Relating to certain reimbursements and discounts allowed for the collection and payment of sales and use taxes.

89(R) HB 2428 - Introduced version - Bill Text

89R7706 RDS-F

By: Canales

H.B. No. 2428

A BILL TO BE ENTITLED

AN ACT

relating to certain reimbursements and discounts allowed for the

collection and payment of sales and use taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 151.423, Tax Code, is amended to read as

follows:

Sec. 151.423. REIMBURSEMENT TO TAXPAYER FOR TAX

COLLECTIONS.
(a) In this section:

(1)

"Credit card"

means a card or equivalent device

used to make purchases based on the cardholder's promise to pay the

issuer of the card for the amount of the purchase and any associated

interest and fees.

(2)

"Credit card sale"

means a sale of a taxable item

paid for by the purchaser using a credit card.

(b)

As reimbursement for the cost of collecting the taxes

imposed by this chapter, a
[
A
] taxpayer may
on a timely return

deduct and withhold
:

(1)
one-half of one percent of the amount of taxes due

from the taxpayer
, other than taxes imposed on credit card sales;

and

(2)

except as provided by Subsection (c), 2.5 percent

of the amount of taxes imposed on credit card sales due from the

taxpayer
[
on a timely return as reimbursement for the cost of

collecting the taxes imposed by this chapter
].

(c)

A taxpayer may not deduct or withhold more than $10

million under Subsection (b)(2) during a calendar quarter.

(d)
The comptroller shall provide a card with each form

distributed for the collection of taxes under this chapter. The

card may be inserted by the taxpayer with the tax payment to provide

for contribution of all or part of the reimbursement provided by

this section for use as grants under Subchapter M, Chapter 56,

Education Code. If the taxpayer chooses to contribute the

reimbursement for the grants, the taxpayer shall include the amount

of the reimbursement contribution with the tax payment. The

comptroller shall transfer money contributed under this section for

grants under Subchapter M, Chapter 56, Education Code, to the

appropriate fund.

SECTION 2. Section 151.424, Tax Code, is amended by

amending Subsection (a) and adding Subsection (a-1) to read as

follows:

(a) A taxpayer who prepays the taxpayer's tax liability
of

taxes described by Section 151.423(b)(1)
on the basis of a

reasonable estimate of the tax liability for a quarter in which a

prepayment is made or for a month in which a prepayment is made may

deduct and withhold 1.25 percent of the amount of the prepayment in

addition to the amount permitted to be deducted and withheld under

that section
[
Section 151.423 of this code
]. A reasonable estimate

of the tax liability must be at least 90 percent of
that
[
the
] tax

ultimately due or the amount of
that
tax paid in the same quarter,

or month, if a monthly prepayer, in the last preceding year. Failure

to prepay a reasonable estimate of the tax will result in the loss

of the entire prepayment discount.

(a-1)

A taxpayer may not deduct or withhold any amount under

this section of a prepayment of the taxpayer's tax liability for

taxes described by Section 151.423(b)(2).

SECTION 3. Section 151.423, Tax Code, as amended by this

Act, applies to a tax report due on or after the effective date of

this Act. A tax report due before the effective date of this Act is

governed by the law in effect on the date the tax report was due, and

the former law is continued in effect for that purpose.

SECTION 4. Section 151.424, Tax Code, as amended by this

Act, applies to a prepayment of tax liability made on or after the

effective date of this Act. A prepayment of tax liability made

before the effective date of this Act is governed by the law in

effect on the date the prepayment was made, and the former law is

continued in effect for that purpose.

SECTION 5. This Act takes effect October 1, 2025.