Bill > SB831

This bill modifies Texas Tax Code provisions related to sales and use tax reimbursements and discounts, specifically introducing new rules for tax collection and prepayment. The bill defines credit card sales and establishes different reimbursement rates for standard sales taxes and credit card sales taxes: businesses can now deduct and withhold one-half of one percent for regular sales taxes and 2.5 percent for credit card sales taxes when filing their tax returns. Additionally, the bill allows taxpayers who prepay their estimated quarterly or monthly tax liability to deduct 1.25 percent of the prepayment amount, provided their estimate is at least 90 percent of the ultimately due tax. The bill explicitly prohibits prepayment discounts for credit card sales taxes. The legislation also includes a provision allowing taxpayers to voluntarily contribute their reimbursement to educational grants. 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 still governed by existing law at the time they were made.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB831