Texas SB265 amends the Tax Code to exclude certain services provided by marketplace providers from the definition of "data processing service.

Texas SB265 amends the Tax Code to redefine "data processing service" by excluding services provided by marketplace providers in relation to the processing of a sale or payment for a marketplace seller. This change aims to clarify the scope of services subject to sales and use taxes. The bill also defines terms such as "downstream payment processor" and "settling of an electronic payment transaction." The changes do not affect tax liabilities accruing before the bill's effective date, which is set for October 1, 2025.

Texas SB265 amends the Tax Code to exclude certain services provided by marketplace providers from the definition of "data processing service.

Texas SB265 amends the Tax Code to redefine "data processing service" by excluding services provided by marketplace providers in relation to the processing of a sale or payment for a marketplace seller. This change aims to clarify the scope of services subject to sales and use taxes. The bill also defines terms such as "downstream payment processor" and "settling of an electronic payment transaction." The changes do not affect tax liabilities accruing before the bill's effective date, which is set for October 1, 2025.