H.B. No. 134 amends the Texas Tax Code to clarify the location at which certain sales are considered consummated for local sales and use tax purposes. The bill introduces new definitions, including "active economic development agreement," "additional municipal sales and use tax," "affiliated group," "principal business location," and "small business." It specifies that the "place of business of the retailer" does not include digital entities such as computer servers or websites, and outlines that a small business's sales are consummated at its principal business location. Additionally, it allows retailers with active economic development agreements to elect to collect and report sales tax based on their single place of business within a municipality.

The bill also repeals several existing provisions related to the consummation of sales and clarifies that the sale of taxable items by small businesses is consummated at their principal business location, while sales by other retailers are consummated at the location where the order is received. The changes made by this Act will not affect tax liabilities that accrued before its effective date of January 1, 2026, ensuring that previous laws remain in effect for the collection and enforcement of taxes due prior to this date.

Statutes affected:
Introduced: Tax Code 321.002, Tax Code 321.203, Tax Code 323.203 (Tax Code 321, Tax Code 323)
House Committee Report: Tax Code 321.002, Tax Code 321.203, Tax Code 323.203 (Tax Code 321, Tax Code 323)