[mgkimsal]

The Comptroller's response here is the exact opposite of the language, based on what I'm reading. If "the language was not intended to be construed as so broad as to extend nexus to anyone using a server in Texas" then why use the language "A person is engaged in business in Texas if the person has nexus with the state as evidenced by, but not limited to, any of the following: [...] uses tangible personal property that is located in this state, including a computer server".

The "sale of data, such as music files" is a specifically defined process, wholly separate from "using personal property, including a computer server."

IMO, the state got caught trying to overreach, and they're playing the innocent "oh that's not what we meant!" hand. If it's not what you meant, change the language.

Words have meanings - someone knew exactly what he/she was doing when that was drafted. Especially given the large number of data centers hosting servers in Texas, with its central geography, cheap land/power, etc. The pain of migrating away is too great and expensive - people will just comply with the new taxes and most will stay. Some may leave, but it'll take a long time. In the short term - few years, TX will get extra income.