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. The bill adds a new category of services that are not considered data processing, which includes services provided by a marketplace provider in relation to these transactions. Additionally, it removes the previous exclusion of 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 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 remain enforceable under the former law. Overall, the bill aims to provide clarity on the tax treatment of services offered by marketplace providers, ensuring that they are appropriately categorized within the existing tax framework.

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