AUSTIN, Texas (AP) _ The Texas House Ways and Means Committee is hearing testimony on a bill that would require Internet retailers to collect state sales tax if the company has any kind of connection to Texas.
The bill could bring in hundreds of millions of dollars in new sales taxes at a time the state is facing a $23 billion budget shortfall.
State Rep. Elliott Naishtat, an Austin Democrat, introduced the bill. He explained how customers frequently try out a product in a local store, but then buy it online to avoid sales tax, hurting local business.
Amazon recently announced it was shutting down a warehouse in Texas to avoid having to pay sales tax. A similar law has already passed court review in New York.
(Copyright 2011 by The Associated Press. All Rights Reserved.)