Texas Senate Bill SB2376

Texas 2019 - 86th Regular

Caption

Relating to the collection of sales and use tax by providers of certain services.

Impact

The implications of SB2376 on state laws include a more structured approach to tax collection for certain service providers, which may improve compliance and simplify the tax collection process. By clarifying the point of transaction as the delivery of service, the bill could reduce disputes regarding taxation and streamline revenue collection for local and state governments. The amendments made in the tax code aim to ensure that tax obligations are clearly defined for providers, potentially resulting in increased revenue for the state through more accurate reporting and collection of sales tax.

Summary

SB2376 addresses the collection of sales and use tax by providers of certain services delivered through satellite or cable systems. This bill focuses on the method of determining tax liability and emphasizes that sales of these services are consummated at the point of delivery to the consumer. It mandates service providers to assess and collect the appropriate amount of tax for each consumer served, thereby establishing a means of taxation that is both specific and tailored to the consumer’s service usage.

Contention

Notable points of contention surrounding the bill may revolve around the balance between state regulation and local taxation practices. Some stakeholders, particularly smaller service providers, might express concerns over the administrative burden of accurately determining tax amounts for each specific consumer. Moreover, there could be discussions about the fairness and equity of taxing these services uniformly across the board, especially in cases where the nature of the service delivery varies significantly between providers.

Final_note

Overall, SB2376 represents a significant step towards addressing tax collection practices for emerging service delivery channels, promoting clarity and efficiency while potentially sparking debate on the implications of state-level tax regulations on local economies.