Tax Policy News

June 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 Discussions Comming Soon

Sales Tax – Vending Machine Sales Located on School Campuses

The Tax Policy Division will host a sales tax roundtable discussion on the sale of food, soft drinks and candy through vending machines on school campuses. The division will post registration information online as soon as the date has been set.


Sales Tax Holiday is August 8, 9 and 10!

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 various interested organizations.

Recent events include these presentations:

  • Cross-Border Commercial Vehicle Operations Conference in Laredo – An overview of the International Fuel Tax Agreement, the International Registration Plan and the current requirements for transportation companies wanting to operate between Texas and Mexico. Attendees included U.S. and Mexico federal government transportation officials, U.S. and Mexico state government officials, and U.S. and Mexico domiciled ground transportation companies.
  • 2014 Texas Society of Certified Public Accountants Nonprofit Organizations Conference in Dallas – The presentation included a discussion of Sales and Use Tax rules as they relate to nonprofit entities.
  • Oil, Gas, Fuels and Miscellaneous Taxes Section personnel toured the Dallas Area Rapid Transit compressed natural gas and liquefied natural gas refueling facility.

Form Revision

Hotel Occupancy Tax

The Comptroller revised the Texas Hotel Occupancy Tax Exemption Certificate (Form 12-302) to clarify hotel tax exemptions between state and local taxing authorities and permanent residents.

Website Update

Franchise Tax Credit for Qualified Research and Development Activities

The Comptroller created a new Web page to explain the new law that allows taxable entities engaged in qualified research (as defined by Internal Revenue Code, Section 41) to claim either a franchise tax credit based on qualified research expenses or a sales and use tax exemption on the purchase, lease, rental, storage or use of depreciable tangible personal property directly used in qualified research.

Rules - Proposed and Withdrawn

Proposed Rules

State Sales and Use Tax

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

Rule 3.334 – Local Sales and Use Taxes

Rule 3.345 – Annual Refund Program for Providers of Cable Television, Internet Access, or Telecommunications Services

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

Withdrawn Rules

Motor Fuel Tax

A withdrawal notice for the proposed amendment to Rule 3.430, Records Required; Information Required, will be proposed in the May 30, 2014, issue of the Texas Register. The original proposal was published in the March 14, 2014, issue of the Texas Register.