The bill, H.B. No. 3486, proposes a reduction in the sales and use tax collections that restaurant owners must remit to the comptroller when they purchase Texas farm-raised oysters. It introduces a new section, 151.4245, to the Tax Code, which allows food service establishments to deduct $5 for every 100 Texas farm-raised oysters purchased for preparation and service during a given quarter or month. The bill defines "food service establishment" and "Texas farm-raised oyster," ensuring clarity on the entities eligible for this tax deduction.

Additionally, the bill grants the comptroller the authority to require information from taxpayers to verify the accuracy of the deductions claimed and allows the comptroller to adopt necessary rules for implementing this section. Importantly, the bill specifies that the changes in tax liability do not affect any obligations that accrued before the effective date of the Act, which is set for October 1, 2025. This ensures that previous tax liabilities remain enforceable under the former law.

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