TX SB265

Exempts services provided by marketplace providers (such as Amazon or eBay) from being classified as taxable "data processing services" when those services relate to processing sales or payments for marketplace sellers

Removes language that previously excluded marketplace provider charges from the definition of "settling of an electronic payment transaction," clarifying their tax treatment

Maintains existing exemptions from data processing service taxes for medical transcription, payment encryption services, and electronic payment transaction settlement by financial institutions and payment processors

Tax liability that accrued before the effective date remains unaffected and will be collected and enforced under prior law

Takes effect October 1, 2025