Texas HB2428 modifies tax collection reimbursements and prepayment discounts for sales and use taxes.

Texas HB2428 amends the Tax Code to adjust reimbursements for tax collection costs and prepayment discounts. It allows taxpayers who prepay their tax liability based on a reasonable estimate to deduct an additional 1.25 percent of the prepayment amount, provided the estimate is at least 90 percent of the tax ultimately due. Failure to meet this estimate results in losing the entire prepayment discount. The bill also restricts the deduction for credit card sales to 2.5 percent of the tax amount, with a quarterly cap of $10 million.

Texas HB2428 modifies tax collection reimbursements and prepayment discounts for sales and use taxes.

Texas HB2428 amends the Tax Code to adjust reimbursements for tax collection costs and prepayment discounts. It allows taxpayers who prepay their tax liability based on a reasonable estimate to deduct an additional 1.25 percent of the prepayment amount, provided the estimate is at least 90 percent of the tax ultimately due. Failure to meet this estimate results in losing the entire prepayment discount. The bill also restricts the deduction for credit card sales to 2.5 percent of the tax amount, with a quarterly cap of $10 million.