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HB 924

Relating to the location where certain sales are consummated for purposes of local sales and use taxes.

89th Legislature (2025) Introduced by Mike Schofield

HB 924 redefines where sales transactions occur for Texas local tax purposes, potentially shifting tax nexus between jurisdictions for remote and delivery-based commerce.

Referred to Ways & Means
#taxation--sales(i0800)
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WeVote Research Nonpartisan
Bill Summary · HB 924

Legislative bill overview

HB 924 modifies where sales transactions are considered to occur for local sales and use tax purposes in Texas. The bill appears to address the tax nexus point—determining which local jurisdiction can collect sales tax on specific transactions—likely in response to remote sales, marketplace transactions, or delivery-based commerce scenarios.

Why is this important

Local sales tax revenue directly funds municipal services like schools, infrastructure, and public safety. As e-commerce and third-party delivery platforms grow, disputes over which cities can tax these transactions create revenue gaps and compliance confusion for businesses operating across multiple jurisdictions.

Potential points of contention

  • Business compliance burden: Changing tax nexus rules may require businesses to recalculate obligations across different transaction types and delivery methods, increasing accounting complexity and costs
  • Revenue distribution disputes: Cities may gain or lose tax revenue depending on where transactions are now deemed "consummated," creating winners and losers among municipalities
  • Online/delivery platform impact: The bill likely affects how e-commerce platforms, meal delivery services, and marketplace facilitators allocate taxes, potentially increasing costs passed to consumers or reducing seller margins
  • Retroactive application unclear: Whether changes apply to past transactions or only prospectively affects potential tax liability exposure for affected businesses

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

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