AUSTIN, Texas (AP) - The Texas House has approved a bill
intended to expand the number of Internet companies that must
collect Texas sales tax.
The bill passed Tuesday on a 122-23 vote. Republican Rep. John
Otto said it would force Internet-based companies like Amazon.com
to collect sales taxes if they have affiliate in Texas.
Under a U.S. Supreme Court ruling, if a company does not have an
office in Texas, it does not have to collect Texas sales tax.
Customers are supposed to pay it, but they usually don't.
The bill expands the definition of physical presence. Critics
said it would stifle economic growth.
Amazon recently threatened to shut down a warehouse owned by a
subsidiary in Irving after the state comptroller insisted that constituted a physical presence as well.