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Bill

HB 1681

Relating to the applicability of sales and use taxes to certain services provided by a marketplace provider.

89th Legislature (2025) Introduced by Angie Button and 4 co-sponsors

HB 1681 clarifies sales tax obligations for digital marketplace platforms in Texas, potentially limiting their collection and remittance responsibilities.

Left pending in committee
#taxation--sales(i0800)
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WeVote Research Nonpartisan
Bill Summary · HB 1681

Legislative bill overview

HB 1681 modifies Texas sales and use tax law to clarify the tax treatment of services provided through marketplace platforms (like delivery apps, rental platforms, and other digital intermediaries). The bill addresses whether marketplace providers themselves are liable for collecting and remitting sales taxes on transactions they facilitate, rather than placing that burden solely on the individual service providers using their platforms.

Why is this important

As digital marketplace platforms have grown exponentially, there's significant revenue at stake for Texas—uncollected taxes represent lost funding for schools, infrastructure, and local services. The bill also affects business compliance costs: clarifying tax obligations helps marketplace providers, individual contractors, and small businesses understand their responsibilities rather than operating under ambiguous rules that invite audits and penalties.

Potential points of contention

  • Revenue impact debate: Tax advocates may argue the bill reduces state/local revenue if it exempts marketplace providers from collection duties, while business groups may counter that marketplace operators shouldn't be "collection agents" for transactions they don't directly control
  • Competitive fairness: Traditional brick-and-mortar businesses and direct service providers may feel disadvantaged if digital platforms receive more lenient tax treatment than they do
  • Contractor classification: The bill's approach could implicitly affect how gig workers and independent contractors are treated under tax law, with implications for their tax filing obligations and business expense deductions

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

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