Texas HB 1873: Relating to certain reimbursements and discounts allowed for the collection and payment of sales and use taxes.

Bill Text

By:AAGuillenH.B.ANo.A1873
A BILLTO BE ENTITLED
AN ACT
relatingto certainreimbursementsanddiscountsallowedforthe
collectionand paymentof salesand use taxes.
BE IT ENACTEDBY THE LEGISLATUREOF THE STATEOF TEXAS:
SECTION
A1.AASection151.423,Tax Code,is amendedto readas
follows:
Sec.
A151.423.AAREIMBURSEMENTTOTAXPAYERFORTAX
COLLECTIONS.(a)In thissection:
(1)
AA"Creditcard"meansa cardor equivalentdevice
usedto makepurchasesbasedon the cardholder
’s promiseto pay the
issuerof the cardfor the amountof the purchaseand any associated
interestand fees.
(2)
AA"Creditcardsale"meansa saleof a taxableitem
paidfor by the purchaserusinga creditcard.
(b)
AAAs reimbursementforthecostof collectingthetaxes
imposedby thischapter,a [A]taxpayermayon a timelyreturn
deductand withhold:
(1)
AAone-halfof one percentof the amountof taxesdue
fromthe taxpayer,otherthantaxesimposedon creditcardsales;
and
(2)
AA2.5percentof theamountof taxesimposedon
creditcardsalesduefromthetaxpayer[ona timelyreturnas
reimbursementfor the costof collectingthe taxesimposedby this
chapter].
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89R5706RDS-F1

(c)AAThecomptrollershallprovidea cardwitheachform
distributedforthecollectionof taxesunderthischapter.The
cardmay be insertedby the taxpayerwiththe tax paymentto provide
forcontributionof allor partof thereimbursementprovidedby
thissectionforuseas grantsunderSubchapterM,  Chapter56,
EducationCode.If  thetaxpayerchoosesto  contributethe
reimbursementfor the grants,the taxpayershallincludethe amount
of thereimbursementcontributionwiththetaxpayment.The
comptrollershalltransfermoneycontributedunderthissectionfor
grantsunderSubchapterM,  Chapter56,EducationCode,to the
appropriatefund.
SECTION
A2.AASection151.424,TaxCode,isamendedby
amendingSubsection(a)andaddingSubsection(a-1)to readas
follows:
(a)
AAA taxpayerwho prepaysthe taxpayer’s tax liabilityof
taxesdescribedby  Section151.423(b)(1)on  thebasisof  a
reasonableestimateof the tax liabilityfor a quarterin whicha
prepaymentis madeor for a monthin whicha prepaymentis mademay
deductand withhold1.25percentof the amountof the prepaymentin
additionto the amountpermittedto be deductedand withheldunder
thatsubdivision[Section151.423of thiscode].A reasonable
estimateof the tax liabilitymustbe at least90 percentof that
[the]tax ultimatelydue or the amountof thattax paidin the same
quarter,or month,if a monthlyprepayer,in thelastpreceding
year.Failureto prepaya reasonableestimateof the tax willresult
in the lossof the entireprepaymentdiscount.
(a-1)
AAA taxpayermay not deductor withholdany amountunder
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H.B.
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thissectionof a prepaymentof thetaxpayer’s taxliabilityfor
taxesdescribedby Section151.423(b)(2).
SECTION
A3.AASection151.423,TaxCode,as amendedby this
Act,appliesto a tax reportdue on or afterthe effectivedateof
thisAct.A tax reportdue beforethe effectivedateof thisAct is
governedby the law in effecton the datethe tax reportwas due,and
the formerlaw is continuedin effectfor thatpurpose.
SECTION
A4.AASection151.424,TaxCode,as amendedby this
Act,appliesto a prepaymentof tax liabilitymadeon or afterthe
effectivedateof thisAct.A prepaymentof taxliabilitymade
beforetheeffectivedateof thisActis governedby thelawin
effecton the datethe prepaymentwas made,and the formerlaw is
continuedin effectfor thatpurpose.
SECTION
A5.AAThisAct takeseffectOctober1, 2025.
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H.B.
ANo.A1873
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