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Wayfair – Texas’ Tax Responsibilities for Remote Sellers
The Texas Comptroller’s office has issued preliminary guidelines setting out the obligation of remote sellers to collect and report Texas sales taxes on sales made into Texas. A remote seller is a seller that does not have a physical presence in this state, but who sells products or services for delivery into this state.
Texas Local Tax vs. “Place of Business”
Keep in mind that this article will not cover every scenario, but it will describe the basics of selling tangible personal property when you have more than one ‘place of business’ or you drop ship the item.
Using a Texas Fulfillment by Amazon (FBA) Distribution Center Gives You Texas Sales Tax Nexus
If you are an out-of-state seller using a Fulfillment by Amazon (FBA) Distribution Center located in Texas and sell into Texas, then you have Sales Tax NEXUS. That is, you or your company is required to register for, collect and remit Texas Sales Tax.
Multistate Tax Commission Online Marketplace Seller Voluntary Disclosure Initiative
The Texas Comptroller’s Office is participating in the Multistate Tax Commission (MTC) Online Marketplace Seller Voluntary Disclosure Initiative, which is designed to bring into compliance out-of-state (OOS) taxpayers who sell products in Texas and other states through online marketplaces.
Hurricane Harvey – Hotel Occupancy Tax Exemptions
Hotel Tax Waiver The collection of Texas state and local hotel occupancy tax, including venue project hotel tax, is temporarily suspended for disaster relief workers and people displaced by Hurricane Harvey. The hotel tax waiver is for a period beginning Aug. 23,...
Are Political Consulting Services Provided by an Out-of-state Firm Taxable?
We were recently approached by a newspaper reporter asking us to address the franchise and sales tax ramifications of an out-of-state consulting firm sending an employee into Texas to conduct political consulting. The consultant has visited Texas on multiple occasions and bills between $50,000 and $100,000 in fees on an annual basis.
Inside the Mind of a Texas Comptroller Sales Tax Auditor
Are auditors encouraged to over-assess tax? I realize this is a provocative title. And I bet many of you are wondering HOW would I know what auditors think. After receiving my accounting degree from Texas A&M University, I went to work for the Texas Comptroller’s...
Guide to Selecting a Sales Tax Consultant
There is NO licensing or regulation of any type in Texas for Sales Tax Consulting companies. You should CAREFULLY investigate any company soliciting your business. Often owners and their consultants do not have an accounting degree. In addition, many of these less qualified consultants have a single ‘rent-a-room’ (virtual office) not located in your city. Find out what questions you should ask before hiring a tax consultant.
Wayfair Supreme Court Decision – What Now?
The South Dakota v. Wayfair, Inc. Supreme Court decision was rendered on June 21, 2018. The Court’s 5–4 majority decision overturned Quill by ruling that the physical presence rule was “unsound and incorrect” in the current age of Internet services.
Texas Administrative Code Rule 3.330 Data Processing Services – The Most Vague Sales Tax Law in Texas
The question should not be ‘What IS data processing?’ but instead, ‘What ISN’T data processing?’. On January 3, 2017 the Texas Comptroller issued Private Letter Ruling #142730026. This Private Letter Ruling (PLR) was issued to an unidentified company (i.e., lender) which underwrote (i.e., loaned money on) collateralized real estate loans. The lender wanted to know if the purchase of a specific service from one of their vendors was taxable under Tax Rule 3.330 – Data Processing.