The Comptroller's office publishes this online newsletter to keep you informed about Texas taxes. Tax Policy News provides general information and is not a substitute for legal or other professional advice.
If you are a Texas-based business selling into other states you may now be required to collect taxes for those states. Beginning Oct. 1, 2018, some states require remote sellers to collect taxes if they have more than $100,000 in gross sales or 200 individual transactions into that state. You must contact the state taxing agency or authority directly for exact tax responsibilities.
For more information about Texas businesses’ collection responsibilities for other states, see these websites:
Disclaimer: Each website listed is responsible for its own information, and the Texas Comptroller of Public Accounts is not responsible for maintaining the information provided on these websites.
As part of our Wayfair implementation, amendments to Rule 3.286, concerning Seller’s and Purchaser’s Responsibilities, became effective Jan. 1, 2019. The amendments establish a safe harbor for remote sellers whose Texas revenues are below $500,000 in sales of tangible personal property and services in the preceding 12 calendar months. Remote sellers with Texas revenue below the safe harbor amount will not have to register and collect tax. Remote sellers whose Texas revenue exceeds the safe harbor amount shall register and begin collecting tax.
To allow time for remote sellers to prepare for these changes, the amendments postpone the permitting and tax collection requirements for remote sellers until Oct. 1, 2019. The initial 12 calendar months for calculating a remote seller’s Texas revenues will be July 1, 2018, through June 30, 2019.
You can learn more about tax requirements on our new webpage, Texas Tax Responsibilities and Resources for Sellers After Wayfair.
The State Bar of Texas Tax Section is hosting its second annual Advanced Tax Workshop on Friday, March 22, at the Belo Mansion in Dallas.
This year’s workshop addresses legislative and administrative responses to Wayfair, and what tax practitioners and their clients are doing to comply. The Comptroller’s office is proud to be participating in this event.
Highly sought-after, nationally recognized speakers drawn from government, industry and private practice will lead insightful discussions ranging from policy issues to practical responses.
Panel topics include:
The Comptroller’s office has completed an overall update to the Comptroller’s Rules of Practice and Procedure, new 34 Texas Administrative Code Section 1.1-1.35, which was effective Jan. 1, 2019.
Payment option deadlines:
For more information on filing and payment requirements, visit our File and Pay webpage.
The Comptroller’s office offers several training resources that provide in-depth information on tax topics that affect your business today. These include live and on-demand training sessions, as well as tax seminars.
Visit our Tax Training Resources page to:
Listen to our current podcast episode about the sales tax return form and what to include when reporting your total sales, taxable sales and taxable purchases.
Podcast episodes soon to be released on our Tax Training Resources webpage:
Our last Webinar was held on Feb. 21 and covered what taxpayers need to know when starting a new business. The one-hour webinar highlighted the tax responsibilities of doing business in Texas and provided steps for the registration process along with how to collect and report tax. A recording of the Webinar will soon be available on our Tax Training Resources webpage.
Our current video series covers contractors, repairpersons and Texas Sales Tax:
We also offers video tutorials on filing and paying sales tax through Webfile. To view these videos visit the Video Tutorials webpage.
We offer sales and use tax seminars across the state throughout the year. New taxpayers are especially encouraged to attend these overviews of tax responsibilities for buyers, sellers and service providers. For locations, dates and times, visit the Taxpayer Seminars webpage.
Current cigarette and tobacco products non-retailer permits expire Feb. 28, 2019.
In November, the Comptroller's office mailed renewal packets with preprinted applications to all cigarette, cigar and/or tobacco products manufacturers, importers, distributors, bonded agents and wholesalers to renew their cigarette and tobacco products non-retailer permits for March 1, 2019, through Feb. 28, 2020. If you did not receive your packet, call us at 1-800-862-2260 to request one.
Non-retailers should review the preprinted information, make any corrections, sign the renewal form and return all pages of the packet (and any other documentation) with the applicable permit fee to our office by the date printed on the application form.
A $50 late filing fee will be assessed on non-retailer renewals postmarked after Feb. 28, 2019.
If you itemize deductions on your 2018 income tax return, you have the option of claiming a deduction for state and local sales taxes paid during 2018. See the IRS Sales Tax Deduction Calculator for more information on claiming the deduction.
In this month’s issue, we introduce the first of a four-part series that will help guide you through some common transactions related to motor vehicle sales tax.
This series will include the following topics:
What is gift tax?
What is a gift?
A gift is the transfer of a motor vehicle in which an eligible party receiving the vehicle pays no consideration. Consideration means any amount paid or to be paid for a motor vehicle, valued in money, or anything of monetary value including cash, the assumption of a lien or other debt, or the acceptance of a motor vehicle instead of payment for providing services or in exchange for real or tangible personal property.
Who is eligible to receive a motor vehicle as a gift?
To qualify for the $10 gift tax, the motor vehicle must be given by the following eligible parties:
Who is responsible for the tax?
The eligible person receiving the motor vehicle is responsible for the gift tax. The recipient pays the tax to the county Tax Assessor-Collector (TAC) at the time they title and/or register the motor vehicle.
What documentation, if any, is required?
In addition to the Texas Department of Motor Vehicles (TXDMV) Form 130-U, Application for Texas Title and/or Registration (PDF), you must also provide the Comptroller Form 14-317, Affidavit of Motor Vehicle Gift Transfer (PDF), that describes the relationship between the donor and the recipient. The county TAC or a staff member can accept the donor or recipient’s signature instead of formal notarization, as long as the person whose signature is being acknowledged is present, and signs the affidavit in front of the county TAC or staff member.
In cases when either the donor or recipient are unable to take the documentation to the TAC's office, a designated agent (for either the donor or recipient) must provide a signed power of attorney and present the gift affidavit on their behalf.
The person who files the Form 14-317 must present to the TAC an unexpired photo identification, such as a driver's license or personal identification card issued by Texas or another state.
Transactions often mistaken as qualifying motor vehicle gift transfer
Gift transfers do not include transfers from:
Next month’s motor vehicle tax topic will discuss salvage motor vehicles, including defining what a salvage motor vehicle is and what happens when you repair a salvage vehicle.
Initiation and membership fees to gyms, athletic clubs, health clubs and physical fitness centers are taxable.
Sales tax is not due on a membership bought with a doctor's prescription. The prescription must be dated on or before the sale date and specify the type of health treatment required. A new prescription is required for each membership renewal.
Sales tax is not due on the sale of vitamins, minerals and dietary supplements.
A product that does not meet these criteria is also considered a nontaxable dietary supplement if the product is labeled, or required to be labeled, with a Supplement Facts panel by the Food and Drug Administration.
Delinquent taxes accrue interest beginning on the 61st day after the due date until paid. Refund claims filed with the Comptroller's office accrue credit interest at either Treasury Pool rate or Prime +1, whichever is less. The interest begins to accrue 60 days after the date of the payment or the due date of the tax report, whichever is later.
For more information about how the interest rate is applied (as well as the interest rates for this year and previous years), see Interest on Credits and Refunds and on Tax Due.
The Comptroller’s office filed the following rules for adoption with the Secretary of State:
Rule 1.100 – Fines Retained by Municipalities and Counties for Certain Enforcement Expenses
Rule 1.101 – Reporting Requirements
Rule 1.102 – Failure to Submit Report
Rule 1.103 – Requirement to Maintain Records
Publication date – Feb. 15, 2019
Effective date – Feb. 18, 2019
Rule 3.12 – Hotel Projects, Project Financing Zones, and Qualified Hotel Projects
Publication date – March 8, 2019
Effective date – March 12, 2019
Help is just a click away! Use our website to take care of business.
The Taxes webpage has links to
The Practitioners’ Corner is a one-stop resource for information about filing and paying taxes, links to tax research sources and searchable databases.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.