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Relating to a single local use tax rate as an alternative to
combined local use tax rates for computing the amount of local use
taxes remote sellers are required to collect and to the allocation
of tax revenue collected at that rate.
No fiscal implication to the State is anticipated.
HB 2153 would provide an optional and simplified means for computing the amount of local use tax remote sellers are required to collect following the SD vs. Wayfair US supreme court decision. This bill would require remote sellers to collect and remit sales and use taxes to the state by one of the following options: The combined rate of all applicable local use taxes authorized by Title 3 or at the sellers election a single local use tax rate to be published in the Texas register. Any seller who elects the single local use tax rate shall notify the comptroller. The single local use tax rate would be equal to the estimated average rate of all local taxes for the fiscal year. The rate will be estimated by taking the sum of the sales and use tax revenue under Title 3 for that year and the revenue remitted from remote sellers under this section divided by the revenue remitted from remote sellers under this section. Then multiplied by 6.25% provided by Sec. 151.051 Tax Code and rounded to the nearest .0025
This essentially includes all of the rates and taxes named under Title 3 into a single estimated rate rounded to the quarter of a percent to be remitted to the state by remote sellers. The comptroller would administer. collect, and enforce this single use rate and apportion the revenue according to Sec. 403.107 which would be amended to facilitate the above amendments.
Texas Action remains neutral on HB 2153 as it neither offends nor promotes our principles. However, the bill makes strides to simplify the collection and remittance process following the South Dakota vs. Wayfair decision.