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Senate Bill 1533 |
Senate Author: Carona |
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Effective: 9-1-13 |
House Sponsor: Ratliff |
Current law establishes that any outlet, office, facility, or location that contracts with a retail or commercial business to process for that business invoices, purchase orders, bills of lading, or other equivalent records onto which sales tax is added is not a "place of business of the retailer" for purposes of the Municipal Sales and Use Tax Act if the comptroller determines that the outlet, office, facility, or location functions or exists to avoid such taxes or to rebate a portion of those taxes to the contracting business. Senate Bill 1533 amends the Tax Code to clarify that such an outlet, office, facility, or location does not exist to avoid the taxes legally due or solely to rebate a portion of such taxes if the outlet, office, facility, or location provides significant business services, beyond invoice processing, to the contracting business, including logistic management, purchasing, inventory control, or other vital business services.