Tax Policy News

August 2014

The Comptroller's office publishes this online newsletter to keep you informed about Texas taxes and what is happening in the Tax Policy Division. Tax Policy News provides general information and is not a substitute for legal or other professional advice.

In This Issue...


Sales Tax Holiday

This year's annual sales tax holiday begins at 12:01 a.m. on Friday, Aug. 8 and ends at midnight on Sunday, Aug. 10. During this three-day period, Texas shoppers get a break from state and local sales taxes on purchases of school supplies, clothing and most backpacks priced under $100.

Franchise Tax – Texas Notice of Intent to Forfeit Right to Transact Business

On Aug. 8, the Comptroller will mail the "Texas Notice of Intent to Forfeit Right to Transact Business" form to taxable entities that failed to file the 2014 Franchise Tax report that was due May 15, 2014, if an extension of time to file was not requested and granted. The Comptroller will also send this notice to companies that failed to file a complete report or to pay the full amount due.

By law, the right to transact business cannot be forfeited before 45 days from the date the Comptroller mails the notice. During this period, when the company has received the notice of intent to forfeit, but the forfeiture has not yet occurred, the company's status on the Comptroller's Taxable Entity Search will remain as "active."

Public Outreach

Presentations by the Tax Policy Division

Members of the Tax Policy Division often receive requests to discuss taxability issues with interested organizations.

Members of the Sales and Motor Vehicle Tax section recently presented information about Motor Vehicle Sales and Use Tax at the Tax Assessor-Collectors Association regional meeting in Amarillo.

A member of the Tax Policy Division recently gave a presentation to the Associated Plumbing-Heating-Cooling Contractors of Texas in Buda, Texas about their sales and use tax responsibilities.

Sales Tax

Cable Television, Internet Access and Telecommunications Providers – Sales Tax Refunds

Providers and their subsidiaries can claim a refund for state sales and use taxes paid on qualifying purchases.

The refund request date for qualifying purchases made Sept. 1, 2013, through Dec. 31, 2013, is Sept. 2, 2014. Requests filed after the refund request date may be eligible for refund, if funds are available. Requests should be filed using the Comptroller's online system.

Other News

Mixed Beverage Sales Tax

The Comptroller sent a reminder with the June 2014 mixed beverage sales tax reports that the 8.25 percent mixed beverage sales tax is due on sales of all alcoholic beverages and mixers, not just distilled spirits. The tax should be reported on the Mixed Beverage Sales Tax Report (Form 67-103), not the Texas Sales and Use Tax Return.

Mixed beverage sales tax is in addition to the 6.7 percent mixed beverage gross receipts tax imposed on a mixed beverage permittee.

Rules - Proposed

Motor Fuel Tax

Amendments to the following rules were proposed for public comment through the Texas Register on July 25, 2014. The comment period ends 30 days after publication.

Rule 3.432 – Refunds on Gasoline, Diesel Fuel, Compressed Natural Gas, and Liquefied Natural Gas Taxes

Rule 3.448 – Transportation Services for Texas Public School Districts

Information about proposed rules is available from the Texas Secretary of State's website.