Bill > SB265

This bill amends the Texas Tax Code to clarify the definition of "data processing service" by specifically excluding services provided by marketplace providers related to processing sales or payments for marketplace sellers. The bill adds a new exemption to the existing list of data processing services that are not considered taxable, effectively removing marketplace providers from the scope of taxation for certain electronic payment transaction services. The legislation defines key terms such as "marketplace provider" and "marketplace seller" by referencing Section 151.0242 of the Texas Tax Code, though those specific definitions are not included in this bill text. The bill will take effect on October 1, 2025, and importantly, it does not retroactively affect tax liabilities that existed before its effective date. This change appears intended to provide clarity and potentially reduce tax burdens for online marketplace platforms and their sellers by explicitly exempting certain payment processing services from taxation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB265