Texas Clears Up Server-Nexus E-Commerce Sales Tax Issue

[ECTNews]

 Both Houses of the Texas legislature have passed a bill that legislatively repeals a controversial regulation that has caused a great deal of concern to e-commerce vendors and to Web hosting companies. A state can only require a company to collect its sales tax if the company has a substantial physical presence, or "nexus," in the state, because of a 1992 U.S. Supreme Court case, Quill v. North Dakota. Until last July, the mere use of a server in a state -- without any other presence there -- had not been considered adequate to establish nexus.

Source: e-Commerce Times