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House Bill 2403 |
House Author: Otto et al. |
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Effective: Vetoed |
Senate Sponsor: West et al. |
House Bill 2403 amends the Tax Code to include in the meaning of "seller" or "retailer," for purposes of provisions governing the state sales and use tax, a person who, under an agreement with another person, is entrusted with possession of tangible personal property with respect to which the other person has title or another ownership interest and who under that agreement is authorized to sell, lease, or rent the property without additional action by the person having title to or another ownership interest in the property. The bill establishes, for state sales tax purposes, the conditions under which a retailer is considered to be engaged in business in Texas with respect to the retailer's maintenance, occupation, or use of a facility or other physical location in Texas where business is conducted or the retailer's substantial ownership interest in, or ownership by, a person who maintains a location in Texas from which business is conducted.
Reason Given for Veto: "I have serious concerns about the impact and appropriateness of House Bill No. 2403. In particular, I believe this legislation risks significant unintended consequences. My strong preference is to conduct a thorough policy discussion with Texas lawmakers, consumers, retailers, and technology experts -- and with other states and even the federal government -- about interstate commerce and the structure of state sales taxes in the 21st century. That conversation is underway, and I believe that a consensus can and should be reached that balances the competing interests, respects federalism, and is fair and equitable. I call on the legislature to review this issue further while we reach out to our federal delegation and our friends in other states to build consensus."