TEXAS TAX RESPONSIBILITIES AND RESOURCES FOR SELLERS AFTER WAYFAIR
As a result of the U.S. Supreme Court’s June 21, 2018 decision in South Dakota v. Wayfair, Texas businesses selling items or services into other states may be required to collect taxes for those states. Additionally, sellers outside of Texas who were previously not required to collect and remit Texas sales and use tax may have to begin collecting Texas tax on their sales into Texas beginning on Oct. 1, 2019.
The Comptroller has updated Rule 3.286 (Seller’s and Purchaser’s Responsibilities) to address the permitting and collection requirements of sellers because of the Wayfair decision. These changes are effective on Oct. 1, 2019. This includes transition rules to explain how remote sellers determine when they have to start collecting. In the near future, the Comptroller will also update its franchise tax rules because of the Wayfair decision.
In addition, the 86th Legislature (2019) adopted HB 1525, which creates new tax responsibilities for marketplace providers and marketplace sellers, and adopted HB 2153, which provides a single local tax rate for remote sellers. These two laws become effective Oct. 1, 2019.