Update On Internet Retailer Sales Tax Laws

The Decisions Come Down

While Colorado is still mired in disputes over its modified Amazon law, California pressed forward by passing its version in the Assembly, voting to require use tax collection by many out-of-state retailers on purchases by California residents. The bill now heads to the California Senate, having passed the Assembly 12-5.

In a surprise move, Texas governor, Rick Perry, vetoed House Bill Number 2403. HB 2403 would have enabled Texas to require “online retailers with distribution facilities operated by a subsidiary—a tactic favored by Amazon.com—to remit taxes to the state.”

Perry’s official objection was published in the Texas Tribune:
I have serious concerns about the impact and appropriateness of House Bill No. 2403. In particular, I believe this legislation risks significant unintended consequences. My strong preference is to conduct a thorough policy discussion with Texas lawmakers, consumers, retailers and technology experts – and with other states and even the federal government – about interstate commerce and the structure of state sales taxes in the 21st century. That conversation is underway, and I believe that a consensus can and should be reached that balances the competing interests, respects federalism, and is fair and equitable. I call on the legislature to review this issue further while we reach out to our federal delegation and our friends in other states to build consensus.”

Texas recently handed Amazon a bill for sales taxes due based on its having a subsidiary warehouse in the state.

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