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Bill

HB 2137

Relating to a temporary decrease in the rates of state sales and use taxes applicable to certain sales the payment for which is made using a decentralized network in the blockchain.

89th Legislature (2025) Introduced by Salman Bhojani

HB 2137 temporarily reduces Texas sales tax rates for blockchain-based transactions to incentivize cryptocurrency adoption, with unclear revenue impact and equity implications.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #financial--general(i0365) #taxation--sales(i0800)
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Bill Summary · HB 2137

Legislative bill overview

HB 2137 proposes a temporary reduction in Texas state sales and use tax rates for transactions conducted using blockchain-based decentralized networks. The bill creates a tax incentive mechanism specifically targeting cryptocurrency and blockchain payment systems for a defined period.

Why is this important

This bill reflects ongoing policy debate about whether states should incentivize emerging financial technologies through tax advantages. If enacted, it could affect state revenue, influence cryptocurrency adoption rates in Texas, and set a precedent for how other states treat blockchain transactions—potentially establishing Texas as cryptocurrency-friendly or creating tax treatment disparities between traditional and digital payments.

Potential points of contention

  • Revenue impact: Reducing sales tax on blockchain transactions could create a significant revenue gap for the state without clear offsetting mechanisms or revenue projections
  • Equity concerns: Creating preferential tax treatment for cryptocurrency users while traditional payment methods remain fully taxed raises fairness questions about who benefits from the subsidy
  • Definitional challenges: "Decentralized network" and qualifying blockchain transactions may be difficult to define precisely, creating compliance and enforcement complications
  • Temporary vs. permanent effects: Without clear sunset provisions or evaluation metrics, temporary incentives often become de facto permanent tax expenditures

Compiled from official sources — confirm details with the bill’s official record.

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