Bill > HB134

This bill modifies Texas tax law regarding the location where sales are considered to be consummated for sales and use tax purposes. The bill introduces several key definitions, including "small business" (a local business with fewer than 100 employees and under $2 million in annual gross receipts) and "principal business location" (where a business's key decision-makers conduct daily operations). For small businesses, sales will now be considered consummated at their principal business location. For other businesses, sales will be consummated at the place where the order is received in person, or at the location where the item is shipped or delivered. The bill also adds provisions for retailers with active economic development agreements, allowing them to elect how they report sales tax in certain circumstances. Notably, the bill explicitly states that computer servers, websites, and software applications do not count as a "place of business." These changes aim to clarify and potentially simplify how local sales taxes are calculated and distributed across different business types. The bill will take effect on January 1, 2026, and does not retroactively affect tax liabilities accrued before its implementation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB134