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Bill

HB 1873

Relating to certain reimbursements and discounts allowed for the collection and payment of sales and use taxes.

89th Legislature (2025) Introduced by Ryan Guillen

HB 1873 adjusts sales tax collector reimbursement and discount rates in Texas, affecting compliance costs for retailers and state tax administration efficiency.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #credit&debitcards(s0388) #taxation--sales(i0800)
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Bill Summary · HB 1873

Legislative bill overview

HB 1873 modifies the reimbursement and discount structure that Texas allows for tax collectors who handle sales and use tax collection and payment on behalf of the state. The bill adjusts the financial incentives provided to entities responsible for collecting and remitting these taxes to state authorities.

Why is this important

Tax collection infrastructure relies on third parties (retailers, collection agencies) to handle compliance duties. Changes to their reimbursement rates directly affect their operational costs and compliance incentives, which can influence tax collection efficiency and voluntary participation in the system. These adjustments also impact state revenue projections and the overall cost of administering the sales tax system.

Potential points of contention

  • Fiscal impact on retailers: Reducing reimbursements makes tax compliance more expensive for small businesses and retailers already operating on thin margins, potentially affecting collection participation rates
  • State revenue consequences: Lower reimbursement rates save the state money short-term but could reduce collection effectiveness or incentivize non-compliance if rates become insufficient
  • Equity concerns: Different business sizes may be affected disproportionately, with small retailers bearing greater relative costs than large corporations with dedicated tax departments

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

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