Bill > HB2137

This bill introduces a temporary reduction in state sales and use tax rates specifically for transactions made using blockchain technology with smart contract functionality. Under the proposed legislation, the sales tax rate will be lowered to 5.25% (down from the standard rate) for sales paid through decentralized blockchain networks, but only if the total tax reduction for the calendar year does not exceed $400,000. This tax reduction will be available from January 1, 2026, to January 1, 2028. The Texas Comptroller will be required to monitor these transactions, requiring permit holders to report daily blockchain-based sales until the $400,000 tax reduction limit is reached. The bill mandates that the Comptroller notify permit holders when this limit is approached, and the special tax rate provision will automatically expire on January 1, 2028. The legislation specifies that it will not affect tax liabilities accrued before its effective date and will take effect on September 1, 2025. Essentially, this bill offers a time-limited tax incentive to encourage blockchain-based commercial transactions in Texas.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2137