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 includes the addition of new language that specifies services provided by a marketplace provider in relation to these transactions are not considered data processing services. Additionally, the bill removes previous language that excluded charges by a marketplace provider from the definition of "settling of an electronic payment transaction."

The bill also stipulates that the changes made do 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, ensuring that the collection and enforcement of these taxes remain intact.

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