Posts Tagged ‘sales tax’

On June 10, 2011, the Texas House passed with amendments S1, the Senate omnibus fiscal matters bill, which contains myriad tax provisions including the sales tax provision which provides that online subsidiaries or affiliates of retailers with stores or other facilities in Texas have nexus with the state. In a June 9 press release, Texas Governor Rick Perry called on the state legislature to review the nexus issue further before changing Texas tax policy, and urged the legislature to remove the Internet sales tax language from the bill. Governor Perry vetoed H2403 containing identical nexus provisions on May 31, 2011. (L. 2011 S1 (1st S.S.); Statement by Gov. Rick Perry on Internet Sales Tax Language in Fiscal Matters Bill, 06/09/2011.)

On May 31, 2011, Texas Governor Rick Perry vetoed H2403, proposed legislation which provided that online subsidiaries or affiliates of retailers with stores or other facilities in Texas would have nexus with the state.

Governor Perry said that he had serious concerns about the impact and appropriateness of the bill, believing that it risked significant unintended consequences. The governor stated that his preference is to conduct a thorough policy discussion with Texas lawmakers, consumers, retailers and technology experts, as well as with other states and the federal government, about interstate commerce and the structure of sales taxes in the 21st century, and reach a consensus that balances competing interests, respects federalism, and is fair and equitable.

On May 13, 2011, the Texas Senate joined the House by passing H2403, which provides that online subsidiaries or affiliates of retailers with stores or other facilities in Texas have nexus with the state. The bill, which has not yet been sent to the governor, would be effective January 1, 2012 and would affect tax liability that accrues on or after that date.

The Texas Comptroller’s Office has transitioned from its original WebFile Sales Tax System to the new MyCPA WebFile system for sales tax.  The “CPA” in MyCPA stands for Comptroller of Public Accounts, not Certified Public Accountant.  It is for use by all taxpayers, not just Certified Public Accountants.

MyCPA is a secure login portal that allows an individual or authorized representative to set up one user account with access to multiple taxpayer IDs and their related taxes and business accounts.

The 81^st Legislature made significant changes to Texas tax laws.

The changes include the following:

• a new exemption from state and local sales and use taxes for certain school supplies during the annual August Sales Tax Holiday
• revisions to the collection and allocation of local sales and use taxes
• a new exemption for crude oil and natural gas taxes
• a new method for calculating the tax on tobacco products other than cigars
• a revised payment process for losses covered by the Texas Windstorm Insurance Association
• a revision to the motor vehicle orthopedic handicap exemption
• a new Prepaid 9-1-1 Emergency Service Fee

For more information about these changes to Texas tax laws and how they may affect you, please see the Legislative Update at www.window.state.tx.us/taxinfo/taxpubs/st_update.html