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SB1415

Regular Session

Relating to the sales tax exemption period for clothing, footwear, and certain school-related items.

Moderate
Low Cost
Effective:2025-09-01
SB1415
Moderate
Relating to the sales tax exemption period for clothing, footwear, and certain school-related items.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas Comptroller of Public Acco...
Primary Author: Sen. Bryan Hughes
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: August 7, 2026.
  • *CRITICAL WARNING:* Because the law becomes effective September 1, 2025, the August 2025 Sales Tax Holiday will proceed under the *old* variable rules. The new fixed schedule applies for the first time to the August 2026 holiday.
  • Agency Rulemaking: The Comptroller is not required to write complex new rules but is expected to issue guidance confirming that the "School Supplies" holiday (Sec. 151.327) synchronizes with this new schedule for "Clothing" (Sec. 151.326) prior to the 2026 holiday.

Immediate Action Plan

  • 1. Flag the 2025 Gap: Explicitly instruct your tax compliance team not to apply the new fixed-date logic to the upcoming August 2025 holiday.
  • 2. Update Long-Range Calendars: Hard-code the first Friday of August as the start date for all merchandising and staffing plans for 2026, 2027, and beyond.
  • 3. Configure ERP Systems: Schedule a mandatory update for your Point-of-Sale and ERP systems to occur post-September 1, 2025, to automate the tax holiday trigger for August 2026.
  • 4. Notify Vendors: Inform key inventory suppliers of the permanent new schedule to align shipping windows.

Operational Changes Required

Contracts

  • Marketing & Advertising: You may now execute multi-year media buy contracts for the first weekend of August without waiting for annual Comptroller date announcements.
  • Logistics & Supply Chain: Update vendor agreements to permanently schedule "Just-in-Time" inventory surges for school supplies and qualifying apparel to arrive during the last week of July.
  • Commercial Leases: Review lease covenants regarding operating hours; if you plan to extend hours during this fixed weekend, ensure you are not restricted by standard mall/center operating clauses.

Hiring/Training

  • Staffing Schedules: Permanently designate the first weekend of August as a "Blackout Period" for retail floor staff and customer support vacation requests.
  • IT/POS Support: Schedule IT support for the first Friday of August annually to ensure tax-exemption logic triggers correctly at 12:01 a.m.

Reporting & Record-Keeping

  • Transaction Logs: No new reporting forms are introduced. Continue to maintain transaction logs proving items sold tax-free were eligible goods under $100.
  • Audit Defense: Ensure server clocks are synchronized to Central Daylight Time (CDT) to defend the timestamp of online transactions occurring near the 12:01 a.m. start and Sunday midnight cutoff.

Fees & Costs

  • No New Fees: There are no new state fees associated with this change.
  • Cost Savings: Anticipate reduced administrative costs previously associated with annual reprogramming of POS systems for variable dates.

Strategic Ambiguities & Considerations

  • Cross-Statute Synchronization: The bill text explicitly amends Section 151.326 (Clothing/Footwear) but does not explicitly amend the text of Section 151.327 (School Supplies). While the Legislative Budget Board states the change affects both, businesses should monitor for a Comptroller Policy Letter confirming that School Supplies will definitively track with the Clothing dates to avoid a split-holiday scenario.
  • E-Commerce Time Zones: The statute defines the window as "12:01 a.m... ending at 12 midnight" without specifying a time zone. For out-of-state sellers, the Comptroller generally enforces the time zone of the *destination* (Texas). Ensure your e-commerce tax engines do not default to Pacific or Eastern time, which could result in under-collection or over-collection errors.

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Information 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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 19, 2025
Passed Senate
Apr 10, 2025
Passed House
Apr 29, 2025
Signed
May 19, 2025
TopicsTaxationTaxation--salesSchool Clothes & School Supplies
03

Senate Authors

Sen. Bryan HughesRepublican · Primary Author
Coauthors (4)

House Sponsors

Rep. Lacey HullRepublican · Primary Sponsor
Cosponsors (6)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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More from Sen. Bryan Hughes

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Quick Reference

Frequently Asked Questions

Common questions about SB1415

Q

What does Texas SB1415 do?

SB1415 amends the Texas Tax Code to permanently fix the annual Sales Tax Holiday dates to the first weekend of August, eliminating the variable schedule previously tied to school district start dates. This change impacts all Texas retailers of apparel, footwear, and school supplies, providing long-term certainty for inventory and workforce planning starting in the 2026 tax year. Implementation Timeline Effective Date: September 1, 2025.

Q

Who authored SB1415?

SB1415 was authored by Texas Senator Bryan Hughes during the Regular Session.

Q

When was SB1415 signed into law?

SB1415 was signed into law by Governor Greg Abbott on May 19, 2025.

Q

Which agencies enforce SB1415?

SB1415 is enforced by Texas Comptroller of Public Accounts.

Q

How urgent is compliance with SB1415?

The compliance urgency for SB1415 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB1415?

The cost impact of SB1415 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1415 address?

SB1415 addresses topics including taxation, taxation--sales and school clothes & school supplies.

Legislative data provided by LegiScanLast updated: November 25, 2025

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