Texas Governor Vetoes Amazon Tax Legislation

Texas Governor Rick Perry vetoed newly-passed legislation that would have expanded its definition of nexus to include contractually-related companies, where one has property or in-state operations.

Texas House Bill 2403 passed the House and Senate, and went to the governor’s desk on May 13th for signature.

Under the bill, companies maintaining personal property and inventory in the state would also be required to collect and remit sales tax, even if the property/inventory is held and managed by a separate company.

In vetoing the bill, Gov. Perry expressed a desire to have a larger policy discussion with the state, other states and the federal government over changes to interstate commerce taxation laws.

The changes may not be irretrievably dead, however. A Special Session of the Texas Legislature has been called to complete the state budgetary process, and proponents of the legislation are hoping to bring it back for consideration.

Currently 8 states have Internet sales tax legislation already on the book (Arkansas, Colorado, Connecticut, Illinois, New York, North Carolina, Rhode Island and South Dakota.), with another 7 considering the same (Arizona, California, Hawaii, Louisiana, Mississippi, New Mexico and Vermont).