The bill amends the Texas Tax Code to clarify the applicability of sales and use taxes to certain services provided by marketplace providers. Specifically, it revises the definition of "data processing service" to exclude services related to the processing of sales or payments for marketplace sellers, as defined in Section 151.0242. This addition aims to ensure that services provided by marketplace providers are recognized in the context of electronic payment transactions. The bill also removes previous language that excluded charges by marketplace providers from the definition of "settling of an electronic payment transaction."

Additionally, the bill stipulates that the changes in law will not affect any tax liabilities that accrued before the effective date of the Act, which is set for October 1, 2025. This means that any tax obligations incurred prior to this date will continue to be governed by the former law, allowing for the collection of taxes and enforcement of liabilities as they existed before the enactment of this bill.

Statutes affected:
Introduced: Tax Code 151.0035 (Tax Code 151)