TX HB134

Redefines "place of business of the retailer" to explicitly exclude computer servers, IP addresses, domain names, websites, and software applications from being considered business locations for local sales tax purposes

Creates special rules for "small businesses" (those with principal location in Texas, 100 or fewer employees, and under $2 million in gross receipts), allowing their sales to be consummated at their principal business location rather than destination

Changes the default rule for non-small business retailers so that sales not made in-person are consummated at the location where the item is shipped, delivered, or where the purchaser takes possession

Allows retailers with active economic development agreements (made under Local Government Code Chapters 380, 381, 504, or 505 with payments before January 1, 2025) to elect to report sales tax based on their business location rather than destination; this election expires December 31, 2030

Takes effect January 1, 2026, and does not affect tax liability that accrued before that date