Texas 2021 - 87th Regular

Texas Senate Bill SB153 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 153
	1	+	87R21553 SMT-D
	2	+	By: Perry, et al. S.B. No. 153
	3	+	(Sanford, Burrows, Frullo)
	4	+	Substitute the following for S.B. No. 153: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to the exclusion of certain payment processing services
6	10		from the definition of "data processing service" for purposes of
7	11		sales and use taxes.
8	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	13		SECTION 1. Section 151.0035, Tax Code, is amended to read as
10	14		follows:
11	15		Sec. 151.0035. "DATA PROCESSING SERVICE". (a) "Data
12	16		processing service" includes:
13	17		(1) word processing, data entry, data retrieval, data
14	18		search, information compilation, payroll and business accounting
15	19		data production, and other computerized data and information
16	20		storage or manipulation;
17	21		(2) the performance of a totalisator service with the
18	22		use of computational equipment required by Subtitle A-1, Title 13,
19	23		Occupations Code (Texas Racing Act); and
20	24		(3) [, and other computerized data and information
21	25		storage or manipulation. "Data processing service" also includes]
22	26		the use of a computer or computer time for data processing whether
23	27		the processing is performed by the provider of the computer or
24	28		computer time or by the purchaser or other beneficiary of the
25	29		service.
26	30		(b) "Data processing service" does not include:
27	31		(1) the transcription of medical dictation by a
28	32		medical transcriptionist;
29	33		(2) services exclusively to encrypt electronic
30	34		payment information for acceptance onto a payment card network
31	35		described by Subdivision (3)(E) to comply with standards set by the
32	36		Payment Card Industry Security Standards Council; or
33	37		(3) settling of an electronic payment transaction by:
34	38		(A) a downstream payment processor or point of
35	39		sale payment processor that routes electronic payment information
36	40		to an entity described by Paragraph (C) or (E);
37	41		(B) a person who is engaged in the business of
38	42		money transmission and required to obtain a license under Section
39	43		151.302(a), Finance Code;
40	44		(C) a federally insured financial institution,
41	45		as defined by Section 201.101, Finance Code, that is organized
42	46		under the laws of this state, another state, or the United States,
43	47		or an affiliate of the institution;
44	48		(D) a person who has entered into a sponsorship
45	49		agreement with an entity described by Paragraph (C) for the purpose
46	50		of settling that entity's electronic payment transactions through a
47	51		payment card network; or
48	52		(E) a payment card network that allows a person
49	53		to accept a specific brand of debit or credit card by routing
50	54		information and data to settle an electronic payment transaction.
51	55		(c) For purposes of Subsection (b)(3):
52	56		(1) "Downstream payment processor" means a person
53	57		described by 7 T.A.C. Section 33.4(c), as that provision existed on
54	58		January 1, 2021.
55	59		(2) "Point of sale payment processor" means a person
56	60		described by 7 T.A.C. Section 33.4(d), as that provision existed on
57	61		January 1, 2021.
58	62		(3) "Settling of an electronic payment transaction"
59	63		means the authorization, clearing, or funding of a payment made by
60	64		credit card, debit card, gift card, stored value card, electronic
61	65		check, virtual currency, loyalty program currency such as points or
62	66		miles, or a similar method. The term does not include charges by a
63	67		marketplace provider, as that term is defined by Section 151.0242.
64	68		(d) "Data storage," as used in this section, does not
65	69		include a classified advertisement, banner advertisement, vertical
66	70		advertisement, or link when the item is displayed on an Internet
67	71		website owned by another person.
68	72		SECTION 2. The changes in law made by this Act do not affect
69	73		tax liability accruing before the effective date of this Act. That
70	74		liability continues in effect as if this Act had not been enacted,
71	75		and the former law is continued in effect for the collection of
72	76		taxes due and for civil and criminal enforcement of the liability
73	77		for those taxes.
74	78		SECTION 3. This Act takes effect October 1, 2021.
75		-	______________________________ ______________________________
76		-	President of the Senate Speaker of the House
77		-	I hereby certify that S.B. No. 153 passed the Senate on
78		-	April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
79		-	the Senate concurred in House amendment on May 27, 2021, by the
80		-	following vote: Yeas 31, Nays 0.
81		-	______________________________
82		-	Secretary of the Senate
83		-	I hereby certify that S.B. No. 153 passed the House, with
84		-	amendment, on May 18, 2021, by the following vote: Yeas 144,
85		-	Nays 0, one present not voting.
86		-	______________________________
87		-	Chief Clerk of the House
88		-	Approved:
89		-	______________________________
90		-	Date
91		-	______________________________
92		-	Governor