bill sourcing local sales tax where the item was stored

The text as introduced · 646 words

89R1181 BEF-D

By: Schofield
H.B. No. 924

A BILL TO BE ENTITLED

AN ACT

relating to the location where certain sales are consummated for

purposes of local sales and use taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 321.203(e) and (e-1), Tax Code, are

amended to read as follows:

(e) If Subsections (b), (c), (c-1), and (d) do not apply, a

[ A ] sale of a taxable item is consummated at the location in this

state where the item was stored immediately before shipment,

delivery, or transfer of possession to the customer [ to which the

item is shipped or delivered or at which possession is taken by the

customer if transfer of possession of the item occurs at, or

shipment or delivery of the item originates from, a location in this

state other than a place of business of the retailer and if:

[ (1) the retailer is an itinerant vendor who has no

place of business in this state;

[ (2) the retailer's place of business where the

purchase order is initially received or from which the retailer's

agent or employee who took the order operates is outside this state;

or

[ (3) the purchaser places the order directly with the

retailer's supplier and the item is shipped or delivered directly

to the purchaser by the supplier ].

(e-1) Except as otherwise provided by Subsection (f), (g),

(g-1), (g-2), (g-3), (h), (i), (j), (k), (m), or (n), a sale of a

taxable item made by a marketplace seller through a marketplace as

provided by Section 151.0242 is consummated at the location in this

state where the item was stored immediately before shipment,

delivery, or transfer of possession to the customer [ to which the

item is shipped or delivered or at which possession is taken by the

purchaser ].

SECTION 2. Sections 323.203(e) and (e-1), Tax Code, are

amended to read as follows:

(e) If Subsections (b), (c), (c-1), and (d) do not apply, a

[ A ] sale of a taxable item is consummated at the location in this

state where the item was stored immediately before shipment,

delivery, or transfer of possession to the customer [ to which the

item is shipped or delivered or at which possession is taken by the

customer if transfer of possession of the item occurs at, or

shipment or delivery of the item originates from, a location in this

state other than a place of business of the retailer and if:

[ (1) the retailer is an itinerant vendor who has no

place of business in this state;

[ (2) the retailer's place of business where the

purchase order is initially received or from which the retailer's

agent or employee who took the order operates is outside this state;

or

[ (3) the purchaser places the order directly with the

retailer's supplier and the item is shipped or delivered directly

to the purchaser by the supplier ].

(e-1) Except as otherwise provided by Subsection (f), (g),

(g-1), (g-2), (g-3), (h), (i), (j), (k), or (m), a sale of a taxable

item made by a marketplace seller through a marketplace as provided

by Section 151.0242 is consummated at the location in this state

where the item was stored immediately before shipment, delivery, or

transfer of possession to the customer [ to which the item is shipped

or delivered or at which possession is taken by the purchaser ].

SECTION 3. The change in law made by this Act does not

affect tax liability accruing before the effective date of this

Act. That liability continues in effect as if this Act had not been

enacted, and the former law is continued in effect for the

collection of taxes due and for civil and criminal enforcement of

the liability for those taxes.

SECTION 4. This Act takes effect September 1, 2025.