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Texas Court of Appeals Addresses Sovereign Immunity

In State and Local, Texas Tax by Edward CortsLeave a Comment

On March 19, 2020, the Texas Third Court of Appeals, issued its opinion in Hegar et al. v. J.D. Fields & Company, Inc., Tex. Ct. App. (3rd Dist.), No.03-19-00351-CV, 03/19/2020).  The court ruled that a taxpayer’s sales tax protest is not barred by sovereign immunity. The taxpayer, J.D. Fields & Company, Inc. (hereinafter “Taxpayer”) in this matter is a pipe …

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Collecting Sales Tax in Texas: An Overview for Small Business Owners

In State and Local, Texas Tax by Jason B. FreemanLeave a Comment

Businesses that make their products or services available for sale in Texas can unwittingly be held liable for Texas sales or use tax.  This means that anyone—a business or an individual—offering products or services for sale in the state of Texas, whether online, in their living room, or through brick-and-mortar stores, is generally responsible for collecting sales tax from their …

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RECENT IMPLEMENTATION OF ECONOMIC NEXUS THRESHOLD FOR TEXAS FRANCHISE TAXES IN THE WAKE OF WAYFAIR, INC.

In Nexus, State and Local, Texas Tax by Edward CortsLeave a Comment

In the December 20, 2019, issue of the Texas Register (44 TexReg 8021), the Texas Comptroller of Public Accounts (“Comptroller”) announced that it was adopting proposed amendments[1] to the “nexus” section of 34 TAC §3.586.  The proposed amendments establish rules in which a non-Texas entity can create “nexus” with Texas without having a physical presence in the state.  The effective …

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Wayfair in the Lone Star State

In Nexus, State and Local by freemanlawdevLeave a Comment

The Supreme Court’s decision in South Dakota v. Wayfair created a monumental shift in the state tax landscape. Prior to the Court’s decision, forty-one states passed “kill Quill” laws in an effort to override the default physical presence rule. In its 5-4 decision, the Court abandoned the physical presence requirement established by Quill Corp v. North Dakota. As a result, …

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Third Time’s A Charm: South Dakota v. Wayfair

In State and Local by freemanlawdevLeave a Comment

On June 21, 2018, the Supreme Court issued a monumental 5-4 decision in South Dakota v. Wayfair. The Court’s decision overturned decades of precedent, holding that the physical presence rule established by Quill Corp. v. North Dakotais “unsound and incorrect.”[1]What does this mean? Essentially, states are now permitted to require out-of-state sellers to collect sales tax from customers within their …

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A Battle of the Dakotas: South Dakota v. Wayfair

In Nexus, State and Local by freemanlawdevLeave a Comment

On April 17, 2018, the Supreme Court will hear arguments in South Dakota v. Wayfair. Why does it matter? The outcome of this case could substantially affect the current sales tax landscape for transactions executed over the internet. Currently, State X is not allowed to collect sales tax (from the seller) on retail purchases made over the internet unless the …

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Internet Tax Freedom: State Taxation and the Internet

In ITFA, State and Local by Jason B. Freeman1 Comment

On February 24, 2016, the President signed into law the Trade Facilitation and Trade Enforcement Act of 2015 (“TFTEA”), which permanently bans state and local jurisdictions from imposing taxes on Internet access or imposing multiple or discriminatory taxes on electronic commerce. The act made permanent a temporary moratorium on such taxes that has been in place—thanks to multiple short-term extensions—since …