Tax Policy News

July 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...

Roundtable Discussion - July 16

Sales Tax – Sales through Vending Machines on School Campuses

On July 16 at 2 p.m., the Tax Policy Division will host a sales tax roundtable discussion about the sale of food, soft drinks and candy through vending machines on school campuses.

Registration information is online.

To keep attendance at a level that provides a fruitful discussion, we will limit attendance to a maximum of 25 participants. We will notify selected participants by email.


Insurance Tax

Premium Tax Prepayments

Licensed insurance companies, licensed captive insurers and miscellaneous organizations with a net tax liability for the previous calendar year in excess of $1,000 must prepay premium tax semi-annually.

The second semi-annual prepayment must be made on or before Aug. 1.

The first semi-annual prepayment should have been made on or before March 1, 2014, or at the same time that the annual statement was required to be filed. Since March 1was a Saturday, the next business day, March 3, 2014, became the due date.

For more information concerning prepayments, see Form 25-101.

Sales Tax

Sales Tax Holiday

This year's annual sales tax holiday begins at 12:01 a.m. on Friday, August 8 and ends at midnight on Sunday, August 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.

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 Taxes section recently presented information about Motor Vehicle Sales and Use Tax at the Tax Assessor-Collectors Association Annual Conference in Fort Worth.

Form Revision

International Fuel Tax Agreement (IFTA)

The Comptroller updated the International Fuel Tax Agreement (IFTA) Report (Form 56-101) and IFTA Fuel Tax Report Supplement (Form 56-102) beginning with the second quarter reporting period. These forms are filed by IFTA licensed commercial carriers that travel interstate.

Retail Credit Fee

The Comptroller updated the Retail Credit Fee Report (Form 01-139), which is filed by a retail seller that assesses a delinquency fee of greater than $10 on a retail charge payment that is in default longer than 21 days.

The law requires 50 cents of each delinquency fee greater than $10 to be remitted to the Comptroller to finance research, educational and counseling services provided by the Texas Finance Commission.


Sales Tax

The Comptroller has created a new Garage Sales and Texas Sales Tax publication to clarify when sales tax is due on personal items sold at garage sales and similar sales. It defines "occasional" sales when tax is not due, and explains when a seller must have a sales permit and collect tax. The publication also covers tax responsibilities for group sales and for artists and other crafts sellers.

Website Update

Automotive Oil Sales Fee

The Comptroller updated the Automotive Oil Sales Fee Web page to provide more information about uses of the fee and used oil collection centers.

Insurance Taxes

The Comptroller updated the Insurance Premium Tax (Licensed Insurers) Web page to provide additional links to the relevant statutes and to the recently added Insurance Premium Tax (Licensed Captive Insurers) page.

Mixed Beverage Taxes

The Comptroller created a new Web page on Security Requirements for Mixed Beverage Permittees and updated the Mixed Beverage Gross Receipts Tax and Mixed Beverage Sales Tax Web pages to include a link to that page.

Motor Fuel Taxes

The Comptroller updated the Motor Fuels Tax Refunds Web page to provide more information to consumers requesting a refund of taxes paid on gasoline, diesel fuel, compressed natural gas or liquefied natural gas.

Rules - Proposed and Adopted

Proposed Rules

State Sales and Use Tax

Amendments to the following rule will be proposed for public comment through the Texas Register on July 4, 2014. The comment period ends 30 days after publication.

Rule 3.68 – United States and Foreign Military Personnel Stationed in Texas

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

Adopted Rules

The following rule adoption was filed with the Secretary of State on June 25, 2014. The effective date is July 15, 2014, 20 days after filing.

State and Local Sales and Use Taxes

Rule 3.338 – Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers