taxes

Tax Policy News

July 2016

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...

Reminders

Franchise Tax

Second Extension Request due Aug. 15 for Mandatory Electronic Payers

The deadline for filing a second extension request for mandatory electronic payers is Aug. 15, 2016. Entities must electronically submit payment using the appropriate electronic payment method.

Webfile: Select the file extension option in Webfile and pay the difference, if any, between the amount paid with your first extension and 100 percent of the amount of tax that will be reported as due on the report filed on or before Nov. 15. You do not need to submit a paper Extension Request form if you select the file extension option in Webfile.

TexNet: Select the extension payment option, and pay the difference between the amount paid with your first extension and 100 percent of the amount of tax that will be reported as due on or before Nov. 15. You do not need to request an extension in Webfile or submit a paper Extension Request form if you select the extension payment option in TEXNET. If all of the tax due was paid with the entity's first extension, use franchise tax Webfile, or submit Form 05-164, Texas Franchise Tax Extension Request, to request a second extension.

For more information regarding extensions, see Franchise Tax Extensions of Time to File.

Texas Notice of Intent to Forfeit Right to Transact Business

On July 22, the Comptroller's office will mail the "Texas Notice of Intent to Forfeit Right to Transact Business" to taxable entities that failed to satisfy franchise tax requirements for the report that was due May 16, if an extension was not granted.

Insurance Tax

Automobile Burglary and Theft Prevention Authority Payment

The first semi-annual payment of the Automobile Burglary and Theft Prevention Authority assessment is due Aug. 1. For more information, see Form 25-107, Texas Automobile Burglary and Theft Prevention Authority Assessment Semi-Annual Payment Worksheet.

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 is due Aug. 1.

For more information, see Form 25-101, Texas Semi-Annual Insurance Premium Tax Payment Worksheet.

Volunteer Fire Department Assistance Fund Assessment Billing

The Comptroller's office mailed billings for the Volunteer Fire Department Assistance Fund Assessment at the end of May for the assessment due Aug. 1, 2016.

The Commissioner of Insurance determined the amount to be assessed is $18,562,654 for each state fiscal year 2016 and 2017.

This assessment applies to property and casualty insurers writing homeowners insurance, fire insurance, farm and ranch owners insurance, private passenger auto physical damage insurance, commercial auto physical damage insurance or commercial multi-peril insurance.

Sales Tax

Annual Sales Tax Holiday for Clothing, Shoes and School Supplies is August 5-7, 2016

You can buy certain items tax free during the annual back-to-school sales tax holiday. This year's holiday begins on Friday, Aug. 5, and goes through Sunday, Aug. 7. The exemption applies to certain school supplies, clothing, shoes, and backpacks priced under $100.

Textbooks, computers and software are not exempt during this sales tax holiday.

See Texas Sales Tax Holidays for information about other sales tax holidays.

Franchise Tax

Roundtable to Discuss Proposed Changes to Rule 3.584, Margin: Reports and Payments

The Comptroller's office is hosting a roundtable on comments on the proposed version of Rule 3.584, Margin: Reports and Payments.

Interested parties are invited to participate either in person or by telephone. Registration is required to attend, and the deadline to register is July 21. Online registration is available.

We may have to move to a different location than what is shown below, in order to accommodate as many people as possible, depending on the level of interest. We will keep you informed. We will notify participants via email by July 22. If you have already registered, there is no need to register again.

Date: Thursday, Aug. 4, 2016
Time: 3 p.m. – 5 p.m.
Location: LBJ Building, Room 205, 111 E 17th St, Austin, Texas 78701

Boat and Boat Motor Tax

Buying a Boat?

If you buy a boat this summer, remember that boats and boat motors are subject to either boat and boat motor sales and use tax or /taxes/sales/limited sales and use tax. Publication 94-170, Boat and Boat Motor Taxes explains how you determine which tax is due.

Publication Updated

Publication 94-105, Local Sales and Use Tax Collection – A Guide for Sellers

We have updated Publication 94-105, Guidelines for Collecting Local Sales and Use Tax with current information based on Rule 3.334, Local Sales and Use Taxes. It also has a new name, Local Sales and Use Tax Collection – A Guide for Sellers.

Other

San Antonio Enforcement Field Office's New Location

On July 5, the Taxpayer Services and Collections Field Office in San Antonio moved from Console Ave. to a new location on San Pedro Ave.

Address: 10010 San Pedro Avenue, Suite 410, San Antonio, Texas 78216-3862
Office Hours: Monday – Friday, 8 a.m. to 5 p.m.
Office Phone: 210-342-2300
Office Fax: 210-342-2302

Rules

Proposed

The Comptroller's office proposed the following rule for public comment through the Texas Register.

Franchise Tax

Rule 3.583 – Margin: Exemptions
Publication date – July 15, 2016.
Comment period end date – Aug. 14, 2016.

Adopted

The Comptroller's office filed the following rules for adoption with the Secretary of State:

Franchise Tax

Rule 3.582 – Margin: Passive Entities
Publication date – June 24, 2016.
Effective date – June 28, 2016.

Rule 3.588 – Margin: Cost of Goods Sold
Publication date – July 8, 2016
Effective date – July 13, 2016