Related entities that are also providers of cable television, internet access or telecommunications services may request one refund on behalf of all related companies. The related companies should choose one entity to submit the refund request and supporting documentation on behalf of all related companies. Taxpayers filing a combined claim for refund must include a completed Form 00-985, Assignment of Right to Refund (PDF) for each qualifying related entity. Assignment of Right to Refund forms should be emailed to firstname.lastname@example.org at the time the claim of refund is filed.
Providers of cable television, internet access or telecommunications services can claim a refund of the 6.25 percent Texas state sales and use tax paid on qualifying purchases.
A "qualifying purchase" is tangible personal property:
The refund does not apply to the following:
In 2015 and thereafter, providers and their subsidiaries can submit refund requests annually for Texas state sales and use tax paid on qualifying purchases during the entire preceding calendar year.
A provider or its subsidiary claiming the sales and use tax refund under this program cannot claim special property tax benefits for economic development under Tax Code Chapter 313, Subchapter B on that same tangible personal property.
This program's total available refund amount is capped at $50 million each calendar year. If the total of all qualifying refund requests received for a calendar year exceeds this cap, each provider or subsidiary submitting an eligible refund request will receive a pro rata share.
Providers of cable television, internet access or telecommunications services can request a refund of Texas state sales and use tax paid on qualifying purchases. Subsidiaries of a provider can also request a refund but must identify the associated provider on the refund request. The terms "parent" and "subsidiary" are defined in Texas Business Organizations Code, Sections 1.002(85) and 1.002(65), respectively.
Providers and subsidiaries requesting a refund must submit all required information to the Comptroller. Providers and subsidiaries should submit only one claim per applicable refund period that covers all Texas state sales and use tax paid on qualifying purchases during the refund period. The Comptroller can request additional documentation during the verification process and will deny refunds if all required documentation is not provided.
Submissions by third parties must include a Power of Attorney. These should be emailed to email@example.com. The subject line of the email should reference the taxpayer name and taxpayer number who is submitting the refund claim.
Providers and subsidiaries should file refund claims electronically, using our online system.
|Vendor Name||Taxpayer Number Who Paid Tax to State||How Paid||Invoice Number||Invoice Date||Item Description||Payment Date||Amount Subject to Tax||Amount of State Tax Refund Requested|
|Willow Equipment Company||12300000168||Assessed||0013135-001||09/01/2013||Router||09/01/2013||40.000.00||2,500.00|
|Willow Equipment Company||12300000168||Accrued||1452||10/17/2013||Servers||10/17/2013||10,286.00||642.88|
|L & L Supply||12300000093||Paid to Vendor||INV100-154168||11/14/2013||Wiring||11/14/2013||971.58||60.72|
|L & L Supply||12300000093||Refunded||INV100-154168||11/14/2013||Wiring||11/14/2013||-971.58||-60.72|
|Vendor Name||text||50||Input vendor (seller) name from the invoice.|
|Taxpayer Number Who Paid Tax to State||number||11||
|Invoice Number||text||30||Enter the invoice number exactly as it appears on the invoice.|
|Invoice Date||date||mm/dd/yy||Enter the invoice date in mm/dd/yyyy format.|
|Payment Date||date||mm/dd/yy||Enter the date the tax was paid in mm/dd/yyyy format. This date must be during a valid period for this refund request.|
|Amount Subject to Tax||number||12||Enter the total dollar amount on which sales or use tax was calculated for qualifying items on this invoice.|
|Amount of State Tax Refund Requested||number||10||Enter the amount of state tax (6.25%) paid on qualifying items on this invoice.|
Providers and subsidiaries can request a waiver from electronic filing if they cannot file electronically. Waiver requests must be submitted at least 30 days before the refund claim deadline and must include a detailed written explanation of the provider's inability to file electronically. Send a request for a waiver from electronic filing to the Comptroller of Public Accounts, P.O. Box 13003, Austin, TX 78711.
Email requests filed after the refund request date to firstname.lastname@example.org. Include the following information in the body of the email:
A CSV file containing the information described in the Data Required to Request Refund table must be submitted upon request. See the Electronic Claim Submission section for an example of an approved CSV file and additional information regarding the file.
To be considered timely, a claim for refund of Texas state sales and use tax must be filed by the refund request date. The refund request date is March 31 of the year immediately following the calendar year in which the tax was paid. If the refund request date falls on a Saturday, Sunday or legal holiday, the refund request date will be the next business day.
The Comptroller will deny late-filed claims for lack of funds if the total amount of eligible requests for the applicable refund period received by the refund request date is greater than $50 million. If the total amount of eligible requests received by the refund request date for the applicable refund period is less than or equal to $50 million, we will process late-filed requests on a first-come, first-served basis.
The Comptroller's Audit Division verifies refund claims. A refund claim will be denied if the Comptroller determines that the taxpayer requesting a refund was not a provider of a qualifying service, or a subsidiary of a qualifying provider, during the calendar year on which the claim is based.
Additionally, the refund amount will be reduced if the Comptroller determines that the request includes items:
The amount of refund available to each provider or subsidiary for a calendar year depends on whether the $50 million cap is met.
$50 million or less claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is less than or equal to $50 million for the calendar year, the Comptroller will refund the full amount of Texas state sales and use tax paid on qualifying purchases, as claimed by each provider and subsidiary and verified by the Comptroller.
More than $50 million claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is more than $50 million for the calendar year, the Comptroller will prorate the amount of refund.
For initial refund payments, each provider and subsidiary will be entitled to a pro rata percentage of the amount requested by the provider or subsidiary and verified by the Comptroller. The pro rata percentage will be determined by comparing the $50 million available for refund to the total amount of all claims submitted for refund.
The Comptroller's Audit Division will provide refund verification results to providers and subsidiaries that have submitted a claim. If additional information is required to process the claim, the Comptroller will send a written request for more information to the provider or subsidiary, who must provide the information to the Comptroller within 30 calendar days.
If the Comptroller denies a claim, in whole or in part, the provider or subsidiary who submitted that claim will receive a written notice that explains the reason(s) for denial and identifies the amount approved for refund, if any. Providers or subsidiaries who receive a denial notification can appeal the denial by timely requesting a hearing.
$50 million or less claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is not more than $50 million for the calendar year, the Comptroller will issue refund payments equal to the amount of each approved refund claim by Aug. 31 of the year that follows the calendar year in which the tax was paid.
More than $50 million claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is more than $50 million for the calendar year, the Comptroller will issue prorated initial refund payments by Aug. 31 of the year that follows the calendar year in which the tax was paid. The Comptroller will issue any additional refund payments at the conclusion of all appeals through the administrative hearings process and state courts.
Most providers or subsidiaries who receive a denial can request a hearing. To request a hearing, submit a letter with a statement of grounds within 60 days from the date printed on the denial notice. The postmark date, or its equivalent, on a request for hearing will constitute the filing date. The Comptroller will only consider hearing requests that are filed timely. See Rule 1.5.
Providers or subsidiaries whose late-filed requests are denied for lack of funds are not eligible to request a hearing.
If the total amount of Texas state sales and use tax claimed on qualifying purchases for a calendar year by all providers and subsidiaries that were eligible for a refund exceeds $50 million, the Comptroller will recalculate the total approved refund amount and each provider and subsidiary's pro rata percentage of that amount when all administrative and state appeals conclude. The Comptroller will issue an additional, final refund payment for that calendar year to eligible providers or subsidiaries.
If the approved refund claims exceed the $50 million cap for a calendar year, the Comptroller will pay the entire $50 million allocated for the refund program for that calendar year to qualifying providers or subsidiaries. The state will not retain any remaining funds resulting from claims denials.