Regular Session
Key implementation requirements and action items for compliance with this legislation
Review Master Service Agreements (MSAs) and purchase orders with breeders or stock suppliers. If current contracts state prices are "inclusive of all applicable taxes," renegotiate immediately. You must ensure the 6.25% (plus local) tax savings are realized by the purchaser and not retained as margin by the seller.
Accounting and Point-of-Sale (POS) staff must be trained to distinguish between statutory "Game/Exotic" animals (exempt) and non-qualifying animals (pets). Update invoicing software SKUs for game and exotic animals from "Taxable" to "Exempt" immediately to prevent automated tax accrual.
While the sale is exempt, the paper trail is mandatory for audit defense.
This legislation reduces transaction costs. There are no new fees. However, Section 2 of the bill explicitly states that tax liability accrued *prior* to May 13, 2025, remains due. Do not attempt to claim refunds or adjust books for transactions finalized before this date.
The law relies on definitions found in the Parks and Wildlife Code (Sec. 63.001) and Tax Code (Sec. 23.51).
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Schedule ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB135
Effective May 13, 2025, Texas HB135 explicitly exempts the sale of game and exotic animals from state sales and use tax, codifying what was previously an enforcement practice into statutory law. This change immediately impacts game ranches, exotic breeders, and outfitters, who must cease collecting sales tax on qualifying transactions to remain compliant with Tax Code Section 151. 316(a).
HB135 was authored by Texas Representative Angie Button during the Regular Session.
HB135 was signed into law by Governor Greg Abbott on May 13, 2025.
HB135 is enforced by Texas Comptroller of Public Accounts.
The compliance urgency for HB135 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB135 is estimated as "low". This may vary based on industry and implementation requirements.
HB135 addresses topics including animals, taxation and taxation--sales.
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