By: Bhojani H.B. No. 5209
A BILL TO BE ENTITLED
AN ACT
relating to a temporary decrease in the rates of state sales and use
taxes applicable to certain sales the payment for which is made
using a decentralized network in the blockchain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.051, Tax Code, is amended by adding
Subsections (c) and (d) to read as follows:
(c) Notwithstanding Subsection (b), the sales and use tax
rate is 5-1/4 percent of the sales price of a taxable item if:
(1) payment for the taxable item is made using a
decentralized network that uses smart contract functionality in the
blockchain to enable instant payments across a network of
participants;
(2) during the calendar year in which the sale is made
and ending on the date the sale is made, the total amount of sales
and use taxes reduced by this subsection is less than $400,000; and
(3) the sale is made on or after January 1, 2024, and
before January 1, 2026.
(d) The comptroller shall require permit holders who accept
payments described by Subsection (c)(1) to report the amount of
sales and use taxes imposed at the rate provided by Subsection (c)
daily until the limit provided by Subsection (c)(2) is reached for a
calendar year. The comptroller shall notify permit holders who
accept payments described by Subsection (c)(1) when the limit
provided by Subsection (c)(2) is reached for a calendar year.
Subsection (c) and this subsection expire January 1, 2026.
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, 2023.