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One Step Closer to an Internet Sales Tax in Texas
By Abraham Hamadeh on May 16, 2011
Last week, the Texas Legislature passed HB 2403, a bill aimed at taxing your internet purchases. Currently, purchases made over the Internet are tax-free if the company does not have a physical presence within the state. The bill expands the definition of a “nexus” or physical presence to include warehouses and distribution centers where online retailers distribute goods. Four other states have passed a similar measure, and Senators Dick Durbin (D-Ill.) and Mike Enzi (R-Wyo.) seek to create a quasi-federalized internet sales tax under the Main Street Fairness Act of 2011.
The bill increases your taxes and seeks to limit your online shopping. It also expands the role of government and creates burdensome regulations on Internet retailers. Internet retailers have already threatened to leave Texas because of these regulations and taxes, leaving hundreds of Texans unemployed.
Tell Governor Rick Perry to VETO HB 2403.