The Senate Finance Committee has reported out S.B. 1713 by Carlos Uresti (D-San Antonio). The Marketplace Fairness bill is modeled after a recent Colorado law and requires online businesses that sell to purchasers in Texas to either collect and remit sales taxes or notify the purchasers of their obligation to pay use taxes.
Other provisions of S.B. 1713 include:
- Economic nexus provides for “notification” similar to the Colorado law that required out-of-state retailers to notify consumers and the state that use tax is due if the seller does not collect and remit the tax.
- The comptroller would be allowed to levy penalties to companies that fail to notify; the penalties could only be used to pay for enforcement of the law; but there would be no penalties for consumers.
- The threshold for notification would be $250,000 in total sales by the retailer or 500 sales to Texas customers.
It is similar to laws passed in Colorado, Louisiana, and Vermont. The next step is for S.B. 1713 to be considered by the full Senate.
Groups in support of S.B. 1713 include:
- Texas Retailers Association
- National Federation of Independent Business
- Center for Public Policy Priorities
- Texas Municipal League