The Lege weighs in on Amazon, with opposing bills.
House Bill 2719, filed [Wednesday] afternoon by state Rep. Linda Harper-Brown, R-Irving, would favor Amazon’s efforts to avoid collecting tax for online sales by amending the state tax code to say that a company or individual can’t be classified as a retailer if if they — or a subsidiary or affiliate — operate or use “only a fulfillment center… or a computer server.” The bill defines a fulfillment center as “an establishment in this state at which shipments of tangible personal property are processed for delivery to customers.” The bill would also exempt a company meeting those criteria from having to give any state agency information about purchases made in Texas.
That measure is directly at odds with House Bill 2403, filed Monday by Rep. John Otto, R-Dayton, which aims to close loopholes in the Texas tax code that Amazon could use to support its claims that it doesn’t have to collect sales tax.
Otto said his bill is intended “to clarify the meaning of Texas law to prevent Internet retailers from evading tax liability that, to me, is established under current law.” Otto said he has talked with Sens. Steve Ogden, R-Bryan, and Tommy Williams, R-The Woodlands, about drafting a companion bill in the Senate.
Here’s HB2719, here’s HB2403, and here’s some background on this. I like this development for two reasons. One, Harper-Brown is going to be vulnerable next year pretty much no matter what happens in redistricting, and I’d rather have her on the wrong side of an issue like this. A little extra ammunition never hurts. Two, Otto is a Norquist disciple, so if he’s on board and recruiting Senate allies that strikes me as being a great omen for success. I’ll be keeping an eye on this.