Texas Judge Blocks Rules Shifting Tax Flow for Online Sales

A Texas trial court judge struck down regulations from state Comptroller Glenn Hegar seeking to shift the flow of local sales tax revenue away from cities that are hubs for online commerce by declaring that the internet isn’t a place of business.

The final judgment from Travis County District Court Judge Karin Crump on Tuesday is a win for six cities that sued to block the regulations because they would shift tax revenue away from fewer than 100 jurisdictions with company warehouses, sales centers, or offices. The revenue would instead go to hundreds of cities and counties where customers ...