Texas House Bill HB2403

Texas 2011 - 82nd Regular

• Out of House Committee: 4/18/11
• Voted on by House: 4/27/11
• Out of Senate Committee: 5/11/11
• Report Pass: 4/7/11
• Voted on by Senate: 5/13/11
• Engrossed: 4/27/11
• Governor Action: 5/31/11
• Refer: 5/3/11
• Report Pass: 5/11/11
• Enrolled: 5/15/11
• Vetoed: 5/31/11

Caption

Relating to retailers engaged in business in this state for purposes of sales and use taxes.

Impact

The implications of HB2403 on state laws are significant, as it modernizes the legal framework governing sales tax collection and enforcement. By broadening the scope of who qualifies as a retailer, the bill aims to capture more sales tax revenue from transactions that are facilitated by a wide range of marketing and distribution channels. This is particularly pertinent in the context of the growing e-commerce sector, which has seen exponential growth and poses challenges for existing tax structures. The bill is set to bolster state revenue streams and promote fairness in the market by ensuring that in-state businesses are not put at a disadvantage compared to their out-of-state competitors.

Summary

House Bill 2403 is designed to clarify and amend the definitions and rules related to retailers and their obligations under the Texas sales and use tax law. The bill expands the definition of a retailer to encompass a broader array of business activities, specifically including those who engage in systematic solicitation of sales, irrespective of the physical presence within the state. This change aims to enhance the state's ability to collect sales taxes, especially from out-of-state retailers and e-commerce businesses that may have previously been exempt from taxation due to their lack of physical presence in Texas.

Contention

Notably, discussions surrounding HB2403 may reflect points of contention from varying perspectives. Proponents argue that the bill is essential for updating outdated tax laws to reflect modern retail practices, while opponents might claim that it could impose burdens on small businesses that engage in online sales but do not have the resources to comply with complex tax obligations. Additionally, there may be concerns regarding the potential overreach of the state in regulating interstate commerce and the burden placed on businesses to navigate varying tax obligations across states.