On October 27, the comptroller published notice of changes to the office’s administrative rules governing local sales tax sourcing. The proposal would add the following language to the existing sales tax sourcing rule governing the location where an order is received:
“The location where the order is received by or on behalf of the seller means the physical location of a seller or third party such as an established outlet, office location, or automated order receipt system operated by or on behalf of the seller where an order is initially received by or on behalf of the seller and not where the order may be subsequently accepted, completed or fulfilled. An order is received when all of the information from the purchaser necessary to the determination whether the order can be accepted has been received by or on behalf of the seller. The location from which a product is shipped shall not be used in determining the location where the order is received by the seller.”
According to the comptroller, the new rule may “facilitate a more definitive decision from the courts” on related pending litigation.
The comptroller will hold a public hearing on November 8, 2023 to receive comments on the proposed rule change. The hearing will take place at 9:00 a.m. in Room 2.034 of the Barbara Jordan Building, 1601 Congress Avenue, Austin, Texas 78701. Interested city officials may sign up to testify starting at 8:30 a.m. and testimony will be heard on a first come, first served basis.