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

SB 265 clarifies that payment processing services provided by marketplace providers (like online platforms connecting buyers and sellers) are exempt from Texas sales and use taxes. It directly affects marketplace providers and their sellers by removing tax liability for these specific transaction-processing services. The bill amends tax code to explicitly exclude "services provided by a marketplace provider in relation to processing a sale or payment" from taxable "data processing services." This creates a clear tax exemption for core payment processing functions, while maintaining tax obligations for other services like platform fees. The exemption takes effect October 1, 2025.