On Oct. 1, two new sets of rules regarding sales tax collection in Texas took effect as a result of a 2018 U.S. Supreme Court decision, South Dakota vs. Wayfair. They require businesses selling items or services to purchasers in other states to collect taxes for those states, according to the Texas Comptroller of Public Accounts. The decision set the stage for buyers to pay local sales tax for purchases from major online marketplaces regardless of where those businesses are located. These collections will benefit local entities which collect sales tax, such as local municipalities.

A pair of new Texas laws codified the requirements this year. The 86th Texas Legislature this year adopted House Bill 1525, which establishes new tax responsibilities for marketplace providers and marketplace sellers, and HB 2153, which provides a single local tax rate for remote sellers who now must charge Texas sales tax to buyers in this state.