AUSTIN, Texas (AP) — The Texas House Ways and Means Committee unanimously approved a bill that would increase sales tax collection on Internet transactions.
Proponents say the bill will even the playing field for local retailers who are required to collect state sales tax. Under current rules, if a company does not have a physical presence inside Texas, the company does not have to collect sales tax. Under state law, the customer is required to pay it instead, but rarely does.
The bill expands what constitutes a physical presence to include bloggers who are paid to promote sales on the other websites. Companies like Amazon.com often pay these bloggers a commission.
Amazon.com recently shutdown a warehouse in Irving after the state insisted the website must collect tax on sales in Texas.