Tax & Accounting Blog

Texas Governor Signs Fiscal Bill

Indirect Tax, Sales and Use Tax, Sales Tax Nexus, Transaction Tax July 21, 2011

Texas Governor Rick Perry signed S1 on July 19th. The bill contains a slew of tax provisions including a few which affect the sales tax. Most notable perhaps is one which provides that online subsidiaries or affiliates of retailers with stores or other facilities in Texas have nexus with the state.

Also included in the legislation are the following provisions:

  • changed dates for the sales tax holiday weekend: the holiday has been moved from the third Friday in August to the Friday before the eighth day preceding the earliest date on which any school district, other than a district operating a year-round system, may begin instruction.
  • amended definition of a “sale for resale”; and
  • a required 25% additional tax prepayment of sales, alcohol and motor vehicles taxes.