taxes

Tax Policy News

November 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 – Nov. 20, 2014

Insurance Tax – Computation of Retaliatory Tax by New York Domiciled Insurers

On Nov. 20 at 2 p.m., the Comptroller is hosting an Insurance Tax roundtable discussion on how the retaliatory tax is calculated by insurers domiciled in the state of New York.

The main topic of discussion will be the computation of the Metropolitan Commuter Transportation District (MCTD) allocation percentage on the Insurance Corporation MTA Surcharge Return form (New York CT-33-M).

Registration is open now through Nov. 10.

To keep attendance at a level that provides for fruitful discussion, we will limit attendance to a maximum of 15 participants. We will notify selected participants via email by Nov. 10.

  • DATE: Thursday, Nov. 20, 2014
  • TIME: 2 p.m. – 4 p.m.
  • LOCATION: Room 220S, Stephen F. Austin State Office Building, 1700 N. Congress Ave., Austin, Texas

Franchise Tax

2015 Franchise Tax Rates

The Comptroller has certified that probable revenue for the fiscal biennium ending Aug. 31, 2015, is sufficient to offset the loss in revenue from applying the Temporary Permissive Alternate Rates for franchise tax reports due in 2015.

Therefore, the Temporary Permissive Alternate Rates for 2015 provided in Texas Tax Code Section 171.0023 are effective.

The 2015 rates are:

  • 0.95 percent for most entities, and
  • 0.475 percent for entities that are primarily engaged in retail and wholesale trade.

Notice of the certification is in the Oct. 3, 2014, Texas Register.

Reminder

Franchise Tax

The deadline for filing extended Franchise Tax reports is Nov. 17.

We hope you will use Webfile to file your tax report electronically. Webfile helps us process your information quickly, efficiently and accurately.

Forms

Customs Broker License Application

The Comptroller updated the Application for Customs Broker License (Form AP-168) to show the current stamp fee and to clarify information required on the form.

Website

Insurance Tax

The Comptroller revised the Insurance Premium Tax (Independently Procured) Web page to provide updated information relating to this type of insurance procurement.

Rules

Proposed Rules

State and Local Sales and Use Taxes

The Comptroller proposed amendments to the following rules for public comment on Oct. 31, 2014. The comment period ends Nov. 30, 2014.

Rule 3.280 – Aircraft

Rule 3.285 – REPEAL Resale Certificate; Sales for Resale

Rule 3.285 – Resale Certificate; Sales for Resale

Rule 3.292 – Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property

Rule 3.297 – REPEAL Carriers

Rule 3.297 – Carriers, Commercial Vessels, Locomotives and Rolling Stock, and Motor Vehicles

The Comptroller will propose amendments to the following rule for public comment through the Texas Register on Nov. 14, 2014. The comment period ends Dec. 14, 2014.

Rule 3.286 – Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, and Collection and Exemption Rules

Motor Fuel Tax

The Comptroller will propose amendments to the following rule for public comment through the Texas Register on Nov. 14, 2014. The comment period ends Dec. 14, 2014.

Rule 3.430 – Records Required, Information Required

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

Adopted Rules

State and Local Sales and Use Taxes

The Comptroller filed the following rule for adoption with the Secretary of State on Oct. 21, 2014. The effective date is Nov. 10, 2014.

Rule 3.335 – Property Used in a Qualifying Data Center; Temporary State Sales Tax Exemption

Motor Fuel Tax

The Comptroller filed the following rules for adoption with the Secretary of State on Oct. 30, 2014. The effective date is Nov. 19, 2014.

Rule 3.448 – Effect of Rules; Permits and Certificates; Exclusion of Certain Sales

Rule 3.432 – Adopting, Increasing, Decreasing, or Abolishing City Tax

Effective Rules

General Rules

Rule 3.5 - Waiver of Penalty or Interestbecame effective Oct. 28, 2014

In the Works

Forms

Insurance Tax Forms and Instructions under Revision

The Comptroller is currently conducting the annual review and update of insurance tax report forms and instructions. The revision will incorporate legislative changes, and information on changes will be noted in a future issue of this newsletter.

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.

One recent event was a presentation to the V.G. Young Institute School for County Tax Assessor-Collectors in College Station, Texas, about motor vehicle taxability issues.

A member of the division also represented the Comptroller at the Federation of Tax Administrators Motor Fuel Section Annual Meeting in Jackson Hole, Wyoming.