| |
| |
| |
|
|
AN ACT
|
|
|
relating to the exclusion of certain payment processing services |
|
|
from the definition of "data processing service" for purposes of |
|
|
sales and use taxes. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 151.0035, Tax Code, is amended to read as |
|
|
follows: |
|
|
Sec. 151.0035. "DATA PROCESSING SERVICE". (a) "Data |
|
|
processing service" includes: |
|
|
(1) word processing, data entry, data retrieval, data |
|
|
search, information compilation, payroll and business accounting |
|
|
data production, and other computerized data and information |
|
|
storage or manipulation; |
|
|
(2) the performance of a totalisator service with the |
|
|
use of computational equipment required by Subtitle A-1, Title 13, |
|
|
Occupations Code (Texas Racing Act); and |
|
|
(3) [, and other computerized data and information |
|
|
storage or manipulation. "Data processing service" also includes] |
|
|
the use of a computer or computer time for data processing whether |
|
|
the processing is performed by the provider of the computer or |
|
|
computer time or by the purchaser or other beneficiary of the |
|
|
service. |
|
|
(b) "Data processing service" does not include: |
|
|
(1) the transcription of medical dictation by a |
|
|
medical transcriptionist; |
|
|
(2) services exclusively to encrypt electronic |
|
|
payment information for acceptance onto a payment card network |
|
|
described by Subdivision (3)(E) to comply with standards set by the |
|
|
Payment Card Industry Security Standards Council; or |
|
|
(3) settling of an electronic payment transaction by: |
|
|
(A) a downstream payment processor or point of |
|
|
sale payment processor that routes electronic payment information |
|
|
to an entity described by Paragraph (C) or (E); |
|
|
(B) a person who is engaged in the business of |
|
|
money transmission and required to obtain a license under Section |
|
|
151.302(a), Finance Code; |
|
|
(C) a federally insured financial institution, |
|
|
as defined by Section 201.101, Finance Code, that is organized |
|
|
under the laws of this state, another state, or the United States, |
|
|
or an affiliate of the institution; |
|
|
(D) a person who has entered into a sponsorship |
|
|
agreement with an entity described by Paragraph (C) for the purpose |
|
|
of settling that entity's electronic payment transactions through a |
|
|
payment card network; or |
|
|
(E) a payment card network that allows a person |
|
|
to accept a specific brand of debit or credit card by routing |
|
|
information and data to settle an electronic payment transaction. |
|
|
(c) For purposes of Subsection (b)(3): |
|
|
(1) "Downstream payment processor" means a person |
|
|
described by 7 T.A.C. Section 33.4(c), as that provision existed on |
|
|
January 1, 2021. |
|
|
(2) "Point of sale payment processor" means a person |
|
|
described by 7 T.A.C. Section 33.4(d), as that provision existed on |
|
|
January 1, 2021. |
|
|
(3) "Settling of an electronic payment transaction" |
|
|
means the authorization, clearing, or funding of a payment made by |
|
|
credit card, debit card, gift card, stored value card, electronic |
|
|
check, virtual currency, loyalty program currency such as points or |
|
|
miles, or a similar method. The term does not include charges by a |
|
|
marketplace provider, as that term is defined by Section 151.0242. |
|
|
(d) "Data storage," as used in this section, does not |
|
|
include a classified advertisement, banner advertisement, vertical |
|
|
advertisement, or link when the item is displayed on an Internet |
|
|
website owned by another person. |
|
|
SECTION 2. The changes in law made by this Act do not affect |
|
|
tax liability accruing before the effective date of this Act. That |
|
|
liability continues in effect as if this Act had not been enacted, |
|
|
and the former law is continued in effect for the collection of |
|
|
taxes due and for civil and criminal enforcement of the liability |
|
|
for those taxes. |
|
|
SECTION 3. This Act takes effect October 1, 2021. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 153 passed the Senate on |
|
|
April 19, 2021, by the following vote: Yeas 31, Nays 0; and that |
|
|
the Senate concurred in House amendment on May 27, 2021, by the |
|
|
following vote: Yeas 31, Nays 0. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 153 passed the House, with |
|
|
amendment, on May 18, 2021, by the following vote: Yeas 144, |
|
|
Nays 0, one present not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |