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Texas City Sues to Block Rules Shifting Tax From E-Commerce

July 12, 2021, 11:04 PM

The city of Round Rock, Texas, home to computer giant Dell Technologies Inc., petitioned a state trial court to block transaction sourcing regulations from state Comptroller Glenn Hegar. Round Rock said the rule is “invalid” and would stifle the flow of sales tax to the city from online commerce.

The city, in a lawsuit filed in Travis County District Court late Monday, alleges Hegar (R) exceeded his authority when he adopted regulations that take effect Oct. 1 declaring the internet is not a place of business but a geographic location is. The suit alleges Hegar “attempts to unlawfully ...