Legality of Amazon’s Deal with Texas Is Questioned

On the heels of last week’s Amazon Tax Update, we read news yesterday that questions the legality of the deal made by Texas Comptroller Susan Combs to forgive Amazon.com’s $269 million Texas sales tax debt. According to the Austin American-Statesman, the deal, in which Amazon promised to bring 2,500 jobs and $200 million in capital investment to Texas, could be declared illegal, based on an undisclosed, “immaterial payment” made on the original $269 million debt, as well as the fact that the Texas state constitution prohibits forgiving tax debts.

Wiping the Slate Clean: Texas’ 2012 Tax Amnesty Program

Are you worried because your company has unreported or under-reported Texas state taxes?  Have you been making taxable sales in Texas without a permit? Do you want to remedy the situation but worry that bringing the mistake to the attention of the Comptroller will subject your business to hefty penalties and interest?

Company officers are often surprised to learn that several options are available to them if they find they have become delinquent on state and local taxes. Although it may appear as if there is no recourse in these situations, companies can settle delinquent accounts with state taxing authorities and are often eligible to have the penalties and interest on these accounts waived

While a VDA (Voluntary Disclosure Agreement) may be filed by a company in participating states at any time, many states also implement periodic amnesty programs. These programs usually allow those that have failed to file tax reports (or have incorrectly reported a lower tax amount) during a specific period to come forward and pay the taxes owed. In most cases, the penalties and interest for these taxes is forgiven by the state taxing authority.

Companies doing business in Texas have the opportunity to take advantage of an amnesty program beginning this June. Texas Comptroller Susan Combs has announced that the Fresh Start program will run from June 12 through August 17, 2012, during which time businesses can, according to Combs, “set their tax records straight and save money by not having to pay penalty and interest on tax reports they had failed to file.”

Increased Cooperation Between the TABC and the Comptroller Means More Texas Mixed Beverage with Food and Beverage (RM Permit) Renewals Are Being Denied

Our Licensing and Permitting consultants have been noticing some trends that may directly affect Texas bar and restaurant owners’ alcohol permits:

First, we are seeing increased monitoring and exchange of information in general between the Texas State Comptroller and Texas Alcoholic Beverage Commission (TABC). This means that there have been increased suspensions of permits for businesses that are delinquent on Mixed Beverage Tax, Sales/Use Tax, and other state taxes.

Texas Comptroller’s New Website Aims To “Keep Texas First”

Just announced by the Texas Comptroller’s office: the new website Keeping Texas First, which aims to raise awareness of federal regulatory action related to endangered species and the environment in Texas.

Containing information on the geographic areas, communities and industries affected by the proposed measures, the website’s goal is to provide clear and current data to keep business- and landowners updated on the status of these proposed federal initiatives.

We’ll be keeping an eye on this website in the future — of particular current interest is the fate of the initiative to put the Dunes Sagebrush Lizard on the federal endangered species list. As we mentioned a couple of months ago in our newsletter, this would have disastrous effects on the oil and gas industries in Texas and New Mexico.