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Bill

HB 4052

Relating to an exemption from sales and use taxes for certain resale clothing and footwear items.

89th Legislature (2025)

Texas bill exempts secondhand clothing and footwear from sales tax, reducing consumer costs but lowering state revenue and potentially disadvantaging new clothing retailers.

Referred to Ways & Means
#taxation--sales(i0800)
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Bill Summary · HB 4052

Legislative bill overview

HB 4052 would create a sales and use tax exemption for certain resale clothing and footwear items in Texas. The bill specifically targets secondhand or previously worn apparel and shoes sold through resale channels, removing state sales tax obligations on these transactions.

Why is this important

This exemption could reduce consumer costs for thrift store and resale clothing purchases, potentially supporting lower-income shoppers and the secondhand retail market. However, it also reduces state tax revenue, which funds public services, and creates different tax treatment between new and resale clothing vendors.

Potential points of contention

  • Revenue impact: Exempting resale clothing reduces state general revenue available for education, infrastructure, and services—the fiscal note will determine if this is significant
  • Market fairness: New clothing retailers may argue the exemption unfairly advantages resale competitors and creates unequal tax burdens across the industry
  • Definition challenges: The bill must clearly define "certain resale" items to avoid disputes; secondhand mixed-use items (clothing with logos, branded merchandise) could create gray areas
  • Administrative complexity: Tax collectors must distinguish between new and resale items at point of sale, potentially increasing compliance costs

Compiled from official sources — confirm details with the bill’s official record.

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