Archive for the ‘Texas State Tax’ Category

Texas Bill Eliminating State Tax Loophole

Tuesday, November 8th, 2011

The Texas House of Representatives introduced a bill that directly affects out of state businesses using e-commerce in Texas. These out of state business such as are able to avoid paying large amounts of money in sales tax. This bill was passed in the Senate. The only thing that it lacks before becoming a law is the governor’s signature. If the governor chooses to sign the bill, it will not affect any of the previous year’s taxes.

The government will not be able to accrue state tax money from purchases made before the law was put into effect. For many companies, this law will affect them greatly. Many businesses, small and large, have been able to take advantage of a state tax loophole. This law eliminates that and ensures that it can not happen again. Internet selling has become a huge market. It is both very appealing to customers and businesses. Customers can shop from home and have a huge selection to choose from.

Also it is an easy way for stores to get their merchandise to places where it wouldn’t be readily available with just a physical store. It expands their customer base exponentially. They are also able to save money by getting around the sales tax. Because of this loophole, state taxes are dwindling. This also hurts physical businesses because they are at a distinct disadvantage competitively. They have to pay the state and local taxes where other businesses find a way around it.

The way the is worded implies that legislators believe that many companies are working this loophole in Texas. If this is the case, they will start looking for businesses that have taken advantage of this loophole once the law comes into effect. They will perform tax assessments and then ensure that this tax avoidance will not happen again. If you feel you may have used this loophole, you should talk with the state’s tax advisors. You need to find out what options you have before the bill is signed. It will become implemented in the beginning of the year. If you fall in this category, do not be alarmed. Taxes cannot be collected from anytime before the law was implemented.

In this day in age you need an individual you can count on, and at the Law Offices of Thomas D. Reino you get what you see. For more information on business law, or to get business law legal council please contact us by either phone at 817.303.2133, or by fax at 972.264.0891.