Bill > HB1873

This bill modifies the Texas Tax Code regarding sales and use tax collection reimbursements, introducing new provisions for how taxpayers can deduct and withhold taxes. Specifically, the bill defines credit card sales and creates two distinct reimbursement rates: taxpayers can deduct 0.5% for most tax collections and 2.5% for taxes specifically related to credit card sales. The bill also allows taxpayers who prepay their quarterly or monthly tax estimates to deduct an additional 1.25% for non-credit card sales, provided their estimate is at least 90% of the ultimately due tax amount. Importantly, prepayment discounts will not apply to credit card sale taxes. The bill provides an optional mechanism for taxpayers to contribute their reimbursement to educational grants by using a special card provided by the comptroller. These changes will take effect on October 1, 2025, and will apply to tax reports and prepayments made on or after that date, with previous tax reports and prepayments continuing under the existing law.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1873