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 explicitly 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 these services are not considered data processing services, thereby ensuring that marketplace providers are subject to the same tax treatment as other service providers in this context.

Additionally, the bill removes previous language that excluded charges by marketplace providers 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, meaning that any tax obligations incurred prior to this date will continue to be governed by the former law.

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