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Relating to the administration and collection of sales and use
taxes and certain fees applicable to sales involving marketplace
No significant fiscal implication to the State is anticipated.
HB 2398 would require marketplace providers who process sales of or payments for lead-acid batteries to collect applicable fees.
The bill would also clarify that if a marketplace seller sells tickets for admission and tells the marketplace provider that taxes were collected on those sales, the marketplace provider may in good faith accept that statement and take the allowable deduction on behalf of the marketplace seller.
Additionally, HB 2398 would make taxable items sold by a marketplace seller in a marketplace exempt from being an "occasional sale" and therefore, would have to be taxed.
Currently, wholesale and retail sales of lead-acid batteries collect the required fee, HB 2398 would add marketplace providers. A marketplace provider is a person who owns or operates a physical or electronic store, internet website, software application, or catalog that marketplace sellers use to make sales. This would close a loophole that is currently present in which some sales of lead-acid batteries include the fee and others do not.
Also, removing the "occasional sale" tax exemption, regardless of how often the sale takes place, limits a person from being able to take advantage of a current tax exemption that is otherwise available to occasional sellers.
Texas Action is opposed to HB 2398 because it places additional tax burdens on people and is against our principle of property rights and limited government.