Texas 2025 - 89th Regular

Texas House Bill HB1681 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R2463 BEF-F
2	2	By: Button H.B. No. 1681
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the applicability of sales and use taxes to certain
10	10	services provided by a marketplace provider.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Sections 151.0035(b) and (c), Tax Code, are
13	13	amended to read as follows:
14	14	(b) "Data processing service" does not include:
15	15	(1) the transcription of medical dictation by a
16	16	medical transcriptionist;
17	17	(2) services exclusively to encrypt electronic
18	18	payment information for acceptance onto a payment card network
19	19	described by Subdivision (3)(E) to comply with standards set by the
20	20	Payment Card Industry Security Standards Council; [or]
21	21	(3) settling of an electronic payment transaction by:
22	22	(A) a downstream payment processor or point of
23	23	sale payment processor that routes electronic payment information
24	24	to an entity described by Paragraph (C) or (E);
25	25	(B) a person who is engaged in the business of
26	26	money transmission and required to obtain a license under Section
27	27	152.101, Finance Code;
28	28	(C) a federally insured financial institution,
29	29	as defined by Section 201.101, Finance Code, that is organized
30	30	under the laws of this state, another state, or the United States,
31	31	or an affiliate of the institution;
32	32	(D) a person who has entered into a sponsorship
33	33	agreement with an entity described by Paragraph (C) for the purpose
34	34	of settling that entity's electronic payment transactions through a
35	35	payment card network; or
36	36	(E) a payment card network that allows a person
37	37	to accept a specific brand of debit or credit card by routing
38	38	information and data to settle an electronic payment transaction;
39	39	or
40	40	(4) services provided by a marketplace provider in
41	41	relation to the processing of a sale or payment for a marketplace
42	42	seller, as those terms are defined by Section 151.0242.
43	43	(c) For purposes of Subsection (b)(3):
44	44	(1) "Downstream payment processor" means a person
45	45	described by 7 T.A.C. Section 33.4(c), as that provision existed on
46	46	January 1, 2021.
47	47	(2) "Point of sale payment processor" means a person
48	48	described by 7 T.A.C. Section 33.4(d), as that provision existed on
49	49	January 1, 2021.
50	50	(3) "Settling of an electronic payment transaction"
51	51	means the authorization, clearing, or funding of a payment made by
52	52	credit card, debit card, gift card, stored value card, electronic
53	53	check, virtual currency, loyalty program currency such as points or
54	54	miles, or a similar method. [The term does not include charges by a
55	55	marketplace provider, as that term is defined by Section 151.0242.]
56	56	SECTION 2. The changes in law made by this Act do not affect
57	57	tax liability accruing before the effective date of this Act. That
58	58	liability continues in effect as if this Act had not been enacted,
59	59	and the former law is continued in effect for the collection of
60	60	taxes due and for civil and criminal enforcement of the liability
61	61	for those taxes.
62	62	SECTION 3. This Act takes effect October 1, 2025.