Tax & Accounting Blog

Texas House Passes Remote Seller Bill

Indirect Tax, ONESOURCE, Sales and Use Tax, Sales Tax Nexus May 2, 2011

On April 27th the Texas House of Representatives voted 125 to 20 to pass a remote seller nexus bill. The bill as passed by the House would provide that the following retailers would be considered to be engaged in business in Texas for use tax collection purposes:

(1) a retailer that holds a substantial ownership interest in, or is owned in whole or in substantial part by, a person who maintains a business location in Texas, provided certain conditions are met and

(2) a retailer that holds a substantial ownership interest in, or is owned in whole or in substantial part by, a person who maintains a distribution center, warehouse, or similar location in Texas and who delivers property sold by the retailer to consumers.

The bill as introduced also contained a provision that would have established nexus for sellers that use a website on a server in Texas to sell digital goods. That provision has been deleted from the bill. HB 2403 now moves to the Senate where it has strong support. The Texas legislative session runs until the end of May.

H.B. 2403, as passed by the Texas House of Representatives on April 27, 2011

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