Bill > HB2825

This bill modifies the sales and use tax rates for tangible personal property used in specific telecommunications services, creating a reduced four percent tax rate (down from the standard rate) for property directly used by providers of cable television, internet access, or telecommunications services. The bill defines a "provider" as an entity offering these services and specifies that the reduced rate applies to property sold, leased, or rented to such providers or their subsidiaries when the property is directly used in distributing cable TV, providing internet access, or transmitting telecommunications services. The bill explicitly excludes data processing and information services from this reduced tax rate, and requires the state comptroller to develop rules for implementing the new tax rate, including provisions for partial tax refunds. The legislation will take effect on January 1, 2027, and includes provisions ensuring that existing tax liabilities and potential refund claims for periods before the effective date remain valid under the previous law. Additionally, the bill repeals a previous section of the tax code (Section 151.3186) related to similar tax provisions.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2825