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A BILL TO BE ENTITLED
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AN ACT
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relating to declaratory relief for businesses in this state for |
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liability for sales and use taxes of other states. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 37, Civil Practice and Remedies Code, is |
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amended by adding Section 37.0055 to read as follows: |
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Sec. 37.0055. DECLARATIONS RELATING TO LIABILITY FOR SALES |
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AND USE TAXES OF ANOTHER STATE. (a) In this section, "state" |
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includes any political subdivision of that state. |
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(b) A district court has original jurisdiction of a |
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proceeding seeking a declaratory judgment that involves: |
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(1) a party seeking declaratory relief that is a |
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business that is: |
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(A) organized under the laws of this state or is |
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otherwise owned by a resident of this state; or |
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(B) otherwise qualified to do business in this |
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state; and |
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(2) a responding party that: |
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(A) is an official of another state; and |
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(B) asserts a claim that the party seeking |
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declaratory relief is required to collect sales or use taxes for |
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that state based on conduct of the business that occurs in whole or |
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in part within this state. |
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(c) A business described by Subsection (b)(1) is entitled to |
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declaratory relief on the issue of whether the requirement of |
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another state that the business collect and remit sales or use taxes |
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to that state constitutes an undue burden on interstate commerce |
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under Section 8, Article I, United States Constitution. |
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(d) In determining whether to grant declaratory relief to a |
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business under this section, a court shall consider: |
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(1) the factual circumstances of the business's |
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operations that give rise to the demand by the other state; and |
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(2) the decisions of other courts interpreting Section |
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8, Article I, United States Constitution. |
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SECTION 2. Section 37.0055, Civil Practice and Remedies |
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Code, as added by this Act, applies only to a cause of action that |
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accrues on or after the effective date of this Act. A cause of |
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action that accrues before the effective date of this Act is |
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governed by the law in effect at the time the action accrued, and |
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the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |