89R3539 RDS-D
	By: Shaheen	H.B. No. 2162

	A BILL TO BE ENTITLED
	AN ACT
	relating to the classification of certain sales of firearms as
	occasional sales for purposes of sales and use taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 151.304(b), (c), (d), (f), and (g), Tax
	Code, are amended to read as follows:
	(b)  In this section:
	(1)  "Firearm" has the meaning assigned by 18 U.S.C.
	Section 921(a)(3).
	(2)  "Occasional[, "occasional] sale" means:
	(A) [(1)]  one or two sales of taxable items,
	other than an amusement service, at retail during a 12-month period
	by a person who does not habitually engage, or hold himself out as
	engaging, in the business of selling taxable items at retail;
	(B) [(2)]  the sale of the entire operating assets
	of a business or of a separate division, branch, or identifiable
	segment of a business;
	(C) [(3)]  a transfer of all or substantially all
	the property used by a person in the course of an activity if after
	the transfer the real or ultimate ownership of the property is
	substantially similar to that which existed before the transfer;
	(D) [(4)]  the sale of not more than 10 admissions
	for amusement services during a 12-month period by a person who does
	not hold himself out as engaging, or does not habitually engage, in
	providing amusement services; or
	(E) [(5)]  the sale of tangible personal property
	by an individual if:
	(i) [(A)]  the property was originally
	bought by the individual or a member of the individual's family for
	the personal use of the individual or the individual's family;
	(ii) [(B)]  the individual does not hold a
	permit issued under this chapter and is not required to obtain a
	permit as a "seller" or "retailer" as those terms are defined by
	Section 151.008;
	(iii) [(C)]  the individual does not employ
	an auctioneer, broker, or factor, other than an online auction, to
	sell the property and the property is not a firearm, or if the
	property is a firearm, does not employ a broker or factor, other
	than an online auction, to sell the property; and
	(iv) [(D)]  the individual's total receipts
	from sales of the individual's tangible personal property in a
	calendar year do not exceed $3,000 for sales of property not
	including firearms and do not exceed $6,000 for sales of firearms.
	(c)  Within the meaning of Subsection (b)(2)(B) [(b)(2) of
	this section], a separate division, branch, or identifiable segment
	of a business exists if before its sale the income and expenses
	attributable to the separate division, branch, or segment could be
	separately ascertained from the books of account or record.
	(d)  Within the meaning of Subsection (b)(2)(C) [(b)(3) of
	this section], the stockholders, bondholders, partners, or other
	persons holding an interest in a corporation or other entity have
	the real or ultimate ownership of the property of the corporation or
	other entity.
	(f)  Subsection (b)(2)(A) [(b)(1) of this section] does not
	apply to a sale made by a person who holds a permit issued pursuant
	to the provisions of this chapter.
	(g)  A person who holds a permit issued under this chapter
	and makes a purchase from a person entitled to claim the exemption
	provided by Subsection (b)(2)(A) [(b)(1) of this section] shall
	accrue use tax on the transaction and remit it to the comptroller.
	SECTION 2.  The change in law made by this Act does 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 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.