Texas Asks Court to Revive Rules on Tax Flow for Online Sales

Texas wants a state appeals court to reinstate its regulations seeking to shift the flow of local sales tax revenue away from cities that are hubs for online commerce.

A trial court struck down the rules in December, finding they violate statutory schemes for determining where a sale is consummated.

The ruling was a win for six cities that argued the rules would shift tax revenue from fewer than 100 jurisdictions with company warehouses, sales centers, or offices to hundreds of cities and counties where customers live.

The rules also undercut long-term deals the cities have with retail giants to ...