89R7706 RDS-F
By: Canales H.B. No. 2428
A BILL TO BE ENTITLED
AN ACT
relating to certain reimbursements and discounts allowed for the
collection and payment of sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.423, Tax Code, is amended to read as
follows:
Sec. 151.423. REIMBURSEMENT TO TAXPAYER FOR TAX
COLLECTIONS. (a) In this section:
(1) "Credit card" means a card or equivalent device
used to make purchases based on the cardholder's promise to pay the
issuer of the card for the amount of the purchase and any associated
interest and fees.
(2) "Credit card sale" means a sale of a taxable item
paid for by the purchaser using a credit card.
(b) As reimbursement for the cost of collecting the taxes
imposed by this chapter, a [A] taxpayer may on a timely return
deduct and withhold:
(1) one-half of one percent of the amount of taxes due
from the taxpayer, other than taxes imposed on credit card sales;
and
(2) except as provided by Subsection (c), 2.5 percent
of the amount of taxes imposed on credit card sales due from the
taxpayer [on a timely return as reimbursement for the cost of
collecting the taxes imposed by this chapter].
(c) A taxpayer may not deduct or withhold more than $10
million under Subsection (b)(2) during a calendar quarter.
(d) The comptroller shall provide a card with each form
distributed for the collection of taxes under this chapter. The
card may be inserted by the taxpayer with the tax payment to provide
for contribution of all or part of the reimbursement provided by
this section for use as grants under Subchapter M, Chapter 56,
Education Code. If the taxpayer chooses to contribute the
reimbursement for the grants, the taxpayer shall include the amount
of the reimbursement contribution with the tax payment. The
comptroller shall transfer money contributed under this section for
grants under Subchapter M, Chapter 56, Education Code, to the
appropriate fund.
SECTION 2. Section 151.424, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A taxpayer who prepays the taxpayer's tax liability of
taxes described by Section 151.423(b)(1) on the basis of a
reasonable estimate of the tax liability for a quarter in which a
prepayment is made or for a month in which a prepayment is made may
deduct and withhold 1.25 percent of the amount of the prepayment in
addition to the amount permitted to be deducted and withheld under
that section [Section 151.423 of this code]. A reasonable estimate
of the tax liability must be at least 90 percent of that [the] tax
ultimately due or the amount of that tax paid in the same quarter,
or month, if a monthly prepayer, in the last preceding year. Failure
to prepay a reasonable estimate of the tax will result in the loss
of the entire prepayment discount.
(a-1) A taxpayer may not deduct or withhold any amount under
this section of a prepayment of the taxpayer's tax liability for
taxes described by Section 151.423(b)(2).
SECTION 3. Section 151.423, Tax Code, as amended by this
Act, applies to a tax report due on or after the effective date of
this Act. A tax report due before the effective date of this Act is
governed by the law in effect on the date the tax report was due, and
the former law is continued in effect for that purpose.
SECTION 4. Section 151.424, Tax Code, as amended by this
Act, applies to a prepayment of tax liability made on or after the
effective date of this Act. A prepayment of tax liability made
before the effective date of this Act is governed by the law in
effect on the date the prepayment was made, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect October 1, 2025.