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 addition aims to ensure that services provided by marketplace providers are recognized in the context of electronic payment transactions. The bill also removes the previous exclusion of charges by marketplace providers from the definition of "settling of an electronic payment transaction."

Additionally, the bill stipulates that the changes made do not retroactively affect 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 if the new provisions had not been enacted.

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