HB1873 - Relating to certain reimbursements and discounts allowed for the collection and payment of sales and use taxes.

  89R5706 RDS-F     By: Guillen H.B. No. 1873       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)     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)   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 subdivision [ 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.