Texas Insider Report: AUSTIN Texas Texas Comptroller Glenn Hegar today issued initial guidance on the implications of the recent U.S. Supreme Court decision in
Wayfair v. South Dakota commonly referred to as
Wayfair.
As is often the case with Supreme Court decisions the principles can be applied broadly on a nationwide basis including here in Texas" Hegar said. But its up to my office to implement those principles in the way that best serves the state of Texas our citizens and the businesses operating here. Were going to make sure we do this carefully deliberately and with ample input from the public the Legislature and the business community."
Under its existing legal authority the Comptrollers office has started reviewing rules that may need updating. Hegar stressed however that this would not include any retroactive application of the new law to remote sellers that have no physical presence in Texas.
Were looking forward to working with those affected businesses to ensure this is a smooth transition and a successful partnership" Hegar said.
Early 2019 is the target effective date for rule amendments; however that could change pending issues that arise during the rulemaking process. Agency staff intends to meet regularly to solicit input from interested parties including retailers remote sellers trade associations and the Comptrollers Taxpayer and Business Advisory Group. The agency also will consult with local taxing entities on potential impacts to local collections and allocations.
The Comptrollers office also expects the Texas Legislature to play an important role in addressing key issues when they return in January 2019.
We have started reaching out to state leaders and legislators and will ensure theyre kept fully briefed on our progress" Hegar said.
The agency anticipates that the state and local governments will see tax collections increase but the amount depends on the implementation and resolution of several significant issues raised by the Supreme Courts ruling.
Gains from the ruling are likely to be lower than previous estimates of taxes uncollected by remote sellers. In the past year for example some remote sellers have volunteered to collect in anticipation of the
Wayfair decision or for other reasons. Wayfair the named plaintiff in this case already collects Texas sales and use taxes. Also in order to avoid imposing an undue burden on interstate commerce the state will likely relieve some out-of-state sellers from collection responsibilities. More specific estimates will be available as the implementation and legislative process continues.
