The bill amends Sections 151.423 and 151.424 of the Texas Tax Code to update the provisions regarding reimbursements and discounts for the collection and payment of sales and use taxes. It introduces definitions for "credit card" and "credit card sale," and allows taxpayers to deduct a percentage of taxes due based on the type of sale. Specifically, taxpayers can deduct one-half of one percent of taxes due, excluding those imposed on credit card sales, and 2.5 percent of taxes imposed on credit card sales. Additionally, the bill mandates that the comptroller provide a card with tax forms that allows taxpayers to contribute part of their reimbursement to grants under the Education Code.

Furthermore, the bill establishes that taxpayers who prepay their tax liability based on a reasonable estimate can deduct an additional 1.25 percent of the prepayment amount, provided the estimate meets certain criteria. However, taxpayers are prohibited from deducting any amount for prepayments related to credit card sales. The amendments will apply to tax reports and prepayments made on or after the effective date of the Act, which is set for October 1, 2025.

Statutes affected:
Introduced: Tax Code 151.423, Tax Code 151.424 (Tax Code 151)