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TX HB2825

Bill

Status

Introduced

2/13/2025

Primary Sponsor

Tom Craddick

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Reduces the state sales and use tax rate from the standard rate to 4% on tangible personal property purchased by cable television, Internet access, or telecommunications service providers when directly used to distribute or provide those services, effective January 1, 2028

  • Applies the reduced tax rate to providers and their subsidiaries for equipment used in cable television distribution, Internet access provision, or transmission/reception of telecommunications services

  • Excludes property used for data processing services or information services from the reduced tax rate, and does not affect local taxes under Subtitle C, Title 3

  • Repeals existing Section 151.3186 of the Tax Code, with a transition provision protecting refund claims filed by March 31, 2027, for entitlements arising before the effective date

  • Requires the comptroller to adopt rules for implementation, including procedures for partial refunds when taxes were collected at the higher standard rate instead of the 4% rate

Legislative Description

Relating to sales and use tax rates and refunds for certain tangible personal property used to provide cable television services, Internet access services, or telecommunications services; reducing the rate of the state sales and use tax applicable to certain taxable items.

Property Interests

Last Action

Committee report sent to Calendars

5/14/2025

Committee Referrals

Ways & Means3/19/2025

Full Bill Text

No bill text available