Why do account payable reviews for overpaid sales tax yield strong returns back to my company? (Short answer: Every year the Texas Comptroller makes changes to tax policy that affects where and how to pay sales tax in your purchasing efforts. Similar to oil wells, you...
Sales Tax Exemptions
Manufacturer Sales Tax Overpayment Review (Should we wait until our routine review to recover overpaid sales tax?)
To be or not to be? Should we perform our review for overpaid sales tax before, during, or after my routine state tax audit? (Short answer: Dont wait, the audit will limit the scope of available credits down to a narrow sample. We are able to capture 100% of all...
ReManufacturing vs. Repair
Star Letter 9912942LStar Letter 200810222LStar Letter 9712138LStar Letter 200309186H Activities that have transaction tax exemptions are sometimes closely related to services with no tax incentives. The most common example of this is what we refer to as...
Auditor denied $800,000 in manufacturing exemptions until Texas Tax Group was hired!
ISSUE AT HAND State auditor interviewed taxpayer (TP) without proper representation by an experienced sales tax consultant. State auditor lacked Texas tax code/tax policy knowledge, almost costing a Texas taxpayer approximately $1.2 million in an incorrect sales and...
CO-MINGLED (MIXED) SERVICES
Taxable and Non-Taxable services billed as a single lump sum Is this charge 100% Taxable? NOT ALWAYS!!! Example: Lump sum single charge for taxable data processing and non-taxable services (Contract Programming or 3rd Party IT Services) Related to: 34 Tex. Admin. §...
Downhole Equipment – Sales Tax Exemptions
A fairly recent court case was Southwest Royalties, v. Hegar. Here the Texas Supreme Court addressed whether downhole oil and gas equipment, such as tubing, casing and pumps, qualified for the manufacturing exemption from the Texas sales and use tax.