Texas 2025 - 89th Regular

Texas Senate Bill SB831 Compare Versions

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

Old	New	Differences
1	1	89R5706 RDS-F
2	2	By: Parker S.B. No. 831
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain reimbursements and discounts allowed for the
10	10	collection and payment of sales and use taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 151.423, Tax Code, is amended to read as
13	13	follows:
14	14	Sec. 151.423. REIMBURSEMENT TO TAXPAYER FOR TAX
15	15	COLLECTIONS. (a) In this section:
16	16	(1) "Credit card" means a card or equivalent device
17	17	used to make purchases based on the cardholder's promise to pay the
18	18	issuer of the card for the amount of the purchase and any associated
19	19	interest and fees.
20	20	(2) "Credit card sale" means a sale of a taxable item
21	21	paid for by the purchaser using a credit card.
22	22	(b) As reimbursement for the cost of collecting the taxes
23	23	imposed by this chapter, a [A] taxpayer may on a timely return
24	24	deduct and withhold:
25	25	(1) one-half of one percent of the amount of taxes due
26	26	from the taxpayer, other than taxes imposed on credit card sales;
27	27	and
28	28	(2) 2.5 percent of the amount of taxes imposed on
29	29	credit card sales due from the taxpayer [on a timely return as
30	30	reimbursement for the cost of collecting the taxes imposed by this
31	31	chapter].
32	32	(c) The comptroller shall provide a card with each form
33	33	distributed for the collection of taxes under this chapter. The
34	34	card may be inserted by the taxpayer with the tax payment to provide
35	35	for contribution of all or part of the reimbursement provided by
36	36	this section for use as grants under Subchapter M, Chapter 56,
37	37	Education Code. If the taxpayer chooses to contribute the
38	38	reimbursement for the grants, the taxpayer shall include the amount
39	39	of the reimbursement contribution with the tax payment. The
40	40	comptroller shall transfer money contributed under this section for
41	41	grants under Subchapter M, Chapter 56, Education Code, to the
42	42	appropriate fund.
43	43	SECTION 2. Section 151.424, Tax Code, is amended by
44	44	amending Subsection (a) and adding Subsection (a-1) to read as
45	45	follows:
46	46	(a) A taxpayer who prepays the taxpayer's tax liability of
47	47	taxes described by Section 151.423(b)(1) on the basis of a
48	48	reasonable estimate of the tax liability for a quarter in which a
49	49	prepayment is made or for a month in which a prepayment is made may
50	50	deduct and withhold 1.25 percent of the amount of the prepayment in
51	51	addition to the amount permitted to be deducted and withheld under
52	52	that subdivision [Section 151.423 of this code]. A reasonable
53	53	estimate of the tax liability must be at least 90 percent of that
54	54	[the] tax ultimately due or the amount of that tax paid in the same
55	55	quarter, or month, if a monthly prepayer, in the last preceding
56	56	year. Failure to prepay a reasonable estimate of the tax will result
57	57	in the loss of the entire prepayment discount.
58	58	(a-1) A taxpayer may not deduct or withhold any amount under
59	59	this section of a prepayment of the taxpayer's tax liability for
60	60	taxes described by Section 151.423(b)(2).
61	61	SECTION 3. Section 151.423, Tax Code, as amended by this
62	62	Act, applies to a tax report due on or after the effective date of
63	63	this Act. A tax report due before the effective date of this Act is
64	64	governed by the law in effect on the date the tax report was due, and
65	65	the former law is continued in effect for that purpose.
66	66	SECTION 4. Section 151.424, Tax Code, as amended by this
67	67	Act, applies to a prepayment of tax liability made on or after the
68	68	effective date of this Act. A prepayment of tax liability made
69	69	before the effective date of this Act is governed by the law in
70	70	effect on the date the prepayment was made, and the former law is
71	71	continued in effect for that purpose.
72	72	SECTION 5. This Act takes effect October 1, 2025.