Big Government has previously discussed the Texas legislature’s surprising move of passing legislation aimed at forcing out-of-state, online only retailers to collect and remit to the state sales/use tax.
Such legislation is constitutionally dubious, and sources say, may well be vetoed by Gov. Rick Perry for multiple reasons. First, opponents say the bill would increase taxes to the tune of $60-plus million a year. Second, it appears unlikely to pass constitutional muster.
But third, other red states like South Carolina and Tennessee that are keen to attract and retain business appear to be rejecting similar moves, thus potentially marginalizing the Lone Star state should H.B. 2403– the bill in question– be allowed to become law.
From CNBC:
The House voted 97-20 to give Amazon a five-year exemption from collecting sales taxes from online shoppers in South Carolina.
From the Houston Chronicle:
Tennessee lawmakers on Wednesday backed off trying to force Amazon.com to collect sales taxes on transactions in the state, at least for this year.
Texas is widely regarded as one of the most business-friendly states in the country, and it has a relatively low unemployment rate of 7.7% to prove it.
Risking harm to the state’s economy and moving in an anti-business direction when Texas has occupied such an enviable position seems unlikely to be something legislators will ultimately support, in view of the news out of South Carolina and Tennessee. Gov. Perry appears even less likely to go along with this.