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 the transcription of medical dictation and services related to encrypting electronic payment information. Additionally, it introduces new language that includes services provided by a marketplace provider in relation to the processing of a sale or payment for a marketplace seller, thereby expanding the scope of what is considered a data processing service.

Furthermore, the bill removes previous language that excluded charges by a marketplace provider from the definition of "settling of an electronic payment transaction." The changes made by this Act will not affect tax liabilities that accrued before its effective date of October 1, 2025, ensuring that prior tax obligations remain enforceable under the former law.

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