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 and withhold specific percentages of taxes due. Specifically, taxpayers can deduct one-half of one percent of the amount of taxes due, excluding those imposed on credit card sales, and 2.5 percent of the 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 taxes on credit card sales. The amendments will take effect on October 1, 2025, and will apply to tax reports and prepayments due on or after that date, while previous laws will remain in effect for any reports or prepayments made before the effective date.

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