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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of certain payment processing services |
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from the definition of "data processing service" for purposes of |
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sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.0035, Tax Code, is amended to read as |
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follows: |
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Sec. 151.0035. "DATA PROCESSING SERVICE". (a) "Data |
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processing service" includes word processing, data entry, data |
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retrieval, data search, information compilation, payroll and |
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business accounting data production, the performance of a |
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totalisator service with the use of computational equipment |
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required by Subtitle A-1, Title 13, Occupations Code (Texas Racing |
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Act), and other computerized data and information storage or |
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manipulation. "Data processing service" also includes the use of a |
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computer or computer time for data processing whether the |
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processing is performed by the provider of the computer or computer |
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time or by the purchaser or other beneficiary of the service. |
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(b) "Data processing service" does not include: |
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(1) the transcription of medical dictation by a |
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medical transcriptionist; or |
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(2) the processing of a payment made by credit card or |
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debit card. |
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(c) "Data storage," as used in this section, does not |
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include a classified advertisement, banner advertisement, vertical |
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advertisement, or link when the item is displayed on an Internet |
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website owned by another person. |
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SECTION 2. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 3. This Act takes effect September 1, 2021. |