Posts Tagged ‘Texas tax laws’
Texas Legislature Passes Previously Vetoed Sales Tax Nexus Bill
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.)
Texas Sales Tax Nexus Legislation Vetoed by Governor
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.
Texas Legislature Closes Physical Presence Loophole Used by Businesses to Avoid Sales Tax
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.
What to do with Unclaimed Paychecks
Employers must make a reasonable effort to contact an employee to prevent wages from being abandoned and remain liable for unclaimed wages until paid or turned over to the state. Why the state? Unclaimed paychecks or paychecks returned by the post office as undeliverable are governed by state law. State laws vary from one to seven years.
In the state of Texas, unclaimed wages must be reported to the state annually and are “unclaimed property.” According to the State of Texas Comptroller’s website:
The Texas Comptroller of Public Accounts is responsible for administering the Texas Unclaimed Property Program. Property is turned over to the Comptroller’s office annually when the owner’s whereabouts are unknown and the property has been inactive on the books of the reporting company after the appropriate abandonment period has expired.
Tax Law Changes You Need to Know
The 81st 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
