LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION May 7, 2021 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB153 by Perry (relating to the exclusion of certain payment processing services from the definition of "data processing service" for purposes of sales and use taxes.), Committee Report 2nd House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend Section 151.0035 of the Tax Code to exclude certain payment processing services from the definition of data processing service and provide definitions of terms associated with payment processing services, resulting in charges for these services being exempt from the sales and use tax. This would include services exclusively used to encrypt electronic payment information for acceptance onto a payment card network and settling of electronic payment transaction by a downstream payment processor or point of sale payment processor that routes electronic payment information.The bill would not affect tax liability accruing prior to October 1, 2021. The bill would take effect October 1, 2021.The bill provisions would apply exclusively to the fees charged to process and fund credit payments by banks, networks, and end card processing companies, and would have no significant fiscal impact on the state. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
May 7, 2021
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB153 by Perry (relating to the exclusion of certain payment processing services from the definition of "data processing service" for purposes of sales and use taxes.), Committee Report 2nd House, Substituted
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB153 by Perry (relating to the exclusion of certain payment processing services from the definition of "data processing service" for purposes of sales and use taxes.), Committee Report 2nd House, Substituted
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB153 by Perry (relating to the exclusion of certain payment processing services from the definition of "data processing service" for purposes of sales and use taxes.), Committee Report 2nd House, Substituted
SB153 by Perry (relating to the exclusion of certain payment processing services from the definition of "data processing service" for purposes of sales and use taxes.), Committee Report 2nd House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Section 151.0035 of the Tax Code to exclude certain payment processing services from the definition of data processing service and provide definitions of terms associated with payment processing services, resulting in charges for these services being exempt from the sales and use tax. This would include services exclusively used to encrypt electronic payment information for acceptance onto a payment card network and settling of electronic payment transaction by a downstream payment processor or point of sale payment processor that routes electronic payment information.The bill would not affect tax liability accruing prior to October 1, 2021. The bill would take effect October 1, 2021.The bill provisions would apply exclusively to the fees charged to process and fund credit payments by banks, networks, and end card processing companies, and would have no significant fiscal impact on the state.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK
JMc, KK