Texas SB831 amends tax code to allow taxpayers to deduct and withhold certain percentages of their tax liability as reimbursement for tax collection.

Texas SB831 amends the Texas Tax Code to allow taxpayers to deduct and withhold specific percentages of their tax liability as reimbursement for the cost of collecting sales and use taxes. Taxpayers can deduct 0.5% of their tax liability, excluding taxes on credit card sales, and 2.5% of the amount of taxes imposed on credit card sales. The comptroller will provide a card with tax forms that taxpayers can use to contribute part of their reimbursement to grants under the Education Code. The act takes effect October 1, 2025.

Texas SB831 amends tax code to allow taxpayers to deduct and withhold certain percentages of their tax liability as reimbursement for tax collection.

Texas SB831 amends the Texas Tax Code to allow taxpayers to deduct and withhold specific percentages of their tax liability as reimbursement for the cost of collecting sales and use taxes. Taxpayers can deduct 0.5% of their tax liability, excluding taxes on credit card sales, and 2.5% of the amount of taxes imposed on credit card sales. The comptroller will provide a card with tax forms that taxpayers can use to contribute part of their reimbursement to grants under the Education Code. The act takes effect October 1, 2025.