Bill > HB1681

This bill modifies the Texas Tax Code to clarify the definition of "data processing service" by explicitly excluding services provided by marketplace providers in relation to processing sales or payments for marketplace sellers. Specifically, the bill amends Section 151.0035 to add a new exemption (4) to the definition of data processing service, which removes marketplace provider services from being classified as taxable data processing services. The bill references definitions from Section 151.0242 for "marketplace provider" and "marketplace seller" and removes a previous clause that excluded charges by marketplace providers from the definition of "settling of an electronic payment transaction". The changes do not affect tax liabilities that accrued before the effective date of the bill, which is set for October 1, 2025. This modification appears intended to provide clarity and potentially reduce tax burdens for online marketplace platforms by specifying that their payment processing services are not considered taxable data processing services.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1681