECTION 5. Sections 151.0047, 151.3501, 321.203(n), and
323.203(m), Tax Code, are repealed.
SECTION 6. The changes in law made by this Act do 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 7. This Act takes effect September 1, 2025.