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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 80(R)

House Bill 2010

House Author:  Rose

Effective:  9-1-07

Senate Sponsor:  Watson


            House Bill 2010 amends the Civil Practice and Remedies Code to provide that a district court has original jurisdiction of a proceeding seeking a declaratory judgment if the party seeking declaratory relief is a business organized under state law or otherwise owned by a Texas resident or is a registered Texas retailer and the responding party is an official of another state who asserts a claim that the party seeking relief is required to collect sales or use taxes for that state based on conduct of the business occurring wholly or partially in Texas. The bill provides that the business is entitled to declaratory relief if the required collection and remittance of such taxes constitutes an undue burden on interstate commerce under federal law and requires the court, in determining whether to grant the relief, to consider the factual circumstances of the business's operations that gave rise to the other state's demand and other courts' decisions interpreting the federal law.