Bill expanding Internet sales tax goes to governor - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Bill expanding Internet sales tax goes to governor

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AUSTIN, Texas (AP) — The Texas Legislature has passed a bill that would close a loophole in state law and require Internet businesses to collect sales tax.

State senators gave the legislation final approval Friday. The measure now awaits Gov. Rick Perry's signature before it can become law.

The bill changes the definition of "physical presence" in the state, appeasing local retailers who complain that Internet retailers have an unfair price advantage.

Under the law, companies such as Amazon.com will be forced to collect sales taxes if they pay marketers in Texas to advertise.

Spokesman Eric Bearse of the Alliance for Main Street Fairness says it's important for everyone to collect sales tax since Texas relies heavily on it for revenue.

Four other states have passed similar laws.