Relating to a study on sales and use tax compliance.
If enacted, SB1713 would prompt a thorough investigation into the methods and potential ramifications of increasing sales and use tax compliance. It highlights several aspects including the fiscal impact on both the state and small local businesses, as well as the necessary investment in information technology that would be required to support these compliance initiatives. The bill also ensures an evaluation of any constitutional issues that might arise from the proposed compliance measures, emphasizing its intention to adhere to legal frameworks while seeking reform.
SB1713 is a legislative act concerning a study focused on enhancing compliance with sales and use tax collection and payment under Chapter 151 of the Texas Tax Code. The bill mandates the comptroller to explore various methods that could improve compliance, including possibly imposing registration or reporting requirements on individuals who refer customers to out-of-state retailers. Furthermore, it suggests retailers should inform purchasers about their use tax obligations to foster greater awareness and adherence to tax laws. This act aims to investigate the strategies adopted by other states and assess their effectiveness in achieving better compliance.
The sentiment surrounding SB1713 exhibits a generally supportive tone, particularly among legislators focused on strengthening tax collection efforts. The anticipation of increased revenue from improved compliance is seen favorably by many, as it could benefit state programs dependent on tax funding. Nonetheless, there may also be concerns regarding the feasibility of implementations and the potential burden it may place on smaller retailers, who could be disproportionately affected by new registration and reporting requirements.
Notable points of contention include the balance between enhancing tax compliance and imposing additional burdens on businesses, particularly smaller ones, which might struggle with new regulatory requirements. The thoroughness of the study, required to uncover all potential impacts and propose effective compliance solutions, will be crucial for garnering broad support. Legislators and stakeholders will need to navigate these discussions carefully, weighing the benefits of increased tax revenue against the possible challenges presented to business operations.