TX HB1873

Increases the reimbursement rate for taxpayers collecting sales taxes on credit card sales from 0.5% to 2.5% of taxes due, while maintaining the 0.5% rate for non-credit card sales

Defines "credit card" as a card or device used for purchases based on the cardholder's promise to pay the issuer, and "credit card sale" as a taxable item sale paid by credit card

Eliminates the 1.25% prepayment discount for taxes on credit card sales, restricting that discount to only non-credit card sales

Maintains the existing option for taxpayers to contribute their reimbursement to education grants under Subchapter M, Chapter 56 of the Education Code

Takes effect October 1, 2025, and applies to tax reports due and prepayments made on or after that date