87R1081 SMT-D
By: Sanford H.B. No. 3573
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain payment processing services
from the definition of "data processing service" for purposes of
sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.0035, Tax Code, is amended to read as
follows:
Sec. 151.0035. "DATA PROCESSING SERVICE". (a) "Data
processing service" includes word processing, data entry, data
retrieval, data search, information compilation, payroll and
business accounting data production, the performance of a
totalisator service with the use of computational equipment
required by Subtitle A-1, Title 13, Occupations Code (Texas Racing
Act), and other computerized data and information storage or
manipulation. "Data processing service" also includes the use of a
computer or computer time for data processing whether the
processing is performed by the provider of the computer or computer
time or by the purchaser or other beneficiary of the service.
(b) "Data processing service" does not include:
(1) the transcription of medical dictation by a
medical transcriptionist; or
(2) the processing of a payment made by credit card or
debit card.
(c) "Data storage," as used in this section, does not
include a classified advertisement, banner advertisement, vertical
advertisement, or link when the item is displayed on an Internet
website owned by another person.
SECTION 2. The changes in law made by this Act do 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 September 1, 2021.