H.B. No. 2428 amends the Texas Tax Code to update provisions regarding reimbursements and discounts for the collection and payment of sales and use taxes. The bill introduces definitions for "credit card" and "credit card sale," and allows taxpayers to deduct a percentage of taxes due as reimbursement for collection costs. 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 taxes imposed on credit card sales, with a cap of $10 million per calendar quarter for the latter. Additionally, the bill mandates that the comptroller provide a card with tax forms to facilitate contributions of reimbursement amounts for educational grants.

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 reports and prepayments made before the effective date.

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