You must report and pay state and local sales and use tax before you can apply for a refund. The law provides for a refund of taxes paid on qualifying items, not a credit. The law also requires payment of the tax and not merely an accrual.
The refund applies only to Texas state tax. Local tax will not be refunded.
Interest will not be paid on the refunds because the tax being refunded is not tax paid in error.
A subsidiary of a provider is a subsidiary for which a cable television provider, internet access provider, or telecommunications provider is the parent.
A qualifying purchase is tangible personal property (TPP) purchased, leased or rented by a provider or its subsidiary, and that is used or consumed by the provider or its subsidiary directly in, or during the process of:
In general, the TPP must directly carry the signal for the service provider. Some examples of qualifying purchases are:
The provider or its subsidiary must have paid Texas sales and use tax on the qualifying purchase in the calendar year immediately prior to the calendar year that the refund request is submitted.
The requestor must provide the following information for each transaction in their refund request:
See Sales Tax Rule 3.345, Annual Refund Program for Providers of Cable Television, Internet Access, or Telecommunications Services.
Common reasons why refund requests are denied:
Purchases that do not qualify include:Tangible personal property (TPP) that does not directly carry the signal. Some examples are:
The refund available to providers or their subsidiaries for a qualifying purchase is based on the sales price. The sales price is the total dollar amount for which tangible personal property is sold, leased, or rented. See Texas Tax Code Section 151.007.
For a qualifying purchase invoiced at the end of one calendar year, with the tax paid in the following calendar year, the refund request should be submitted for the calendar year when the tax was paid.
In your situation, because the tax was paid in January, the purchase should be included in the following year’s refund claim covering these purchases.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.