Proposed Rule: Title 34, Section 3.334

In the wake of South Dakota v. Wayfair, Inc. there have been many concerns and questions regarding what the decision means for all of us in Texas.  Proposed rule changes to Title 34, Section 3.334 of the Texas Administrative Code will provide clarity for cities and other local government entities of all sizes to receive the local tax revenue from online purchases to which they’re entitled.

Please read a Letter from our organization regarding our support for the efforts underway at the Comptroller of Public Accounts of Texas.

Teresa Bostick
Tax Policy Division
Comptroller of Public Accounts
P.O. Box 13528
Austin, TX 78711-3528

re: Comments on the Proposed Rule 3.334

Dear Mrs. Bostick:

By means of introduction, the Rio Grande Valley Partnership advocates for the prosperity of our four-county region, which consists of Starr, Hidalgo, Willacy and Cameron County. 

We are writing to express our support for the efforts underway at the office of the Comptroller of Public Accounts for the proposed rule changes to Title 34, Section 3.334 of the Texas Administrative Code. The rule change will provide clarity for cities and other local government entities of all sizes to receive the local tax revenue from online purchases to which they’re entitled. Doing so will enable our local governments to reach a new level of growth that is at par with what we are experiencing nowadays with the internet.

The internet has revolutionized the modern shopping experience, impacting sales tax collection and its distribution- therefore the 86th Texas Legislature passed HB 1525 and HB 2153. These laws address the collection of state and local sales taxes from remote sellers that have no physical presence in Texas.

A large majority of Texas cities and rural communities are losing revenue they need to provide services to the taxpayers who actually made the purchases made through the internet.

The sales and use tax revenue being collected at the moment is sent to cities that have economic development agreements with businesses which creates an unfair and unbalanced approach to your efforts to clarify the sales tax policy.

We ask that you enact the rule change to ensure that all local entities receive their fair share of local tax revenue from rising internet sales. Taxpayers pay local sales tax on online purchases for the benefit of their communities and they may not be aware that that the revenue from their sales taxes is being distributed to businesses and other cities.  

We humbly ask that your office implement the rule change, with delay of action- local sales tax revenue will continue to be shifted away from its intended beneficiaries.

Please advise if you need additional information from your partners in the Rio Grande Valley.

Sincerely,

The Brownsville Community Improvement Corporation