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.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.