- In 2022, a Texas District Court ruled against Texas Tax Rule 3.334, citing procedural errors
- The court demanded the rule be corrected following proper Texas procedures
- The Texas Comptroller complied by re-amending and re-adopting the rule
- The amendment changed the definition of place of business for local sales tax purposes
- Under the new rule, a location needed sales personnel to be considered a place of business
- Locations with only technological setups like servers or websites did not qualify
- On December 3, 2025, the court invalidated the amended rule, supporting the cities’ stance
- The court found the amended rule’s definitions did not align with state laws regarding sales tax sourcing
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
