By: Bhojani H.B. No. 5209
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a temporary decrease in the rates of state sales and use
  taxes applicable to certain sales the payment for which is made
  using a decentralized network in the blockchain.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.051, Tax Code, is amended by adding
  Subsections (c) and (d) to read as follows:
         (c)  Notwithstanding Subsection (b), the sales and use tax
  rate is 5-1/4 percent of the sales price of a taxable item if:
               (1)  payment for the taxable item is made using a
  decentralized network that uses smart contract functionality in the
  blockchain to enable instant payments across a network of
  participants;
               (2)  during the calendar year in which the sale is made
  and ending on the date the sale is made, the total amount of sales
  and use taxes reduced by this subsection is less than $400,000; and
               (3)  the sale is made on or after January 1, 2024, and
  before January 1, 2026.
         (d)  The comptroller shall require permit holders who accept
  payments described by Subsection (c)(1) to report the amount of
  sales and use taxes imposed at the rate provided by Subsection (c)
  daily until the limit provided by Subsection (c)(2) is reached for a
  calendar year.  The comptroller shall notify permit holders who
  accept payments described by Subsection (c)(1) when the limit
  provided by Subsection (c)(2) is reached for a calendar year.
  Subsection (c) and this subsection expire January 1, 2026.
         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 September 1, 2023.