Monitoring the Session

HB 2137

Bhojani Bill Cuts Sales Tax For Smart Contract Payments Only

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Salman BhojaniDHouse 92
Why it's charged
Carve-out

THE TEXT

…“decentralized network that uses smart contract functionality in the”…

Bill text, introduced version (I)

The tax cut goes only to sales paid through one narrowly described kind of blockchain payment network, which favors that payment technology over every other way to pay. The caption does disclose the narrow target, so this is a modest instance.

Carve-out

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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.

Caption from analyzed text · version I.

Summary

6.25 percent drops to 5.25. Capped at $400K a year, through 2027.

The bill cuts the state sales and use tax from 6.25 percent to 5.25 percent on purchases paid through a blockchain network that uses smart contracts for instant payments. It touches shoppers and sellers who use that kind of payment, and it requires sellers who accept it to report the reduced tax daily to the comptroller. The cut runs only for sales from January 1, 2026, through the end of 2027, and it stops each year once the total tax break hits $400,000.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 5209 (Died in committee) and this bill (Died in committee). Checked against 88R only.DO-OVER. Reworked text of a bill filed before that died: 88R HB 5209 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Jan 28, 2025 and referred to the House Ways & Means committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB2137 · 2025-01-28

SOLD BY

Rep. Salman BhojaniDHouse 92

ITEM

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.

WHAT IT DOES

6.25 percent drops to 5.25. Capped at $400K a year, through 2027.

The bill cuts the state sales and use tax from 6.25 percent to 5.25 percent on purchases paid through a blockchain network that uses smart contracts for instant payments. It touches shoppers and sellers who use that kind of payment, and it requires sellers who accept it to report the reduced tax daily to the comptroller. The cut runs only for sales from January 1, 2026, through the end of 2027, and it stops each year once the total tax break hits $400,000.

CHARGES

[x] CARVE-OUTanalysis confidence 50%

THE TEXT

…“decentralized network that uses smart contract functionality in the”…

Bill text, introduced version (I)

The tax cut goes only to sales paid through one narrowly described kind of blockchain payment network, which favors that payment technology over every other way to pay. The caption does disclose the narrow target, so this is a modest instance.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
FILED UNDER

CORPORATE WELFARE

THE TEXT

…“tax rate is 5-1/4 percent of the sales price of a taxable item if:”

Bill text, introduced version (I)

The bill gives a lower sales tax rate to sales made through one payment technology, a targeted tax break for the blockchain payment industry.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Salman Bhojani

Donors

6301 ECC LLC$36KSam Mahrouq$25,000Texas Trial Lawyers Association PAC$21K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 1, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

6301 ECC LLC$36,400.00

6301 ECC LLC

$36,400.00

Cash
$0.00
Paid by others
$36,400.00
Total
$36,400.00
Other filed descriptions $36,400.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Jul 1, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Jul 1, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978329, 101005348, 101026340, 101056439, 101069774, 101071921.

Sam Mahrouq$25,000.00
Texas Trial Lawyers Association PAC$21,000.00

Texas Trial Lawyers Association PAC

$21,000.00

Cash
$21,000.00
Paid by others
$0.00
Total
$21,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 4, 2024 to Oct 9, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978329, 101026340, 101056439, 101071921.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

6301 ECC LLC

$36,400.00

Cash
$0.00
Paid by others
$36,400.00
Total
$36,400.00
Other filed descriptions $36,400.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Jul 1, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Jul 1, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978329, 101005348, 101026340, 101056439, 101069774, 101071921.

×

Texas Trial Lawyers Association PAC

$21,000.00

Cash
$21,000.00
Paid by others
$0.00
Total
$21,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 4, 2024 to Oct 9, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100978329, 101026340, 101056439, 101071921.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 5209

by Rep. Bhojani, same lead author · Died in committee · reworked

Introduced text

Last action, Mar 24, 2023: Referred to Ways & Means

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.

Caption, 88R bill history

Sources

Texas House · Filed Jan 28, 2025

03/14/2025 H Referred to Ways & Means: Mar 14 2025 2:36PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Subjects

Financial--General

Taxation--Sales

COMPTROLLER OF PUBLIC ACCOUNTS

Text

The text as introduced · 344 words

89R3536 JBD-F

By: Bhojani
H.B. No. 2137

A BILL TO BE ENTITLED

AN ACT

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.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 151.051, Tax Code, is amended by adding

Subsections (c) and (d) to read as follows:

(c) Notwithstanding Subsection (b), the sales tax and use

tax rate is 5-1/4 percent of the sales price of a taxable item if:

(1) payment for the taxable item is made using a

decentralized network that uses smart contract functionality in the

blockchain to enable instant payments across a network of

participants;

(2) during the period beginning January 1 of the

calendar year in which the sale is made and ending the day before

the date the sale is made, the reduction in the total amount of

sales and use taxes imposed as a result of this subsection does not

exceed $400,000; and

(3) the sale is made on or after January 1, 2026, and

before January 1, 2028.

(d) The comptroller shall require permit holders who accept

payments described by Subsection (c)(1) to report the amount of

sales and use taxes imposed at the rate provided by Subsection (c)

daily until the limit provided by Subsection (c)(2) is reached for a

calendar year. The comptroller shall notify permit holders who

accept payments described by Subsection (c)(1) when the limit

provided by Subsection (c)(2) is reached for a calendar year.

Subsection (c) and this subsection expire January 1, 2028.

SECTION 2. The changes in law made by this Act do not affect

tax liability accruing before the effective date of this Act. That

liability continues in effect as if this Act had not been enacted,

and the former law is continued in effect for the collection of

taxes due and for civil and criminal enforcement of the liability

for those taxes.

SECTION 3. This Act takes effect September 1, 2025.