TX HB4052

Exempts "resale clothing" from state sales and use taxes, defined as previously sold or used clothing and footwear subsequently sold by thrift stores, consignment shops, or similar establishments

Excludes from the exemption items that have been materially modified to intentionally increase their value significantly beyond the original resale price

Excludes luxury or upcycled fashion items sold at prices higher than typical resale values for similar used clothing or footwear

Excludes items where the immediately preceding sale qualified as a sale for resale under existing tax code provisions

Takes effect September 1, 2025, with no retroactive application to tax liability accrued before that date