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Regardless of other activity or lack there of, if a company is domiciled in Texas it has substantial nexus and must collect and remit sales and use tax accordingly. The only way to change this status is by dissolution and then incorporating in another state. (Letter, Texas Comptroller of Public Accounts, No. 200209447L, Sept. 19, 2002.)

(12/15/2002)

In a ruling by the Texas Comptroller’s office, an out of state business whose only presence in Texas was software licensed to customers, was deemed to maintain a sufficient presence or nexus such that it is required to collect Texas use tax on it license fees. The state argued that the software is tangible personal property and the licenses are akin to leases and therefore the software company maintained property within the state. The number of licenses and the fact that they were not perpetual "shrink-wrap" licenses provided a sufficient presence in the Comptroller’s opinion. (Texas Comptroller of Public Accounts, Hearing No. 36,237, July 21, 1998)

(08/15/1998)

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