Bill Caption

Relating to the administration and collection of sales and use taxes and certain fees applicable to sales involving marketplace providers.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

SB 477 would require marketplace providers who process sales of or payments for lead-acid batteries to collect applicable fees. The bill would also require marketplace providers to collect the applicable 9-1-1 emergency services fee on sales of certain prepaid wireless communications services. 

SB 477 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, SB 477 would make taxable items sold by a marketplace seller exempt from being an "occasional sale" and therefore, would have to be taxed. 

Vote Recommendation Notes

Making the sale of all taxable items by a marketplace seller exempt from being considered an "occasional sale," regardless of how often the sale takes place limits a person from being able to take advantage of a current tax benefit which other occasional sellers are able to benefit from. This provision is inconsistent with limited government. Texas Action opposes SB 477 unless amended to strike Section 5.