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.

HB 2137 temporarily lowers Texas' state sales and use tax rate to 5.25% (from the standard rate) for transactions paid using blockchain-based decentralized networks with smart contracts. It directly affects businesses accepting such payments, like cryptocurrency merchants, by reducing their tax burden for qualifying sales. Key provisions include a $400,000 annual cap on tax reductions per business, a requirement for daily tax reporting by businesses once the cap nears, and a limited window from January 1, 2026, through December 31, 2027. The bill expires January 1, 2028, and takes effect September 1, 2025.