Texas House Defies Veto Of Internet Sales Tax Bill

AUSTIN (AP) – Lawmakers in the Texas House have a defied the governor’s veto of an Internet sales measure.

Legislators voted to keep a tax provision in an omnibus spending bill that would expand the number of Internet sellers who must collect sales tax. If the measure is not removed in conference committee, it would expand the definition of what it means to do business in Texas.

Right now Internet sellers like Overstock.com don’t have to collect sales tax because they are not physically present in the state. The bill would make a contractual agreement with a marketing agent inside the state a physical presence for tax purposes.

Gov. Rick Perry vetoed a separate bill earlier this month, but it is now inside a must-pass bill. But it can still be removed.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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