| 1 | 1 | | By: Bhojani H.B. No. 5209 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to a temporary decrease in the rates of state sales and use |
|---|
| 7 | 7 | | taxes applicable to certain sales the payment for which is made |
|---|
| 8 | 8 | | using a decentralized network in the blockchain. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 151.051, Tax Code, is amended by adding |
|---|
| 11 | 11 | | Subsections (c) and (d) to read as follows: |
|---|
| 12 | 12 | | (c) Notwithstanding Subsection (b), the sales and use tax |
|---|
| 13 | 13 | | rate is 5-1/4 percent of the sales price of a taxable item if: |
|---|
| 14 | 14 | | (1) payment for the taxable item is made using a |
|---|
| 15 | 15 | | decentralized network that uses smart contract functionality in the |
|---|
| 16 | 16 | | blockchain to enable instant payments across a network of |
|---|
| 17 | 17 | | participants; |
|---|
| 18 | 18 | | (2) during the calendar year in which the sale is made |
|---|
| 19 | 19 | | and ending on the date the sale is made, the total amount of sales |
|---|
| 20 | 20 | | and use taxes reduced by this subsection is less than $400,000; and |
|---|
| 21 | 21 | | (3) the sale is made on or after January 1, 2024, and |
|---|
| 22 | 22 | | before January 1, 2026. |
|---|
| 23 | 23 | | (d) The comptroller shall require permit holders who accept |
|---|
| 24 | 24 | | payments described by Subsection (c)(1) to report the amount of |
|---|
| 25 | 25 | | sales and use taxes imposed at the rate provided by Subsection (c) |
|---|
| 26 | 26 | | daily until the limit provided by Subsection (c)(2) is reached for a |
|---|
| 27 | 27 | | calendar year. The comptroller shall notify permit holders who |
|---|
| 28 | 28 | | accept payments described by Subsection (c)(1) when the limit |
|---|
| 29 | 29 | | provided by Subsection (c)(2) is reached for a calendar year. |
|---|
| 30 | 30 | | Subsection (c) and this subsection expire January 1, 2026. |
|---|
| 31 | 31 | | SECTION 2. The changes in law made by this Act do not affect |
|---|
| 32 | 32 | | tax liability accruing before the effective date of this Act. That |
|---|
| 33 | 33 | | liability continues in effect as if this Act had not been enacted, |
|---|
| 34 | 34 | | and the former law is continued in effect for the collection of |
|---|
| 35 | 35 | | taxes due and for civil and criminal enforcement of the liability |
|---|
| 36 | 36 | | for those taxes. |
|---|
| 37 | 37 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|