Texas Internet Sales Tax Bill HB 2403 is a bad idea.
The Texas House just passed an Internet Sales Tax Bill (HB 2403) aimed squarely at Amazon and other Internet retailers. Instead of cutting spending, these leftists are raising taxes. That’s not pro-growth. It’s wealth redistribution, stealing from entrepreneurs to fund government programs that should be cut or eliminated.
This Texas Internet sales tax bill isn’t as “bad” as ones passed in more liberal states. However, there is nothing “Main Street” or “fair” about taxing online businesses. Once an Internet sales tax is in place, you can be sure that the rates will increase and more online businesses will have to pay it because the government is filled with a bunch of politicians who want to rob entrepreneurs to pay for their favorite goodies.
I’ve included a copy of the bill below. Read it and weep.
Who To Contact About The Proposed Texas Internet Sales Tax HB 2403
In addition, the Internet sales tax bill now heads to the Texas Senate for a vote. Here’s a list of Texas State Senators you should contact to voice your opposition to a new Internet sales tax.
And be sure to contact Texas Governor Rick Perry to urge him to veto the bill if the Texas Senate passes it too.
HB 2403 – The Texas Internet Sales Tax Bill Full Text
HB 2403 – A BILL TO BE ENTITLED AN ACT relating to retailers engaged in business in this state for purposes of sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.008(b), Tax Code, is amended to read as follows:
(b) “Seller” and “retailer” include:
(1) a person in the business of making sales at auction of tangible personal property owned by the person or by another;
(2) a person who makes more than two sales of taxable items during a 12-month period, including sales made in the
capacity of an assignee for the benefit of creditors or receiver or trustee in bankruptcy;
(3) a person regarded by the comptroller as a seller or retailer under Section 151.024 [
of this code];
(4) a hotel, motel, or owner or lessor of an office or residential building or development that contracts and pays for
telecommunications services for resale to guests or tenants; [
(5) a person who engages in regular or systematic solicitation of sales of taxable items in this state by the
distribution of catalogs, periodicals, advertising flyers, or other advertising, by means of print, radio, or television media,
or by mail, telegraphy, telephone, computer data base, cable, optic, microwave, or other communication system for the purpose of
effecting sales of taxable items; and
(6) a person who, under an agreement with another person, is:
(A) entrusted with possession of tangible personal property with respect to which the other person has title
or another ownership interest; and
(B) authorized to sell, lease, or rent the property without additional action by the person having title to or
another ownership interest in the property.
SECTION 2. Section 151.107, Tax Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:
(a) For the purpose of this subchapter and in relation to the use tax, a retailer is engaged in business in this state if the retailer:
(1) maintains, occupies, or uses in this state permanently, temporarily, directly, or indirectly or through a subsidiary or agent by whatever name, an office, [
place of] distribution center, sales or sample room or place, warehouse, storage place, or any other physical location where [ place of]
business is conducted;
(2) has a representative, agent, salesman, canvasser, or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling or delivering or the taking of orders for a taxable item;
(3) derives receipts [
rentals] from the sale, [ a] lease, or rental of tangible personal property situated in this state;
(4) engages in regular or systematic solicitation of sales of taxable items in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, by means of print, radio, or television media, or by mail, telegraphy, telephone, computer data base, cable, optic,
microwave, or other communication system for the purpose of effecting sales of taxable items;
(5) solicits orders for taxable items by mail or through other media and under federal law is subject to or permitted to be made subject to the jurisdiction of this state for purposes of collecting the taxes imposed by this chapter;
(6) has a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the
tax under this section; [
(7) holds a substantial ownership interest in, or is owned in whole or substantial part by, a person who maintains a location in this state from which business is conducted and if:
(A) the retailer sells the same or a substantially similar line of products as the person with the
location in this state and sells those products under a business name that is the same as or substantially similar to the business
name of the person with the location in this state; or
(B) the facilities or employees of the person with the location in this state are used to:
(i) advertise, promote, or facilitate sales by the retailer to consumers; or
(ii) perform any other activity on behalf of the retailer that is intended to establish or maintain a marketplace for the retailer in this state, including receiving or exchanging returned merchandise;
(8) holds a substantial ownership interest in, or is owned in whole or substantial part by, a person that:
(A) maintains a distribution center, warehouse, or similar location in this state; and
(B) delivers property sold by the retailer to consumers; or
(9) otherwise does business in this state.
(d) In this section:
(1) “Ownership” includes:
(A) direct ownership;
(B) common ownership; and
(C) indirect ownership through a parent entity, subsidiary, or affiliate.
(2) “Substantial” means, with respect to an ownership
interest, an interest in an entity that is:
(A) if the entity is a corporation, at least 50 percent, directly or indirectly, of:
(i) the total combined voting power of all classes of stock of the corporation; or
(ii) the beneficial ownership interest in the voting stock of the corporation;
(B) if the entity is a trust, at least 50 percent, directly or indirectly, of the current beneficial interest in the
trust corpus or income;
(C) if the entity is a limited liability company, at least 50 percent, directly or indirectly, of: (i) the total membership interest of the limited liability company; or (ii) the beneficial ownership interest in the membership interest of the limited liability company; or
(D) for any entity, including a partnership or association, at least 50 percent, directly or indirectly, of the capital or profits interest in the entity.
SECTION 3. The change in law made by this Act does 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 4. This Act takes effect January 1, 2012.
List of Anti-Business Politicians Who Voted For The Texas Internet Sales Tax Bill
Here’s the unofficial vote total on the Texas Internet sales tax bill.
The “Yeas” are anti-business tax-and-spenders who you should oppose with your time and money the next time they run for re-election. Congratulate the “Nays” for having the cojones to vote against this travesty.
125 Yeas, 20 Nays, 3 Present, not voting
Tax-Raising Yeas – Aliseda; Allen; Alonzo; Alvarado; Anchia; Anderson, R.; Aycock; Beck; Branch; Brown; Burkett; Burnam; Button; Castro; Chisum; Coleman; Cook; Craddick; Creighton; Crownover; Darby; Davis, J.; Davis, S.; Davis, Y.; Deshotel; Driver; Dukes; Dutton; Eiland; Eissler; Elkins; Farias; Farrar; Fletcher; Frullo; Gallego; Geren; Giddings; Gonzales, L.; Gonzales, V.; Gonzalez; Gooden; Guillen; Gutierrez; Hamilton; Hardcastle; Harless; Hartnett; Hernandez Luna; Hochberg; Hopson; Howard, C.; Howard, D.; Hunter; Isaac; Jackson; Johnson; Keffer; King, S.; King, T.; Kleinschmidt; Kolkhorst; Kuempel; Larson; Lavender; Legler; Lewis; Lozano; Lucio; Lyne; Madden; Mallory Caraway; Margo; Marquez; Martinez; Martinez Fischer; McClendon; Menendez; Miles; Miller, D.; Morrison; Muñoz; Murphy; Naishtat; Oliveira; Orr; Otto; Parker; Patrick; Peña; Perry; Phillips; Pickett; Pitts; Price; Quintanilla; Raymond; Reynolds; Ritter; Rodriguez; Scott; Sheets; Sheffield; Shelton; Simpson; Smith, T.; Smith, W.; Smithee; Solomons; Strama; Taylor, L.; Taylor, V.; Thompson; Torres; Truitt; Turner; Veasey; Villarreal; Vo; Walle; Weber; White; Woolley; Workman; Zerwas
Nays – Anderson, C.; Bohac; Callegari; Carter; Christian; Flynn; Hancock; Harper-Brown; Hilderbran; Huberty; Hughes; King, P.; Landtroop; Laubenberg; Miller, S.; Nash; Paxton; Riddle; Schwertner; Zedler
Present, not voting – Bonnen(C); Cain; Mr. Speaker
Absent – Berman; Garza
Hat tip to Paul Demery – The Texas House passes an online sales tax bill
The Texas Internet sales tax bill should be defeated—and so should the politicians who support it.